HF 1534 Summary

• State agencies cannot make spending commitments or enter obligations for federal American Recovery and Reinvestment Act of 2009 funds until the funds are received, appropriated to the agency, and all legal requirements are met.

• Money may not be transferred from any state treasury fund to provide cash flow in anticipation of receiving federal stimulus funds.

• Minnesota cannot accept any portion of federal American Recovery and Reinvestment Act of 2009 funds that would create ongoing obligations for state, county, or local programs after the funds are expended.

• By June 30, 2011, the state must deposit an amount in the budget reserve account equal to 33 percent of the total money received under the federal American Recovery and Reinvestment Act of 2009.

• The bill, known as the "State Bailout Control Act," becomes effective the day following final enactment.