HF 53

as introduced - 92nd Legislature, 2021 1st Special Session (2021 - 2021) Posted on 06/22/2021 02:40pm

A bill for an act
relating to state government; establishing a COVID-19 flexible account; providing
for allocation of certain federal funds; allowing reductions in certain general fund
appropriations and transfers; requiring reports; appropriating money; amending
Laws 2020, Fifth Special Session chapter 3, article 9, section 13.

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

Section 1.

Laws 2020, Fifth Special Session chapter 3, article 9, section 13, is amended
to read:

Sec. 13. FUND MAXIMIZATION.

On or after December 31, 2020, the commissioner of management and budget is
authorized to use best efforts to maximize the use of federal CARES Act funding, consistent
with applicable federal guidance deleted text begin , and to use any unobligated amounts to fund eligible state
activities appropriated for deleted text end new text begin . The commissioner may reduce general fund appropriations and
transfers new text end in Laws 2020, deleted text begin chapters deleted text end new text begin chapter new text end 66, 70, 71, 74, or 81 new text begin , or Laws 2020, Seventh Special
Session chapter 2, and corresponding funding amounts are appropriated from the federal
coronavirus relief fund up to the unobligated balance of the fund new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin COVID-19 FLEXIBLE RESPONSE ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account created. new text end

new text begin The COVID-19 flexible response account is created
within the state fiscal recovery federal fund in the state treasury to pay expenditures eligible
under federal guidance for the state fiscal recovery federal fund. $425,000,000 is transferred
from the state fiscal recovery federal fund to the COVID-19 flexible response account and
is appropriated to the commissioner of management and budget. The commissioner may
transfer funds appropriated under this subdivision to state agencies as necessary. This is a
onetime appropriation. Any money in the account that remains unallocated on July 1, 2022,
cancels to the state fiscal recovery federal fund. Allocated funds are available until June 30,
2023.
new text end

new text begin Subd. 2. new text end

new text begin Legislative COVID-19 Response Commission review. new text end

new text begin (a) The Legislative
COVID-19 Response Commission established under Laws 2020, chapter 71, article 1,
section 7, shall review proposed allocations from the COVID-19 flexible response account.
new text end

new text begin (b) The commissioner of management and budget must submit proposed single
expenditures from the COVID-19 flexible response account that exceed $2,500,000 to the
Legislative COVID-19 Response Commission for its review and recommendations. The
submission must include the total amount of the proposed expenditure, the purpose of the
proposed expenditure, the time period of the proposed expenditure, and any additional
information the commissioner of management and budget determines necessary to properly
document the proposed expenditure. Upon receiving a submission, the commission has
three days after the request is submitted to review the proposed expenditures submitted
under this subdivision.
new text end

new text begin (c) Commission members may make a positive recommendation, a negative
recommendation, or no recommendation on a proposed expenditure. If a majority of the
commission members from the senate and a majority of the commission members from the
house of representatives make a negative recommendation on a proposed expenditure, the
commissioner is prohibited from expending the money. If a majority of the commission
members from the senate and a majority of the commission members from the house of
representatives do not make a negative recommendation, or if the commission makes no
recommendation, the commissioner may expend the money.
new text end

new text begin (d) The commission may hold a public meeting to approve or disapprove a proposed
expenditure from the COVID-19 flexible response account. Notwithstanding Minnesota
Statutes, section 3.055, the commission may conduct a public meeting remotely. The
commission may approve or disapprove proposed expenditures without a public meeting.
The commission members may approve or disapprove proposed expenditures via written
communication sent to the commissioner of management and budget.
new text end

new text begin Subd. 3. new text end

new text begin Monthly expenditure report. new text end

new text begin The commissioner of management and budget
must provide a report on the spending from the COVID-19 flexible response account to the
Legislative COVID-19 Response Commission on the last day of each month. The report
must include the total amount of each expenditure, the purpose of each expenditure, and
any additional information the commissioner of management and budget determines is
necessary to properly document each expenditure.
new text end

Sec. 3. new text begin REVENUE REPLACEMENT; AMERICAN RESCUE PLAN ACT; STATE
FISCAL RECOVERY FEDERAL FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Transfer. new text end

new text begin $550,000,000 in fiscal year 2023 and $550,000,000 in fiscal
year 2024 are transferred from the state fiscal recovery federal fund to the general fund for
the provision of government services. The fiscal year 2024 transfer must occur prior to
December 15, 2024. The transfers in this subdivision are onetime.
new text end

new text begin Subd. 2. new text end

new text begin State appropriation alternative. new text end

new text begin (a) If the commissioner of management and
budget determines that the transfers in subdivision 1 are ineligible uses of the state fiscal
recovery federal fund, the transfers in subdivision 1 are canceled, and $550,000,000 is
appropriated from the state fiscal recovery federal fund in fiscal year 2022 to the
commissioner of management and budget to replace eligible general fund appropriations
in the biennium beginning July 1, 2021. Money appropriated to the commissioner of
management and budget is available in either year of the biennium and may be disbursed
or transferred to state agencies as necessary. The general fund appropriations being replaced
are canceled. The commissioner of management and budget must determine eligible
appropriations consistent with Public Law 117-2 and its corresponding guidance for use of
the state fiscal recovery federal fund. For purposes of this subdivision, an ineligible use
includes one that violates a maintenance of effort requirement.
new text end

new text begin (b) If the commissioner of management and budget implements the appropriations in
paragraph (a), the commissioner must cancel $550,000,000 of the forecasted general fund
appropriations in the biennium beginning July 1, 2023, that are eligible to be replaced with
the state fiscal recovery federal fund under Public Law 117-2 and its corresponding guidance
consistent with the method used in paragraph (a). The commissioner must allocate
$550,000,000 from the state fiscal recovery federal fund from the biennium beginning July
1, 2023, to replace the canceled general fund appropriations. The allocations made by the
commissioner are appropriated in fiscal year 2024 from the state fiscal recovery federal
fund and are available in either year of the biennium, but must be obligated by December
31, 2024. This is a onetime appropriation.
new text end

new text begin (c) Prior to implementing any appropriations or planning estimates under this subdivision,
the commissioner of management and budget must submit the proposed appropriation and
planning estimate changes to the Legislative Advisory Commission for review. Legislative
Advisory Commission members have up to ten days to submit any recommendations
regarding the appropriations to the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin General fund restoration. new text end

new text begin If general fund appropriations in subdivisions 2
and 3 are reduced or replaced with state fiscal recovery federal fund appropriations, those
state fiscal recovery federal fund appropriations are onetime for the years indicated, and
the general fund appropriation base amounts are reinstated in subsequent fiscal years.
new text end

Sec. 4. new text begin SUSPENSION OF STATUTORY APPROPRIATION; AMERICAN RESCUE
PLAN ACT; STATE FISCAL RECOVERY FEDERAL FUND.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, sections 3.3005 and 4.07, $1,233,000,000 of
the federal funds received by the state of Minnesota from its state fiscal recovery federal
fund allocation under Public Law 117-2 must not be spent except pursuant to a direct
appropriation by law.
new text end

new text begin (b) If the funds in this section are not appropriated by the expiration of paragraph (a),
the remaining funds in paragraph (a) are appropriated to the commissioner of management
and budget. The commissioner of management and budget may transfer funds appropriated
under this paragraph to state agencies as necessary. Before spending federal funds
appropriated in this section, the commissioner of management and budget shall report
allocations of funds appropriated under this section and their intended purpose to the
Legislative Advisory Commission, consistent with the urgent federal funds request procedure
under Minnesota Statutes, section 3.3005, subdivisions 4 and 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment and
is retroactive to May 17, 2021. Paragraph (a) expires June 15, 2022. Paragraph (b) is effective
the day following final enactment.
new text end