HF 445

as introduced - 90th Legislature (2017 - 2018) Posted on 02/27/2017 04:01pm

A bill for an act
relating to state government; repealing the state auditor enterprise fund; providing
funding for the Office of the State Auditor from the general fund; appropriating
money; amending Minnesota Statutes 2016, sections 6.481, subdivision 6; 6.56,
subdivision 2; 6.581, subdivision 4; repealing Minnesota Statutes 2016, section
6.581, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 6.481, subdivision 6, is amended to read:

Subd. 6.

Payments to state auditor.

A county audited by the state auditor must pay the
state auditor for the costs and expenses of the audit. If the state auditor makes additional
examinations of a county whose audit is performed by a CPA firm, the county must pay the
auditor for the cost of these examinations. Payments must be deposited in the deleted text begin state auditor
enterprise deleted text end new text begin general new text end fund.

Sec. 2.

Minnesota Statutes 2016, section 6.56, subdivision 2, is amended to read:

Subd. 2.

Billings by state auditor.

Upon the examination of the books, records, accounts,
and affairs of any political subdivision, as provided by law, such political subdivision shall
be liable to the state for the total cost and expenses of such examination, including the
salaries paid to the examiners while actually engaged in making such examination. The
state auditor may bill such political subdivision periodically for service rendered and the
officials responsible for approving and paying claims are authorized to pay said bill promptly.
Said payments shall be without prejudice to any defense against said claims that may exist
or be asserted. The deleted text begin state auditor enterprise deleted text end new text begin general new text end fund shall be credited with all collections
made for any such examinations, including interest payments made pursuant to subdivision
3.

Sec. 3.

Minnesota Statutes 2016, section 6.581, subdivision 4, is amended to read:

Subd. 4.

Reports to legislature.

At least 30 days before implementing increased charges
for examinations, the state auditor must report the proposed increases to the chairs and
ranking minority members of the committees in the house of representatives and the senate
with jurisdiction over the budget of the state auditor. By January 15 of each odd-numbered
year, the state auditor must report to the chairs and ranking minority members of the
legislative committees and divisions with primary jurisdiction over the budget of the state
auditor a summary of deleted text begin the state auditor enterprise fund deleted text end anticipated revenues, and expenditures new text begin
related to examinations new text end for the biennium ending June 30 of that year. The report must also
include for the biennium the number of full-time equivalents paid by the fund, any audit
rate changes stated as a percentage, the number of audit reports issued, and the number of
counties audited.

Sec. 4. new text begin TRANSITION.
new text end

new text begin Notwithstanding any law to the contrary, receipts from examinations conducted by the
state auditor must be credited to the general fund beginning July 1, 2017. Amounts in the
state auditor enterprise fund are transferred to the general fund on July 1, 2017.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $6,951,000 for the fiscal year ending June 30, 2018, is appropriated from the general
fund to the Office of the State Auditor.
new text end

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 6.581, subdivision 1, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 17-1335

6.581 STATE AUDITOR ENTERPRISE FUND.

Subdivision 1.

State auditor enterprise fund.

A state auditor enterprise fund is established in the state treasury. All amounts received for the costs and expenses of examinations performed under this chapter shall be credited to the fund. Amounts credited to the fund are annually appropriated to the state auditor to pay the costs and expenses related to the examinations performed, including, but not limited to, salaries, office overhead, equipment, authorized contracts, and other expenses.