Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 2446

2nd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Introduction Posted on 02/26/2004
1st Engrossment Posted on 04/14/2004
2nd Engrossment Posted on 05/17/2004
Unofficial Engrossments
1st Unofficial Engrossment Posted on 05/15/2004

Current Version - 2nd Engrossment

  1.1                          A bill for an act 
  1.2             relating to state government finance; authorizing 
  1.3             principles, criteria, and procedures for consolidating 
  1.4             and eliminating certain funds and accounts; requiring 
  1.5             reports; making technical and clarifying changes to 
  1.6             provisions related to the budget process; amending 
  1.7             Minnesota Statutes 2002, sections 3.23; 3.98, 
  1.8             subdivision 3; 15.16, subdivision 5; 16A.102, by 
  1.9             adding a subdivision; 16A.53, subdivision 1, by adding 
  1.10            subdivisions; 16A.641, subdivision 2; 16B.24, 
  1.11            subdivision 3; 16B.31, subdivision 3; 85A.02, 
  1.12            subdivision 5a; 115A.557, subdivision 4; 116O.071, 
  1.13            subdivision 3; 116P.08, subdivision 3; 144.701, 
  1.14            subdivision 4; 245.90; 270.063, subdivision 1; 270.71; 
  1.15            Minnesota Statutes 2003 Supplement, sections 16A.11, 
  1.16            subdivision 3; 84.026; 116J.966, subdivision 1; 
  1.17            repealing Minnesota Statutes 2002, section 3.24. 
  1.19                             ARTICLE 1
  1.20                      SPECIAL REVENUE ACCOUNTS
  1.21     Section 1.  Minnesota Statutes 2002, section 16A.53, 
  1.22  subdivision 1, is amended to read: 
  1.24  LAW.] When a law creates a fund or account in the treasury into 
  1.25  which are deposited certain revenues and out of which certain 
  1.26  expenditures are appropriated, the commissioner may consider the 
  1.27  creation of the fund or account as the creation of a bookkeeping 
  1.28  account in the state's general books of account accounting 
  1.29  system so as to reflect the revenues deposited in the treasury 
  1.30  and credited to the bookkeeping account and the expenditures 
  1.31  appropriated from the treasury and charged to the bookkeeping 
  2.1   account.  The commissioner must organize these bookkeeping 
  2.2   accounts into funds in accordance with generally accepted 
  2.3   accounting principles. 
  2.4      Sec. 2.  Minnesota Statutes 2002, section 16A.53, is 
  2.5   amended by adding a subdivision to read: 
  2.7   As necessary, the commissioner may eliminate an account that is 
  2.8   no longer needed for the purposes specified for it in law.  
  2.9      (b) The commissioner must eliminate an account that meets 
  2.10  the criteria in paragraph (c) unless the commissioner determines 
  2.11  that the account is necessary for efficient fiscal operation. 
  2.12     (c) Criteria for account elimination are: 
  2.13     (1) receipts to the account and transfers into the account 
  2.14  average less than $1,000 per year in the past four years; 
  2.15     (2) year-end balances in the past four years average less 
  2.16  than $1,000 per year; and 
  2.17     (3) the account has been in existence for at least four 
  2.18  years. 
  2.19     (d) Any balances in an eliminated account must be 
  2.20  transferred to the general fund unless some other disposition is 
  2.21  specified in law.  If the commissioner eliminates an account 
  2.22  established in law, the commissioner must notify the 
  2.23  legislature, in a report to the appropriate finance committees, 
  2.24  of the elimination. 
  2.25     Sec. 3.  Minnesota Statutes 2002, section 16A.53, is 
  2.26  amended by adding a subdivision to read: 
  2.27     Subd. 4.  [REPORT.] Each agency that manages accounts 
  2.28  within a fund must report at least annually to the appropriate 
  2.29  finance committees of the legislature on the number, purpose, 
  2.30  and recent financial activity in those accounts.  The 
  2.31  commissioner must establish uniform criteria and timing for the 
  2.32  reports. 
  2.34     Beginning in fiscal year 2005, the commissioner of finance 
  2.35  shall review one-quarter of the accounts in the accounting 
  2.36  special revenue fund.  Each following year, the commissioner 
  3.1   shall review an additional one-quarter of the accounts until 
  3.2   they have all been evaluated.  This review must categorize the 
  3.3   accounts by type and include a legislative history of each 
  3.4   account, a financial history of each account, and a rationale 
  3.5   for the existence of the account under generally accepted 
  3.6   accounting principles.  The review must explain why the account 
  3.7   should not be in the general fund.  Beginning with the 2005 
  3.8   regular session, the commissioner shall report to the 
  3.9   legislature on the accounts reviewed and recommend any accounts 
  3.10  that should be terminated.  The commissioner shall work with 
  3.11  house and senate fiscal staff to determine the categorization of 
  3.12  accounts and other standards for the review. 
  3.14     By January 2, 2005, the commissioner of finance must report 
  3.15  to the Finance Committee of the senate and the Ways and Means 
  3.16  Committee of the house of representatives on the different 
  3.17  procedures for accounting for and appropriating licensing fee 
  3.18  revenue, and must make recommendations for consistent treatment 
  3.19  of that fee revenue. 
  3.20                             ARTICLE 2 
  3.21                        STATE BUDGET PROCESS 
  3.22     Section 1.  Minnesota Statutes 2002, section 3.23, is 
  3.23  amended to read: 
  3.24     3.23 [APPROPRIATIONS.] 
  3.25     A standing statutory appropriation, within the meaning of 
  3.26  this section and section 3.24, is one which sets apart a 
  3.27  specified or unspecified and open amount of public money or 
  3.28  funds of the state general fund for expenditure for a purpose 
  3.29  and makes the amount, or a part of it, available for use 
  3.30  continuously and at a time more distant than for a period of 
  3.31  time beyond the end of the second fiscal year after the session 
  3.32  of the legislature at which the appropriation is made.  
  3.33     Every appropriation stated to be an "annual appropriation," 
  3.34  "payable annually," "appropriated annually," or "annually 
  3.35  appropriated," and every appropriation described by equivalent 
  3.36  terms or language is a standing statutory appropriation as 
  4.1   defined in this section.  
  4.2      Sec. 2.  Minnesota Statutes 2002, section 3.98, subdivision 
  4.3   3, is amended to read: 
  4.4      Subd. 3.  [DISTRIBUTION.] A copy of the fiscal note shall 
  4.5   be delivered to the chair of the Appropriations Ways and Means 
  4.6   Committee of the house of representatives, the chair of the 
  4.7   Finance Committee of the senate, the chair of the standing 
  4.8   committee to which the bill has been referred, to the chief 
  4.9   author of the bill and to the commissioner of finance. 
  4.10     Sec. 3.  Minnesota Statutes 2002, section 15.16, 
  4.11  subdivision 5, is amended to read: 
  4.12     Subd. 5.  [OBTAINING RECOMMENDATION.] No control of 
  4.13  state-owned lands may be transferred between state departments 
  4.14  or agencies without the departments or agencies first consulting 
  4.15  the chairs of the senate Finance Committee and house of 
  4.16  representatives Appropriations Ways and Means Committee and 
  4.17  obtaining their recommendations.  The recommendations are 
  4.18  advisory only.  Failure to obtain a prompt recommendation is 
  4.19  deemed a negative recommendation. 
  4.20     Sec. 4.  Minnesota Statutes 2002, section 16A.102, is 
  4.21  amended by adding a subdivision to read: 
  4.22     Subd. 4.  [REPORTING INFORMATION.] When updated information 
  4.23  is available at the time of a state revenue and expenditure 
  4.24  forecast as specified in section 16A.103, subdivision 1, and 
  4.25  after the completion of a legislative session, the Department of 
  4.26  Finance must report on revenue relative to personal income as 
  4.27  specified in subdivision 1. 
  4.28     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  4.29  16A.11, subdivision 3, is amended to read: 
  4.30     Subd. 3.  [PART TWO:  DETAILED BUDGET.] (a) Part two of the 
  4.31  budget, the detailed budget estimates both of expenditures and 
  4.32  revenues, must contain any statements on the financial plan 
  4.33  which the governor believes desirable or which may be required 
  4.34  by the legislature.  The detailed estimates shall include the 
  4.35  governor's budget arranged in tabular form. 
  4.36     (b) Tables listing expenditures for the next biennium must 
  5.1   show the appropriation base for each year as well as the 
  5.2   governor's total recommendation for that year for each 
  5.3   expenditure line.  The appropriation base is the amount 
  5.4   appropriated for the second year of the current biennium, 
  5.5   adjusted in accordance with any provisions of law that specify 
  5.6   changes to the base.  The tables must separately show any 
  5.7   adjustments to the base required by current law or policies of 
  5.8   the commissioner of finance.  For forecasted programs, the 
  5.9   tables must also show the amount of the forecast adjustments, 
  5.10  based on the most recent forecast prepared by the commissioner 
  5.11  of finance under section 16A.103.  For all programs, the tables 
  5.12  must show the amount of appropriation changes recommended by the 
  5.13  governor, after adjustments to the base and forecast 
  5.14  adjustments, and the total recommendation of the governor for 
  5.15  that year.  
  5.16     (c) The detailed estimates must include a separate line 
  5.17  listing the total cost of professional and technical service 
  5.18  contracts for the prior biennium and the projected costs of 
  5.19  those contracts for the current and upcoming biennium.  They 
  5.20  must also include a summary of the personnel employed by the 
  5.21  agency, reflected as full-time equivalent positions. 
  5.22     (d) The detailed estimates for internal service funds must 
  5.23  include the number of full-time equivalents by program; detail 
  5.24  on any loans from the general fund, including dollar amounts by 
  5.25  program; proposed investments in technology or equipment of 
  5.26  $100,000 or more; an explanation of any operating losses or 
  5.27  increases in retained earnings; and a history of the rates that 
  5.28  have been charged, with an explanation of any rate changes and 
  5.29  the impact of the rate changes on affected agencies. 
  5.30     Sec. 6.  Minnesota Statutes 2002, section 16A.641, 
  5.31  subdivision 2, is amended to read: 
  5.32     Subd. 2.  [REPORT.] Before a sale of general obligation 
  5.33  bonds, the commissioner shall report the amount of bonds to be 
  5.34  issued and a detailed list of the projects or a statement of the 
  5.35  program to be financed to the chairs of the house Appropriations 
  5.36  Ways and Means and Tax Committees and of the senate Finance and 
  6.1   Tax Committees, and the minority leaders of the house and 
  6.2   senate, for their advisory recommendation.  The recommendation 
  6.3   is positive if not received within ten days.  
  6.4      Sec. 7.  Minnesota Statutes 2002, section 16B.24, 
  6.5   subdivision 3, is amended to read: 
  6.6      Subd. 3.  [DISPOSAL OF OLD BUILDINGS.] The commissioner, 
  6.7   upon request of the head of an agency which has control of a 
  6.8   state-owned building which is no longer used or which is a fire 
  6.9   or safety hazard, shall, after obtaining approval of the chairs 
  6.10  of the senate Finance Committee and house of 
  6.11  representatives Appropriations Ways and Means Committee, sell, 
  6.12  wreck, or otherwise dispose of the building.  In the event a 
  6.13  sale is made the proceeds shall be deposited in the proper 
  6.14  account or in the general fund.  
  6.15     Sec. 8.  Minnesota Statutes 2002, section 16B.31, 
  6.16  subdivision 3, is amended to read: 
  6.17     Subd. 3.  [FEDERAL AID.] (a)  [APPLICATION FOR AID.] The 
  6.18  commissioner, or any other agency to whom an appropriation is 
  6.19  made for a capital improvement, shall apply for the maximum 
  6.20  federal share for each project.  
  6.21     (b)  [ACCEPTANCE OF AID.] The commissioner is the state 
  6.22  agency empowered to accept money provided for or made available 
  6.23  to this state by the United States of America or any federal 
  6.24  department or agency for the construction and equipping of any 
  6.25  building for state purposes not otherwise provided for by law, 
  6.26  other than University of Minnesota buildings, in accordance with 
  6.27  the provisions of federal law and any rules or regulations 
  6.28  promulgated under federal law.  The commissioner may do whatever 
  6.29  is required of this state by federal law, rules, and regulations 
  6.30  in order to obtain the federal money.  
  6.32  commissioner may after consultation with the chairs of the 
  6.33  senate Finance Committee and house of representatives 
  6.34  Appropriations Ways and Means Committee, adopt a plan, provide 
  6.35  for an improvement, or construct a building that contemplates 
  6.36  expenditure for its completion of more money than the 
  7.1   appropriation for it, if the excess money is provided by the 
  7.2   United States government and granted to the state of Minnesota 
  7.3   under federal law or any rule or regulation promulgated under 
  7.4   federal law.  This federal money, for the purpose of this 
  7.5   section, is a part of the appropriation for the project.  
  7.6      (d)  [DELAYED FEDERAL MONEY.] If an amount is payable to a 
  7.7   creditor of the state from a project account which is financed 
  7.8   partly with federal money and the project is included in 
  7.9   appropriations made to the commissioner for public buildings and 
  7.10  equipment, and the amount cannot be paid on time because of a 
  7.11  deficiency of money in the project account caused by a delay in 
  7.12  the receipt of federal money, the commissioner may provide money 
  7.13  needed to pay the amount by temporarily transferring the sum to 
  7.14  the project account from any other appropriation made to the 
  7.15  commissioner in the same act.  Required money for a payment is 
  7.16  appropriated for that purpose.  When the delayed federal money 
  7.17  is received, the commissioner shall have the amount of money 
  7.18  transferred returned to the account from which it came.  
  7.19     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
  7.20  84.026, is amended to read: 
  7.23     The commissioner of natural resources is authorized to 
  7.24  enter into contractual or grant agreements with any public or 
  7.25  private entity for the provision of statutorily prescribed 
  7.26  natural resources services by or for the department.  The 
  7.27  contracts or grants shall specify the services to be provided 
  7.28  and the amount and method of reimbursement.  Funds generated in 
  7.29  a contractual agreement made pursuant to this section shall be 
  7.30  deposited in the special revenue fund and are appropriated to 
  7.31  the department for purposes of providing the services specified 
  7.32  in the contracts.  All contractual and grant agreements shall be 
  7.33  processed in accordance with the provisions of section 16C.05.  
  7.34  The commissioner shall report revenues collected and 
  7.35  expenditures made under this section to the chairs of the 
  7.36  Committees on Appropriations Ways and Means in the house and 
  8.1   Finance in the senate by January 1 of each odd-numbered year. 
  8.2      Sec. 10.  Minnesota Statutes 2002, section 85A.02, 
  8.3   subdivision 5a, is amended to read: 
  8.4      Subd. 5a.  [EMPLOYEES.] (a) The board shall appoint an 
  8.5   administrator who shall serve as the executive secretary and 
  8.6   principal administrative officer of the board and, subject to 
  8.7   its approval, shall operate the Minnesota Zoological Garden and 
  8.8   enforce all rules and policy decisions of the board.  The 
  8.9   administrator must be chosen solely on the basis of training, 
  8.10  experience, and other qualifications appropriate to the field of 
  8.11  zoo management and development.  The board shall set the salary 
  8.12  of the administrator.  The salary of the administrator may not 
  8.13  exceed 130 percent of the salary of the governor; however, any 
  8.14  amount exceeding 95 percent of the salary of the governor must 
  8.15  consist of nonstate funds.  The administrator shall perform 
  8.16  duties assigned by the board and serves in the unclassified 
  8.17  service at the pleasure of the board.  The administrator, with 
  8.18  the participation of the board, shall appoint a development 
  8.19  director in the unclassified service or contract with a 
  8.20  development consultant to establish mechanisms to foster 
  8.21  community participation in and community support for the 
  8.22  Minnesota Zoological Garden.  The board may employ other 
  8.23  necessary professional, technical, and clerical personnel.  
  8.24  Employees of the zoological garden are eligible for salary 
  8.25  supplement in the same manner as employees of other state 
  8.26  agencies.  The commissioner of finance shall determine the 
  8.27  amount of salary supplement based on available funds. 
  8.28     (b) The board may contract with individuals to perform 
  8.29  professional services and may contract for the purchases of 
  8.30  necessary species exhibits, supplies, services, and equipment. 
  8.31  The board may also contract for the construction and operation 
  8.32  of entertainment facilities on the zoo grounds that are not 
  8.33  directly connected to ordinary functions of the zoological 
  8.34  garden.  The zoo board may not enter into a final agreement for 
  8.35  construction of an entertainment facility that is not directly 
  8.36  connected to the ordinary functions of the zoo until after final 
  9.1   construction plans have been submitted to the chairs of the 
  9.2   senate Finance and house Appropriations Ways and Means 
  9.3   Committees for their recommendations. 
  9.4      The zoo may not contract for entertainment during the 
  9.5   period of the Minnesota State Fair that would directly compete 
  9.6   with entertainment at the Minnesota State Fair. 
  9.7      Sec. 11.  Minnesota Statutes 2002, section 115A.557, 
  9.8   subdivision 4, is amended to read: 
  9.9      Subd. 4.  [REPORT.] By July 1 of each odd-numbered year, 
  9.10  the director shall report on how the money was spent and the 
  9.11  resulting statewide improvements in solid waste management to 
  9.12  the house of representatives and senate Appropriations Ways and 
  9.13  Means, Finance, and Environment and Natural Resources 
  9.14  Committees, the Finance Division of the senate Committee on 
  9.15  Environment and Natural Resources, and the house of 
  9.16  representatives Committee on Environment and Natural Resources 
  9.17  Finance.  The report shall be included in the report required 
  9.18  under section 115A.411. 
  9.19     Sec. 12.  Minnesota Statutes 2003 Supplement, section 
  9.20  116J.966, subdivision 1, is amended to read: 
  9.21     Subdivision 1.  [GENERALLY.] (a) The commissioner shall 
  9.22  promote, develop, and facilitate trade and foreign investment in 
  9.23  Minnesota.  In furtherance of these goals, and in addition to 
  9.24  the powers granted by section 116J.035, the commissioner may:  
  9.25     (1) locate, develop, and promote international markets for 
  9.26  Minnesota products and services; 
  9.27     (2) arrange and lead trade missions to countries with 
  9.28  promising international markets for Minnesota goods, technology, 
  9.29  services, and agricultural products; 
  9.30     (3) promote Minnesota products and services at domestic and 
  9.31  international trade shows; 
  9.32     (4) organize, promote, and present domestic and 
  9.33  international trade shows featuring Minnesota products and 
  9.34  services; 
  9.35     (5) host trade delegations and assist foreign traders in 
  9.36  contacting appropriate Minnesota businesses and investments; 
 10.1      (6) develop contacts with Minnesota businesses and gather 
 10.2   and provide information to assist them in locating and 
 10.3   communicating with international trading or joint venture 
 10.4   counterparts; 
 10.5      (7) provide information, education, and counseling services 
 10.6   to Minnesota businesses regarding the economic, commercial, 
 10.7   legal, and cultural contexts of international trade; 
 10.8      (8) provide Minnesota businesses with international trade 
 10.9   leads and information about the availability and sources of 
 10.10  services relating to international trade, such as export 
 10.11  financing, licensing, freight forwarding, international 
 10.12  advertising, translation, and custom brokering; 
 10.13     (9) locate, attract, and promote foreign direct investment 
 10.14  and business development in Minnesota to enhance employment 
 10.15  opportunities in Minnesota; 
 10.16     (10) provide foreign businesses and investors desiring to 
 10.17  locate facilities in Minnesota information regarding sources of 
 10.18  governmental, legal, real estate, financial, and business 
 10.19  services; 
 10.20     (11) enter into contracts or other agreements with private 
 10.21  persons and public entities, including agreements to establish 
 10.22  and maintain offices and other types of representation in 
 10.23  foreign countries, to carry out the purposes of promoting 
 10.24  international trade and attracting investment from foreign 
 10.25  countries to Minnesota and to carry out this section, without 
 10.26  regard to section 16C.06; and 
 10.27     (12) market trade-related materials to businesses and 
 10.28  organizations, and the proceeds of which must be placed in a 
 10.29  special revolving account and are appropriated to the 
 10.30  commissioner to prepare and distribute trade-related materials.  
 10.31     (b) The programs and activities of the commissioner of 
 10.32  employment and economic development and the Minnesota Trade 
 10.33  Division may not duplicate programs and activities of the 
 10.34  commissioner of agriculture or the Minnesota World Trade Center. 
 10.35     (c) The commissioner shall notify the chairs of the senate 
 10.36  Finance and house Appropriations Ways and Means Committees of 
 11.1   each agreement under this subdivision to establish and maintain 
 11.2   an office or other type of representation in a foreign country. 
 11.3      Sec. 13.  Minnesota Statutes 2002, section 116O.071, 
 11.4   subdivision 3, is amended to read: 
 11.6   governor, speaker of the house of representatives, house of 
 11.7   representatives minority leader, senate majority leader, senate 
 11.8   minority leader, chair of the house of representatives 
 11.9   Appropriations Ways and Means Committee, chair of the senate 
 11.10  Finance Committee, director, or a member of the legislature 
 11.11  considering the introduction or approval of legislation 
 11.12  containing funding for scientifically and technologically 
 11.13  related research and development may request the corporation to 
 11.14  evaluate a loan or grant made or to be made or the proposed 
 11.15  legislation for funding scientifically and technologically 
 11.16  related research and development to determine (1) whether it 
 11.17  complies with the guidelines required by subdivision 1, clause 
 11.18  (1), item (ii); (2) whether it is technically feasible; and (3) 
 11.19  for development proposals, whether the proposal appears to have 
 11.20  the potential for economic development.  Ad hoc committees may 
 11.21  be appointed by the corporation. 
 11.22     Sec. 14.  Minnesota Statutes 2002, section 116P.08, 
 11.23  subdivision 3, is amended to read: 
 11.24     Subd. 3.  [STRATEGIC PLAN REQUIRED.] (a) The commission 
 11.25  shall adopt a strategic plan for making expenditures from the 
 11.26  trust fund, including identifying the priority areas for funding 
 11.27  for the next six years.  The strategic plan must be updated 
 11.28  every two years.  The plan is advisory only.  The commission 
 11.29  shall submit the plan, as a recommendation, to the house of 
 11.30  representatives Appropriations Ways and Means and senate Finance 
 11.31  Committees by January 1 of each odd-numbered year. 
 11.32     (b) The commission may accept or modify the draft of the 
 11.33  strategic plan submitted to it by the advisory committee before 
 11.34  voting on the plan's adoption. 
 11.35     Sec. 15.  Minnesota Statutes 2002, section 144.701, 
 11.36  subdivision 4, is amended to read: 
 12.1      Subd. 4.  [FILING FEES.] Each report which is required to 
 12.2   be submitted to the commissioner of health under sections 
 12.3   144.695 to 144.703 and which is not submitted to a voluntary, 
 12.4   nonprofit reporting organization in accordance with section 
 12.5   144.702 shall be accompanied by a filing fee in an amount 
 12.6   prescribed by rule of the commissioner of health.  Upon the 
 12.7   withdrawal of approval of a reporting organization, or the 
 12.8   decision of the commissioner to not renew a reporting 
 12.9   organization, fees collected under section 144.702 shall be 
 12.10  submitted to the commissioner.  Fees received under this 
 12.11  subdivision shall be deposited in a revolving fund and are 
 12.12  appropriated to the commissioner of health for the purposes of 
 12.13  sections 144.695 to 144.703.  The commissioner shall report the 
 12.14  termination or nonrenewal of the voluntary reporting 
 12.15  organization to the chair of the Health and Human Services 
 12.16  Subdivision of the Appropriations Finance Committee of the house 
 12.17  of representatives, to the chair of the Health and Human 
 12.18  Services Division of the Finance Committee of the senate, and 
 12.19  the commissioner of finance. 
 12.20     Sec. 16.  Minnesota Statutes 2002, section 245.90, is 
 12.21  amended to read: 
 12.23     The commissioner of human services shall notify the house 
 12.24  Appropriations Ways and Means and senate Finance Committees of 
 12.25  the terms of any contractual arrangement entered into by the 
 12.26  commissioner and the attorney general, pursuant to an order of 
 12.27  any court of law, which provides for the receipt of funds by the 
 12.28  commissioner.  
 12.29     Any funds recovered or received by the commissioner 
 12.30  pursuant to an order of any court of law shall be placed in the 
 12.31  general fund.  
 12.32     Sec. 17.  Minnesota Statutes 2002, section 270.063, 
 12.33  subdivision 1, is amended to read: 
 12.34     Subdivision 1.  [APPROPRIATION.] For the purpose of 
 12.35  collecting delinquent state tax liabilities or debts as defined 
 12.36  in section 16D.02, subdivision 3, there is appropriated to the 
 13.1   commissioner of revenue an amount representing the cost of 
 13.2   collection by contract with collection agencies, revenue 
 13.3   departments of other states, or attorneys to enable the 
 13.4   commissioner to reimburse these agencies, departments, or 
 13.5   attorneys for this service.  The commissioner shall report 
 13.6   quarterly on the status of this program to the chair of the 
 13.7   house Tax and Appropriation Ways and Means Committees and senate 
 13.8   Tax and Finance Committees. 
 13.9      Sec. 18.  Minnesota Statutes 2002, section 270.71, is 
 13.10  amended to read: 
 13.12     For the purpose of enabling the commissioner of revenue to 
 13.13  purchase or redeem seized property in which the state of 
 13.14  Minnesota has an interest arising from a lien for unpaid taxes, 
 13.15  or to provide for the operating costs of collection activities 
 13.16  of the Department of Revenue, there is appropriated to the 
 13.17  commissioner an amount representing the cost of such purchases, 
 13.18  redemptions, or collection activities.  Seized property acquired 
 13.19  by the state of Minnesota to satisfy unpaid taxes shall be 
 13.20  resold by the commissioner.  The commissioner shall preserve the 
 13.21  value of seized property while controlling it, including but not 
 13.22  limited to the procurement of insurance.  For the purpose of 
 13.23  refunding the proceeds from the sale of levied or redeemed 
 13.24  property which are in excess of the actual tax liability plus 
 13.25  costs of acquiring the property, there is hereby created a 
 13.26  levied and redeemed property refund account in the agency fund.  
 13.27  All amounts deposited into this account are appropriated to the 
 13.28  commissioner of revenue.  The commissioner shall report 
 13.29  quarterly on the status of this program to the chairs of the 
 13.30  house Taxes and Appropriations Ways and Means Committees and 
 13.31  senate Taxes and Tax Laws and Finance Committees. 
 13.32     Sec. 19.  [REVISOR'S INSTRUCTION.] 
 13.33     The revisor of statutes shall renumber Minnesota Statutes, 
 13.34  section 3.23, as section 16A.011, subdivision 14a.  
 13.35     Sec. 20.  [REPEALER.] 
 13.36     Minnesota Statutes 2002, section 3.24, is repealed.