SF 1

as introduced - 85th Legislature, 2007 1st Special Session (2007 - 2007) Posted on 12/15/2009 12:00am

A bill for an act
relating to disaster relief; providing money to match and supplement federal
disaster assistance for property damaged by the floods of August 2007; providing
for temporary waivers of certain program requirements and other relief;
providing for flood enrollment impact aid to school districts; providing for
property tax abatements and reimbursements; modifying certain property tax and
aid provisions in designated counties; facilitating use of federal money to rebuild
I-35W bridge over the Mississippi River in the city of Minneapolis; providing aid
to local governments and individuals affected by floods, fires, drought, and other
disasters; appropriating money; amending Minnesota Statutes 2006, sections
273.123; 273.124, subdivision 14; 275.065, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

SOUTHEAST MINNESOTA FLOOD RELIEF

Section 1. new text begin FLOOD RELIEF APPROPRIATION SUMMARY.
new text end

new text begin The amounts shown in this section summarize direct appropriations made in this
article.
new text end

new text begin SUMMARY new text end
new text begin Public Safety new text end	new text begin $ new text end	new text begin 19,500,000 new text end
new text begin Transportation new text end		new text begin 51,000,000 new text end
new text begin Natural Resources new text end		new text begin 6,700,000 new text end
new text begin Board of Water and Soil Resources new text end		new text begin 3,000,000 new text end
new text begin Pollution Control Agency new text end		new text begin 1,000,000 new text end
new text begin Employment and Economic Development new text end		new text begin 45,000,000 new text end
new text begin Housing Finance Agency new text end		new text begin 18,000,000 new text end
new text begin Minnesota Historical Society new text end		new text begin 250,000 new text end
new text begin Education new text end		new text begin 584,000 new text end
new text begin Revenue new text end		new text begin 1,000,000 new text end
new text begin Bond Sale Expenses new text end		new text begin 75,000 new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 146,609,000 new text end
new text begin General Fund new text end		new text begin 65,334,000 new text end
new text begin Petroleum Tank Cleanup Fund new text end		new text begin 1,000,000 new text end
new text begin Trunk Highway Fund new text end		new text begin 5,000,000 new text end
new text begin Bond Proceeds Fund new text end		new text begin 29,255,000 new text end
new text begin Trunk Highway Fund Bond Proceeds Account new text end		new text begin 20,020,000 new text end
new text begin State Transportation Fund new text end		new text begin 26,000,000 new text end

Sec. 2. new text begin FLOOD RELIEF APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin The sums in the column under
"APPROPRIATIONS" are appropriated from the bond proceeds fund to be spent to
acquire and to better publicly owned land and buildings and other public improvements of
a capital nature, and from other named funds, for relief as specified in this article from the
flooding that occurred on or after August 18, 2007, in the area of Southeast Minnesota
designated under Presidential Declaration of Major Disaster, DR-1717, whether included
in the original declaration or added later by federal government action, referred to in this
article as "the area included in DR-1717." The appropriations are for fiscal year 2008,
except that appropriations of bond proceeds or for capital improvements are available until
the project is completed or abandoned, subject to Minnesota Statutes, section 16A.642. If
there is a shortage of money for a program or project funded in this article, or in the money
available for state and local match under Minnesota Statutes, section 12.221, unused
general fund money appropriated for any other program or project in this article may be
transferred by an interagency agreement approved by the commissioner of finance to
cover the shortfall. The commissioner shall report the transfers to the chairs of the senate
finance and house of representatives ways and means committees. The appropriations in
this article are one time.
new text end

new text begin Subd. 2. new text end

new text begin Repayment. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 161.04,
subdivision 1, a state agency that receives emergency federal money for a project funded
in this article must credit the federal money to the fund from which the agency received an
appropriation for that project, in an amount equal to the federal money, up to the amount of
the appropriation in this article. The commissioner of finance may approve other methods
for repaying state money with federal emergency money.
new text end

new text begin (b) A local government that receives federal money for a project funded in this
article must repay to the state an amount equal to the federal money, up to the amount
of the state grant used for that project. The repayment must be credited to the fund from
which the local government received the appropriation for that project in this article.
new text end

					new text begin APPROPRIATIONS new text end

Sec. 3. new text begin PUBLIC SAFETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 20,500,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Match for Individual Assistance new text end

new text begin 2,000,000 new text end

new text begin For the state match for federal disaster
assistance to individuals under Minnesota
Statutes, section 12.221. This appropriation
is from the general fund.
new text end

new text begin Subd. 3. new text end new text begin State and Local Match new text end

new text begin 15,000,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end		new text begin 2,000,000 new text end
new text begin Bond Proceeds new text end		new text begin 13,000,000 new text end

new text begin For the state and local match for federal
disaster assistance to state agencies and
political subdivisions under Minnesota
Statutes, section 12.221.
new text end

new text begin The appropriation from the bond proceeds
fund is available to fund 100 percent of the
state and local match obligations for publicly
owned capital improvement projects incurred
through the receipt of federal disaster
assistance.
new text end

new text begin Subd. 4. new text end new text begin Grants for Debris Removal and Burial new text end

new text begin 2,500,000 new text end

new text begin For grants to counties for costs related to
the burial and removal of debris from rural
residences and farms from the August 2007
flood damage. The commissioner may
require documentation of costs. Grants are
available for debris removal and burial costs
not covered by private insurance or federal
reimbursement. This appropriation is from
the general fund.
new text end

Sec. 4. new text begin TRANSPORTATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 51,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Infrastructure Investment Support new text end

new text begin 5,000,000 new text end

new text begin From the trunk highway fund.
new text end

new text begin Subd. 3. new text end new text begin State Trunk Highways and Bridges new text end

new text begin 20,000,000 new text end

new text begin From the bond proceeds account in the trunk
highway fund for the reconstruction and
repair of trunk highways and trunk highway
bridges that are located in the area included
in DR-1717 and that suffered flood-related
damage in 2007.
new text end

new text begin Subd. 4. new text end new text begin Local Road and Bridge Rehabilitation and Replacement new text end

new text begin 26,000,000 new text end

new text begin From the state transportation fund, as
provided in Minnesota Statutes, section
174.50, for grants to local governments
for capital costs related to rehabilitation
and replacement of local roads and bridges
damaged or destroyed by flooding in the area
included in DR-1717.
new text end

new text begin A grantee must submit to the commissioner
of transportation final plans for each project
before grant money may be released for the
project. The commissioner shall determine
project priorities, review project plans in
light of those priorities, and, if necessary,
require changes to the plans to ensure the
most prudent use of limited state resources.
If a local government receives federal money
for a project funded under this section, the
local government must repay to the state, for
deposit in the state transportation fund, an
amount equal to the federal funding, up to
the amount of the state grant.
new text end

new text begin For grants under this subdivision, the
requirements of Minnesota Statutes, section
174.50, subdivisions 5, 6, 6a, and 7, are
waived.
new text end

Sec. 5. new text begin NATURAL RESOURCES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 6,700,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Facility Damage new text end

new text begin 4,200,000 new text end

new text begin From the bond proceeds fund to rehabilitate
and replace state facilities and restore natural
resources in the area included in DR-1717
that were damaged by the floods of August
2007.
new text end

new text begin Subd. 3. new text end new text begin Flood Hazard Mitigation Grants new text end

new text begin 2,000,000 new text end

new text begin From the bond proceeds fund for the state
share of flood hazard mitigation grants for
capital improvements to prevent or alleviate
flood damage under Minnesota Statutes,
section 103F.161, in the area included in
DR-1717.
new text end

new text begin The commissioner shall determine project
priorities as appropriate, based on need.
new text end

new text begin This appropriation may be used to buy out
substantially damaged structures.
new text end

new text begin To the extent that the cost of a project funded
by this appropriation in a given municipality
exceeds two percent of the median household
income in the municipality multiplied by the
number of households in the municipality,
this appropriation is also for the local share
of the project.
new text end

new text begin Subd. 4. new text end new text begin Stream Debris Removal new text end

new text begin 500,000 new text end

new text begin To remove flood debris from streams
in the area included in DR-1717. This
appropriation is from the general fund.
new text end

Sec. 6. new text begin BOARD OF WATER AND SOIL RESOURCES new text end

new text begin $ new text end

new text begin 3,000,000 new text end

new text begin To acquire conservation easements from
landowners on marginal lands in the area
included in DR-1717 that were damaged by
the floods of August 2007 in order to protect
soil and water quality and to support fish and
wildlife habitat as provided in Minnesota
Statutes, section 103F.515.
new text end

new text begin The payment maximums for improvements
to the land under Minnesota Statutes,
section 103F.515, subdivision 6, paragraph
(a), clause (1), are waived for permanent
easements acquired in the area included in
DR-1717. The board may waive provisions
of Minnesota Rules, chapter 8400, for
easements acquired in the area included in
DR-1717.
new text end

new text begin Up to 20 percent of this appropriation may be
used by the board to implement the program.
new text end

Sec. 7. new text begin POLLUTION CONTROL AGENCY new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin Notwithstanding Minnesota Statutes, section
115C.08, subdivision 4, this appropriation is
from the petroleum tank release cleanup fund
for grants to safely rehabilitate buildings
if a portion of the rehabilitation cost is
attributable to petroleum contamination or to
buy out property substantially damaged by a
petroleum tank release.
new text end

new text begin This appropriation is available until June
30, 2009. Any unused portion of the
appropriation must be returned to the
petroleum tank release cleanup fund.
new text end

Sec. 8. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 45,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Minnesota Investment Fund new text end

new text begin 35,000,000 new text end

new text begin For transfer to the Minnesota investment fund
for grants to local units of government for
locally administered grants or loan programs
for businesses directly and adversely affected
by the flood, including businesses that
provide residential, health care, child care,
social, or other services on behalf of the
Department of Human Services to residents
of the area included in DR-1717.
new text end

new text begin Criteria and requirements must be locally
established with the approval of the
commissioner. For the purposes of this
appropriation, Minnesota Statutes, sections
116J.8731, subdivisions 3, 4, 5, and 7;
116J.993; 116J.994; and 116J.995, are
waived. Businesses that receive grants or
loans from this appropriation must set goals
for jobs retained and wages paid within the
area included in DR-1717.
new text end

new text begin Before any grants under this subdivision are
awarded to a local unit of government, the
commissioner of employment and economic
development shall report to the chairs of the
senate finance and house of representatives
ways and means committees the criteria and
requirements to be used by local units of
government in the grant or loan programs
they will administer. This appropriation is
from the general fund.
new text end

new text begin Subd. 3. new text end new text begin Public Infrastructure new text end

new text begin 10,000,000 new text end

new text begin From the bond proceeds fund to the public
facilities authority for grants to local units
of government to assist with the cost of
rehabilitation and replacement of publicly
owned infrastructure, including storm
sewers, wastewater and municipal utility
service, and drinking water systems for any
costs incurred on or after August 18, 2007.
new text end

new text begin For the purposes of this appropriation,
criteria, limitations, and repayment
requirements in Minnesota Statutes, sections
446A.07, 446A.072, and 446A.081, are
waived.
new text end

Sec. 9. new text begin HOUSING FINANCE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 18,000,000 new text end

new text begin The appropriations in this section are from
the general fund, for transfer to the housing
development fund for the programs specified
in this section. The amounts that may be
spent for each purpose are specified in the
following subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Economic Development and Housing Challenge new text end

new text begin 16,000,000 new text end

new text begin For the economic development and housing
challenge program under Minnesota Statutes,
section 462A.33, for housing assistance in
the area included in DR-1717.
new text end

new text begin For assistance under this subdivision,
the requirements of Minnesota Statutes,
section 462A.33, subdivisions 3 and 5,
and Minnesota Rules, part 4900.3632, are
waived.
new text end

new text begin Subd. 3. new text end new text begin Capacity Building Grants new text end

new text begin 1,000,000 new text end

new text begin For grants under Minnesota Statutes, section
462A.21, subdivision 3b, to local units of
government, including regional consortia,
in the area included in DR-1717 to assess
housing and related needs and to develop and
implement community and regional plans to
meet those needs and to provide capacity to
implement recovery plans.
new text end

new text begin Subd. 4. new text end new text begin Disaster Relief Contingency Fund new text end

new text begin 1,000,000 new text end

new text begin To reimburse the disaster relief contingency
fund established under Minnesota Statutes,
section 462A.21, subdivision 29, for amounts
spent in response to the flooding of August
2007 in the area included in DR-1717.
new text end

Sec. 10. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin For historic site cleanup, repair, and
replacement costs related to the floods of
August 2007. This appropriation is from the
general fund.
new text end

Sec. 11. new text begin EDUCATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 584,000 new text end

new text begin The appropriations in this section are from
the general fund. The amounts that may be
spent for each purpose are specified in the
following subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Independent School District No. 239, Rushford-Peterson new text end

new text begin (a) new text end new text begin Flood Enrollment Impact Aid new text end

new text begin 89,000 new text end

new text begin The commissioner of education shall pay to
the school district flood enrollment impact
aid equal to $5,394 times the number of
pupils lost as a result of the floods of August
2007. The district must provide to the
commissioner of education documentation
of the number of pupils in average daily
membership lost as a result of the flood.
new text end

new text begin (b) new text end new text begin Disaster Relief Facilities Grant new text end

new text begin 250,000 new text end

new text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant.
new text end

new text begin (c) new text end new text begin Pupil Transportation Aid new text end

new text begin 40,000 new text end

new text begin For increased costs associated with
transporting students as a result of the floods
of August 2007.
new text end

new text begin Subd. 3. new text end new text begin Independent School District No. 238, Mabel-Canton new text end

new text begin 50,000 new text end

new text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant.
new text end

new text begin Subd. 4. new text end new text begin Independent School District No. 294, Houston new text end

new text begin 60,000 new text end

new text begin For facilities cleanup, repair, and replacement
costs related to the floods of August 2007 not
covered by the district's insurance settlement
or through Federal Emergency Management
Agency payments. The commissioner of
education may request the school district
to provide necessary information before
awarding a grant.
new text end

new text begin Subd. 5. new text end new text begin Independent School District No. 857, Lewiston new text end

new text begin 5,000 new text end

new text begin For increased costs associated with
transporting students as a result of the floods
of August 2007.
new text end

new text begin Subd. 6. new text end new text begin Disaster Relief Facilities Grants to Other Districts new text end

new text begin 90,000 new text end

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

Sec. 12. new text begin REVENUE new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin To reimburse counties for property tax
abatements on flooded property under section
18.
new text end

Sec. 13. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 75,000 new text end

new text begin To the commissioner of finance for bond sale
expenses under Minnesota Statutes, section
16A.641, subdivision 8.
new text end

new text begin Appropriations by Fund new text end
new text begin Bond proceeds new text end		new text begin 55,000 new text end
new text begin Trunk highway new text end		new text begin 20,000 new text end

Sec. 14. new text begin BOND SALE AUTHORIZATION.
new text end

new text begin Subdivision 1. new text end

new text begin Bond proceeds fund. new text end

new text begin To provide the money appropriated in this act
from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $29,255,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
new text end

new text begin Subd. 2. new text end

new text begin Trunk highway fund. new text end

new text begin To provide the money appropriated in this act from
the bond proceeds account in the trunk highway fund, the commissioner of finance shall
sell and issue bonds of the state in an amount up to $20,020,000 in the manner, upon the
terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
and by the Minnesota Constitution, article XIV, section 11, at the times and in the amount
requested by the commissioner of transportation. The proceeds of the bonds, except
accrued interest and any premium received on the sale of the bonds, must be credited to a
bond proceeds account in the trunk highway fund.
new text end

new text begin Subd. 3. new text end

new text begin Transportation fund. new text end

new text begin To provide the money appropriated in this act from
the state transportation fund, the commissioner of finance shall sell and issue bonds of the
state in an amount up to $26,000,000 in the manner, upon the terms, and with the effect
prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest
and any premium received on the sale of the bonds, must be credited to a bond proceeds
account in the state transportation fund.
new text end

Sec. 15. new text begin WAIVERS AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Flood hazard mitigation grants; Department of Natural
Resources. new text end

new text begin The maximum grant award under Minnesota Statutes, section 103F.161,
subdivision 2, is waived for grants for the area included in DR-1717.
new text end

new text begin Subd. 2. new text end

new text begin State erosion, sediment, and water quality control cost-share program;
Board of Water and Soil Resources. new text end

new text begin The Board of Water and Soil Resources may
waive the requirements for cost-share contracts under Minnesota Rules, parts 8400.0900,
8400.1405, and 8400.1600, in the affected geographic area included in DR-1717. The
waiver applies to all existing and future contracts to address critical conservation problems
resulting from flooding that are funded in whole or in part with state money, to the extent
that combined federal and state funding does not exceed 100 percent. All existing state
cost-share grant agreements in the area included in DR-1717 are extended to June 30, 2009.
new text end

Sec. 16. new text begin USE OF NATIONAL EMPLOYMENT GRANT.
new text end

new text begin To ensure efficient use of disaster money, contractors working on projects funded
under this act should, to the extent practicable, hire employees who are available through
a grant, if any, from the United States Department of Labor to the Department of
Employment and Economic Development for assistance for the area included in DR-1717.
new text end

Sec. 17. new text begin HUMAN SERVICES PROVIDER PAYMENTS CONTINUED.
new text end

new text begin The commissioner of human services may continue, until March 31, 2008, to
reimburse parties under contract with the commissioner of human services as of August
18, 2007, for residential, health care, child care, social, or other services provided on
behalf of the Department of Human Services to a resident of the area included in DR-1717,
notwithstanding that the resident has been compelled by the floods of August 2007 to
relocate outside the party's service area. A party seeking reimbursement must apply to the
commissioner on a form prescribed by the commissioner and certify that the party intends
to resume normal operations as soon as recovery from the flood damage permits.
new text end

Sec. 18. new text begin PROPERTY TAX ABATEMENTS FOR FLOODED PROPERTY;
REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin Notwithstanding the requirements of Minnesota
Statutes, section 375.192, the county board of a qualified county may grant abatements
of 50 percent of the taxes, including the tax imposed under Minnesota Statutes, section
275.025, but excluding special assessments, on eligible property for taxes payable in
2007 as provided in this section. The owner of the property is not required to apply for
the abatement.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Qualified county" means a county located in the area included in DR-1717.
new text end

new text begin (c) "Eligible property" means a parcel of taxable property located in a qualified
county that contains a structure that has been determined by the assessor to have lost over
50 percent of its estimated market value due to flooding and flood damage. In the case of
agricultural property, the abatement is limited to: (1) the taxes on the parcel attributable to
the value of the house, garage, and surrounding one acre, if the house has lost over 50
percent of its estimated market value, and (2) the tax attributable to the value of any farm
buildings and structures that have lost over 50 percent of their estimated market value.
new text end

new text begin Subd. 3. new text end

new text begin County administration. new text end

new text begin (a) As soon as practicable, local and county
assessors in qualified counties shall notify the county board and property owners of parcels
of property eligible for the abatement under this section.
new text end

new text begin (b) By September 30, 2007, each qualifying county shall notify the commissioner of
revenue of the amount of flood-related market value loss in the county. The commissioner
must notify each county of its apportioned share of the reimbursement for abatements as
determined under subdivision 4 by October 7, 2007.
new text end

new text begin (c) If the county board grants an abatement under this section to a property for which
over 50 percent of the total property tax payable in 2007 has been paid before the granting
of the abatement, the amount paid in excess of 50 percent must be refunded.
new text end

new text begin (d) The county must grant any abatements under this section by October 31, 2007,
and must notify the commissioner of revenue of the total amount of abatements granted.
new text end

new text begin (e) The commissioner of revenue must determine the amount of and pay the
reimbursements required under subdivision 4 by November 15, 2007.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement apportioned. new text end

new text begin The commissioner of revenue shall
reimburse counties for property taxes abated under this section, up to the amount
appropriated for that purpose and apportioned to the qualified counties. The reimbursement
must be only for property taxes imposed by the county and other local taxing jurisdictions
within the county that are actually abated under this section. The commissioner shall
apportion the appropriation based on the amount of flood-related market value loss in each
county. The total reimbursement, including the amount of the state tax imposed under
Minnesota Statutes, section 275.025, must not exceed each county's apportioned amount.
new text end

Sec. 19.

new text begin 2007 FLOOD LOSS; CITY REPLACEMENT AID.
new text end

new text begin Subdivision 1. new text end

new text begin Flood net tax capacity loss. new text end

new text begin The county assessor of each qualified
county shall compute a hypothetical city taxable net tax capacity for each city in the
county based upon market values for assessment year 2008 and the class rates that were in
effect for assessment year 2007. The amount, if any, by which the assessment year 2007
total taxable net tax capacity of the city exceeds the hypothetical taxable net tax capacity
of the city is the city's "flood net tax capacity loss." A county assessor of a qualified county
that contains a city that has a flood net tax capacity loss that exceeds five percent of its
assessment year 2007 total taxable net tax capacity shall certify the city's flood net tax
capacity loss to the commissioner of revenue by August 1, 2008.
new text end

new text begin As used in this section, a "qualified county" is a county located within the area
included in DR-1717.
new text end

new text begin Subd. 2. new text end

new text begin Flood loss aid. new text end

new text begin In 2009, each city with a flood net tax capacity loss equal
to or greater than five percent of its assessment year 2007 total taxable net tax capacity is
entitled to flood loss aid equal to the flood net tax capacity loss times the city's average
local tax rate for taxes payable in 2008.
new text end

new text begin Subd. 3. new text end

new text begin Duties of commissioner. new text end

new text begin The commissioner of revenue shall determine
each city's aid amount under this section. The commissioner shall notify each eligible city
of its flood loss aid amount by August 15, 2008. The commissioner shall make payments
to each city after July 1, and before July 20, 2009.
new text end

new text begin Subd. 4. new text end

new text begin Optional city expenditure. new text end

new text begin A city that receives aid under this section
may choose to expend a portion of the aid received for repair of county roads located
within the city.
new text end

new text begin Subd. 5. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the aid amounts under this
section in fiscal year 2010, for calendar year 2009, is appropriated to the commissioner of
revenue from the general fund.
new text end

Sec. 20. new text begin DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS
PROPERTY TAXES.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 279.01, subdivision 1, a penalty
does not accrue if, because of the 2007 floods, a taxpayer is unable to pay the second
half of the payable 2007 property taxes on class 3a or 3b property, as classified under
Minnesota Statutes, section 273.13, subdivision 24, that is in a county in the area included
in DR-1717. To qualify for this extended due date for the second half payment, the
taxpayer must have paid the first half of the payable 2007 taxes by May 16, 2007, and
must pay the second half of the payable 2007 taxes by May 15, 2008.
new text end

new text begin (b) If the second half of the payable 2007 property taxes is paid after May 15, 2008,
then all penalties that would have occurred since the due date under Minnesota Statutes,
section 279.01, subdivision 1, must be charged on the amount of the unpaid tax.
new text end

new text begin (c) The property taxpayer shall attach to the payment a statement that the property is
located in the area included in DR-1717 and qualifies for an extension under this section.
new text end

Sec. 21.

Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read:

Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than
ten acres that is the homestead of its owner must be classified as class 2a under section
273.13, subdivision 23, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in
lieu taxes are paid under sections 477A.11 to 477A.14;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least
20 acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal
to at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

(b)(i) Agricultural property consisting of at least 40 acres shall be classified as the
owner's homestead, to the same extent as other agricultural homestead property, if all
of the following criteria are met:

(1) the owner, the owner's spouse, the son or daughter of the owner or owner's
spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively
farming the agricultural property, either on the person's own behalf as an individual or
on behalf of a partnership operating a family farm, family farm corporation, joint family
farm venture, or limited liability company of which the person is a partner, shareholder, or
member;

(2) both the owner of the agricultural property and the person who is actively
farming the agricultural property under clause (1), are Minnesota residents;

(3) neither the owner nor the spouse of the owner claims another agricultural
homestead in Minnesota; and

(4) neither the owner nor the person actively farming the property lives farther
than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.

The relationship under this paragraph may be either by blood or marriage.

(ii) Real property held by a trustee under a trust is eligible for agricultural homestead
classification under this paragraph if the qualifications in clause (i) are met, except that
"owner" means the grantor of the trust.

(iii) Property containing the residence of an owner who owns qualified property
under clause (i) shall be classified as part of the owner's agricultural homestead, if that
property is also used for noncommercial storage or drying of agricultural crops.

(c) Noncontiguous land shall be included as part of a homestead under section
273.13, subdivision 23, paragraph (a), only if the homestead is classified as class 2a
and the detached land is located in the same township or city, or not farther than four
townships or cities or combination thereof from the homestead. Any taxpayer of these
noncontiguous lands must notify the county assessor that the noncontiguous land is part of
the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer
must also notify the assessor of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a
person holding a vested remainder interest in it must be classified as a homestead under
section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a,
any other dwellings on the land used for purposes of a homestead by persons holding
vested remainder interests who are actively engaged in farming the property, and up to
one acre of the land surrounding each homestead and reasonably necessary for the use of
the dwelling as a home, must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain
classified as agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman,
or Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 1997 assessment year and continue to be used
for agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30
miles of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in dwelling. Further notifications to the assessor are not
required if the property continues to meet all the requirements in this paragraph and any
dwellings on the agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain
classified agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood,
LeSueur, Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph
and any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property consisting of at least 40 acres of a family farm corporation,
joint family farm venture, family farm limited liability company, or partnership operating
a family farm as described under subdivision 8 shall be classified homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:

(1) a shareholder, member, or partner of that entity is actively farming the
agricultural property;

(2) that shareholder, member, or partner who is actively farming the agricultural
property is a Minnesota resident;

(3) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and

(4) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph for property leased to a family
farm corporation, joint farm venture, limited liability company, or partnership operating a
family farm if legal title to the property is in the name of an individual who is a member,
shareholder, or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an
initial full application must be submitted to the county assessor where the property is
located. Owners and the persons who are actively farming the property shall be required
to complete only a one-page abbreviated version of the application in each subsequent
year provided that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within
the four townships or city criteria and are Minnesota residents;

(3) the same operator of the agricultural property is listed with the Farm Service
Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include
the appropriate Social Security numbers, and sign and date the application. If any of the
specified information has changed since the full application was filed, the owner must
notify the assessor, and must complete a new application to determine if the property
continues to qualify for the special agricultural homestead. The commissioner of revenue
shall prepare a standard reapplication form for use by the assessors.

new text begin (i) Agricultural land and buildings that were class 2a homestead property under
section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain
classified agricultural homesteads for subsequent assessments if:
new text end

new text begin (1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;
new text end

new text begin (2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted,
Steele, Wabasha, or Winona;
new text end

new text begin (3) the agricultural land and buildings remain under the same ownership for the
current assessment year as existed for the 2007 assessment year;
new text end

new text begin (4) the dwelling occupied by the owner is located in this state and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and
new text end

new text begin (5) the owner notifies the county assessor that the relocation was due to the August
2007 floods, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph
and any dwellings on the agricultural land remain uninhabited.
new text end

Sec. 22.

Minnesota Statutes 2006, section 275.065, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Waiver for disasters and emergencies. new text end

new text begin A county or local government in
the area included in DR-1717 may petition the commissioner in writing to waive some or
all of the requirements of this section to the extent that their performance or applicability
is significantly hindered by the disaster or emergency. The commissioner may grant the
waiver for truth-in-taxation estimates for 2007 payable 2008.
new text end

Sec. 23. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise specified, this act is effective the day following final enactment.
new text end

ARTICLE 2

I-35W BRIDGE COLLAPSE

Section 1. new text begin PUBLIC SAFETY.
new text end

new text begin $2,000,000 is appropriated from the general fund to the commissioner of public
safety for fiscal year 2008 for the state match for federal disaster assistance to political
subdivisions under Minnesota Statutes, section 12.221, for the I-35W bridge collapse.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 2. new text begin TRANSPORTATION.
new text end

new text begin $53,237,000 in federal grants and aids for the I-35W bridge collapse is appropriated
to the commissioner of transportation for the purposes specified in the federal grant. This
appropriation is in addition to appropriations under Laws 2007, chapter 143, article 1,
section 3.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end

ARTICLE 3

OTHER STATEWIDE DISASTER RELIEF

Section 1. new text begin FORAGE AND FEED GRANTS.
new text end

new text begin $2,000,000 is appropriated from the general fund to the commissioner of agriculture
for fiscal year 2008 for grants to Minnesota livestock producers who have lost forage or
other feed due to flood or drought. For the purposes of flood relief, eligible producers must
operate a livestock operation and corresponding acreage in Dodge, Fillmore, Houston,
Olmsted, Steele, Wabasha, or Winona County. For the purposes of drought relief, eligible
producers must operate a livestock operation and corresponding acreage in counties that
have been classified all or in part as D3 by the U.S. Drought Monitor in 2007. The
commissioner must make payments to livestock producers on a per head animal basis up
to a maximum of $5,000 for a single producer or entity.
new text end

new text begin Applicants must demonstrate that they have incurred forage or feed losses directly
attributable to either flood or drought in 2007 and must provide documentation of the
losses as required by the commissioner. The commissioner, with the approval of the chairs
of the policy and finance agricultural committees of the legislature, must develop a claim
application, payment rates, verification procedures, and payment delivery protocols.
new text end

new text begin All applications for grants under this section must be received by the commissioner
on or before December 13, 2007. The commissioner must distribute grants to eligible
applicants as a pro rata amount of the total appropriation. Applications and eligibilities
under this section are not subject to rules under Minnesota Statutes, chapter 14.
new text end

Sec. 2. new text begin RURAL FINANCE AUTHORITY.
new text end

new text begin $500,000 is appropriated from the general fund to the Rural Finance Authority for
the disaster recovery loan program under Minnesota Statutes, section 41B.047, for the
purpose of assisting eligible farmers in a designated agricultural disaster area.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 3. new text begin CROOKSTON FLOOD AID.
new text end

new text begin $200,000 is appropriated from the general fund in each of the fiscal years 2008
and 2009 to the commissioner of revenue to be paid to the city of Crookston for flood
recovery and mitigation issues.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 4. new text begin BROWNS VALLEY FLOOD AID.
new text end

new text begin $100,000 is appropriated from the general fund in each of the fiscal years 2008 and
2009 to the commissioner of revenue to be paid to the city of Browns Valley to assist in
recovery from flooding that occurred March 14, 2007.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 5. new text begin GRAND MARAIS AND COOK COUNTY FIRE AID.
new text end

new text begin $500,000 is appropriated from the general fund in each of the fiscal years 2008 and
2009 to the commissioner of revenue to be paid to the city of Grand Marais and to Cook
County for costs related to the Ham Lake fire of 2007. The aid provided in this section
must be used for nonreimbursed, uninsured costs of repairing roads and rights-of-way;
sprinkler systems for structures; costs incurred by volunteer fire departments, including
replacement of portable sprinkler systems, and repair of vehicles; debris removal and
disposal costs; erosion control and water quality protection assistance and coordination;
repair, replacement, and improvement of communications equipment and infrastructure
for the city and county public safety and human services network and emergency response
centers. The total amount of the aid must be divided between the city of Grand Marais and
Cook County in proportion to their amounts of eligible costs.
new text end

Sec. 6.

Minnesota Statutes 2006, section 273.123, is amended to read:

273.123 REASSESSMENT OF HOMESTEAD PROPERTY DAMAGED BY A
DISASTER.

Subdivision 1.

Definitions.

For purposes of this section (a) "disaster or emergency"
means

(1) a major disaster as determined by the president of the United States;

(2) a natural disaster as determined by the secretary of agriculture;

(3) a disaster as determined by the administrator of the small business administration;
or

(4) a tornado, storm, flood, earthquake, landslide, explosion, fire or similar
catastrophe, as a result of which a local emergency is declared pursuant to section 12.29.

(b) "disaster or emergency area" means an area

(1) in which the president of the United States, the secretary of agriculture, or the
administrator of the small business administration has determined that a disaster exists
pursuant to federal law or in which a local emergency has been declared pursuant to
section 12.29; and

(2) for which an application by the local unit of government requesting property
tax relief under this section has been received by the governor and approved by the
Executive Council.

(c) "homestead property" means homestead dwelling that is classified as class 1, or
2a property or a manufactured home or sectional home used as a homestead and taxed
pursuant to section 273.125, subdivision 8, paragraph (b), (c), or (d).

Subd. 2.

Reassessment of homestead property.

The county assessor shall reassess
all homestead property located within a disaster or emergency area which is physically
damaged by the disaster or emergency deleted text begin and shall adjust the valuation deleted text end new text begin for purposes of
computing the credits under subdivision 4 new text end for taxes payable the following year to reflect
the loss in market value caused by the damage deleted text begin as follows: Subtract the market value of
the property as reassessed from the market value of the property as assessed for January
1 of the year in which the disaster or emergency occurred; multiply the remainder by a
fraction, the numerator of which is the number of full months remaining in the year on the
date the disaster or emergency occurred, and the denominator of which is 12; subtract the
product of the calculation from the market value of the property as assessed for January 1
of the year in which the disaster or emergency occurred; the remainder is the estimated
market value to be used for taxes payable the following year deleted text end . The assessor shall report
to the county auditor the net tax capacity based on the assessment of January deleted text begin 1 deleted text end new text begin 2 new text end of the
year in which the disaster or emergency occurred and the net tax capacity based on the
reassessment made pursuant to this subdivision.

Subd. 2a.

Application requirements.

A request for property tax relief shall be
considered by the Executive Council only if the following requirements are met by the
local unit of government submitting the request:

(1) a completed disaster survey shall be included with the request;

(2) the average dollar amount of damage for the homes which are damaged and
located within the geographic boundaries of the applicant shall be $5,000 or more; and

(3) either (a) at least 25 homes located within the geographic boundaries of the
applicant must have been damaged or destroyed; or (b) the total dollar amount of damage
to all of the damaged homes located within the geographic boundaries of the applicant
shall be equal to at least one percent of the total market value of all homestead property
located within the geographic boundaries of the applicant.

Subd. 3.

Computation of local tax rates.

When computing local tax rates, the
county auditor shall use the valuation reported by the assessor for the assessment made on
January deleted text begin 1 deleted text end new text begin 2 new text end of the year in which the disaster or emergency occurred.

Subd. 4.

new text begin Credit provided; new text end state reimbursement.

The county auditor shall
calculate the tax on the property described in subdivision 2 based on the assessment
made on January 2 of the year in which the disaster or emergency occurred. new text begin The county
auditor shall also calculate the tax on the property described in subdivision 2 based on
the reassessed net tax capacity determined under subdivision 2. new text end The difference between
the tax determined on the January 2 deleted text begin gross deleted text end new text begin net new text end tax capacity and the tax deleted text begin actually payable deleted text end
based on the reassessed deleted text begin gross deleted text end new text begin net new text end tax capacity determined under subdivision 2 shall be
new text begin provided as a credit to the taxpayer and shall be new text end reimbursed to each taxing jurisdiction
in which the damaged property is located. The amount shall be certified by the county
auditor and reported to the commissioner of revenue. The commissioner shall make the
payments to the taxing jurisdictions, other than school districts, containing the property
at the time distributions are made under section 473H.10, subdivision 3, in the same
proportion that the ad valorem tax is distributed.

Subd. 5.

Computation of credits.

The amounts of any credits or tax relief which
reduce the gross tax shall be computed upon the reassessed gross tax capacity determined
under subdivision 2. For purposes of the property tax refund, property taxes payable, as
defined in section 290A.03, subdivision 13, and net property taxes payable, as defined
in section 290A.04, subdivision 2d, shall be computed upon the reassessed gross tax
capacity determined under subdivision 2.

Subd. 6.

Appropriation.

There is annually appropriated from the general fund
to the commissioner of revenue an amount necessary to make the payments required
by this section.

Subd. 7.

Local option; other property.

new text begin (a) new text end The owner of homestead property
deleted text begin not qualifying for an adjustment in valuation pursuant to subdivisions 1 to 5 deleted text end or of
nonhomestead property may receive a reduction in the amount of taxes payable on the
property for the year in which the destruction occurs new text begin , new text end and new text begin the owner of homestead
property not qualifying for an adjustment in valuation under subdivisions 1 to 5 or of
nonhomestead property may receive a reduction in the amount of taxes payable on the
property new text end in the following year if:

deleted text begin (a) deleted text end new text begin (1) new text end 50 percent or more of the homestead dwelling or other structure, as
established by the county assessor, is unintentionally or accidentally destroyed and the
homestead is uninhabitable or the other structure is not usable;

deleted text begin (b) deleted text end new text begin (2) new text end the owner of the property makes written application to the county assessor as
soon as practical after the damage has occurred; and

deleted text begin (c) deleted text end new text begin (3) new text end the owner of the property makes written application to the county board.

The county board may grant a reduction in the amount of property tax which the
owner must pay on the qualifying property in the year of destruction and in the following
year. Any reduction in the amount of tax payable which is authorized by county board
action shall be calculated based upon the number of months that the home is uninhabitable
or the other structure is unusable deleted text begin . deleted text end new text begin , unless the destruction occurred as a result of a disaster
or emergency and is in a disaster or emergency area, in which case the reduction may
reduce the tax to the net tax capacity based on a reassessed value multiplied by the local
tax rate. If the reduction is computed based on the number of months that the home
is uninhabitable or the other structure is unusable, new text end the amount of net tax due from the
taxpayer shall be multiplied by a fraction, the numerator of which is the number of months
the dwelling was occupied by that taxpayer, or the number of months the other structure
was used by the taxpayer, and the denominator of which is 12. For purposes of this
subdivision, if a structure is occupied or used for a fraction of a month, it is considered a
month. "Net tax" is defined as the amount of tax after the subtraction of all of the state
paid property tax credits. If application is made following payment of all property taxes
due for the year of destruction, the amount of the reduction granted by the county board
shall be refunded to the taxpayer by the county treasurer as soon as practical.

Any reductions or refunds approved by the county board shall not be subject to
approval by the commissioner of revenue.

The county board may levy in the following year the amount of tax dollars lost to the
county government as a result of the reductions granted pursuant to this subdivision.

new text begin (b) In the case of a disaster or emergency, the county auditor shall certify
the reductions determined under paragraph (a) to the commissioner of revenue for
reimbursement to each taxing jurisdiction in which the damaged property is located. The
commissioner shall make the payments to the taxing jurisdictions containing the property,
other than school districts, at the time distributions are made under section 473H.10,
subdivision 3, in the same proportion that the ad valorem tax is distributed.
new text end

Sec. 7. new text begin TEMPORARY WAIVER OF FEES, ASSESSMENTS, OR TAXES.
new text end

new text begin Notwithstanding any law to the contrary, for fiscal years 2007 and 2008, an agency,
with the approval of the governor, may waive fees that would otherwise be charged for
agency services. The waiver of fees must be confined to areas affected by flooding
within counties included in a federal disaster declaration and to the minimum periods of
time necessary to deal with the emergency situation. The agency must promptly report
the reasons for and the impact of any suspended fees to the chairs of the legislative
committees that oversee the policy and budget of the agency.
new text end

new text begin This section expires December 31, 2007.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This article is effective the day following final enactment.
new text end