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HF 2801

Alpha; 2023 aid penalty forgiveness provided, and money appropriated.

2025-2026 Regular Session Introduced by Marj Fogelman

The bill forgives a 2023 LGA penalty for Alpha by paying $18,472 in 2025 after Alpha certifies 2022 financials by June 1, 2025.

Introduction and first reading, referred to Taxes
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Bill Summary · HF 2801

Summary of HF 2801 (2025-2026) — Alpha; 2023 Aid Penalty Forgiveness Provided, and Money Appropriated

Purpose and intent

HF 2801 provides a one-time forgiveness of a 2023 local government aid (LGA) penalty for the City of Alpha. The bill establishes a specific mechanism to restore the withheld LGA payment for calendar year 2023 if certain conditions are met, and it appropriates funds to implement this forgiveness.

Key provisions

  • Subject and scope: Local government aid (LGA) penalty forgiveness for the City of Alpha. The bill applies notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, for this purpose.
  • Condition to receive the forgiveness:
    • The City of Alpha must have the annual financial reporting form for 2022 submitted to the state auditor.
    • The state auditor must certify to the commissioner of revenue that the form was received by June 1, 2025.
  • Amount and payment:
    • Upon certification, the commissioner of revenue must make a payment of $18,472 to the City of Alpha.
    • The payment must be made by June 30, 2025.
  • Source of funds: A one-time appropriation from the general fund in fiscal year 2025 to the commissioner of revenue to cover the payment.
  • Effective date: The act takes effect the day after enactment.
  • Administration: The forgiveness process hinges on the state auditor’s certification and the commissioner of revenue’s timely payment of the specified amount.

Who is affected

  • City of Alpha: Eligible to receive an $18,472 payment in 2025, restoring 2023 LGA that was previously withheld due to a penalty.
  • State agencies:
    • State Auditor: Responsible for certifying receipt of the 2022 annual financial reporting form by Alpha (by June 1, 2025).
    • Commissioner of Revenue: Responsible for issuing the $18,472 payment to Alpha by June 30, 2025.
  • General fund: Provides a one-time fiscal impact via a general fund appropriation to support this forgiveness.

Procedural and timeline aspects

  • Certification trigger: The process begins with the State Auditor certifying that Alpha submitted the 2022 annual financial reporting form by the June 1, 2025 deadline.
  • Payment trigger: Upon certification, the Commissioner of Revenue must issue the $18,472 payment by June 30, 2025.
  • Funding mechanism: A one-time appropriation from the General Fund to the Commissioner of Revenue in FY 2025 supports the payment.
  • Effective date: The act becomes effective the day after enactment.

Notes

  • The measure is narrowly targeted and hinges on Alpha’s timely submission of required financial documentation and a single payment that resets a 2023 LGA penalty.
  • The bill’s language explicitly states it is a one-time fix, with no ongoing or future penalty forgiveness beyond this specific instance.

Compiled from official sources — confirm details with the bill’s official record.

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