Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2002, 1st Special Session
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.
Official Publication of the State of Minnesota
Revisor of Statutes