1.1 	A bill for an act
1.2 	relating to local aid payments; providing for inflation adjustments to payments in 
1.3 	lieu of taxes for certain natural resource lands; appropriating money;amending 
1.4 	Minnesota Statutes 2012, sections 477A.12, subdivision 1; 477A.14, subdivision 
1.5 	1; proposing coding for new law in Minnesota Statutes, chapter 477A.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2012, section 477A.12, subdivision 1, is amended to read:
1.8 		Subdivision 1.Types of land; payments. (a) As an offset for expenses incurred 
1.9 	by counties and towns in support of natural resources lands, the following amounts are 
1.10 	annually appropriated to the commissioner of natural resources from the general fund for 
1.11 	transfer to the commissioner of revenue. The commissioner of revenue shall pay the 
1.12 	transferred funds to counties as required by sections 477A.11 to 477A.14. The amounts are:
1.13 	(1) for acquired natural resources land, $5.133, as adjusted for inflation under section 
1.14 	477A.135, multiplied by the total number of acres of acquired natural resources land or, 
1.15 	at the county's option three-fourths of one percent of the appraised value of all acquired 
1.16 	natural resources land in the county, whichever is greater;
1.17 	(2) $1.283, as adjusted for inflation under section 477A.135, multiplied by the 
1.18 	number of acres of county-administered other natural resources land;
1.19 	(3) $1.283, as adjusted for inflation under section 477A.135, multiplied by the total 
1.20 	number of acres of land utilization project land; and
1.21 	(4) 64.2 cents, as adjusted for inflation under section 477A.135, multiplied by the 
1.22 	number of acres of commissioner-administered other natural resources land located in 
1.23 	each county as of July 1 of each year prior to the payment year.
1.24 	(b) The amount determined under paragraph (a), clause (1), is payable for land 
1.25 	that is acquired from a private owner and owned by the Department of Transportation 
2.1 	for the purpose of replacing wetland losses caused by transportation projects, but only 
2.2 	if the county contains more than 500 acres of such land at the time the certification is 
2.3 	made under subdivision 2.

2.4 	EFFECTIVE DATE. This section is effective retroactively for aids payable in 
2.5 	calendar year 2012 and thereafter.

2.6 	Sec. 2. [477A.135] INFLATION ADJUSTMENT.
2.7 	In 2012 and each year thereafter, the amounts required to be adjusted for inflation 
2.8 	in sections 477A.12 and 477A.14, shall be increased to an amount equal to the amount 
2.9 	before the inflation adjustment multiplied by one plus the percentage increase in the 
2.10 	implicit price deflator for government consumption expenditures and gross investment for 
2.11 	state and local governments prepared by the Bureau of Economic Analysis of the United 
2.12 	States Department of Commerce for the period starting with the first quarter of 2011, and 
2.13 	ending with the third quarter of the calendar year prior to the year in which aid is paid. 
2.14 	These adjusted amounts must be rounded to the nearest one-tenth of a cent.

2.15 	EFFECTIVE DATE. This section is effective retroactively for aids payable in 
2.16 	calendar year 2012 and thereafter.

2.17 	Sec. 3. Minnesota Statutes 2012, section 477A.14, subdivision 1, is amended to read:
2.18 		Subdivision 1.General distribution. Except as provided in subdivision 2 or in 
2.19 	section 97A.061, subdivision 5, 40 percent of the total payment to the county shall be 
2.20 	deposited in the county general revenue fund to be used to provide property tax levy 
2.21 	reduction. The remainder shall be distributed by the county in the following priority:
2.22 	(a) 64.2 cents, as adjusted for inflation under section 477A.135, for each acre 
2.23 	of county-administered other natural resources land shall be deposited in a resource 
2.24 	development fund to be created within the county treasury for use in resource 
2.25 	development, forest management, game and fish habitat improvement, and recreational 
2.26 	development and maintenance of county-administered other natural resources land. Any 
2.27 	county receiving less than $5,000 annually for the resource development fund may elect to 
2.28 	deposit that amount in the county general revenue fund;
2.29 	(b) from the funds remaining, within 30 days of receipt of the payment to the county, 
2.30 	the county treasurer shall pay each organized township 51.3 cents, as adjusted for inflation 
2.31 	under section 477A.135, for each acre of acquired natural resources land and each acre of 
2.32 	land described in section 477A.12, subdivision 1, paragraph (b), and 12.8 cents, as adjusted 
2.33 	for inflation under section 477A.135, for each acre of other natural resources land and each 
3.1 	acre of land utilization project land located within its boundaries. Payments for natural 
3.2 	resources lands not located in an organized township shall be deposited in the county 
3.3 	general revenue fund. Payments to counties and townships pursuant to this paragraph shall 
3.4 	be used to provide property tax levy reduction, except that of the payments for natural 
3.5 	resources lands not located in an organized township, the county may allocate the amount 
3.6 	determined to be necessary for maintenance of roads in unorganized townships. Provided 
3.7 	that, if the total payment to the county pursuant to section 477A.12 is not sufficient to fully 
3.8 	fund the distribution provided for in this clause, the amount available shall be distributed 
3.9 	to each township and the county general revenue fund on a pro rata basis; and
3.10 	(c) any remaining funds shall be deposited in the county general revenue fund. 
3.11 	Provided that, if the distribution to the county general revenue fund exceeds $35,000, the 
3.12 	excess shall be used to provide property tax levy reduction.

3.13 	EFFECTIVE DATE. This section is effective retroactively for aids payable in 
3.14 	calendar year 2012 and thereafter.

3.15 	Sec. 4. 2012 PAYMENT ADJUSTMENT.
 3.16 	Any payment adjustments required by this act for payments in lieu of taxes for 
3.17 	calendar year 2012 shall be added to the calendar year 2013 payments under Minnesota 
3.18 	Statutes, section 477A.12. Distribution of the additional aid payments shall be added to 
3.19 	the calendar year 2013 distribution under Minnesota Statutes, section 477A.14.