SF 362

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the military; creating a program that
provides interest-free loans to certain members of the
Minnesota National Guard or other military reserve
units called to federal active service and deployed
outside of the United States; appropriating money;
amending Minnesota Statutes 2004, section 192.501, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 192.501, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Interest-free loan for foreign deployment. new text end

new text begin (a)
The adjutant general shall establish a program to provide an
interest-free loan from the state in the amount of up to $2,000
for each month of deployment described in paragraph (b), clause
(1), to each eligible soldier within the limitations of this
subdivision.
new text end

new text begin (b) Eligibility is limited to a member of the Minnesota
National Guard or other reserve components of the armed forces
of the United States who:
new text end

new text begin (1) engaged in a deployment under federal active service as
defined in section 190.05, subdivision 5c, for at least 90
consecutive days to a location outside of the United States;
new text end

new text begin (2) is serving satisfactorily as defined by the adjutant
general or was honorably discharged following completion of the
deployment;
new text end

new text begin (3) submits an application under the procedures established
by the adjutant general within eight months of completion of the
deployment; and
new text end

new text begin (4) was a resident of Minnesota when the deployment began.
new text end

new text begin In addition, if the eligible member is killed during the
overseas deployment, the member's surviving spouse is eligible
for an interest-free loan under this subdivision.
new text end

new text begin The adjutant general may adopt rules to provide additional
eligibility criteria for the loan and repayment terms for the
loan.
new text end

new text begin (c) The maximum amount of a loan under this subdivision is
$24,000.
new text end

new text begin (d) Loans made under this subdivision must be repaid within
20 years of the date of the origin of the loan. Repayments
shall be deposited to the general fund.
new text end

new text begin (e) The adjutant general may impose a reasonable,
nonrefundable application fee for each loan application and an
origination fee to pay the costs of issuing and servicing the
loan. The application fees shall be initially set at $50 and
the origination fee shall be initially set at one percent of the
loan. The adjutant general may adjust the fees by rule. The
fees must be deposited in the state treasury and credited to an
account in the special revenue fund. Money in the account is
appropriated to the adjutant general for administrative expenses
of the loan program under this subdivision.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the
adjutant general for loans under section 1. This appropriation
is available until spent.
new text end