1st Engrossment - 82nd Legislature, 2002 1st Special Session (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to flood relief in designated counties; 1.3 providing for temporary waivers of certain program 1.4 requirements and other relief; modifying certain 1.5 property tax and aid provisions in designated 1.6 counties; authorizing the sale of state bonds; 1.7 appropriating money; amending Minnesota Statutes 2002, 1.8 sections 256I.05, subdivision 1; 273.11, by adding a 1.9 subdivision; 469.177, by adding a subdivision; 1.10 477A.015; Laws 2001, First Special Session chapter 12, 1.11 section 10, as amended; Laws 2002, chapter 393, 1.12 section 7, subdivision 20; proposing coding for new 1.13 law in Minnesota Statutes, chapter 273. 1.14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.15 Section 1. [APPROPRIATIONS.] 1.16 The sums in the column under "APPROPRIATIONS" are 1.17 appropriated from the bond proceeds fund to be spent to acquire 1.18 and to better publicly owned land and buildings and other public 1.19 improvements of a capital nature, and from other named funds, 1.20 for flood relief as specified in this act, in the area 1.21 designated under Presidential Declaration of Major Disaster, 1.22 DR-1419, whether included in the original declaration or added 1.23 later by federal government action, referred to in this act as 1.24 "the area included in DR-1419." The appropriations are for 1.25 fiscal year 2003, unless otherwise specified. The 1.26 appropriations from the bond proceeds fund and other named funds 1.27 are available until expended, unless otherwise specified. If 1.28 there is a shortage of money for a program or project funded in 1.29 this act, or in the funds available for state and local match 2.1 under Minnesota Statutes, section 12.221, unused general fund 2.2 money appropriated for any other program or project in this act 2.3 may be transferred by an interagency agreement approved by the 2.4 commissioner of finance to cover the shortfall. 2.5 SUMMARY 2.6 PUBLIC SAFETY $ 8,300,000 2.7 HOUSING FINANCE AGENCY 4,000,000 2.8 TRADE AND ECONOMIC DEVELOPMENT 6,000,000 2.9 AGRICULTURE 3,000,000 2.10 CHILDREN, FAMILIES, AND LEARNING 40,000 2.11 TRANSPORTATION 17,115,000 2.12 REVENUE 1,000,000 2.13 FINANCE 15,000 2.14 CANCELLATION (10,100,000) 2.15 TOTAL APPROPRIATIONS $ 29,370,000 2.16 Summary by Fund 2.17 Bond Proceeds Fund 11,315,000 2.18 General Fund (60,000) 2.19 Petroleum Tank Release 2.20 Cleanup Fund 1,000,000 2.21 Trunk Highway Fund 2,000,000 2.22 State Transportation Fund 2.23 Bond Proceeds Account 5,000,000 2.24 Trunk Highway Bond Proceeds 10,115,000 2.25 Sec. 2. PUBLIC SAFETY 8,300,000 2.26 To the commissioner of public safety 2.27 for the state and local match of 2.28 federal disaster assistance funds under 2.29 Minnesota Statutes, section 12.221. 2.30 This appropriation is available to fund 2.31 100 percent of the state and local 2.32 match obligations for publicly owned 2.33 capital improvement projects incurred 2.34 through the receipt of federal disaster 2.35 assistance. 2.36 Sec. 3. HOUSING FINANCE 4,000,000 2.37 Subdivision 1. For transfer to the 2.38 housing development fund for the 2.39 programs specified in this section. 2.40 Subd. 2. Economic Development 2.41 and Housing Challenge 3,000,000 2.42 For the economic development and 2.43 housing challenge program under 2.44 Minnesota Statutes, section 462A.33, 3.1 for housing assistance in the area 3.2 included in DR-1419. For assistance 3.3 under this subdivision, the 3.4 requirements of Minnesota Statutes, 3.5 section 462A.33, subdivisions 3 and 5, 3.6 and Minnesota Rules, part 4900.3632, 3.7 are waived. 3.8 This is a onetime appropriation from 3.9 the general fund. 3.10 Subd. 3. Rental Housing Loans 1,000,000 3.11 For loans for publicly owned permanent 3.12 rental housing to local units of 3.13 government under Minnesota Statutes, 3.14 section 462A.202, subdivision 3a. 3.15 Sec. 4. TRADE AND ECONOMIC DEVELOPMENT 3.16 Subdivision 1. To the commissioner of 3.17 trade and economic development for 3.18 purposes of this section 6,000,000 3.19 Subd. 2. Minnesota Investment Fund 3,000,000 3.20 To the Minnesota investment fund for 3.21 grants to local units of government for 3.22 locally administered grants or loan 3.23 programs for businesses directly and 3.24 adversely affected by the flood. 3.25 Criteria and requirements must be 3.26 locally established with approval by 3.27 the department. For the purposes of 3.28 this appropriation, Minnesota Statutes, 3.29 sections 116J.8731, subdivisions 3, 4, 3.30 5, and 7, 116J.993, 116J.994, and 3.31 116J.995, are waived. Businesses that 3.32 receive grants or loans from this 3.33 appropriation must set goals for jobs 3.34 retained and wages paid within the area 3.35 included in DR-1419. 3.36 This is a onetime appropriation from 3.37 the general fund. 3.38 Subd. 3. Petroleum Cleanup 1,000,000 3.39 Notwithstanding Minnesota Statutes, 3.40 section 115C.08, subdivision 4, up to 3.41 $1,000,000 is for grants to safely 3.42 rehabilitate buildings if a portion of 3.43 the rehabilitation costs is 3.44 attributable to petroleum contamination 3.45 or to buy out property substantially 3.46 damaged by a petroleum tank release. 3.47 This is a onetime appropriation from 3.48 the petroleum tank release cleanup fund. 3.49 Subd. 4. Public Infrastructure 2,000,000 3.50 To the public facilities authority for 3.51 grants to local units of government to 3.52 assist with the cost of rehabilitation 3.53 and replacement of publicly owned 3.54 infrastructure, including storm sewers, 3.55 wastewater and municipal utility 3.56 service, and drinking water systems. 3.57 For the purposes of this appropriation, 3.58 criteria, limitations, and repayment 4.1 requirements in Minnesota Statutes, 4.2 sections 446A.07, 446A.072, and 4.3 446A.081, are waived. 4.4 Sec. 5. AGRICULTURE 3,000,000 4.5 To the commissioner of agriculture to 4.6 make disaster payments to farmers under 4.7 section 20. The commissioner may use 4.8 up to $50,000 to administer the program. 4.9 This is a onetime appropriation from 4.10 the general fund. 4.11 Sec. 6. CHILDREN, FAMILIES, AND LEARNING 40,000 4.12 Subdivision 1. To the commissioner of 4.13 children, families, and learning for 4.14 the purposes of this section. This is 4.15 a onetime appropriation from the 4.16 general fund. 4.17 Subd. 2. [FISCAL YEAR 2003.] For 4.18 fiscal year 2003 only, independent 4.19 school district No. 682, Roseau, is 4.20 eligible for flood enrollment impact 4.21 aid equal to the lesser of (a) the 4.22 product of the general education 4.23 formula allowance for fiscal year 2003 4.24 times the reduction, if any, in the 4.25 district's adjusted marginal cost pupil 4.26 units between the 2001-2002 school year 4.27 and the 2002-2003 school year or (b) 4.28 $40,000. 4.29 Subd. 3. [FISCAL YEAR 2004.] For 4.30 fiscal year 2004 only, independent 4.31 school district No. 682, Roseau, is 4.32 eligible for flood enrollment impact 4.33 aid equal to the lesser of (a) the 4.34 product of the general education 4.35 formula allowance for fiscal year 2004 4.36 times 75 percent of the reduction, if 4.37 any, in the district's adjusted 4.38 marginal cost pupil units between the 4.39 2001-2002 school year and the 2003-2004 4.40 school year or (b) $30,000. 4.41 Subd. 4. [FISCAL YEAR 2005.] For 4.42 fiscal year 2005 only, independent 4.43 school district No. 682, Roseau, is 4.44 eligible for flood enrollment impact 4.45 aid equal to the lesser of (a) the 4.46 product of the general education 4.47 formula allowance for fiscal year 2005 4.48 times 50 percent of the reduction, if 4.49 any, in the district's adjusted 4.50 marginal cost pupil units between the 4.51 2001-2002 school year and the 2004-2005 4.52 school year or (b) $20,000. 4.53 Subd. 5. [FISCAL YEAR 2006.] For 4.54 fiscal year 2006 only, independent 4.55 school district No. 682, Roseau, is 4.56 eligible for flood enrollment impact 4.57 aid equal to the lesser of (a) the 4.58 product of the general education 4.59 formula allowance for fiscal year 2006 4.60 times 25 percent of the reduction, if 4.61 any, in the district's adjusted 4.62 marginal cost pupil units between the 5.1 2001-2002 school year and the 2005-2006 5.2 school year or (b) $10,000. 5.3 Sec. 7. TRANSPORTATION 17,115,000 5.4 Subdivision 1. To the commissioner of 5.5 transportation for the purposes of this 5.6 section. 5.7 Subd. 2. State Trunk Highways and Bridges 2,000,000 5.8 For the reconstruction and repair of 5.9 trunk highways and trunk highway 5.10 bridges that are located in the area 5.11 included in DR-1419 and that suffered 5.12 flood-related damage in 2002. 5.13 This is a onetime appropriation from 5.14 the trunk highway fund. 5.15 Subd. 3. Local Road and Bridge 5.16 Rehabilitation and Replacement 5,000,000 5.17 For grants to local governments for 5.18 capital costs related to rehabilitation 5.19 and replacement of local roads and 5.20 bridges damaged or destroyed by 5.21 flooding in the area included in 5.22 DR-1419. A grantee must submit to the 5.23 commissioner of transportation final 5.24 plans for each project before grant 5.25 funds may be released for the project. 5.26 The commissioner shall determine 5.27 project priorities, review project 5.28 plans in light of those priorities, 5.29 and, if necessary, require changes to 5.30 the plans to ensure the most prudent 5.31 use of limited state resources. If a 5.32 local government receives federal funds 5.33 for a project funded under this 5.34 section, the local government must 5.35 repay to the state, for deposit in the 5.36 bond proceeds account in the state 5.37 transportation fund, an amount equal to 5.38 the federal funding, up to the amount 5.39 of the state grant. 5.40 This appropriation is from the bond 5.41 proceeds account in the state 5.42 transportation fund, as provided in 5.43 Minnesota Statutes, section 174.50. 5.44 For grants under this subdivision, the 5.45 requirements of Minnesota Statutes, 5.46 section 174.50, subdivisions 4, 5, 6, 5.47 6a, and 7, are waived. 5.48 Subd. 4. Trunk Highways 10,115,000 5.49 This appropriation is from the bond 5.50 proceeds account in the trunk highway 5.51 fund. This appropriation is for the 5.52 same purposes as specified in Laws 5.53 2000, chapter 479, article 1, section 5.54 2, subdivision 3. Of this amount, 5.55 $15,000 is for bond sale expenses. 5.56 Sec. 8. BOND SALE EXPENSES 15,000 5.57 To the commissioner of finance for bond 5.58 sale expenses under Minnesota Statutes, 6.1 section 16A.641, subdivision 8. 6.2 This appropriation is from the bond 6.3 proceeds fund. 6.4 Sec. 9. [BOND SALE AUTHORIZATION.] 6.5 Subdivision 1. [BOND PROCEEDS FUND.] To provide the money 6.6 appropriated in this act from the bond proceeds fund, the 6.7 commissioner of finance shall sell and issue bonds of the state 6.8 in an amount up to $11,315,000 in the manner, upon the terms, 6.9 and with the effect prescribed by Minnesota Statutes, sections 6.10 16A.631 to 16A.675, and by the Minnesota Constitution, article 6.11 XI, sections 4 to 7. 6.12 Subd. 2. [TRANSPORTATION FUND.] To provide the money 6.13 appropriated in this act from the state transportation fund, the 6.14 commissioner of finance shall sell and issue bonds of the state 6.15 in an amount up to $5,000,000 in the manner, upon the terms, and 6.16 with the effect prescribed by Minnesota Statutes, sections 6.17 16A.631 to 16A.675, and by the Minnesota Constitution, article 6.18 XI, sections 4 to 7. The proceeds of the bonds, except accrued 6.19 interest and any premium received on the sale of the bonds, must 6.20 be credited to a bond proceeds account in the state 6.21 transportation fund. 6.22 Subd. 3. [BOND SALE AUTHORIZATION.] To provide the money 6.23 appropriated in this act from the bond proceeds account in the 6.24 trunk highway fund, the commissioner of finance shall sell and 6.25 issue bonds of the state in an amount up to $10,115,000 in the 6.26 manner, upon the terms, and with the effect prescribed by 6.27 Minnesota Statutes, sections 167.50 to 167.52, and by the 6.28 Minnesota Constitution, article XIV, section 11, at the times 6.29 and in the amount requested by the commissioner of 6.30 transportation. The proceeds of the bonds, except accrued 6.31 interest and any premium received on the sale of the bonds, must 6.32 be credited to a bond proceeds account in the trunk highway fund. 6.33 Sec. 10. [CANCELLATION.] 6.34 Of the appropriation from the general fund in Laws 2000, 6.35 chapter 479, article 1, section 2, subdivision 3, $10,100,000 6.36 cancels to the general fund. 7.1 Sec. 11. Laws 2001, First Special Session chapter 12, 7.2 section 10, as amended by Laws 2002, chapter 393, section 84, is 7.3 amended to read: 7.4 Sec. 10. BOND SALE SCHEDULE 7.5 The commissioner of finance shall 7.6 schedule the sale of state general 7.7 obligation bonds so that, during the 7.8 biennium ending June 30, 2003, no more 7.9 than
$622,260,000$613,970,000 will 7.10 need to be transferred from the general 7.11 fund to the state bond fund to pay 7.12 principal and interest due and to 7.13 become due on outstanding state general 7.14 obligation bonds. During the biennium, 7.15 before each sale of state general 7.16 obligation bonds, the commissioner of 7.17 finance shall calculate the amount of 7.18 debt service payments needed on bonds 7.19 previously issued and shall estimate 7.20 the amount of debt service payments 7.21 that will be needed on the bonds 7.22 scheduled to be sold. The commissioner 7.23 shall adjust the amount of bonds 7.24 scheduled to be sold so as to remain 7.25 within the limit set by this section. 7.26 The amount needed to make the debt 7.27 service payments is appropriated from 7.28 the general fund as provided in 7.29 Minnesota Statutes, section 16A.641. 7.30 Sec. 12. Laws 2002, chapter 393, section 7, subdivision 7.31 20, is amended to read: 7.32 Subd. 20. Flood Hazard Mitigation Grants 30,000,000 7.33 For the state share of flood hazard 7.34 mitigation grants for publicly owned 7.35 capital improvements to prevent or 7.36 alleviate flood damage under Minnesota 7.37 Statutes, section 103F.161. 7.38 The commissioner shall determine 7.39 project priorities as appropriate based 7.40 on need. The commissioner must 7.41 consider the disaster identified in the 7.42 area included in DR-1419 in determining 7.43 the highest priority for these grants. 7.44 This appropriation includes money for 7.45 the following projects: Warren, East 7.46 Grand Forks, Agassiz, Montevideo, St. 7.47 Anthony, Granite Falls, Minneapolis at 7.48 27th and Knox Avenue North, St. Louis 7.49 Park, North Ottawa, Lebanon Hills in 7.50 Dakota county, Hay Creek, and Two River 7.51 watershed district Ross No. 7.52 7. $2,000,000 may be spent for 7.53 projects to address the needs in the 7.54 area included in DR-1419. For any 7.55 project listed in this paragraph that 7.56 is not ready to proceed, the 7.57 commissioner may allocate that 7.58 project's money to the next project on 7.59 the commissioner's priority list and 7.60 St. Paul. 8.1 To the extent that the cost of a 8.2 project in Warren, East Grand Forks, 8.3 Montevideo, Breckenridge, Granite 8.4 Falls, Oakport, Roseau, or Crookston 8.5 exceeds two percent of the median 8.6 household income in the municipality 8.7 multiplied by the number of households 8.8 in the municipality, this appropriation 8.9 is also for the local share of the 8.10 project. 8.11 Sec. 13. Minnesota Statutes 2002, section 256I.05, 8.12 subdivision 1, is amended to read: 8.13 Subdivision 1. [MAXIMUM RATES.] (a) Monthly room and board 8.14 rates negotiated by a county agency for a recipient living in 8.15 group residential housing must not exceed the MSA equivalent 8.16 rate specified under section 256I.03, subdivision 5, with the 8.17 exception that a county agency may negotiate a supplementary 8.18 room and board rate that exceeds the MSA equivalent rate for 8.19 recipients of waiver services under title XIX of the Social 8.20 Security Act. This exception is subject to the following 8.21 conditions: 8.22 (1) the setting is licensed by the commissioner of human 8.23 services under Minnesota Rules, parts 9555.5050 to 9555.6265; 8.24 (2) the setting is not the primary residence of the license 8.25 holder and in which the license holder is not the primary 8.26 caregiver; and 8.27 (3) the average supplementary room and board rate in a 8.28 county for a calendar year may not exceed the average 8.29 supplementary room and board rate for that county in effect on 8.30 January 1, 2000. For calendar years beginning on or after 8.31 January 1, 2002, within the limits of appropriations 8.32 specifically for this purpose, the commissioner shall increase 8.33 each county's supplemental room and board rate average on an 8.34 annual basis by a factor consisting of the percentage change in 8.35 the Consumer Price Index-All items, United States city average 8.36 (CPI-U) for that calendar year compared to the preceding 8.37 calendar year as forecasted by Data Resources, Inc., in the 8.38 third quarter of the preceding calendar year. If a county has 8.39 not negotiated supplementary room and board rates for any 8.40 facilities located in the county as of January 1, 2000, or has 9.1 an average supplemental room and board rate under $100 per 9.2 person as of January 1, 2000, it may submit a supplementary room 9.3 and board rate request with budget information for a facility to 9.4 the commissioner for approval. 9.5 The county agency may at any time negotiate a higher or lower 9.6 room and board rate than the average supplementary room and 9.7 board rate. 9.8 (b) Notwithstanding paragraph (a), clause (3), county 9.9 agencies may negotiate a supplementary room and board rate that 9.10 exceeds the MSA equivalent rate by up to $426.37 for up to five 9.11 facilities, serving not more than 20 individuals in total, that 9.12 were established to replace an intermediate care facility for 9.13 persons with mental retardation and related conditions located 9.14 in the city of Roseau that became uninhabitable due to flood 9.15 damage in June 2002. 9.16 Sec. 14. Minnesota Statutes 2002, section 273.11, is 9.17 amended by adding a subdivision to read: 9.18 Subd. 20. [VALUATION EXCLUSION FOR IMPROVEMENTS TO CERTAIN 9.19 BUSINESS PROPERTY.] Property classified under section 273.13, 9.20 subdivision 24, qualifies for a valuation exclusion for 9.21 assessment purposes, provided all of the following conditions 9.22 are met: 9.23 (1) the building must have been damaged by the 2002 floods; 9.24 (2) the building must be located in a city or town with a 9.25 population of 10,000 or less that is located in a county in the 9.26 area included in DR-1419; 9.27 (3) the total estimated market value of the land and 9.28 buildings must be $150,000 or less for assessment year 2002; 9.29 (4) a building permit must have been issued prior to the 9.30 commencement of the improvement, or if the building is located 9.31 in a city or town which does not have a building permit process, 9.32 the property owner must notify the assessor prior to the 9.33 commencement of the improvement; 9.34 (5) the property is not receiving a property tax abatement 9.35 under section 469.1813; and 9.36 (6) the improvements are made before January 1, 2004. 10.1 The assessor shall estimate the market value of the 10.2 building in the assessment year immediately following the year 10.3 that (1) the building permit was taken out, or (2) the taxpayer 10.4 notified the assessor that an improvement was to be made. If 10.5 the estimated market value of the building has increased over 10.6 the 2002 assessment before any reassessment due to flood damage, 10.7 the assessor shall note the amount of the increase on the 10.8 property's record, and that amount shall be subtracted from the 10.9 value of the property in each year for five years after the 10.10 improvement has been made. In each of the next five subsequent 10.11 assessment years, an amount equal to 20 percent of the value 10.12 excluded in the fifth year for that improvement shall be added 10.13 back. 10.14 The maximum amount of value that can be excluded for all 10.15 improvements to any property under this subdivision is $50,000. 10.16 The assessor shall require an application. Applications 10.17 must be received by December 31, 2002, or December 31, 2003, in 10.18 order to be effective for taxes payable in the following year. 10.19 For purposes of this subdivision, "population" has the 10.20 meaning given in section 477A.011, subdivision 3. 10.21 Sec. 15. [273.1386] [2002 FLOOD LOSS; CITY REPLACEMENT 10.22 AID.] 10.23 Subdivision 1. [FLOOD NET TAX CAPACITY LOSS.] The county 10.24 assessor of each qualified county shall compute a hypothetical 10.25 city taxable net tax capacity for each city in the county based 10.26 upon market values for assessment year 2003 and the class rates 10.27 that were in effect for assessment year 2002. The amount, if 10.28 any, by which the assessment year 2002 total taxable net tax 10.29 capacity of the city exceeds the hypothetical taxable net tax 10.30 capacity of the city is the city's "flood net tax capacity 10.31 loss." A county assessor of a qualified county that contains a 10.32 city that has a flood net tax capacity loss that exceeds five 10.33 percent of its assessment year 2002 total taxable net tax 10.34 capacity shall certify the city's flood net tax capacity loss to 10.35 the commissioner of revenue by August 1, 2003. 10.36 As used in this section, a "qualified county" is a county 11.1 located within the area included in DR-1419. 11.2 Subd. 2. [FLOOD LOSS AID.] In 2004, each city with a flood 11.3 net tax capacity loss equal to or greater than five percent of 11.4 its assessment year 2002 total taxable net tax capacity shall be 11.5 entitled to flood loss aid equal to the flood net tax capacity 11.6 loss times the city's average local tax rate for taxes payable 11.7 in 2003. 11.8 Subd. 3. [DUTIES OF COMMISSIONER.] The commissioner of 11.9 revenue shall determine each city's aid amount under this 11.10 section. The commissioner shall notify each eligible city of 11.11 its flood loss aid amount by August 15, 2003. The commissioner 11.12 shall make payments to each city after July 1, and before July 11.13 20, 2004. 11.14 Subd. 4. [OPTIONAL CITY EXPENDITURE.] A city that receives 11.15 aid under this section may choose to expend a portion of the aid 11.16 received for repair of county roads located within the city. 11.17 Subd. 5. [APPROPRIATION.] The amount necessary to pay the 11.18 aid amounts under this section in fiscal year 2005, for calendar 11.19 year 2004, is appropriated to the commissioner of revenue from 11.20 the general fund. 11.21 Subd. 6. [LOCAL GOVERNMENT AID APPROPRIATION 11.22 REDUCTION.] The appropriation under section 477A.03, subdivision 11.23 2, paragraph (d), for fiscal year 2005 is reduced by the amount 11.24 appropriated under subdivision 5. The appropriation under 11.25 section 477A.03, subdivision 3, paragraph (d), for fiscal year 11.26 2006 must be based on the appropriation under that paragraph in 11.27 the previous year before the reduction under this subdivision. 11.28 Sec. 16. Minnesota Statutes 2002, section 469.177, is 11.29 amended by adding a subdivision to read: 11.30 Subd. 1c. [ORIGINAL NET TAX CAPACITY ADJUSTMENTS; 11.31 PRESIDENTIAL DISASTER AREA.] (a) The provisions of this 11.32 subdivision apply to a district located in a disaster area, as 11.33 described in section 273.123, subdivision 1, paragraph (b), 11.34 clause (1), and are effective for taxes payable in the first 11.35 calendar year beginning at least four months after the date of 11.36 the determination. 12.1 (b) For a district certified before the date of the 12.2 disaster area determination as provided in section 273.123, 12.3 subdivision 1, paragraph (b), clause (1), upon the request of 12.4 the municipality, the county auditor shall reduce the original 12.5 net tax capacity of the district by the reduction in the net tax 12.6 capacity of properties in the district that is attributable to 12.7 the physical effects of the disaster, but not below zero. The 12.8 assessor shall determine the amount of the reduction in market 12.9 value that is attributable to the physical effects of the 12.10 disaster to be used by the county auditor in computing the 12.11 reduction in net tax capacity. 12.12 (c) For a district that does not qualify under paragraph 12.13 (b) and for which the request for certification is made in the 12.14 same calendar year as the disaster area determination, upon the 12.15 request of the municipality, the assessor shall determine the 12.16 reduction in market value of properties in the district that is 12.17 attributable to the physical effects of the disaster. The 12.18 county auditor shall use the reduced market value in certifying 12.19 the original net tax capacity of the district. 12.20 [EFFECTIVE DATE.] This section is effective for disaster 12.21 area declarations made after June 20, 2002, and applies to all 12.22 tax increment financing districts, regardless of when the 12.23 request for certification was made. 12.24 Sec. 17. Minnesota Statutes 2002, section 477A.015, is 12.25 amended to read: 12.26 477A.015 [PAYMENT DATES.] 12.27 The commissioner of revenue shall make the payments of 12.28 local government aid to affected taxing authorities in two 12.29 installments on July 20 and December 26 annually. 12.30 When the commissioner of public safety determines that a 12.31 local government has suffered financial hardship due to a 12.32 natural disaster, the commissioner of public safety shall notify 12.33 the commissioner of revenue, who shall make payments of 12.34 homestead and agricultural credit aid under section 273.1398 and 12.35 aids under sections 477A.011 to 477A.014, which are otherwise 12.36 due on December 26, as soon as is practical after the 13.1 determination is made but not before July 20. 13.2 The commissioner may pay all or part of the payment13.3 payments of homestead and agricultural credit aid under section 13.4 273.1398 and aids under sections 477A.011 to 477A.014, which are 13.5 due on December 26 at any time after August 15 upon the request13.6 of a city thatif a local government requests such payment as 13.7 being necessary for meeting its cash flow needs. 13.8 [EFFECTIVE DATE.] This section is effective beginning with 13.9 aid payable in 2002. 13.10 Sec. 18. [PROPERTY TAX ABATEMENTS; FLOOD PROPERTY.] 13.11 Subdivision 1. [AUTHORIZATION.] Notwithstanding the 13.12 requirements of Minnesota Statutes, section 375.192, the county 13.13 board of a qualified county may grant abatements of 50 percent 13.14 of the taxes including the tax imposed under Minnesota Statutes, 13.15 section 275.025, but excluding special assessments, on eligible 13.16 property for taxes payable in 2002 as provided in this section. 13.17 The owner of the property is not required to apply for the 13.18 abatement. 13.19 Subd. 2. [DEFINITIONS.] (a) As used in this section, the 13.20 terms defined in this subdivision have the meanings given them. 13.21 (b) "Qualified county" means a county located in the area 13.22 included in DR-1419. 13.23 (c) "Eligible property" means a parcel of taxable property 13.24 located in a qualified county that contains a structure that has 13.25 been determined by the assessor to have lost over 50 percent of 13.26 its estimated market value due to flooding and flood damage. In 13.27 the case of agricultural property, the abatement is limited to: 13.28 (1) the taxes on the parcel attributable to the value of the 13.29 house, garage, and surrounding one acre, if the house has lost 13.30 over 50 percent of its estimated market value, and (2) the tax 13.31 attributable to the value of any farm buildings and structures 13.32 that have lost over 50 percent of their estimated market value. 13.33 Subd. 3. [COUNTY ADMINISTRATION.] (a) As soon as 13.34 practicable, local and county assessors in qualified counties 13.35 shall notify the county board and property owners of parcels of 13.36 property eligible for the abatement under this section. 14.1 (b) By September 30, 2002, each qualifying county shall 14.2 notify the department of revenue of the amount of flood-related 14.3 market value loss in the county. The department of revenue must 14.4 notify each county of its apportioned share of the reimbursement 14.5 for abatements as determined under subdivision 4 by October 7, 14.6 2002. 14.7 (c) If the county board grants an abatement under this 14.8 section to a property for which over 50 percent of the total 14.9 property tax payable in 2002 has been paid prior to the granting 14.10 of the abatement, the amount paid in excess of 50 percent must 14.11 be refunded. 14.12 (d) The county must grant any abatements under this section 14.13 by October 31, 2002, and must notify the department of revenue 14.14 of the total amount of abatements granted. 14.15 (e) The department of revenue must determine the amount of 14.16 and pay the reimbursements required under this section by 14.17 November 15, 2002. 14.18 Subd. 4. [APPROPRIATION; APPORTIONMENT.] $1,000,000 is 14.19 appropriated from the general fund to the commissioner of 14.20 revenue to be apportioned among the qualified counties to 14.21 provide reimbursement for abatements granted for taxes under 14.22 this section. Counties shall be paid reimbursements only for 14.23 property taxes imposed by the county and other local taxing 14.24 jurisdictions within the county that are actually abated. The 14.25 total reimbursement, including the amount of the state tax 14.26 imposed under Minnesota Statutes, section 275.025, shall not 14.27 exceed each county's apportioned amount. The apportionment 14.28 shall be based upon the amount of flood-related market value 14.29 loss in each county. This appropriation is onetime. 14.30 Sec. 19. [DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS 14.31 PROPERTY TAXES.] 14.32 (a) Notwithstanding Minnesota Statutes, section 279.01, 14.33 subdivision 1, a penalty shall not accrue if, because of the 14.34 2002 floods, a taxpayer is unable to pay the second half of the 14.35 payable 2002 property taxes on class 3a or 3b property, as 14.36 classified under Minnesota Statutes, section 273.13, subdivision 15.1 24, that is in a county in the area included in DR-1419. To 15.2 qualify for this extended due date for the second half payment, 15.3 the taxpayer must have paid the first half of the payable 2002 15.4 taxes by May 16, 2002, and must pay the second half of the 15.5 payable 2002 taxes by May 15, 2003. 15.6 (b) If the second half of the payable 2002 property taxes 15.7 is paid after May 15, 2003, then all penalties that would have 15.8 occurred since the due date under Minnesota Statutes, section 15.9 279.01, subdivision 1, must be charged on the amount of the 15.10 unpaid tax. 15.11 (c) The property taxpayer shall attach to the payment a 15.12 statement that the property is located in the area included in 15.13 DR-1419 and qualifies for an extension under this section. 15.14 Sec. 20. [AGRICULTURAL DISASTER ASSISTANCE.] 15.15 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 15.16 subdivision apply to this section. 15.17 (b) "Acre" means an acre of effective agricultural use land 15.18 within a qualified county as reported by the farm service agency 15.19 on the summary acreage history report. 15.20 (c) "Commissioner" means the commissioner of agriculture. 15.21 (d) "Effective agricultural use land" means the land 15.22 suitable for growing an agricultural crop and excludes land 15.23 enrolled in the conservation reserve program established by 15.24 Minnesota Statutes, section 103F.515, or the water bank program 15.25 established by Minnesota Statutes, section 103F.601. 15.26 (e) "Farm" or "farm operation" means an agricultural 15.27 production operation with a unique farm number as reported on 15.28 the summary acreage history report by the farm service agency 15.29 that includes at least 40 acres of effective agricultural use 15.30 land in a qualified county. 15.31 (f) "Farm operator" means a person who is identified as the 15.32 operator of a farm on the summary acreage history report by the 15.33 farm service agency. 15.34 (g) "Farm service agency" means the United States Farm 15.35 Service Agency. 15.36 (h) "Farmer" or "farmer at risk" means a person who 16.1 produces an agricultural crop and is reported to the farm 16.2 service agency as bearing a percentage of the risk for the farm 16.3 operation. 16.4 (i) "Person" includes individuals, fiduciaries, estates, 16.5 trusts, partnerships, joint ventures, and corporations. 16.6 (j) "Qualified county" means a county in the area included 16.7 in DR-1419. 16.8 (k) "Acreage with substantial damage" means each acre of 16.9 each field or parcel on which the crop yield or crop quality is 16.10 estimated to be less than 50 percent of what it would be in a 16.11 normal year. 16.12 Subd. 2. [PAYMENT TO FARMERS.] (a) A farm operator may 16.13 apply on a separate form for each farm operation to the 16.14 commissioner for payments as provided under this section. The 16.15 payment must be made to each farmer at risk for a farm operation 16.16 and must equal the per-acre rate determined under paragraph (b), 16.17 multiplied by the number of acres with substantial damage 16.18 located in a qualified county, multiplied by the percentage of 16.19 the risk borne by that farmer for that farm operation. Only 16.20 applications received by the commissioner on or before December 16.21 13, 2002, are eligible for payments under this section. If 16.22 total payments to all farmers at risk for a single farm 16.23 operation would be for more than 1,400 acres, the payment to 16.24 each farmer at risk must be prorated so that the total payments 16.25 to all farmers at risk for that farm operation are limited to 16.26 1,400 acres. No individual or married couple may receive total 16.27 payments under this section for more than 1,400 acres whether 16.28 individually, through the person's pro rata ownership share of 16.29 another eligible farming entity, or both. 16.30 (b) Not later than January 15, 2003, the commissioner shall 16.31 determine the total number of acres eligible for payment and 16.32 calculate the per-acre payment rate by dividing the money 16.33 appropriated for payments under this section by the number of 16.34 eligible acres represented by the applications, but not to 16.35 exceed $4 per acre. 16.36 (c) Applications must be based on information reported to 17.1 the farm service agency for crop year 2002. The applications 17.2 must include the social security number or federal employer 17.3 identification number or a producer number assigned by the farm 17.4 service agency for each farmer and the farm service agency farm 17.5 number from the summary acreage history report. 17.6 (d) The commissioner may establish an audit procedure to 17.7 determine the accuracy of applications submitted under this 17.8 subdivision. 17.9 (e) If the commissioner of agriculture determines that 17.10 claims for payments under this subdivision are or were excessive 17.11 or were filed with fraudulent intent, the claim may be 17.12 disallowed in full. If the claim has been paid, the 17.13 commissioner of agriculture shall notify the commissioner of 17.14 revenue of the relevant information, and the amount disallowed 17.15 may be recovered by assessment and collection under Minnesota 17.16 Statutes, chapters 270 and 289A. The assessment must be made 17.17 within two years after a check is cashed, but if cashing a check 17.18 constitutes theft under Minnesota Statutes, section 609.52, or 17.19 forgery under Minnesota Statutes, section 609.631, the 17.20 assessment may be made at any time. The assessment may be 17.21 appealed administratively and judicially. 17.22 Subd. 3. [ADMINISTRATION.] The commissioner must prepare 17.23 application forms for the payment and ensure that they are 17.24 available in the qualified counties. The form must require the 17.25 farm operator to certify that acreage for which the claim is 17.26 being made is acreage with substantial damage. The commissioner 17.27 must make payments by January 31, 2003. 17.28 Sec. 21. [USE OF NATIONAL EMPLOYMENT GRANT.] 17.29 To ensure efficient use of disaster funds, contractors 17.30 working on projects funded under this act should, to the extent 17.31 practicable, hire employees who are available through the 17.32 $2,500,000 grant from the United States Department of Labor to 17.33 the department of trade and economic development for assistance 17.34 for the area included in DR-1419. 17.35 Sec. 22. [WAIVERS AUTHORIZED.] 17.36 Subdivision 1. [FLOOD HAZARD MITIGATION GRANTS; DEPARTMENT 18.1 OF NATURAL RESOURCES.] The maximum grant award under Minnesota 18.2 Statutes, section 103F.161, subdivision 2, is waived for grants 18.3 for the area included in DR-1419. 18.4 Subd. 2. [STATE EROSION, SEDIMENT, AND WATER QUALITY 18.5 CONTROL COST-SHARE PROGRAM; BOARD OF WATER AND SOIL 18.6 RESOURCES.] The board of water and soil resources may waive the 18.7 requirements for cost-share contracts under Minnesota Rules, 18.8 parts 8400.0900, 8400.1405, and 8400.1600, in the affected 18.9 geographic area included in DR-1419. The waiver applies to 18.10 contracts that have been approved but not completed before May 18.11 15, 2002, or to contracts that are funded in whole or in part by 18.12 state funds before May 15, 2002, to the extent that combined 18.13 federal and state funding does not exceed 100 percent. 18.14 Sec. 23. [EFFECTIVE DATE.] 18.15 Except as otherwise specified, this act is effective the 18.16 day following final enactment.