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2004 Minnesota Session Laws

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                            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.

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