HF 4673

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/15/2020 10:28am

A bill for an act
relating to local government aid; providing aid and grants to counties, cities, and
towns to fund expenses related to COVID-19; appropriating money from the
coronavirus relief federal fund.

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

Section 1. new text begin CORONAVIRUS RELIEF FUND; LOCAL GOVERNMENT
DISTRIBUTIONS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms in this
subdivision have the meanings given them.
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new text begin (b) "Commissioner" means the commissioner of revenue.
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new text begin (c) "City" means a statutory or home rule charter city.
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new text begin (d) "Eligible city" means a city with a population of 500 or more.
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new text begin (e) "Eligible county" means a Minnesota county with a population less than 500,000.
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new text begin (f) "Eligible town" means an organized town with a population of 500 or more.
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new text begin (g) "Emergency financial assistance" means assistance to individuals and families directly
impacted by a loss of income due to COVID-19. Emergency financial assistance includes
but is not limited to amounts used to help pay overdue rent or mortgage to prevent eviction
or foreclosure or unexpected funeral costs.
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new text begin (h) "Economic support" means assistance to small businesses with costs of business
interruptions caused by required closures due to COVID-19. Economic support includes
but is not limited to assistance to businesses that close voluntarily to promote social distancing
guidelines and businesses impacted by decreased customer demand as a result of the
COVID-19 health emergency.
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new text begin (i) "Local government" means a city, county, or town.
new text end

new text begin (j) "Population" means the most recently available 2018 population estimate from the
state demographer as of May 1, 2020.
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new text begin Subd. 2. new text end

new text begin Local government distribution amounts. new text end

new text begin (a) The distribution amount for an
eligible town equals $25 multiplied by the town's total population.
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new text begin (b) The distribution for an eligible city is equal to a dollar amount per capita that is the
same for all eligible cities. The commissioner shall determine the per capita dollar amount
so that the total paid under this paragraph is equal to the amount available under subdivision
9, paragraph (b), minus the amount paid under paragraph (a).
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new text begin (c) The distribution amount for an eligible county is equal to the sum of: (1) a dollar
amount multiplied by the total county population; and (2) $21.91 multiplied by the population
within the county located outside of an eligible city or town. The dollar amount in clause
(1) shall be the same amount for all eligible counties and shall be determined by the
commissioner so that the total paid under this paragraph is equal to the amount available
under subdivision 9, paragraph (c).
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new text begin Subd. 3. new text end

new text begin Distribution schedule. new text end

new text begin The commissioner must distribute the amounts calculated
under subdivision 2 no later than June 15, 2020.
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new text begin Subd. 4. new text end

new text begin Allowed uses. new text end

new text begin (a) A local government must use aid distributions under this
section for purposes consistent with the requirements of title V of Public Law 116-136.
Prior to distributing the aid, the commissioner must require each eligible local government
to certify its intent to comply with the requirements of this section. The certification must
be in the form and manner determined by the commissioner.
new text end

new text begin (b) Notwithstanding paragraph (a), a county must use at least 18 percent of the aid it
receives under this section for emergency financial assistance to individuals and families
or for economic support to businesses.
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new text begin (c) A city or town with a population less than 500 may apply to a county for a grant, to
be paid from the county aid distribution under subdivision 2 to cover costs incurred by the
city or town that are allowed uses under paragraph (a). The county may require the city or
town to provide sufficient information to demonstrate that the cost incurred meets the
requirements of title V of Public Law 116-136. Upon appropriate documentation, the county
must make a grant of up to the lesser of: (1) $25 multiplied by the population of the city or
town located in the county; or (2) the amount of documented allowed costs. The county, at
its discretion, may increase the grant above this amount, but to no more than the amount of
documented allowed costs. Any application for a grant under this paragraph must be made
no later than September 1, 2020, and any grants made under this subdivision must be paid
to the city or town no later than September 20, 2020.
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new text begin Subd. 5. new text end

new text begin Local government collaborative agreements. new text end

new text begin A local government may enter
into a collaborative agreement with one or more other local governments to share aid
distributions under this section, consistent with subdivision 4. The commissioner may require
each local government to provide information about the agreement in the form and manner
determined by the commissioner.
new text end

new text begin Subd. 6. new text end

new text begin Expenditure time limits. new text end

new text begin (a) Any aid amount remaining unencumbered by a
local government on October 1, 2020, must be returned to the commissioner and is canceled
to the coronavirus relief federal fund.
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new text begin (b) Notwithstanding paragraph (a), any aid amount remaining unexpended by a local
government on December 15, 2020, for a local government that has entered into a
collaborative agreement under subdivision 5 must be returned to the commissioner and is
canceled to the coronavirus relief federal fund.
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new text begin Subd. 7. new text end

new text begin Repayment of improperly spent federal funds. new text end

new text begin (a) The commissioner must
recoup money from a local government that receives aid under this section if:
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new text begin (1) the Inspector General of the Department of the Treasury has determined that the state
of Minnesota is subject to recoupment of funds under title V of Public Law 116-136; and
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new text begin (2) the recoupment is the result of the failure of a local government to expend money
distributed under this section consistent with the requirements of title V of Public Law
116-136.
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new text begin (b) The commissioner must certify the amount to be repaid by each local government.
The amount of the repayment required from each local government must be equal to the
state recoupment amount attributable to that local government. For the purpose of this
paragraph, "state recoupment amount" means the total of the amounts determined under
paragraph (a).
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new text begin (c) If a local government fails to repay the required amount to the state in full within 90
days of the commissioner's certification under paragraph (b), the local government must
include in its next certified levy amount under Minnesota Statutes, section 275.07, an amount
sufficient to fully repay the amount owed. The portion of the levy attributable to repayment
under this subdivision is a special levy for the purposes of Minnesota Statutes, section
275.70, subdivision 5. The local government must repay the commissioner in full no later
than December 15 of the year in which the taxes are payable.
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new text begin (d) Any amounts recouped by the state must be credited to the fund from which the state
paid the amounts recouped by the Department of the Treasury.
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new text begin Subd. 8. new text end

new text begin Onetime grants. new text end

new text begin (a) The commissioner may make onetime grants to a local
government from the money allotted under subdivision 9, paragraph (d). The grants may
be used for any allowed purpose under title V of Public Law 116-136, but preference shall
be given to the following purposes:
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new text begin (1) to a city, town, or county with high outbreaks of coronavirus;
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new text begin (2) to a city, town, or county with new and unanticipated costs associated with
COVID-19; and
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new text begin (3) to a city, town, or county establishing or conducting a recovery project or a recovery
coordination office related to the effects of COVID-19.
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new text begin (b) The commissioner of revenue may consult with the commissioner of health and the
commissioner of employment and economic development to develop guidelines and forms
for accepting applications and awarding grants under this subdivision by July 15, 2020. The
grant application must include a plan for spending the grant. Applications may be taken
from August 1, 2020, through December 1, 2020. Grants may only be expended for costs
incurred by the local government during the period beginning March 1, 2020, and ending
December 30, 2020. Any unencumbered amount must be returned to the commissioner of
revenue by December 30, 2020, and is canceled to the coronavirus relief federal fund.
new text end

new text begin Subd. 9. new text end

new text begin Appropriations. new text end

new text begin (a) $667,156,931 in fiscal year 2020 is appropriated from the
coronavirus relief federal fund to the commissioner of revenue for aid distributions and
grants under this section. This is a onetime appropriation but the portion allocated for grants
under paragraph (d) may be used through December 30, 2020.
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new text begin (b) A total of $255,187,800 of the appropriation in paragraph (a) must be used for aids
to eligible towns and cities under subdivision 2, paragraphs (a) and (b).
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new text begin (c) A total of $311,896,090 of the appropriation in paragraph (a) must be used for aids
to eligible counties under subdivision 2, paragraph (c).
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new text begin (d) The remainder of the appropriation under paragraph (a), after payments to eligible
towns, cities, and counties, shall be retained by the commissioner and used to make grants
under subdivision 8.
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new text begin EFFECTIVE DATE. new text end

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