2005 Minnesota Statutes - 12.301 — Community disaster loans; governor\'s authority.

     12.301 Community disaster loans; governor's authority. 


    Whenever, at the request of the governor, the president has 
 declared a major disaster to exist in this state, the governor 
 is authorized to take the following actions: 


    (a) Upon the governor's determination that a political 
 subdivision of the state will suffer a substantial loss of tax 
 and other revenues from a major disaster and has demonstrated a 
 need for financial assistance to perform its governmental 
 functions, the governor may apply to the federal government, on 
 behalf of the political subdivision, for a loan, and receive and 
 disburse the proceeds of the approved loan to the applicant 
 political subdivision. 


    (b) The governor may determine the amount needed by an 
 applicant political subdivision to restore or resume its 
 governmental functions, and certify that amount to the federal 
 government.  No application amount may exceed 25 percent of the 
 annual operating budget of the applicant for the fiscal year in 
 which the major disaster occurs. 


    (c) The governor may recommend to the federal government, 
 based upon the governor's review, the cancellation of all or any 
 part of repayment when, in the first three full fiscal year 
 period following the major disaster, the revenues of the 
 political subdivision are insufficient to meet its operating 
 expenses, including additional disaster-related expenses of a 
 municipal operation character. 


    HIST: 1976 c 266 s 3; 1986 c 444; 1996 c 344 s 19