Purpose

• Create a new disaster response funding mechanism called the disaster assistance contingency account to help pay for disaster-related costs and cost-shares with federal programs.
• Align budgeting and reporting to ensure funding for both state and local disaster needs and to support handling eligible claims.

Main provisions

• Establishment: A disaster assistance contingency account is created in the state’s special revenue fund in the state treasury.
• Who uses the money: Funds are appropriated to the commissioner of public safety to provide cost-share for:
  • Federal disaster assistance (FEMA-related) under the specified statutory authority.
  • State public disaster assistance to eligible applicants under chapter 12B.
  • Federal aid for the Federal Highway Administration emergency relief program under 23 U.S.C. 125.
  • Federal aid for the USDA Natural Resources Conservation Service Emergency Watershed Protection Program under 16 U.S.C. 2203–2205.
• Nonfederal share coverage: For appropriations under the first item (the nonfederal share for these programs), the amount is 100 percent of the nonfederal share for state agencies, local governments, and utility cooperatives. This money can pay all or part of the nonfederal share for publicly owned capital improvement projects.
• Claims funding: For the claims-related portion (the second item, payments under chapter 12B), the amount is the amount needed to pay eligible claims as certified by the commissioner of public safety.
• Annual reporting: By January 31 (within the January 15–31 window) 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 about state disaster assistance appropriations and expenditures under this subdivision for the previous calendar year.
• Governor’s budget: The governor’s budget proposal must include recommended appropriations to the disaster assistance contingency account, based on the commissioner of public safety’s estimate of how much money is needed to provide 100 percent of the nonfederal share and to fully pay eligible claims under chapter 12B.
• Non-lapsing funds: Funds in the disaster assistance contingency account do not lapse and remain available until expended; funds transferred to or from the account are likewise non-lapsing.

Significant changes to existing law

• Adds a dedicated disaster assistance contingency account within the special revenue fund to centralize and manage disaster-related cost-sharing and claims funding.
• Establishes a clear 100 percent nonfederal-share coverage for certain state, local government, and utility projects.
• Creates mandatory annual reporting and budget guidance tied to the governor’s recommendations, increasing transparency and long-term planning for disaster costs.
• Ensures funds are non-lapsing, remaining available until they are used.

Implementation and oversight notes

• Key roles:
  • Commissioner of Public Safety handles cost-sharing for federal and state disaster programs and certifies claims for eligible payments.
  • Commissioner of Management and Budget produces annual reports and informs the governor’s budget proposal.
• Legal references involved:
  • FEMA-related federal assistance
  • FHWA emergency relief program under 23 U.S.C. 125
  • USDA NRCS Emergency Watershed Protection Program under 16 U.S.C. 2203–2205
  • Chapter 12B (state public disaster claims)
  • Section 16A (budget processes)

Relevant Terms - disaster assistance contingency account - special revenue fund - state treasury - nonfederal share - 100 percent nonfederal share - FEMA - Federal Highway Administration emergency relief program - 23 U.S.C. 125 - USDA NRCS Emergency Watershed Protection Program - 16 U.S.C. 2203–2205 - chapter 12B - commissioner of public safety - commissioner of management and budget - governor’s budget proposal - non-lapsing - publicly owned capital improvement projects - eligible claims - reporting window (January 15–31)