Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2004, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 284-H.F.No. 2446
An act relating to state government finance;
authorizing principles, criteria, and procedures for
consolidating and eliminating certain funds and
accounts; requiring reports; making technical and
clarifying changes to provisions related to the budget
process; amending Minnesota Statutes 2002, sections
3.23; 3.98, subdivision 3; 15.16, subdivision 5;
16A.102, by adding a subdivision; 16A.53, subdivision
1, by adding subdivisions; 16A.641, subdivision 2;
16B.24, subdivision 3; 16B.31, subdivision 3; 85A.02,
subdivision 5a; 115A.557, subdivision 4; 116O.071,
subdivision 3; 116P.08, subdivision 3; 144.701,
subdivision 4; 245.90; 270.063, subdivision 1; 270.71;
Minnesota Statutes 2003 Supplement, sections 16A.11,
subdivision 3; 84.026; 116J.966, subdivision 1;
repealing Minnesota Statutes 2002, section 3.24.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
SPECIAL REVENUE ACCOUNTS
Section 1. Minnesota Statutes 2002, section 16A.53,
subdivision 1, is amended to read:
Subdivision 1. [FUND CREATES FUNDS AND ACCOUNTS CREATED BY
LAW.] When a law creates a fund or account in the treasury into
which are deposited certain revenues and out of which certain
expenditures are appropriated, the commissioner may consider the
creation of the fund or account as the creation of a bookkeeping
account in the state's general books of account accounting
system so as to reflect the revenues deposited in the treasury
and credited to the bookkeeping account and the expenditures
appropriated from the treasury and charged to the bookkeeping
account. The commissioner must organize these bookkeeping
accounts into funds in accordance with generally accepted
accounting principles.
Sec. 2. Minnesota Statutes 2002, section 16A.53, is
amended by adding a subdivision to read:
Subd. 3. [COMMISSIONER TO MANAGE FUNDS AND ACCOUNTS.] (a)
As necessary, the commissioner may eliminate an account that is
no longer needed for the purposes specified for it in law.
(b) The commissioner must eliminate an account that meets
the criteria in paragraph (c) unless the commissioner determines
that the account is necessary for efficient fiscal operation.
(c) Criteria for account elimination are:
(1) receipts to the account and transfers into the account
average less than $1,000 per year in the past four years;
(2) year-end balances in the past four years average less
than $1,000 per year; and
(3) the account has been in existence for at least four
years.
(d) Any balances in an eliminated account must be
transferred to the general fund unless some other disposition is
specified in law. If the commissioner eliminates an account
established in law, the commissioner must notify the
legislature, in a report to the appropriate finance committees,
of the elimination.
Sec. 3. Minnesota Statutes 2002, section 16A.53, is
amended by adding a subdivision to read:
Subd. 4. [REPORT.] Each agency that manages accounts
within a fund must report at least annually to the appropriate
finance committees of the legislature on the number, purpose,
and recent financial activity in those accounts. The
commissioner must establish uniform criteria and timing for the
reports.
Sec. 4. [SPECIAL REVENUE FUND ACCOUNTS.]
Beginning in fiscal year 2005, the commissioner of finance
shall review one-quarter of the accounts in the accounting
special revenue fund. Each following year, the commissioner
shall review an additional one-quarter of the accounts until
they have all been evaluated. This review must categorize the
accounts by type and include a legislative history of each
account, a financial history of each account, and a rationale
for the existence of the account under generally accepted
accounting principles. The review must explain why the account
should not be in the general fund. Beginning with the 2005
regular session, the commissioner shall report to the
legislature on the accounts reviewed and recommend any accounts
that should be terminated. The commissioner shall work with
house and senate fiscal staff to determine the categorization of
accounts and other standards for the review.
Sec. 5. [COMMISSIONER'S RECOMMENDATIONS ON FEE ACCOUNTS.]
By January 2, 2005, the commissioner of finance must report
to the Finance Committee of the senate and the Ways and Means
Committee of the house of representatives on the different
procedures for accounting for and appropriating licensing fee
revenue, and must make recommendations for consistent treatment
of that fee revenue.
ARTICLE 2
STATE BUDGET PROCESS
Section 1. Minnesota Statutes 2002, section 3.23, is
amended to read:
3.23 [APPROPRIATIONS.]
A standing statutory appropriation, within the meaning of
this section and section 3.24, is one which sets apart a
specified or unspecified and open amount of public money or
funds of the state general fund for expenditure for a purpose
and makes the amount, or a part of it, available for use
continuously and at a time more distant than for a period of
time beyond the end of the second fiscal year after the session
of the legislature at which the appropriation is made.
Every appropriation stated to be an "annual appropriation,"
"payable annually," "appropriated annually," or "annually
appropriated," and every appropriation described by equivalent
terms or language is a standing statutory appropriation as
defined in this section.
Sec. 2. Minnesota Statutes 2002, section 3.98, subdivision
3, is amended to read:
Subd. 3. [DISTRIBUTION.] A copy of the fiscal note shall
be delivered to the chair of the Appropriations Ways and Means
Committee of the house of representatives, the chair of the
Finance Committee of the senate, the chair of the standing
committee to which the bill has been referred, to the chief
author of the bill and to the commissioner of finance.
Sec. 3. Minnesota Statutes 2002, section 15.16,
subdivision 5, is amended to read:
Subd. 5. [OBTAINING RECOMMENDATION.] No control of
state-owned lands may be transferred between state departments
or agencies without the departments or agencies first consulting
the chairs of the senate Finance Committee and house of
representatives Appropriations Ways and Means Committee and
obtaining their recommendations. The recommendations are
advisory only. Failure to obtain a prompt recommendation is
deemed a negative recommendation.
Sec. 4. Minnesota Statutes 2002, section 16A.102, is
amended by adding a subdivision to read:
Subd. 4. [REPORTING INFORMATION.] When updated information
is available at the time of a state revenue and expenditure
forecast as specified in section 16A.103, subdivision 1, and
after the completion of a legislative session, the Department of
Finance must report on revenue relative to personal income as
specified in subdivision 1.
Sec. 5. Minnesota Statutes 2003 Supplement, section
16A.11, subdivision 3, is amended to read:
Subd. 3. [PART TWO: DETAILED BUDGET.] (a) Part two of the
budget, the detailed budget estimates both of expenditures and
revenues, must contain any statements on the financial plan
which the governor believes desirable or which may be required
by the legislature. The detailed estimates shall include the
governor's budget arranged in tabular form.
(b) Tables listing expenditures for the next biennium must
show the appropriation base for each year as well as the
governor's total recommendation for that year for each
expenditure line. The appropriation base is the amount
appropriated for the second year of the current biennium,
adjusted in accordance with any provisions of law that specify
changes to the base. The tables must separately show any
adjustments to the base required by current law or policies of
the commissioner of finance. For forecasted programs, the
tables must also show the amount of the forecast adjustments,
based on the most recent forecast prepared by the commissioner
of finance under section 16A.103. For all programs, the tables
must show the amount of appropriation changes recommended by the
governor, after adjustments to the base and forecast
adjustments, and the total recommendation of the governor for
that year.
(c) The detailed estimates must include a separate line
listing the total cost of professional and technical service
contracts for the prior biennium and the projected costs of
those contracts for the current and upcoming biennium. They
must also include a summary of the personnel employed by the
agency, reflected as full-time equivalent positions.
(d) The detailed estimates for internal service funds must
include the number of full-time equivalents by program; detail
on any loans from the general fund, including dollar amounts by
program; proposed investments in technology or equipment of
$100,000 or more; an explanation of any operating losses or
increases in retained earnings; and a history of the rates that
have been charged, with an explanation of any rate changes and
the impact of the rate changes on affected agencies.
Sec. 6. Minnesota Statutes 2002, section 16A.641,
subdivision 2, is amended to read:
Subd. 2. [REPORT.] Before a sale of general obligation
bonds, the commissioner shall report the amount of bonds to be
issued and a detailed list of the projects or a statement of the
program to be financed to the chairs of the house Appropriations
Ways and Means and Tax Committees and of the senate Finance and
Tax Committees, and the minority leaders of the house and
senate, for their advisory recommendation. The recommendation
is positive if not received within ten days.
Sec. 7. Minnesota Statutes 2002, section 16B.24,
subdivision 3, is amended to read:
Subd. 3. [DISPOSAL OF OLD BUILDINGS.] The commissioner,
upon request of the head of an agency which has control of a
state-owned building which is no longer used or which is a fire
or safety hazard, shall, after obtaining approval of the chairs
of the senate Finance Committee and house of
representatives Appropriations Ways and Means Committee, sell,
wreck, or otherwise dispose of the building. In the event a
sale is made the proceeds shall be deposited in the proper
account or in the general fund.
Sec. 8. Minnesota Statutes 2002, section 16B.31,
subdivision 3, is amended to read:
Subd. 3. [FEDERAL AID.] (a) [APPLICATION FOR AID.] The
commissioner, or any other agency to whom an appropriation is
made for a capital improvement, shall apply for the maximum
federal share for each project.
(b) [ACCEPTANCE OF AID.] The commissioner is the state
agency empowered to accept money provided for or made available
to this state by the United States of America or any federal
department or agency for the construction and equipping of any
building for state purposes not otherwise provided for by law,
other than University of Minnesota buildings, in accordance with
the provisions of federal law and any rules or regulations
promulgated under federal law. The commissioner may do whatever
is required of this state by federal law, rules, and regulations
in order to obtain the federal money.
(c) [FEDERAL FUNDS CONSIDERED PART OF APPROPRIATION.] The
commissioner may after consultation with the chairs of the
senate Finance Committee and house of representatives
Appropriations Ways and Means Committee, adopt a plan, provide
for an improvement, or construct a building that contemplates
expenditure for its completion of more money than the
appropriation for it, if the excess money is provided by the
United States government and granted to the state of Minnesota
under federal law or any rule or regulation promulgated under
federal law. This federal money, for the purpose of this
section, is a part of the appropriation for the project.
(d) [DELAYED FEDERAL MONEY.] If an amount is payable to a
creditor of the state from a project account which is financed
partly with federal money and the project is included in
appropriations made to the commissioner for public buildings and
equipment, and the amount cannot be paid on time because of a
deficiency of money in the project account caused by a delay in
the receipt of federal money, the commissioner may provide money
needed to pay the amount by temporarily transferring the sum to
the project account from any other appropriation made to the
commissioner in the same act. Required money for a payment is
appropriated for that purpose. When the delayed federal money
is received, the commissioner shall have the amount of money
transferred returned to the account from which it came.
Sec. 9. Minnesota Statutes 2003 Supplement, section
84.026, is amended to read:
84.026 [CONTRACTS AND GRANTS FOR PROVISION OF NATURAL
RESOURCES SERVICES.]
The commissioner of natural resources is authorized to
enter into contractual or grant agreements with any public or
private entity for the provision of statutorily prescribed
natural resources services by or for the department. The
contracts or grants shall specify the services to be provided
and the amount and method of reimbursement. Funds generated in
a contractual agreement made pursuant to this section shall be
deposited in the special revenue fund and are appropriated to
the department for purposes of providing the services specified
in the contracts. All contractual and grant agreements shall be
processed in accordance with the provisions of section 16C.05.
The commissioner shall report revenues collected and
expenditures made under this section to the chairs of the
Committees on Appropriations Ways and Means in the house and
Finance in the senate by January 1 of each odd-numbered year.
Sec. 10. Minnesota Statutes 2002, section 85A.02,
subdivision 5a, is amended to read:
Subd. 5a. [EMPLOYEES.] (a) The board shall appoint an
administrator who shall serve as the executive secretary and
principal administrative officer of the board and, subject to
its approval, shall operate the Minnesota Zoological Garden and
enforce all rules and policy decisions of the board. The
administrator must be chosen solely on the basis of training,
experience, and other qualifications appropriate to the field of
zoo management and development. The board shall set the salary
of the administrator. The salary of the administrator may not
exceed 130 percent of the salary of the governor; however, any
amount exceeding 95 percent of the salary of the governor must
consist of nonstate funds. The administrator shall perform
duties assigned by the board and serves in the unclassified
service at the pleasure of the board. The administrator, with
the participation of the board, shall appoint a development
director in the unclassified service or contract with a
development consultant to establish mechanisms to foster
community participation in and community support for the
Minnesota Zoological Garden. The board may employ other
necessary professional, technical, and clerical personnel.
Employees of the zoological garden are eligible for salary
supplement in the same manner as employees of other state
agencies. The commissioner of finance shall determine the
amount of salary supplement based on available funds.
(b) The board may contract with individuals to perform
professional services and may contract for the purchases of
necessary species exhibits, supplies, services, and equipment.
The board may also contract for the construction and operation
of entertainment facilities on the zoo grounds that are not
directly connected to ordinary functions of the zoological
garden. The zoo board may not enter into a final agreement for
construction of an entertainment facility that is not directly
connected to the ordinary functions of the zoo until after final
construction plans have been submitted to the chairs of the
senate Finance and house Appropriations Ways and Means
Committees for their recommendations.
The zoo may not contract for entertainment during the
period of the Minnesota State Fair that would directly compete
with entertainment at the Minnesota State Fair.
Sec. 11. Minnesota Statutes 2002, section 115A.557,
subdivision 4, is amended to read:
Subd. 4. [REPORT.] By July 1 of each odd-numbered year,
the director shall report on how the money was spent and the
resulting statewide improvements in solid waste management to
the house of representatives and senate Appropriations Ways and
Means, Finance, and Environment and Natural Resources
Committees, the Finance Division of the senate Committee on
Environment and Natural Resources, and the house of
representatives Committee on Environment and Natural Resources
Finance. The report shall be included in the report required
under section 115A.411.
Sec. 12. Minnesota Statutes 2003 Supplement, section
116J.966, subdivision 1, is amended to read:
Subdivision 1. [GENERALLY.] (a) The commissioner shall
promote, develop, and facilitate trade and foreign investment in
Minnesota. In furtherance of these goals, and in addition to
the powers granted by section 116J.035, the commissioner may:
(1) locate, develop, and promote international markets for
Minnesota products and services;
(2) arrange and lead trade missions to countries with
promising international markets for Minnesota goods, technology,
services, and agricultural products;
(3) promote Minnesota products and services at domestic and
international trade shows;
(4) organize, promote, and present domestic and
international trade shows featuring Minnesota products and
services;
(5) host trade delegations and assist foreign traders in
contacting appropriate Minnesota businesses and investments;
(6) develop contacts with Minnesota businesses and gather
and provide information to assist them in locating and
communicating with international trading or joint venture
counterparts;
(7) provide information, education, and counseling services
to Minnesota businesses regarding the economic, commercial,
legal, and cultural contexts of international trade;
(8) provide Minnesota businesses with international trade
leads and information about the availability and sources of
services relating to international trade, such as export
financing, licensing, freight forwarding, international
advertising, translation, and custom brokering;
(9) locate, attract, and promote foreign direct investment
and business development in Minnesota to enhance employment
opportunities in Minnesota;
(10) provide foreign businesses and investors desiring to
locate facilities in Minnesota information regarding sources of
governmental, legal, real estate, financial, and business
services;
(11) enter into contracts or other agreements with private
persons and public entities, including agreements to establish
and maintain offices and other types of representation in
foreign countries, to carry out the purposes of promoting
international trade and attracting investment from foreign
countries to Minnesota and to carry out this section, without
regard to section 16C.06; and
(12) market trade-related materials to businesses and
organizations, and the proceeds of which must be placed in a
special revolving account and are appropriated to the
commissioner to prepare and distribute trade-related materials.
(b) The programs and activities of the commissioner of
employment and economic development and the Minnesota Trade
Division may not duplicate programs and activities of the
commissioner of agriculture or the Minnesota World Trade Center.
(c) The commissioner shall notify the chairs of the senate
Finance and house Appropriations Ways and Means Committees of
each agreement under this subdivision to establish and maintain
an office or other type of representation in a foreign country.
Sec. 13. Minnesota Statutes 2002, section 116O.071,
subdivision 3, is amended to read:
Subd. 3. [AUTHORITY TO PERFORM REQUESTED EVALUATIONS.] The
governor, speaker of the house of representatives, house of
representatives minority leader, senate majority leader, senate
minority leader, chair of the house of representatives
Appropriations Ways and Means Committee, chair of the senate
Finance Committee, director, or a member of the legislature
considering the introduction or approval of legislation
containing funding for scientifically and technologically
related research and development may request the corporation to
evaluate a loan or grant made or to be made or the proposed
legislation for funding scientifically and technologically
related research and development to determine (1) whether it
complies with the guidelines required by subdivision 1, clause
(1), item (ii); (2) whether it is technically feasible; and (3)
for development proposals, whether the proposal appears to have
the potential for economic development. Ad hoc committees may
be appointed by the corporation.
Sec. 14. Minnesota Statutes 2002, section 116P.08,
subdivision 3, is amended to read:
Subd. 3. [STRATEGIC PLAN REQUIRED.] (a) The commission
shall adopt a strategic plan for making expenditures from the
trust fund, including identifying the priority areas for funding
for the next six years. The strategic plan must be updated
every two years. The plan is advisory only. The commission
shall submit the plan, as a recommendation, to the house of
representatives Appropriations Ways and Means and senate Finance
Committees by January 1 of each odd-numbered year.
(b) The commission may accept or modify the draft of the
strategic plan submitted to it by the advisory committee before
voting on the plan's adoption.
Sec. 15. Minnesota Statutes 2002, section 144.701,
subdivision 4, is amended to read:
Subd. 4. [FILING FEES.] Each report which is required to
be submitted to the commissioner of health under sections
144.695 to 144.703 and which is not submitted to a voluntary,
nonprofit reporting organization in accordance with section
144.702 shall be accompanied by a filing fee in an amount
prescribed by rule of the commissioner of health. Upon the
withdrawal of approval of a reporting organization, or the
decision of the commissioner to not renew a reporting
organization, fees collected under section 144.702 shall be
submitted to the commissioner. Fees received under this
subdivision shall be deposited in a revolving fund and are
appropriated to the commissioner of health for the purposes of
sections 144.695 to 144.703. The commissioner shall report the
termination or nonrenewal of the voluntary reporting
organization to the chair of the Health and Human Services
Subdivision of the Appropriations Finance Committee of the house
of representatives, to the chair of the Health and Human
Services Division of the Finance Committee of the senate, and
the commissioner of finance.
Sec. 16. Minnesota Statutes 2002, section 245.90, is
amended to read:
245.90 [COURT AWARDED FUNDS, DISPOSITION.]
The commissioner of human services shall notify the house
Appropriations Ways and Means and senate Finance Committees of
the terms of any contractual arrangement entered into by the
commissioner and the attorney general, pursuant to an order of
any court of law, which provides for the receipt of funds by the
commissioner.
Any funds recovered or received by the commissioner
pursuant to an order of any court of law shall be placed in the
general fund.
Sec. 17. Minnesota Statutes 2002, section 270.063,
subdivision 1, is amended to read:
Subdivision 1. [APPROPRIATION.] For the purpose of
collecting delinquent state tax liabilities or debts as defined
in section 16D.02, subdivision 3, there is appropriated to the
commissioner of revenue an amount representing the cost of
collection by contract with collection agencies, revenue
departments of other states, or attorneys to enable the
commissioner to reimburse these agencies, departments, or
attorneys for this service. The commissioner shall report
quarterly on the status of this program to the chair of the
house Tax and Appropriation Ways and Means Committees and senate
Tax and Finance Committees.
Sec. 18. Minnesota Statutes 2002, section 270.71, is
amended to read:
270.71 [ACQUISITION AND RESALE OF SEIZED PROPERTY.]
For the purpose of enabling the commissioner of revenue to
purchase or redeem seized property in which the state of
Minnesota has an interest arising from a lien for unpaid taxes,
or to provide for the operating costs of collection activities
of the Department of Revenue, there is appropriated to the
commissioner an amount representing the cost of such purchases,
redemptions, or collection activities. Seized property acquired
by the state of Minnesota to satisfy unpaid taxes shall be
resold by the commissioner. The commissioner shall preserve the
value of seized property while controlling it, including but not
limited to the procurement of insurance. For the purpose of
refunding the proceeds from the sale of levied or redeemed
property which are in excess of the actual tax liability plus
costs of acquiring the property, there is hereby created a
levied and redeemed property refund account in the agency fund.
All amounts deposited into this account are appropriated to the
commissioner of revenue. The commissioner shall report
quarterly on the status of this program to the chairs of the
house Taxes and Appropriations Ways and Means Committees and
senate Taxes and Tax Laws and Finance Committees.
Sec. 19. [REVISOR'S INSTRUCTION.]
The revisor of statutes shall renumber Minnesota Statutes,
section 3.23, as section 16A.011, subdivision 14a.
Sec. 20. [REPEALER.]
Minnesota Statutes 2002, section 3.24, is repealed.
Presented to the governor May 18, 2004
Signed by the governor May 29, 2004, 12:30 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes