SF 4564

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/17/2020 08:26am

A bill for an act
relating to local government aid; state government finance; appropriating money
from the coronavirus relief account in the federal fund for distributions to counties,
cities, and towns.

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

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

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.
new text end

new text begin (b) "Commissioner" means the commissioner of revenue.
new text end

new text begin (c) "Eligible city" means a city whose home county is an eligible county.
new text end

new text begin (d) "Eligible county" means a Minnesota county with a population less than 500,000.
new text end

new text begin (e) "Eligible town" means a town in an eligible county.
new text end

new text begin (f) "Population" means, for a city or a town, the most recently available 2018 population
estimate from the state demographer as of May 1, 2020. Population means, for a county,
the population as measured by the United States Census Bureau in 2019 and used to calculate
aid amounts under Public Law 116-136.
new text end

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 the greater of: (1) $2,500; or (2) the product of: (i) the town's population;
and (ii) $25.
new text end

new text begin (b) The distribution amount for an eligible city equals the greater of: (1) $5,000; or (2)
the product of: (i) the city's population; and (ii) $87.
new text end

new text begin (c) The distribution amount for an eligible county equals the difference between the
county initial distribution amount and the county subtraction amount. The county initial
distribution amount equals the product of: (1) the county's population; and (2) $174.49. The
county subtraction amount equals: (1) the sum of the distribution amounts attributable to
any eligible town in the county; plus (2) the sum of the distribution amounts attributable to
the population of any portion of an eligible city in the county.
new text end

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 this section no later than June 15, 2020.
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new text begin Subd. 4. new text end

new text begin Allowable uses. new text end

new text begin The local government must use aid distributions under this
section for purposes consistent with the requirements 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 Subd. 5. new text end

new text begin Local government collaborative agreement. 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 unexpended by the
local government on November 1, 2020, must be returned to the commissioner and is
canceled to the coronavirus relief account in the federal fund.
new text end

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

new text begin Subd. 7. new text end

new text begin Hennepin County and Ramsey County distributions to cities and
towns. new text end

new text begin Hennepin County and Ramsey County must distribute aid to cities and towns in the
county. The aid amounts for each city and town must be calculated by the county as if those
cities and towns were eligible for a distribution from the state under the formula provided
in subdivision 2, paragraphs (a) and (b). The county must distribute the amounts calculated
to cities and towns no later than the date indicated in subdivision 3. For a joint city having
any population in Hennepin County or Ramsey County, the county must distribute aid
attributable to the population of the portion of the joint city in the county.
new text end

new text begin Subd. 8. new text end

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

new text begin (a) For purposes of this
subdivision, "local government unit" means a county, city, or town.
new text end

new text begin (b) The commissioner must recoup money from a local government unit if:
new text end

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 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 unit to expend money
distributed under this section consistent with the requirements of Public Law 116-136.
new text end

new text begin (c) The commissioner must certify the amount to be repaid by each local government
unit. The amount of the repayment required from each local government unit must be equal
to the state recoupment amount attributable to that local government unit. For the purposes
of this paragraph, "state recoupment amount" means the total of the amounts determined
under paragraph (b).
new text end

new text begin (d) If a local government unit 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 unit
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 unit must repay the commissioner in
full no later than December 15 of the year in which the taxes are payable.
new text end

new text begin (e) 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.
new text end

new text begin Subd. 9. new text end

new text begin Appropriation. new text end

new text begin $667,156,931 in fiscal year 2020 is appropriated from the
coronavirus relief account in the federal fund to the commissioner of revenue for aid
distributions under this section. If the appropriation in this subdivision exceeds the amount
required to fund the distributions in this section, any remaining balance must cancel to the
coronavirus relief account in the federal fund. If the appropriation in this subdivision is less
than the amount to fund the distributions in this section, the commissioner must proportionally
reduce the per capita allowances in subdivision 2 and distribute the available appropriation.
This is a onetime appropriation.
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