HF3771

Purpose

• Establish a dedicated Disaster Assistance Contingency Account in the state’s Special Revenue Fund to support cost-sharing for federal disaster programs and to pay eligible disaster-related claims.

Main Provisions

• Creation and funding mechanism

  • Creates the Disaster Assistance Contingency Account in the state treasury (Special Revenue Fund).
  • Funds in this account are appropriated to the Commissioner of Public Safety to provide cost-share for:
  • Federal assistance for state public disaster needs under FEMA programs.
  • State public disaster assistance to eligible applicants under chapter 12B.
  • Federal assistance cost-share from the Federal Highway Administration Emergency Relief Program (under 23 U.S.C. §125).
  • Federal assistance cost-share from the USDA Natural Resources Conservation Service Emergency Watershed Protection Program (under 16 U.S.C. §§2203-2205).

• Nonfederal share requirements

  • For appropriations to cover nonfederal shares for state agencies, local governments, and utility cooperatives, the amount appropriated is 100% of the nonfederal share.
  • Money can be used to pay all or part of the nonfederal share for publicly owned capital improvement projects.
  • For appropriations to pay eligible claims under chapter 12B, the amount is the amount required to pay those claims as certified by the Commissioner of Public Safety.

• Reporting and budgeting

  • By January 15 (and 31) of each year, the Commissioner of Management and Budget must report to the chairs and ranking minority members of the House Ways and Means Committee and the Senate Finance Committee detailing state disaster assistance appropriations and expenditures under this subdivision for the previous calendar year.
  • The Governor’s budget proposal to the legislature must include recommended appropriations to the Disaster Assistance Contingency Account, informed by the Commissioner of Public Safety’s estimate of funds needed to:
  • Provide 100% of the nonfederal share for state agencies, local governments, and utility cooperatives expected to receive FEMA assistance in the next biennium.
  • Fully pay all eligible claims under chapter 12B.

• Lapse and availability of funds

  • Notwithstanding general lapse provisions in section 16A.28, funds appropriated or transferred to the Disaster Assistance Contingency Account do not lapse and remain available until expended.
  • Funds appropriated from the Disaster Assistance Contingency Account do not lapse and are available until expended.

Significant Changes to Law

• Amends Minnesota Statutes 2024 section 12.221, subdivision 6 to create the Disaster Assistance Contingency Account and authorize targeted cost-sharing for specified federal disaster programs.
• Requires 100% coverage of the nonfederal share for certain recipients (state agencies, local governments, and utility cooperatives) for eligible federal and disaster-related programs.
• Establishes an annual reporting requirement and a budgeting process linked to the Governor’s proposals, with input from the Commissioner of Public Safety.
• Removes lapse risk for funds in the contingency account and for funds drawn from it, ensuring availability until expended.

Notable Terms (Key Concepts Appearing in the Bill)

• Disaster Assistance Contingency Account
• Special Revenue Fund
• State treasury
• Nonfederal share
• Federal assistance
• FEMA (Federal Emergency Management Agency)
• FHWA Emergency Relief Program (23 U.S.C. §125)
• NRCS Emergency Watershed Protection Program (16 U.S.C. §§2203-2205)
• Chapter 12B (state public disaster assistance claims)
• Commissioner of Public Safety
• Commissioner of Management and Budget
• Governor’s budget proposal
• Capital improvement projects
• Eligible claims
• Lapse-free funds
• Notwithstanding (legal provision)

Relevant Terms - disaster assistance contingency account - nonfederal share - federal disaster assistance - FEMA - FHWA Emergency Relief Program - NRCS Emergency Watershed Protection Program - chapter 12B - public safety - management and budget - capital improvements - lapse (fund availability) - budget proposal - reporting requirements