HF 1052

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/11/2021 02:50pm

A bill for an act
relating to local government aid; authorizing the commissioner of revenue to adjust
local government aid amounts for cities with unpaid local assistance amounts;
proposing coding for new law in Minnesota Statutes, chapter 477A.

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

Section 1.

new text begin [477A.0177] ADJUSTMENT FOR UNPAID LOCAL ASSISTANCE
AMOUNTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin "Unpaid amount" means an amount that is not addressed in
a mutual aid agreement that is owed to a city by another city under section 12.331,
subdivision 2, as a result of local assistance activities occurring after December 31, 2020.
Unpaid amount does not include amounts reimbursed by the state under section 12.33,
subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Application to state auditor; certification of unpaid amounts. new text end

new text begin (a) Beginning
with financial statements due to the state auditor in 2022 and annually thereafter, a city that
is owed an unpaid amount attributable to activities occurring in the previous calendar year
may submit with its financial statements an application for an adjustment to the aid calculated
under section 477A.013.
new text end

new text begin (b) The application must be in the form and manner determined by the state auditor. The
application must indicate the unpaid amount owed to the city as of the date of the application,
identify the city that owes the amount, and include any other information required by the
state auditor. The state auditor may request information from a city reported to owe an
unpaid amount.
new text end

new text begin (c) Within 30 days of the application submission, the state auditor must determine the
unpaid amount owed, if any, and certify that amount to the commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Certified aid adjustments. new text end

new text begin (a) Notwithstanding any other law to the contrary,
beginning with aids payable in 2022, the commissioner of revenue must adjust aid under
section 477A.013 as provided in this subdivision. The adjustments must be made to the first
aid payment made after certification of the unpaid amount from the state auditor.
new text end

new text begin (b) The commissioner must reduce the aid paid to a city by the sum of the certified
unpaid amount owed by that city for the previous calendar year. A city's aid payment after
adjustment under this paragraph may not be less than zero. If the aid payment before
adjustment is less than the full amount of the adjustment under this paragraph, the remaining
balance of the adjustment must be applied to future aid payments until the total amount of
the adjustment has been subtracted from aid payments to the city.
new text end

new text begin (c) The commissioner must increase the aid paid to a city by the sum of the aid reductions
under paragraph (b) attributable to the certified unpaid amount owed to the city.
new text end

new text begin Subd. 4. new text end

new text begin Effect of adjustment on future aid. new text end

new text begin The commissioner must not consider the
adjustments under this section for the purpose of calculating aid payable in the year following
the adjustments.
new text end