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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                              CHAPTER 1-H.F.No. 1 
                  An act relating to flood relief in designated 
                  counties; providing for temporary waivers of certain 
                  program requirements and other relief; modifying 
                  certain property tax and aid provisions in designated 
                  counties; authorizing the sale of state bonds; 
                  appropriating money; amending Minnesota Statutes 2002, 
                  sections 256I.05, subdivision 1; 273.11, by adding a 
                  subdivision; 469.177, by adding a subdivision; 
                  477A.015; Laws 2001, First Special Session chapter 12, 
                  section 10, as amended; Laws 2002, chapter 393, 
                  section 7, subdivision 20; proposing coding for new 
                  law in Minnesota Statutes, chapter 273. 
        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 as specified in this act, in the area 
        designated under Presidential Declaration of Major Disaster, 
        DR-1419, whether included in the original declaration or added 
        later by federal government action, referred to in this act as 
        "the area included in DR-1419."  The appropriations are for 
        fiscal year 2003, unless otherwise specified.  The 
        appropriations from the bond proceeds fund and other named funds 
        are available until expended, unless otherwise specified.  If 
        there is a shortage of money for a program or project funded in 
        this act, or in the funds 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 act 
        may be transferred by an interagency agreement approved by the 
        commissioner of finance to cover the shortfall. 
                                    SUMMARY 
        PUBLIC SAFETY                                      $  8,300,000 
        HOUSING FINANCE AGENCY                                4,000,000 
        TRADE AND ECONOMIC DEVELOPMENT                        6,000,000 
        AGRICULTURE                                           3,000,000 
        CHILDREN, FAMILIES, AND LEARNING                         40,000 
        TRANSPORTATION                                       17,115,000 
        REVENUE                                               1,000,000 
        FINANCE                                                  15,000 
        CANCELLATION                                        (10,100,000) 
        TOTAL APPROPRIATIONS                               $ 29,370,000 
                      Summary by Fund
        Bond Proceeds Fund                                   11,315,000
        General Fund                                            (60,000)
        Petroleum Tank Release 
        Cleanup Fund                                          1,000,000
        Trunk Highway Fund                                    2,000,000
        State Transportation Fund
        Bond Proceeds Account                                 5,000,000
        Trunk Highway Bond Proceeds                          10,115,000
        Sec. 2.  PUBLIC SAFETY                                8,300,000 
        To the commissioner of public safety 
        for the state and local match of 
        federal disaster assistance funds under 
        Minnesota Statutes, section 12.221. 
        This appropriation 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. 
        Sec. 3.  HOUSING FINANCE                              4,000,000 
        Subdivision 1.  For transfer to the 
        housing development fund for the 
        programs specified in this section.  
        Subd. 2.  Economic Development 
        and Housing Challenge                                 3,000,000
        For the economic development and 
        housing challenge program under 
        Minnesota Statutes, section 462A.33, 
        for housing assistance in the area 
        included in DR-1419.  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.  
        This is a onetime appropriation from 
        the general fund. 
        Subd. 3.  Rental Housing Loans                        1,000,000
        For loans for publicly owned permanent 
        rental housing to local units of 
        government under Minnesota Statutes, 
        section 462A.202, subdivision 3a.  
        Sec. 4.  TRADE AND ECONOMIC DEVELOPMENT
        Subdivision 1.  To the commissioner of 
        trade and economic development for 
        purposes of this section                              6,000,000 
        Subd. 2.  Minnesota Investment Fund                   3,000,000 
        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. 
        Criteria and requirements must 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, 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-1419.  
        This is a onetime appropriation from 
        the general fund.  
        Subd. 3.  Petroleum Cleanup                           1,000,000 
        Notwithstanding Minnesota Statutes, 
        section 115C.08, subdivision 4, up to 
        $1,000,000 is for grants to safely 
        rehabilitate buildings if a portion of 
        the rehabilitation costs is 
        attributable to petroleum contamination 
        or to buy out property substantially 
        damaged by a petroleum tank release.  
        This is a onetime appropriation from 
        the petroleum tank release cleanup fund.
        Subd. 4.  Public Infrastructure                       2,000,000 
        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 the purposes of this appropriation, 
        criteria, limitations, and repayment 
        requirements in Minnesota Statutes, 
        sections 446A.07, 446A.072, and 
        446A.081, are waived. 
        Sec. 5.  AGRICULTURE                                  3,000,000 
        To the commissioner of agriculture to 
        make disaster payments to farmers under 
        section 20.  The commissioner may use 
        up to $50,000 to administer the program.
        This is a onetime appropriation from 
        the general fund.  
        Sec. 6.  CHILDREN, FAMILIES, AND LEARNING                40,000 
        Subdivision 1.  To the commissioner of 
        children, families, and learning for 
        the purposes of this section.  This is 
        a onetime appropriation from the 
        general fund. 
        Subd. 2.  [FISCAL YEAR 2003.] For 
        fiscal year 2003 only, independent 
        school district No. 682, Roseau, is 
        eligible for flood enrollment impact 
        aid equal to the lesser of (a) the 
        product of the general education 
        formula allowance for fiscal year 2003 
        times the reduction, if any, in the 
        district's adjusted marginal cost pupil 
        units between the 2001-2002 school year 
        and the 2002-2003 school year or (b) 
        $40,000. 
        Subd. 3.  [FISCAL YEAR 2004.] For 
        fiscal year 2004 only, independent 
        school district No. 682, Roseau, is 
        eligible for flood enrollment impact 
        aid equal to the lesser of (a) the 
        product of the general education 
        formula allowance for fiscal year 2004 
        times 75 percent of the reduction, if 
        any, in the district's adjusted 
        marginal cost pupil units between the 
        2001-2002 school year and the 2003-2004 
        school year or (b) $30,000. 
        Subd. 4.  [FISCAL YEAR 2005.] For 
        fiscal year 2005 only, independent 
        school district No. 682, Roseau, is 
        eligible for flood enrollment impact 
        aid equal to the lesser of (a) the 
        product of the general education 
        formula allowance for fiscal year 2005 
        times 50 percent of the reduction, if 
        any, in the district's adjusted 
        marginal cost pupil units between the 
        2001-2002 school year and the 2004-2005 
        school year or (b) $20,000. 
        Subd. 5.  [FISCAL YEAR 2006.] For 
        fiscal year 2006 only, independent 
        school district No. 682, Roseau, is 
        eligible for flood enrollment impact 
        aid equal to the lesser of (a) the 
        product of the general education 
        formula allowance for fiscal year 2006 
        times 25 percent of the reduction, if 
        any, in the district's adjusted 
        marginal cost pupil units between the 
        2001-2002 school year and the 2005-2006 
        school year or (b) $10,000. 
        Sec. 7.  TRANSPORTATION                              17,115,000 
        Subdivision 1.  To the commissioner of 
        transportation for the purposes of this 
        section.  
        Subd. 2.  State Trunk Highways and Bridges            2,000,000 
        For the reconstruction and repair of 
        trunk highways and trunk highway 
        bridges that are located in the area 
        included in DR-1419 and that suffered 
        flood-related damage in 2002. 
        This is a onetime appropriation from 
        the trunk highway fund. 
        Subd. 3.  Local Road and Bridge 
        Rehabilitation and Replacement                        5,000,000
        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-1419.  A grantee must submit to the 
        commissioner of transportation final 
        plans for each project before grant 
        funds 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 funds 
        for a project funded under this 
        section, the local government must 
        repay to the state, for deposit in the 
        bond proceeds account in the state 
        transportation fund, an amount equal to 
        the federal funding, up to the amount 
        of the state grant. 
        This appropriation is from the bond 
        proceeds account in the state 
        transportation fund, as provided in 
        Minnesota Statutes, section 174.50.  
        For grants under this subdivision, the 
        requirements of Minnesota Statutes, 
        section 174.50, subdivisions 4, 5, 6, 
        6a, and 7, are waived.  
        Subd. 4.  Trunk Highways                             10,115,000 
        This appropriation is from the bond 
        proceeds account in the trunk highway 
        fund.  This appropriation is for the 
        same purposes as specified in Laws 
        2000, chapter 479, article 1, section 
        2, subdivision 3.  Of this amount, 
        $15,000 is for bond sale expenses. 
        Sec. 8.  BOND SALE EXPENSES                              15,000 
        To the commissioner of finance for bond 
        sale expenses under Minnesota Statutes, 
        section 16A.641, subdivision 8.  
        This appropriation is from the bond 
        proceeds fund.  
           Sec. 9.  [BOND SALE AUTHORIZATION.] 
           Subdivision 1.  [BOND PROCEEDS FUND.] 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 $11,315,000 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. 
           Subd. 2.  [TRANSPORTATION FUND.] 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 $5,000,000 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.  
           Subd. 3.  [BOND SALE AUTHORIZATION.] 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 $10,115,000 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.
           Sec. 10.  [CANCELLATION.] 
           Of the appropriation from the general fund in Laws 2000, 
        chapter 479, article 1, section 2, subdivision 3, $10,100,000 
        cancels to the general fund. 
           Sec. 11.  Laws 2001, First Special Session chapter 12, 
        section 10, as amended by Laws 2002, chapter 393, section 84, is 
        amended to read: 
        Sec. 10.  BOND SALE SCHEDULE   
        The commissioner of finance shall 
        schedule the sale of state general 
        obligation bonds so that, during the 
        biennium ending June 30, 2003, no more 
        than $622,260,000 $613,970,000 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. 12.  Laws 2002, chapter 393, section 7, subdivision 
        20, is amended to read: 
        Subd. 20.  Flood Hazard Mitigation Grants            30,000,000 
        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. 
        The commissioner shall determine 
        project priorities as appropriate based 
        on need.  The commissioner must 
        consider the disaster identified in the 
        area included in DR-1419 in determining 
        the highest priority for these grants. 
        This appropriation includes money for 
        the following projects:  Warren, East 
        Grand Forks, Agassiz, Montevideo, St. 
        Anthony, Granite Falls, Minneapolis at 
        27th and Knox Avenue North, St. Louis 
        Park, North Ottawa, Lebanon Hills in 
        Dakota county, Hay Creek, and Two River 
        watershed district Ross No. 
        7.  $2,000,000 may be spent for 
        projects to address the needs in the 
        area included in DR-1419.  For any 
        project listed in this paragraph that 
        is not ready to proceed, the 
        commissioner may allocate that 
        project's money to the next project on 
        the commissioner's priority list and 
        St. Paul. 
        To the extent that the cost of a 
        project in Warren, East Grand Forks, 
        Montevideo, Breckenridge, Granite 
        Falls, Oakport, Roseau, or Crookston 
        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. 
           Sec. 13.  Minnesota Statutes 2002, section 256I.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MAXIMUM RATES.] (a) Monthly room and board 
        rates negotiated by a county agency for a recipient living in 
        group residential housing must not exceed the MSA equivalent 
        rate specified under section 256I.03, subdivision 5, with the 
        exception that a county agency may negotiate a supplementary 
        room and board rate that exceeds the MSA equivalent rate for 
        recipients of waiver services under title XIX of the Social 
        Security Act.  This exception is subject to the following 
        conditions: 
           (1) the setting is licensed by the commissioner of human 
        services under Minnesota Rules, parts 9555.5050 to 9555.6265; 
           (2) the setting is not the primary residence of the license 
        holder and in which the license holder is not the primary 
        caregiver; and 
           (3) the average supplementary room and board rate in a 
        county for a calendar year may not exceed the average 
        supplementary room and board rate for that county in effect on 
        January 1, 2000.  For calendar years beginning on or after 
        January 1, 2002, within the limits of appropriations 
        specifically for this purpose, the commissioner shall increase 
        each county's supplemental room and board rate average on an 
        annual basis by a factor consisting of the percentage change in 
        the Consumer Price Index-All items, United States city average 
        (CPI-U) for that calendar year compared to the preceding 
        calendar year as forecasted by Data Resources, Inc., in the 
        third quarter of the preceding calendar year.  If a county has 
        not negotiated supplementary room and board rates for any 
        facilities located in the county as of January 1, 2000, or has 
        an average supplemental room and board rate under $100 per 
        person as of January 1, 2000, it may submit a supplementary room 
        and board rate request with budget information for a facility to 
        the commissioner for approval. 
        The county agency may at any time negotiate a higher or lower 
        room and board rate than the average supplementary room and 
        board rate. 
           (b) Notwithstanding paragraph (a), clause (3), county 
        agencies may negotiate a supplementary room and board rate that 
        exceeds the MSA equivalent rate by up to $426.37 for up to five 
        facilities, serving not more than 20 individuals in total, that 
        were established to replace an intermediate care facility for 
        persons with mental retardation and related conditions located 
        in the city of Roseau that became uninhabitable due to flood 
        damage in June 2002. 
           Sec. 14.  Minnesota Statutes 2002, section 273.11, is 
        amended by adding a subdivision to read: 
           Subd. 20.  [VALUATION EXCLUSION FOR IMPROVEMENTS TO CERTAIN 
        BUSINESS PROPERTY.] Property classified under section 273.13, 
        subdivision 24, qualifies for a valuation exclusion for 
        assessment purposes, provided all of the following conditions 
        are met: 
           (1) the building must have been damaged by the 2002 floods; 
           (2) the building must be located in a city or town with a 
        population of 10,000 or less that is located in a county in the 
        area included in DR-1419; 
           (3) the total estimated market value of the land and 
        buildings must be $150,000 or less for assessment year 2002; 
           (4) a building permit must have been issued prior to the 
        commencement of the improvement, or if the building is located 
        in a city or town which does not have a building permit process, 
        the property owner must notify the assessor prior to the 
        commencement of the improvement; 
           (5) the property is not receiving a property tax abatement 
        under section 469.1813; and 
           (6) the improvements are made before January 1, 2004. 
           The assessor shall estimate the market value of the 
        building in the assessment year immediately following the year 
        that (1) the building permit was taken out, or (2) the taxpayer 
        notified the assessor that an improvement was to be made.  If 
        the estimated market value of the building has increased over 
        the 2002 assessment before any reassessment due to flood damage, 
        the assessor shall note the amount of the increase on the 
        property's record, and that amount shall be subtracted from the 
        value of the property in each year for five years after the 
        improvement has been made.  In each of the next five subsequent 
        assessment years, an amount equal to 20 percent of the value 
        excluded in the fifth year for that improvement shall be added 
        back. 
           The maximum amount of value that can be excluded for all 
        improvements to any property under this subdivision is $50,000. 
           The assessor shall require an application.  Applications 
        must be received by December 31, 2002, or December 31, 2003, in 
        order to be effective for taxes payable in the following year. 
           For purposes of this subdivision, "population" has the 
        meaning given in section 477A.011, subdivision 3. 
           Sec. 15.  [273.1386] [2002 FLOOD LOSS; CITY REPLACEMENT 
        AID.] 
           Subdivision 1.  [FLOOD NET TAX CAPACITY LOSS.] 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 2003 and the class rates 
        that were in effect for assessment year 2002.  The amount, if 
        any, by which the assessment year 2002 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 2002 total taxable net tax 
        capacity shall certify the city's flood net tax capacity loss to 
        the commissioner of revenue by August 1, 2003. 
           As used in this section, a "qualified county" is a county 
        located within the area included in DR-1419. 
           Subd. 2.  [FLOOD LOSS AID.] In 2004, each city with a flood 
        net tax capacity loss equal to or greater than five percent of 
        its assessment year 2002 total taxable net tax capacity shall be 
        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 2003. 
           Subd. 3.  [DUTIES OF COMMISSIONER.] 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, 2003.  The commissioner 
        shall make payments to each city after July 1, and before July 
        20, 2004. 
           Subd. 4.  [OPTIONAL CITY EXPENDITURE.] 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. 
           Subd. 5.  [APPROPRIATION.] The amount necessary to pay the 
        aid amounts under this section in fiscal year 2005, for calendar 
        year 2004, is appropriated to the commissioner of revenue from 
        the general fund. 
           Subd. 6.  [LOCAL GOVERNMENT AID APPROPRIATION 
        REDUCTION.] The appropriation under section 477A.03, subdivision 
        2, paragraph (d), for fiscal year 2005 is reduced by the amount 
        appropriated under subdivision 5.  The appropriation under 
        section 477A.03, subdivision 3, paragraph (d), for fiscal year 
        2006 must be based on the appropriation under that paragraph in 
        the previous year before the reduction under this subdivision. 
           Sec. 16.  Minnesota Statutes 2002, section 469.177, is 
        amended by adding a subdivision to read: 
           Subd. 1c.  [ORIGINAL NET TAX CAPACITY ADJUSTMENTS; 
        PRESIDENTIAL DISASTER AREA.] (a) The provisions of this 
        subdivision apply to a district located in a disaster area, as 
        described in section 273.123, subdivision 1, paragraph (b), 
        clause (1), and are effective for taxes payable in the first 
        calendar year beginning at least four months after the date of 
        the determination. 
           (b) For a district certified before the date of the 
        disaster area determination as provided in section 273.123, 
        subdivision 1, paragraph (b), clause (1), upon the request of 
        the municipality, the county auditor shall reduce the original 
        net tax capacity of the district by the reduction in the net tax 
        capacity of properties in the district that is attributable to 
        the physical effects of the disaster, but not below zero.  The 
        assessor shall determine the amount of the reduction in market 
        value that is attributable to the physical effects of the 
        disaster to be used by the county auditor in computing the 
        reduction in net tax capacity. 
           (c) For a district that does not qualify under paragraph 
        (b) and for which the request for certification is made in the 
        same calendar year as the disaster area determination, upon the 
        request of the municipality, the assessor shall determine the 
        reduction in market value of properties in the district that is 
        attributable to the physical effects of the disaster.  The 
        county auditor shall use the reduced market value in certifying 
        the original net tax capacity of the district. 
           [EFFECTIVE DATE.] This section is effective for disaster 
        area declarations made after June 20, 2002, and applies to all 
        tax increment financing districts, regardless of when the 
        request for certification was made. 
           Sec. 17.  Minnesota Statutes 2002, section 477A.015, is 
        amended to read: 
           477A.015 [PAYMENT DATES.] 
           The commissioner of revenue shall make the payments of 
        local government aid to affected taxing authorities in two 
        installments on July 20 and December 26 annually.  
           When the commissioner of public safety determines that a 
        local government has suffered financial hardship due to a 
        natural disaster, the commissioner of public safety shall notify 
        the commissioner of revenue, who shall make payments of 
        homestead and agricultural credit aid under section 273.1398 and 
        aids under sections 477A.011 to 477A.014, which are otherwise 
        due on December 26, as soon as is practical after the 
        determination is made but not before July 20. 
           The commissioner may pay all or part of the payment 
        payments of homestead and agricultural credit aid under section 
        273.1398 and aids under sections 477A.011 to 477A.014, which are 
        due on December 26 at any time after August 15 upon the request 
        of a city that if a local government requests such payment as 
        being necessary for meeting its cash flow needs. 
           [EFFECTIVE DATE.] This section is effective beginning with 
        aid payable in 2002. 
           Sec. 18.  [PROPERTY TAX ABATEMENTS; FLOOD PROPERTY.] 
           Subdivision 1.  [AUTHORIZATION.] 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 2002 as provided in this section.  
        The owner of the property is not required to apply for the 
        abatement. 
           Subd. 2.  [DEFINITIONS.] (a) As used in this section, the 
        terms defined in this subdivision have the meanings given them. 
           (b) "Qualified county" means a county located in the area 
        included in DR-1419. 
           (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. 
           Subd. 3.  [COUNTY ADMINISTRATION.] (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. 
           (b) By September 30, 2002, each qualifying county shall 
        notify the department of revenue of the amount of flood-related 
        market value loss in the county.  The department of revenue must 
        notify each county of its apportioned share of the reimbursement 
        for abatements as determined under subdivision 4 by October 7, 
        2002.  
           (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 2002 has been paid prior to the granting 
        of the abatement, the amount paid in excess of 50 percent must 
        be refunded. 
           (d) The county must grant any abatements under this section 
        by October 31, 2002, and must notify the department of revenue 
        of the total amount of abatements granted.  
           (e) The department of revenue must determine the amount of 
        and pay the reimbursements required under this section by 
        November 15, 2002. 
           Subd. 4.  [APPROPRIATION; APPORTIONMENT.] $1,000,000 is 
        appropriated from the general fund to the commissioner of 
        revenue to be apportioned among the qualified counties to 
        provide reimbursement for abatements granted for taxes under 
        this section.  Counties shall be paid reimbursements only for 
        property taxes imposed by the county and other local taxing 
        jurisdictions within the county that are actually abated.  The 
        total reimbursement, including the amount of the state tax 
        imposed under Minnesota Statutes, section 275.025, shall not 
        exceed each county's apportioned amount.  The apportionment 
        shall be based upon the amount of flood-related market value 
        loss in each county.  This appropriation is onetime. 
           Sec. 19.  [DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS 
        PROPERTY TAXES.] 
           (a) Notwithstanding Minnesota Statutes, section 279.01, 
        subdivision 1, a penalty shall not accrue if, because of the 
        2002 floods, a taxpayer is unable to pay the second half of the 
        payable 2002 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-1419.  To 
        qualify for this extended due date for the second half payment, 
        the taxpayer must have paid the first half of the payable 2002 
        taxes by May 16, 2002, and must pay the second half of the 
        payable 2002 taxes by May 15, 2003. 
           (b) If the second half of the payable 2002 property taxes 
        is paid after May 15, 2003, 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. 
           (c) The property taxpayer shall attach to the payment a 
        statement that the property is located in the area included in 
        DR-1419 and qualifies for an extension under this section. 
           Sec. 20.  [AGRICULTURAL DISASTER ASSISTANCE.] 
           Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
        subdivision apply to this section. 
           (b) "Acre" means an acre of effective agricultural use land 
        within a qualified county as reported by the farm service agency 
        on the summary acreage history report.  
           (c) "Commissioner" means the commissioner of agriculture. 
           (d) "Effective agricultural use land" means the land 
        suitable for growing an agricultural crop and excludes land 
        enrolled in the conservation reserve program established by 
        Minnesota Statutes, section 103F.515, or the water bank program 
        established by Minnesota Statutes, section 103F.601. 
           (e) "Farm" or "farm operation" means an agricultural 
        production operation with a unique farm number as reported on 
        the summary acreage history report by the farm service agency 
        that includes at least 40 acres of effective agricultural use 
        land in a qualified county. 
           (f) "Farm operator" means a person who is identified as the 
        operator of a farm on the summary acreage history report by the 
        farm service agency. 
           (g) "Farm service agency" means the United States Farm 
        Service Agency. 
           (h) "Farmer" or "farmer at risk" means a person who 
        produces an agricultural crop and is reported to the farm 
        service agency as bearing a percentage of the risk for the farm 
        operation. 
           (i) "Person" includes individuals, fiduciaries, estates, 
        trusts, partnerships, joint ventures, and corporations. 
           (j) "Qualified county" means a county in the area included 
        in DR-1419. 
           (k) "Acreage with substantial damage" means each acre of 
        each field or parcel on which the crop yield or crop quality is 
        estimated to be less than 50 percent of what it would be in a 
        normal year. 
           Subd. 2.  [PAYMENT TO FARMERS.] (a) A farm operator may 
        apply on a separate form for each farm operation to the 
        commissioner for payments as provided under this section.  The 
        payment must be made to each farmer at risk for a farm operation 
        and must equal the per-acre rate determined under paragraph (b), 
        multiplied by the number of acres with substantial damage 
        located in a qualified county, multiplied by the percentage of 
        the risk borne by that farmer for that farm operation.  Only 
        applications received by the commissioner on or before December 
        13, 2002, are eligible for payments under this section.  If 
        total payments to all farmers at risk for a single farm 
        operation would be for more than 1,400 acres, the payment to 
        each farmer at risk must be prorated so that the total payments 
        to all farmers at risk for that farm operation are limited to 
        1,400 acres.  No individual or married couple may receive total 
        payments under this section for more than 1,400 acres whether 
        individually, through the person's pro rata ownership share of 
        another eligible farming entity, or both. 
           (b) Not later than January 15, 2003, the commissioner shall 
        determine the total number of acres eligible for payment and 
        calculate the per-acre payment rate by dividing the money 
        appropriated for payments under this section by the number of 
        eligible acres represented by the applications, but not to 
        exceed $4 per acre. 
           (c) Applications must be based on information reported to 
        the farm service agency for crop year 2002.  The applications 
        must include the social security number or federal employer 
        identification number or a producer number assigned by the farm 
        service agency for each farmer and the farm service agency farm 
        number from the summary acreage history report. 
           (d) The commissioner may establish an audit procedure to 
        determine the accuracy of applications submitted under this 
        subdivision.  
           (e) If the commissioner of agriculture determines that 
        claims for payments under this subdivision are or were excessive 
        or were filed with fraudulent intent, the claim may be 
        disallowed in full.  If the claim has been paid, the 
        commissioner of agriculture shall notify the commissioner of 
        revenue of the relevant information, and the amount disallowed 
        may be recovered by assessment and collection under Minnesota 
        Statutes, chapters 270 and 289A.  The assessment must be made 
        within two years after a check is cashed, but if cashing a check 
        constitutes theft under Minnesota Statutes, section 609.52, or 
        forgery under Minnesota Statutes, section 609.631, the 
        assessment may be made at any time.  The assessment may be 
        appealed administratively and judicially. 
           Subd. 3.  [ADMINISTRATION.] The commissioner must prepare 
        application forms for the payment and ensure that they are 
        available in the qualified counties.  The form must require the 
        farm operator to certify that acreage for which the claim is 
        being made is acreage with substantial damage.  The commissioner 
        must make payments by January 31, 2003. 
           Sec. 21.  [USE OF NATIONAL EMPLOYMENT GRANT.] 
           To ensure efficient use of disaster funds, contractors 
        working on projects funded under this act should, to the extent 
        practicable, hire employees who are available through the 
        $2,500,000 grant from the United States Department of Labor to 
        the department of trade and economic development for assistance 
        for the area included in DR-1419. 
           Sec. 22.  [WAIVERS AUTHORIZED.] 
           Subdivision 1.  [FLOOD HAZARD MITIGATION GRANTS; DEPARTMENT 
        OF NATURAL RESOURCES.] The maximum grant award under Minnesota 
        Statutes, section 103F.161, subdivision 2, is waived for grants 
        for the area included in DR-1419. 
           Subd. 2.  [STATE EROSION, SEDIMENT, AND WATER QUALITY 
        CONTROL COST-SHARE PROGRAM; BOARD OF WATER AND SOIL 
        RESOURCES.] 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-1419.  The waiver applies to 
        contracts that have been approved but not completed before May 
        15, 2002, or to contracts that are funded in whole or in part by 
        state funds before May 15, 2002, to the extent that combined 
        federal and state funding does not exceed 100 percent. 
           Sec. 23.  [EFFECTIVE DATE.] 
           Except as otherwise specified, this act is effective the 
        day following final enactment. 
           Presented to the governor September 19, 2002 
           Signed by the governor September 20, 2002, 9:10 a.m.