HF 3567

as introduced - 91st Legislature (2019 - 2020) Posted on 02/24/2020 04:25pm

A bill for an act
relating to taxation; making various policy and technical changes to property taxes
and fire and police state aids; amending Minnesota Statutes 2018, sections 270.41,
subdivision 3a; 272.029, subdivision 2; 272.0295, subdivisions 2, 5; 273.063;
287.04; 477A.10; Minnesota Statutes 2019 Supplement, sections 6.495, subdivision
3; 270C.22, subdivision 1; 273.0755; 273.124, subdivision 14; 273.18; 290A.19;
297I.26, subdivision 2; 477B.01, subdivisions 5, 10, 11, by adding subdivisions;
477B.02, subdivisions 2, 3, 5, 8, 9, 10, by adding a subdivision; 477B.03,
subdivisions 3, 4, 7; 477B.04, subdivision 1, by adding a subdivision; 477C.02,
subdivision 4; 477C.03, subdivisions 2, 5; 477C.04, by adding a subdivision;
repealing Minnesota Statutes 2018, section 270C.17, subdivision 2; Minnesota
Statutes 2019 Supplement, sections 477B.02, subdivision 4; 477B.03, subdivision
6.

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

ARTICLE 1

PROPERTY TAXES

Section 1.

Minnesota Statutes 2018, section 270.41, subdivision 3a, is amended to read:

Subd. 3a.

Report on disciplinary actions.

deleted text begin Each odd-numbered year, deleted text end new text begin When issuing the
report required under section 214.07, new text end the board must deleted text begin publish a report detailing deleted text end new text begin include new text end the
number and types of disciplinary actions recommended by the commissioner of revenue
under section 273.0645, subdivision 2, and the disposition of those recommendations by
the board. The report must be presented to the house of representatives and senate committees
with jurisdiction over property taxes deleted text begin by February 1 of each odd-numbered year deleted text end new text begin in addition
to the recipients required under section 214.07 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports issued in 2020 and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2018, section 272.029, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section:

(1) "wind energy conversion system" has the meaning given in section 216C.06,
subdivision 19, and also includes a substation that is used and owned by one or more wind
energy conversion facilities;

(2) "large scale wind energy conversion system" means a wind energy conversion system
of more than 12 megawatts, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b);

(3) "medium scale wind energy conversion system" means a wind energy conversion
system of over two and not more than 12 megawatts, as measured by the nameplate capacity
of the system or as combined with other systems as provided in paragraph (b); and

(4) "small scale wind energy conversion system" means a wind energy conversion system
of two megawatts and under, as measured by the nameplate capacity of the system or as
combined with other systems as provided in paragraph (b).

(b) For systems installed and contracted for after January 1, 2002, the total size of a
wind energy conversion system under this subdivision shall be determined according to this
paragraph. Unless the systems are interconnected with different distribution systems, the
nameplate capacity of one wind energy conversion system shall be combined with the
nameplate capacity of any other wind energy conversion system that is:

(1) located within five miles of the wind energy conversion system;

(2) constructed within the same 12-month period as the wind energy conversion system;
and

(3) under common ownership.

In the case of a dispute, the commissioner of commerce shall determine the total size of the
system, and shall draw all reasonable inferences in favor of combining the systems.

new text begin For the purposes of making a determination under this paragraph, the original construction
date of an existing wind energy conversion system is not changed if the system is replaced,
repaired, or otherwise maintained or altered.
new text end

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two wind energy conversion systems are under common ownership when
the underlying ownership structure contains similar persons or entities, even if the ownership
shares differ between the two systems. Wind energy conversion systems are not under
common ownership solely because the same person or entity provided equity financing for
the systems.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2018, section 272.0295, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For the purposes of this section, the term "solar energy
generating system" means a set of devices whose primary purpose is to produce electricity
by means of any combination of collecting, transferring, or converting solar generated
energy.

(b) The total size of a solar energy generating system under this subdivision shall be
determined according to this paragraph. Unless the systems are interconnected with different
distribution systems, the nameplate capacity of a solar energy generating system shall be
combined with the nameplate capacity of any other solar energy generating system that:

(1) is constructed within the same 12-month period as the solar energy generating system;
and

(2) exhibits characteristics of being a single development, including but not limited to
ownership structure, an umbrella sales arrangement, shared interconnection, revenue-sharing
arrangements, and common debt or equity financing.

In the case of a dispute, the commissioner of commerce shall determine the total size of the
system and shall draw all reasonable inferences in favor of combining the systems.

new text begin For the purposes of making a determination under this paragraph, the original construction
date of an existing solar energy conversion system is not changed if the system is replaced,
repaired, or otherwise maintained or altered.
new text end

(c) In making a determination under paragraph (b), the commissioner of commerce may
determine that two solar energy generating systems are under common ownership when the
underlying ownership structure contains similar persons or entities, even if the ownership
shares differ between the two systems. Solar energy generating systems are not under
common ownership solely because the same person or entity provided equity financing for
the systems.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2018, section 272.0295, subdivision 5, is amended to read:

Subd. 5.

Notification of tax.

(a) On or before February 28, the commissioner of revenue
shall notify the owner of each solar energy generating system of the tax due to each county
for the current year and shall certify to the county auditor of each county in which the system
is located the tax due from each owner for the current year.

(b) If the commissioner of revenue determines that the amount of production tax has
been erroneously calculated, the commissioner may correct the error. The commissioner
must notify the owner of the solar energy generating system of the correction and the amount
of tax due to each county and must certify the correction to the county auditor of each county
in which the system is located on or before April 1 of the current year. new text begin The commissioner
may correct errors that are clerical in nature until December 31.
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. 5.

Minnesota Statutes 2018, section 273.063, is amended to read:

273.063 APPLICATION; LIMITATIONS.

The provisions of sections 272.161, 273.061, 273.062, 273.063, 273.072, 273.08, 273.10,
274.01, and 375.192 shall apply to all counties except Ramsey County. The following
limitations shall apply as to the extent of the county assessors jurisdiction:

In counties having a city of the first class, the powers and duties of the county assessor
within such city shall be performed by the duly appointed city assessor. In all other cities
having a population of 30,000 persons or more, according to the last preceding federal
census, except in counties having a county assessor on January 1, 1967, the powers and
duties of the county assessor within such cities shall be performed by the duly appointed
city assessor, provided that the county assessor shall retain the supervisory duties contained
in section 273.061, subdivision 8. new text begin For purposes of this section, "powers and duties" means
the powers and duties identified in section 273.061, subdivision 8, clauses (5) to (16).
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. 6.

Minnesota Statutes 2019 Supplement, section 273.0755, is amended to read:

273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.

(a) Beginning with the four-year period starting on July 1, deleted text begin 2000 deleted text end new text begin 2020 new text end , every person
licensed by the state Board of Assessors at the Accredited Minnesota Assessor level or
higher, shall successfully complete deleted text begin a weeklong Minnesota laws course deleted text end new text begin 30 hours of
educational coursework on Minnesota laws, assessment administration, and administrative
procedures new text end sponsored by the Department of Revenue deleted text begin at least once deleted text end in every four-year period.
deleted text begin An assessor need not attend the course if they successfully pass the test for the course.
deleted text end

(b) The commissioner of revenue may require that each county, and each city for which
the city assessor performs the duties of county assessor, have (1) a person on the assessor's
staff who is certified by the Department of Revenue in sales ratio calculations, (2) an officer
or employee who is certified by the Department of Revenue in tax calculations, and (3) an
officer or employee who is certified by the Department of Revenue in the proper preparation
of information reported to the commissioner under section 270C.85, subdivision 2, clause
(4). Certifications under this paragraph expire after four years.

(c) Beginning with the four-year educational licensing period starting on July 1, 2004,
every Minnesota assessor licensed by the State Board of Assessors must attend and participate
in a seminar that focuses on ethics, professional conduct and the need for standardized
assessment practices developed and presented by the commissioner of revenue. This
requirement must be met at least once in every subsequent four-year period. This requirement
applies to all assessors licensed for one year or more in the four-year period.

(d) When the commissioner of revenue determines that an individual or board that
performs functions related to property tax administration has performed those functions in
a manner that is not uniform or equitable, the commissioner may require that the individual
or members of the board complete supplemental training. The commissioner may not require
that an individual complete more than 32 hours of supplemental training pursuant to this
paragraph. If the individual is required to complete supplemental training due to that
individual's membership on a local or county board of appeal and equalization, the
commissioner may not require that the individual complete more than two hours of
supplemental training.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the four-year licensing period starting
on July 1, 2020, and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2019 Supplement, section 273.124, subdivision 14, is amended
to read:

Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14 new text begin or section 477A.17 new text end ;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:

(1) the agricultural property consists of at least 40 acres including undivided government
lots and correctional 40's;

(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
or of the owner's spouse, is actively farming the agricultural property, either on the person's
own behalf as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of which the person
is a partner, shareholder, or member;

(3) both the owner of the agricultural property and the person who is actively farming
the agricultural property under clause (2), are Minnesota residents;

(4) neither the owner nor the spouse of the owner claims another agricultural homestead
in Minnesota; and

(5) neither the owner nor the person actively farming the agricultural property lives
farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.

The relationship under this paragraph may be either by blood or marriage.

(ii) Property containing the residence of an owner who owns qualified property under
clause (i) shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.

(iii) As used in this paragraph, "agricultural property" means class 2a property and any
class 2b property that is contiguous to and under the same ownership as the class 2a property.

(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood, LeSueur,
Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:

(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;

(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;

(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;

(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and

(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph even if:

(i) the shareholder, member, or partner of that entity is actively farming the agricultural
property on the shareholder's, member's, or partner's own behalf; or

(ii) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:

(A) the shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land who is actively
farming the land is a shareholder, member, or partner of the family farm corporation, joint
family farm venture, partnership, or limited liability company that is operating the farm;
and

(B) more than half of the shareholders, members, or partners of each family farm
corporation, joint family farm venture, partnership, or limited liability company are persons
or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
paragraphs (c) and (d).

Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;

(3) the same operator of the agricultural property is listed with the Farm Service Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers, and sign and date the application. If any of the specified
information has changed since the full application was filed, the owner must notify the
assessor, and must complete a new application to determine if the property continues to
qualify for the special agricultural homestead. The commissioner of revenue shall prepare
a standard reapplication form for use by the assessors.

(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;

(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;

(2) the property is located in the county of Marshall;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2019 Supplement, section 273.18, is amended to read:

273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT PROPERTY
BY COUNTY AUDITORS.

(a) In every sixth year after the year 2010, the county auditor shall enter the description
of each tract of real property exempt by law from taxation, with the name of the owner, and
the assessor shall value and assess the same in the same manner that other real property is
valued and assessed, and shall designate in each case the purpose for which the property is
used.

(b) The county auditor shall include in the exempt property information that the
commissioner may require under section 270C.85, subdivision 2, clause (4), the total number
of acres of all natural resources lands for which in lieu payments are made under sections
477A.11 to 477A.14 new text begin and 477A.17 new text end . The assessor shall estimate its market value, provided
that if the assessor is not able to estimate the market value of the land on a per parcel basis,
the assessor shall furnish the commissioner of revenue with an estimate of the average value
per acre of this land within the county.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2018, section 287.04, is amended to read:

287.04 EXEMPTIONS.

The tax imposed by section 287.035 does not apply to:

deleted text begin (a) deleted text end new text begin (1) new text end a decree of marriage dissolution or an instrument made pursuant to it deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (b) deleted text end new text begin (2) new text end a mortgage given to correct a misdescription of the mortgaged property deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (c) deleted text end new text begin (3) new text end a mortgage or other instrument that adds additional security for the same debt
for which mortgage registry tax has been paid deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (d) deleted text end new text begin (4) new text end a contract for the conveyance of any interest in real property, including a contract
for deed deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (e) deleted text end new text begin (5) new text end a mortgage secured by real property subject to the minerals production tax of
sections 298.24 to 298.28 deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (f) The principal amount of deleted text end new text begin (6) new text end a mortgage loan made under a low and moderate income
new text begin housing program, new text end or other affordable housing program, if new text begin : (i) new text end the mortgagee is a federal,
state, or local government agency deleted text begin . deleted text end new text begin ; or (ii) the assignee is a federal, state, or local government
agency;
new text end

deleted text begin (g) deleted text end new text begin (7) new text end mortgages granted by fraternal benefit societies subject to section 64B.24 deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (h) deleted text end new text begin (8) new text end a mortgage amendment or extension, as defined in section 287.01 deleted text begin . deleted text end new text begin ;
new text end

deleted text begin (i) deleted text end new text begin (9) new text end an agricultural mortgage if the proceeds of the loan secured by the mortgage are
used to acquire or improve real property classified under section 273.13, subdivision 23,
paragraph (a) or (b) deleted text begin . deleted text end new text begin ; and
new text end

deleted text begin (j) deleted text end new text begin (10) new text end a mortgage on an armory building as set forth in section 193.147.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for mortgages recorded after July 31,
2020.
new text end

Sec. 10.

Minnesota Statutes 2018, section 477A.10, is amended to read:

477A.10 NATURAL RESOURCES LAND PAYMENTS IN LIEU; PURPOSE.

The purposes of sections 477A.11 to 477A.14 new text begin and 477A.17 new text end are:

(1) to compensate local units of government for the loss of tax base from state ownership
of land and the need to provide services for state land;

(2) to address the disproportionate impact of state land ownership on local units of
government with a large proportion of state land; and

(3) to address the need to manage state lands held in trust for the local taxing districts.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 2

FIRE AND POLICE STATE AIDS

Section 1.

Minnesota Statutes 2019 Supplement, section 6.495, subdivision 3, is amended
to read:

Subd. 3.

Report to commissioner of revenue.

new text begin (a) On or before September 15, new text end the state
auditor deleted text begin shall deleted text end new text begin must new text end file with the commissioner of revenue a financial compliance report
certifying for each relief association:

(1) the completion of the annual financial report required under section 424A.014 and
the auditing or certification of those financial reports under subdivision 1; and

(2) the receipt of any actuarial valuations required under section 424A.093 or Laws
2013, chapter 111, article 5, sections 31 to 42.

new text begin (b) The state auditor must file with the commissioner of revenue reports as described in
paragraph (a) on or before November 1, March 1, and June 1 certifying relief associations
that have satisfied the criteria of paragraph (a) since the previously filed financial compliance
report.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 297I.26, subdivision 2, is amended
to read:

Subd. 2.

Penalties.

(a) A company that fails to file the report on or before the due date
in subdivision 1 is liable for a penalty equal to $25 for each seven days, or fraction thereof,
that the report is delinquent, but not to exceed $200.

deleted text begin (b) Any person whose duty it is to file the report and who fails or refuses to file within
30 days after the postmark of the notice in subdivision 1 must be fined an amount of no
more than $1,000.
deleted text end

deleted text begin (c) Any deleted text end new text begin (b) A new text end company that knowingly makes and files an inaccurate or false report deleted text begin is
liable for a fine in an amount not less than $25 nor more than $1,000, as determined by the
commissioner deleted text end new text begin may be prosecuted under section 609.41 new text end , and the commissioner of commerce
may revoke the company's certificate of authority.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reports required to be filed after
December 31, 2020.
new text end

Sec. 3.

Minnesota Statutes 2019 Supplement, section 477B.01, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Apportionment agreement. new text end

new text begin "Apportionment agreement" means an agreement
between two or more fire departments that provide contracted fire protection service to the
same municipality and establishes the percentage of the population and the percentage of
the estimated market value within the municipality serviced by each fire department.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2019 Supplement, section 477B.01, subdivision 5, is amended
to read:

Subd. 5.

Fire department.

new text begin (a) new text end "Fire department" deleted text begin includes deleted text end new text begin means:
new text end

new text begin (1) new text end a municipal fire department deleted text begin and deleted text end new text begin ;
new text end

new text begin (2) new text end an independent nonprofit firefighting corporation deleted text begin . deleted text end new text begin ;
new text end

new text begin (3) a fire department established as or operated by a joint powers entity; or
new text end

new text begin (4) a fire protection special taxing district.
new text end

new text begin (b) This subdivision only applies to this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2019 Supplement, section 477B.01, is amended by adding a
subdivision to read:

new text begin Subd. 6a. new text end

new text begin Fire protection special taxing district. new text end

new text begin "Fire protection special taxing district"
means a special taxing district authorized by law or statute that provides fire protection
services within the district and may exercise all the powers of the local governments that
relate to fire protection within the district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2019 Supplement, section 477B.01, is amended by adding a
subdivision to read:

new text begin Subd. 7a. new text end

new text begin Joint powers entity. new text end

new text begin "Joint powers entity" means a joint powers entity under
section 471.59.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2019 Supplement, section 477B.01, subdivision 10, is amended
to read:

Subd. 10.

Municipality.

(a) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) deleted text begin a park district subject to chapter 398 deleted text end new text begin a joint powers entity new text end ;

(4) deleted text begin the University of Minnesota deleted text end new text begin a fire protection special taxing district new text end ; deleted text begin and deleted text end new text begin or
new text end

(5) an American Indian tribal government entity located within a federally recognized
American Indian reservation.

(b) This subdivision only applies to new text begin this new text end chapter deleted text begin 477B deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2019 Supplement, section 477B.01, subdivision 11, is amended
to read:

Subd. 11.

Secretary.

new text begin (a) new text end "Secretary" means new text begin :
new text end

new text begin (1) new text end the secretary of an independent nonprofit firefighting corporation that has a subsidiary
incorporated firefighters' relief association or whose firefighters participate in the voluntary
statewide volunteer firefighter retirement plan deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) the secretary of a joint powers entity or fire protection special taxing district or, if
there is no such person, the person primarily responsible for managing the finances of a
joint powers entity or fire protection special taxing district.
new text end

new text begin (b) This subdivision only applies to this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 2, is amended
to read:

Subd. 2.

Establishment of fire department.

(a) An independent nonprofit firefighting
corporation must be created under the nonprofit corporation act of this state operating for
the exclusive purpose of firefighting, or the governing body of a municipality must officially
establish a fire department.

(b) The fire department must have provided firefighting services for at least one calendar
year new text begin , and must have a current fire department identification number issued by the state fire
marshal new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 3, is amended
to read:

Subd. 3.

deleted text begin Personnel and deleted text end Benefits requirements.

deleted text begin (a) A fire department must have a
minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
deleted text end

deleted text begin (b) The fire department must have regular scheduled meetings and frequent drills that
include instructions in firefighting tactics and in the use, care, and operation of all fire
apparatus and equipment.
deleted text end

deleted text begin (c) deleted text end new text begin (a) new text end The fire department must have a separate subsidiary incorporated firefighters'
relief association that provides retirement benefits or must participate in the voluntary
statewide volunteer firefighter retirement plan; or if the municipality solely employs full-time
firefighters as defined in section 299N.03, subdivision 5, retirement coverage must be
provided by the public employees police and fire retirement plan. new text begin For purposes of retirement
benefits, a fire department may be associated with only one volunteer firefighters' relief
association or one account in the voluntary statewide volunteer firefighter retirement plan
at one time.
new text end

deleted text begin (d) deleted text end new text begin (b) new text end Notwithstanding paragraph deleted text begin (c) deleted text end new text begin (a) new text end , a municipality without a relief association as
described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if
all other requirements of this section are met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2019 Supplement, section 477B.02, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Public safety answering point requirement. new text end

new text begin The fire department must be
dispatched by a public safety answering point as defined in section 403.02, subdivision 19.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 5, is amended
to read:

Subd. 5.

Fire service contract or agreement; apportionment agreement filing
requirement.

(a) Every municipality or independent nonprofit firefighting corporation must
file a copy of any duly executed and valid fire service contract deleted text begin or agreement deleted text end with the
commissioner. new text begin A written notification of contract termination must be filed with the
commissioner when a fire service contract is terminated.
new text end

(b) If more than one fire department provides service to a municipality, the fire
departments furnishing service must deleted text begin enter into an agreement apportioning among themselves
the percentage of the population and the percentage of the estimated market value of each
shared service fire department service area. The agreement must be in writing and must be
filed deleted text end new text begin file an apportionment agreement new text end with the commissioner.

new text begin (c) When a municipality is a joint powers entity, it must file its joint powers agreement
with the commissioner. If the joint powers agreement does not include sufficient information
defining the fire department service area of the joint powers entity for the purposes of
calculating fire state aid, the secretary must file a written statement with the commissioner
defining the fire department service area.
new text end

new text begin (d) When a municipality is a fire protection special taxing district, it must file its
resolution establishing the fire protection special taxing district, and any agreements required
for the establishment of the fire protection special taxing district, with the commissioner.
If the resolution or agreement does not include sufficient information defining the fire
department service area of the fire protection special taxing district, the secretary must file
a written statement with the commissioner defining the fire department service area.
new text end

new text begin (e) The commissioner shall prescribe the format, manner, and time of filing of a written
notification of contract termination, an apportionment agreement, a joint powers agreement,
a resolution, or a written statement under paragraphs (a) to (d).
new text end

new text begin (f) A document filed with the commissioner under this subdivision must be refiled any
time it is updated. An apportionment agreement must be refiled only when a change in the
averaged sum of the percentage of population and percentage of estimated market value
serviced by a fire department subject to the apportionment agreement is at least one percent.
The percentage amount must be rounded to the nearest whole percentage.
new text end

new text begin (g) Upon the request of the commissioner, the county auditor must provide information
that the commissioner requires to accurately apportion the estimated market value of a fire
department service area for a fire department providing service to an unorganized territory
located in the county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 8, is amended
to read:

Subd. 8.

PERA certification to commissioner.

On or before February 1 each year, deleted text begin if
retirement coverage for a fire department is provided by the voluntary statewide volunteer
firefighter retirement plan, deleted text end the executive director of the Public Employees Retirement
Association must certify deleted text begin the existence of retirement coverage deleted text end new text begin to the commissioner the fire
departments that transferred retirement coverage to, or terminated participation in, the
voluntary statewide volunteer firefighter retirement plan since the previous certification
under this paragraph new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 9, is amended
to read:

Subd. 9.

Fire department certification to commissioner.

On or before March 15 of
each year, the municipal clerk or the secretary deleted text begin , and the fire chief, deleted text end must deleted text begin jointly deleted text end certify to the
commissioner deleted text begin that the fire department exists and meets the qualification requirements of
this section deleted text end new text begin the fire department service area as of December 31 of the previous year, and
that the fire department meets the qualification requirements of this section new text end . new text begin The fire
department must provide the commissioner with documentation that the commissioner
deems necessary for determining eligibility for fire state aid or for calculating and
apportioning fire state aid under section 477B.03. new text end The certification must be on a form
prescribed by the commissioner and must include all other information that the commissioner
requires. new text begin The municipal clerk or the secretary must send a copy of the certification filed
under this subdivision to the fire chief within five business days of the date the certification
was filed with the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2019 Supplement, section 477B.02, subdivision 10, is amended
to read:

Subd. 10.

Penalty for failure to file new text begin or correct new text end certification.

(a) If the certification
under subdivision 9 is not filed with the commissioner on or before March deleted text begin 15 deleted text end new text begin 1 new text end , the
commissioner must notify the municipal clerk or the secretary that a penalty deleted text begin equal to a
portion or all of the current year aid will apply if the certification is not received within ten
days of the postmark date of the notification deleted text end new text begin will be deducted from fire state aid certified
for the current year if the certification is not filed on or before March 15 new text end .

new text begin (b) If the commissioner rejects the certification by the municipal clerk or secretary under
subdivision 9 for inaccurate or incomplete information, the municipal clerk or the secretary
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection.
new text end

deleted text begin (b) deleted text end new text begin (c) A penalty applies to (1) a certification under subdivision 9 filed after March 15
and (2) a corrective certification under paragraph (b) filed after March 15 that is also filed
more than 30 days after the date on the notice of rejection. new text end The penalty deleted text begin for failure to file
the certification under subdivision 9 deleted text end is equal to the amount of fire state aid determined for
the municipality or the independent nonprofit firefighting corporation for the current year,
multiplied by deleted text begin five deleted text end new text begin ten new text end percent for each week or fraction of a week that the certification new text begin or
corrective certification new text end is deleted text begin late deleted text end new text begin filed after March 15 new text end . deleted text begin The penalty must be computed beginning
ten days after the postmark date of the commissioner's notification. deleted text end Aid amounts forfeited
as a result of the penalty revert to the state general fund. Failure to receive the certification
form is not a defense for a failure to file.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2019 Supplement, section 477B.03, subdivision 3, is amended
to read:

Subd. 3.

Population and estimated market value.

(a) deleted text begin Official statewide federal census
figures deleted text end new text begin Population estimates made by the state demographer pursuant to section 4A.02,
paragraph (d), new text end must be used in calculations requiring the use of population figures under
this chapter. deleted text begin Increases or decreases in population disclosed by reason of any special census
must not be taken into consideration.
deleted text end

(b) The latest available estimated market value property figures must be used in
calculations requiring the use of estimated market value property figures under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2019 Supplement, section 477B.03, subdivision 4, is amended
to read:

Subd. 4.

Initial fire state aid allocation amount.

(a) The initial fire state aid allocation
amount is the amount available for apportionment as fire state aid under subdivision 2,
without the inclusion of any additional funding amount to support a minimum fire state aid
amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount
is allocated one-half in proportion to the population for each fire department service area
and one-half in proportion to the estimated market value of each fire department service
area, including (1) the estimated market value of tax-exempt property, and (2) the estimated
market value of natural resources lands receiving in lieu payments under sections 477A.11
to 477A.14 and 477A.17. The estimated market value of minerals is excluded.

(b) In the case of a municipality or independent nonprofit firefighting corporation
furnishing fire protection to other municipalities as evidenced by valid fire service contracts new text begin ,
joint powers agreements, resolutions, and other supporting documents new text end filed with the
commissioner under section 477B.02, subdivision 5, the distribution must be adjusted
proportionately to take into consideration the crossover fire protection service. Necessary
adjustments must be made to subsequent apportionments.

(c) In the case of municipalities or independent nonprofit firefighting corporations
qualifying for aid, the commissioner must calculate the state aid for the municipality or
independent nonprofit firefighting corporation on the basis of the population and the estimated
market value of the area furnished fire protection service by the fire department as evidenced
by new text begin valid new text end fire service deleted text begin agreements deleted text end new text begin contracts, joint powers agreements, resolutions, and other
supporting documents new text end filed with the commissioner under section 477B.02, subdivision 5.

(d) In the case of more than one fire department furnishing contracted fire service to a
municipality, the population and estimated market value in the apportionment agreement
filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating
the state aid.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2019 Supplement, section 477B.03, subdivision 7, is amended
to read:

Subd. 7.

Appeal.

A municipality, an independent nonprofit firefighting corporation, a
fire relief association, or the voluntary statewide volunteer firefighter retirement plan may
object to the amount of fire state aid apportioned to it by filing a written request with the
commissioner to review and adjust the apportionment of funds within the state. new text begin The objection
of a municipality, an independent nonprofit firefighting corporation, a fire relief association,
or the voluntary statewide volunteer firefighter retirement plan must be filed with the
commissioner within 60 days of the date the amount of apportioned fire state aid is paid.
new text end The decision of the commissioner is subject to appeal, review, and adjustment by the district
court in the county in which the applicable municipality or independent nonprofit firefighting
corporation is located or by the Ramsey County District Court with respect to the voluntary
statewide volunteer firefighter retirement plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2019 Supplement, section 477B.04, subdivision 1, is amended
to read:

Subdivision 1.

Payments.

(a) The commissioner must make payments to the Public
Employees Retirement Association for deposit in the voluntary statewide volunteer firefighter
retirement fund on behalf of a municipality or independent nonprofit firefighting corporation
that is a member of the voluntary statewide volunteer firefighter retirement plan under
chapter 353G deleted text begin , or directly to a municipality or county designated by an independent nonprofit
firefighting corporation deleted text end . new text begin The commissioner must directly pay all other municipalities
qualifying for fire state aid, except as provided in paragraph (d). new text end The payment is equal to
the amount of fire state aid apportioned to the applicable fire state aid recipient under section
477B.03.

(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not
paid by October 1 accrues interest payable to the recipient at the rate of one percent for each
month or part of a month that the amount remains unpaid after October 1.

(c) new text begin In the event of noncompliance with sections 424A.014 and 477B.02, subdivision 7,
the amount of fire state aid apportioned to a municipality or independent nonprofit firefighting
corporation under section 477B.03 must be withheld from payment to the Public Employees
Retirement Association or the municipality. The commissioner of revenue must issue a
withheld payment within ten business days of receipt of a financial compliance report under
section 6.495, subdivision 3, certifying that the municipality or independent nonprofit
firefighting corporation has fulfilled the requirements of sections 424A.014 and 477B.02,
subdivision 7. new text end The interest under paragraph (b) does not apply deleted text begin when deleted text end new text begin to a new text end payment deleted text begin has not
been made by October 1 due to noncompliance with sections 424A.014 and 477B.02,
subdivision 7 deleted text end new text begin withheld under this paragraph new text end .

new text begin (d) A joint powers entity must designate the city or town to be paid fire state aid on its
behalf in the first year the joint powers entity qualifies for fire state aid. An independent
nonprofit firefighting corporation must designate the city or town within its fire department
service area to be paid fire state aid on its behalf in the first year the independent nonprofit
firefighting corporation qualifies for fire state aid. If there is no city or town within the fire
department service area of an independent nonprofit firefighting corporation, fire state aid
must be paid to the county where the independent nonprofit firefighting corporation is
located. A local government payment designation under this paragraph must be in writing
in the form and manner and at the time prescribed by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2019 Supplement, section 477B.04, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Aid amount corrections. new text end

new text begin (a) An adjustment needed to correct a fire state aid
overpayment or underpayment due to a clerical error must be made to subsequent fire state
aid payments as provided in paragraphs (b) and (c). The authority to correct an aid payment
under this subdivision is limited to three years after the payment was issued.
new text end

new text begin (b) If the adjustment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality or independent nonprofit firefighting
corporation is to receive by the amount overpaid over a period of no more than three years.
If the adjustment equals or is less than ten percent of the most recently paid aid amount, the
commissioner must reduce the next aid payment occurring in 30 days or more by the amount
overpaid.
new text end

new text begin (c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality or independent nonprofit firefighting corporation over
a period of no more than three years. An additional distribution to a municipality or
independent nonprofit firefighting corporation must be paid from the general fund and must
not diminish the payments made to other municipalities or independent nonprofit firefighting
corporations under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2019 Supplement, section 477C.02, subdivision 4, is amended
to read:

Subd. 4.

Penalty for failure to file new text begin or correct new text end certification.

(a) If a certification under
subdivision 1 or 2 is not filed with the commissioner on or before March deleted text begin 15 deleted text end new text begin 1 new text end , the
commissioner must notify the municipal clerk, municipal clerk-treasurer, or county auditor
that a penalty deleted text begin equal to a portion or all of its current year aid will apply if the certification
is not received within ten days deleted text end new text begin will be deducted from police state aid certified for the current
year if the certification is not filed on or before March 15 new text end .

new text begin (b) If the commissioner rejects the certification under subdivision 1 or 2 for inaccurate
or incomplete information, the municipal clerk, municipal clerk-treasurer, or county auditor
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection.
new text end

deleted text begin (b) deleted text end new text begin (c) A penalty applies to (1) a certification under subdivisions 1 and 2 filed after
March 15 and (2) a corrective certification under paragraph (b) filed after March 15 that is
also filed more than 30 days after the date on the notice of rejection. new text end The penalty deleted text begin for failure
to file the certification under subdivision 1 or 2 deleted text end is equal to the amount of police state aid
determined for the municipality for the current year, multiplied by deleted text begin five deleted text end new text begin ten new text end percent for each
week or fraction of a week that the certification new text begin or corrective certification new text end is deleted text begin late deleted text end new text begin filed after
March 15 new text end . deleted text begin The penalty must be computed beginning ten days after the postmark date of the
commissioner's notification as required under this subdivision. deleted text end All aid amounts forfeited
as a result of the penalty revert to the state general fund. Failure to receive the certification
form may not be used as a defense for a failure to file.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2019 Supplement, section 477C.03, subdivision 2, is amended
to read:

Subd. 2.

Apportionment of police state aid.

(a) The total amount available for
apportionment as police state aid is equal to 104 percent of the amount of premium taxes
paid to the state on the premiums reported to the commissioner by companies or insurance
companies on the Minnesota Aid to Police Premium Report. The total amount for
apportionment for the police state aid program must not be less than two percent of the
amount of premiums reported to the commissioner by companies or insurance companies
on the Minnesota Aid to Police Premium Report.

(b) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.

(c) In addition to the amount for apportionment of police state aid under paragraph (a),
each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
this increase is annually appropriated from the general fund.

(d) The commissioner must apportion police state aid to all municipalities in proportion
to the relationship that the total number of peace officers employed by that municipality for
the prior calendar year and the proportional or fractional number who were employed less
than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears
to the total number of peace officers employed by all municipalities subject to any reduction
under subdivision 3.

deleted text begin (e) Any necessary additional adjustments must be made to subsequent police state aid
apportionments.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2019 Supplement, section 477C.03, subdivision 5, is amended
to read:

Subd. 5.

Appeal.

A municipality may object to the amount of police state aid apportioned
to it by filing a written request with the commissioner to review and adjust the apportionment
of funds to the municipality. new text begin The objection of a municipality must be filed with the
commissioner within 60 days of the date the amount of apportioned police state aid is paid. new text end
The decision of the commissioner is subject to appeal, review, and adjustment by the district
court in the county in which the applicable municipality is located or by the Ramsey County
District Court with respect to the Departments of Natural Resources or Public Safety.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 24.

Minnesota Statutes 2019 Supplement, section 477C.04, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Aid amount corrections. new text end

new text begin (a) An adjustment needed to correct a police state
aid overpayment or underpayment due to a clerical error must be made to subsequent police
state aid payments as provided in paragraphs (b) and (c). The authority to correct an aid
payment under this subdivision is limited to three years after the payment was issued.
new text end

new text begin (b) If the adjustment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality is to receive by the amount overpaid
over a period of no more than three years. If the adjustment equals or is less than ten percent
of the most recently paid aid amount, the commissioner must reduce the next aid payment
occurring in 30 days or more by the amount overpaid.
new text end

new text begin (c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality over a period of no more than three years. An additional
distribution to a municipality must be paid from the general fund and must not diminish the
payments made to other municipalities under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2019 Supplement, sections 477B.02, subdivision 4; and 477B.03,
subdivision 6, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2021
and thereafter.
new text end

ARTICLE 3

MISCELLANEOUS

Section 1.

Minnesota Statutes 2019 Supplement, section 270C.22, subdivision 1, is amended
to read:

Subdivision 1.

Adjustment; definition; period; rounding.

(a) The commissioner shall
annually make a cost of living adjustment to the dollar amounts noted in sections that
reference this section. The commissioner shall adjust the amounts based on the index as
provided in this section. For purposes of this section, "index" means the Chained Consumer
Price Index for All Urban Consumers published by the Bureau of Labor Statistics. The
values of the index used to determine the adjustments under this section are the latest
published values when the Bureau of Labor Statistics publishes the initial value of the index
for August of the year preceding the year to which the adjustment applies.

(b) For the purposes of this section, "statutory year" means the year preceding the first
year for which dollar amounts are to be adjusted for inflation under sections that reference
this section. For adjustments under chapter 290A, the statutory year refers to the year in
which a taxpayer's household income used to calculate refunds under chapter 290A was
earned and not the year in which refunds are payable. For all other adjustments, the statutory
year refers to the taxable year unless otherwise specified.

(c) To determine the dollar amounts for taxable year 2020, the commissioner shall
determine the percentage change in the index for the 12-month period ending on August
31, 2019, and increase each of the unrounded dollar amounts in the sections referencing
this section by that percentage change. For each subsequent taxable year, the commissioner
shall increase the dollar amounts by the percentage change in the index from August 31 of
the year preceding the statutory year to August 31 of the year preceding the taxable year.

(d) To determine the dollar amounts for refunds payable in 2020 under chapter 290A,
the commissioner shall determine the percentage change in the index for the 12-month
period ending on August 31, 2019, and increase each of the unrounded dollar amounts in
the sections referencing this section by that percentage change. For each subsequent year,
the commissioner shall increase the dollar amounts by the percentage change in the index
from August 31 of the deleted text begin year preceding the deleted text end statutory year to August 31 of the year preceding
the year in which refunds are payable.

(e) Unless otherwise provided, the commissioner shall round the amounts as adjusted
to the nearest $10 amount. If an amount ends in $5, the amount is rounded up to the nearest
$10 amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property tax refunds based on property
taxes payable in 2020, and rent paid in 2019.
new text end

Sec. 2.

Minnesota Statutes 2019 Supplement, section 290A.19, is amended to read:

290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.

(a) The owner or managing agent of any property for which rent is paid for occupancy
as a homestead must furnish a certificate of rent paid to a person who is a renter on December
31, in the form prescribed by the commissioner. If the renter moves before December 31,
the owner or managing agent may give the certificate to the renter at the time of moving,
or mail the certificate to the forwarding address if an address has been provided by the
renter. The certificate must be made available to the renter before February 1 of the year
following the year in which the rent was paid. The owner or managing agent must retain a
duplicate of each certificate or an equivalent record showing the same information for a
period of three years. The duplicate or other record must be made available to the
commissioner upon request.

(b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
the content, format, and manner of the form pursuant to section 270C.30. new text begin The commissioner
may require the Social Security number, individual taxpayer identification number, federal
employer identification number, or Minnesota taxpayer identification number of the owner
or managing agent who is required to furnish a certificate of rent paid under this paragraph.
new text end Prior to implementation, the commissioner, after consulting with representatives of owners
or managing agents, shall develop an implementation and administration plan for the
requirements of this paragraph that attempts to minimize financial burdens, administration
and compliance costs, and takes into consideration existing systems of owners and managing
agents.

(c) For the purposes of this section, "owner" includes a park owner as defined under
section 327C.01, subdivision 6, and "property" includes a lot as defined under section
327C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for certificates of rent paid furnished to
a renter for rent paid after December 31, 2019.
new text end

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 270C.17, subdivision 2, 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 the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Statutes: 20-7168

270C.17 COMMISSIONER TO COLLECT CERTAIN LOCAL TAXES.

Subd. 2.

Development costs.

If the commissioner determines that a new computer system will be required to collect the local taxes, the costs of development of the system will be charged to the first local units of government to be included in the system. Any additional local units of government that by agreement are added to the system will be charged for a share of the development costs. The charge will be determined by the commissioner who shall then refund to the original local units of government their portion of the development costs recovered from the additional users.

477B.02 QUALIFYING FOR FIRE STATE AID.

Subd. 4.

Equipment requirements.

The fire department must have all of the following equipment, or the equivalent as determined by the state fire marshal, by December 31 of the year preceding the certification required in subdivision 8:

(1) a motorized fire truck equipped with:

(i) a motorized pump;

(ii) a 250-gallon or larger water tank;

(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and straight stream nozzles;

(iv) five-gallon hand pumps - tank extinguisher or equivalent;

(v) a dry chemical extinguisher or equivalent;

(vi) ladders;

(vii) extension ladders;

(viii) pike poles;

(ix) crowbars;

(x) axes;

(xi) lanterns; and

(xii) fire coats, helmets, and boots;

(2) the items in clause (1) suitably housed in a building of good construction with facilities for care of hoses and equipment;

(3) a reliable and adequate method of receiving fire alarms by telephone or with electric siren and suitable means of sounding an alarm; and

(4) if response is to be provided outside the corporate limits of the municipality where the fire department is located, another piece of motorized apparatus to make the response.

477B.03 CALCULATION OF FIRE STATE AID; APPEAL.

Subd. 6.

Corrective aid adjustments.

Any adjustments needed to correct prior misallocations must be made to subsequent fire state aid apportionments.