1.1 	A bill for an act
1.2 	relating to public safety; modifying the disaster assistance account;amending 
1.3 	Minnesota Statutes 2016, section 12.221, subdivision 6.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2016, section 12.221, subdivision 6, is amended to read:
1.6 		Subd. 6.Disaster assistance contingency account; appropriation. (a) A disaster 
1.7 	assistance contingency account is created in the special revenue fund in the state treasury. 
1.8 	Money in the disaster assistance contingency account is appropriated to the commissioner 
1.9 	of public safety to provide:
1.10 	(1) cost-share for federal assistance under section 12A.15, subdivision 1;
1.11 	(2) state public disaster assistance to eligible applicants under chapter 12B;
1.12 	(3) cost-share for federal assistance from the Federal Highway Administration emergency 
1.13 	relief program under United States Code, title 23, section 125; and
1.14 	(4) cost-share for federal assistance from the United States Department of Agriculture, 
1.15 	Natural Resources Conservation Service emergency watershed protection program under 
1.16 	United States Code, title 16, sections 2203 to 2205.
1.17 	(b) For appropriations under paragraph (a), clause (1), the amount appropriated is 100 
1.18 	percent of any nonfederal share for state agencies and, local governments, and utility 
1.19 	cooperatives. Money appropriated under paragraph (a), clause (1), may be used to pay all 
1.20 	or a portion of the nonfederal share for publicly owned capital improvement projects.
2.1 	(c) For appropriations under paragraph (a), clause (2), the amount appropriated is the 
2.2 	amount required to pay eligible claims under chapter 12B, as certified by the commissioner 
2.3 	of public safety.
2.4 	(d) By January 15 of each year, the commissioner of management and budget shall 
2.5 	submit a report to the chairs and ranking minority members of the house of representatives 
2.6 	Ways and Means Committee and the senate Finance Committee detailing state disaster 
2.7 	assistance appropriations and expenditures under this subdivision during the previous 
2.8 	calendar year.
2.9 	(e) The governor's budget proposal submitted to the legislature under section 16A.11 
2.10 	must include recommended appropriations to the disaster assistance contingency account. 
2.11 	The governor's appropriation recommendations must be informed by the commissioner of 
2.12 	public safety's estimate of the amount of money that will be necessary to:
2.13 	(1) provide 100 percent of the nonfederal share for state agencies and local governments 
2.14 	that will receive federal financial assistance from FEMA during the next biennium; and
2.15 	(2) fully pay all eligible claims under chapter 12B.
2.16 	(f) Notwithstanding section 16A.28:
2.17 	(1) funds appropriated or transferred to the disaster assistance contingency account do 
2.18 	not lapse but remain in the account until appropriated; and
2.19 	(2) funds appropriated from the disaster assistance contingency account do not lapse 
2.20 	and are available until expended.