as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state finance; changing procedures 1.3 regarding certain donations to the state; changing 1.4 responsibility for payment of substitutes in cases of 1.5 certain athletic leaves; changing the years of capital 1.6 budgets from even to odd; removing the two percent 1.7 budget amount presumption for building maintenance; 1.8 providing for presumption of fee approval unless 1.9 legislature acts otherwise; stating the goal of the 1.10 budget reserve; providing for disposition of interest 1.11 on the budget reserve; providing for up to five 1.12 percent of second year budget allocations to go to the 1.13 budget reserve; changing and adding to deficit 1.14 remedies; removing a provision that made certain 1.15 delayed payments subject to allotment reduction; 1.16 clarifying when capital appropriations lapse; stating 1.17 exclusive method for canceling appropriation of bond 1.18 proceeds; changing the timing of political 1.19 subdivisions capital requests; repealing the Property 1.20 Tax Reform Account, the requirement for commissioner 1.21 of finance approval of executive agency application 1.22 for nonstate funds, detail about the use of trunk 1.23 highway appropriations, and the requirement for use of 1.24 uniform settlement forms under PELRA; modifying 1.25 provisions governing trunk highway bond proceeds and 1.26 highway bond-financed property; amending Minnesota 1.27 Statutes 2000, sections 7.09, subdivision 1; 15.62, 1.28 subdivision 3; 16A.11, subdivisions 1, 6; 16A.1283; 1.29 16A.152, subdivisions 1a, 2, 4, 7; 16A.28, subdivision 1.30 5; 16A.641, subdivision 8; 16A.86, subdivision 2; 1.31 proposing coding for new law in Minnesota Statutes, 1.32 chapter 167; repealing Minnesota Statutes 2000, 1.33 sections 16A.1521; 16A.30; 161.20, subdivision 3; 1.34 179A.07, subdivision 7. 1.35 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.36 ARTICLE 1 1.37 Section 1. Minnesota Statutes 2000, section 7.09, 1.38 subdivision 1, is amended to read: 1.39 Subdivision 1. [PROCEDURE.] The state treasurer is 1.40 authorized to receive and accept, on behalf of the state, any 2.1 gift, bequest, devise, or endowment which may be made by any 2.2 person, by will, deed, gift, or otherwise, to or for the benefit 2.3 of the state, or any of its departments or agencies, or to or in 2.4 aid, or for the benefit, support, or maintenance of any 2.5 educational, charitable, or other institution maintained in 2.6 whole or in part by the state, or for the benefit of students, 2.7 employees, or inmates thereof, or for any proper state purpose 2.8 or function, and the money, property, or funds constituting such 2.9 gift, bequest, devise, or endowment. No such gift, bequest, 2.10 devise, or endowment
whose value is equal to or exceeds $10,0002.11 shall be so accepted unless the commissioner of finance andthe 2.12 state treasurer determinedetermines that it is for the interest 2.13 of the state to accept it, and approve of and direct the 2.14 acceptance. If the value is less than $10,000, only the state2.15 treasurer need determine that it is for the interest of the2.16 state to accept it, and approve of and direct the2.17 acceptance.If a gift, bequest, devise, or endowment is money 2.18 or other negotiable instruments, then the deposit of it does not 2.19 constitute acceptance. In the event that the money or other 2.20 negotiable instruments are deposited but not approved, the 2.21 amount deposited must be refunded. When, in order to effect the 2.22 purpose for which any gift, bequest, devise, or endowment has 2.23 been accepted, it is necessary to sell property so received, the 2.24 state treasurer, upon request of the authority in charge of the 2.25 agency, department, or institution concerned, may sell it at a 2.26 price which shall be fixed by the state board of investment. 2.27 Sec. 2. Minnesota Statutes 2000, section 15.62, 2.28 subdivision 3, is amended to read: 2.29 Subd. 3. If the public employee granted the leave is an 2.30 employee of a school district, university system, or other 2.31 political subdivision, the state shall reimbursethe employer is 2.32 responsible for the actual cost to the employerof employing a 2.33 substitute. 2.34 Sec. 3. Minnesota Statutes 2000, section 16A.11, 2.35 subdivision 1, is amended to read: 2.36 Subdivision 1. [WHEN.] The governor shall submit a 3.1 three-part budget to the legislature. Parts one and two, two, 3.2 and three, the budget message and, detailed operating budget, 3.3 and detailed capital budget must be submitted by the fourth 3.4 Tuesday in January in each odd-numbered year. However, in a 3.5 year following the election of a governor who had not been 3.6 governor the previous year, parts one and, two, and three must 3.7 be submitted by the third Tuesday in February. Part three, the 3.8 detailed recommendations as to capital expenditure, must be 3.9 submitted as follows: preliminary agency capital budget 3.10 requests by July 1 of each odd-numberedeven-numbered year, and 3.11 governor's recommendations by January 15 of each even-numbered3.12 the fourth Tuesday in January in each odd-numbered year. 3.13 Detailed recommendations as to information technology 3.14 expenditure must be submitted as part of the detailed operating 3.15 budget. Information technology recommendations must include 3.16 projects to be funded during the next biennium and planning 3.17 estimates for an additional two bienniums. Information 3.18 technology recommendations must specify purposes of the funding 3.19 such as infrastructure, hardware, software, or training. 3.20 Sec. 4. Minnesota Statutes 2000, section 16A.11, 3.21 subdivision 6, is amended to read: 3.22 Subd. 6. [BUILDING MAINTENANCE.] The detailed operating 3.23 budget must include amounts necessary to maintain state 3.24 buildings. The commissioner of finance, in consultation with 3.25 the commissioner of administration, the board of trustees of the 3.26 Minnesota state colleges and universities, and the regents of 3.27 the University of Minnesota, shall establish budget guidelines 3.28 for building maintenance appropriations. Unless otherwise3.29 provided by the commissioner of finance, the amount to be3.30 budgeted each year for building maintenance is two percent of3.31 the cost of the building, adjusted up or down depending on the3.32 age and condition of the building.3.33 Sec. 5. Minnesota Statutes 2000, section 16A.1283, is 3.34 amended to read: 3.35 16A.1283 [ LEGISLATIVE APPROVAL REQUIREDFEES APPROVED 3.36 UNLESS OTHER LEGISLATIVE ACTION IS TAKEN.] 4.1 (a) Notwithstanding any law to the contrary, an executive 4.2 branch state agency may not impose a new fee or increase an 4.3 existing fee unless the new fee or increase is approved by law4.4 has been submitted by the governor to the legislature as part of 4.5 a budget request. The governor's budget request related to fees 4.6 is approved after the legislature is adjourned unless other 4.7 action is taken by the legislature. For purposes of this 4.8 section, a fee is any charge for goods, services, regulation, or 4.9 licensure, and, notwithstanding paragraph (b), clause (3), 4.10 includes charges for admission to or for use of public 4.11 facilities owned by the state. 4.12 (b) This section does not apply to: 4.13 (1) charges billed within or between state agencies, or 4.14 billed to federal agencies; 4.15 (2) the Minnesota state colleges and universities system; 4.16 or 4.17 (3) charges for goods and services provided for the direct 4.18 and primary use of a private individual, business, or other 4.19 entity. 4.20 (c) An executive branch agency may reduce a fee that was 4.21 set by rule before the effective date of this section without 4.22 legislative approval. Chapter 14 does not apply to fee 4.23 reductions under this paragraph. 4.24 Sec. 6. Minnesota Statutes 2000, section 16A.152, 4.25 subdivision 1a, is amended to read: 4.26 Subd. 1a. [BUDGET RESERVE.] A budget reserve account is 4.27 created in the general fund in the state treasury. The 4.28 commissioner of finance shall transfer to the budget reserve 4.29 account on July 1 of each odd-numbered year any amounts 4.30 specifically appropriated by law to the budget reserve. The 4.31 goal of the account is to manage revenue fluctuations through 4.32 economic cycles by holding in reserve an amount equal to five 4.33 percent of biennial spending. Interest earned on the cash 4.34 equivalent balance in the reserve account shall be deposited to 4.35 the account quarterly. 4.36 Sec. 7. Minnesota Statutes 2000, section 16A.152, 5.1 subdivision 2, is amended to read: 5.2 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] If on the basis 5.3 of a forecast of general fund revenues and expenditures after5.4 November 1 in an odd-numbered year,the commissioner of finance 5.5 determines that there will be a positive unrestricted budgetary 5.6 general fund balance at the close of the biennium, the5.7 commissioner of finance must allocate money as follows:5.8 (1) first, to the budget reserve until the total amount in5.9 the account equals $622,000,000; then5.10 (2) 60 percent to the property tax reform account5.11 established in section 16A.1521; and5.12 (3) 40 percent is an unrestricted balance in the general5.13 fund, the commissioner shall allocate funds up to an amount 5.14 equal to five percent of all general fund expenditures and 5.15 transfers projected for the second year of the two-year general 5.16 fund biennial budget to the budget reserve. 5.17 The amounts necessary to meet the requirements of this 5.18 section are appropriated from the general fund within two weeks5.19 after the forecast is releasedto the commissioner of finance. 5.20 Sec. 8. Minnesota Statutes 2000, section 16A.152, 5.21 subdivision 4, is amended to read: 5.22 Subd. 4. [ REDUCTIONDEFICIT REMEDIES.] (a)If the 5.23 commissioner determines that probable receipts for the general 5.24 fund will be less than anticipated, and that the amount 5.25 available for the remainder of the biennium will be less than 5.26 needed, the commissioner shall , with the approval of the5.27 governor, and after consulting the legislative advisory5.28 commission, reduce the amount in the budget reserve account as5.29 needed to balance expenditures with revenue.5.30 (b) An additional deficit shall, with the approval of the5.31 governor, and after consulting the legislative advisory5.32 commission, be made up by reducing unexpended allotments of any5.33 prior appropriation or transfer. Notwithstanding any other law5.34 to the contrary, the commissioner is empowered to defer or5.35 suspend prior statutorily created obligations which would5.36 prevent effecting such reductions.6.1 (c) If the commissioner determines that probable receipts6.2 for any other fund, appropriation, or item will be less than6.3 anticipated, and that the amount available for the remainder of6.4 the term of the appropriation or for any allotment period will6.5 be less than needed, the commissioner shall notify the agency6.6 concerned and then reduce the amount allotted or to be allotted6.7 so as to prevent a deficit.6.8 (d) In reducing allotments, the commissioner may consider6.9 other sources of revenue available to recipients of state6.10 appropriations and may apply allotment reductions based on all6.11 sources of revenue available.6.12 (e) In like manner, the commissioner shall reduce6.13 allotments to an agency by the amount of any saving that can be6.14 made over previous spending plans through a reduction in prices6.15 or other causeproceed, in alphabetical order to the extent 6.16 necessary, with the remedies in the paragraphs in this 6.17 subdivision. 6.18 (a) [USE SAVINGS.] The commissioner shall first reduce 6.19 allotments to an agency by the amount of any savings that can be 6.20 made over previous spending plans through a reduction in prices 6.21 or other cause. 6.22 (b) [USE OTHER SOURCES.] The commissioner shall next 6.23 consider other sources of revenue available to recipients of 6.24 state appropriations and may apply allotment reductions based on 6.25 all sources of revenue available. 6.26 (c) [TEN PERCENT ALLOTMENT REDUCTION.] The commissioner 6.27 shall, with the approval of the governor, reduce state agencies' 6.28 allotments for unencumbered, unobligated operating expenditures 6.29 and discretionary grants up to ten percent of total authorized 6.30 spending for the biennium. 6.31 (d) [NEW, EXPANDED, OR FUTURE PROGRAMS.] The commissioner 6.32 may, with the approval of the governor, reduce or delay 6.33 unencumbered and unobligated allotments for appropriations for 6.34 spending authorizations that represent new or expanded programs 6.35 or program eligibility that have future implementation dates. 6.36 (e) [REDUCE UNEXPENDED ALLOTMENTS; OTHER FUNDS.] If the 7.1 commissioner determines that probable receipts for any other 7.2 fund, appropriation, or item will be less than anticipated, and 7.3 that the amount available for the remainder of the term of the 7.4 appropriation or for any allotment period will be less than 7.5 needed, the commissioner shall notify the agency concerned and 7.6 then reduce the amount allotted or to be allotted so as to 7.7 prevent a deficit. 7.8 (f) [REDUCE BUDGET RESERVE ACCOUNT; GENERAL FUND.] With 7.9 the approval of the governor, and after consulting with the 7.10 legislative advisory commission, the commissioner shall reduce 7.11 the amount in the budget reserve account as needed to balance 7.12 expenditures with revenue. 7.13 Sec. 9. Minnesota Statutes 2000, section 16A.152, 7.14 subdivision 7, is amended to read: 7.15 Subd. 7. [DELAY; REDUCTION.] The commissioner may delay 7.16 paying up to 15 percent of an appropriation to a special taxing 7.17 district or a system of higher education in that entity's fiscal 7.18 year for up to 60 days after the start of its next fiscal year. 7.19 The delayed amount is subject to allotment reduction under7.20 subdivision 1.7.21 Sec. 10. Minnesota Statutes 2000, section 16A.28, 7.22 subdivision 5, is amended to read: 7.23 Subd. 5. [PERMANENT IMPROVEMENTS.] An appropriation to 7.24 acquire or better public land or buildings or other public 7.25 improvements of a capital nature, including the acquisition of 7.26 real property does not lapse until the purposes of the 7.27 appropriation are determined by the commissioner, after 7.28 consultation with the affected agencies, to be accomplished or 7.29 abandoned, or until the appropriation is canceled pursuant to 7.30 section 16A.642, whichever occurs first. This subdivision also 7.31 applies to any part of an appropriation for a fiscal year that 7.32 has been requisitioned to acquire real property or construct 7.33 permanent improvements. An appropriation to pay moving expenses 7.34 lapses at the end of the third fiscal year during which it was 7.35 made available. 7.36 Sec. 11. Minnesota Statutes 2000, section 16A.641, 8.1 subdivision 8, is amended to read: 8.2 Subd. 8. [APPROPRIATION OF PROCEEDS.] (a) The proceeds of 8.3 bonds issued under each law are appropriated for the purposes 8.4 described in the law and in this subdivision. This 8.5 appropriation may never be canceled, except as provided in 8.6 section 16A.642. 8.7 (b) Before the proceeds are received in the proper special 8.8 fund, the commissioner may transfer to that fund from the 8.9 general fund amounts not exceeding the expected proceeds from 8.10 the next bond sale. The commissioner shall return these amounts 8.11 to the general fund by transferring proceeds when received. The 8.12 amounts of these transfers are appropriated from the general 8.13 fund and from the bond proceeds. 8.14 (c) Actual and necessary travel and subsistence expenses of 8.15 employees and all other nonsalary expenses incidental to the 8.16 sale, printing, execution, and delivery of bonds must be paid 8.17 from the proceeds. The proceeds are appropriated for this 8.18 purpose. Bond proceeds must not be used to pay any part of the 8.19 salary of a state employee involved in the sale, printing, 8.20 execution, or delivery of the bonds. 8.21 (d) Bond proceeds remaining in a special fund after the 8.22 purposes for which the bonds were issued are accomplished or 8.23 abandoned, as certified by the head of the agency administering 8.24 the special fund, or as determined by the commissioner, unless 8.25 devoted under the appropriation act to another purpose 8.26 designated in the act, shall be transferred to the state bond 8.27 fund. 8.28 Sec. 12. Minnesota Statutes 2000, section 16A.86, 8.29 subdivision 2, is amended to read: 8.30 Subd. 2. [BUDGET REQUEST.] A political subdivision that 8.31 requests an appropriation of state money for a local capital 8.32 improvement project is encouraged to submit a preliminary 8.33 request to the commissioner of finance by June 15 of 8.34 an odd-numberedeven-numbered year to ensure its full 8.35 consideration. The final request must be submitted by November 8.36 1. The requests must be submitted in the form and with the 9.1 supporting documentation required by the commissioner of 9.2 finance. All requests timely received by the commissioner must 9.3 be forwarded to the legislature, along with agency requests, by 9.4 the deadline established in section 16A.11, subdivision 1. 9.5 Sec. 13. [REPEALER.] 9.6 Minnesota Statutes 2000, sections 16A.1521; 16A.30; 161.20, 9.7 subdivision 3; and 179A.07, subdivision 7, are repealed. 9.8 ARTICLE 2 9.9 Section 1. Minnesota Statutes 2000, section 16A.641, 9.10 subdivision 8, is amended to read: 9.11 Subd. 8. [APPROPRIATION OF PROCEEDS.] (a) The proceeds of 9.12 bonds issued under each law are appropriated for the purposes 9.13 described in the law and in this subdivision. This 9.14 appropriation may never be canceled. 9.15 (b) Before the proceeds are received in the proper special 9.16 fund, the commissioner may transfer to that fund from the 9.17 general fund amounts not exceeding the expected proceeds from 9.18 the next bond sale. The commissioner shall return these amounts 9.19 to the general fund by transferring proceeds when received. The 9.20 amounts of these transfers are appropriated from the general 9.21 fund and from the bond proceeds. 9.22 (c) Actual and necessary travel and subsistence expenses of 9.23 employees and all other nonsalary expenses incidental to the 9.24 sale, printing, execution, and delivery of bonds must be paid 9.25 from the proceeds. The proceeds are appropriated for this 9.26 purpose. Bond proceeds must not be used to pay any part of the 9.27 salary of a state employee involved in the sale, printing, 9.28 execution, or delivery of the bonds. 9.29 (d) Bond proceeds remaining in a special fund after the 9.30 purposes for which the bonds were issued are accomplished or 9.31 abandoned, as certified by the head of the agency administering 9.32 the special fund, or as determined by the commissioner, unless 9.33 devoted under the appropriation act to another purpose 9.34 designated in the act, shall be transferred to the state bond 9.35 fund. 9.36 (e) Before the proceeds of state highway bonds are received 10.1 in the trunk highway fund, the commissioner may either (1) 10.2 transfer funds to the trunk highway fund from the general fund, 10.3 or (2) authorize the use of funds in the trunk highway fund, in 10.4 an amount not exceeding the expected proceeds from the next 10.5 state highway bond sale. These funds shall be used in 10.6 accordance with the legislative authorization to sell state 10.7 highway bonds. The commissioner shall return these funds to the 10.8 general fund or replace the funds used from the trunk highway 10.9 fund by transferring proceeds when received. The amounts of 10.10 these transfers are appropriated from the general fund and from 10.11 the state highway bond proceeds. 10.12 Sec. 2. [167.46] [PROPERTY PURCHASED WITH HIGHWAY BOND 10.13 PROCEEDS.] 10.14 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 10.15 subdivision apply to this section. 10.16 (b) "State trunk highway bond-financed property" means 10.17 property acquired, improved, or maintained in whole or in part 10.18 with the proceeds of state trunk highway bonds authorized to be 10.19 issued under article XIV, section 11, of the Minnesota 10.20 Constitution. 10.21 (c) "Outstanding state trunk highway bonds" means the 10.22 dollar amount of state trunk highway bonds, including any 10.23 refunding state trunk highway bonds, issued with respect to 10.24 state trunk highway bond-financed property, less the principal 10.25 amount of state trunk highway bonds paid or defeased. 10.26 Subd. 2. [LEASES.] State trunk highway bond-financed 10.27 property may only be leased for those purposes authorized by 10.28 law, and must be leased in accordance with the requirements of 10.29 all other laws and duly adopted rules applicable thereto, 10.30 orders, if any, of the commissioner of finance intended to 10.31 ensure the legality and tax-exempt status of outstanding state 10.32 trunk highway bonds, and with the approval of the commissioner 10.33 of finance. A lease of state trunk highway bond-financed 10.34 property, including any renewals that are solely at the option 10.35 of the lessee, must be for a term substantially less than the 10.36 useful life of the state trunk highway bond-financed property, 11.1 but may allow renewal beyond that term upon a determination by 11.2 the commissioner of transportation that the use continues to be 11.3 authorized by law and that the additional term is authorized by 11.4 law. A lease of state trunk highway bond-financed property must 11.5 be terminable by the commissioner of transportation if the other 11.6 contracting party defaults under the contract, and must provide 11.7 for oversight by the commissioner of transportation. 11.8 Notwithstanding the provisions of any other law, money received 11.9 by the state under a lease of state trunk highway bond-financed 11.10 property must be paid to the commissioner of transportation, 11.11 deposited in the state trunk highway fund, and used to pay or 11.12 redeem or defease any outstanding state trunk highway bonds in 11.13 accordance with the commissioner of finance's order authorizing 11.14 their issuance. The money paid to the commissioner of 11.15 transportation is appropriated for this purpose. Money in 11.16 excess of the foregoing requirement must be applied as otherwise 11.17 required by law. 11.18 Subd. 3. [SALES.] State trunk highway bond-financed 11.19 property must not be sold unless the sale is for a purpose 11.20 authorized by law, the sale is conducted in accordance with 11.21 applicable law and duly adopted rules, the sale is made in 11.22 accordance with orders, if any, of the commissioner of finance 11.23 intended to ensure the legality and tax-exempt status of 11.24 outstanding state trunk highway bonds, and the sale is approved 11.25 by the commissioner of finance. Notwithstanding the provisions 11.26 of any other law, the net proceeds of a sale of any state trunk 11.27 highway bond-financed property must be paid to the commissioner 11.28 of transportation, deposited in the state trunk highway fund, 11.29 and used to pay or redeem or defease any outstanding trunk 11.30 highway bonds in accordance with the commissioner of finance's 11.31 order authorizing their issuance. The net proceeds of sale paid 11.32 to the commissioner of transportation are appropriated for these 11.33 purposes. Any net proceeds of sale in excess of the foregoing 11.34 requirement must be applied as otherwise required by law. When 11.35 all of the new proceeds of sale have been applied as provided in 11.36 this subdivision, the sold property is no longer considered 12.1 state trunk highway bond-financed property. 12.2 Subd. 4. [RELATION TO OTHER LAWS.] This section applies to 12.3 all state trunk highway bond-financed property unless otherwise 12.4 provided by law.