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 for the year following any instance of using the incorrect flag, as determined by the commissioner of revenue.

Additionally, the bill requires that by December 31 of each year, the governing body of 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.