Hazard mitigation grant program established to support mitigation planning and mitigation projects that diminish potential effects of emergencies, report required, and money appropriated.

A bill for an act

relating to public safety; establishing hazard mitigation grant program to support

mitigation planning and mitigation projects that diminish potential effects of

emergencies; requiring a report; appropriating money; proposing coding for new

law in Minnesota Statutes, chapter 12B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

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[12B.20] HAZARD MITIGATION FUND; GRANTS.

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Subdivision 1.

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Definitions.

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(a) For purposes of this section, the following terms have

the meanings given.

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(b) "Eligible applicant" means a county, home rule charter or statutory city, town, school

district, special district, joint powers authority, or other political subdivision or local unit

of government in this state.

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(c) "Mitigation planning" means activities to develop, update, or implement a hazard

mitigation project or other process that meets the requirements of Code of Federal

Regulations, title 44, part 201, or successor provisions.

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(d) "Mitigation project" means a cost-effective project that reduces risk to life and

property from hazards, including projects that protect critical facilities and lifelines and

reduce future public and private costs.

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Subd. 2.

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Account created; purpose.

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(a) The hazard mitigation account is created in the

special revenue fund. The commissioner must administer the account.

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(b) Money in the account may be used to provide grants and technical assistance to

eligible applicants for mitigation planning and mitigation projects that diminish the potential

effects of emergencies through long-term risk reduction.

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(c) Money in the account may be used as the nonfederal share for federal hazard

mitigation assistance programs, including FEMA's Building Resilient Infrastructure and

Communities (BRIC) program and Hazard Mitigation Grant Program (HMGP) to the extent

permitted by federal law.

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(d) Money in the account consists of appropriations; gifts, grants, and donations; money

received from the federal government or other sources for hazard mitigation purposes; and

interest earnings.

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Subd. 3.

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Eligible activities.

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(a) The commissioner may award grants for:

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(1) mitigation planning activities, including development, updating, or implementation

of a local hazard mitigation plan; risk assessments; public engagement; and plan adoption;

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(2) project scoping, feasibility studies, and other activities that lead to a mitigation project

that can be implemented;

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(3) mitigation projects, including design, engineering, environmental and historic

preservation review, permitting, construction, acquisition, or other activities necessary to

complete a mitigation project; and

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(4) application development and other preaward costs necessary to apply for federal

hazard mitigation assistance.

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(b) Mitigation planning activities are eligible for funding through the program.

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Subd. 4.

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Application; annual cycle; local approval.

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(a) The commissioner must establish

an annual application process for grants under this section and may establish additional

application cycles to respond to disaster declarations or federal funding opportunities.

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(b) An application may be submitted by any department, board, commission, authority,

or other agency of an eligible applicant, but the application must be submitted on behalf of

the eligible applicant.

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(c) A mitigation project application must be identified through an official assessment

or mitigation planning process and must be consistent with and referenced in the applicant's

current hazard mitigation plan approved by FEMA under Code of Federal Regulations, title

44, part 201, or successor provisions, and all applicable requirements under chapters 103B

and 103D.

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(d) An application must include a resolution or other written action of the governing

body of the eligible applicant authorizing the application and the execution of required grant

agreements.

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(e) An eligible applicant that does not have a current FEMA-approved hazard mitigation

plan may apply for a grant for mitigation planning to develop or update a hazard mitigation

plan.

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Subd. 5.

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Eligible applicant's share.

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An eligible applicant's share of project costs incurred

must not be less than 25 percent. The substantiated value of donated materials, equipment,

services, and labor may be used as all or part of the eligible applicant's share of eligible

costs, subject to the following:

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(1) all items and sources of donation must be indicated on the application and any

supporting documentation submitted to the commissioner;

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(2) the rate for calculating the value of donated, nonprofessional labor is the prevailing

federal minimum wage;

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(3) the value of donated equipment may not exceed the highway equipment rates approved

by the commissioner of transportation;

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(4) the value of donated materials and professional services must conform to prevailing

rates and be established by invoice; and

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(5) the value of in-kind matching hours must be at the prevailing volunteer rate.

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Subd. 6.

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Priorities; selection criteria.

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(a) The commissioner must evaluate and prioritize

applications based on criteria that reflect the hazard mitigation principles used by federal

hazard mitigation assistance programs, including cost-effectiveness and long-term risk

reduction.

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(b) The commissioner must evaluate and prioritize flood-related applications on local

watershed management plans under section 103B.221 and identified capital improvement

program and standards schedules.

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(c) At a minimum, the commissioner must consider:

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(1) reduction of risk to safety, critical facilities, lifelines, and essential services;

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(2) the extent to which the proposed activity addresses repetitive loss or other

documented, recurring impacts;

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(3) feasibility, readiness, and the eligible applicant's capacity to complete the activity

within the grant period;

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(4) the extent to which the activity incorporates resilience measures, nature-based

solutions, or other strategies that provide multiple benefits;

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(5) benefits to communities or populations with higher vulnerability to disasters or

communities that have been historically underserved;

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(6) leveraging federal or other nonstate funding, including the BRIC program and HMGP;

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(7) long-term operation and maintenance sufficient to ensure that risk reduction is

sustained; and

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(8) leveraging funds from the flood hazard mitigation assistance grant program.

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Subd. 7.

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Technical assistance; federal coordination.

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(a) The commissioner must

provide technical assistance to eligible applicants to build local capability to identify hazards,

develop mitigation projects, and apply for federal hazard mitigation assistance.

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(b) The commissioner must coordinate the grant program under this section with the

state's hazard mitigation plan and may incorporate requirements and evaluation methods

used by the BRIC program and HMGP.

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(c) The commissioner must coordinate flood-related projects with local watershed

management plans and requirements under chapters 103B and 103D.

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(d) Following a state or federal disaster declaration affecting Minnesota, the commissioner

may establish a supplemental application cycle or adjust priorities to support mitigation

opportunities related to the declared disaster.

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Subd. 8.

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Grant agreements; oversight; reporting.

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(a) The commissioner must enter

into a grant agreement with each grantee. The agreement must specify the scope of work,

performance period, reporting requirements, and remedies for nonperformance.

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(b) Grantees must comply with applicable state and federal requirements, including

procurement, auditing, and record retention requirements. The commissioner may require

repayment of grant money not spent in accordance with the grant agreement.

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(c) By January 15 each year, the commissioner must submit a report to the chairs and

ranking minority members of the house of representatives Ways and Means Committee and

the senate Finance Committee summarizing awards and outcomes under this section.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 2.
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HAZARD MITIGATION GRANTS; APPROPRIATION.
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$35,000,000 in fiscal year 2027 is appropriated from the general fund to the commissioner

of public safety for hazard mitigation grants under Minnesota Statutes, section 12B.20. The

commissioner may use up to five percent of this appropriation for program administration

and statewide technical assistance. This appropriation is available until expended. The base

for this appropriation in each of fiscal years 2028 and 2029 is $35,000,000.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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