1.1                          A bill for an act 
  1.2             relating to state finance; modifying provisions 
  1.3             relating to submission of departmental earnings 
  1.4             reports, advancement of cash flow resources, and use 
  1.5             of litigation and settlement money; renewing certain 
  1.6             rulemaking exemptions; amending Minnesota Statutes 
  1.7             1996, sections 16A.10, subdivision 2; 16A.11, 
  1.8             subdivisions 1 and 3c; 16A.1285, subdivision 3; 
  1.9             16A.129, subdivision 3; and 16A.15, subdivision 3; 
  1.10            proposing coding for new law in Minnesota Statutes, 
  1.11            chapter 16A. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 16A.10, 
  1.14  subdivision 2, is amended to read: 
  1.15     Subd. 2.  [BY OCTOBER 15 AND NOVEMBER 30.] By October 15 of 
  1.16  each even-numbered year, an agency must file the following with 
  1.17  the commissioner:  
  1.18     (1) budget and departmental earnings estimates for the most 
  1.19  recent and current fiscal years; 
  1.20     (2) its upcoming biennial budget and departmental earnings 
  1.21  estimates; 
  1.22     (3) a comprehensive and integrated statement of agency 
  1.23  missions and outcome and performance measures; and 
  1.24     (4) a concise explanation of any planned changes in the 
  1.25  level of services or new activities. 
  1.26     The commissioner shall prepare and file the budget 
  1.27  estimates for an agency failing to file them.  By November 30, 
  1.28  the commissioner shall send the final budget format, 
  2.1   departmental earnings report, agency budget plans or requests 
  2.2   for the next biennium, and copies of the filed material to the 
  2.3   ways and means and finance committees, except that the 
  2.4   commissioner shall not be required to transmit information that 
  2.5   identifies executive branch budget decision items.  At this 
  2.6   time, a list of each employee's name, title, and salary must be 
  2.7   available to the legislature, either on paper or through 
  2.8   electronic retrieval. 
  2.9      Sec. 2.  Minnesota Statutes 1996, section 16A.11, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [WHEN.] The governor shall submit a 
  2.12  four-part budget to the legislature.  Parts one and two, the 
  2.13  budget message and detailed operating budget, must be submitted 
  2.14  by the fourth Tuesday in January in each odd-numbered year.  
  2.15  Part three, the detailed recommendations as to capital 
  2.16  expenditure, must be submitted as follows:  agency capital 
  2.17  budget requests by June 15 July 1 of each odd-numbered year; 
  2.18  preliminary governor's recommendations by September 1 of each 
  2.19  odd-numbered year;, and final governor's recommendations by 
  2.20  February 1 of each even-numbered year.  Part four, the detailed 
  2.21  recommendations as to information technology expenditure, must 
  2.22  be submitted at the same time the governor submits the budget 
  2.23  message to the legislature. 
  2.24     Sec. 3.  Minnesota Statutes 1996, section 16A.11, 
  2.25  subdivision 3c, is amended to read: 
  2.26     Subd. 3c.  [PART FOUR; DETAILED INFORMATION TECHNOLOGY 
  2.27  BUDGET.] The detailed information technology budget must include 
  2.28  recommendations for information technology projects to be funded 
  2.29  during the next biennium and planning estimates for an 
  2.30  additional two biennia.  It must be submitted with projects 
  2.31  ranked in order of importance among all projects as determined 
  2.32  by the governor. 
  2.33     Sec. 4.  Minnesota Statutes 1996, section 16A.1285, 
  2.34  subdivision 3, is amended to read: 
  2.35     Subd. 3.  [DUTIES OF THE COMMISSIONER OF FINANCE.] The 
  2.36  commissioner of finance shall classify, monitor, analyze, and 
  3.1   report all departmental earnings that fall within the definition 
  3.2   established in subdivision 1.  Specifically, the commissioner 
  3.3   shall: 
  3.4      (1) establish and maintain a classification system that 
  3.5   clearly defines and distinguishes categories and types of 
  3.6   departmental earnings and takes into account the purpose of the 
  3.7   various earnings types and the extent to which various earnings 
  3.8   types serve a public or private interest; 
  3.9      (2) prepare a biennial report that documents collection 
  3.10  costs, purposes, and yields of all departmental earnings, the 
  3.11  report to be submitted to the legislature on or before November 
  3.12  30 of each even-numbered year the fourth Tuesday in January in 
  3.13  each odd-numbered year and to include estimated data for the 
  3.14  year in which the report is prepared, actual data for the two 
  3.15  years immediately before, and estimates for the two years 
  3.16  immediately following; and 
  3.17     (3) prepare and maintain a detailed directory of all 
  3.18  departmental earnings. 
  3.19     Sec. 5.  Minnesota Statutes 1996, section 16A.129, 
  3.20  subdivision 3, is amended to read: 
  3.21     Subd. 3.  [CASH ADVANCES.] When the operations of any 
  3.22  nongeneral fund account would be impeded by projected cash 
  3.23  deficiencies resulting from delays in the receipt of grants, 
  3.24  dedicated income, or other similar receivables, and when the 
  3.25  deficiencies would be corrected within the budget period 
  3.26  involved, the commissioner of finance may use general fund cash 
  3.27  reserves to meet cash demands.  If funds are transferred from 
  3.28  the general fund to meet cash flow needs, the cash flow 
  3.29  transfers must be returned to the general fund as soon as 
  3.30  sufficient cash balances are available in the account to which 
  3.31  the transfer was made.  Any interest earned on general fund cash 
  3.32  flow transfers accrues to the general fund and not to the 
  3.33  accounts or funds to which the transfer was made.  The 
  3.34  commissioner may advance general fund cash reserves to 
  3.35  nongeneral fund accounts where the receipts from other 
  3.36  governmental units cannot be collected within the budget period. 
  4.1      Sec. 6.  Minnesota Statutes 1996, section 16A.15, 
  4.2   subdivision 3, is amended to read: 
  4.3      Subd. 3.  [ALLOTMENT AND ENCUMBRANCE.] (a) A payment may 
  4.4   not be made without prior obligation.  An obligation may not be 
  4.5   incurred against any fund, allotment, or appropriation unless 
  4.6   the commissioner has certified a sufficient unencumbered balance 
  4.7   or the accounting system shows sufficient allotment or 
  4.8   encumbrance balance in the fund, allotment, or appropriation to 
  4.9   meet it.  The commissioner shall determine when the accounting 
  4.10  system may be used to incur obligations without the 
  4.11  commissioner's certification of a sufficient unencumbered 
  4.12  balance.  An expenditure or obligation authorized or incurred in 
  4.13  violation of this chapter is invalid and ineligible for payment 
  4.14  until made valid.  A payment made in violation of this chapter 
  4.15  is illegal.  An employee authorizing or making the payment, or 
  4.16  taking part in it, and a person receiving any part of the 
  4.17  payment, are jointly and severally liable to the state for the 
  4.18  amount paid or received.  If an employee knowingly incurs an 
  4.19  obligation or authorizes or makes an expenditure in violation of 
  4.20  this chapter or takes part in the violation, the violation is 
  4.21  just cause for the employee's removal by the appointing 
  4.22  authority or by the governor if an appointing authority other 
  4.23  than the governor fails to do so.  In the latter case, the 
  4.24  governor shall give notice of the violation and an opportunity 
  4.25  to be heard on it to the employee and to the appointing 
  4.26  authority.  A claim presented against an appropriation without 
  4.27  prior allotment or encumbrance may be made valid on 
  4.28  investigation, review, and approval by the commissioner agency 
  4.29  head in accordance with the commissioner's policy, if the 
  4.30  services, materials, or supplies to be paid for were actually 
  4.31  furnished in good faith without collusion and without intent to 
  4.32  defraud.  The commissioner may then draw a warrant to pay the 
  4.33  claim just as properly allotted and encumbered claims are paid. 
  4.34     (b) The commissioner may approve payment for materials and 
  4.35  supplies in excess of the obligation amount when increases are 
  4.36  authorized by section 16B.07, subdivision 2. 
  5.1      (c) To minimize potential construction delay claims, an 
  5.2   agency with a project funded by a building appropriation may 
  5.3   allow a contractor to proceed with supplemental work within the 
  5.4   limits of the appropriation before money is encumbered.  Under 
  5.5   this circumstance, the agency may requisition funds and allow 
  5.6   contractors to expeditiously proceed with a construction 
  5.7   sequence.  While the contractor is proceeding, the agency shall 
  5.8   immediately act to encumber the required funds. 
  5.9      Sec. 7.  [16A.151] [LAWSUIT PROCEEDS.] 
  5.10     Money received by the state as a result of litigation or 
  5.11  settlements that cannot be classified as federal funds or gift 
  5.12  funds may be deposited in a special revenue account with the 
  5.13  approval of the commissioner.  The commissioner shall promptly 
  5.14  notify the chairs of the house ways and means and senate finance 
  5.15  committees that the money has been received.  Up to $250,000 of 
  5.16  the money deposited in a special revenue account is appropriated 
  5.17  for the purpose defined in the litigation or settlement.  
  5.18  Unobligated balances in these accounts may be carried forward to 
  5.19  subsequent fiscal years with the approval of the commissioner. 
  5.20     Sec. 8.  [RENEWAL OF RULEMAKING EXEMPTIONS.] 
  5.21     Notwithstanding Minnesota Statutes, section 14.387, or any 
  5.22  other law, rulemaking exemptions in the following sections of 
  5.23  Minnesota Statutes do not expire on July 1, 1997:  Minnesota 
  5.24  Statutes, sections 16A.641, subdivision 4; 16A.671, subdivision 
  5.25  5; 16D.11, subdivision 7; 85A.05, subdivision 2; 115A.58, 
  5.26  subdivision 2; 116.17, subdivision 2; 124.46, subdivision 2; 
  5.27  474A.17; and 475A.06, subdivision 2. 
  5.28     Sec. 9.  [EFFECTIVE DATE.] 
  5.29     This act is effective the day following final enactment.