Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
State of Minnesota
S.F. No. 4564 - Coronavirus Relief Fund; Local Government Distributions (1st engrossment)
Author: Senator Julie A. Rosen
Prepared By: Bjorn E. Arneson, Senate Analyst (651/296-3812)
Date: May 12, 2020


Section 1. Coronavirus Relief Fund; Local Government Distributions.

Subd. 1. Definitions. Defines “commissioner” to mean the commissioner of revenue. Provides definitions for counties, cities, and towns to establish eligibility for distributions under this section. Defines which population counts are used for the purpose of the distributional formula.

Subd. 2. Local government distribution amounts. Establishes a formula for the distribution of funds to eligible counties, eligible cities, and eligible towns. Calculates distribution amounts for eligible cities and eligible towns based on a per-capita allowance. Calculates the distribution amount for eligible counties to be a per-capita allowance less the distribution amounts for cities and towns in that county.

Subd. 3. Distribution schedule. Requires the commissioner to distribute amounts no later than June 15, 2020.

Subd. 4. Allowable uses. Requires a local government to use the distributed funds consistent with title V of Public Law 116-136 (the CARES Act). Requires each local government to provide a certification to the commissioner prior to distribution of the funds.

Subd. 5. Local government collaborative agreement. Authorizes a local government to enter into a collaborative agreement with other local governments to share aid distributions. Gives the commissioner authority to obtain information about collaborative agreements.

Subd. 6. Expenditure time limits. Requires that any amount of aid unspent on November 1, 2020, be returned to the commissioner. Extends that deadline to December 15, 2020, for a local government that has entered into a collaborative agreement under subdivision 5.

Subd. 7. Hennepin County and Ramsey County distributions to cities and towns. Requires Hennepin County and Ramsey County to distribute aid to cities and towns in the county. (Hennepin County and Ramsey County were both eligible for a direct payment from the federal government under the CARES Act.) The amount of the distribution to each city and town must be calculated in the same manner as provided in subdivision 2. Directs the counties to make the distribution no later than June 15, 2020. Clarifies how to calculate aid amounts for a joint city with a portion of its population in Hennepin County or Ramsey County.

Subd. 8. Repayment of improperly spent federal funds. Directs the commissioner to recoup money from a local government if (1) the state itself is subjected to a recoupment by the federal government, and (2) the recoupment is the result of the failure of a local government to spend aids under this section consistent with the requirements of the CARES Act. Establishes a process for the commissioner to certify a required repayment. For a local government that does not repay with 90 days of the commissioner’s certification, requires that the local government include the repayment amount in its next annual levy amount and repay the commissioner by December 15 of the year in which the taxes are paid. Provides that any amounts recouped from local governments must be credited to the state fund from which the federal recoupment was paid.

Subd. 9. Appropriation. Appropriates $667,156,931 in fiscal year 2020 from the coronavirus relief account in the federal fund to the commissioner of revenue for the aid distributions under this section. Directs the commissioner to prorate the per-capita allowances if the appropriation is insufficient to fully fund the formula.

EFFECTIVE DATE. Makes this section effective immediately.

Check on the status of this bill
Back to Senate Counsel and Research Bill Summaries page

This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
Last review or update: 05/12/2020
If you see any errors on this page, please e-mail us at