SF 2722

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to finance; providing an appropriation for emergencies; requiring reports
and recommendations to bring the state budget into compliance with generally
accepted governmental accounting principles; requiring disclosure of the impact
of inflation on state expenditures; requiring consultation on expenditure data;
requiring a report of cash flow for the general fund; providing continuing
appropriations for the operation of state government under certain conditions;
giving legislators standing to sue to enjoin expenditure of money out of the state
treasury under certain circumstances; appropriating money; amending Minnesota
Statutes 2004, sections 9.061, subdivision 5; 16A.055, subdivision 1; 16A.103,
subdivisions 1b, 1c, 1e; 16A.11, subdivision 2, by adding a subdivision;
16A.138; proposing coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

Minnesota Statutes 2004, section 9.061, subdivision 5, is amended to read:

Subd. 5.

Spending power.

deleted text begin Where deleted text end new text begin When the governor has declared under section
12.31 that new text end an emergency exists new text begin , new text end the Executive Council new text begin , after consulting with the
Legislative Advisory Commission under section 3.30, new text end may expend money as necessary
therefor deleted text begin within the limit of appropriations made to the council for this purpose deleted text end new text begin , but not
to exceed $3,000,000 in any fiscal year, and that amount is annually appropriated from
the general fund for this purpose new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 2.

Minnesota Statutes 2004, section 16A.055, subdivision 1, is amended to read:

Subdivision 1.

List.

new text begin (a) new text end The commissioner shall:

(1) receive and record all money paid into the state treasury and safely keep it until
lawfully paid out;

(2) manage the state's financial affairs;

(3) keep the state's general account books according to generally accepted
government accounting principles;

(4) keep expenditure and revenue accounts according to generally accepted
government accounting principles;

(5) develop, provide instructions for, prescribe, and manage a state uniform
accounting system;

(6) provide to the state the expertise to ensure that all state funds are accounted for
under generally accepted government accounting principles; and

(7) coordinate the development of, and maintain standards for, internal auditing in
state agencies and, in cooperation with the commissioner of administration, report to the
legislature and the governor by January 31 of odd-numbered years, on progress made.

new text begin (b) The commissioner shall report to the legislature by January 15 each year any
laws that require the state's general fund budget not to be reported according to generally
accepted government accounting principles.
new text end

Sec. 3.

Minnesota Statutes 2004, section 16A.103, subdivision 1b, is amended to read:

Subd. 1b.

Forecast variable.

In determining the amount of state bonding as it
affects debt service, the calculation of investment income, and the other variables to be
included in the expenditure part of the forecast, the commissioner must consult with the
chairs and lead minority members of the senate deleted text begin State Government deleted text end Finance Committee
and the house Ways and Means Committee, and legislative fiscal staff. This consultation
must occur at least three weeks before the forecast is to be released. No later than two
weeks prior to the release of the forecast, the commissioner must inform the chairs and
lead minority members of the senate deleted text begin State Government deleted text end Finance Committee and the house
Ways and Means Committee, and legislative fiscal staff of any changes in these variables
from the previous forecast.

Sec. 4.

Minnesota Statutes 2004, section 16A.103, subdivision 1c, is amended to read:

Subd. 1c.

Expenditure data.

State agencies must submit any revisions in
expenditure data the commissioner determines necessary for the forecast to the
commissioner at least four weeks prior to the release of the forecast. The new text begin commissioner
shall make the new text end information submitted by state agencies and any modifications to that
information made by the commissioner deleted text begin must be made deleted text end available to legislative fiscal staff new text begin ,
and shall consult with legislative staff about the meaning of the information, new text end no later than
three weeks prior to the release of the forecast.

Sec. 5.

Minnesota Statutes 2004, section 16A.103, subdivision 1e, is amended to read:

Subd. 1e.

Economic information.

The commissioner must review economic
information including economic forecasts with legislative fiscal staff no later than two
weeks before the forecast is released. The commissioner must invite the chairs and lead
minority members of the senate deleted text begin State Government deleted text end Finance Committee and the house
Ways and Means Committee, and legislative fiscal staff to attend any meetings held with
outside economic advisors. The commissioner must provide legislative fiscal staff with
monthly economic forecast information received from outside sources.

Sec. 6.

new text begin [16A.107] CASH FLOW FORECAST.
new text end

new text begin Within two weeks after the November forecast of state revenue and expenditures
under section 16A.103, the commissioner shall deliver to the governor and the legislature
a forecast of cash flow for the general fund, showing the expected maximum and minimum
cash balance in the fund for each month of the forecast period.
new text end

Sec. 7.

Minnesota Statutes 2004, section 16A.11, subdivision 2, is amended to read:

Subd. 2.

Part one: message.

Part one of the budget, the governor's message,
shall include the governor's recommendations on the financial policy of the state for the
coming biennium, describing the important features of the budget plan, embracing a
general budget summary setting forth the aggregate figures of the budget so as to show
the balanced relation between the total proposed expenditures and the total anticipated
income, with the basis and factors on which the estimates are made, the amount to be
borrowed, and other means of financing the budget for the coming biennium, compared
with the corresponding figures for at least the last two completed fiscal years and the
current year. new text begin The budget plan must include recommendations on how to bring the budget
into compliance with generally accepted governmental accounting principles. new text end The
budget plan shall be supported by explanatory schedules or statements, classifying its
expenditures by agencies and funds, and the income by agencies, sources, funds, and the
proposed amount of new borrowing, as well as proposed new tax or revenue sources. The
budget plan shall be submitted for all special and dedicated funds, as well as the general
fund, and shall include the estimated amounts of federal aids, for whatever purpose
provided, together with estimated expenditures from them.

Sec. 8.

Minnesota Statutes 2004, section 16A.11, is amended by adding a subdivision
to read:

new text begin Subd. 3d. new text end

new text begin Budget bills. new text end

new text begin The necessary bills to implement the governor's operating
budget must be submitted to the legislature within two weeks after the operating budget
was submitted. The necessary bills to implement the governor's capital budget must be
submitted to the legislature within two weeks after the capital budget was submitted.
new text end

Sec. 9.

new text begin [16A.117] CONTINUING APPROPRIATIONS.
new text end

new text begin If a major appropriation bill to fund a given state agency for the next biennium is not
enacted before July 1 of an odd-numbered year, amounts sufficient to continue operation
of that agency and the programs administered by that agency through the fiscal year
ending June 30 of the next even-numbered year at the base level for that next fiscal year,
as determined according to section 16A.11, subdivision 3, and previous appropriation
acts, are appropriated to the agency from the appropriate funds and accounts in the state
treasury. The base level for an appropriation that was designated as onetime or was
onetime in nature is zero.
new text end

Sec. 10.

Minnesota Statutes 2004, section 16A.138, is amended to read:

16A.138 OFFICIALS NOT TO EXCEED APPROPRIATION.

new text begin Subdivision 1. new text end

new text begin Criminal liability; removal from office. new text end

When there has been an
appropriation for any purpose it shall be unlawful for any state board or official to incur
indebtedness on behalf of the board, the official, or the state in excess of the appropriation
made for such purpose. It is hereby made unlawful for any state board or official to incur
any indebtedness in behalf of the board, the official, or the state of any nature until after
an appropriation therefor has been made by the legislature. Any official violating these
provisions shall be guilty of a misdemeanor and the governor is hereby authorized and
empowered to remove any such official from office.

new text begin Subd. 2. new text end

new text begin Injunction. new text end

new text begin A member of the legislature has standing to sue to enjoin the
expenditure of money out of the treasury of this state not pursuant to an appropriation
made in a bill enacted by the legislature.
new text end