SF 749

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 02/16/2021 09:25am

A bill for an act
relating to local government aid; authorizing the commissioner of revenue to adjust
local government aid amounts for cities and counties 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 (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "City" has the meaning given in section 477A.011.
new text end

new text begin (c) "Local government" means a county or a city.
new text end

new text begin (d) "Unpaid amount" means an amount that is owed to a local government by another
local government under section 12.331, subdivision 2, or an amount that is owed to a local
government by another local government under the terms of a written mutual aid agreement
under section 12.27. Unpaid amount does not include:
new text end

new text begin (1) an amount attributable to local assistance activities occurring before January 1, 2021;
new text end

new text begin (2) an amount under a written mutual aid agreement that specifies a schedule for payment
of amounts due; or
new text end

new text begin (3) an amount 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 local
government 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 sections 477A.011 to 477A.03.
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 local government as of the date
of the application, identify the local government that owes the amount, and include any
other information required by the state auditor. If the unpaid amount is owed under the
terms of a written mutual aid agreement, the application must include a copy of the written
agreement. The state auditor may request information from a local government 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
sections 477A.011 to 477A.03 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 local government by the sum of the
certified unpaid amounts owed by that local government for the previous calendar year. A
local government's aid payment after adjustment under this paragraph may not be less than
zero. If the local government's aid payment under sections 477A.011 to 477A.03 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 local government.
new text end

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