Office of the Revisor of Statutes
Minnesota Session Laws - 1997, 2nd Special Session
Key: (1) language to be deleted (2) new language
CHAPTER 2-H.F.No. 1
An act relating to flood relief; appropriating money;
authorizing the sale of state bonds; providing for
temporary waivers of certain programs and other
relief; canceling certain appropriations; amending
Minnesota Statutes 1996, sections 41B.04, by adding a
subdivision; 41B.043, by adding a subdivision;
103F.105; 268.073, subdivisions 1 and 3; 273.124,
subdivision 14; and 462A.202, subdivision 7, and by
adding a subdivision; Laws 1997, chapter 105, section
3; Laws 1997, chapter 202, article 1, section 35, as
amended; repealing Minnesota Statutes 1996, sections
103F.141, subdivision 2; and Laws 1997, chapter 203,
article 3, section 16.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [APPROPRIATIONS.]
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
flood relief and mitigation projects, as specified in this act,
in the area designated under Presidential Declaration of Major
Disaster, DR-1175. The appropriations from the bond proceeds
fund are available until expended. The appropriations from the
other named funds are available until June 30, 1999, unless
otherwise specified.
SUMMARY
PUBLIC SAFETY $ 30,000,000
NATURAL RESOURCES 13,900,000
HOUSING FINANCE AGENCY 8,500,000
PUBLIC FACILITIES AUTHORITY 9,000,000
TRADE AND ECONOMIC DEVELOPMENT 8,200,000
AGRICULTURE 1,250,000
STRATEGIC AND LONG-RANGE PLANNING 100,000
REVENUE 600,000
BOND SALES EXPENSES 55,000
ADDITIONAL GENERAL FUND DEBT SERVICE TRANSFER 5,000,000
GENERAL FUND APPROPRIATION REDUCTION (20,300,000)
TOTAL $ 56,305,000
BOND PROCEEDS FUND 55,305,000
PETROLEUM TANK RELEASE CLEANUP FUND 1,000,000
APPROPRIATIONS
$
Sec. 2. PUBLIC SAFETY 30,000,000
This appropriation is to the
commissioner of public safety for the
state and local match of public
disaster assistance funds under
Minnesota Statutes, section 12.221.
This appropriation is available to fund
100 percent of the state and local
match obligations required for publicly
owned capital improvement projects
incurred through the receipt of federal
public assistance for damages reported.
Sec. 3. NATURAL RESOURCES 13,900,000
Subdivision 1. To the commissioner
of natural resources for the purposes
specified in this section. For the
purposes of this appropriation, the
commissioner may waive the grant limit
of $75,000 in Minnesota Statutes,
section 103F.161.
Subd. 2. Flood Hazard Mitigation Grants 5,000,000
For the flood hazard mitigation grant
program to local government units for
publicly owned capital improvements to
prevent or alleviate flood damages
under Minnesota Statutes, section
103F.161, and for the nonfederal
portion of federal hazard mitigation
grant program projects.
Subd. 3. Flood Proofing Grants
to Local Governments 5,000,000
For flood proofing projects for
publicly owned buildings and facilities
under Minnesota Statutes, section
103F.161.
Subd. 4. Flood Protection 3,000,000
To fund public flood protection and
reduction measures under Minnesota
Statutes, section 103F.161, including
ring dikes, levee repair and
rehabilitation, and engineering for
permanent projects.
Subd. 5. Flood Damage Reduction Projects 900,000
This is a one-time appropriation from
the general fund to fund flood damage
reduction projects under Minnesota
Statutes, section 103F.161, including
the construction of ring dikes.
Sec. 4. HOUSING FINANCE 8,500,000
Subdivision 1. For transfer to the
housing development fund for the
programs specified in this section.
Subd. 2. Affordable Rental
Investment Fund 2,000,000
This is a one-time appropriation from
the general fund for the affordable
rental investment fund under Minnesota
Statutes, section 462A.21, subdivision
8b, to be used for rental housing.
Notwithstanding Minnesota Statutes,
section 462A.21, subdivision 8b,
assistance provided from this
appropriation for the rehabilitation of
existing rental housing may be in the
form of forgivable loans. In making
forgivable loans from this
appropriation, the agency shall
determine the circumstances, terms, and
conditions under which all or any
portion of the grant shall be repaid.
This appropriation is available until
expended.
Subd. 3. Community Rehabilitation
Fund Program 4,500,000
This is a one-time appropriation from
the general fund for the community
rehabilitation fund program under
Minnesota Statutes, section 462A.206.
Of this amount, up to $500,000 is
available for grants for damages
occurring after June 10, 1997, in an
area designated under a presidential
declaration of major disaster. This
appropriation is available until
expended.
Subd. 4. Rental Housing Loans 2,000,000
This appropriation is for the purpose
of making loans for publicly owned
permanent rental housing to local units
of government under Minnesota Statutes,
section 462A.202, subdivision 3a.
Sec. 5. PUBLIC FACILITIES AUTHORITY 9,000,000
Subdivision 1. To the public
facilities authority for the purposes
specified in this section.
Subd. 2. New Housing 5,000,000
Notwithstanding criteria or limitations
in Minnesota Statutes, sections
446A.07, 446A.072, and 446A.081, for
grants to local units of government for
publicly owned storm sewer, wastewater,
municipal utility service, and drinking
water infrastructure needs for new
housing construction.
Subd. 3. Repair and Replacement 4,000,000
Notwithstanding criteria or limitations
in Minnesota Statutes, sections
446A.07, 446A.072, and 446A.081, for
grants to local units of government to
assist with the cost of repair and
replacement of publicly owned storm
sewer, wastewater, municipal utility
service, and drinking water systems as
well as streets and bridges.
Sec. 6. TRADE AND ECONOMIC
DEVELOPMENT 8,200,000
Notwithstanding the requirement in
Minnesota Statutes, section 469.169,
subdivision 11, as added by Laws 1997,
chapter 231, article 16, section 20, to
base allocations to zones in cities on
the state's western border on a per
capita basis, $1,200,000 is a one-time
appropriation from the general fund to
the commissioner of trade and economic
development for border city enterprise
competitiveness grants under Minnesota
Statutes, sections 469.166 to 469.173.
Funds shall be allocated to communities
with significant business losses that
are at risk of losing business tax base
due to noncompetitiveness with North
Dakota and South Dakota and shall be
available to communities for locally
administered measures to retain their
job base. Allocations made under this
paragraph may be used for tax
reductions as provided in Minnesota
Statutes, section 469.171, or other
offsets of taxes imposed on or remitted
by businesses located in the enterprise
zone, but only if the municipality
determines that the granting of the tax
reduction or offset is necessary in
order to retain a business within or
attract a business to the zone.
Limitations on allocations under
Minnesota Statutes, section 469.169,
subdivision 7, do not apply to this
appropriation. Enterprise zones that
receive allocations under this
paragraph may continue in effect for
purposes of those allocations through
December 31, 1998.
$6,000,000 is a one-time appropriation
from the general fund to the Minnesota
investment fund for grants to local
units of government for locally
administered operating loan programs
for businesses directly and adversely
affected by the floods. Loan criteria
and requirements shall be locally
established with approval by the
department. For the purposes of this
appropriation, Minnesota Statutes,
sections 116J.8731, subdivisions 3, 4,
5, and 7, and 116J.991, are waived.
Businesses that receive grants or loans
from this appropriation shall set goals
for jobs retained and wages paid within
the area designated under Presidential
Declaration of Major Disaster, DR-1175.
$1,000,000 is a one-time appropriation
from the petroleum tank release cleanup
fund to the commissioner of trade and
economic development. Notwithstanding
Minnesota Statutes, section 115C.08,
subdivision 4, as amended by Laws 1997,
chapter 200, article 2, section 4,
these funds are to be used for grants
to buy out property substantially
damaged by a petroleum tank release.
Sec. 7. AGRICULTURE 1,250,000
To the rural finance authority for
department of agriculture loans under
Minnesota Statutes, chapter 41B, to
farmers for capital repairs to
agriculture buildings and farm
driveways, drainage ditches, and
grassed waterways.
Sec. 8. STRATEGIC AND LONG-RANGE
PLANNING 100,000
This is a one-time appropriation from
the general fund to develop an
application for federal empowerment
zone and enterprise credits for local
communities and not-for-profit
organizations.
Sec. 9. REVENUE 600,000
(a) This is a one-time appropriation
from the general fund to provide
assistance to local governments
experiencing a significant loss in
property tax base and tax revenues due
to the 1997 flood and having difficulty
in meeting existing debt service
obligations. The appropriation is to
be used for the purposes in paragraphs
(b) to (d).
(b) $20,000 is to reimburse local
governments for uncollected property
taxes designated for existing debt
service obligations in jurisdictions
where the flood-related market value
loss is at least three percent of the
jurisdiction's total taxable value.
(c) $230,000 is to pay the payable 1998
property taxes of properties located in
the counties of Big Stone, Chippewa,
Clay, Kittson, Lac qui Parle, Marshall,
Norman, Polk, Wilkin, and Yellow
Medicine that are purchased through
buy-out programs resulting from the
1997 floods between July 1, 1997, and
December 31, 1997. Each jurisdiction
that holds title to these properties
shall notify the county auditor, and
the county auditor shall compile
information on net property taxes due
on these properties and submit the
information in the form of an
application to the commissioner of
revenue. Based upon the information
received, the commissioner shall
determine the percentage of the tax
that will be reimbursed, if the amounts
applied for exceed the appropriation.
The commissioner shall make the full or
pro rata payments to the county, which
shall apportion the payments in the
same manner as the taxes due. The
remaining payable 1998 tax on each
property receiving reimbursement under
this paragraph, if any, is abated.
(d) $350,000 is to be apportioned by
the commissioner of revenue among the
counties of Big Stone, Chippewa, Clay,
Kittson, Lac qui Parle, Marshall,
Norman, Polk, Wilkin, and Yellow
Medicine to provide reimbursement for
abatements granted for taxes payable in
1998 to properties damaged in the 1997
floods that are not described in
paragraph (c). The apportionment shall
be based upon the amount of
flood-related market value loss in each
county. Priority shall be given to
properties that are not eligible for
disaster credit under Minnesota
Statutes, section 273.123, subdivisions
1 to 6. Counties shall be reimbursed
only for property taxes that are
actually abated, not to exceed each
county's apportioned amount.
Sec. 10. CHILDREN, FAMILIES, AND
LEARNING
The commissioner of children, families,
and learning may accelerate, by an
amount determined by the commissioner,
the state aid payment schedule under
Minnesota Statutes, section 124.195,
for special school district No. 1,
Minneapolis, to address damages
incurred during the July 1997 floods.
The amount, as calculated by the
commissioner, shall be reduced by any
funds paid to the district from claims
from property and casualty insurers.
The total amount of state aid paid to
special school district No. 1,
Minneapolis, in fiscal year 1998 shall
not exceed the amount the district
would have received without the
waiver. The school district shall also
cooperate with the city on a
presidential disaster declaration.
Sec. 11. BOND SALE EXPENSES 55,000
To the commissioner of finance for bond
sale expenses under Minnesota Statutes,
section 16A.641, subdivision 8.
Sec. 12. [BOND SALE AUTHORIZATIONS.]
To provide the money appropriated in this act from the bond
proceeds fund, the commissioner of finance, on request of the
governor, shall sell and issue bonds of the state in an amount
up to $55,305,000 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.
Sec. 13. [LEGISLATIVE INTENT FOR FUTURE BONDING.]
The intent of the governor and legislature is to reduce the
economic, social, and environmental impacts of severe flooding
by providing flood damage reduction grants for cost-effective
flood control projects. To accomplish this purpose, federally
authorized flood control projects in the communities of
Marshall, Stillwater, Crookston, Warren, and East Grand Forks,
as well as flood control projects approved by the department of
natural resources in other communities, shall be given
consideration for funding in the 1998 capital improvements
budget bill.
Sec. 14. [CANCELLATION OF APPROPRIATIONS.]
$19,700,000 of the $20,000,000 appropriation to the
commissioner of public safety in Laws 1997, chapter 105, section
7, as amended by Laws 1997, chapter 203, article 3, section 16,
is canceled and returned to the general fund.
$600,000 of the $1,000,000 appropriation to the
commissioner of finance in Laws 1997, chapter 105, section 6, is
canceled and returned to the general fund.
Sec. 15. Minnesota Statutes 1996, section 41B.04, is
amended by adding a subdivision to read:
Subd. 3a. [DEBT-TO-ASSET RATIO.] Notwithstanding Minnesota
Rules, part 1653.0031, and other law to the contrary, a person
who farms land located in a county that has been the subject of
a state or federal disaster declaration may participate in a
loan restructuring program under this section even if the person
has a debt-to-asset ratio under 50 percent. The person must
apply to participate in the program within 18 months of the
disaster declaration.
Sec. 16. Minnesota Statutes 1996, section 41B.043, is
amended by adding a subdivision to read:
Subd. 2a. [SNOW OR FLOOD DAMAGE.] A prospective borrower
applying for a loan participation through an eligible lender may
refinance an existing debt in order to repair or replace farm
driveways, drainage ditches and tile lines, grassed waterways,
or agricultural buildings damaged due to snow or flooding.
Sec. 17. Minnesota Statutes 1996, section 103F.105, is
amended to read:
103F.105 [FLOODPLAIN MANAGEMENT POLICY.]
(a) The legislature finds:
(1) a large portion of the state's land resources is
subject to recurrent flooding by overflow of streams and other
watercourses causing loss of life and property, disruption of
commerce and governmental services, unsanitary conditions, and
interruption of transportation and communications, all of which
are detrimental to the health, safety, welfare, and property of
the occupants of flooded lands and the people of this state; and
(2) the public interest necessitates sound land use
development as land is a limited and irreplaceable resource, and
the floodplains of this state are a land resource to be
developed in a manner which will result in minimum loss of life
and threat to health, and reduction of private and public
economic loss caused by flooding.
(b) It is the policy of this state to reduce flood damages
through floodplain management, stressing nonstructural measures
such as floodplain zoning and floodproofing, and flood warning
practices, and other indemnification programs that reduce public
liability and expense for flood damages.
(c) It is the policy of this state:
(1) not to prohibit but to guide development of the
floodplains consistent with legislative findings;
(2) to provide state coordination and assistance to local
governmental units in floodplain management;
(3) to encourage local governmental units to adopt, enforce
and administer sound floodplain management ordinances; and
(4) to provide the commissioner of natural resources with
authority necessary to carry out a floodplain management program
for the state and to coordinate federal, state, and local
floodplain management activities in this state; and
(5) to provide incentives for communities to participate in
the national flood insurance program and for citizens of
Minnesota to take actions such as purchasing and maintaining
flood insurance to reduce future flood damage to private
property.
Sec. 18. Minnesota Statutes 1996, section 268.073,
subdivision 1, is amended to read:
Subdivision 1. [ADDITIONAL BENEFITS; WHEN AVAILABLE.]
Additional reemployment insurance benefits are authorized under
this section only if the commissioner determines that:
(1) an employer has reduced operations at a facility
employing 100 or more individuals for at least six months during
the preceding year resulting in the reduction of at least 50
percent of the employer's work force and the layoff of at least
50 employees at that facility, including reductions caused as a
result of a major natural disaster declared by the President;
(2) the employer has no expressed plan to resume operations
which would lead to the reemployment of those employees at any
time in the immediate future; and
(3) the unemployment rate for the county in which the
facility is located was ten percent during the month of the
reduction or any of the three months preceding or succeeding the
reduction.
Sec. 19. Minnesota Statutes 1996, section 268.073,
subdivision 3, is amended to read:
Subd. 3. [ELIGIBILITY CONDITIONS.] A claimant is eligible
to receive additional benefits under this section for any week
during the claimant's benefit year if the commissioner finds
that:
(1) the claimant's unemployment is the result of a
reduction in operations as provided under subdivision 1;
(2) the claimant is unemployed and meets the eligibility
requirements for the receipt of unemployment benefits under
section 268.08;
(3) the claimant is not subject to a disqualification for
benefits under section 268.09; for the purpose of this
subdivision, the disqualifying conditions set forth in section
268.09, and the requalifying requirements thereunder, apply to
the receipt of additional benefits under this section;
(4) the claimant has exhausted all rights to regular
benefits payable under section 268.07, is not entitled to
receive extended benefits under section 268.071, and is not
entitled to receive reemployment insurance benefits under any
other state or federal law for the week in which the claimant is
claiming additional benefits;
(5) the claimant has made a claim for additional benefits
with respect to any week the claimant is claiming benefits in
accordance with the regulations as the commissioner may
prescribe with respect to claims for regular benefits; and
(6) the claimant has worked at least 26 weeks during the
claimant's base period in employment a majority of the
claimant's wage credits were earned with an employer for whom
the commissioner has determined there was a reduction in
operations under subdivision 1.
Sec. 20. Minnesota Statutes 1996, 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 two
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 subdivision 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).
(b) Except as provided in paragraph (d), 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 two townships or
cities or combination thereof from the homestead.
(c) 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.
(d) 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;
(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 homestead dwelling. For taxes payable
in 1998, the owner must notify the assessor by December 1, 1997.
Sec. 21. Minnesota Statutes 1996, section 462A.202, is
amended by adding a subdivision to read:
Subd. 3a. [PERMANENT RENTAL HOUSING.] The agency may make
loans, with or without interest, to cities and counties to
finance the construction, acquisition, or rehabilitation of
affordable, permanent, publicly owned rental housing located in
the area designated under Presidential Declaration of Major
Disaster, DR-1175. Loans made under this subdivision are
subject to the restrictions of subdivision 7.
Sec. 22. Minnesota Statutes 1996, section 462A.202,
subdivision 7, is amended to read:
Subd. 7. [RESTRICTIONS.] (a) Except as provided in
paragraphs (b), (c), (d), (e), and (f), the city must own the
property financed with a loan under this section and use the
property for the purposes specified in this section:
(1) the city may sell the property at its fair market value
provided it repays the lesser of the net proceeds of the sale or
the amount of the loan balance to the agency for deposit in the
local government unit housing account; or
(2) the city may use the property for a different purpose
provided that the city repays the amount of the original loan.
If the city owns and uses the property for the purposes
specified in this section for a 20-year period, the agency shall
forgive the loan.
(b) In cases where the property consists of land only,
including land on which buildings acquired with a loan under
this section are demolished by the city, the city may lease the
property for a term not to exceed 99 years to a nonprofit
organization to use for the purposes specified in this section.
(c) In cases where the property consists of land and
buildings, the city may do the following:
(1) demolish the buildings in whole or in part and use or
lease the property under paragraph (b);
(2) sell the buildings to a nonprofit organization to use
for the purposes specified in this section. If sold, the city
must sell the buildings for fair market value and repay the
proceeds of the sale to the agency for deposit in the local
government unit housing account;
(3) lease the buildings to a nonprofit organization to use
for the purposes specified in this section. If leased, except
as provided in paragraph (d), the annual rental must equal the
amount of the loan attributable to the cost of the buildings,
divided by the number of years of useful life of the buildings
as determined in accordance with generally accepted accounting
principles. For purposes of determining the required rental,
the purchase price of land and buildings must be allocated
between them based on standard valuation procedures; or
(4) contract with a nonprofit organization to manage the
property.
(d) A city may lease a building to a nonprofit organization
for a nominal amount under the following conditions:
(1) the lease does not exceed ten years;
(2) the city must have the option to cancel the lease with
or without cause at the end of any three-year period; and
(3) the city must determine annually that the property is
being used for the purposes specified in this section and that
the terms of the lease, including any income limits for
residents, are being met.
(e) A city may sell single-family residential housing
directly to persons and families of low and moderate income.
(f) A city may lease the buildings to a partnership
consisting of a nonprofit organization and a limited partner if
the nonprofit organization is the general partner and the
financing for the land trust project includes low-income housing
tax credits. All conditions for leasing buildings to a
nonprofit organization as provided under this subdivision apply
to the lease authorized under this paragraph.
(g) The statutory lien created under section 16A.695 may be
subordinate to liens created by other sources of financing, at
the discretion of the agency.
Sec. 23. Laws 1997, chapter 105, section 3, is amended to
read:
Sec. 3. [TEMPORARY WAIVER OF FEES, ASSESSMENTS, OR TAXES.]
Subdivision 1. [FEES.] Notwithstanding any law to the
contrary, for fiscal years 1997 and 1998, 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 geographic areas affected by flooding within
counties included in a federal disaster declaration and to the
minimum periods of times 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 budgetary
affairs of the agency. This section subdivision expires
February 1, 1998.
Subd. 2. [SOLID WASTE GENERATOR ASSESSMENTS AND SOLID
WASTE MANAGEMENT TAXES.] Notwithstanding any law to the
contrary, the waiver authority provided in subdivision 1 is also
extended to the commissioner of revenue in relation to the solid
waste generator assessment under Minnesota Statutes, section
116.07, subdivision 10, and the solid waste management taxes
under Laws 1997, chapter 231, article 13, for construction
debris generated from repair and demolition activities in the
area designated under Presidential Declaration of Major
Disaster, DR-1175, and disposed of in a waste management
facility designated by the commissioner of the pollution control
agency. The commissioner of revenue's authority under this
subdivision to waive the assessment and tax expires for waste
transported to the designated facilities after December 31,
1997, including waste transported to a landfill that is limited
by permit exclusively to the disposal of flood debris. The
waiver authority granted to the commissioner of revenue is
retroactive to April 1, 1997.
Sec. 24. Laws 1997, chapter 202, article 1, section 35, as
amended by Laws 1997, chapter 246, section 34, is amended to
read:
Sec. 35. BOND SALE SCHEDULE
The commissioner of finance shall
schedule the sale of state general
obligation bonds so that, during the
biennium ending June 30, 1999, no more
than $560,457,000 $565,457,000 will
need to be transferred from the general
fund to the state bond fund to pay
principal and interest due and to
become due on outstanding state general
obligation bonds. During the biennium,
before each sale of state general
obligation bonds, the commissioner of
finance shall calculate the amount of
debt service payments needed on bonds
previously issued and shall estimate
the amount of debt service payments
that will be needed on the bonds
scheduled to be sold, the commissioner
shall adjust the amount of bonds
scheduled to be sold so as to remain
within the limit set by this section.
The amount needed to make the debt
service payments is appropriated from
the general fund as provided in
Minnesota Statutes, section 16A.641.
Sec. 25. [COMMISSIONER OF HOUSING FINANCE; USE OF
APPROPRIATION.]
The appropriation in Laws 1997, chapter 200, article 1,
section 6, of $8,118,000 the first year and $6,493,000 the
second year for the affordable rental investment fund may be
used for forgivable loans for the rehabilitation of existing
rental housing located in the area designated under Presidential
Declaration of Major Disaster, DR-1175, notwithstanding
Minnesota Statutes, section 462A.21, subdivision 8b. In making
forgivable loans from this appropriation, the agency shall
determine the circumstances, terms, and conditions under which
all or any portion of the grant shall be repaid.
Sec. 26. [ICF/MR OPERATING COSTS.]
Notwithstanding any law to the contrary, for a provider
group that includes seven ICFs/MR with a total of 54 licensed
beds and was affected significantly by the severe conditions of
the winter and spring of 1996-1997, the operating cost payment
rate for each of its six facilities located in Polk and Norman
counties for the rate year beginning October 1, 1997, shall be
the operating cost payment rate in effect for each facility on
September 30, 1997.
Sec. 27. [TRANSFER.]
Of the savings generated through the implementation of Laws
1997, chapter 203, article 12, section 18, $43,700 is
transferred to the medical assistance account for the purposes
of section 26.
Sec. 28. [CASH FLOW ASSISTANCE.]
Local jurisdictions in the counties of Big Stone, Chippewa,
Clay, Kittson, Lac qui Parle, Marshall, Norman, Polk, Wilkin,
and Yellow Medicine may apply to the commissioner of revenue for
accelerated payment of 1998 local government aid under Minnesota
Statutes, section 477A.013, or homestead and agricultural credit
aid under Minnesota Statutes, section 273.1398, subdivision 2,
if necessary for meeting the jurisdiction's cash flow needs. If
the request is granted by the commissioner, the payment
regularly scheduled to be made on December 26, 1998, shall be
made on March 15, 1998.
Sec. 29. [CITY OF CROOKSTON; FLOOD CONTROL DISTRICT.]
Subdivision 1. [AUTHORIZATION.] The city of Crookston may,
by ordinance approved by at least a four-fifths vote of all
members of the council, establish a flood control district
including part or all of the incorporated area of the city. If
the mayor has no vote or votes only in the case of a tie, the
mayor is not deemed to be a city council member for purposes of
determining a four-fifths majority vote. Subject to the
approval of the commissioner of natural resources, the city may
undertake flood control improvements, including the acquisition
of properties within or adjacent to the flood plain, the
demolition or removal of structures or improvements within or
adjacent to the flood plain or where necessary to permit the
construction or extension of flood control works, and the
construction, reconstruction, extension, or maintenance of
levees, dikes, and other flood control works. The commissioner
of natural resources shall approve or reject the proposed
improvements within 30 days of submission of the proposed
improvements. If the proposed improvements are rejected, the
commissioner must give the reasons for the rejection to the city
in writing. Failure of the commissioner to approve or reject
the proposed improvements within 30 days of their submission
shall be deemed to be an approval of the proposed improvements.
The costs of the flood control improvements may be paid for by
the city from the flood control fees or levies authorized in
subdivision 2, from special assessments or improvement bonds
issued under Minnesota Statutes, chapter 429, from federal or
state grants, from money appropriated by the city from other
sources, or from any combination of those sources.
Subd. 2. [SPECIAL SERVICE DISTRICT.] The flood control
district authorized in subdivision 1 shall be a special service
district as provided in Minnesota Statutes, sections 428A.01 to
428A.101, except as otherwise provided in subdivision 1, and
with the following exceptions:
(1) the flood control district is exempt from the
provisions of Minnesota Statutes, section 428A.08;
(2) the special service charge provided under Minnesota
Statutes, sections 428A.02, subdivision 1, and 428A.05, shall be
imposed on all property located within the flood control
district and not limited to commercial, industrial, and public
utility property; and
(3) the charges under this section are limited to a maximum
of 20 years.
Subd. 3. [LOCAL APPROVAL.] This section is effective the
day after compliance by the city of Crookston with Minnesota
Statutes, section 645.021, subdivision 3.
Sec. 30. [FLOOD DAMAGED SCHOOL RECONSTRUCTION.]
In order to expedite school reconstruction of school
buildings destroyed by the floodwaters of 1997 that are located
within the boundaries of independent school district Nos. 595
and 2854, the school districts may enter into construction
contracts, including but not limited to design-build, that the
districts determine to be in their best interests. Construction
of these educational facilities is emergency construction and
not subject to competitive bid requirements of Minnesota
Statutes, sections 123.37 and 471.345, or other law or charter
or the requirements of Minnesota Statutes, section 16B.335. The
department of children, families, and learning shall notify the
chairs of the senate finance committees, the house ways and
means committee, and the house capital investment committee that
the projects have been approved under review and comment and
necessary contracts have been executed.
Sec. 31. [SCHOOL FACILITY STORM DAMAGE RELATED
BETTERMENT.]
A district may make an additional levy for facility
betterment under this section. To make this levy, a district
must:
(1) qualify under Minnesota Statutes, section 124.239, in
fiscal year 1998; and
(2) have had damage to an instructional facility in excess
of $1,000,000 related to storms during the summer of 1997.
The levy must be directly related to the costs of the
betterment of the damaged facility and may only be for costs not
otherwise paid for by insurance or other proceeds. The total
costs related to the levy may not exceed two percent of a
district's 1995 adjusted net tax capacity. The project must be
approved under Minnesota Statutes, section 121.15, and be a part
of the plan under Minnesota Statutes, section 124.239. The
district may either bond for the costs under Minnesota Statutes,
section 124.239, subdivision 3, or levy under Minnesota
Statutes, section 124.239, subdivision 5. The levy may be
spread over more than one year. The levy is not eligible for
state-aid payments under Minnesota Statutes, section 124.239,
subdivision 3a or 5a, 124.83, or 124.95, or any other aid
program. A district must consult with and receive approval from
the city in which its administrative offices are located prior
to making this levy.
Sec. 32. [REPEALER.]
Minnesota Statutes 1996, section 103F.141, subdivision 2;
and Laws 1997, chapter 203, article 3, section 16, are repealed.
Sec. 33. [EFFECTIVE DATE.]
Sections 1 to 19, 21, 22, and 24 to 32 are effective on the
day following final enactment. Section 20 is effective for
taxes levied in 1997, payable in 1998, and thereafter. Section
23 is effective retroactive to April 1, 1997.
Presented to the governor August 20, 1997
Signed by the governor August 22, 1997, 11:13 a.m.
Official Publication of the State of Minnesota
Revisor of Statutes