SF 2468

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the financing of state government; 
  1.3             canceling balances and appropriations and transferring 
  1.4             balances to the general fund in order to avert a 
  1.5             deficit; eliminating certain adjustments for inflation 
  1.6             in future fiscal years; refinancing certain trunk 
  1.7             highway projects through the sale of trunk highway 
  1.8             bonds; repealing the delay of June sales tax 
  1.9             collections; authorizing the sale of state bonds; 
  1.10            appropriating money; amending Minnesota Statutes 2000, 
  1.11            sections 16A.103, subdivisions 1a, 1b; 16A.152, 
  1.12            subdivision 1; 144.395, subdivision 1; Minnesota 
  1.13            Statutes 2001 Supplement, sections 16A.152, 
  1.14            subdivisions 1a, 2; 62J.694, subdivision 1; 289A.20, 
  1.15            subdivision 4; repealing Minnesota Statutes 2001 
  1.16            Supplement, section 16A.1523; Laws 2001, First Special 
  1.17            Session chapter 5, article 20, section 22.  
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1
  1.20    CANCELLATIONS; TRANSFERS; REFINANCING; SALES TAX COLLECTIONS
  1.21     Section 1.  Minnesota Statutes 2000, section 16A.152, 
  1.22  subdivision 1, is amended to read: 
  1.23     Subdivision 1.  [CASH FLOW ACCOUNT ESTABLISHED.] (a) A cash 
  1.24  flow account is created in the general fund in the state 
  1.25  treasury.  Beginning July 1, 2003, the commissioner of finance 
  1.26  shall restrict part or all of the balance before reserves in the 
  1.27  general fund as may be necessary to fund the cash flow 
  1.28  account as provided by law, up to $350,000,000. 
  1.29     (b) The commissioner of finance shall transfer the amount 
  1.30  necessary to bring the total amount of the cash flow account to 
  1.31  $350,000,000 on July 1, 1995.  The amounts restricted shall 
  2.1   remain in the account until drawn down and used to meet cash 
  2.2   flow deficiencies resulting from uneven distribution of revenue 
  2.3   collections and required expenditures during a fiscal year. 
  2.4      Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  2.5   16A.152, subdivision 1a, is amended to read: 
  2.6      Subd. 1a.  [BUDGET RESERVE.] A budget reserve account of 
  2.7   $653,000,000 is created in the general fund in the state 
  2.8   treasury.  The commissioner of finance shall transfer to the 
  2.9   budget reserve account on July 1 of each odd-numbered year any 
  2.10  amounts specifically appropriated by law to the budget reserve. 
  2.11     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  2.12  16A.152, subdivision 2, is amended to read: 
  2.13     Subd. 2.  [ADDITIONAL REVENUES; PRIORITY.] If on the basis 
  2.14  of a forecast of general fund revenues and expenditures, the 
  2.15  commissioner of finance determines that there will be a positive 
  2.16  unrestricted budgetary general fund balance at the close of the 
  2.17  biennium, the commissioner of finance must allocate money to the 
  2.18  budget reserve until the total amount in the account equals the 
  2.19  amount set in this section $653,000,000. 
  2.20     The amounts necessary to meet the requirements of this 
  2.21  section are appropriated from the general fund within two weeks 
  2.22  after the forecast is released. 
  2.23     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  2.24  62J.694, subdivision 1, is amended to read: 
  2.25     Subdivision 1.  [CREATION.] (a) The medical education 
  2.26  endowment fund is created in the state treasury.  The state 
  2.27  board of investment shall invest the fund under section 11A.24.  
  2.28  All earnings of the fund must be credited to the fund.  The 
  2.29  principal of the fund must be maintained inviolate, except that 
  2.30  the principal may be used to make expenditures from the fund for 
  2.31  the purposes specified in this section when the market value of 
  2.32  the fund falls below 105 percent of the cumulative total of the 
  2.33  tobacco settlement payments received by the state and credited 
  2.34  to the tobacco settlement fund under section 16A.87, subdivision 
  2.35  2.  For purposes of this section, "principal" means an amount 
  2.36  equal to the cumulative total of the tobacco settlement payments 
  3.1   received by the state and credited to the tobacco settlement 
  3.2   fund under section 16A.87, subdivision 2.  
  3.3      (b) If the commissioner of finance determines that probable 
  3.4   receipts to the general fund will be sufficient to meet the need 
  3.5   for expenditures from the general fund during a fiscal year, the 
  3.6   commissioner may use cash reserves of the medical education 
  3.7   endowment fund to pay expenses of the general fund.  If cash 
  3.8   reserves are transferred to the general fund to meet cash flow 
  3.9   needs, the cash flow transfers must be returned to the endowment 
  3.10  fund as soon as sufficient cash balances are available in the 
  3.11  general fund, but in any event before the end of the fiscal 
  3.12  year.  Any interest earned on cash flow transfers from the 
  3.13  endowment fund accrues to the endowment fund and not to the 
  3.14  general fund. 
  3.15     (c) The academic health center account is created as a 
  3.16  separate account in the medical education endowment fund.  The 
  3.17  account is invested under paragraph (a).  All earnings of the 
  3.18  account must be credited to the account.  The principal of the 
  3.19  account must be maintained inviolate, except that the principal 
  3.20  may be used to make expenditures from the account for the 
  3.21  purposes specified in subdivision 2a when the value of the 
  3.22  account falls below an amount equal to deposits made to the 
  3.23  account under section 16A.87, subdivision 3, paragraph (b). 
  3.24     Sec. 5.  Minnesota Statutes 2000, section 144.395, 
  3.25  subdivision 1, is amended to read: 
  3.26     Subdivision 1.  [CREATION.] (a) The tobacco use prevention 
  3.27  and local public health endowment fund is created in the state 
  3.28  treasury.  The state board of investment shall invest the fund 
  3.29  under section 11A.24.  All earnings of the fund must be credited 
  3.30  to the fund.  The principal of the fund must be maintained 
  3.31  inviolate, except that the principal may be used to make 
  3.32  expenditures from the fund for the purposes specified in this 
  3.33  section when the market value of the fund falls below 105 
  3.34  percent of the cumulative total of the tobacco settlement 
  3.35  payments received by the state and credited to the tobacco 
  3.36  settlement fund under section 16A.87, subdivision 2.  For 
  4.1   purposes of this section, "principal" means an amount equal to 
  4.2   the cumulative total of the tobacco settlement payments received 
  4.3   by the state and credited to the tobacco settlement fund under 
  4.4   section 16A.87, subdivision 2.  
  4.5      (b) If the commissioner of finance determines that probable 
  4.6   receipts to the general fund will be sufficient to meet the need 
  4.7   for expenditures from the general fund during a fiscal year, the 
  4.8   commissioner may use cash reserves of the tobacco use prevention 
  4.9   and local public health endowment fund to pay expenses of the 
  4.10  general fund.  If cash reserves are transferred to the general 
  4.11  fund to meet cash flow needs, the cash flow transfers must be 
  4.12  returned to the endowment fund as soon as sufficient cash 
  4.13  balances are available in the general fund, but in any event 
  4.14  before the end of the fiscal year.  Any interest earned on cash 
  4.15  flow transfers from the endowment fund accrues to the endowment 
  4.16  fund and not to the general fund. 
  4.17     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  4.18  289A.20, subdivision 4, is amended to read: 
  4.19     Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
  4.20  chapter 297A are due and payable to the commissioner monthly on 
  4.21  or before the 20th day of the month following the month in which 
  4.22  the taxable event occurred, or following another reporting 
  4.23  period as the commissioner prescribes or as allowed under 
  4.24  section 289A.18, subdivision 4, paragraph (f), except that use 
  4.25  taxes due on an annual use tax return as provided under section 
  4.26  289A.11, subdivision 1, are payable by April 15 following the 
  4.27  close of the calendar year. 
  4.28     (b) For a fiscal year ending before July 1, 2002, A vendor 
  4.29  having a liability of $120,000 or more during a fiscal year 
  4.30  ending June 30 must remit the June liability for the next year 
  4.31  in the following manner: 
  4.32     (1) Two business days before June 30 of the year, the 
  4.33  vendor must remit 62 percent of the estimated June liability to 
  4.34  the commissioner.  
  4.35     (2) On or before August 20 of the year, the vendor must pay 
  4.36  any additional amount of tax not remitted in June. 
  5.1      (c) A vendor having a liability of $120,000 or more during 
  5.2   a fiscal year ending June 30 must remit all liabilities on 
  5.3   returns due for periods beginning in the subsequent calendar 
  5.4   year by electronic means on or before the 20th day of the month 
  5.5   following the month in which the taxable event occurred, or on 
  5.6   or before the 20th day of the month following the month in which 
  5.7   the sale is reported under section 289A.18, subdivision 4, 
  5.8   except for 62 percent of the estimated June liability, which is 
  5.9   due two business days before June 30.  The remaining amount of 
  5.10  the June liability is due on August 20.  
  5.11     Sec. 7.  [BALANCES CANCELED TO GENERAL FUND.] 
  5.12     The unobligated balances in the following general fund 
  5.13  accounts created in the sections of Minnesota Statutes indicated 
  5.14  are canceled to the general fund: 
  5.15     (1) the cash flow account, Minnesota Statutes, section 
  5.16  16A.152, subdivision 1, estimated to be $350,000,000; 
  5.17     (2) the budget reserve account, Minnesota Statutes, section 
  5.18  16A.152, subdivision 1a, estimated to be $653,000,000; 
  5.19     (3) the tax relief account, Minnesota Statutes, section 
  5.20  16A.1522, subdivision 4, estimated to be $158,148,000; and 
  5.21     (4) the local government aid reform account, Minnesota 
  5.22  Statutes, section 16A.1523, estimated to be $14,000,000. 
  5.23     Sec. 8.  [TRANSFERS TO GENERAL FUND.] 
  5.24     Subdivision 1.  [ASSIGNED RISK PLAN.] By June 30, 2002, the 
  5.25  commissioner of finance shall transfer $94,900,000 in assets of 
  5.26  the assigned risk plan created under Minnesota Statutes, section 
  5.27  79.252, to the general fund. 
  5.28     Subd. 2.  [SPECIAL COMPENSATION FUND.] By June 30, 2002, 
  5.29  the commissioner of finance shall transfer $230,000,000 in 
  5.30  assets of the special compensation fund created under Minnesota 
  5.31  Statutes, section 176.129, to the general fund. 
  5.32     Sec. 9.  [APPROPRIATIONS CANCELED TO GENERAL FUND.] 
  5.33     Subdivision 1.  [TRAFFIC BOTTLENECKS AND INTERREGIONAL 
  5.34  CORRIDORS.] $245,240,000 of the appropriation from the general 
  5.35  fund in Laws 2000, chapter 479, article 1, section 2, 
  5.36  subdivision 3, is canceled to the general fund. 
  6.1      Subd. 2.  [EXCLUSIVE BUSWAY.] The unobligated balance of 
  6.2   the appropriation in Laws 2000, chapter 492, article 2, section 
  6.3   1, estimated to be $15,000,000, is canceled to the general fund. 
  6.4      Sec. 10.  [TRUNK HIGHWAY BOTTLENECKS AND INTERREGIONAL 
  6.5   CORRIDORS.] 
  6.6      Subdivision 1.  [APPROPRIATION.] $245,240,000 is 
  6.7   appropriated from the trunk highway fund to the commissioner of 
  6.8   transportation.  One-half is for state trunk highway 
  6.9   improvements within the seven-county metropolitan area primarily 
  6.10  for the purpose of improving traffic flow and expanding highway 
  6.11  capacity by eliminating traffic bottlenecks.  One-half is for 
  6.12  improvements on state trunk highways outside the seven-county 
  6.13  metropolitan area that the commissioner designates as at-risk 
  6.14  interregional corridors. 
  6.15     Subd. 2.  [BOND SALE.] To provide the money appropriated in 
  6.16  this section from the trunk highway fund, the commissioner of 
  6.17  finance shall sell and issue bonds of the state in an amount up 
  6.18  to $245,240,000 in the manner, upon the terms, and with the 
  6.19  effect prescribed by Minnesota Statutes, sections 167.50 to 
  6.20  167.52, and by the Minnesota Constitution, article XIV, section 
  6.21  11, at the times and in the amounts requested by the 
  6.22  commissioner of transportation.  The proceeds of the bonds, 
  6.23  except accrued interest and any premium received on the sale of 
  6.24  the bonds, must be credited to a bond proceeds account in the 
  6.25  trunk highway fund. 
  6.26     Sec. 11.  [REPEALER.] 
  6.27     (a) Minnesota Statutes 2001 Supplement, section 16A.1523, 
  6.28  is repealed. 
  6.29     (b) Laws 2001, First Special Session chapter 5, article 20, 
  6.30  section 22, is repealed. 
  6.31     Sec. 12.  [EFFECTIVE DATE.] 
  6.32     This article is effective the day following final 
  6.33  enactment, except that sections 4 and 5 are effective July 1, 
  6.34  2003. 
  6.35                             ARTICLE 2
  6.36                       INFLATION ADJUSTMENTS
  7.1      Section 1.  Minnesota Statutes 2000, section 16A.103, 
  7.2   subdivision 1a, is amended to read: 
  7.3      Subd. 1a.  [FORECAST PARAMETERS.] The forecast must assume 
  7.4   the continuation of current laws and reasonable estimates of 
  7.5   projected growth in the national and state economies and 
  7.6   affected populations.  Revenue must be estimated for all sources 
  7.7   provided for in current law.  Expenditures must be estimated for 
  7.8   all obligations imposed by law and those projected to occur as a 
  7.9   result of inflation and variables outside the control of the 
  7.10  legislature.  Expenditure estimates must not include an 
  7.11  allowance for inflation. 
  7.12     Sec. 2.  Minnesota Statutes 2000, section 16A.103, 
  7.13  subdivision 1b, is amended to read: 
  7.14     Subd. 1b.  [FORECAST VARIABLE.] In determining the rate of 
  7.15  inflation, the application of inflation, the amount of state 
  7.16  bonding as it affects debt service, the calculation of 
  7.17  investment income, and the other variables to be included in the 
  7.18  expenditure part of the forecast, the commissioner must consult 
  7.19  with the chairs and lead minority members of the senate state 
  7.20  government finance committee and the house ways and means 
  7.21  committee, and legislative fiscal staff.  This consultation must 
  7.22  occur at least three weeks before the forecast is to be 
  7.23  released.  No later than two weeks prior to the release of the 
  7.24  forecast, the commissioner must inform the chairs and lead 
  7.25  minority members of the senate state government finance 
  7.26  committee and the house ways and means committee, and 
  7.27  legislative fiscal staff of any changes in these variables from 
  7.28  the previous forecast.