This bill establishes a penalty for counties or cities in Minnesota that use an incorrect state flag. Specifically, it mandates a ten percent reduction in local government aid for any county or city that flies or utilizes a state flag that does not conform to the design certified by the State Emblems Redesign Commission. The reduction in aid will apply to the year following any instance of incorrect flag usage, as reported by the governing body of the county or city.

Additionally, the bill requires that by December 31 of each year, any affected county or city must notify the commissioner of revenue regarding their use of the incorrect state flag. The provisions of this bill will take effect starting with aids payable in 2027.