1.1                          A bill for an act
  1.2             relating to local government finance; creating a local 
  1.3             performance aid program; promoting local government 
  1.4             efficiency and effectiveness; appropriating money; 
  1.5             proposing coding for new law in Minnesota Statutes, 
  1.6             chapter 477A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [477A.05] [LOCAL PERFORMANCE AID.] 
  1.9      Subdivision 1.  [QUALIFICATION.] By April 30, 1996, and 
  1.10  March 31 of each year thereafter, the commissioner shall send a 
  1.11  local performance aid qualification form to each county and city 
  1.12  in the state.  Jurisdictions that are eligible to receive the 
  1.13  aid must return the completed form by June 30 in order to 
  1.14  receive aid in the following calendar year.  For each 
  1.15  determinator specified in subdivision 2, the form shall have a 
  1.16  space for the jurisdiction to indicate that it has satisfied the 
  1.17  conditions of the determinator.  For counties, the form must be 
  1.18  signed by the chair of the county board.  For cities, the form 
  1.19  must be signed by the mayor and the president of the city 
  1.20  council. 
  1.21     Subd. 2.  [ELIGIBILITY DETERMINATOR.] For calendar year 
  1.22  1997 and subsequent calendar years, a jurisdiction is eligible 
  1.23  to receive local performance aid if the jurisdiction affirms 
  1.24  that it has developed a system of performance measures for the 
  1.25  services provided by the jurisdiction, and that these measures 
  1.26  are regularly compiled and presented to the county board or the 
  2.1   city council at least once a year.  A jurisdiction is also 
  2.2   eligible for aid under this determinator if it affirms that it 
  2.3   is in the process of developing and implementing a system of 
  2.4   performance measures; however, eligibility based upon being in 
  2.5   the process of development may not be used for more than two 
  2.6   consecutive years. 
  2.7      Subd. 3.  [DETERMINATION OF AID AMOUNT.] The commissioner 
  2.8   shall sum the populations of all jurisdictions that have met the 
  2.9   condition specified in subdivision 2.  The commissioner shall 
  2.10  determine a per capita aid amount by dividing the aggregate aid 
  2.11  available under subdivision 5 by the sum of the populations for 
  2.12  all qualifying jurisdictions, separately for counties and 
  2.13  cities.  Each jurisdiction shall then be eligible for aid equal 
  2.14  to the jurisdictions's population times the per capita aid 
  2.15  amount.  For purposes of this subdivision, population means the 
  2.16  population according to the most recent estimate of the state 
  2.17  demographer. 
  2.18     Subd. 4.  [NOTIFICATION AND PAYMENT.] Jurisdictions shall 
  2.19  be notified of their aid under this section at the same time as 
  2.20  the notification for aid under section 477A.014, subdivision 1.  
  2.21  Payments of aid under this section shall be made on the dates 
  2.22  prescribed in section 477A.015. 
  2.23     Subd. 5.  [APPROPRIATION.] For payments to counties under 
  2.24  this section, there is annually appropriated from the general 
  2.25  fund to the commissioner of revenue an amount equal to the 
  2.26  amount by which county aids were reduced under section 2, 
  2.27  adjusted for inflation as provided under section 477A.03, 
  2.28  subdivision 3.  For payments to cities under this section, there 
  2.29  is annually appropriated from the general fund to the 
  2.30  commissioner of revenue an amount equal to the amount by which 
  2.31  city aids were reduced under section 2, adjusted for inflation 
  2.32  as provided under section 477A.03, subdivision 3. 
  2.33     Sec. 2.  [AID REDUCTION.] 
  2.34     Calendar year 1997 aids to counties and cities under 
  2.35  section 273.1398, subdivision 2, shall be permanently reduced by 
  2.36  an amount equal to $2 times the population of the jurisdiction, 
  3.1   according to the most recent estimate of the state demographer. 
  3.2      Sec. 3.  [EFFECTIVE DATE.] 
  3.3      Sections 1 and 2 are effective for aids payable in 1997 and 
  3.4   subsequent years.