HF 2928

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/01/2022 11:11am

A bill for an act
relating to local government aids; creating the stronger community aid program;
appropriating money; proposing coding for new law in Minnesota Statutes, chapter
477A; repealing Minnesota Statutes 2020, section 6.91.

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

Section 1.

new text begin [477A.40] STRONGER COMMUNITY AID.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of this section is to enhance the local performance
measurement program administered by the Office of the State Auditor by implementing a
permanent aid program set to compensate participating local units of government for
implementing a performance measurement program. Participation in this program is
voluntary. For purposes of this section, "local units of government" means all counties and
all statutory and home rule charter cities.
new text end

new text begin Subd. 2. new text end

new text begin Duties of the Office of the State Auditor. new text end

new text begin (a) To assist participating local units
of government, the Office of the State Auditor must provide on its website guidance for
compliance with the requirements of this section, including but not limited to:
new text end

new text begin (1) performance measures for counties;
new text end

new text begin (2) performance measures for cities;
new text end

new text begin (3) a sample resolution for counties and cities; and
new text end

new text begin (4) reporting requirements.
new text end

new text begin (b) Under subdivision 7, the state auditor must prescribe the form on which participating
local units of government certify their compliance with the requirements of this section.
new text end

new text begin (c) Under subdivision 9, the state auditor must certify to the commissioner of revenue
by April 1 of each year the list of participating local units of government that are eligible
to receive aid under this section.
new text end

new text begin Subd. 3. new text end

new text begin Program performance measures. new text end

new text begin (a) Each year, a local unit of government
that elects to participate in this section must adopt and implement a set of ten performance
measures prescribed by the Office of the State Auditor.
new text end

new text begin (b) A local unit of government that elects to participate in this section must adopt its
performance measures by June 1 each year.
new text end

new text begin Subd. 4. new text end

new text begin Citizen performance measure and budget workshop meetings. new text end

new text begin (a) A local
unit of government that elects to participate in this section must hold an annual citizen
performance measure and budget workshop meeting. This meeting must be used to: (i)
discuss performance measures selected for the upcoming year; (ii) review and report the
performance measure results for the current year and compare these results to previous
years, if applicable; (iii) discuss the budget process and budget priorities; and (iv) receive
public input.
new text end

new text begin (b) The meeting described in this subdivision must be held between June 15 and August
15 of each year, not before 6:00 p.m., with notice to the public provided at least 15 days
before the meeting is held by posting on the local unit of government's official website or
by direct mail.
new text end

new text begin Subd. 5. new text end

new text begin Preliminary budget meeting. new text end

new text begin At the meeting at which a local unit of
government participating in this section sets its preliminary budget and levy pursuant to
section 275.065, subdivision 1, the participating local unit of government must identify at
least two performance measures needing improvement and determine a strategy and plan
for improving these measures.
new text end

new text begin Subd. 6. new text end

new text begin Final budget meeting; resolution. new text end

new text begin At the meeting at which a local unit of
government participating in this section sets its final budget and levy pursuant to section
275.07, the participating local unit of government must approve a resolution declaring that:
new text end

new text begin (1) the participating local unit of government adopted and implemented the appropriate
number of performance measures prescribed by the Office of the State Auditor;
new text end

new text begin (2) the participating local unit of government held a citizen performance measure and
budget workshop meeting before the preliminary budget meeting in subdivision 5, during
which the local unit of government discussed the budget process, reported the results of the
performance measures from the previous year to the public, and allowed for public input;
new text end

new text begin (3) performance measure results from the previous year, if applicable, were made public
through the local unit of government's official website or by direct mail; and
new text end

new text begin (4) the participating local unit of government identified at least two performance measures
for improvement and developed a plan for improving these measures and a strategy for
evaluating the improvements in the next year.
new text end

new text begin Subd. 7. new text end

new text begin Certification to the Office of the State Auditor. new text end

new text begin A participating local unit of
government must certify to the Office of the State Auditor, on a form prescribed by the
auditor, that it has met the requirements of subdivisions 3 to 6 by February 1 of the aid
distribution year.
new text end

new text begin Subd. 8. new text end

new text begin Aid calculation. new text end

new text begin (a) Beginning in calendar year 2023 and thereafter, each local
jurisdiction that has satisfied the requirements under this section is eligible for an aid
payment.
new text end

new text begin (b) For eligible counties, the aid is calculated as follows:
new text end

new text begin (1) for a county with a population less than or equal to 10,000, the aid is equal to $10
per capita, except that a county's aid under this clause must not be less than $50,000; and
new text end

new text begin (2) for a county with a population greater than 10,000, the aid is equal to (i) $100,000
plus (ii) $2 times the county's population over 10,000, up to a maximum of $250,000.
new text end

new text begin (c) For eligible cities, the aid is calculated as follows:
new text end

new text begin (1) for a city with a population less than or equal to 2,000, the aid is equal to $20 per
capita; and
new text end

new text begin (2) for a city with a population greater than 2,000, the aid is equal to (i) $40,000 plus
(ii) $2 times the city's population over 2,000, up to a maximum of $250,000.
new text end

new text begin (d) For purposes of this section, the population data used in calculating the aid to each
participating local unit of government must be the most recently available data as of January
1 of the year in which the aid is distributed.
new text end

new text begin Subd. 9. new text end

new text begin Aid certification and payment. new text end

new text begin (a) By April 1 of the aid distribution year, the
Office of the State Auditor must certify to the commissioner of revenue a list of the local
units of government that have certified, pursuant to subdivision 7, that they have met the
requirements of this section and are eligible to receive aid.
new text end

new text begin (b) The commissioner of revenue must annually make all necessary calculations and
make payments directly to the local units of government that are eligible to receive aid. In
addition, the commissioner must notify the local units of government of the aid amounts
and statewide total figures before August 1 of the aid distribution year.
new text end

new text begin (c) The commissioner of revenue must make the payments to qualifying local units of
government on December 26 annually.
new text end

new text begin Subd. 10. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the payments required by the
commissioner of revenue under subdivision 9 is annually appropriated from the general
fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2023 and thereafter.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 6.91, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2023.
new text end

APPENDIX

Repealed Minnesota Statutes: 22-05122

6.91 LOCAL PERFORMANCE MEASUREMENT AND REPORTING.

Subdivision 1.

Reports of local performance measures.

(a) A county or city that elects to participate in the standard measures program must report its results to its citizens annually through publication, direct mailing, posting on the jurisdiction's website, or through a public hearing at which the budget and levy will be discussed and public input allowed.

(b) Each year, jurisdictions participating in the local performance measurement and improvement program must file a report with the state auditor by July 1, in a form prescribed by the auditor. All reports must include a declaration that the jurisdiction has complied with, or will have complied with by the end of the year, the requirement in paragraph (a). For jurisdictions participating in the standard measures program, the report shall consist of the jurisdiction's results for the standard set of performance measures under section 6.90, subdivision 2, paragraph (a). In 2012, jurisdictions participating in the comprehensive performance measurement program must submit a resolution approved by its local governing body indicating that it either has implemented or is in the process of implementing a local performance measurement system that meets the minimum standards specified by the council under section 6.90, subdivision 2, paragraph (b). In 2013 and thereafter, jurisdictions participating in the comprehensive performance measurement program must submit a statement approved by its local governing body affirming that it has implemented a local performance measurement system that meets the minimum standards specified by the council under section 6.90, subdivision 2, paragraph (b).

Subd. 2.

Benefits of participation.

(a) A county or city that elects to participate in the standard measures program for 2011 is: (1) eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2012, if levy limits are in effect.

(b) Any county or city that elects to participate in the standard measures program for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2013 if levy limits are in effect.

(c) Any county or city that elects to participate in the standard measures program for 2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity. Any jurisdiction participating in the comprehensive performance measurement program for 2013 or any year thereafter is exempt from levy limits under sections 275.70 to 275.74 for taxes payable in the following year, if levy limits are in effect.

Subd. 3.

Certification of participation.

(a) The state auditor shall certify to the commissioner of revenue by August 1 of each year the counties and cities that are participating in the standard measures program and the comprehensive performance measurement program.

(b) The commissioner of revenue shall make per capita aid payments under this section on the second payment date specified in section 477A.015, in the same year that the measurements were reported.

(c) The commissioner of revenue shall notify each county and city that is entitled to exemption from levy limits by August 10 of each levy year.

Subd. 4.

Appropriation.

(a) The amount necessary to fund obligations under subdivision 2 is annually appropriated from the general fund to the commissioner of revenue.

(b) The sum of $6,000 in fiscal year 2011 and $2,000 in each fiscal year thereafter is annually appropriated from the general fund to the state auditor to carry out the auditor's responsibilities under sections 6.90 to 6.91.