SF 2113

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:35pm

A bill for an act
relating to disaster relief; responding to storms and floods of March and April
2009; providing money to match federal disaster assistance made available
through FEMA Public Assistance Program and Individual Assistance Program;
providing aid for costs that are not eligible for assistance through those programs
or from other federal government agencies or insurance; providing for flood
disaster enrollment impact aid to school districts; providing for temporary
waivers of certain program requirements; providing aid for Hugo tornado;
authorizing sale of state bonds; appropriating money; amending Minnesota
Statutes 2008, section 12A.10.

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

ARTICLE 1

DISASTER RELIEF

Section 1. new text begin DISASTER 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 9,180,000 new text end
new text begin Board of Water and Soil Resources new text end		new text begin 2,000,000 new text end
new text begin Education new text end		new text begin 173,000 new text end
new text begin Employment and Economic Development new text end		new text begin 200,000 new text end
new text begin Housing Finance new text end		new text begin 2,700,000 new text end
new text begin Revenue new text end		new text begin 250,000 new text end
new text begin Human Services new text end		new text begin 200,000 new text end
new text begin Transportation new text end		new text begin 2,900,000 new text end
new text begin Natural Resources new text end		new text begin 50,000,000 new text end
new text begin Bond Sale Expenses new text end		new text begin 60,000 new text end
new text begin Appropriation Reduction new text end		new text begin (10,653,000) new text end
new text begin TOTAL new text end	new text begin $ new text end	new text begin 57,010,000 new text end
new text begin General Fund new text end		new text begin (350,000) new text end
new text begin Bond Proceeds Fund new text end		new text begin 54,455,000 new text end
new text begin Trunk Highway Fund Bond Proceeds Account new text end		new text begin 2,700,000 new text end
new text begin Trunk Highway Fund new text end		new text begin 205,000 new text end

Sec. 2. new text begin DISASTER 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 shown 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
and storms that occurred on or after March 16, 2009, in the areas in Minnesota designated
under presidential Declaration of an Emergency FEMA-3304-EM and Presidential
Declaration of a Major Disaster FEMA-1830-DR, whether included in the original
declarations or added later by federal government action, referred to in this article as "the
area included in DR-1830." The appropriations included in this act are available through
June 30, 2011, 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. The appropriations in this article are onetime.
new text end

new text begin Subd. 2. new text end

new text begin Transfers. new text end

new text begin If there is a shortage of money for a program 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 for assistance in the disaster area, to another program or
project funded in this chapter. Appropriation transfers must be used to cover unmet needs
in a program or project under this chapter. The commissioner of finance must approve
all transfers under this section and must report each transfer to the chairs of the senate
Finance Committee and house of representatives Ways and Means Committee.
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 Appropriations new text end

new text begin $ new text end

new text begin 9,180,000 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 26,000 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 9,154,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end		new text begin 5,254,000 new text end
new text begin Bond Proceeds new text end		new text begin 3,900,000 new text end

new text begin For the state and local match for federal
disaster assistance to state agencies and other
eligible applicants 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 Waiver of Contract Approval Procedures new text end

new text begin State and federal disaster assistance
distributed by the commissioner of public
safety is not subject to the contract approval
procedures of Minnesota Statutes, chapter
16A, 16B, or 16C. The commissioner of
public safety may adopt internal procedures
for administration and monitoring of aids
and grants.
new text end

Sec. 4. new text begin BOARD OF WATER AND SOIL 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 2,000,000 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 The board may transfer appropriations within
this section and may adjust the technical
and administrative assistance portion of
the appropriation to leverage federal or
other nonstate money or to address high
priority needs identified in local water
management, emergency preparedness, or
hazard mitigation plans.
new text end

new text begin Subd. 2. new text end new text begin Reinvest in Minnesota (RIM) Conservation Easements new text end

new text begin 500,000 new text end

new text begin From the bond proceeds fund to acquire
conservation easements from landowners
on marginal lands in the area included in
DR-1830 that were damaged by the storms
and floods of March and April 2009 to restore
and 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 Subd. 3. new text end new text begin Erosion, Sediment, and Water Quality Control Cost-Share Program new text end

new text begin 1,000,000 new text end

new text begin From the general fund to install, repair, or
rehabilitate erosion and sediment control
projects in the area included in DR-1830 that
were damaged by the storms and floods of
March and April 2009 to restore and protect
soil and water quality and to support fish and
wildlife habitat.
new text end

new text begin Subd. 4. new text end new text begin Red River Basin Commission Grant new text end

new text begin 500,000 new text end

new text begin From the general fund for a grant to the
Red River Basin Commission to develop
a comprehensive plan of action to address
flooding and related water quality and
land conservation issues in the Red River
watershed. The plan must take into account
previous federal, state, provincial, regional,
and local assessments and make specific
recommendations for floodplain management
goals and outcomes for the Red River
Basin including structural and nonstructural
measures, water storage allocations by
major watershed, and delineation of roles
and responsibilities and time frames for
implementation. The commission shall
report progress to the legislature by January
15, 2010, and each year thereafter.
new text end

new text begin Subd. 5. new text end new text begin Waivers Authorized new text end

new text begin (a) The board may waive the provisions of
Minnesota Statutes, section 103C.501, and
Minnesota Rules, chapter 8400, in the area
included in DR-1830 on land damaged by the
disaster. The waiver applies to all existing
and future contracts to address critical
conservation problems resulting from the
disaster 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 disaster area are extended,
as provided in law.
new text end

new text begin (b) The payment maximums for
improvements to the land under Minnesota
Statutes, section 103F.515, subdivision 6,
paragraph (a), clause (1), are waived for
easements acquired in the area included in
DR-1830 on land damaged by the disaster.
new text end

Sec. 5. 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 173,000 new text end

new text begin From the general fund for additional costs
and loss of pupil units relating to the floods
of March and April 2009. 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 Disaster Enrollment Impact Aid new text end

new text begin 127,000 new text end

new text begin For disaster enrollment impact aid under
Minnesota Statutes, section 12A.06,
subdivision 1, calculated at a rate of $5,946
per pupil in average daily membership lost
during fiscal year 2009.
new text end

new text begin Subd. 3. new text end new text begin Disaster Relief Facilities Grants new text end

new text begin 15,000 new text end

new text begin For disaster relief facilities grants under
Minnesota Statutes, section 12A.06,
subdivision 2.
new text end

new text begin Subd. 4. new text end new text begin Disaster Relief Operating Grants new text end

new text begin 13,000 new text end

new text begin For disaster relief operating grants under
Minnesota Statutes, section 12A.06,
subdivision 3.
new text end

new text begin Subd. 5. new text end new text begin Pupil Transportation Grants new text end

new text begin 18,000 new text end

new text begin For pupil transportation grants under
Minnesota Statutes, section 12A.06,
subdivision 4.
new text end

Sec. 6. new text begin EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Minnesota Investment Fund new text end

new text begin $ new text end

new text begin 200,000 new text end

new text begin From the general fund for transfer to the
Minnesota investment fund for grants to local
units of government for locally administered
grant or loan programs for businesses
and nonprofit organizations directly and
adversely affected by the flood. Assistance
under this section is not limited to businesses.
Payments may be made for property damage
and cleanup.
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-1830.
new text end

new text begin Before any grants under this section are
awarded to a local unit of government,
the commissioner of employment and
economic development shall report to the
chairs and ranking minority members of
the senate Finance Committee and house of
representatives Ways and Means Committee
the criteria and requirements to be used by
local units of government in the grant or loan
programs they will administer.
new text end

Sec. 7. new text begin HOUSING FINANCE new text end

new text begin Economic Development and Housing Challenge Program new text end

new text begin $ new text end

new text begin 2,700,000 new text end

new text begin From the general fund to the Housing
Finance Agency for transfer to the housing
development fund for the economic
development and housing challenge program
under Minnesota Statutes, section 462A.33,
for assistance in the area included in
DR-1830, Individual Assistance Declaration.
The maximum loan amount per housing
structure is $30,000. Within the limits of
available appropriations, the agency may
increase the maximum amount if the cost
of repair or replacement of the residential
property exceeds the total of the maximum
loan amount and any assistance available
from FEMA, other federal government
agencies including the Small Business
Administration, and private insurance and
flood insurance benefits.
new text end

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

Sec. 8. new text begin REVENUE new text end

new text begin City Flood Loss Aid new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin From the general fund to pay flood loss aid
to cities under section 16.
new text end

Sec. 9. new text begin HUMAN SERVICES new text end

new text begin Medical Assistance Providers new text end

new text begin $ new text end

new text begin 200,000 new text end

new text begin From the general fund for payments
to medical assistance providers under
Minnesota Statutes, section 12A.10.
new text end

Sec. 10. 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 2,900,000 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 Operation and Maintenance new text end

new text begin 200,000 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 2,700,000 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-1830 and that suffered flood-related
damage in 2009.
new text end

Sec. 11. new text begin NATURAL RESOURCES new text end

new text begin Flood Hazard Mitigation Grants new text end

new text begin $ new text end

new text begin 50,000,000 new text end

new text begin To the commissioner of natural resources for
the purposes specified in this section.
new text end

new text begin For the state share of flood hazard
mitigation grants for publicly owned capital
improvements to prevent or alleviate flood
damage under Minnesota Statutes, section
103F.161.
new text end

new text begin This appropriation includes money to
maximize federal funds for projects in Ada,
Breckenridge, and Roseau. Any money
remaining from this appropriation is for
the following projects as prioritized by the
commissioner based on need:
new text end

new text begin (a) Ada
new text end

new text begin (b) Agassiz Valley
new text end

new text begin (c) Albert Lea
new text end

new text begin (d) Argyle
new text end

new text begin (e) Austin
new text end

new text begin (f) Bois de Sioux Watershed District, North
Ottawa project
new text end

new text begin (g) Breckenridge
new text end

new text begin (h) Browns Valley
new text end

new text begin (i) Crookston
new text end

new text begin (j) Granite Falls
new text end

new text begin (k) Hay Creek-Norland
new text end

new text begin (l) Inver Grove Heights
new text end

new text begin (m) Manston Slough
new text end

new text begin (n) Moorhead
new text end

new text begin (o) Oakport Township
new text end

new text begin $12,000,000 is for the Oakport Township
project.
new text end

new text begin (p) Red Path
new text end

new text begin (q) Roseau
new text end

new text begin (r) Shell Rock
new text end

new text begin (s) Spring Brook
new text end

new text begin (t) Stillwater
new text end

new text begin (u) St. Vincent
new text end

new text begin (v) Two Rivers
new text end

new text begin For any project listed in this subdivision
that the commissioner determines is not
ready to proceed or does not expend all the
money allocated to it, the commissioner may
allocate that project's money to a project on
the commissioner's priority list.
new text end

new text begin To the extent that the cost of a project in Ada,
Breckenridge, Browns Valley, Crookston,
Granite Falls, Oakport Township, Roseau,
St. Vincent, or any other community affected
by the April 2009 flooding in the Red River
basin 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

Sec. 12. new text begin BOND SALE EXPENSES new text end

new text begin $ new text end

new text begin 60,000 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 5,000 new text end

Sec. 13. new text begin APPROPRIATION REDUCTION new text end

new text begin $ new text end

new text begin (10,653,000) new text end

new text begin This reduction is from the general fund
appropriation in 2009 H.F. No. 2323, article
15, section 15, as amended by the Senate
April 28, 2009.
new text end

Sec. 14. new text begin BOND SALE AUTHORIZATIONS.
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
article from the bond proceeds fund, the commissioner of finance, at the request of the
commissioner of public safety, shall sell and issue bonds of the state in an amount up to
$54,455,000 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 article
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 $2,705,000 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

Sec. 15.

Minnesota Statutes 2008, section 12A.10, is amended to read:

12A.10 HUMAN SERVICES.

new text begin Subdivision 1. new text end

new text begin Costs eligible for payment. new text end

new text begin Notwithstanding the limitations of
section 12A.01 and the requirement in section 12A.03 that all appropriations must be
used to assist with recovery, new text end the commissioner may pay parties under contract, provider
agreement, or other arrangement with the commissioner as of the date of deleted text begin the deleted text end new text begin a natural
disaster, or the date when action was taken in anticipation of a possible natural new text end disaster
new text begin or other event that threatens the health and safety of individuals served by a program that
receives funding from medical assistance new text end for the costs of evacuation, transportation, deleted text begin or deleted text end
medical deleted text begin or deleted text end new text begin , new text end remedial new text begin , or personal care new text end services provided to vulnerable residents. Costs
eligible for payment under this section are those necessary to ensure the health and
safety of medical assistance recipients during and up to 60 days following the disaster.
deleted text begin To the extent allowed under the state's Medicaid state plan, the commissioner shall pay
these costs from the medical assistance account. deleted text end new text begin Only costs that are not already paid for
by another source are eligible. The commissioner may make payments for documented
incremental costs incurred by a party, may determine an estimate of the costs at the sole
discretion of the commissioner, or may use a combination of these two methods. If after
receiving payment from the commissioner for a documented cost, the provider is able
to acquire payment from another source for that cost, the provider shall reimburse the
commissioner in the amount paid.
new text end

new text begin Subd. 2. new text end

new text begin Payment in residential program. new text end

new text begin In a residential program, the
commissioner shall make payment under this section based on an allocation of costs
as determined under subdivision 1 between medical assistance recipients and all other
residents. The allocation must not be done in a nursing facility. In a nursing facility the
commissioner shall pay all of the costs determined under subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Source of payment. new text end

new text begin The commissioner shall pay costs under this section
using money appropriated for medical assistance and shall seek federal cost sharing to the
extent permitted under the Medicaid state plan or under waivers granted by the federal
Centers for Medicare and Medicaid Services.
new text end

Sec. 16. new text begin 2009 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 2010 and the class rates that were in
effect for assessment year 2009. The amount, if any, by which the assessment year 2009
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 2009 total taxable net tax capacity shall certify the city's flood net tax
capacity loss to the commissioner of revenue by August 1, 2009.
new text end

new text begin As used in this section, a "qualified county" is a county located within the area
included in DR-1830.
new text end

new text begin Subd. 2. new text end

new text begin Flood loss aid. new text end

new text begin In 2010, each city with a flood net tax capacity loss equal
to or greater than five percent of its assessment year 2009 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 2009.
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, 2009. The commissioner shall make payments
to each city after July 1, and before July 20, 2010.
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 2011, for calendar year 2010, is appropriated to the commissioner of
revenue from the general fund.
new text end

Sec. 17. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 2

HUGO TORNADO RELIEF

Section 1. new text begin GRANT.
new text end

new text begin The sum of $350,000 is appropriated from the general fund to the commissioner of
employment and economic development for a grant to the city of Hugo for the cost of
debris clearance and other disaster costs resulting from damage caused by the May 25,
2008, tornado. This is a onetime appropriation and is available until expended.
new text end

new text begin EFFECTIVE DATE. new text end

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