HF 3873

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

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