1.1 	A bill for an act
1.2 	relating to disaster relief; providing money to match and supplement federal 
1.3 	disaster assistance for property damaged by the floods of August 2007; providing 
1.4 	for temporary waivers of certain program requirements and other relief; 
1.5 	providing for flood enrollment impact aid to school districts; providing for 
1.6 	property tax abatements and reimbursements; modifying certain property tax and 
1.7 	aid provisions in designated counties; facilitating use of federal money to rebuild 
1.8 	I-35W bridge over the Mississippi River in the city of Minneapolis; providing 
1.9 	aid to local governments and individuals affected by floods, fires, drought, and 
1.10 	other disasters; authorizing sale of state bonds; appropriating money;amending 
1.11 	Minnesota Statutes 2006, sections 18E.04, subdivision 4; 72A.20, subdivision 
1.12 	12; 273.124, subdivision 14; proposing coding for new law in Minnesota 
1.13 	Statutes, chapter 273; repealing Minnesota Statutes 2006, section 273.123.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	ARTICLE 1
1.16 	SOUTHEAST MINNESOTA FLOOD RELIEF

1.17 	Section 1. FLOOD RELIEF APPROPRIATION SUMMARY.
 1.18 	The amounts shown in this section summarize direct appropriations made in this 
1.19 	article.

1.20	SUMMARY
	
1.21	Public Safety
	$
	19,500,000
	
1.22	Transportation
		51,000,000
	
1.23	Natural Resources
		6,700,000
	
1.24	Board of Water and Soil Resources
		4,000,000
	
1.25	Pollution Control Agency
		1,000,000
	
1.26	Employment and Economic Development
		45,000,000
	
1.27	Housing Finance Agency
		18,000,000
	
1.28	Minnesota Historical Society
		250,000
	
1.29	Education
		584,000
	
2.1	Human Services
		200,000
	
2.2	Revenue
		1,000,000
	
2.3	Bond Sale Expenses
		75,000

				
2.4	TOTAL
	$
	147,809,000

2.5	General Fund
		65,034,000
	
2.6	Petroleum Tank Cleanup Fund
		1,000,000
	
2.7	Trunk Highway Fund
		5,000,000
	
2.8	Bond Proceeds Fund
		30,255,000
	
2.9	Trunk Highway Fund Bond Proceeds Account
		20,020,000
	
2.10	State Transportation Fund
		26,000,000

				

2.11	Sec. 2. FLOOD RELIEF APPROPRIATIONS.
 	
2.12 		Subdivision 1.Appropriations. The sums in the column under 
2.13 	"APPROPRIATIONS" are appropriated from the bond proceeds fund to be spent to 
2.14 	acquire and to better publicly owned land and buildings and other public improvements of 
2.15 	a capital nature, and from other named funds, for relief as specified in this article from the 
2.16 	flooding that occurred on or after August 18, 2007, in the area of Southeast Minnesota 
2.17 	designated under Presidential Declaration of Major Disaster, DR-1717, whether included 
2.18 	in the original declaration or added later by federal government action, referred to in this 
2.19 	article as "the area included in DR-1717." The appropriations are for fiscal year 2008, 
2.20 	except that appropriations of bond proceeds or for capital improvements are available until 
2.21 	the project is completed or abandoned, subject to Minnesota Statutes, section 16A.642. If 
2.22 	there is a shortage of money for a program or project funded in this article, or in the money 
2.23 	available for state and local match under Minnesota Statutes, section 12.221, unused 
2.24 	general fund money appropriated for any other program or project in this article may be 
2.25 	transferred by an interagency agreement approved by the commissioner of finance to 
2.26 	cover the shortfall. The commissioner shall report the transfers to the chairs of the senate 
2.27 	finance and house of representatives ways and means committees. The appropriations in 
2.28 	this article are one time.
2.29 		Subd. 2.Repayment. (a) Notwithstanding Minnesota Statutes, section 161.04, 
2.30 	subdivision 1, a state agency that receives emergency federal money for a project funded 
2.31 	in this article must credit the federal money to the fund from which the agency received an 
2.32 	appropriation for that project, in an amount equal to the federal money, up to the amount of 
3.1 	the appropriation in this article. The commissioner of finance may approve other methods 
3.2 	for repaying state money with federal emergency money.
3.3 	(b) A local government that receives federal money for a project funded in this 
3.4 	article must repay to the state an amount equal to the federal money, up to the amount 
3.5 	of the state grant used for that project. The repayment must be credited to the fund from 
3.6 	which the local government received the appropriation for that project in this article.

								
3.7						APPROPRIATIONS

3.8	Sec. 3. PUBLIC SAFETY

3.9	Subdivision 1.Total Appropriation
 			$
	19,500,000
	
3.10 	The amounts that may be spent for each 
3.11 	purpose are specified in the following 
3.12 	subdivisions.

3.13	Subd. 2.State Match for Individual Assistance
 				2,000,000
	
3.14 	For the state match for federal disaster 
3.15 	assistance to individuals under Minnesota 
3.16 	Statutes, section 12.221. This appropriation 
3.17 	is from the general fund.

3.18	Subd. 3.State and Local Match 
 				15,000,000

3.19	Appropriations by Fund
	
3.20	General
		2,000,000
	
3.21	Bond Proceeds
		13,000,000
	
3.22 	For the state and local match for federal 
3.23 	disaster assistance to state agencies and 
3.24 	political subdivisions under Minnesota 
3.25 	Statutes, section 12.221.
3.26 	The appropriation from the bond proceeds 
3.27 	fund is available to fund 100 percent of the 
3.28 	state and local match obligations for publicly 
3.29 	owned capital improvement projects incurred 
3.30 	through the receipt of federal disaster 
3.31 	assistance.

3.32	Subd. 4.Grants for Debris Removal and Burial
 				2,500,000
	
4.1 	For grants to counties for costs related 
4.2 	to the burial and removal of debris from 
4.3 	residences and farms from the August 2007 
4.4 	flood damage. The commissioner may 
4.5 	require documentation of costs. Grants are 
4.6 	available for debris removal and burial costs 
4.7 	not covered by private insurance or federal 
4.8 	reimbursement. This appropriation is from 
4.9 	the general fund.

4.10	Sec. 4. TRANSPORTATION

4.11	Subdivision 1.Total Appropriation
 			$
	51,000,000
	
4.12 	The amounts that may be spent for each 
4.13 	purpose are specified in the following 
4.14 	subdivisions.

4.15
4.16	Subd. 2.Infrastructure Operation and 
Maintenance
 				5,000,000
	
4.17 	From the trunk highway fund.

4.18	Subd. 3.State Trunk Highways and Bridges
 				20,000,000
	
4.19 	From the bond proceeds account in the trunk 
4.20 	highway fund for the reconstruction and 
4.21 	repair of trunk highways and trunk highway 
4.22 	bridges that are located in the area included 
4.23 	in DR-1717 and that suffered flood-related 
4.24 	damage in 2007.

4.25
4.26	Subd. 4.Local Road and Bridge Rehabilitation 
and Replacement
 				26,000,000
	
4.27 	From the state transportation fund, as 
4.28 	provided in Minnesota Statutes, section 
4.29 	174.50, for grants to local governments 
4.30 	for capital costs related to rehabilitation 
4.31 	and replacement of local roads and bridges 
4.32 	damaged or destroyed by flooding in the area 
4.33 	included in DR-1717.
5.1 	A grantee must submit to the commissioner 
5.2 	of transportation final plans for each project 
5.3 	before grant money may be released for the 
5.4 	project. The commissioner shall determine 
5.5 	project priorities, review project plans in 
5.6 	light of those priorities, and, if necessary, 
5.7 	require changes to the plans to ensure the 
5.8 	most prudent use of limited state resources. 
5.9 	If a local government receives federal money 
5.10 	for a project funded under this section, the 
5.11 	local government must repay to the state, for 
5.12 	deposit in the state transportation fund, an 
5.13 	amount equal to the federal funding, up to 
5.14 	the amount of the state grant.
5.15 	For grants under this subdivision, the 
5.16 	requirements of Minnesota Statutes, section 
5.17 	174.50, subdivisions 5, 6, 6a, and 7, are 
5.18 	waived.

5.19	Sec. 5. NATURAL RESOURCES

5.20	Subdivision 1.Total Appropriation
 			$
	6,700,000
	
5.21 	The amounts that may be spent for each 
5.22 	purpose are specified in the following 
5.23 	subdivisions.

5.24	Subd. 2.Facility Damage
 				4,200,000
	
5.25 	From the bond proceeds fund to rehabilitate 
5.26 	and replace state facilities and restore natural 
5.27 	resources in the area included in DR-1717 
5.28 	that were damaged by the floods of August 
5.29 	2007.

5.30	Subd. 3.Flood Hazard Mitigation  Grants 
 				2,000,000
	
5.31 	From the bond proceeds fund for the state 
5.32 	share of flood hazard mitigation grants for 
5.33 	capital improvements to prevent or alleviate 
5.34 	flood damage under Minnesota Statutes, 
6.1 	section 103F.161, in the area included in 
6.2 	DR-1717.
6.3 	The commissioner shall determine project 
6.4 	priorities as appropriate, based on need. 
6.5 	This appropriation may be used to buy out 
6.6 	substantially damaged structures.
6.7 	To the extent that the cost of a project funded 
6.8 	by this appropriation in a given municipality 
6.9 	exceeds two percent of the median household 
6.10 	income in the municipality multiplied by the 
6.11 	number of households in the municipality, 
6.12 	this appropriation is also for the local share 
6.13 	of the project.

6.14	Subd. 4.Flood Response and Recovery
 				500,000
	
6.15 	For nonbondable expenditures in the area 
6.16 	included in DR-1717, including removal of 
6.17 	flood debris from streams. This appropriation 
6.18 	is from the general fund.

6.19
6.20	Sec. 6. BOARD OF WATER AND SOIL 
RESOURCES

6.21	Subdivision 1.Total appropriation
 			$
	4,000,000
	
6.22 	The amounts that may be spent for each 
6.23 	purpose are specified in the following 
6.24 	subdivisions.

6.25	Subd. 2.RIM Conservation Easements
 				1,000,000
	
6.26 	From the bond proceeds fund to acquire 
6.27 	easements from landowners on marginal 
6.28 	lands in the area included in DR-1717 that 
6.29 	were damaged by the floods of August 2007 
6.30 	in order to protect soil and water quality 
6.31 	and to support fish and wildlife habitat as 
6.32 	provided in Minnesota Statutes, section 
6.33 	103F.515.
7.1 	Up to 20 percent of this appropriation may be 
7.2 	used by the board to implement the program.

7.3
7.4	Subd. 3.Erosion, Sediment, and Water Quality 
Control Cost-Share Program
 				3,000,000
	
7.5 	From the general fund to install, repair, or 
7.6 	rehabilitate erosion and sediment control 
7.7 	projects in the area included in DR-1717 that 
7.8 	were damaged by the floods of August 2007 
7.9 	in order to protect soil and water quality and 
7.10 	to support fish and wildlife habitat.
7.11 	Up to 20 percent of this appropriation may be 
7.12 	used by the board to implement the program.

7.13	Sec. 7. POLLUTION CONTROL AGENCY
 			$
	1,000,000
	
7.14 	Notwithstanding Minnesota Statutes, 
7.15 	sections 115C.08, subdivision 4, and 
7.16 	115C.09, subdivision 3i, this appropriation is 
7.17 	from the petroleum tank release cleanup fund 
7.18 	for grants to safely rehabilitate buildings 
7.19 	if a portion of the rehabilitation cost is 
7.20 	attributable to petroleum contamination or to 
7.21 	buy out property substantially damaged by a 
7.22 	petroleum tank release.
7.23 	This appropriation is available until June 
7.24 	30, 2009. Any unused portion of the 
7.25 	appropriation must be returned to the 
7.26 	petroleum tank release cleanup fund.

7.27
7.28	Sec. 8. EMPLOYMENT AND ECONOMIC 
DEVELOPMENT

7.29	Subdivision 1.Total Appropriation
 			$
	45,000,000
	
7.30 	The amounts that may be spent for each 
7.31 	purpose are specified in the following 
7.32 	subdivisions.

7.33	Subd. 2.Minnesota Investment Fund
 				35,000,000
	
8.1 	For transfer to the Minnesota investment 
8.2 	fund for grants to local units of government 
8.3 	for locally administered grants or loan 
8.4 	programs for businesses and nonprofit 
8.5 	organizations directly and adversely affected 
8.6 	by the flood, including those that provide 
8.7 	residential, health care, child care, social, or 
8.8 	other services on behalf of the Department 
8.9 	of Human Services to residents of the area 
8.10 	included in DR-1717. Assistance under this 
8.11 	subdivision is not limited to businesses.
8.12 	Payments may be made for property damage 
8.13 	and cleanup, and to reimburse parties under 
8.14 	contract, provider agreement, or other 
8.15 	arrangement with the commissioner of 
8.16 	human services as of August 18, 2007, for 
8.17 	residential, health care, child care, social, 
8.18 	or other services provided on behalf of 
8.19 	the Department of Human Services to a 
8.20 	resident of the area included in DR-1717, 
8.21 	notwithstanding that:
8.22 	(1) the resident has been compelled by the 
8.23 	floods of August 2007 to relocate outside the 
8.24 	party's service area; or 
8.25 	(2) the party is unable to provide services 
8.26 	to the resident due to flood damage to the 
8.27 	party's place of business.
8.28 	Criteria and requirements must be locally 
8.29 	established with the approval of the 
8.30 	commissioner. For the purposes of this 
8.31 	appropriation, Minnesota Statutes, sections 
8.32 	116J.8731, subdivisions 3, 4, 5, and 7; 
8.33 	116J.993; 116J.994; and 116J.995, are 
8.34 	waived. Businesses that receive grants or 
8.35 	loans from this appropriation must set goals 
9.1 	for jobs retained and wages paid within the 
9.2 	area included in DR-1717.
9.3 	Before any grants under this subdivision are 
9.4 	awarded to a local unit of government, the 
9.5 	commissioner of employment and economic 
9.6 	development shall report to the chairs of the 
9.7 	senate finance and house of representatives 
9.8 	ways and means committees the criteria and 
9.9 	requirements to be used by local units of 
9.10 	government in the grant or loan programs 
9.11 	they will administer. This appropriation is 
9.12 	from the general fund.

9.13	Subd. 3.Public Infrastructure
 				10,000,000
	
9.14 	From the bond proceeds fund to the public 
9.15 	facilities authority for grants to local units 
9.16 	of government to assist with the cost of 
9.17 	rehabilitation and replacement of publicly 
9.18 	owned infrastructure, including storm 
9.19 	sewers, wastewater and municipal utility 
9.20 	service, and drinking water systems for any 
9.21 	costs incurred on or after August 18, 2007.
9.22 	For the purposes of this appropriation, 
9.23 	criteria, limitations, and repayment 
9.24 	requirements in Minnesota Statutes, sections 
9.25 	446A.07, 446A.072, and 446A.081, are 
9.26 	waived.

9.27	Sec. 9. HOUSING FINANCE

9.28	Subdivision 1.Total Appropriation
 			$
	18,000,000
	
9.29 	The appropriations in this section are from 
9.30 	the general fund, for transfer to the housing 
9.31 	development fund for the programs specified 
9.32 	in this section. The amounts that may be 
9.33 	spent for each purpose are specified in the 
9.34 	following subdivisions.

10.1
10.2	Subd. 2.Economic Development and Housing 
Challenge
 				 16,000,000
	
10.3 	For the economic development and housing 
10.4 	challenge program under Minnesota Statutes, 
10.5 	section 462A.33, for housing assistance in 
10.6 	the area included in DR-1717.
10.7 	For assistance under this subdivision, 
10.8 	the requirements of Minnesota Statutes, 
10.9 	section 462A.33, subdivisions 3 and 5, 
10.10 	and Minnesota Rules, part 4900.3632, are 
10.11 	waived.

10.12	Subd. 3.Capacity Building Grants
 				1,000,000
	
10.13 	For grants under Minnesota Statutes, section 
10.14 	462A.21, subdivision 3b, to local units of 
10.15 	government, including regional consortia, 
10.16 	in the area included in DR-1717 to assess 
10.17 	housing and related needs and to develop 
10.18 	and implement community and regional 
10.19 	plans to meet those needs and to provide 
10.20 	capacity to implement recovery plans. 
10.21 	This appropriation is also for the costs of 
10.22 	additional testing of wells where bacteria has 
10.23 	been found.

10.24	Subd. 4.Disaster Relief Contingency Fund
 				1,000,000
	
10.25 	To reimburse the disaster relief contingency 
10.26 	fund established under Minnesota Statutes, 
10.27 	section 462A.21, subdivision 29, for amounts 
10.28 	spent in response to the flooding of August 
10.29 	2007 in the area included in DR-1717.

10.30
10.31	Sec. 10. MINNESOTA HISTORICAL 
SOCIETY
 			$
	250,000
	
10.32 	For historic structure cleanup, repair, and 
10.33 	replacement costs related to the floods of 
11.1 	August 2007. This appropriation is from the 
11.2 	general fund.

11.3	Sec. 11. EDUCATION

11.4	Subdivision 1.Total Appropriation
 			$
	584,000
	
11.5 	The appropriations in this section are from 
11.6 	the general fund. The amounts that may be 
11.7 	spent for each purpose are specified in the 
11.8 	following subdivisions.

11.911.10
	Subd. 2.Independent School District No. 239, 
Rushford-Peterson

11.11	(a) Flood Enrollment Impact Aid
 				89,000
	
11.12 	The commissioner of education shall pay to 
11.13 	the school district flood enrollment impact 
11.14 	aid equal to $5,394 times the number of 
11.15 	pupils lost as a result of the floods of August 
11.16 	2007. The district must provide to the 
11.17 	commissioner of education documentation 
11.18 	of the number of pupils in average daily 
11.19 	membership lost as a result of the flood.

11.20	(b) Disaster Relief Facilities Grant
 				250,000
	
11.21 	For facilities cleanup, repair, and replacement 
11.22 	costs related to the floods of August 2007 not 
11.23 	covered by the district's insurance settlement 
11.24 	or through Federal Emergency Management 
11.25 	Agency payments. The commissioner of 
11.26 	education may request the school district 
11.27 	to provide necessary information before 
11.28 	awarding a grant.

11.29	(c) Pupil Transportation Aid
 				40,000
	
11.30 	For increased costs associated with 
11.31 	transporting students as a result of the floods 
11.32 	of August 2007.

12.1
12.2	Subd. 3.Independent School District No. 238, 
Mabel-Canton
 				50,000
	
12.3 	For facilities cleanup, repair, and replacement 
12.4 	costs related to the floods of August 2007 not 
12.5 	covered by the district's insurance settlement 
12.6 	or through Federal Emergency Management 
12.7 	Agency payments. The commissioner of 
12.8 	education may request the school district 
12.9 	to provide necessary information before 
12.10 	awarding a grant.

12.11
12.12	Subd. 4.Independent School District No. 294, 
Houston
 				60,000
	
12.13 	For facilities cleanup, repair, and replacement 
12.14 	costs related to the floods of August 2007 not 
12.15 	covered by the district's insurance settlement 
12.16 	or through Federal Emergency Management 
12.17 	Agency payments. The commissioner of 
12.18 	education may request the school district 
12.19 	to provide necessary information before 
12.20 	awarding a grant.

12.21
12.22	Subd. 5.Independent School District No. 857, 
Lewiston
 				5,000
	
12.23 	For increased costs associated with 
12.24 	transporting students as a result of the floods 
12.25 	of August 2007.

12.26
12.27	Subd. 6.Disaster Relief Facilities Grants to 
Other Districts
 				90,000
	
12.28 	For facilities cleanup, repair, and replacement 
12.29 	costs related to the floods of August 2007 not 
12.30 	covered by the district's insurance settlement 
12.31 	or through Federal Emergency Management 
12.32 	Agency payments. The commissioner of 
12.33 	education may request the school district 
12.34 	to provide necessary information before 
12.35 	awarding a grant. School districts not 
13.1 	included in subdivisions 2 to 5 must be given 
13.2 	priority in the allocation of this appropriation.

13.3	Sec. 12. HUMAN SERVICES
 			$
	200,000
	
13.4 	For the purposes of section 18.
13.5 	This appropriation is from the general fund.

13.6	Sec. 13. REVENUE
 			$
	1,000,000
	
13.7 	To reimburse counties for property tax 
13.8 	abatements on damaged property under 
13.9 	section 19.

13.10	Sec. 14. BOND SALE EXPENSES
 			$
	75,000
	
13.11 	To the commissioner of finance for bond sale 
13.12 	expenses under Minnesota Statutes, section 
13.13 	16A.641, subdivision 8.

13.14	Appropriations by Fund
	
13.15	Bond proceeds
		55,000
	
13.16	Trunk highway
		20,000

13.17 	Sec. 15. BOND SALE AUTHORIZATION.
 13.18 		Subdivision 1.Bond proceeds fund. To provide the money appropriated in this act 
13.19 	from the bond proceeds fund, the commissioner of finance shall sell and issue bonds of the 
13.20 	state in an amount up to $29,255,000 in the manner, upon the terms, and with the effect 
13.21 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
13.22 	Constitution, article XI, sections 4 to 7.
13.23 		Subd. 2.Trunk highway fund. To provide the money appropriated in this act from 
13.24 	the bond proceeds account in the trunk highway fund, the commissioner of finance shall 
13.25 	sell and issue bonds of the state in an amount up to $20,020,000 in the manner, upon the 
13.26 	terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52, 
13.27 	and by the Minnesota Constitution, article XIV, section 11, at the times and in the amount 
13.28 	requested by the commissioner of transportation. The proceeds of the bonds, except 
13.29 	accrued interest and any premium received on the sale of the bonds, must be credited to a 
13.30 	bond proceeds account in the trunk highway fund.
13.31 		Subd. 3.Transportation fund. To provide the money appropriated in this act from 
13.32 	the state transportation fund, the commissioner of finance shall sell and issue bonds of the 
14.1 	state in an amount up to $26,000,000 in the manner, upon the terms, and with the effect 
14.2 	prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota 
14.3 	Constitution, article XI, sections 4 to 7. The proceeds of the bonds, except accrued interest 
14.4 	and any premium received on the sale of the bonds, must be credited to a bond proceeds 
14.5 	account in the state transportation fund.

14.6 	Sec. 16. WAIVERS AUTHORIZED.
 14.7 		Subdivision 1.Flood hazard mitigation grants; Department of Natural 
14.8 	Resources. The maximum grant award under Minnesota Statutes, section 103F.161, 
14.9 	subdivision 2, is waived for grants for the area included in DR-1717.
14.10 		Subd. 2.State erosion, sediment, and water quality control cost-share program; 
14.11 	RIM easements; Board of Water and Soil Resources. (a) The Board of Water and Soil 
14.12 	Resources may waive the provisions of Minnesota Rules, chapter 8400, in the affected 
14.13 	geographic area included in DR-1717 on land damaged by the floods of August 2007. The 
14.14 	waiver applies to all existing and future contracts to address critical conservation problems 
14.15 	resulting from flooding that are funded in whole or in part with state money, to the extent 
14.16 	that combined federal and state funding does not exceed 100 percent. All existing state 
14.17 	cost-share grant agreements in the area included in DR-1717 are extended to June 30, 2009. 
14.18 	(b) The payment maximums for improvements to the land under Minnesota Statutes, 
14.19 	section 103F.515, subdivision 6, paragraph (a), clause (1), are waived for easements 
14.20 	acquired in the geographic area included in DR-1717 on land damaged by the floods of 
14.21 	August 2007.

14.22 	Sec. 17. USE OF NATIONAL EMERGENCY GRANT.
 14.23 	The expenditure of $3,000,000 of a federal National Emergency Grant is approved 
14.24 	and is appropriated to the commissioner of employment and economic development 
14.25 	for the purposes for which it was received.
14.26 	To ensure efficient use of disaster money, contractors working on projects funded 
14.27 	under this act should, to the extent practicable, hire employees who are available through 
14.28 	a grant, if any, from the United States Department of Labor to the Department of 
14.29 	Employment and Economic Development for assistance for the area included in DR-1717.

14.30 	Sec. 18. HUMAN SERVICES COSTS NOT OTHERWISE REIMBURSED.
 14.31 	The commissioner of human services may pay providers who were under contract, 
14.32 	provider agreement, or other arrangement with the commissioner of human services as of 
14.33 	August 18, 2007, for evacuation, transportation, or medical or remedial services provided 
15.1 	to vulnerable residents necessary to assure the health and safety of medical assistance 
15.2 	recipients during and up to 60 days following the floods and damage included in DR-1717, 
15.3 	to the extent that those services are not otherwise covered by federal disaster assistance, 
15.4 	private insurance, or other existing state or federal human services funding. This funding 
15.5 	shall be allocated at the discretion of the commissioner, and, to the extent approved by the 
15.6 	federal Centers for Medicare and Medicaid Services, some or all of the funding may be 
15.7 	distributed in the form of medical assistance payments.

15.8 	Sec. 19. PROPERTY TAX ABATEMENTS FOR DAMAGED PROPERTY; 
15.9 	REIMBURSEMENT.
 15.10 		Subdivision 1.Authorization. Notwithstanding the requirements of Minnesota 
15.11 	Statutes, section 375.192, the county board of a qualified county may grant abatements 
15.12 	of 50 percent of the taxes, including the tax imposed under Minnesota Statutes, section 
15.13 	275.025, but excluding special assessments, on eligible property for taxes payable in 
15.14 	2007 as provided in this section. The owner of the property is not required to apply for 
15.15 	the abatement.
15.16 		Subd. 2.Definitions. (a) As used in this section, the terms defined in this 
15.17 	subdivision have the meanings given them.
15.18 	(b) "Qualified county" means a county located in the area included in DR-1717 or a 
15.19 	county containing property damaged by the Ham Lake fire of 2007.
15.20 	(c) "Eligible property" means a parcel of taxable property located in a qualified 
15.21 	county that contains a structure that has been determined by the assessor to have lost 
15.22 	over 50 percent of its estimated market value due to flood or fire damage. In the case of 
15.23 	agricultural property, the abatement is limited to: (1) the taxes on the parcel attributable to 
15.24 	the value of the house, garage, and surrounding one acre, if the house has lost over 50 
15.25 	percent of its estimated market value, and (2) the tax attributable to the value of any farm 
15.26 	buildings and structures that have lost over 50 percent of their estimated market value.
15.27 		Subd. 3.County administration. (a) As soon as practicable, local and county 
15.28 	assessors in qualified counties shall notify the county board and property owners of parcels 
15.29 	of property eligible for the abatement under this section.
15.30 	(b) By October 31, 2007, each qualifying county shall notify the commissioner of 
15.31 	revenue of the amount of flood-related or fire-related market value loss in the county. The 
15.32 	commissioner must notify each county of its apportioned share of the reimbursement for 
15.33 	abatements as determined under subdivision 4 by November 7, 2007.
16.1 	(c) If the county board grants an abatement under this section to a property for which 
16.2 	over 50 percent of the total property tax payable in 2007 has been paid before the granting 
16.3 	of the abatement, the amount paid in excess of 50 percent must be refunded.
16.4 	(d) The county must grant any abatements under this section by November 30, 2007, 
16.5 	and must notify the commissioner of revenue of the total amount of abatements granted.
16.6 	(e) The commissioner of revenue must determine the amount of and pay the 
16.7 	reimbursements required under subdivision 4 by December 15, 2007.
16.8 		Subd. 4.Reimbursement apportioned. The commissioner of revenue shall 
16.9 	reimburse counties for property taxes abated under this section, up to the amount 
16.10 	appropriated for that purpose and apportioned to the qualified counties. The reimbursement 
16.11 	must be only for property taxes imposed by the county and other local taxing jurisdictions 
16.12 	within the county that are actually abated under this section. The commissioner shall 
16.13 	apportion the appropriation based on the amount of flood-related or fire-related market 
16.14 	value loss in each county. The total reimbursement, including the amount of the state 
16.15 	tax imposed under Minnesota Statutes, section 275.025, must not exceed each county's 
16.16 	apportioned amount.

16.17 	Sec. 20. 2007 FLOOD LOSS; CITY REPLACEMENT AID.
16.18 		Subdivision 1.Flood net tax capacity loss. The county assessor of each qualified 
16.19 	county shall compute a hypothetical city taxable net tax capacity for each city in the 
16.20 	county based upon market values for assessment year 2008 and the class rates that were in 
16.21 	effect for assessment year 2007. The amount, if any, by which the assessment year 2007 
16.22 	total taxable net tax capacity of the city exceeds the hypothetical taxable net tax capacity 
16.23 	of the city is the city's "flood net tax capacity loss." A county assessor of a qualified county 
16.24 	that contains a city that has a flood net tax capacity loss that exceeds five percent of its 
16.25 	assessment year 2007 total taxable net tax capacity shall certify the city's flood net tax 
16.26 	capacity loss to the commissioner of revenue by August 1, 2008.
16.27 	As used in this section, a "qualified county" is a county located within the area 
16.28 	included in DR-1717.
16.29 		Subd. 2.Flood loss aid. In 2009, each city with a flood net tax capacity loss equal 
16.30 	to or greater than five percent of its assessment year 2007 total taxable net tax capacity is 
16.31 	entitled to flood loss aid equal to the flood net tax capacity loss times the city's average 
16.32 	local tax rate for taxes payable in 2007.
16.33 		Subd. 3.Duties of commissioner. The commissioner of revenue shall determine 
16.34 	each city's aid amount under this section. The commissioner shall notify each eligible city 
17.1 	of its flood loss aid amount by August 15, 2008. The commissioner shall make payments 
17.2 	to each city after July 1, and before July 20, 2009.
17.3 		Subd. 4.Optional city expenditure. A city that receives aid under this section 
17.4 	may choose to expend a portion of the aid received for repair of county roads located 
17.5 	within the city.
17.6 		Subd. 5.Appropriation. The amount necessary to pay the aid amounts under this 
17.7 	section in fiscal year 2010, for calendar year 2009, is appropriated to the commissioner of 
17.8 	revenue from the general fund.

17.9 	Sec. 21. DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS 
17.10 	PROPERTY TAXES.
 17.11 	(a) Notwithstanding Minnesota Statutes, section 279.01, subdivision 1, a penalty 
17.12 	does not accrue if, because of the 2007 floods, a taxpayer is unable to pay the second 
17.13 	half of the payable 2007 property taxes on class 3a or 3b property, as classified under 
17.14 	Minnesota Statutes, section 273.13, subdivision 24, that is in a county in the area included 
17.15 	in DR-1717. To qualify for this extended due date for the second half payment, the 
17.16 	taxpayer must have paid the first half of the payable 2007 taxes by May 16, 2007, and 
17.17 	must pay the second half of the payable 2007 taxes by December 31, 2007.
17.18 	(b) If the second half of the payable 2007 property taxes is paid after December 31, 
17.19 	2007, then all penalties that would have occurred since the due date under Minnesota 
17.20 	Statutes, section 279.01, subdivision 1, must be charged on the amount of the unpaid tax.
17.21 	(c) The property taxpayer shall attach to the payment a statement that the property is 
17.22 	located in the area included in DR-1717 and qualifies for an extension under this section.

17.23 	Sec. 22. WAIVER OF TRUTH-IN-TAXATION REQUIREMENTS.
 17.24 	A county or local government in the area included in DR-1717 may petition the 
17.25 	commissioner in writing to waive some or all of the requirements of Minnesota Statutes, 
17.26 	section 275.065, to the extent that their performance or applicability is significantly 
17.27 	hindered by the disaster or emergency. The commissioner may grant the waiver for 
17.28 	truth-in-taxation for taxes payable in 2008.

17.29 	Sec. 23. Minnesota Statutes 2006, section 273.124, subdivision 14, is amended to read:
17.30 		Subd. 14.Agricultural homesteads; special provisions. (a) Real estate of less than 
17.31 	ten acres that is the homestead of its owner must be classified as class 2a under section 
17.32 	273.13, subdivision 23, paragraph (a), if:
18.1 	(1) the parcel on which the house is located is contiguous on at least two sides to (i) 
18.2 	agricultural land, (ii) land owned or administered by the United States Fish and Wildlife 
18.3 	Service, or (iii) land administered by the Department of Natural Resources on which in 
18.4 	lieu taxes are paid under sections 477A.11 to 477A.14;
18.5 	(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 
18.6 	20 acres;
18.7 	(3) the noncontiguous land is located not farther than four townships or cities, or a 
18.8 	combination of townships or cities from the homestead; and
18.9 	(4) the agricultural use value of the noncontiguous land and farm buildings is equal 
18.10 	to at least 50 percent of the market value of the house, garage, and one acre of land.
18.11 	Homesteads initially classified as class 2a under the provisions of this paragraph shall 
18.12 	remain classified as class 2a, irrespective of subsequent changes in the use of adjoining 
18.13 	properties, as long as the homestead remains under the same ownership, the owner owns a 
18.14 	noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use 
18.15 	value qualifies under clause (4). Homestead classification under this paragraph is limited 
18.16 	to property that qualified under this paragraph for the 1998 assessment.
18.17 	(b)(i) Agricultural property consisting of at least 40 acres shall be classified as the 
18.18 	owner's homestead, to the same extent as other agricultural homestead property, if all 
18.19 	of the following criteria are met:
18.20 	(1) the owner, the owner's spouse, the son or daughter of the owner or owner's 
18.21 	spouse, or the grandson or granddaughter of the owner or the owner's spouse, is actively 
18.22 	farming the agricultural property, either on the person's own behalf as an individual or 
18.23 	on behalf of a partnership operating a family farm, family farm corporation, joint family 
18.24 	farm venture, or limited liability company of which the person is a partner, shareholder, or 
18.25 	member;
18.26 	(2) both the owner of the agricultural property and the person who is actively 
18.27 	farming the agricultural property under clause (1), are Minnesota residents;
18.28 	(3) neither the owner nor the spouse of the owner claims another agricultural 
18.29 	homestead in Minnesota; and
18.30 	(4) neither the owner nor the person actively farming the property lives farther 
18.31 	than four townships or cities, or a combination of four townships or cities, from the 
18.32 	agricultural property, except that if the owner or the owner's spouse is required to live in 
18.33 	employer-provided housing, the owner or owner's spouse, whichever is actively farming 
18.34 	the agricultural property, may live more than four townships or cities, or combination of 
18.35 	four townships or cities from the agricultural property.
18.36 	The relationship under this paragraph may be either by blood or marriage.
19.1 	(ii) Real property held by a trustee under a trust is eligible for agricultural homestead 
19.2 	classification under this paragraph if the qualifications in clause (i) are met, except that 
19.3 	"owner" means the grantor of the trust.
19.4 	(iii) Property containing the residence of an owner who owns qualified property 
19.5 	under clause (i) shall be classified as part of the owner's agricultural homestead, if that 
19.6 	property is also used for noncommercial storage or drying of agricultural crops.
19.7 	(c) Noncontiguous land shall be included as part of a homestead under section 
19.8 	273.13, subdivision 23, paragraph (a), only if the homestead is classified as class 2a 
19.9 	and the detached land is located in the same township or city, or not farther than four 
19.10 	townships or cities or combination thereof from the homestead. Any taxpayer of these 
19.11 	noncontiguous lands must notify the county assessor that the noncontiguous land is part of 
19.12 	the taxpayer's homestead, and, if the homestead is located in another county, the taxpayer 
19.13 	must also notify the assessor of the other county.
19.14 	(d) Agricultural land used for purposes of a homestead and actively farmed by a 
19.15 	person holding a vested remainder interest in it must be classified as a homestead under 
19.16 	section 273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, 
19.17 	any other dwellings on the land used for purposes of a homestead by persons holding 
19.18 	vested remainder interests who are actively engaged in farming the property, and up to 
19.19 	one acre of the land surrounding each homestead and reasonably necessary for the use of 
19.20 	the dwelling as a home, must also be assessed class 2a.
19.21 	(e) Agricultural land and buildings that were class 2a homestead property under 
19.22 	section 273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain 
19.23 	classified as agricultural homesteads for subsequent assessments if:
19.24 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
19.25 	homestead as a result of the April 1997 floods;
19.26 	(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, 
19.27 	or Wilkin;
19.28 	(3) the agricultural land and buildings remain under the same ownership for the 
19.29 	current assessment year as existed for the 1997 assessment year and continue to be used 
19.30 	for agricultural purposes;
19.31 	(4) the dwelling occupied by the owner is located in Minnesota and is within 30 
19.32 	miles of one of the parcels of agricultural land that is owned by the taxpayer; and
19.33 	(5) the owner notifies the county assessor that the relocation was due to the 1997 
19.34 	floods, and the owner furnishes the assessor any information deemed necessary by the 
19.35 	assessor in verifying the change in dwelling. Further notifications to the assessor are not 
20.1 	required if the property continues to meet all the requirements in this paragraph and any 
20.2 	dwellings on the agricultural land remain uninhabited.
20.3 	(f) Agricultural land and buildings that were class 2a homestead property under 
20.4 	section 273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain 
20.5 	classified agricultural homesteads for subsequent assessments if:
20.6 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
20.7 	homestead as a result of damage caused by a March 29, 1998, tornado;
20.8 	(2) the property is located in the county of Blue Earth, Brown, Cottonwood, 
20.9 	LeSueur, Nicollet, Nobles, or Rice;
20.10 	(3) the agricultural land and buildings remain under the same ownership for the 
20.11 	current assessment year as existed for the 1998 assessment year;
20.12 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles 
20.13 	of one of the parcels of agricultural land that is owned by the taxpayer; and
20.14 	(5) the owner notifies the county assessor that the relocation was due to a March 29, 
20.15 	1998, tornado, and the owner furnishes the assessor any information deemed necessary by 
20.16 	the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the 
20.17 	owner must notify the assessor by December 1, 1998. Further notifications to the assessor 
20.18 	are not required if the property continues to meet all the requirements in this paragraph 
20.19 	and any dwellings on the agricultural land remain uninhabited.
20.20 	(g) Agricultural property consisting of at least 40 acres of a family farm corporation, 
20.21 	joint family farm venture, family farm limited liability company, or partnership operating 
20.22 	a family farm as described under subdivision 8 shall be classified homestead, to the same 
20.23 	extent as other agricultural homestead property, if all of the following criteria are met:
20.24 	(1) a shareholder, member, or partner of that entity is actively farming the 
20.25 	agricultural property;
20.26 	(2) that shareholder, member, or partner who is actively farming the agricultural 
20.27 	property is a Minnesota resident;
20.28 	(3) neither that shareholder, member, or partner, nor the spouse of that shareholder, 
20.29 	member, or partner claims another agricultural homestead in Minnesota; and
20.30 	(4) that shareholder, member, or partner does not live farther than four townships or 
20.31 	cities, or a combination of four townships or cities, from the agricultural property.
20.32 	Homestead treatment applies under this paragraph for property leased to a family 
20.33 	farm corporation, joint farm venture, limited liability company, or partnership operating a 
20.34 	family farm if legal title to the property is in the name of an individual who is a member, 
20.35 	shareholder, or partner in the entity.
21.1 	(h) To be eligible for the special agricultural homestead under this subdivision, an 
21.2 	initial full application must be submitted to the county assessor where the property is 
21.3 	located. Owners and the persons who are actively farming the property shall be required 
21.4 	to complete only a one-page abbreviated version of the application in each subsequent 
21.5 	year provided that none of the following items have changed since the initial application:
21.6 	(1) the day-to-day operation, administration, and financial risks remain the same;
21.7 	(2) the owners and the persons actively farming the property continue to live within 
21.8 	the four townships or city criteria and are Minnesota residents;
21.9 	(3) the same operator of the agricultural property is listed with the Farm Service 
21.10 	Agency;
21.11 	(4) a Schedule F or equivalent income tax form was filed for the most recent year;
21.12 	(5) the property's acreage is unchanged; and
21.13 	(6) none of the property's acres have been enrolled in a federal or state farm program 
21.14 	since the initial application.
21.15 	The owners and any persons who are actively farming the property must include 
21.16 	the appropriate Social Security numbers, and sign and date the application. If any of the 
21.17 	specified information has changed since the full application was filed, the owner must 
21.18 	notify the assessor, and must complete a new application to determine if the property 
21.19 	continues to qualify for the special agricultural homestead. The commissioner of revenue 
21.20 	shall prepare a standard reapplication form for use by the assessors.
21.21 	(i) Agricultural land and buildings that were class 2a homestead property under 
21.22 	section 273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain 
21.23 	classified agricultural homesteads for subsequent assessments if:
21.24 	(1) the property owner abandoned the homestead dwelling located on the agricultural 
21.25 	homestead as a result of damage caused by the August 2007 floods;
21.26 	(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, 
21.27 	Steele, Wabasha, or Winona;
21.28 	(3) the agricultural land and buildings remain under the same ownership for the 
21.29 	current assessment year as existed for the 2007 assessment year;
21.30 	(4) the dwelling occupied by the owner is located in this state and is within 50 miles 
21.31 	of one of the parcels of agricultural land that is owned by the taxpayer; and
21.32 	(5) the owner notifies the county assessor that the relocation was due to the August 
21.33 	2007 floods, and the owner furnishes the assessor any information deemed necessary by 
21.34 	the assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the 
21.35 	owner must notify the assessor by December 1, 2008. Further notifications to the assessor 
22.1 	are not required if the property continues to meet all the requirements in this paragraph 
22.2 	and any dwellings on the agricultural land remain uninhabited.

22.3 	Sec. 24. EFFECTIVE DATE.
 22.4 	Except as otherwise specified, this act is effective the day following final enactment.

22.5 	ARTICLE 2
22.6 	I-35W BRIDGE COLLAPSE

22.7 	Section 1. PUBLIC SAFETY.
 22.8 	$2,000,000 is appropriated from the general fund to the commissioner of public 
22.9 	safety for fiscal year 2008 for the state and local match for federal disaster assistance to 
22.10 	political subdivisions under Minnesota Statutes, section 12.221, for the I-35W bridge 
22.11 	collapse.
22.12 	This is a onetime appropriation.

22.13 	Sec. 2. TRANSPORTATION.
 22.14 	$53,237,000 in federal grants and aids for the I-35W bridge collapse is appropriated 
22.15 	to the commissioner of transportation for the purposes specified in the federal grant. This 
22.16 	appropriation is in addition to appropriations under Laws 2007, chapter 143, article 1, 
22.17 	section 3.

22.18 	Sec. 3. Minnesota Statutes 2006, section 72A.20, subdivision 12, is amended to read:
22.19 		Subd. 12.Unfair service. Causing or permitting with such frequency to indicate a 
22.20 	general business practice any unfair, deceptive, or fraudulent act concerning any claim or 
22.21 	complaint of an insured or claimant including, but not limited to, the following practices:
22.22 	(1) misrepresenting pertinent facts or insurance policy provisions relating to 
22.23 	coverages at issue;
22.24 	(2) failing to acknowledge and act reasonably promptly upon communications with 
22.25 	respect to claims arising under insurance policies;
22.26 	(3) failing to adopt and implement reasonable standards for the prompt investigation 
22.27 	of claims arising under insurance policies;
22.28 	(4) refusing to pay claims without conducting a reasonable investigation based 
22.29 	upon all available information;
22.30 	(5) failing to affirm or deny coverage of claims within a reasonable time after proof 
22.31 	of loss statements have been completed;
23.1 	(6) not attempting in good faith to effectuate prompt, fair, and equitable settlements 
23.2 	of claims in which liability has become reasonably clear;
23.3 	(7) compelling insureds to institute litigation to recover amounts due under an 
23.4 	insurance policy by offering substantially less than the amounts ultimately recovered in 
23.5 	actions brought by the insureds;
23.6 	(8) attempting to settle a claim for less than the amount to which reasonable persons 
23.7 	would have believed they were entitled by reference to written or printed advertising 
23.8 	material accompanying or made part of an application;
23.9 	(9) attempting to settle claims on the basis of an application which was altered 
23.10 	without notice to, or knowledge or consent of, the insured;
23.11 	(10) making claims payments to insureds or beneficiaries not accompanied by a 
23.12 	statement setting forth the coverage under which the payments are being made;
23.13 	(11) making known to insureds or claimants a policy of appealing from arbitration 
23.14 	awards in favor of insureds or claimants for the purpose of compelling them to accept 
23.15 	settlements or compromises less than the amount awarded in arbitration;
23.16 	(12) delaying the investigation or payment of claims by requiring an insured, 
23.17 	claimant, or the physician of either to submit a preliminary claim report and then requiring 
23.18 	the subsequent submission of formal proof of loss forms, both of which submissions 
23.19 	contain substantially the same information;
23.20 	(13) failing to promptly settle claims, where liability has become reasonably clear, 
23.21 	under one portion of the insurance policy coverage in order to influence settlements under 
23.22 	other portions of the insurance policy coverage;
23.23 	(14) failing to promptly provide a reasonable explanation of the basis in the 
23.24 	insurance policy in relation to the facts or applicable law for denial of a claim or for the 
23.25 	offer of a compromise settlement;
23.26 	(15) requiring an insured to provide information or documentation that is or would 
23.27 	be dated more than five years prior to or five years after the date of a fire loss, except for 
23.28 	proof of ownership of the damaged property;
23.29 	(16) stating or implying to an insured that filing a claim related to the I-35W bridge 
23.30 	collapse for no-fault motor vehicle insurance benefits would or may result in cancellation 
23.31 	or nonrenewal of the insured's policy or in a surcharge or other future increase in premium 
23.32 	rates, when any such consequence of filing the claim would be prohibited by law;
23.33 	(17) failing to promptly inform an insured who files a claim related to the I-35W 
23.34 	bridge collapse and described in section 65B.133, subdivision 5a, of the provisions of that 
23.35 	law, both orally and in writing.

24.1 	Sec. 4. EFFECTIVE DATE.
 24.2 	This article is effective the day following final enactment.

24.3 	ARTICLE 3
24.4 	OTHER STATEWIDE DISASTER RELIEF

24.5 	Section 1. AGRICULTURE.
 24.6 	$3,700,000 is appropriated from the general fund to the commissioner of agriculture 
24.7 	for flood and drought recovery assistance to affected agricultural producers. The 
24.8 	commissioner, in consultation with the chairs of the House and Senate agriculture finance 
24.9 	committees, shall develop eligibility criteria and may allocate funding among the 
24.10 	following areas according to need: livestock investment grants, organic certification 
24.11 	assistance, forage production loss offsets for livestock producers, no-interest disaster 
24.12 	recovery loans, water sampling and analysis related to the incident at a Rushford 
24.13 	agricultural chemical facility, and grants to the Board of  Trustees of the Minnesota State 
24.14 	Colleges and Universities for mental health counseling support to farm families and 
24.15 	business operators through farm business management programs. For the purposes 
24.16 	of flood relief, eligible producers must operate an agricultural operation in the area 
24.17 	included in DR-1717. For the purposes of drought relief, eligible producers must operate 
24.18 	an agricultural operation in counties classified all or in part as D3 by the U.S. Drought 
24.19 	Monitor during calendar year 2007.

24.20 	Sec. 2. CROOKSTON FLOOD AID.
 24.21 	$200,000 is appropriated from the general fund in each of the fiscal years 2008 
24.22 	and 2009 to the commissioner of revenue to be paid to the city of Crookston for flood 
24.23 	recovery and mitigation issues.
24.24 	This is a onetime appropriation.

24.25 	Sec. 3. BROWNS VALLEY FLOOD AID.
 24.26 	$100,000 is appropriated from the general fund in each of the fiscal years 2008 and 
24.27 	2009 to the commissioner of revenue to be paid to the city of Browns Valley to assist in 
24.28 	recovery from flooding that occurred March 14, 2007.
24.29 	This is a onetime appropriation.

24.30 	Sec. 4. GRAND MARAIS AND COOK COUNTY FIRE AID.
 24.31 	$500,000 is appropriated from the general fund in each of the fiscal years 2008 
24.32 	and 2009 to the commissioner of public safety to be paid to the city of Grand Marais 
25.1 	and to Cook County for costs related to the Ham Lake fire of 2007. The aid provided 
25.2 	in this section must be used for nonreimbursed, uninsured costs of repairing roads 
25.3 	and rights-of-way; sprinkler systems for structures; costs incurred by volunteer fire 
25.4 	departments, including replacement of portable sprinkler systems, and repair of vehicles; 
25.5 	debris removal and disposal costs; erosion control and water quality protection assistance 
25.6 	and coordination; repair, replacement, and improvement of communications equipment 
25.7 	and infrastructure for the city and county public safety and human services network and 
25.8 	emergency response centers. The total amount of the aid must be divided between the city 
25.9 	of Grand Marais and Cook County in proportion to their amounts of eligible costs.

25.10 	Sec. 5. Minnesota Statutes 2006, section 18E.04, subdivision 4, is amended to read:
25.11 		Subd. 4.Reimbursement payments. (a) The board shall pay a person that is 
25.12 	eligible for reimbursement or payment under subdivisions 1, 2, and 3 from the agricultural 
25.13 	chemical response and reimbursement account for 80 percent of the total reasonable and 
25.14 	necessary corrective action costs greater than $1,000 and less than or equal to $350,000.
25.15 	(b) A reimbursement or payment may not be made until the board has determined 
25.16 	that the costs are reasonable and are for a reimbursement of the costs that were actually 
25.17 	incurred.
25.18 	(c) The board may make periodic payments or reimbursements as corrective action 
25.19 	costs are incurred upon receipt of invoices for the corrective action costs.
25.20 	(d) Money in the agricultural chemical response and reimbursement account is 
25.21 	appropriated to the commissioner to make payments and reimbursements directed by 
25.22 	the board under this subdivision.
25.23 	(e) The board may not make reimbursement greater than the maximum allowed 
25.24 	under paragraph (a) for all incidents on a single site which:
25.25 	(1) were not reported at the time of release but were discovered and reported after 
25.26 	July 1, 1989; and
25.27 	(2) may have occurred prior to July 1, 1989, as determined by the commissioner.
25.28 	(f) The board may only reimburse an eligible person for separate incidents within a 
25.29 	single site if the commissioner determines that each incident is completely separate and 
25.30 	distinct in respect of location within the single site or time of occurrence.
25.31 	(g) Except for an emergency incident, the board may not reimburse or pay for more 
25.32 	than 60 percent of the corrective action costs of an eligible person or for an incident within 
25.33 	five years of a previous incident at a single site resulting from a site recontamination.
26.1 	(h) The deduction of $1,000 and 20 percent from the $350,000 remuneration may be 
26.2 	waived by the board if the incident took place on or after August 18, 2007, and was caused 
26.3 	by flooding associated with Presidential Declaration of Major Disaster DR-1717.

26.4 	Sec. 6. [273.1231] TAX RELIEF FOR DESTROYED PROPERTY; 
26.5 	DEFINITIONS.
26.6 		Subdivision 1.Applicability. For purposes of sections 273.1231 to 273.1235, the 
26.7 	following words, terms, and phrases have the meanings given them in this section unless 
26.8 	the language or context clearly indicates that a different meaning is intended.
26.9 		Subd. 2.Disaster or emergency. "Disaster or emergency" means:
26.10 	(1) a major disaster as determined by the president of the United States;
26.11 	(2) a natural disaster as determined by the secretary of agriculture;
26.12 	(3) a disaster as determined by the administrator of the small business administration; 
26.13 	or
26.14 	(4) a tornado, storm, flood, earthquake, landslide, explosion, fire or similar 
26.15 	catastrophe, as a result of which a local emergency is declared pursuant to section 12.29.
26.16 		Subd. 3.Disaster or emergency area. (a) "Disaster or emergency area" means a 
26.17 	geographic area for which:
26.18 	(1)(i) the president of the United States, the secretary of agriculture, or the 
26.19 	administrator of the small business administration has determined that a disaster exists 
26.20 	pursuant to federal law, or
26.21 	(ii) a local emergency has been declared pursuant to section 12.29; and
26.22 	(2) an application by the local unit of government requesting property tax relief under 
26.23 	this section has been received by the governor and approved by the executive council.
26.24 	(b) The executive council must not approve an application unless:
26.25 	(1) a completed disaster survey is included; and
26.26 	(2) within the boundaries of the applicant, (i) the average damage for the buildings 
26.27 	that are damaged is at least $5,000, and (ii) either at least 25 taxable buildings were 
26.28 	damaged, or the total dollar amount of damage to all taxable buildings equals or exceeds 
26.29 	one percent of the total taxable market value of buildings for the applicant as reported to 
26.30 	the commissioner of revenue under section 270C.89, subdivision 2, for the assessment in 
26.31 	the year prior to the year of the damage.
26.32 		Subd. 4.Homestead property. "Homestead property" means a homestead dwelling 
26.33 	that is classified as class 1a, 1b, 1c, or 2a property or a manufactured home or sectional 
26.34 	home used as a homestead and taxed pursuant to section 273.125, subdivision 8, paragraph 
26.35 	(b), (c), or (d).
27.1 		Subd. 5.Nonhomestead property. "Nonhomestead property" means any class of 
27.2 	taxable real or personal property except homestead property and property that is required 
27.3 	by law to be appraised for property tax purposes by the commissioner of revenue.
27.4 		Subd. 6.Net tax. "Net tax" means the market value and net tax capacity taxes 
27.5 	imposed on real and personal property under section 272.01, including the levy under 
27.6 	section 275.025, after the subtractions listed in section 273.1393, clauses (2) to (9). Net 
27.7 	tax excludes special assessments regardless of how computed.
27.8 		Subd. 7.Reassessed market value. "Reassessed market value" means the taxable 
27.9 	market value of the property established for the January 2 assessment in the year that the 
27.10 	disaster or destruction occurs, as adjusted by the county assessor or the commissioner of 
27.11 	revenue to reflect the loss in market value caused by the damage. As soon as practical, the 
27.12 	assessor or commissioner shall report the reassessed value to the county auditor.

27.13 	Sec. 7. [273.1232] TAX RELIEF FOR DESTROYED PROPERTY; GENERAL 
27.14 	PROVISIONS.
27.15 		Subdivision 1.Reassessments required. For the purposes of sections 273.1231 
27.16 	to 273.1235, the county assessor must reassess all damaged property in a disaster or 
27.17 	emergency area, and the county assessor or the commissioner of revenue as appropriate 
27.18 	shall reassess all property for which an application is submitted under section 273.1233 or 
27.19 	273.1235.
27.20 		Subd. 2.Local tax rates. Except as otherwise required by law, the county auditor 
27.21 	must compute local tax rates for taxes payable in the year following the year in which the 
27.22 	damage occurred using the values established for the January 2 assessment.

27.23 	Sec. 8. [273.1233] TAX RELIEF FOR DESTROYED PROPERTY; LOCAL 
27.24 	OPTION DISASTER ABATEMENT.
27.25 		Subdivision 1.Abatement authorization. (a) Notwithstanding section 375.192, 
27.26 	a county board may grant an abatement of net tax for homestead and nonhomestead 
27.27 	property under the provisions of this paragraph for taxes payable in the year in which 
27.28 	the destruction occurs if:
27.29 	(1) the owner submits a written application to the county assessor as soon as 
27.30 	practical after the damage has occurred;
27.31 	(2) the owner submits a written application to the county board as soon as practical 
27.32 	after the damage has occurred; and
28.1 	(3) the county assessor determines that 50 percent or more of a homestead dwelling 
28.2 	or other building has been (i) unintentionally or accidentally destroyed, or (ii) destroyed 
28.3 	by arson or vandalism by someone other than the owner.
28.4 	Abatements granted under this paragraph are not subject to approval by the 
28.5 	commissioner of revenue.
28.6 	(b) Notwithstanding sections 270C.86 and 375.192, the commissioner of revenue 
28.7 	may grant an abatement of net tax for property that the commissioner is required by law to 
28.8 	appraise for taxes payable in the year in which the destruction occurs if:
28.9 	(1) the owner submits a written application to the commissioner as soon as practical 
28.10 	after the damage has occurred;
28.11 	(2) the owner forwards a copy of the written application to the county board as soon 
28.12 	as practical after the damage has occurred; and
28.13 	(3) the commissioner determines that 50 percent or more of the property has been 
28.14 	(i) unintentionally or accidentally destroyed, or (ii) destroyed by arson or vandalism by 
28.15 	someone other than the owner.
28.16 	Abatements granted under this paragraph are not subject to approval by the county 
28.17 	board of the county where the property is located.
28.18 		Subd. 2.Abatement limits and allowances. (a) In the case of a property located 
28.19 	within a disaster or emergency area, the abatement under this section is limited to the 
28.20 	difference between (i) the net tax on the property computed using the market value of 
28.21 	the property established for the January 2 assessment in the year in which the damage 
28.22 	occurred, and (ii) the net tax computed using the reassessed value.
28.23 	(b) In the case of property not located in a disaster or emergency area, the abatement 
28.24 	under this section is limited to the result obtained by multiplying the difference in the net 
28.25 	tax on the property computed using the market value of the property established for the 
28.26 	January 2 assessment in the year in which the damage occurred, and the net tax computed 
28.27 	using the reassessed value, times a fraction, the numerator of which is the number of 
28.28 	months in the assessment year that the structure was not usable and the denominator 
28.29 	of which is 12. If a structure was usable for a fraction of a month, that month is not 
28.30 	included in the numerator.
28.31 	(c) If application is made after payment of all or a portion of the taxes being abated, 
28.32 	the portion already paid shall be refunded to the taxpayer by the county treasurer as soon 
28.33 	as practical.
28.34 		Subd. 3.Reimbursement, levy, and appropriation. (a) If the destruction occurs as 
28.35 	a result of a disaster or emergency and the property is located in a disaster or emergency 
28.36 	area, the county auditor shall certify the abatements granted under this section to the 
29.1 	commissioner of revenue for reimbursement to each taxing jurisdiction in which the 
29.2 	damaged property is located. The commissioner shall make the payments to the taxing 
29.3 	jurisdictions containing the property, other than school districts and the state, at the time 
29.4 	distributions are made under section 473H.10, subdivision 3. Reimbursements to school 
29.5 	districts shall be made as provided in section 273.1392. No reimbursement is to be paid 
29.6 	to the state treasury.
29.7 	(b) Local taxing authorities may levy in the following year the amount of 
29.8 	unreimbursed tax dollars lost as a result of the reductions granted pursuant to this 
29.9 	subdivision outside of any statutory restriction as to levy amount or tax rate.
29.10 	(c) There is annually appropriated from the general fund to the commissioner of 
29.11 	revenue an amount necessary to make the payments required by this section.

29.12 	Sec. 9. [273.1234] TAX RELIEF FOR DESTROYED PROPERTY; 
29.13 	HOMESTEAD AND DISASTER CREDITS.
29.14 		Subdivision 1.Credit provided. The county auditor shall compute a credit for taxes 
29.15 	payable in the year following the year in which the damage or destruction occurred for 
29.16 	each reassessed homestead within the county that is located within a disaster or emergency 
29.17 	area. The credit is equal to the difference in the net tax on the property computed using the 
29.18 	market value of the property established for the January 2 assessment in the year in which 
29.19 	the damage occurred and as computed using the reassessed value.
29.20 		Subd. 2.Credit reimbursements. The county auditor shall certify the credits 
29.21 	granted under this section to the commissioner of revenue for reimbursement to each 
29.22 	taxing jurisdiction in which the damaged property is located. The commissioner shall 
29.23 	make the payments to the taxing jurisdictions containing the property, other than 
29.24 	school districts and the state, at the time distributions are made under section 473H.10, 
29.25 	subdivision 3. Reimbursements to school districts shall be made as provided in section 
29.26 	273.1392. No reimbursement is to be paid to the state treasury.
29.27 		Subd. 3.Appropriation. There is annually appropriated from the general fund 
29.28 	to the commissioner of revenue an amount necessary to make the payments required 
29.29 	by this section.

29.30 	Sec. 10. [273.1235] TAX RELIEF FOR DESTROYED PROPERTY; LOCAL 
29.31 	OPTION DISASTER CREDITS.
29.32 		Subdivision 1.Credit provided. The county board may grant a credit for taxes 
29.33 	payable in the year following the year in which the damage or destruction occurred for: 
30.1 	(1) homestead properties that do not qualify for a credit under section 273.1234; and (2) 
30.2 	nonhomestead property meeting the requirements under section 273.1233.
30.3 		Subd. 2.Credit calculation. In the case of a property located within a disaster 
30.4 	or emergency area, the credit is equal to the difference between (i) the net tax on the 
30.5 	property computed using the market value of the property established for the January 2 
30.6 	assessment in the year in which the damage occurred, and (ii) the net tax computed using 
30.7 	the reassessed value. In the case of property not located in a disaster or emergency area, 
30.8 	the credit under this section is equal to the result obtained by multiplying the difference in 
30.9 	the net tax on the property computed using the market value of the property established 
30.10 	for the January 2 assessment in the year in which the damage occurred, and the net 
30.11 	tax computed using the reassessed value, times a fraction, the numerator of which is 
30.12 	the number of months in the assessment year that the structure was not usable and the 
30.13 	denominator of which is 12. If a structure was usable for a fraction of a month, that 
30.14 	month is not included in the numerator.
30.15 		Subd. 3.Credit reimbursements.  The county auditor shall certify the credits 
30.16 	granted under this section for property within a disaster or emergency area to the 
30.17 	commissioner of revenue for reimbursement to each taxing jurisdiction in which the 
30.18 	damaged property is located. The commissioner shall make the payments to the taxing 
30.19 	jurisdictions containing the property, other than school districts and the state, at the time 
30.20 	distributions are made under section 473H.10, subdivision 3. Reimbursements to school 
30.21 	districts shall be made as provided in section 273.1392. No reimbursement is to be paid 
30.22 	to the state treasury. No reimbursement is to be made for credits to property not located 
30.23 	in a disaster or emergency area.
30.24 		Subd. 4.Appropriation. There is annually appropriated from the general fund 
30.25 	to the commissioner of revenue an amount necessary to make the payments required 
30.26 	by this section.

30.27 	Sec. 11. REVISOR'S INSTRUCTION.
 30.28 	In the next edition of Minnesota Statutes, the Revisor of Statutes shall replace the 
30.29 	references to section 273.123 in sections 273.11, 273.1392, and 273.1393 with references 
30.30 	to sections 273.1231 to 273.1235.

30.31 	Sec. 12.  REPEALER.
 30.32 	Minnesota Statutes 2006, section 273.123, is repealed.

30.33 	Sec. 13. EFFECTIVE DATE.
 31.1 	Sections 1 to 5 and 11 are effective the day following final enactment. Sections 6 to 
31.2 	10 and 12 are effective (1) beginning for taxes payable in 2008 for all properties, (2) for 
31.3 	taxes payable in 2007 and thereafter for property damaged on or after the day following 
31.4 	final enactment, and (3) beginning for taxes payable in 2006 for property destroyed by 
31.5 	arson or vandalism in calendar year 2006 and thereafter.