SF 47

1st Engrossment - 91st Legislature, 2020 1st Special Session (2019 - 2020) Posted on 06/20/2020 09:50am

A bill for an act
relating to local government aid; providing aid and reimbursements to counties,
cities, and towns to fund expenses related to COVID-19; appropriating money
from the coronavirus relief federal fund.

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

Section 1. new text begin CORONAVIRUS RELIEF FUND; LOCAL GOVERNMENT
DISTRIBUTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms in this
subdivision have the meanings given them.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "City" means a statutory or home rule charter city.
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new text begin (d) "Eligible county" means a Minnesota county with a population less than 500,000.
new text end

new text begin (e) "Eligible city" means a city with a population of 200 or more, or an organized town
with a population of 5,000 or more.
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new text begin (f) "Eligible town" means an organized town with a population more than 199 but less
than 5,000.
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new text begin (g) "Emergency financial assistance" means assistance to individuals and families directly
impacted by a loss of income due to COVID-19. Emergency financial assistance includes
but is not limited to amounts used to help pay overdue rent or mortgage to prevent eviction
or foreclosure or unexpected funeral costs.
new text end

new text begin (h) "Economic support" means assistance to small businesses with costs of business
interruptions caused by required closures due to COVID-19. Economic support includes
but is not limited to assistance to businesses that close voluntarily to promote social distancing
guidelines and businesses impacted by decreased customer demand as a result of the
COVID-19 health emergency.
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new text begin (i) "Home county" for a city or town means the county where the administrative offices
of the city or town is located.
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new text begin (j) "Local government" means a city, county, or town.
new text end

new text begin (k) "Population" means the most recently available 2018 population estimate from the
state demographer as of May 1, 2020.
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new text begin Subd. 2. new text end

new text begin Local government distribution amounts. new text end

new text begin (a) The distribution for an eligible
city is equal to a dollar amount per capita that is the same for all eligible cities. The
commissioner shall determine the per capita dollar amount so that the total amount paid
under this paragraph is equal to the amount available under subdivision 8, paragraph (c),
minus the amounts payable to eligible towns under paragraph (b) and the supplemental
amount paid to counties under paragraph (d).
new text end

new text begin (b) The distribution for an eligible town is equal to $25 multiplied by the town's
population.
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new text begin (c) The base distribution amount for an eligible county is equal to a dollar amount
multiplied by the total county population. The dollar amount shall be the same amount for
all eligible counties and shall be determined by the commissioner so that the total amount
paid under this paragraph is equal to the amount available under subdivision 8, paragraph
(b).
new text end

new text begin (d) An eligible county shall also receive a supplemental distribution amount equal to
the sum of: (1) the per capita amount determined under paragraph (a) multiplied by the
population of all cities in the county with a population less than 200; and (2) $25 multiplied
by the population within the county located outside of any city or eligible town. For purposes
of clause (1), a city that crosses into two or more counties is located in its home county.
Total aid to each county is equal to the base distribution amount plus the supplemental
amount.
new text end

new text begin Subd. 3. new text end

new text begin Distribution schedule. new text end

new text begin The commissioner must distribute the amounts calculated
under subdivision 2 no later than June 30, 2020, for certifications received by June 22, 2020.
Distributions will be made for certifications received by September 15, 2020.
new text end

new text begin Subd. 4. new text end

new text begin Allowed uses. new text end

new text begin (a) A local government must use aid distributions under this
section for purposes consistent with the requirements of Public Law 116-136. Prior to
distributing the aid, the commissioner must require each eligible local government to certify
its intent to comply with the requirements of this section. The certification must be in the
form and manner determined by the commissioner.
new text end

new text begin (b) Notwithstanding paragraph (a), a county must use at least 10 percent of the base
distribution aid it receives under subdivision 2, paragraph (c), for emergency financial
assistance to individuals and families and for economic support to businesses. The county
must certify it will spend funds according to this section to the commissioner. Any auditing
of compliance with this section, including the ten percent amount, will occur with regular
audits of the county.
new text end

new text begin (c) A city or town that is not an eligible city or eligible town may apply to its home
county for a reimbursement, to be paid from the county aid distribution under subdivision
2 to cover costs incurred by the city or town that are allowed uses under paragraph (a). The
county may require the city or town to provide sufficient information to demonstrate that
the cost incurred meets the requirements of Public Law 116-136. Upon appropriate
documentation, the county must make a reimbursement of up to the lesser of: (1) $75.34
multiplied by the population of the city or $25 multiplied by the population of the town; or
(2) the amount of documented allowed costs. The county, at its discretion, may increase the
reimbursement above this amount, but to no more than the amount of documented allowed
costs. Any application for a reimbursement under this paragraph must be made no later than
September 1, 2020, and any reimbursements made under this subdivision must be paid to
the city or town no later than September 20, 2020.
new text end

new text begin Subd. 5. new text end

new text begin Local government collaborative agreements. new text end

new text begin A local government may enter
into a collaborative agreement with one or more other local governments to share aid
distributions under this section, consistent with subdivision 4. The commissioner may require
each local government to provide information about the agreement in the form and manner
determined by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Expenditure time limits. new text end

new text begin (a) Except as provided in paragraphs (b) and (d), any
aid amount remaining unexpended on November 15, 2020, by an eligible city or town whose
home county is an eligible county, must be sent to its home county. The transfer must be
made no later than November 20, 2020. The county may use these funds for any purpose
allowed under subdivision 4, paragraphs (a) and (b).
new text end

new text begin (b) Except as provided under paragraph (e), any aid amount remaining unexpended on
November 15, 2020, by an eligible city or town whose home county is Hennepin County,
must be sent to the Hennepin County Medical Center which may use the funds only for
eligible expenses that meet the requirements of Public Law 116-136. Except as provided
under paragraph (e), any aid amount remaining unexpended on November 15, 2020, by an
eligible city or town whose home county is Ramsey County, must be granted to Regions
Hospital which may use the funds only for eligible expenses that meet the requirements of
Public Law 116-136. Any funds transferred or granted to the medical center or hospital
under this paragraph that are unexpended by those entities by December 1, 2020, must be
returned no later than December 10, 2020, to the commissioner and are canceled to the
coronavirus relief federal fund.
new text end

new text begin (c) Any amount of aid under subdivision 2 or transfer under paragraph (a) remaining
unexpended by an eligible county by December 1, 2020, must be returned no later than
December 10, 2020, to the commissioner and is canceled to the coronavirus relief federal
fund.
new text end

new text begin (d) Notwithstanding paragraph (a), any aid amount remaining unexpended by a local
government on December 1, 2020, for a local government that has entered into a collaborative
agreement under subdivision 5, must be returned no later than December 10, 2020, to the
commissioner and is canceled to the coronavirus relief federal fund.
new text end

new text begin (e) The governing body of an eligible city or eligible town whose home county is
Hennepin County or Ramsey County may adopt a resolution to direct the aid amounts to
another hospital entity for expenditure by that hospital entity. The hospital entity must
comply with the other requirements of paragraph (b) governing eligible uses and expenditure
time limits. For the purposes of this paragraph "hospital entity" means a hospital licensed
under Minnesota Statutes, chapters 144.50 to 144.56.
new text end

new text begin Subd. 7. new text end

new text begin Repayment of improperly spent federal funds. new text end

new text begin (a) For purposes of this
subdivision, "local government unit" means a county, city, or town.
new text end

new text begin (b) The commissioner must recoup money from a local government unit if:
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new text begin (1) the Inspector General of the Department of the Treasury has determined that the state
of Minnesota is subject to recoupment of funds under Public Law 116-136; and
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new text begin (2) the recoupment is the result of the failure of a local government unit to expend money
distributed under this section consistent with the requirements of Public Law 116-136.
new text end

new text begin (c) The recoupment may only come from the local government whose spending caused
a need for recoupment from the state under federal law. The commissioner must certify the
amount to be repaid by each local government unit. For the purposes of this subdivision,
the commissioner must consider costs reimbursed under subdivision 4, paragraph (c), to be
spending by the city or town that receives the reimbursement. The amount of the repayment
required from each local government unit must be equal to the state recoupment amount
attributable to that local government unit. For the purposes of this paragraph, "state
recoupment amount" means the total of the amounts determined under paragraph (b).
new text end

new text begin (d) A local government unit must repay its share of the state recoupment amount to the
state in full within 90 days of the commissioner's certification under paragraph (c). A local
government unit may apply to the commissioner in the form and manner determined by the
commissioner for an alternative repayment schedule, not to exceed five years.
new text end

new text begin (e) Any amounts recouped by the state must be credited to the fund from which the state
paid the amounts recouped by the Department of the Treasury.
new text end

new text begin Subd. 8. new text end

new text begin Appropriations. new text end

new text begin (a) $841,464,000 in fiscal year 2020 is appropriated from the
coronavirus relief federal fund to the commissioner of revenue for aid distributions under
this section. This is a onetime appropriation and is available until November 30, 2020.
new text end

new text begin (b) Fifty-five percent of the appropriation in paragraph (a) must be used for the base
distribution amount for counties under subdivision 2, paragraph (c).
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new text begin (c) The remaining amount of the appropriation in paragraph (a) must be used for all
other aid and grant payments under this section.
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new text begin EFFECTIVE DATE. new text end

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