1.1                          A bill for an act 
  1.2             relating to tornado and other natural disaster relief; 
  1.3             providing for temporary waivers of certain programs 
  1.4             and other relief; appropriating money; amending 
  1.5             Minnesota Statutes 1997 Supplement, sections 41B.043, 
  1.6             subdivision 2a; and 168.16; proposing coding for new 
  1.7             law in Minnesota Statutes, chapters 12; and 41B. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9   Section 1.  [APPROPRIATIONS.] 
  1.10     The sums in the column under "APPROPRIATIONS" are 
  1.11  appropriated from the general fund to be spent for tornado 
  1.12  relief, as specified in this act, in the area designated under 
  1.13  Presidential Declaration of Major Disaster, DR1212, whether 
  1.14  included in the original declaration or added later by federal 
  1.15  government action.  The appropriations are available until June 
  1.16  30, 1999, unless otherwise specified.  If there is a shortage of 
  1.17  funds in any of the programs under section 2, 3, 4, or 5, unused 
  1.18  funds in any of the other programs under these sections may be 
  1.19  transferred by interagency agreement to cover the shortfall. 
  1.20                              SUMMARY 
  1.21  PUBLIC SAFETY                                    $    8,300,000
  1.22  HOUSING FINANCE AGENCY                                4,000,000
  1.23  TRADE AND ECONOMIC DEVELOPMENT                        5,150,000
  1.24  AGRICULTURE                                           4,000,000
  1.25  REVENUE                                                 500,000
  1.26  HUMAN SERVICES                                          650,000
  2.1   FINANCE                                               5,000,000
  2.2   TOTAL                                            $   27,600,000
  2.3                                                    APPROPRIATIONS 
  2.4                                                    $
  2.5   Sec. 2.  PUBLIC SAFETY                                          
  2.6   Subdivision 1.  To the commissioner 
  2.7   of public safety for the purposes of 
  2.8   this section                                          8,300,000
  2.9   Subd. 2.  Disaster Assistance Match                   8,000,000 
  2.10  For the state and local match of public 
  2.11  assistance disaster funds under 
  2.12  Minnesota Statutes, section 12.221.  
  2.13  This appropriation is available to fund 
  2.14  100 percent of the state and local 
  2.15  match obligations projects incurred 
  2.16  through the receipt of federal public 
  2.17  assistance for reported damages, in the 
  2.18  individual assistance program. 
  2.19  Subd. 3.  Complement Increase                           300,000 
  2.20  To increase the complement of the 
  2.21  division of emergency management by 
  2.22  four full-time equivalent professional 
  2.23  positions for the balance of the 
  2.24  biennium.  The authorization for the 
  2.25  increase in complement by four 
  2.26  full-time equivalent professional 
  2.27  positions expires June 30, 1999. 
  2.28  Sec. 3.  HOUSING FINANCE                                       
  2.29  Subdivision 1.  For transfer to the 
  2.30  housing development fund for the 
  2.31  programs specified in this section                    4,000,000
  2.32  Subd. 2.  Affordable Rental
  2.33  Investment Fund                                         500,000
  2.34  For the affordable rental investment 
  2.35  fund under Minnesota Statutes, section 
  2.36  462A.21, subdivision 8b, to be used for 
  2.37  rental housing.  Notwithstanding 
  2.38  Minnesota Statutes, section 462A.21, 
  2.39  subdivision 8b, assistance provided 
  2.40  from this appropriation for the 
  2.41  rehabilitation of existing rental 
  2.42  housing may be in the form of 
  2.43  forgivable loans.  In making forgivable 
  2.44  loans from this appropriation, the 
  2.45  agency shall determine the 
  2.46  circumstances, terms, and conditions 
  2.47  under which all or any portion of the 
  2.48  grant shall be repaid.  This 
  2.49  appropriation is available until 
  2.50  expended. 
  2.51  Subd. 3  Community  
  2.52  Rehabilitation Fund Program                           3,500,000
  2.53  For the community rehabilitation fund 
  2.54  program under Minnesota Statutes, 
  2.55  section 462A.206.  This appropriation 
  2.56  is available until spent. 
  3.1   Subd. 4  Transfers  
  3.2   Money appropriated under this section 
  3.3   may be transferred between the 
  3.4   affordable rental investment fund 
  3.5   account and the community 
  3.6   rehabilitation fund account.  
  3.7   Sec. 4.  TRADE AND ECONOMIC
  3.8   DEVELOPMENT                                                      
  3.9   Subdivision 1.  To the commissioner of 
  3.10  trade and economic development for purposes 
  3.11  of this section                                       5,150,000
  3.12  Subd. 2.  Minnesota Investment Fund                   4,000,000 
  3.13  To the Minnesota investment fund for 
  3.14  grants to local units of government for 
  3.15  locally administered operating loan 
  3.16  programs for businesses directly and 
  3.17  adversely affected by the tornadoes.  
  3.18  Loan criteria and requirements must be 
  3.19  locally established with approval by 
  3.20  the department.  For the purposes of 
  3.21  this appropriation, Minnesota Statutes, 
  3.22  sections 116J.8731, subdivisions 3, 4, 
  3.23  5, and 7, and 116J.991, are waived.  
  3.24  Businesses that receive grants or loans 
  3.25  from this appropriation shall set goals 
  3.26  for jobs retained and wages paid within 
  3.27  the area designated under Presidential 
  3.28  Declaration of Major Disaster, DR1212, 
  3.29  whether included in the original 
  3.30  declaration or added later by federal 
  3.31  government action. 
  3.32  Subd. 3.  Public Infrastructure                       1,000,000 
  3.33  For grants to local units of government 
  3.34  to assist with the cost of repair and 
  3.35  replacement of publicly owned 
  3.36  buildings; storm sewers, wastewater and 
  3.37  municipal utility service; drinking 
  3.38  water systems; and streets, bridges, 
  3.39  and other infrastructure. 
  3.40  Subd. 4.  Technical Assistance                          150,000 
  3.41  For grants to local units of government 
  3.42  for technical assistance for loan 
  3.43  programs. 
  3.44  Sec. 5.  AGRICULTURE                                  4,000,000
  3.45  To the rural finance authority for 
  3.46  department of agriculture loans under 
  3.47  Minnesota Statutes, chapter 41B, to 
  3.48  farmers for repairs to farm buildings 
  3.49  and for working capital operating loans.
  3.50  Sec. 6.  REVENUE                                        500,000
  3.51  To the commissioner of revenue to be 
  3.52  apportioned among the counties within 
  3.53  the area designated under Presidential 
  3.54  Declaration of Major Disaster, DR1212, 
  3.55  whether included in the original 
  3.56  declaration or added later by federal 
  3.57  government action to provide 
  3.58  reimbursement for abatements granted 
  4.1   for taxes payable in 1998 to properties 
  4.2   damaged in the March 29, 1998, 
  4.3   tornadoes.  The apportionment shall be 
  4.4   based upon the amount of 
  4.5   tornado-related market value loss in 
  4.6   each county.  Counties must be 
  4.7   reimbursed only for property taxes that 
  4.8   are actually abated, not to exceed each 
  4.9   county's apportioned amount.  
  4.10  Sec. 7.  HUMAN SERVICES
  4.11  Subdivision 1.  To the commissioner 
  4.12  of human services for purposes of this 
  4.13  section                                                 650,000
  4.14  Subd. 2.  Social Service Agencies -  
  4.15  Social Services                                         400,000
  4.16  For grants to counties and nonprofit 
  4.17  social service agencies for social 
  4.18  services and farm advocacy outreach.  
  4.19  Subd. 3.  Counties - Day Care                           250,000
  4.20  For grants to counties for after-school 
  4.21  and expanded day care services. 
  4.22  Sec. 8.  FINANCE                                      5,000,000 
  4.23  A contingency appropriation to the 
  4.24  commissioner of finance for allocations 
  4.25  to programs at the request of the 
  4.26  governor, for unanticipated needs to 
  4.27  aid disaster victims.  Before transfer 
  4.28  of funds to specific programs, the 
  4.29  commissioner must seek a recommendation 
  4.30  on the proposed spending from the 
  4.31  legislative commission on planning and 
  4.32  fiscal policy.  If no recommendation is 
  4.33  received by the commissioner from the 
  4.34  commission within ten days of notice, 
  4.35  the recommendation is considered to be 
  4.36  positive. 
  4.37     Sec. 9.  [TEMPORARY WAIVER OF FEES, ASSESSMENTS, OR TAXES.] 
  4.38     Notwithstanding any law to the contrary, for fiscal years 
  4.39  1998 and 1999, an agency, with the approval of the governor, may 
  4.40  waive fees that would otherwise be charged for agency services.  
  4.41  The waiver of fees must be confined to geographic areas within 
  4.42  counties included in the area designated under Presidential 
  4.43  Declaration of Major Disaster, DR1212, whether included in the 
  4.44  original declaration or added later by federal government action 
  4.45  and to the minimum periods of times necessary to deal with the 
  4.46  emergency situation.  The agency must promptly report the 
  4.47  reasons for and the impact of any suspended fees to the chairs 
  4.48  of the legislative committees that oversee the policy and 
  4.49  budgetary affairs of the agency.  This section expires January 
  5.1   15, 1999. 
  5.2      Sec. 10.  [EARLY PAYMENT OF STATE AIDS.] 
  5.3      Notwithstanding Minnesota Statutes, sections 273.1398, 
  5.4   subdivision 6, and 477A.015, the commissioner of revenue, in 
  5.5   consultation with the division of emergency management, shall 
  5.6   make payments of homestead and agricultural credit aid and local 
  5.7   government aid as provided in this section to all qualified 
  5.8   local units of government that the commissioner determines have 
  5.9   suffered financial hardship.  As used in this section, 
  5.10  "qualified local units of government" means counties, home rule 
  5.11  charter or statutory cities, and towns that suffered damage in 
  5.12  the tornadoes and storms of March 29, 1998. 
  5.13     Payment of the homestead and agricultural credit aid and 
  5.14  local government aid that would otherwise have been payable on 
  5.15  July 20, 1998, shall be made as soon as practicable after the 
  5.16  date of final enactment of this act.  
  5.17     Sec. 11.  [TORNADO DAMAGED SCHOOL RECONSTRUCTION.] 
  5.18     In order to expedite school reconstruction of school 
  5.19  buildings destroyed by the tornadoes of March 29, 1998, the 
  5.20  affected school districts may enter into construction contracts, 
  5.21  including but not limited to design-build, that the districts 
  5.22  determine to be in their best interests.  Construction of these 
  5.23  educational facilities is emergency construction and not subject 
  5.24  to competitive bid requirements of Minnesota Statutes, sections 
  5.25  123.37 and 471.345, or other law or charter or the requirements 
  5.26  of Minnesota Statutes, section 16B.335.  The department of 
  5.27  children, families, and learning shall notify the chairs of the 
  5.28  senate finance committees, the house ways and means committee, 
  5.29  and the house capital investment committee that the projects 
  5.30  have been approved under review and comment and necessary 
  5.31  contracts have been executed. 
  5.32     Sec. 12.  [SCHOOL FACILITY STORM DAMAGE RELATED 
  5.33  BETTERMENT.] 
  5.34     A district may make an additional levy for facility 
  5.35  betterment under this section.  To make this levy, a district 
  5.36  must: 
  6.1      (1) qualify under Minnesota Statutes, section 124.239, in 
  6.2   fiscal year 1998; and 
  6.3      (2) have had damage to an instructional facility in excess 
  6.4   of $1,000,000 related to tornadoes on March 29, 1998. 
  6.5      The levy must be directly related to the costs of the 
  6.6   betterment of the damaged facility and may only be for costs not 
  6.7   otherwise paid for by insurance or other proceeds.  The total 
  6.8   costs related to the levy may not exceed two percent of a 
  6.9   district's 1995 adjusted net tax capacity.  The project must be 
  6.10  approved under Minnesota Statutes, section 121.15, and be a part 
  6.11  of the plan under Minnesota Statutes, section 124.239.  The 
  6.12  district may either bond for the costs under Minnesota Statutes, 
  6.13  section 124.239, subdivision 3, or levy under Minnesota 
  6.14  Statutes, section 124.239, subdivision 5.  The levy may be 
  6.15  spread over more than one year.  The levy is not eligible for 
  6.16  state-aid payments under Minnesota Statutes, section 124.239, 
  6.17  subdivision 3a or 5a, 124.83, or 124.95, or any other aid 
  6.18  program.  A district must consult with and receive approval from 
  6.19  the city in which its administrative offices are located prior 
  6.20  to making this levy. 
  6.21     Sec. 13.  [SOLID WASTE MANAGEMENT TAX WAIVER.] 
  6.22     Notwithstanding any law to the contrary, the commissioner 
  6.23  of revenue may waive solid waste management taxes under 
  6.24  Minnesota Statutes, chapter 297H, for construction debris 
  6.25  generated from repair and demolition activities in the area 
  6.26  designated under Presidential Declaration of Major Disaster, 
  6.27  DR1212, whether included in the original declaration or added 
  6.28  later by federal government action due to tornado and other 
  6.29  weather damage on March 29, 1998, and disposed of in a waste 
  6.30  management facility designated by the commissioner of the 
  6.31  pollution control agency.  The commissioner of revenue's 
  6.32  authority under this section to waive the taxes expires for 
  6.33  waste transported to the designated facilities after March 31, 
  6.34  1999. 
  6.35     Sec. 14.  [WAITING WEEK WAIVER.] 
  6.36     The waiting week requirement under Minnesota Statutes, 
  7.1   section 268.08, subdivision 1, clause (3), does not apply to 
  7.2   persons who became unemployed and filed an application for 
  7.3   reemployment insurance benefits as a direct result of the March 
  7.4   29, 1998, tornado and resulting storm damage. 
  7.5      Sec. 15.  [WAIVER OF LIMITATION FOR FACILITY CHANGES.] 
  7.6      The limitation under Minnesota Statutes 1996, section 
  7.7   268.362, subdivision 1, paragraph (a), on the type of facilities 
  7.8   which may be rehabilitated, improved, or constructed as part of 
  7.9   a work experience component to provide education and work 
  7.10  experience to targeted youth is waived and shall include 
  7.11  low-income private residences, private businesses, municipal 
  7.12  parks, and other land areas in the area designated under 
  7.13  Presidential Declaration of Major Disaster, DR1212, whether 
  7.14  included in the original declaration or added later by federal 
  7.15  government action. 
  7.16     Sec. 16.  [12.331] [LOCAL ASSISTANCE BETWEEN POLITICAL 
  7.17  SUBDIVISIONS.] 
  7.18     Subdivision 1.  [AUTHORITY BETWEEN POLITICAL SUBDIVISIONS.] 
  7.19  When the public interest requires it because of an emergency, a 
  7.20  political subdivision may request the assistance of another 
  7.21  political subdivision.  Upon receiving such a request, a 
  7.22  political subdivision, called the "sending political 
  7.23  subdivision," may go to the assistance of the requesting 
  7.24  political subdivision, called the "receiving political 
  7.25  subdivision."  The receiving political subdivision may accept 
  7.26  and use the personnel, equipment, and supplies of the sending 
  7.27  political subdivision as agreed upon by both political 
  7.28  subdivisions. 
  7.29     Subd. 2.  [EFFECT.] Unless there is a written agreement 
  7.30  between the political subdivisions establishing the rules for 
  7.31  conducting these activities, the provisions of paragraphs (a) to 
  7.32  (d) shall apply while the political subdivisions are engaged in 
  7.33  the activities described in subdivision 1. 
  7.34     (a) For the purposes of worker's compensation insurance, 
  7.35  the employees, officers, and members of the sending political 
  7.36  subdivision have the same powers, duties, rights, privileges, 
  8.1   and immunities as if they were performing similar services in 
  8.2   the sending political subdivision and are considered to be 
  8.3   acting within the scope of and in the course of their regular 
  8.4   employment, as employees of the sending political subdivision. 
  8.5      (b) For the purposes of chapter 466, the employees and 
  8.6   officers of the sending political subdivision are deemed to be 
  8.7   employees, as defined in section 466.01, subdivision 6, of the 
  8.8   receiving political subdivision. 
  8.9      (c) The sending political subdivision shall be responsible 
  8.10  for any damages to its equipment. 
  8.11     (d) The receiving political subdivision shall reimburse the 
  8.12  sending political subdivision for the supplies used and the 
  8.13  compensation paid to the officers and members of the forces 
  8.14  furnished, during the time when the rendition of aid prevents 
  8.15  them from performing their duties in the sending political 
  8.16  subdivision, and for the actual travel and maintenance expenses 
  8.17  of the officers and members while so engaged.  A claim for loss, 
  8.18  damage, or expense in using equipment or supplies or for 
  8.19  additional expenses incurred in operating or maintaining them 
  8.20  must not be allowed unless within 90 days after the loss, 
  8.21  damage, or expense is sustained or incurred, an itemized notice 
  8.22  of it, verified by an officer or employee of the municipality 
  8.23  having knowledge of the facts, is filed with the clerk of the 
  8.24  receiving political subdivision. 
  8.25     Subd. 3.  [RETROACTIVE EFFECT.] Notwithstanding other laws 
  8.26  this section is effective retroactive to March 29, 1998. 
  8.27     Sec. 17.  [PROPERTY TAX ABATEMENTS; PROPERTY DAMAGED BY 
  8.28  TORNADO.] 
  8.29     Subdivision 1.  [AUTHORIZATION.] Notwithstanding the 
  8.30  requirements of Minnesota Statutes, section 375.192, the county 
  8.31  board of a qualified county may grant abatements of the full 
  8.32  amount of taxes on eligible property for taxes payable in 1998 
  8.33  as provided in this section.  The owner of the property is not 
  8.34  required to apply for the abatement. 
  8.35     Subd. 2.  [DEFINITIONS.] (a) As used in this section, the 
  8.36  terms defined in this subdivision have the meanings given them. 
  9.1      (b) "Qualified county" means any county in the area 
  9.2   designated under Presidential Declaration of Major Disaster, 
  9.3   DR1212, whether included in the original declaration or added 
  9.4   later by federal government action. 
  9.5      (c) "Eligible property" means a parcel of taxable property 
  9.6   located in a qualified county that contains a structure that has 
  9.7   been determined by the assessor to have lost over 50 percent of 
  9.8   its estimated market value due to wind damage.  In the case of 
  9.9   agricultural property, the abatement is limited to the taxes on 
  9.10  the parcel attributable to the value of the house, garage, and 
  9.11  surrounding one acre, if the house has lost over 50 percent of 
  9.12  its estimated market value, and the tax attributable to the 
  9.13  value of any farm buildings and structures that have lost over 
  9.14  50 percent of their estimated market value. 
  9.15     Subd. 3.  [ASSESSORS' DUTIES.] As soon as practicable, 
  9.16  local and county assessors in qualified counties shall notify 
  9.17  the county board and property owners of parcels of eligible 
  9.18  property. 
  9.19     Sec. 18.  [DISASTER AREA; DUE DATE EXTENDED FOR BUSINESS 
  9.20  PROPERTY TAXES.] 
  9.21     (a) Notwithstanding Minnesota Statutes, section 279.01, 
  9.22  subdivision 1, a penalty shall not accrue if (1) because of a 
  9.23  natural disaster, a taxpayer is unable to pay the first half of 
  9.24  the payable 1998 property taxes on class 3a or 3b property, 
  9.25  classified under Minnesota Statutes, section 273.13, subdivision 
  9.26  24, located in an area designated under Presidential Declaration 
  9.27  of Major Disaster, DR1212, whether included in the original 
  9.28  declaration or added later by federal government action and (2) 
  9.29  the taxpayer pays the first half of the payable 1998 taxes by 
  9.30  October 15, 1998. 
  9.31     (b) If the first one-half payment is paid after October 15, 
  9.32  1998, then all penalties that would have occurred on the due 
  9.33  date under Minnesota Statutes, section 279.01, subdivision 1, 
  9.34  shall be charged on the amount of the unpaid tax. 
  9.35     (c) The property taxpayer shall attach to the payment a 
  9.36  statement that the property is located in the disaster area and 
 10.1   qualified for an extension under this section.  
 10.2      Sec. 19.  [1997-1998 AVERAGE DAILY MEMBERSHIP.] 
 10.3      Notwithstanding Minnesota Statutes, section 124.17, the 
 10.4   1997-1998 average daily membership for a school building closed 
 10.5   due to tornado damage for part of the school year and reopened 
 10.6   before the end of the school year shall be the greater of the 
 10.7   amount that would have been computed if the school building had 
 10.8   not reopened or the amount computed using actual data for the 
 10.9   entire school year. 
 10.10     Sec. 20.  [FISCAL YEAR 1999 DECLINING PUPIL UNIT AID.] 
 10.11     For fiscal year 1999 only, a school district with one or 
 10.12  more school buildings closed during the 1997-1998 school year 
 10.13  due to tornado damage is eligible for declining pupil unit aid 
 10.14  equal to the greater of zero or the product of the general 
 10.15  education formula allowance for fiscal year 1999 times the 
 10.16  difference between the district's actual pupil units for the 
 10.17  1997-1998 school year and the district's actual pupil units for 
 10.18  the 1998-1999 school year. 
 10.19     Sec. 21.  [SCHOOL DISTRICT AVERAGE DAILY MEMBERSHIP.] 
 10.20     For fiscal year 1999, the commissioner of children, 
 10.21  families, and learning may adjust school district average daily 
 10.22  membership data calculated under Minnesota Statutes, section 
 10.23  124.17, for those school districts affected by tornado damage in 
 10.24  the spring of 1998 for students who have not yet returned to 
 10.25  their resident school districts because school facilities or 
 10.26  homes are not available for occupancy. 
 10.27     Sec. 22.  [TEMPORARY AUTHORITY TO SUSPEND RULES.] 
 10.28     Notwithstanding any law to the contrary, for fiscal years 
 10.29  1998 and 1999, an agency with the approval of the governor, may 
 10.30  temporarily suspend specific agency rules because of the effects 
 10.31  of the March 29, 1998 tornadoes.  The suspension of rules must 
 10.32  be confined to geographic areas affected within counties located 
 10.33  in the area designated under Presidential Declaration of Major 
 10.34  Disaster, DR1212, whether included in the original declaration 
 10.35  or added later by federal government action, and to the minimum 
 10.36  periods of time necessary to deal with the emergency situation.  
 11.1   The agency must promptly report the reasons for and the impact 
 11.2   of any suspended rules to the chairs of the legislative 
 11.3   committees that oversee the policy and budgetary affairs of the 
 11.4   agency and to the chairs of the legislative committees on 
 11.5   governmental operations.  This section expires January 15, 1999. 
 11.6      Sec. 23.  [FEDERAL FUNDS.] 
 11.7      State agencies may apply for any federal funds available 
 11.8   for tornado relief.  Notwithstanding Minnesota Statutes, section 
 11.9   3.3005, the commissioner of finance may submit the request to 
 11.10  receive and spend federal funds to the legislative advisory 
 11.11  commission required under Minnesota Statutes, section 3.3005, 
 11.12  any time after the application is made for those funds.  If a 
 11.13  recommendation is not made within five days, no further review 
 11.14  by the legislative advisory commission is required, and the 
 11.15  commissioner shall approve or disapprove the request.  If a 
 11.16  recommendation is made for further review, the commissioner may 
 11.17  proceed according to Minnesota Statutes, section 3.3005, 
 11.18  subdivision 5.  This section expires January 15, 1999. 
 11.19     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
 11.20  41B.043, subdivision 2a, is amended to read: 
 11.21     Subd. 2a.  [SNOW OR, FLOOD, OR OTHER NATURALLY CAUSED 
 11.22  DAMAGE.] A prospective borrower applying for a loan 
 11.23  participation through an eligible lender may refinance an 
 11.24  existing debt in order to repair or replace farm driveways, 
 11.25  drainage ditches and tile lines, grassed waterways, or 
 11.26  agricultural buildings damaged due to snow or, flooding, or 
 11.27  other weather-related causes. 
 11.28     Sec. 25.  [41B.047] [DISASTER RECOVERY LOAN PROGRAM.] 
 11.29     Subdivision 1.  [ESTABLISHMENT.] The authority shall 
 11.30  establish and implement a disaster recovery loan program to help 
 11.31  farmers clean up, repair, or replace farm structures and septic 
 11.32  and water systems, as well as replacement of seed, other crop 
 11.33  inputs, feed, and livestock. 
 11.34     Subd. 2.  [REVOLVING FUND.] There is established in the 
 11.35  state treasury a disaster recovery revolving fund which is 
 11.36  eligible to receive appropriations.  All repayments of financial 
 12.1   assistance granted under subdivision 1, including principal and 
 12.2   interest, must be deposited into this fund.  Interest earned on 
 12.3   money in the fund accrues to the fund, and money in the fund is 
 12.4   appropriated to the commissioner of agriculture for purposes of 
 12.5   the disaster recovery loan program, including costs incurred by 
 12.6   the authority to establish and administer the program. 
 12.7      Subd. 3.  [ELIGIBILITY.] To be eligible for this program, a 
 12.8   borrower must: 
 12.9      (1) be a resident of Minnesota or a domestic family farm 
 12.10  corporation or family farm partnership as defined in section 
 12.11  500.24, subdivision 2; 
 12.12     (2) certify that the damage or loss was sustained within a 
 12.13  county that was the subject of a state or federal disaster 
 12.14  declaration; 
 12.15     (3) demonstrate an ability to repay the loan; 
 12.16     (4) have a total net worth, including assets and 
 12.17  liabilities of the borrower's spouse and dependents, of less 
 12.18  than $400,000; and 
 12.19     (5) have received at least 50 percent of average annual 
 12.20  gross income from farming for the past three years. 
 12.21     Subd. 4.  [LOANS.] (a) The authority may participate in a 
 12.22  disaster recovery loan with an eligible lender to a farmer who 
 12.23  is eligible under subdivision 3.  Participation is limited to 45 
 12.24  percent of the principal amount of the loan or $50,000, 
 12.25  whichever is less.  The interest rates and repayment terms of 
 12.26  the authority's participation interest may differ from the 
 12.27  interest rates and repayment terms of the lender's retained 
 12.28  portion of the loan, but the authority's interest rate must not 
 12.29  exceed four percent. 
 12.30     (b) Standards for loan amortization shall be set by the 
 12.31  rural finance authority not to exceed ten years. 
 12.32     (c) Loans under this program must not be included in the 
 12.33  lifetime limitation calculated under section 41B.03, subdivision 
 12.34  1. 
 12.35     (d) Security for the disaster recovery loans must be a 
 12.36  personal note executed by the borrower and whatever other 
 13.1   security is required by the eligible lender or the authority. 
 13.2      (e) The authority may impose a reasonable nonrefundable 
 13.3   application fee for a disaster recovery loan.  The authority may 
 13.4   review the fee annually and make adjustments as necessary.  The 
 13.5   application fee is initially $50.  Application fees received by 
 13.6   the authority must be deposited in the disaster recovery 
 13.7   revolving fund. 
 13.8      (f) Disaster recovery loans under this program will be made 
 13.9   using money in the disaster recovery revolving fund established 
 13.10  under subdivision 2. 
 13.11     Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 13.12  168.16, is amended to read: 
 13.13     168.16 [REFUNDS; APPROPRIATION.] 
 13.14     After the tax upon any motor vehicle shall have been paid 
 13.15  for any year, refund shall be made for errors made in computing 
 13.16  the tax or fees and for the error on the part of an owner who 
 13.17  may in error have registered a motor vehicle that was not 
 13.18  before, nor at the time of registration, nor at any time 
 13.19  thereafter during the current past year, subject to tax in this 
 13.20  state as provided by section 168.012.  Unless otherwise provided 
 13.21  in this chapter, a claim for a refund of an overpayment of 
 13.22  registration tax must be filed within 3-1/2 years from the date 
 13.23  of payment.  The refundment shall be made from any fund in 
 13.24  possession of the registrar and shall be deducted from the 
 13.25  registrar's monthly report to the commissioner of finance.  A 
 13.26  detailed report of the refundment shall accompany the report.  
 13.27  The former owner of a transferred vehicle by an assignment in 
 13.28  writing endorsed upon the registration certificate and delivered 
 13.29  to the registrar within the time provided herein may sell and 
 13.30  assign to the new owner thereof the right to have the tax paid 
 13.31  by the former owner accredited to the owner who duly registers 
 13.32  the vehicle.  Any owner at the time of such occurrence, whose 
 13.33  vehicle is declared by an insurance company to be a total loss 
 13.34  due to flood or tornado damage, permanently destroyed, or sold 
 13.35  to the federal government, the state, or political subdivision 
 13.36  thereof, and any owner who sells a rental motor vehicle and 
 14.1   transfers the license plates issued to that motor vehicle under 
 14.2   section 168.15, subdivision 3, shall upon filing a verified 
 14.3   claim be entitled to a refund of the unused portion of the tax 
 14.4   paid upon the vehicle, computed as follows: 
 14.5      (1) if the vehicle is registered under the calendar year 
 14.6   system of registration, the refund is computed pro rata by the 
 14.7   month, 1/12 of the annual tax paid for each month of the year 
 14.8   remaining after the month in which the plates and certificate 
 14.9   were returned to the registrar; 
 14.10     (2) in the case of a vehicle registered under the monthly 
 14.11  series system of registration, the amount of the refund is equal 
 14.12  to the sum of the amounts of the license fee attributable to 
 14.13  those months remaining in the licensing period after the month 
 14.14  in which the plates and certificate were returned to the 
 14.15  registrar. 
 14.16     There is hereby appropriated to the persons entitled to a 
 14.17  refund, from the fund or account in the state treasury to which 
 14.18  the money was credited, an amount sufficient to make the refund 
 14.19  and payment.  Refunds under this section to licensed motor 
 14.20  vehicle lessors must be made annually in a manner the registrar 
 14.21  determines. 
 14.22     Sec. 27.  [TORNADO DAMAGES; STATE EMPLOYEE VACATION 
 14.23  DONATION.] 
 14.24     Subdivision 1.  [DONATION OF VACATION TIME.] A state 
 14.25  employee may donate up to 40 hours of accrued vacation time, in 
 14.26  addition to that donated under Minnesota Statutes, section 
 14.27  43A.181, in the biennium ending June 30, 1999, to the account 
 14.28  established by subdivision 2.  The employee must notify the 
 14.29  employee's agency head of the amount of accrued vacation time 
 14.30  the employee wishes to donate.  The agency head shall determine 
 14.31  the monetary value of the donated time, using the gross salary 
 14.32  of the employee making the donation.  The agency head shall 
 14.33  transfer that amount, less deductions for applicable taxes and 
 14.34  retirement contributions, to the account established by 
 14.35  subdivision 2.  A donation of accrued vacation time is 
 14.36  irrevocable once its monetary value has been transferred to the 
 15.1   account. 
 15.2      Subd. 2.  [TORNADO DISASTER BENEFIT ACCOUNT.] The tornado 
 15.3   disaster benefit account, consisting of money transferred under 
 15.4   subdivision 1, is administered by the commissioner of employee 
 15.5   relations.  Money in the account is appropriated to the 
 15.6   commissioner for purposes of this section. 
 15.7      Subd. 3.  [USE OF ACCOUNT ASSETS.] Expenditures from the 
 15.8   account established by subdivision 2 must be used to assist 
 15.9   needy families and individuals affected by the tornadoes 
 15.10  occurring on March 29, 1998.  The commissioner must consult with 
 15.11  charitable organizations and collective bargaining units in 
 15.12  targeting the money appropriately. 
 15.13     Sec. 28.  [EFFECTIVE DATE.] 
 15.14     Except as otherwise provided in this act, this act is 
 15.15  effective the day after its final enactment.