MN HF1052

Defines "unpaid amount" as funds owed to a city by another city under section 12.331 for local assistance activities occurring after December 31, 2020, excluding state-reimbursed amounts.

Allows cities owed unpaid amounts to submit applications with financial statements to the state auditor beginning in 2022 and annually thereafter, with applications covering unpaid amounts from the previous calendar year.

Requires the state auditor to certify unpaid amounts to the commissioner of revenue within 30 days of application submission.

Directs the commissioner of revenue to reduce aid payments to cities owing unpaid amounts and increase aid payments to cities owed those amounts, beginning with 2022 aid payments, with any remaining balance carried forward to future payments.

Prohibits the commissioner from considering these adjustments when calculating aid for the following year.