1.1                          A bill for an act 
  1.2             relating to fire aid; changing the definition of 
  1.3             population for purposes of the aid apportionment; 
  1.4             amending Minnesota Statutes 2002, section 69.021, 
  1.5             subdivisions 7, 8. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 69.021, 
  1.8   subdivision 7, is amended to read: 
  1.9      Subd. 7.  [APPORTIONMENT OF FIRE STATE AID TO 
  1.10  MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (a) The commissioner 
  1.11  shall apportion the fire state aid relative to the premiums 
  1.12  reported on the Minnesota Firetown Premium Reports filed under 
  1.13  this chapter to each municipality and/or firefighters relief 
  1.14  association.  
  1.15     (b) The commissioner shall calculate an initial fire state 
  1.16  aid allocation amount for each municipality or fire department 
  1.17  under paragraph (c) and a minimum fire state aid allocation 
  1.18  amount for each municipality or fire department under paragraph 
  1.19  (d).  The municipality or fire department must receive the 
  1.20  larger fire state aid amount. 
  1.21     (c) The initial fire state aid allocation amount is the 
  1.22  amount available for apportionment as fire state aid under 
  1.23  subdivision 5, without inclusion of any additional funding 
  1.24  amount to support a minimum fire state aid amount under section 
  1.25  423A.02, subdivision 3, allocated one-half in proportion to the 
  2.1   population as shown in the last official statewide federal 
  2.2   census defined in subdivision 8 for each fire town and one-half 
  2.3   in proportion to the market value of each fire town, including 
  2.4   (1) the market value of tax exempt property and (2) the market 
  2.5   value of natural resources lands receiving in lieu payments 
  2.6   under sections 477A.11 to 477A.14, but excluding the market 
  2.7   value of minerals.  In the case of incorporated or municipal 
  2.8   fire departments furnishing fire protection to other cities, 
  2.9   towns, or townships as evidenced by valid fire service contracts 
  2.10  filed with the commissioner, the distribution must be adjusted 
  2.11  proportionately to take into consideration the crossover fire 
  2.12  protection service.  Necessary adjustments shall be made to 
  2.13  subsequent apportionments.  In the case of municipalities or 
  2.14  independent fire departments qualifying for the aid, the 
  2.15  commissioner shall calculate the state aid for the municipality 
  2.16  or relief association on the basis of the population and the 
  2.17  market value of the area furnished fire protection service by 
  2.18  the fire department as evidenced by duly executed and valid fire 
  2.19  service agreements filed with the commissioner.  If one or more 
  2.20  fire departments are furnishing contracted fire service to a 
  2.21  city, town, or township, only the population and market value of 
  2.22  the area served by each fire department may be considered in 
  2.23  calculating the state aid and the fire departments furnishing 
  2.24  service shall enter into an agreement apportioning among 
  2.25  themselves the percent of the population and the market value of 
  2.26  each service area.  The agreement must be in writing and must be 
  2.27  filed with the commissioner. 
  2.28     (d) The minimum fire state aid allocation amount is the 
  2.29  amount in addition to the initial fire state allocation amount 
  2.30  that is derived from any additional funding amount to support a 
  2.31  minimum fire state aid amount under section 423A.02, subdivision 
  2.32  3, and allocated to municipalities with volunteer firefighters 
  2.33  relief associations based on the number of active volunteer 
  2.34  firefighters who are members of the relief association as 
  2.35  reported in the annual financial reporting for the calendar year 
  2.36  1993 to the office of the state auditor, but not to exceed 30 
  3.1   active volunteer firefighters, so that all municipalities or 
  3.2   fire departments with volunteer firefighters relief associations 
  3.3   receive in total at least a minimum fire state aid amount per 
  3.4   1993 active volunteer firefighter to a maximum of 30 
  3.5   firefighters.  If a relief association is established after 
  3.6   calendar year 1993 and before calendar year 2000, the number of 
  3.7   active volunteer firefighters who are members of the relief 
  3.8   association as reported in the annual financial reporting for 
  3.9   calendar year 1998 to the office of the state auditor, but not 
  3.10  to exceed 30 active volunteer firefighters, shall be used in 
  3.11  this determination.  If a relief association is established 
  3.12  after calendar year 1999, the number of active volunteer 
  3.13  firefighters who are members of the relief association as 
  3.14  reported in the first annual financial reporting submitted to 
  3.15  the office of the state auditor, but not to exceed 20 active 
  3.16  volunteer firefighters, must be used in this determination. 
  3.17     (e) The fire state aid must be paid to the treasurer of the 
  3.18  municipality where the fire department is located and the 
  3.19  treasurer of the municipality shall, within 30 days of receipt 
  3.20  of the fire state aid, transmit the aid to the relief 
  3.21  association if the relief association has filed a financial 
  3.22  report with the treasurer of the municipality and has met all 
  3.23  other statutory provisions pertaining to the aid apportionment. 
  3.24     (f) The commissioner may make rules to permit the 
  3.25  administration of the provisions of this section.  
  3.26     (g) Any adjustments needed to correct prior misallocations 
  3.27  must be made to subsequent apportionments. 
  3.28     <b>[EFFECTIVE DATE.]</b> This section is effective for aids paid 
  3.29  in 2003 and thereafter. 
  3.30     Sec. 2.  Minnesota Statutes 2002, section 69.021, 
  3.31  subdivision 8, is amended to read: 
  3.32     Subd. 8.  [POPULATION AND MARKET VALUE.] In computations 
  3.33  relating to fire state aid requiring the use of population 
  3.34  figures, only official statewide federal census figures are to 
  3.35  be used.  Increases or decreases in population disclosed by 
  3.36  reason of any special census must not be taken into 
  4.1   consideration. "population" means the population established as 
  4.2   of July 1 in an aid calculation year by 
  4.3      (1) the most recent census, 
  4.4      (2) a special census conducted under contract with the 
  4.5   United States Bureau of the Census, 
  4.6      (3) a population estimate made by the metropolitan council, 
  4.7   or 
  4.8      (4) a population estimate of the state demographer made 
  4.9   pursuant to section 4A.02, 
  4.10  whichever is the most recent as to the stated date of the count 
  4.11  or estimate for the preceding calendar year. 
  4.12     In calculations relating to fire state aid requiring the 
  4.13  use of market value property figures, only the latest available 
  4.14  market value property figures may be used. 
  4.15     <b>[EFFECTIVE DATE.]</b> This section is effective for aids paid 
  4.16  in 2003 and thereafter.