SF 2757

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/21/2025 10:01 a.m.

A bill for an act
relating to housing; creating local government grant account; establishing grant
programs for local governments to pay for certain costs of federal action;
appropriating money.

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

Section 1. new text begin LOCAL GOVERNMENT GRANTS; LEGAL EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "local government" means a
county, home rule charter or statutory city, township, or school district.
new text end

new text begin Subd. 2. new text end

new text begin Local government legal grant account. new text end

new text begin The commissioner of management
and budget must establish the local government legal grant account in the special revenue
fund.
new text end

new text begin Subd. 3. new text end

new text begin Transfer. new text end

new text begin On July 1, 2025, the commissioner of management and budget must
transfer $10,000,000 from the budget reserve account established in Minnesota Statutes,
section 16A.152, subdivision 1a, to the local government legal grant account.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin Funds in the local government legal grant account are
appropriated in fiscal year 2026 to the commissioner of revenue to make grants to local
governments for eligible costs in subdivision 6. The commissioner of revenue may transfer
money in the local government grant account to the commissioner of education to distribute
grants to school districts that have been awarded a grant under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Application; award. new text end

new text begin A local government may apply to the commissioner of
revenue for a grant from the local government legal grant account to pay for eligible costs
under subdivision 6. A local government may apply to the commissioner for a grant in a
form and manner prescribed by the commissioner. The commissioner must allocate grants
on a first-come, first-served basis.
new text end

new text begin Subd. 6. new text end

new text begin Grants use. new text end

new text begin Money in the local government legal grant account must be used
to reimburse a local government for eligible costs incurred by a local government. Eligible
costs include actual local government legal costs that were incurred to address the
implications of federal executive orders, including:
new text end

new text begin (1) continuing special education services;
new text end

new text begin (2) providing programs that reduce disparities;
new text end

new text begin (3) challenging federal censorship or segregation orders; or
new text end

new text begin (4) upholding state law that conflicts with a federal executive order that was made
effective after January 19, 2025.
new text end

new text begin No individual grant to a local government may exceed $500,000.
new text end

new text begin Subd. 7. new text end

new text begin Unused balance. new text end

new text begin Any balance remaining in the local government legal grant
account after July 1, 2026, must be transferred to the budget reserve account by July 15,
2026.
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