1.1 A bill for an act
1.2 relating to taxation; making various policy and technical changes to the fire state
1.3 aid and police state aid programs; amending Minnesota Statutes 2022, sections
1.4 6.495, subdivision 3; 477B.01, subdivisions 5, 10, 11, by adding subdivisions;
1.5 477B.02, subdivisions 2, 3, 5, 8, 9, 10, by adding a subdivision; 477B.03,
1.6 subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding a subdivision; 477C.02,
1.7 subdivision 4; 477C.03, subdivisions 2, 5; 477C.04, by adding a subdivision;
1.8 repealing Minnesota Statutes 2022, sections 477B.02, subdivision 4; 477B.03,
1.9 subdivision 6.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 Section 1. Minnesota Statutes 2022, section 6.495, subdivision 3, is amended to read:
1.12 Subd. 3.Report Reports to commissioner of revenue.(a) On or before September 15,
1.13November 1, March 1, and June 1, the state auditor shall must file with the commissioner
1.14of revenue a financial compliance report certifying for each relief association:
1.15 (1) the completion of the annual financial report required under section 424A.014 and
1.16the auditing or certification of those financial reports under subdivision 1; and
1.17 (2) the receipt of any actuarial valuations required under section 424A.093 or Laws
1.182013, chapter 111, article 5, sections 31 to 42.
1.19 (b) The commissioner of revenue shall prescribe the content, format, and manner of the
1.20financial compliance reports required by paragraph (a), pursuant to section 270C.30.
1.21 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
1.22and thereafter.
1Section 1.
23-00669 as introduced12/01/22 REVISOR MS/HL
SENATE
STATE OF MINNESOTA
S.F. No. 361NINETY-THIRD SESSION
(SENATE AUTHORS: JASINSKI)
OFFICIAL STATUSD-PGDATE
Introduction and first reading01/17/2023
Referred to Taxes 2.1 Sec. 2. Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to
2.2read:
2.3 Subd. 1a.Apportionment agreement."Apportionment agreement" means an agreement
2.4between two or more fire departments that provide contracted fire protection service to the
2.5same municipality and establishes the percentage of the population and the percentage of
2.6the estimated market value within the municipality serviced by each fire department.
2.7 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
2.8and thereafter.
2.9 Sec. 3. Minnesota Statutes 2022, section 477B.01, subdivision 5, is amended to read:
2.10 Subd. 5.Fire department.(a) "Fire department" includes means:
2.11 (1) a municipal fire department and;
2.12 (2) an independent nonprofit firefighting corporation.;
2.13 (3) a fire department established as or operated by a joint powers entity; or
2.14 (4) a fire protection special taxing district established under chapter 144F or special law.
2.15 (b) This subdivision only applies to this chapter.
2.16 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
2.17and thereafter.
2.18 Sec. 4. Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to
2.19read:
2.20 Subd. 7a.Joint powers entity."Joint powers entity" means a joint powers entity created
2.21under section 471.59.
2.22 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
2.23and thereafter.
2.24 Sec. 5. Minnesota Statutes 2022, section 477B.01, subdivision 10, is amended to read:
2.25 Subd. 10.Municipality.(a) "Municipality" means:
2.26 (1) a home rule charter or statutory city;
2.27 (2) an organized town;
2.28 (3) a park district subject to chapter 398 a joint powers entity;
2Sec. 5.
23-00669 as introduced12/01/22 REVISOR MS/HL 3.1 (4) the University of Minnesota a fire protection special taxing district; and or
3.2 (5) an American Indian tribal government entity located within a federally recognized
3.3American Indian reservation.
3.4 (b) This subdivision only applies to this chapter 477B.
3.5 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
3.6and thereafter.
3.7 Sec. 6. Minnesota Statutes 2022, section 477B.01, subdivision 11, is amended to read:
3.8 Subd. 11.Secretary.(a) "Secretary" means:
3.9 (1) the secretary of an independent nonprofit firefighting corporation that has a subsidiary
3.10incorporated firefighters' relief association or whose firefighters participate in the statewide
3.11volunteer firefighter plan.; or
3.12 (2) the secretary of a joint powers entity or fire protection special taxing district or, if
3.13there is no such person, the person primarily responsible for managing the finances of a
3.14joint powers entity or fire protection special taxing district.
3.15 (b) This subdivision only applies to this chapter.
3.16 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
3.17and thereafter.
3.18 Sec. 7. Minnesota Statutes 2022, section 477B.02, subdivision 2, is amended to read:
3.19 Subd. 2.Establishment of fire department.(a) An independent nonprofit firefighting
3.20corporation must be created under the nonprofit corporation act of this state operating for
3.21the exclusive purpose of firefighting, or the governing body of a municipality must officially
3.22establish a fire department.
3.23 (b) The fire department must have provided firefighting services for at least one calendar
3.24year, and must have a current fire department identification number issued by the state fire
3.25marshal.
3.26 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
3.27and thereafter.
3.28 Sec. 8. Minnesota Statutes 2022, section 477B.02, subdivision 3, is amended to read:
3.29 Subd. 3.Personnel and Benefits requirements.(a) A fire department must have a
3.30minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
3Sec. 8.
23-00669 as introduced12/01/22 REVISOR MS/HL 4.1 (b) The fire department must have regular scheduled meetings and frequent drills that
4.2include instructions in firefighting tactics and in the use, care, and operation of all fire
4.3apparatus and equipment.
4.4 (c) (a) The fire department must have a separate subsidiary incorporated firefighters'
4.5relief association that provides retirement benefits or must participate in the statewide
4.6volunteer firefighter plan; or if the municipality solely employs full-time firefighters as
4.7defined in section 299N.03, subdivision 5, retirement coverage must be provided by the
4.8public employees police and fire retirement plan. For purposes of retirement benefits, a fire
4.9department may be associated with only one volunteer firefighters' relief association or one
4.10account in the voluntary statewide volunteer firefighter retirement plan at one time.
4.11 (d) (b) Notwithstanding paragraph (c) (a), a municipality without a relief association as
4.12described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if
4.13all other requirements of this section are met.
4.14 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
4.15and thereafter.
4.16 Sec. 9. Minnesota Statutes 2022, section 477B.02, is amended by adding a subdivision to
4.17read:
4.18 Subd. 4a.Public safety answering point requirement.The fire department must be
4.19dispatched by a public safety answering point as defined in section 403.02, subdivision 19.
4.20 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
4.21and thereafter.
4.22 Sec. 10. Minnesota Statutes 2022, section 477B.02, subdivision 5, is amended to read:
4.23 Subd. 5.Fire service contract or agreement; apportionment agreement filing
4.24requirement requirements.(a) Every municipality or independent nonprofit firefighting
4.25corporation must file a copy of any duly executed and valid fire service contract or agreement
4.26with the commissioner (1) a copy of any duly executed and valid fire service contracts, (2)
4.27written notification of any fire service contract terminations, and (3) written notification of
4.28any dissolution of a fire department, within 60 days of contract execution or termination,
4.29or department dissolution.
4.30 (b) If more than one fire department provides service to a municipality, the fire
4.31departments furnishing service must enter into an agreement apportioning among themselves
4.32the percentage of the population and the percentage of the estimated market value of each
4Sec. 10.
23-00669 as introduced12/01/22 REVISOR MS/HL 5.1shared service fire department service area. The agreement must be in writing and must be
5.2filed file an apportionment agreement with the commissioner.
5.3 (c) When a municipality is a joint powers entity, it must file its joint powers agreement
5.4with the commissioner. If the joint powers agreement does not include sufficient information
5.5defining the fire department service area of the joint powers entity for the purposes of
5.6calculating fire state aid, the secretary must file a written statement with the commissioner
5.7defining the fire department service area.
5.8 (d) When a municipality is a fire protection special taxing district, it must file its
5.9resolution establishing the fire protection special taxing district, and any agreements required
5.10for the establishment of the fire protection special taxing district, with the commissioner.
5.11If the resolution or agreement does not include sufficient information defining the fire
5.12department service area of the fire protection special taxing district, the secretary must file
5.13a written statement with the commissioner defining the fire department service area.
5.14 (e) The commissioner shall prescribe the content, format, and manner of the notifications,
5.15apportionment agreements, and written statements under paragraphs (a) to (d), pursuant to
5.16section 270C.30, except that copies of fire service contracts, joint powers agreements, and
5.17resolutions establishing fire protection special taxing districts shall be filed in their existing
5.18form.
5.19 (f) A document filed with the commissioner under this subdivision must be refiled any
5.20time it is updated within 60 days of the update. An apportionment agreement must be refiled
5.21only when a change in the averaged sum of the percentage of population and percentage of
5.22estimated market value serviced by a fire department subject to the apportionment agreement
5.23is at least one percent. The percentage amount must be rounded to the nearest whole
5.24percentage.
5.25 (g) Upon the request of the commissioner, the county auditor must provide information
5.26that the commissioner requires to accurately apportion the estimated market value of a fire
5.27department service area for a fire department providing service to an unorganized territory
5.28located in the county.
5.29 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
5.30and thereafter.
5.31 Sec. 11. Minnesota Statutes 2022, section 477B.02, subdivision 8, is amended to read:
5.32 Subd. 8.PERA certification to commissioner.On or before February 1 each year, if
5.33retirement coverage for a fire department is provided by the statewide volunteer firefighter
5Sec. 11.
23-00669 as introduced12/01/22 REVISOR MS/HL 6.1plan, the executive director of the Public Employees Retirement Association must certify
6.2the existence of retirement coverage. to the commissioner the fire departments that transferred
6.3retirement coverage to, or terminated participation in, the voluntary statewide volunteer
6.4firefighter retirement plan since the previous certification under this paragraph. This
6.5certification must include the number of active volunteer firefighters under section 477B.03,
6.6subdivision 5, paragraph (e).
6.7 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
6.8and thereafter.
6.9 Sec. 12. Minnesota Statutes 2022, section 477B.02, subdivision 9, is amended to read:
6.10 Subd. 9.Fire department certification to commissioner.On or before March 15 of
6.11each year, the municipal clerk or the secretary, and the fire chief, must jointly certify to the
6.12commissioner that the fire department exists and meets the qualification requirements of
6.13this section the fire department service area as of December 31 of the previous year, and
6.14that the fire department meets the qualification requirements of this section. The municipal
6.15clerk or the secretary must provide the commissioner with documentation that the
6.16commissioner deems necessary for determining eligibility for fire state aid or for calculating
6.17and apportioning fire state aid under section 477B.03. The certification must be on a form
6.18prescribed by the commissioner and must include all other information that the commissioner
6.19requires. The municipal clerk or the secretary must send a copy of the certification filed
6.20under this subdivision to the fire chief within five business days of the date the certification
6.21was filed with the commissioner.
6.22 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
6.23and thereafter.
6.24 Sec. 13. Minnesota Statutes 2022, section 477B.02, subdivision 10, is amended to read:
6.25 Subd. 10.Penalty for failure to file or correct certification.(a) If the certification
6.26under subdivision 9 is not filed with the commissioner on or before March 15 1, the
6.27commissioner must notify the municipal clerk or the secretary that a penalty equal to a
6.28portion or all of the current year aid will apply if the certification is not received within ten
6.29days of the postmark date of the notification will be deducted from fire state aid certified
6.30for the current year if the certification is not filed on or before March 15.
6.31 (b) If the commissioner rejects the certification by the municipal clerk or secretary under
6.32subdivision 9 for inaccurate or incomplete information, the municipal clerk or the secretary
6.33must file a corrective certification after taking corrective action as identified by the
6Sec. 13.
23-00669 as introduced12/01/22 REVISOR MS/HL 7.1commissioner in the notice of rejection. The corrective certification must be filed within
7.230 days of the date on the notice of rejection or by March 15, whichever date is later.
7.3 (b) (c) A penalty applies to (1) a certification under subdivision 9 filed after March 15,
7.4and (2) a corrective certification under paragraph (b) filed after March 15 that is also filed
7.5more than 30 days after the date on the notice of rejection. The penalty for failure to file
7.6the certification under subdivision 9 is equal to the amount of fire state aid determined for
7.7the municipality or the independent nonprofit firefighting corporation for the current year,
7.8multiplied by five ten percent for each week or fraction of a week that the certification or
7.9corrective certification is late filed after March 15 or more than 30 days after the date on
7.10the notice of rejection. The penalty must be computed beginning ten days after the postmark
7.11date of the commissioner's notification. Aid amounts forfeited as a result of the penalty
7.12revert to the state general fund. Failure to receive the certification form is not a defense for
7.13a failure to file.
7.14 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
7.15and thereafter.
7.16 Sec. 14. Minnesota Statutes 2022, section 477B.03, subdivision 2, is amended to read:
7.17 Subd. 2.Apportionment of fire state aid.(a) The amount of fire state aid available for
7.18apportionment, before the addition of the minimum fire state aid allocation amount under
7.19subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon
7.20the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
7.21commissioner by companies or insurance companies on the Minnesota Fire Premium Report,
7.22except that credits claimed under section 297I.20, subdivisions 3, 4, and 5, do not affect the
7.23calculation of the amount of fire state aid available for apportionment. This amount must
7.24be reduced by the amount required to pay the state auditor's costs and expenses of the audits
7.25or exams of the firefighters' relief associations.
7.26 (b) The total amount available for apportionment must not be less than two percent of
7.27the premiums less return premiums reported to the commissioner by companies or insurance
7.28companies on the Minnesota Fire Premium Report after subtracting the following amounts:
7.29 (1) the amount required to pay the state auditor's costs and expenses of the audits or
7.30exams of the firefighters' relief associations; and
7.31 (2) one percent of the premiums reported by township mutual insurance companies and
7.32mutual property and casualty companies with total assets of $5,000,000 or less.
7Sec. 14.
23-00669 as introduced12/01/22 REVISOR MS/HL 8.1 (c) The commissioner must apportion the fire state aid to each municipality or independent
8.2nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums
8.3reported on the Minnesota Fire Premium Reports filed under this chapter.
8.4 (d) The commissioner must calculate the percentage of increase or decrease reflected in
8.5the apportionment over or under the previous year's available state aid using the same
8.6premiums as a basis for comparison.
8.7 EFFECTIVE DATE.This section is effective the day following final enactment.
8.8 Sec. 15. Minnesota Statutes 2022, section 477B.03, subdivision 3, is amended to read:
8.9 Subd. 3.Population and estimated market value.(a) Official statewide federal census
8.10figures The most recent population estimates made by the state demographer pursuant to
8.11section 4A.02, paragraph (d), must be used in calculations requiring the use of population
8.12figures under this chapter. Increases or decreases in population disclosed by reason of any
8.13special census must not be taken into consideration.
8.14 (b) The latest available estimated market value property figures for the assessment year
8.15immediately preceding the year the aid is distributed must be used in calculations requiring
8.16the use of estimated market value property figures under this chapter.
8.17 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
8.18and thereafter.
8.19 Sec. 16. Minnesota Statutes 2022, section 477B.03, subdivision 4, is amended to read:
8.20 Subd. 4.Initial fire state aid allocation amount.(a) The initial fire state aid allocation
8.21amount is the amount available for apportionment as fire state aid under subdivision 2,
8.22without the inclusion of any additional funding amount to support a minimum fire state aid
8.23amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount
8.24is allocated one-half in proportion to the population for each fire department service area
8.25and one-half in proportion to the estimated market value of each fire department service
8.26area, including (1) the estimated market value of tax-exempt property, and (2) the estimated
8.27market value of natural resources lands receiving in lieu payments under sections 477A.11
8.28to 477A.14 and 477A.17. The estimated market value of minerals is excluded.
8.29 (b) In the case of a municipality or independent nonprofit firefighting corporation
8.30furnishing fire protection to other municipalities as evidenced by valid fire service contracts,
8.31joint powers agreements, resolutions, and other supporting documents filed with the
8.32commissioner under section 477B.02, subdivision 5, the distribution must be adjusted
8Sec. 16.
23-00669 as introduced12/01/22 REVISOR MS/HL 9.1proportionately to take into consideration the crossover fire protection service. Necessary
9.2adjustments must be made to subsequent apportionments.
9.3 (c) In the case of municipalities or independent nonprofit firefighting corporations
9.4qualifying for aid, the commissioner must calculate the state aid for the municipality or
9.5independent nonprofit firefighting corporation on the basis of the population and the estimated
9.6market value of the area furnished fire protection service by the fire department as evidenced
9.7by valid fire service agreements contracts, joint powers agreements, resolutions, and other
9.8supporting documents filed with the commissioner under section 477B.02, subdivision 5.
9.9 (d) In the case of more than one fire department furnishing contracted fire service to a
9.10municipality, the population and estimated market value in the apportionment agreement
9.11filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating
9.12the state aid.
9.13 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
9.14and thereafter.
9.15 Sec. 17. Minnesota Statutes 2022, section 477B.03, subdivision 5, is amended to read:
9.16 Subd. 5.Minimum fire state aid allocation amount.(a) The minimum fire state aid
9.17allocation amount is the amount derived from any additional funding amount to support a
9.18minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire
9.19state aid allocation amount is allocated to municipalities or independent nonprofit firefighting
9.20corporations with volunteer firefighters' relief associations or covered by the statewide
9.21volunteer firefighter plan. The amount is based on the number of active volunteer firefighters
9.22who are (1) members of the relief association as reported to the Office of the State Auditor
9.23in a specific annual financial reporting year as specified in paragraphs (b) to (d), or (2)
9.24covered by the statewide volunteer firefighter plan as specified in paragraph (e).
9.25 (b) For relief associations established in calendar year 1993 or a prior year, the number
9.26of active volunteer firefighters equals the number of active volunteer firefighters who were
9.27members of the relief association as reported in the annual financial reporting for calendar
9.28year 1993, but not to exceed 30 active volunteer firefighters.
9.29 (c) For relief associations established in calendar year 1994 through calendar year 1999,
9.30the number of active volunteer firefighters equals the number of active volunteer firefighters
9.31who were members of the relief association as reported in the annual financial reporting for
9.32calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer
9.33firefighters.
9Sec. 17.
23-00669 as introduced12/01/22 REVISOR MS/HL 10.1 (d) For relief associations established after calendar year 1999, the number of active
10.2volunteer firefighters equals the number of active volunteer firefighters who are members
10.3of the relief association as reported in the first annual financial reporting submitted to the
10.4Office of the State Auditor, but not to exceed 20 active volunteer firefighters.
10.5 (e) If a relief association is terminated as a result of For a municipality or independent
10.6nonprofit firefighting corporation that is providing retirement coverage for volunteer
10.7firefighters by the statewide volunteer firefighter plan under chapter 353G, the number of
10.8active volunteer firefighters equals the number of active volunteer firefighters of the
10.9municipality or independent nonprofit firefighting corporation covered by the statewide
10.10plan as certified by the executive director of the Public Employees Retirement Association
10.11to the commissioner and the state auditor within 30 days of the date the municipality or
10.12independent nonprofit firefighting corporation begins coverage in the plan, but not to exceed
10.1330 active firefighters.
10.14 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
10.15and thereafter.
10.16Sec. 18. Minnesota Statutes 2022, section 477B.03, subdivision 7, is amended to read:
10.17 Subd. 7.Appeal.A municipality, an independent nonprofit firefighting corporation, a
10.18fire relief association, or the statewide volunteer firefighter plan may object to the amount
10.19of fire state aid apportioned to it by filing a written request with the commissioner to review
10.20and adjust the apportionment of funds within the state. The objection of a municipality, an
10.21independent nonprofit firefighting corporation, a fire relief association, or the voluntary
10.22statewide volunteer firefighter retirement plan must be filed with the commissioner within
10.2360 days of the date the amount of apportioned fire state aid is paid. The decision of the
10.24commissioner is subject to appeal, review, and adjustment by the district court in the county
10.25in which the applicable municipality or independent nonprofit firefighting corporation is
10.26located or by the Ramsey County District Court with respect to the statewide volunteer
10.27firefighter plan.
10.28 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
10.29and thereafter.
10.30Sec. 19. Minnesota Statutes 2022, section 477B.04, subdivision 1, is amended to read:
10.31 Subdivision 1.Payments.(a) The commissioner must make payments to the Public
10.32Employees Retirement Association for deposit in the statewide volunteer firefighter fund
10.33on behalf of a municipality or independent nonprofit firefighting corporation that is a member
10Sec. 19.
23-00669 as introduced12/01/22 REVISOR MS/HL 11.1of the statewide volunteer firefighter plan under chapter 353G, or directly to a municipality
11.2or county designated by an independent nonprofit firefighting corporation. The commissioner
11.3must directly pay all other municipalities qualifying for fire state aid, except as provided in
11.4paragraph (d). The payment is equal to the amount of fire state aid apportioned to the
11.5applicable fire state aid recipient under section 477B.03.
11.6 (b) Fire state aid is payable on October 1 annually. The amount of state aid due and not
11.7paid by October 1 accrues interest payable to the recipient at the rate of one percent for each
11.8month or part of a month that the amount remains unpaid after October 1.
11.9 (c) If the commissioner of revenue does not receive a financial compliance report
11.10described in section 6.495, subdivision 3, for a relief association, the amount of fire state
11.11aid apportioned to a municipality or independent nonprofit firefighting corporation under
11.12section 477B.03 for that relief association must be withheld from payment to the Public
11.13Employees Retirement Association or the municipality. The commissioner of revenue must
11.14issue a withheld payment within ten business days of receipt of a financial compliance report
11.15under section 6.495, subdivision 3. The interest under paragraph (b) does not apply when
11.16to a payment has not been made by October 1 due to noncompliance with sections 424A.014
11.17and 477B.02, subdivision 7 withheld under this paragraph.
11.18 (d) The commissioner must make payments directly to the largest municipality in
11.19population located within any area included in a joint powers entity that does not have a
11.20designated agency under section 471.59, subdivision 3, or within the fire department service
11.21area of an eligible independent nonprofit firefighting corporation. If there is no city or town
11.22within the fire department service area of an eligible independent nonprofit firefighting
11.23corporation, fire state aid must be paid to the county where the independent nonprofit
11.24firefighting corporation is located.
11.25 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
11.26and thereafter.
11.27Sec. 20. Minnesota Statutes 2022, section 477B.04, is amended by adding a subdivision
11.28to read:
11.29 Subd. 4.Aid amount corrections.(a) An adjustment needed to correct a fire state aid
11.30overpayment or underpayment due to a clerical error must be made to subsequent fire state
11.31aid payments as provided in paragraphs (b) and (c). The authority to correct an aid payment
11.32under this subdivision is limited to three years after the payment was issued.
11Sec. 20.
23-00669 as introduced12/01/22 REVISOR MS/HL 12.1 (b) If an overpayment equals more than ten percent of the most recently paid aid amount,
12.2the commissioner must reduce the aid a municipality or independent nonprofit firefighting
12.3corporation is to receive by the amount overpaid over a period of no more than three years.
12.4If an overpayment equals or is less than ten percent of the most recently paid aid amount,
12.5the commissioner must reduce the next aid payment occurring in 30 days or more by the
12.6amount overpaid.
12.7 (c) In the event of an underpayment, the commissioner must distribute the amount of
12.8underpaid funds to the municipality or independent nonprofit firefighting corporation over
12.9a period of no more than three years. An additional distribution to a municipality or
12.10independent nonprofit firefighting corporation must be paid from the general fund and must
12.11not diminish the payments made to other municipalities or independent nonprofit firefighting
12.12corporations under this chapter.
12.13 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
12.14and thereafter.
12.15Sec. 21. Minnesota Statutes 2022, section 477C.02, subdivision 4, is amended to read:
12.16 Subd. 4.Penalty for failure to file or correct certification.(a) If a certification under
12.17subdivision 1 or 2 is not filed with the commissioner on or before March 15 1, the
12.18commissioner must notify the municipal clerk, municipal clerk-treasurer, or county auditor
12.19that a penalty equal to a portion or all of its current year aid will apply if the certification
12.20is not received within ten days will be deducted from police state aid certified for the current
12.21year if the certification is not filed on or before March 15.
12.22 (b) If the commissioner rejects the certification under subdivision 1 or 2 for inaccurate
12.23or incomplete information, the municipal clerk, municipal clerk-treasurer, or county auditor
12.24must file a corrective certification after taking corrective action as identified by the
12.25commissioner in the notice of rejection. The corrective certification must be filed within
12.2630 days of the date on the notice of rejection, or by March 15, whichever date is later.
12.27 (b) (c) A penalty applies to (1) a certification under subdivisions 1 and 2 filed after
12.28March 15, and (2) a corrective certification under paragraph (b) filed after March 15 that
12.29is also filed more than 30 days after the date on the notice of rejection. The penalty for
12.30failure to file the certification under subdivision 1 or 2 is equal to the amount of police state
12.31aid determined for the municipality for the current year, multiplied by five ten percent for
12.32each week or fraction of a week that the certification or corrective certification is late filed
12.33after March 15 or more than 30 days after the date on the notice of rejection. The penalty
12.34must be computed beginning ten days after the postmark date of the commissioner's
12Sec. 21.
23-00669 as introduced12/01/22 REVISOR MS/HL 13.1notification as required under this subdivision. All aid amounts forfeited as a result of the
13.2penalty revert to the state general fund. Failure to receive the certification form may not be
13.3used as a defense for a failure to file.
13.4 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
13.5and thereafter.
13.6 Sec. 22. Minnesota Statutes 2022, section 477C.03, subdivision 2, is amended to read:
13.7 Subd. 2.Apportionment of police state aid.(a) The total amount available for
13.8apportionment as police state aid is equal to 104 percent of the amount of premium taxes
13.9paid to the state on the premiums reported to the commissioner by companies or insurance
13.10companies on the Minnesota Aid to Police Premium Report, except that credits claimed
13.11under section 297I.20, subdivisions 3, 4, and 5, do not affect the calculation of the total
13.12amount of police state aid available for apportionment. The total amount for apportionment
13.13for the police state aid program must not be less than two percent of the amount of premiums
13.14reported to the commissioner by companies or insurance companies on the Minnesota Aid
13.15to Police Premium Report.
13.16 (b) The commissioner must calculate the percentage of increase or decrease reflected in
13.17the apportionment over or under the previous year's available state aid using the same
13.18premiums as a basis for comparison.
13.19 (c) In addition to the amount for apportionment of police state aid under paragraph (a),
13.20each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
13.21this increase is annually appropriated from the general fund.
13.22 (d) The commissioner must apportion police state aid to all municipalities in proportion
13.23to the relationship that the total number of peace officers employed by that municipality for
13.24the prior calendar year and the proportional or fractional number who were employed less
13.25than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears
13.26to the total number of peace officers employed by all municipalities subject to any reduction
13.27under subdivision 3.
13.28 (e) Any necessary additional adjustments must be made to subsequent police state aid
13.29apportionments.
13.30 EFFECTIVE DATE.(a) The amendment to paragraph (a) is effective the day following
13.31final enactment.
13.32 (b) The amendment striking paragraph (e) is effective for aids payable in calendar year
13.332024 and thereafter.
13Sec. 22.
23-00669 as introduced12/01/22 REVISOR MS/HL 14.1 Sec. 23. Minnesota Statutes 2022, section 477C.03, subdivision 5, is amended to read:
14.2 Subd. 5.Appeal.A municipality may object to the amount of police state aid apportioned
14.3to it by filing a written request with the commissioner to review and adjust the apportionment
14.4of funds to the municipality. The objection of a municipality must be filed with the
14.5commissioner within 60 days of the date the amount of apportioned police state aid is paid.
14.6The decision of the commissioner is subject to appeal, review, and adjustment by the district
14.7court in the county in which the applicable municipality is located or by the Ramsey County
14.8District Court with respect to the Departments of Natural Resources or Public Safety.
14.9 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
14.10and thereafter.
14.11Sec. 24. Minnesota Statutes 2022, section 477C.04, is amended by adding a subdivision
14.12to read:
14.13 Subd. 4.Aid amount corrections.(a) An adjustment needed to correct a police state
14.14aid overpayment or underpayment due to a clerical error must be made to subsequent police
14.15state aid payments as provided in paragraphs (b) and (c). The authority to correct an aid
14.16payment under this subdivision is limited to three years after the payment was issued.
14.17 (b) If an overpayment equals more than ten percent of the most recently paid aid amount,
14.18the commissioner must reduce the aid a municipality is to receive by the amount overpaid
14.19over a period of no more than three years. If an overpayment equals or is less than ten
14.20percent of the most recently paid aid amount, the commissioner must reduce the next aid
14.21payment occurring in 30 days or more by the amount overpaid.
14.22 (c) In the event of an underpayment, the commissioner must distribute the amount of
14.23underpaid funds to the municipality over a period of no more than three years. An additional
14.24distribution to a municipality must be paid from the general fund and must not diminish the
14.25payments made to other municipalities under this chapter.
14.26 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
14.27and thereafter.
14.28Sec. 25. REPEALER.
14.29 Minnesota Statutes 2022, sections 477B.02, subdivision 4; and 477B.03, subdivision 6,
14.30are repealed.
14.31 EFFECTIVE DATE.This section is effective for aids payable in calendar year 2024
14.32and thereafter.
14Sec. 25.
23-00669 as introduced12/01/22 REVISOR MS/HL 477B.02 QUALIFYING FOR FIRE STATE AID.
Subd. 4.Equipment requirements.The fire department must have all of the following
equipment, or the equivalent as determined by the state fire marshal, by December 31 of the year
preceding the certification required in subdivision 8:
(1) a motorized fire truck equipped with:
(i) a motorized pump;
(ii) a 250-gallon or larger water tank;
(iii) 300 feet of one inch or larger fire hose in two lines with combination spray and straight
stream nozzles;
(iv) five-gallon hand pumps - tank extinguisher or equivalent;
(v) a dry chemical extinguisher or equivalent;
(vi) ladders;
(vii) extension ladders;
(viii) pike poles;
(ix) crowbars;
(x) axes;
(xi) lanterns; and
(xii) fire coats, helmets, and boots;
(2) the items in clause (1) suitably housed in a building of good construction with facilities for
care of hoses and equipment;
(3) a reliable and adequate method of receiving fire alarms by telephone or with electric siren
and suitable means of sounding an alarm; and
(4) if response is to be provided outside the corporate limits of the municipality where the fire
department is located, another piece of motorized apparatus to make the response.
477B.03 CALCULATION OF FIRE STATE AID; APPEAL.
Subd. 6.Corrective aid adjustments.Any adjustments needed to correct prior misallocations
must be made to subsequent fire state aid apportionments.
1R
APPENDIX
Repealed Minnesota Statutes: 23-00669