SF 5038

03/26/26  REVISOR  MS/MI  26-08308  as introduced
  SENATE
  STATE OF MINNESOTA
  NINETY-FOURTH SESSION  S.F. No. 5038
  (SENATE AUTHORS: DIBBLE, Kunesh, Latz and Putnam)
  DATE       D-PG  OFFICIAL STATUS
  04/09/2026      7937 Introduction and first reading
  Referred to Taxes
  04/13/2026      8005 Author added Latz
  04/23/2026      9014 Author stricken Wiklund
  Author added Putnam
1.1A bill for an act
1.2relating to taxation; aids to local governments; establishing a onetime aid to
1.3reimburse certain city costs of federal enforcement actions; appropriating money.
1.4    BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5Section 1. FEDERAL ENFORCEMENT REIMBURSEMENT AID.
1.6Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
1.7    the meanings given.
1.8(b) "City" means a statutory or home rule charter city.
1.9(c) "Commissioner" means the commissioner of revenue.
1.10(d) "Eligible costs" means operating and capital costs of municipal public safety,
1.11   emergency management, public works, and legal counsel.
1.12(e) "Federal enforcement actions" means the presence of United States Department of
1.13   Homeland Security immigration officials in Minnesota for purposes of federal immigration
1.14   enforcement between December 1, 2025, and May 31, 2026.
1.15Subd. 2. Certification of costs. (a) By August 1, 2026, each city may submit to the state
1.16   auditor a report detailing eligible costs incurred by the city in association with federal
1.17   enforcement actions. The state auditor shall prescribe the form and manner of the report.
1.18(b) The state auditor may require cities to provide further documentation or justification
1.19   as needed to verify the costs reported are accurate, eligible, and attributable to federal
1.20   enforcement actions.
Section 1.  1
 03/26/26  REVISOR  MS/MI  26-08308  as introduced
2.1      (c) By September 1, 2026, the state auditor must certify to the commissioner the costs
2.2  that each city reported incurring in association with federal enforcement actions, excluding
2.3  costs the state auditor determines to be inaccurate, ineligible, or unattributable to federal
2.4  enforcement actions.
2.5      Subd. 3. Distribution. Each city shall receive an amount of aid equal to the product of:
2.6      (1) the total amount appropriated for aid under subdivision 6; and
2.7      (2) the ratio of the costs certified by the state auditor for the city under subdivision 2 to
2.8  the costs certified by the state auditor for all cities under subdivision 2.
2.9      Subd. 4. Federal reimbursement. (a) Cities are encouraged to make reasonable, good
2.10 faith efforts to pursue federal reimbursement for costs incurred in association with federal
2.11 enforcement actions.
2.12     (b) A city that receives federal reimbursement for costs incurred in association with
2.13 federal enforcement actions must return to the commissioner the lesser of the amount of
2.14 the federal reimbursement or the portion of aid received by the city under this section for
2.15 the same or similar costs. Aid returned to the commissioner under this subdivision is canceled
2.16 to the general fund.
2.17     Subd. 5. Certification and payment. (a) By December 1, 2026, the commissioner must
2.18 calculate and certify the amount of aid payable to each city under this section.
2.19     (b) By December 26, 2026, the commissioner must pay federal enforcement
2.20 reimbursement aid to each city.
2.21     Subd. 6. Appropriation. $10,000,000 in fiscal year 2027 is appropriated from the general
2.22 fund to the commissioner of revenue for aid payments under this section. This is a onetime
2.23 appropriation.
2.24     EFFECTIVE DATE. This section is effective for aids payable in 2026 only.
 Section 1.  2