1st Engrossment - 80th Legislature, 1997 2nd Special Session (1997 - 1997) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to flood relief; appropriating money; 1.3 authorizing the sale of state bonds; providing for 1.4 temporary waivers of certain programs and other 1.5 relief; canceling certain appropriations; amending 1.6 Minnesota Statutes 1996, sections 41B.04, by adding a 1.7 subdivision; 41B.043, by adding a subdivision; 1.8 103F.105; 268.073, subdivisions 1 and 3; 273.124, 1.9 subdivision 14; and 462A.202, subdivision 7, and by 1.10 adding a subdivision; Laws 1997, chapter 105, section 1.11 3; Laws 1997, chapter 202, article 1, section 35, as 1.12 amended; repealing Minnesota Statutes 1996, sections 1.13 103F.141, subdivision 2; and Laws 1997, chapter 203, 1.14 article 3, section 16. 1.15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.16 Section 1. [APPROPRIATIONS.] 1.17 The sums in the column under "APPROPRIATIONS" are 1.18 appropriated from the bond proceeds fund to be spent to acquire 1.19 and to better publicly owned land and buildings and other public 1.20 improvements of a capital nature, and from other named funds for 1.21 flood relief and mitigation projects, as specified in this act, 1.22 in the area designated under Presidential Declaration of Major 1.23 Disaster, DR-1175. The appropriations from the bond proceeds 1.24 fund are available until expended. The appropriations from the 1.25 other named funds are available until June 30, 1999, unless 1.26 otherwise specified. 1.27 SUMMARY 1.28 PUBLIC SAFETY $ 30,000,000 1.29 NATURAL RESOURCES 13,900,000 1.30 HOUSING FINANCE AGENCY 8,500,000 2.1 PUBLIC FACILITIES AUTHORITY 9,000,000 2.2 TRADE AND ECONOMIC DEVELOPMENT 8,200,000 2.3 AGRICULTURE 1,250,000 2.4 STRATEGIC AND LONG-RANGE PLANNING 100,000 2.5 REVENUE 600,000 2.6 BOND SALES EXPENSES 55,000 2.7 ADDITIONAL GENERAL FUND DEBT SERVICE TRANSFER 5,000,000 2.8 GENERAL FUND APPROPRIATION REDUCTION (20,300,000) 2.9 TOTAL $ 56,305,000 2.10 BOND PROCEEDS FUND 55,305,000 2.11 PETROLEUM TANK RELEASE CLEANUP FUND 1,000,000 2.12 APPROPRIATIONS 2.13 $ 2.14 Sec. 2. PUBLIC SAFETY 30,000,000 2.15 This appropriation is to the 2.16 commissioner of public safety for the 2.17 state and local match of public 2.18 disaster assistance funds under 2.19 Minnesota Statutes, section 12.221. 2.20 This appropriation is available to fund 2.21 100 percent of the state and local 2.22 match obligations required for publicly 2.23 owned capital improvement projects 2.24 incurred through the receipt of federal 2.25 public assistance for damages reported. 2.26 Sec. 3. NATURAL RESOURCES 13,900,000 2.27 Subdivision 1. To the commissioner 2.28 of natural resources for the purposes 2.29 specified in this section. For the 2.30 purposes of this appropriation, the 2.31 commissioner may waive the grant limit 2.32 of $75,000 in Minnesota Statutes, 2.33 section 103F.161. 2.34 Subd. 2. Flood Hazard Mitigation Grants 5,000,000 2.35 For the flood hazard mitigation grant 2.36 program to local government units for 2.37 publicly owned capital improvements to 2.38 prevent or alleviate flood damages 2.39 under Minnesota Statutes, section 2.40 103F.161, and for the nonfederal 2.41 portion of federal hazard mitigation 2.42 grant program projects. 2.43 Subd. 3. Flood Proofing Grants 2.44 to Local Governments 5,000,000 2.45 For flood proofing projects for 2.46 publicly owned buildings and facilities 2.47 under Minnesota Statutes, section 2.48 103F.161. 2.49 Subd. 4. Flood Protection 3,000,000 3.1 To fund public flood protection and 3.2 reduction measures under Minnesota 3.3 Statutes, section 103F.161, including 3.4 ring dikes, levee repair and 3.5 rehabilitation, and engineering for 3.6 permanent projects. 3.7 Subd. 5. Flood Damage Reduction Projects 900,000 3.8 This is a one-time appropriation from 3.9 the general fund to fund flood damage 3.10 reduction projects under Minnesota 3.11 Statutes, section 103F.161, including 3.12 the construction of ring dikes. 3.13 Sec. 4. HOUSING FINANCE 8,500,000 3.14 Subdivision 1. For transfer to the 3.15 housing development fund for the 3.16 programs specified in this section. 3.17 Subd. 2. Affordable Rental 3.18 Investment Fund 2,000,000 3.19 This is a one-time appropriation from 3.20 the general fund for the affordable 3.21 rental investment fund under Minnesota 3.22 Statutes, section 462A.21, subdivision 3.23 8b, to be used for rental housing. 3.24 Notwithstanding Minnesota Statutes, 3.25 section 462A.21, subdivision 8b, 3.26 assistance provided from this 3.27 appropriation for the rehabilitation of 3.28 existing rental housing may be in the 3.29 form of forgivable loans. In making 3.30 forgivable loans from this 3.31 appropriation, the agency shall 3.32 determine the circumstances, terms, and 3.33 conditions under which all or any 3.34 portion of the grant shall be repaid. 3.35 This appropriation is available until 3.36 expended. 3.37 Subd. 3. Community Rehabilitation 3.38 Fund Program 4,500,000 3.39 This is a one-time appropriation from 3.40 the general fund for the community 3.41 rehabilitation fund program under 3.42 Minnesota Statutes, section 462A.206. 3.43 Of this amount, up to $500,000 is 3.44 available for grants for damages 3.45 occurring after June 10, 1997, in an 3.46 area designated under a presidential 3.47 declaration of major disaster. This 3.48 appropriation is available until 3.49 expended. 3.50 Subd. 4. Rental Housing Loans 2,000,000 3.51 This appropriation is for the purpose 3.52 of making loans for publicly owned 3.53 permanent rental housing to local units 3.54 of government under Minnesota Statutes, 3.55 section 462A.202, subdivision 3a. 3.56 Sec. 5. PUBLIC FACILITIES AUTHORITY 9,000,000 3.57 Subdivision 1. To the public 3.58 facilities authority for the purposes 3.59 specified in this section. 4.1 Subd. 2. New Housing 5,000,000 4.2 Notwithstanding criteria or limitations 4.3 in Minnesota Statutes, sections 4.4 446A.07, 446A.072, and 446A.081, for 4.5 grants to local units of government for 4.6 publicly owned storm sewer, wastewater, 4.7 municipal utility service, and drinking 4.8 water infrastructure needs for new 4.9 housing construction. 4.10 Subd. 3. Repair and Replacement 4,000,000 4.11 Notwithstanding criteria or limitations 4.12 in Minnesota Statutes, sections 4.13 446A.07, 446A.072, and 446A.081, for 4.14 grants to local units of government to 4.15 assist with the cost of repair and 4.16 replacement of publicly owned storm 4.17 sewer, wastewater, municipal utility 4.18 service, and drinking water systems as 4.19 well as streets and bridges. 4.20 Sec. 6. TRADE AND ECONOMIC 4.21 DEVELOPMENT 8,200,000 4.22 Notwithstanding the requirement in 4.23 Minnesota Statutes, section 469.169, 4.24 subdivision 11, as added by Laws 1997, 4.25 chapter 231, article 16, section 20, to 4.26 base allocations to zones in cities on 4.27 the state's western border on a per 4.28 capita basis, $1,200,000 is a one-time 4.29 appropriation from the general fund to 4.30 the commissioner of trade and economic 4.31 development for border city enterprise 4.32 competitiveness grants under Minnesota 4.33 Statutes, sections 469.166 to 469.173. 4.34 Funds shall be allocated to communities 4.35 with significant business losses that 4.36 are at risk of losing business tax base 4.37 due to noncompetitiveness with North 4.38 Dakota and South Dakota and shall be 4.39 available to communities for locally 4.40 administered measures to retain their 4.41 job base. Allocations made under this 4.42 paragraph may be used for tax 4.43 reductions as provided in Minnesota 4.44 Statutes, section 469.171, or other 4.45 offsets of taxes imposed on or remitted 4.46 by businesses located in the enterprise 4.47 zone, but only if the municipality 4.48 determines that the granting of the tax 4.49 reduction or offset is necessary in 4.50 order to retain a business within or 4.51 attract a business to the zone. 4.52 Limitations on allocations under 4.53 Minnesota Statutes, section 469.169, 4.54 subdivision 7, do not apply to this 4.55 appropriation. Enterprise zones that 4.56 receive allocations under this 4.57 paragraph may continue in effect for 4.58 purposes of those allocations through 4.59 December 31, 1998. 4.60 $6,000,000 is a one-time appropriation 4.61 from the general fund to the Minnesota 4.62 investment fund for grants to local 4.63 units of government for locally 4.64 administered operating loan programs 4.65 for businesses directly and adversely 5.1 affected by the floods. Loan criteria 5.2 and requirements shall be locally 5.3 established with approval by the 5.4 department. For the purposes of this 5.5 appropriation, Minnesota Statutes, 5.6 sections 116J.8731, subdivisions 3, 4, 5.7 5, and 7, and 116J.991, are waived. 5.8 Businesses that receive grants or loans 5.9 from this appropriation shall set goals 5.10 for jobs retained and wages paid within 5.11 the area designated under Presidential 5.12 Declaration of Major Disaster, DR-1175. 5.13 $1,000,000 is a one-time appropriation 5.14 from the petroleum tank release cleanup 5.15 fund to the commissioner of trade and 5.16 economic development. Notwithstanding 5.17 Minnesota Statutes, section 115C.08, 5.18 subdivision 4, as amended by Laws 1997, 5.19 chapter 200, article 2, section 4, 5.20 these funds are to be used for grants 5.21 to buy out property substantially 5.22 damaged by a petroleum tank release. 5.23 Sec. 7. AGRICULTURE 1,250,000 5.24 To the rural finance authority for 5.25 department of agriculture loans under 5.26 Minnesota Statutes, chapter 41B, to 5.27 farmers for capital repairs to 5.28 agriculture buildings and farm 5.29 driveways, drainage ditches, and 5.30 grassed waterways. 5.31 Sec. 8. STRATEGIC AND LONG-RANGE 5.32 PLANNING 100,000 5.33 This is a one-time appropriation from 5.34 the general fund to develop an 5.35 application for federal empowerment 5.36 zone and enterprise credits for local 5.37 communities and not-for-profit 5.38 organizations. 5.39 Sec. 9. REVENUE 600,000 5.40 (a) This is a one-time appropriation 5.41 from the general fund to provide 5.42 assistance to local governments 5.43 experiencing a significant loss in 5.44 property tax base and tax revenues due 5.45 to the 1997 flood and having difficulty 5.46 in meeting existing debt service 5.47 obligations. The appropriation is to 5.48 be used for the purposes in paragraphs 5.49 (b) to (d). 5.50 (b) $20,000 is to reimburse local 5.51 governments for uncollected property 5.52 taxes designated for existing debt 5.53 service obligations in jurisdictions 5.54 where the flood-related market value 5.55 loss is at least three percent of the 5.56 jurisdiction's total taxable value. 5.57 (c) $230,000 is to pay the payable 1998 5.58 property taxes of properties located in 5.59 the counties of Big Stone, Chippewa, 5.60 Clay, Kittson, Lac qui Parle, Marshall, 5.61 Norman, Polk, Wilkin, and Yellow 5.62 Medicine that are purchased through 6.1 buy-out programs resulting from the 6.2 1997 floods between July 1, 1997, and 6.3 December 31, 1997. Each jurisdiction 6.4 that holds title to these properties 6.5 shall notify the county auditor, and 6.6 the county auditor shall compile 6.7 information on net property taxes due 6.8 on these properties and submit the 6.9 information in the form of an 6.10 application to the commissioner of 6.11 revenue. Based upon the information 6.12 received, the commissioner shall 6.13 determine the percentage of the tax 6.14 that will be reimbursed, if the amounts 6.15 applied for exceed the appropriation. 6.16 The commissioner shall make the full or 6.17 pro rata payments to the county, which 6.18 shall apportion the payments in the 6.19 same manner as the taxes due. The 6.20 remaining payable 1998 tax on each 6.21 property receiving reimbursement under 6.22 this paragraph, if any, is abated. 6.23 (d) $350,000 is to be apportioned by 6.24 the commissioner of revenue among the 6.25 counties of Big Stone, Chippewa, Clay, 6.26 Kittson, Lac qui Parle, Marshall, 6.27 Norman, Polk, Wilkin, and Yellow 6.28 Medicine to provide reimbursement for 6.29 abatements granted for taxes payable in 6.30 1998 to properties damaged in the 1997 6.31 floods that are not described in 6.32 paragraph (c). The apportionment shall 6.33 be based upon the amount of 6.34 flood-related market value loss in each 6.35 county. Priority shall be given to 6.36 properties that are not eligible for 6.37 disaster credit under Minnesota 6.38 Statutes, section 273.123, subdivisions 6.39 1 to 6. Counties shall be reimbursed 6.40 only for property taxes that are 6.41 actually abated, not to exceed each 6.42 county's apportioned amount. 6.43 Sec. 10. CHILDREN, FAMILIES, AND 6.44 LEARNING 6.45 The commissioner of children, families, 6.46 and learning may accelerate, by an 6.47 amount determined by the commissioner, 6.48 the state aid payment schedule under 6.49 Minnesota Statutes, section 124.195, 6.50 for special school district No. 1, 6.51 Minneapolis, to address damages 6.52 incurred during the July 1997 floods. 6.53 The amount, as calculated by the 6.54 commissioner, shall be reduced by any 6.55 funds paid to the district from claims 6.56 from property and casualty insurers. 6.57 The total amount of state aid paid to 6.58 special school district No. 1, 6.59 Minneapolis, in fiscal year 1998 shall 6.60 not exceed the amount the district 6.61 would have received without the 6.62 waiver. The school district shall also 6.63 cooperate with the city on a 6.64 presidential disaster declaration. 6.65 Sec. 11. BOND SALE EXPENSES 55,000 6.66 To the commissioner of finance for bond 7.1 sale expenses under Minnesota Statutes, 7.2 section 16A.641, subdivision 8. 7.3 Sec. 12. [BOND SALE AUTHORIZATIONS.] 7.4 To provide the money appropriated in this act from the bond 7.5 proceeds fund, the commissioner of finance, on request of the 7.6 governor, shall sell and issue bonds of the state in an amount 7.7 up to $55,305,000 in the manner, upon the terms, and with the 7.8 effect prescribed by Minnesota Statutes, sections 16A.631 to 7.9 16A.675, and by the Minnesota Constitution, article XI, sections 7.10 4 to 7. 7.11 Sec. 13. [LEGISLATIVE INTENT FOR FUTURE BONDING.] 7.12 The intent of the governor and legislature is to reduce the 7.13 economic, social, and environmental impacts of severe flooding 7.14 by providing flood damage reduction grants for cost-effective 7.15 flood control projects. To accomplish this purpose, federally 7.16 authorized flood control projects in the communities of 7.17 Marshall, Stillwater, Crookston, Warren, and East Grand Forks, 7.18 as well as flood control projects approved by the department of 7.19 natural resources in other communities, shall be given 7.20 consideration for funding in the 1998 capital improvements 7.21 budget bill. 7.22 Sec. 14. [CANCELLATION OF APPROPRIATIONS.] 7.23 $19,700,000 of the $20,000,000 appropriation to the 7.24 commissioner of public safety in Laws 1997, chapter 105, section 7.25 7, as amended by Laws 1997, chapter 203, article 3, section 16, 7.26 is canceled and returned to the general fund. 7.27 $600,000 of the $1,000,000 appropriation to the 7.28 commissioner of finance in Laws 1997, chapter 105, section 6, is 7.29 canceled and returned to the general fund. 7.30 Sec. 15. Minnesota Statutes 1996, section 41B.04, is 7.31 amended by adding a subdivision to read: 7.32 Subd. 3a. [DEBT-TO-ASSET RATIO.] Notwithstanding Minnesota 7.33 Rules, part 1653.0031, and other law to the contrary, a person 7.34 who farms land located in a county that has been the subject of 7.35 a state or federal disaster declaration may participate in a 7.36 loan restructuring program under this section even if the person 8.1 has a debt-to-asset ratio under 50 percent. The person must 8.2 apply to participate in the program within 18 months of the 8.3 disaster declaration. 8.4 Sec. 16. Minnesota Statutes 1996, section 41B.043, is 8.5 amended by adding a subdivision to read: 8.6 Subd. 2a. [SNOW OR FLOOD DAMAGE.] A prospective borrower 8.7 applying for a loan participation through an eligible lender may 8.8 refinance an existing debt in order to repair or replace farm 8.9 driveways, drainage ditches and tile lines, grassed waterways, 8.10 or agricultural buildings damaged due to snow or flooding. 8.11 Sec. 17. Minnesota Statutes 1996, section 103F.105, is 8.12 amended to read: 8.13 103F.105 [FLOODPLAIN MANAGEMENT POLICY.] 8.14 (a) The legislature finds: 8.15 (1) a large portion of the state's land resources is 8.16 subject to recurrent flooding by overflow of streams and other 8.17 watercourses causing loss of life and property, disruption of 8.18 commerce and governmental services, unsanitary conditions, and 8.19 interruption of transportation and communications, all of which 8.20 are detrimental to the health, safety, welfare, and property of 8.21 the occupants of flooded lands and the people of this state; and 8.22 (2) the public interest necessitates sound land use 8.23 development as land is a limited and irreplaceable resource, and 8.24 the floodplains of this state are a land resource to be 8.25 developed in a manner which will result in minimum loss of life 8.26 and threat to health, and reduction of private and public 8.27 economic loss caused by flooding. 8.28 (b) It is the policy of this state to reduce flood damages 8.29 through floodplain management, stressing nonstructural measures 8.30 such as floodplain zoning and floodproofing,
andflood warning 8.31 practices, and other indemnification programs that reduce public 8.32 liability and expense for flood damages. 8.33 (c) It is the policy of this state: 8.34 (1) not to prohibit but to guide development of the 8.35 floodplains consistent with legislative findings; 8.36 (2) to provide state coordination and assistance to local 9.1 governmental units in floodplain management; 9.2 (3) to encourage local governmental units to adopt, enforce 9.3 and administer sound floodplain management ordinances; and9.4 (4) to provide the commissioner of natural resources with 9.5 authority necessary to carry out a floodplain management program 9.6 for the state and to coordinate federal, state, and local 9.7 floodplain management activities in this state; and 9.8 (5) to provide incentives for communities to participate in 9.9 the national flood insurance program and for citizens of 9.10 Minnesota to take actions such as purchasing and maintaining 9.11 flood insurance to reduce future flood damage to private 9.12 property. 9.13 Sec. 18. Minnesota Statutes 1996, section 268.073, 9.14 subdivision 1, is amended to read: 9.15 Subdivision 1. [ADDITIONAL BENEFITS; WHEN AVAILABLE.] 9.16 Additional reemployment insurance benefits are authorized under 9.17 this section only if the commissioner determines that: 9.18 (1) an employer has reduced operations at a facility 9.19 employing 100 or more individuals for at least six months during 9.20 the preceding year resulting in the reduction of at least 50 9.21 percent of the employer's work force and the layoff of at least 9.22 50 employees at that facility, including reductions caused as a 9.23 result of a major natural disaster declared by the President; 9.24 (2) the employer has no expressed plan to resume operations 9.25 which would lead to the reemployment of those employees at any 9.26 time in the immediate future; and 9.27 (3) the unemployment rate for the county in which the 9.28 facility is located was ten percent during the month of the 9.29 reduction or any of the three months preceding or succeeding the 9.30 reduction. 9.31 Sec. 19. Minnesota Statutes 1996, section 268.073, 9.32 subdivision 3, is amended to read: 9.33 Subd. 3. [ELIGIBILITY CONDITIONS.] A claimant is eligible 9.34 to receive additional benefits under this section for any week 9.35 during the claimant's benefit year if the commissioner finds 9.36 that: 10.1 (1) the claimant's unemployment is the result of a 10.2 reduction in operations as provided under subdivision 1; 10.3 (2) the claimant is unemployed and meets the eligibility 10.4 requirements for the receipt of unemployment benefits under 10.5 section 268.08; 10.6 (3) the claimant is not subject to a disqualification for 10.7 benefits under section 268.09; for the purpose of this 10.8 subdivision, the disqualifying conditions set forth in section 10.9 268.09, and the requalifying requirements thereunder, apply to 10.10 the receipt of additional benefits under this section; 10.11 (4) the claimant has exhausted all rights to regular 10.12 benefits payable under section 268.07, is not entitled to 10.13 receive extended benefits under section 268.071, and is not 10.14 entitled to receive reemployment insurance benefits under any 10.15 other state or federal law for the week in which the claimant is 10.16 claiming additional benefits; 10.17 (5) the claimant has made a claim for additional benefits 10.18 with respect to any week the claimant is claiming benefits in 10.19 accordance with the regulations as the commissioner may 10.20 prescribe with respect to claims for regular benefits; and 10.21 (6) the claimant has worked at least 26 weeks during the10.22 claimant's base period in employmenta majority of the 10.23 claimant's wage credits were earned with an employer for whom 10.24 the commissioner has determined there was a reduction in 10.25 operations under subdivision 1. 10.26 Sec. 20. Minnesota Statutes 1996, section 273.124, 10.27 subdivision 14, is amended to read: 10.28 Subd. 14. [AGRICULTURAL HOMESTEADS; SPECIAL PROVISIONS.] 10.29 (a) Real estate of less than ten acres that is the homestead of 10.30 its owner must be classified as class 2a under section 273.13, 10.31 subdivision 23, paragraph (a), if: 10.32 (1) the parcel on which the house is located is contiguous 10.33 on at least two sides to (i) agricultural land, (ii) land owned 10.34 or administered by the United States Fish and Wildlife Service, 10.35 or (iii) land administered by the department of natural 10.36 resources on which in lieu taxes are paid under sections 477A.11 11.1 to 477A.14; 11.2 (2) its owner also owns a noncontiguous parcel of 11.3 agricultural land that is at least 20 acres; 11.4 (3) the noncontiguous land is located not farther than two 11.5 townships or cities, or a combination of townships or cities 11.6 from the homestead; and 11.7 (4) the agricultural use value of the noncontiguous land 11.8 and farm buildings is equal to at least 50 percent of the market 11.9 value of the house, garage, and one acre of land. 11.10 Homesteads initially classified as class 2a under the 11.11 provisions of this subdivisionparagraph shall remain classified 11.12 as class 2a, irrespective of subsequent changes in the use of 11.13 adjoining properties, as long as the homestead remains under the 11.14 same ownership, the owner owns a noncontiguous parcel of 11.15 agricultural land that is at least 20 acres, and the 11.16 agricultural use value qualifies under clause (4). 11.17 (b) Except as provided in paragraph (d), noncontiguous land 11.18 shall be included as part of a homestead under section 273.13, 11.19 subdivision 23, paragraph (a), only if the homestead is 11.20 classified as class 2a and the detached land is located in the 11.21 same township or city, or not farther than two townships or 11.22 cities or combination thereof from the homestead. 11.23 (c) Agricultural land used for purposes of a homestead and 11.24 actively farmed by a person holding a vested remainder interest 11.25 in it must be classified as a homestead under section 273.13, 11.26 subdivision 23, paragraph (a). If agricultural land is 11.27 classified class 2a, any other dwellings on the land used for 11.28 purposes of a homestead by persons holding vested remainder 11.29 interests who are actively engaged in farming the property, and 11.30 up to one acre of the land surrounding each homestead and 11.31 reasonably necessary for the use of the dwelling as a home, must 11.32 also be assessed class 2a. 11.33 (d) Agricultural land and buildings that were class 2a 11.34 homestead property under section 273.13, subdivision 23, 11.35 paragraph (a), for the 1997 assessment shall remain classified 11.36 as agricultural homesteads for subsequent assessments if: 12.1 (1) the property owner abandoned the homestead dwelling 12.2 located on the agricultural homestead as a result of the April 12.3 1997 floods; 12.4 (2) the property is located in the county of Polk, Clay, 12.5 Kittson, Marshall, Norman, or Wilkin; 12.6 (3) the agricultural land and buildings remain under the 12.7 same ownership for the current assessment year as existed for 12.8 the 1997 assessment year; 12.9 (4) the dwelling occupied by the owner is located in 12.10 Minnesota and is within 30 miles of one of the parcels of 12.11 agricultural land that is owned by the taxpayer; and 12.12 (5) the owner notifies the county assessor that the 12.13 relocation was due to the 1997 floods, and the owner furnishes 12.14 the assessor any information deemed necessary by the assessor in 12.15 verifying the change in homestead dwelling. For taxes payable 12.16 in 1998, the owner must notify the assessor by December 1, 1997. 12.17 Sec. 21. Minnesota Statutes 1996, section 462A.202, is 12.18 amended by adding a subdivision to read: 12.19 Subd. 3a. [PERMANENT RENTAL HOUSING.] The agency may make 12.20 loans, with or without interest, to cities and counties to 12.21 finance the construction, acquisition, or rehabilitation of 12.22 affordable, permanent, publicly owned rental housing located in 12.23 the area designated under Presidential Declaration of Major 12.24 Disaster, DR-1175. Loans made under this subdivision are 12.25 subject to the restrictions of subdivision 7. 12.26 Sec. 22. Minnesota Statutes 1996, section 462A.202, 12.27 subdivision 7, is amended to read: 12.28 Subd. 7. [RESTRICTIONS.] (a) Except as provided in 12.29 paragraphs (b), (c), (d), (e), and (f), the city must own the 12.30 property financed with a loan under this section and use the 12.31 property for the purposes specified in this section: 12.32 (1) the city may sell the property at its fair market value 12.33 provided it repays the lesser of the net proceeds of the sale or 12.34 the amount of the loan balance to the agency for deposit in the 12.35 local government unit housing account; or 12.36 (2) the city may use the property for a different purpose 13.1 provided that the city repays the amount of the original loan. 13.2 If the city owns and uses the property for the purposes 13.3 specified in this section for a 20-year period, the agency shall 13.4 forgive the loan. 13.5 (b) In cases where the property consists of land only, 13.6 including land on which buildings acquired with a loan under 13.7 this section are demolished by the city, the city may lease the 13.8 property for a term not to exceed 99 years to a nonprofit 13.9 organization to use for the purposes specified in this section. 13.10 (c) In cases where the property consists of land and 13.11 buildings, the city may do the following: 13.12 (1) demolish the buildings in whole or in part and use or 13.13 lease the property under paragraph (b); 13.14 (2) sell the buildings to a nonprofit organization to use 13.15 for the purposes specified in this section. If sold, the city 13.16 must sell the buildings for fair market value and repay the 13.17 proceeds of the sale to the agency for deposit in the local 13.18 government unit housing account; 13.19 (3) lease the buildings to a nonprofit organization to use 13.20 for the purposes specified in this section. If leased, except 13.21 as provided in paragraph (d), the annual rental must equal the 13.22 amount of the loan attributable to the cost of the buildings, 13.23 divided by the number of years of useful life of the buildings 13.24 as determined in accordance with generally accepted accounting 13.25 principles. For purposes of determining the required rental, 13.26 the purchase price of land and buildings must be allocated 13.27 between them based on standard valuation procedures; or 13.28 (4) contract with a nonprofit organization to manage the 13.29 property. 13.30 (d) A city may lease a building to a nonprofit organization 13.31 for a nominal amount under the following conditions: 13.32 (1) the lease does not exceed ten years; 13.33 (2) the city must have the option to cancel the lease with 13.34 or without cause at the end of any three-year period; and 13.35 (3) the city must determine annually that the property is 13.36 being used for the purposes specified in this section and that 14.1 the terms of the lease, including any income limits for 14.2 residents, are being met. 14.3 (e) A city may sell single-family residential housing 14.4 directly to persons and families of low and moderate income. 14.5 (f) A city may lease the buildings to a partnership 14.6 consisting of a nonprofit organization and a limited partner if 14.7 the nonprofit organization is the general partner and the 14.8 financing for the land trust project includes low-income housing 14.9 tax credits. All conditions for leasing buildings to a 14.10 nonprofit organization as provided under this subdivision apply 14.11 to the lease authorized under this paragraph. 14.12 (g) The statutory lien created under section 16A.695 may be 14.13 subordinate to liens created by other sources of financing, at 14.14 the discretion of the agency. 14.15 Sec. 23. Laws 1997, chapter 105, section 3, is amended to 14.16 read: 14.17 Sec. 3. [TEMPORARY WAIVER OF FEES, ASSESSMENTS, OR TAXES.] 14.18 Subdivision 1. [FEES.] Notwithstanding any law to the 14.19 contrary, for fiscal years 1997 and 1998, an agency, with the 14.20 approval of the governor, may waive fees that would otherwise be 14.21 charged for agency services. The waiver of fees must be 14.22 confined to geographic areas affected by flooding within 14.23 counties included in a federal disaster declaration and to the 14.24 minimum periods of times necessary to deal with the emergency 14.25 situation. The agency must promptly report the reasons for and 14.26 the impact of any suspended fees to the chairs of the 14.27 legislative committees that oversee the policy and budgetary 14.28 affairs of the agency. This sectionsubdivision expires 14.29 February 1, 1998. 14.30 Subd. 2. [SOLID WASTE GENERATOR ASSESSMENTS AND SOLID 14.31 WASTE MANAGEMENT TAXES.] Notwithstanding any law to the 14.32 contrary, the waiver authority provided in subdivision 1 is also 14.33 extended to the commissioner of revenue in relation to the solid 14.34 waste generator assessment under Minnesota Statutes, section 14.35 116.07, subdivision 10, and the solid waste management taxes 14.36 under Laws 1997, chapter 231, article 13, for construction 15.1 debris generated from repair and demolition activities in the 15.2 area designated under Presidential Declaration of Major 15.3 Disaster, DR-1175, and disposed of in a waste management 15.4 facility designated by the commissioner of the pollution control 15.5 agency. The commissioner of revenue's authority under this 15.6 subdivision to waive the assessment and tax expires for waste 15.7 transported to the designated facilities after December 31, 15.8 1997, including waste transported to a landfill that is limited 15.9 by permit exclusively to the disposal of flood debris. The 15.10 waiver authority granted to the commissioner of revenue is 15.11 retroactive to April 1, 1997. 15.12 Sec. 24. Laws 1997, chapter 202, article 1, section 35, as 15.13 amended by Laws 1997, chapter 246, section 34, is amended to 15.14 read: 15.15 Sec. 35. BOND SALE SCHEDULE 15.16 The commissioner of finance shall 15.17 schedule the sale of state general 15.18 obligation bonds so that, during the 15.19 biennium ending June 30, 1999, no more 15.20 than $560,457,000$565,457,000 will 15.21 need to be transferred from the general 15.22 fund to the state bond fund to pay 15.23 principal and interest due and to 15.24 become due on outstanding state general 15.25 obligation bonds. During the biennium, 15.26 before each sale of state general 15.27 obligation bonds, the commissioner of 15.28 finance shall calculate the amount of 15.29 debt service payments needed on bonds 15.30 previously issued and shall estimate 15.31 the amount of debt service payments 15.32 that will be needed on the bonds 15.33 scheduled to be sold, the commissioner 15.34 shall adjust the amount of bonds 15.35 scheduled to be sold so as to remain 15.36 within the limit set by this section. 15.37 The amount needed to make the debt 15.38 service payments is appropriated from 15.39 the general fund as provided in 15.40 Minnesota Statutes, section 16A.641. 15.41 Sec. 25. [COMMISSIONER OF HOUSING FINANCE; USE OF 15.42 APPROPRIATION.] 15.43 The appropriation in Laws 1997, chapter 200, article 1, 15.44 section 6, of $8,118,000 the first year and $6,493,000 the 15.45 second year for the affordable rental investment fund may be 15.46 used for forgivable loans for the rehabilitation of existing 15.47 rental housing located in the area designated under Presidential 15.48 Declaration of Major Disaster, DR-1175, notwithstanding 16.1 Minnesota Statutes, section 462A.21, subdivision 8b. In making 16.2 forgivable loans from this appropriation, the agency shall 16.3 determine the circumstances, terms, and conditions under which 16.4 all or any portion of the grant shall be repaid. 16.5 Sec. 26. [ICF/MR OPERATING COSTS.] 16.6 Notwithstanding any law to the contrary, for a provider 16.7 group that includes seven ICFs/MR with a total of 54 licensed 16.8 beds and was affected significantly by the severe conditions of 16.9 the winter and spring of 1996-1997, the operating cost payment 16.10 rate for each of its six facilities located in Polk and Norman 16.11 counties for the rate year beginning October 1, 1997, shall be 16.12 the operating cost payment rate in effect for each facility on 16.13 September 30, 1997. 16.14 Sec. 27. [TRANSFER.] 16.15 Of the savings generated through the implementation of Laws 16.16 1997, chapter 203, article 12, section 18, $43,700 is 16.17 transferred to the medical assistance account for the purposes 16.18 of section 26. 16.19 Sec. 28. [CASH FLOW ASSISTANCE.] 16.20 Local jurisdictions in the counties of Big Stone, Chippewa, 16.21 Clay, Kittson, Lac qui Parle, Marshall, Norman, Polk, Wilkin, 16.22 and Yellow Medicine may apply to the commissioner of revenue for 16.23 accelerated payment of 1998 local government aid under Minnesota 16.24 Statutes, section 477A.013, or homestead and agricultural credit 16.25 aid under Minnesota Statutes, section 273.1398, subdivision 2, 16.26 if necessary for meeting the jurisdiction's cash flow needs. If 16.27 the request is granted by the commissioner, the payment 16.28 regularly scheduled to be made on December 26, 1998, shall be 16.29 made on March 15, 1998. 16.30 Sec. 29. [CITY OF CROOKSTON; FLOOD CONTROL DISTRICT.] 16.31 Subdivision 1. [AUTHORIZATION.] The city of Crookston may, 16.32 by ordinance approved by at least a four-fifths vote of all 16.33 members of the council, establish a flood control district 16.34 including part or all of the incorporated area of the city. If 16.35 the mayor has no vote or votes only in the case of a tie, the 16.36 mayor is not deemed to be a city council member for purposes of 17.1 determining a four-fifths majority vote. Subject to the 17.2 approval of the commissioner of natural resources, the city may 17.3 undertake flood control improvements, including the acquisition 17.4 of properties within or adjacent to the flood plain, the 17.5 demolition or removal of structures or improvements within or 17.6 adjacent to the flood plain or where necessary to permit the 17.7 construction or extension of flood control works, and the 17.8 construction, reconstruction, extension, or maintenance of 17.9 levees, dikes, and other flood control works. The commissioner 17.10 of natural resources shall approve or reject the proposed 17.11 improvements within 30 days of submission of the proposed 17.12 improvements. If the proposed improvements are rejected, the 17.13 commissioner must give the reasons for the rejection to the city 17.14 in writing. Failure of the commissioner to approve or reject 17.15 the proposed improvements within 30 days of their submission 17.16 shall be deemed to be an approval of the proposed improvements. 17.17 The costs of the flood control improvements may be paid for by 17.18 the city from the flood control fees or levies authorized in 17.19 subdivision 2, from special assessments or improvement bonds 17.20 issued under Minnesota Statutes, chapter 429, from federal or 17.21 state grants, from money appropriated by the city from other 17.22 sources, or from any combination of those sources. 17.23 Subd. 2. [SPECIAL SERVICE DISTRICT.] The flood control 17.24 district authorized in subdivision 1 shall be a special service 17.25 district as provided in Minnesota Statutes, sections 428A.01 to 17.26 428A.101, except as otherwise provided in subdivision 1, and 17.27 with the following exceptions: 17.28 (1) the flood control district is exempt from the 17.29 provisions of Minnesota Statutes, section 428A.08; 17.30 (2) the special service charge provided under Minnesota 17.31 Statutes, sections 428A.02, subdivision 1, and 428A.05, shall be 17.32 imposed on all property located within the flood control 17.33 district and not limited to commercial, industrial, and public 17.34 utility property; and 17.35 (3) the charges under this section are limited to a maximum 17.36 of 20 years. 18.1 Subd. 3. [LOCAL APPROVAL.] This section is effective the 18.2 day after compliance by the city of Crookston with Minnesota 18.3 Statutes, section 645.021, subdivision 3. 18.4 Sec. 30. [FLOOD DAMAGED SCHOOL RECONSTRUCTION.] 18.5 In order to expedite school reconstruction of school 18.6 buildings destroyed by the floodwaters of 1997 that are located 18.7 within the boundaries of independent school district Nos. 595 18.8 and 2854, the school districts may enter into construction 18.9 contracts, including but not limited to design-build, that the 18.10 districts determine to be in their best interests. Construction 18.11 of these educational facilities is emergency construction and 18.12 not subject to competitive bid requirements of Minnesota 18.13 Statutes, sections 123.37 and 471.345, or other law or charter 18.14 or the requirements of Minnesota Statutes, section 16B.335. The 18.15 department of children, families, and learning shall notify the 18.16 chairs of the senate finance committees, the house ways and 18.17 means committee, and the house capital investment committee that 18.18 the projects have been approved under review and comment and 18.19 necessary contracts have been executed. 18.20 Sec. 31. [SCHOOL FACILITY STORM DAMAGE RELATED 18.21 BETTERMENT.] 18.22 A district may make an additional levy for facility 18.23 betterment under this section. To make this levy, a district 18.24 must: 18.25 (1) qualify under Minnesota Statutes, section 124.239, in 18.26 fiscal year 1998; and 18.27 (2) have had damage to an instructional facility in excess 18.28 of $1,000,000 related to storms during the summer of 1997. 18.29 The levy must be directly related to the costs of the 18.30 betterment of the damaged facility and may only be for costs not 18.31 otherwise paid for by insurance or other proceeds. The total 18.32 costs related to the levy may not exceed two percent of a 18.33 district's 1995 adjusted net tax capacity. The project must be 18.34 approved under Minnesota Statutes, section 121.15, and be a part 18.35 of the plan under Minnesota Statutes, section 124.239. The 18.36 district may either bond for the costs under Minnesota Statutes, 19.1 section 124.239, subdivision 3, or levy under Minnesota 19.2 Statutes, section 124.239, subdivision 5. The levy may be 19.3 spread over more than one year. The levy is not eligible for 19.4 state-aid payments under Minnesota Statutes, section 124.239, 19.5 subdivision 3a or 5a, 124.83, or 124.95, or any other aid 19.6 program. A district must consult with and receive approval from 19.7 the city in which its administrative offices are located prior 19.8 to making this levy. 19.9 Sec. 32. [REPEALER.] 19.10 Minnesota Statutes 1996, section 103F.141, subdivision 2; 19.11 and Laws 1997, chapter 203, article 3, section 16, are repealed. 19.12 Sec. 33. [EFFECTIVE DATE.] 19.13 Sections 1 to 19, 21, 22, and 24 to 32 are effective on the 19.14 day following final enactment. Section 20 is effective for 19.15 taxes levied in 1997, payable in 1998, and thereafter. Section 19.16 23 is effective retroactive to April 1, 1997.