HF 2296

as introduced - 89th Legislature (2015 - 2016) Posted on 05/04/2015 03:00pm

A bill for an act
relating to state government; modifying disaster recovery loan program for
farmers; appropriating money for avian influenza response activities; authorizing
transfers and payments; amending Minnesota Statutes 2014, section 41B.047,
subdivisions 1, 3, 4.

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

Section 1.

Minnesota Statutes 2014, section 41B.047, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

The authority shall establish and implement a
disaster recovery loan program to help farmers:

(1) clean up, repair, or replace farm structures and septic and water systems, as well
as replace seed, other crop inputs, feed, and livestock, when damaged by high winds,
hail, tornado, or flood; deleted text begin or
deleted text end

(2) purchase watering systems, irrigation systems, and other drought mitigation
systems and practices when drought is the cause of the purchase deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) replace flocks, make building improvements, or cover loss of revenue when the
loss or damage is due to the confirmed presence of the highly pathogenic H5N2 avian
influenza in a commercial poultry flock in Minnesota.
new text end

Sec. 2.

Minnesota Statutes 2014, section 41B.047, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

To be eligible for this program, a borrower must:

(1) meet the requirements of section 41B.03, subdivision 1;

(2) certify that the damage or loss was sustained within a county that was the subject
of new text begin (i) new text end a state or federal disaster declaration new text begin or (ii) a peacetime emergency declaration
made by the governor under section 12.31 new text end ;

(3) demonstrate an ability to repay the loan;

(4) have a total net worth, including assets and liabilities of the borrower's spouse
and dependents, of less than $660,000 in 2004 and an amount in subsequent years which
is adjusted for inflation by multiplying that amount by the cumulative inflation rate as
determined by the Consumer Price Index; and

(5) have received at least 50 percent of average annual gross income from farming
for the past three years.

Sec. 3.

Minnesota Statutes 2014, section 41B.047, subdivision 4, is amended to read:

Subd. 4.

Loans.

(a) The authority may participate in a disaster recovery loan with
an eligible lender to a farmer who is eligible under subdivision 3. Participation is limited
to 45 percent of the principal amount of the loan or deleted text begin $50,000 deleted text end new text begin $200,000 new text end , whichever is less.
The interest rates and repayment terms of the authority's participation interest may differ
from the interest rates and repayment terms of the lender's retained portion of the loan, but
the authority's interest rate must not exceed four percent.

(b) Standards for loan amortization shall be set by the Rural Finance Authority
not to exceed ten years.

(c) Security for the disaster recovery loans must be a personal note executed by the
borrower and whatever other security is required by the eligible lender or the authority.

(d) The authority may impose a reasonable nonrefundable application fee for a
disaster recovery loan. The authority may review the fee annually and make adjustments as
necessary. The application fee is initially $50. Application fees received by the authority
must be deposited in the revolving loan account established under section 41B.06.

(e) Disaster recovery loans under this program will be made using money in the
revolving loan account established under section 41B.06.

(f) Repayments of financial assistance under this section, including principal and
interest, must be deposited into the revolving loan account established under section
41B.06.

Sec. 4. new text begin AVIAN INFLUENZA RESPONSE ACTIVITIES; APPROPRIATIONS.
new text end

new text begin (a) $3,619,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of agriculture for avian influenza emergency response activities. This is
a onetime appropriation and is available until expended.
new text end

new text begin (b) $1,853,000 is appropriated from the general fund in fiscal year 2015 to the Board
of Animal Health for avian influenza emergency response activities. This is a onetime
appropriation and is available until expended.
new text end

new text begin (c) $103,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of health for avian influenza emergency response activities. This is a
onetime appropriation and is available until expended.
new text end

new text begin (d) $350,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of natural resources for sampling wild animals to detect and monitor the
avian influenza virus. This is a onetime appropriation and is available until expended.
new text end

new text begin (e) $544,000 is appropriated from the general fund in fiscal year 2015 to the
commissioner of public safety to operate the State Emergency Operation Center in
coordination with the statewide avian influenza response activities. Appropriations under
this paragraph may also be used to support a staff person at the state's agricultural incident
command post in Willmar. This is a onetime appropriation and is available until expended.
new text end

new text begin (f) The commissioner of management and budget may transfer unexpended balances
from the appropriations in this section to any state agency for operating expenses related
to avian influenza emergency response activities. The commissioner of management and
budget must report each transfer to the chairs and ranking minority members of the senate
Committee on Finance and the house of representatives Committee on Ways and Means.
new text end

Sec. 5. new text begin RURAL FINANCE AUTHORITY; APPROPRIATION.
new text end

new text begin $10,000,000 is appropriated in fiscal year 2015 from the general fund to the
commissioner of agriculture for transfer to the rural finance authority revolving loan
account under Minnesota Statutes, section 41B.06, for the purposes of disaster recovery
loans under Minnesota Statutes, section 41B.047.
new text end

Sec. 6. new text begin CONTINGENT ACCOUNTS.
new text end

new text begin The commissioner of management and budget may transfer available funds in the
general fund contingent account to any state agency for operating expenses relating to avian
influenza emergency response activities. Before making a transfer under this section, the
commissioner must provide notice of the transfer to the Legislative Advisory Commission
under Minnesota Statutes, section 3.30. The commissioner shall report to the Legislative
Advisory Commissioner on transfers made under this section by January 15, 2016.
new text end

Sec. 7. new text begin DISASTER CONTINGENCY ACCOUNT FOR AVIAN INFLUENZA.
new text end

new text begin Notwithstanding Minnesota Statutes, section 12.221, subdivision 6, for fiscal years
2016 and 2017 only, the disaster contingency account, under Minnesota Statutes, section
12.221, subdivision 6, may be used to pay for the costs of eligible avian influenza
emergency response activities. By January 15, 2018, the commissioner of management
and budget must report to the chairs and ranking minority members of the senate Finance
Committee and the house Committee on Ways and Means on any amount used for avian
influenza emergency response activities under this section.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end