HF 229

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; individual income; providing an
income tax checkoff to fund grants to members of the
National Guard and reserves who have incurred
financial need as the result of being ordered to
federal active service since 9/11; authorizing
administration by the adjutant general; appropriating
money; amending Minnesota Statutes 2004, section
190.09, subdivision 2; proposing coding for new law in
Minnesota Statutes, chapter 290.

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

Section 1.

Minnesota Statutes 2004, section 190.09,
subdivision 2, is amended to read:

Subd. 2.

Mission; efficiency.

It is part of the
department's mission that within the department's resources the
adjutant general shall endeavor to:

(1) prevent the waste or unnecessary spending of public
money;

(2) use innovative fiscal and human resource practices to
manage the state's resources and operate the department as
efficiently as possible;

(3) coordinate the department's activities wherever
appropriate with the activities of other governmental agencies;

(4) use technology where appropriate to increase agency
productivity, improve customer service, increase public access
to information about government, and increase public
participation in the business of government;

(5) utilize constructive and cooperative labor-management
practices to the extent otherwise required by chapters 43A and
179A;

(6) report to the legislature on the performance of agency
operations and the accomplishment of agency goals in the
agency's biennial budget according to section 16A.10,
subdivision 1; deleted text begin and
deleted text end

(7) recommend to the legislature appropriate changes in law
necessary to carry out the mission and improve the performance
of the department new text begin ; and
new text end

new text begin (8) administer checkoff funds as provided in section
290.433 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004.
new text end

Sec. 2.

new text begin [290.433] NATIONAL GUARD AND RESERVES CHECKOFF.
new text end

new text begin Subdivision 1. new text end

new text begin Checkoff established. new text end

new text begin Every individual
who files an income tax return may designate on their original
return that $1 or more shall be added to the tax or deducted
from the refund that would otherwise be payable by or to that
individual and paid into a Minnesota military families relief
account established in the special revenue fund. The
commissioner of revenue shall, on the income tax return, notify
filers of their right to designate that a portion of their tax
or refund shall be paid into the Minnesota military families
relief account. Amounts so designated to be paid shall be
credited to the account as returns are processed, in as timely a
manner as practical. All interest earned on money accrued,
gifts to the program, contributions to the program, and
reimbursements of expenditures shall be credited to the
account. All money in the account is appropriated to the
adjutant general of the Department of Military Affairs for the
purpose of making grants as specified in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) The adjutant general is authorized
to expend any money appropriated from the Minnesota military
families relief account in the special revenue fund for the
purpose of making grants:
new text end

new text begin (1) directly to eligible individuals; or
new text end

new text begin (2) to one or more eligible foundations for the purpose of
making grants to eligible individuals, as provided in this
section.
new text end

new text begin (b) The term, "eligible individual" includes any Minnesota
resident who is:
new text end

new text begin (1) a member of the Minnesota National Guard or other
United States armed forces reserves who has been ordered to
federal active service since September 11, 2001, and has a
financial need as a result of that service;
new text end

new text begin (2) the spouse or dependent child of a person described in
clause (1); or
new text end

new text begin (3) the surviving spouse or surviving dependent child of a
person described in clause (1).
new text end

new text begin To be an eligible individual, a person described in clause
(2) or (3) must be residing within the state of Minnesota.
new text end

new text begin (c) The term "eligible foundation" includes any
organization that:
new text end

new text begin (1) is a tax-exempt organization under section 501(c)(3) of
the Internal Revenue Code;
new text end

new text begin (2) has articles of incorporation under chapter 317A
specifying the purpose of the organization as including the
provision of financial assistance to members of the Minnesota
National Guard and other United States armed forces reserves and
their families and survivors; and
new text end

new text begin (3) agrees in writing to distribute any grant money
received from the adjutant general under this section to
eligible individuals as defined in this section and in
accordance with any written policies and rules the adjutant
general may impose as conditions of the grant to the foundation.
new text end

new text begin (d) The maximum grant awarded to an eligible individual in
a calendar year with funds from the Minnesota military families
relief account, either through an eligible institution or
directly from the adjutant general, may not exceed $2,000.
new text end

new text begin (e) The state pledges and agrees with all contributors to
the account to use the contributed funds solely for the purpose
of providing assistance to eligible individuals.
new text end

new text begin (f) The state further agrees that it will not impose
additional conditions or restrictions that will limit or
otherwise restrict the ability of the adjutant general to award
grants under this section.
new text end

new text begin (g) For purposes of this section, the term "federal active
service" has the meaning given in section 190.05, subdivision
5c, but excludes service performed exclusively for purposes of:
new text end

new text begin (1) basic combat training, advanced individual training,
annual training, and periodic inactive duty training;
new text end

new text begin (2) special training periodically made available to reserve
members; and
new text end

new text begin (3) service performed in accordance with section 190.08,
subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Annual report. new text end

new text begin The adjutant general must report
by February 1, 2007, and each year thereafter, to the chairs and
ranking minority members of the legislative committees and
divisions with jurisdiction over military and veterans' affairs
on the number, amounts, and use of grants issued from the
Minnesota military families relief account in the previous year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for income tax
returns for taxable years beginning after December 31, 2004.
new text end

Sec. 3. new text begin INCOME TAX FORM.
new text end

new text begin In revising the individual income tax form M-1 to include
the checkoff in section 2, the commissioner must transfer the
least used additions and subtractions from form M-1 to form M-1M
as necessary so that form M-1 does not exceed two pages in
length.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004.
new text end