Minnesota Legislature
SF 1564
as introduced - 92nd Legislature (2021 - 2022) Posted on 05/15/2021 07:01pm
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A bill for an act
relating to state finances; modifying the federal funds request process; adjusting
the process for reviewing federal funds expenditures; changing the membership
of the Legislative Advisory Commission; amending Minnesota Statutes 2020,
sections 3.30, subdivision 2; 3.3005, subdivisions 2, 2a, 4, 5, by adding a
subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 3.30, subdivision 2, is amended to read:
Subd. 2.
Members; duties.
(a) deleted text begin The majority leader of the senate or a designee, the chair
of the senate Committee on Finance, and the chair of the senate Division of Finance
responsible for overseeing the items being considered by the commission, the speaker of
the house or a designee, the chair of the house of representatives Committee on Ways and
Means, and the chair of the appropriate finance committee, or division of the house of
representatives committee responsible for overseeing the items being considered by the
commissioner, constitute the Legislative Advisory Commission. The division chair of the
Finance Committee in the senate and the division chair of the appropriate finance committee
or division in the house of representativesdeleted text end new text begin The Legislative Advisory Commission is composed
of the majority leader of the senate or a designee, the minority leader of the senate or a
designee, the president of the senate, the chair of the senate Committee on Finance, the
ranking minority member of the senate Committee on Finance, the chair of the appropriate
senate committee with budget jurisdiction over the item under consideration, the ranking
minority member of the appropriate senate committee with budget jurisdiction over the item
under consideration, the speaker of the house of representatives or a designee, the minority
leader of the house of representatives or a designee, the majority leader of the house of
representatives, the chair of the house of representatives Committee on Ways and Means,
the ranking minority member of the house of representatives Committee on Ways and
Means, the chair of the appropriate house of representatives committee with budget
jurisdiction over the item under consideration, and the ranking minority member of the
appropriate house of representatives committee with budget jurisdiction over the item under
consideration. The Legislative Advisory Commission members that serve on the commission
by being the chair or ranking minority member of the appropriate committee with budget
jurisdiction over the item under considerationnew text end shall rotate according to the items being
considered by the commission. If any of the members elect not to serve on the commission,
the house of which they are members, if in session, shall select some other member for the
vacancy. If the legislature is not in session, vacancies in the house of representatives
membership of the commission shall be filled by the last speaker of the house or, if the
speaker is not available, by the last chair of the house of representatives Rules Committee,
and by the last senate Committee on Committees or other appointing authority designated
by the senate rules in case of a senate vacancy. deleted text begin The commissioner of management and
budget shall be secretary of the commission and keep a permanent record and minutes of
its proceedings, which are public records. The commissioner of management and budget
shall post to the agency website all actions of the commission. Members shall receive
traveling and subsistence expenses incurred attending meetings of the commission. The
commission shall meet from time to time upon the call of the governor or upon the call of
the secretary at the request of two or more of its members.deleted text end A recommendation of the
commission must be made at a meeting of the commission unless a written recommendation
is signed by all the members entitled to vote on the item.
(b) new text begin Members shall receive traveling and subsistence expenses incurred while attending
meetings of the commission.
new text end
new text begin (c) new text end The chair new text begin of the commission new text end alternates between a member of the senate and a member
of the house of representatives in January of each odd-numbered year.
new text begin
(d) The commissioner of management and budget shall serve as secretary of the
Legislative Advisory Commission. The secretary shall keep a permanent record and minutes
of the commission's proceedings, which are public records.
new text end
new text begin
(e) The commissioner of management and budget shall post to the agency website all
actions of the commission.
new text end
new text begin
(f) The commission shall meet from time to time upon the call of the governor or upon
the call of the secretary at the request of two or more of the commission's members.
new text end
Sec. 2.
Minnesota Statutes 2020, section 3.3005, is amended by adding a subdivision to
read:
new text begin Subd. 1a. new text end
new text begin Application. new text end
new text begin
This section applies to the expenditure of all federal money
whether that federal money is appropriated under section 4.07 or another section, unless
the federal money is specifically excluded from the requirements of this section.
new text end
Sec. 3.
Minnesota Statutes 2020, section 3.3005, subdivision 2, is amended to read:
Subd. 2.
Governor's request to legislature.
new text begin (a) new text end A state agency shall not expend money
received by it under federal law for any purpose unless a request to spend federal money
from that source for that purpose in that biennium has been submitted by the governor to
the legislature as a part of a budget request submitted during or within ten days before the
start of a regular legislative session, or unless specifically authorized by law or as provided
by this section. A budget request submitted to the legislature according to this subdivision
must be submitted at least 20 days before the deadline set by the legislature for legislative
budget committees to act on finance bills.
new text begin
(b) A budget request to spend federal funds submitted to the legislature under this
subdivision must clearly identify the federal funds submitted for review under this subdivision
and subject to the review period under subdivision 2a. A state agency is prohibited from
expending money subject to the requirements of paragraph (a) if the request to spend federal
money from that source for that purpose in that biennium has not previously been reviewed
by the commission and is not clearly identified in the governor's federal funds budget request
for review under this subdivision.
new text end
Sec. 4.
Minnesota Statutes 2020, section 3.3005, subdivision 2a, is amended to read:
Subd. 2a.
Review of federal funds spending request.
new text begin (a) new text end Twenty days after a governor's
budget request that includes a request to spend federal money is submitted to the legislature
under subdivision 2, a state agency may expend money included in that request unless,
within the 20-day period, a member of the Legislative Advisory Commission requests further
review. If a Legislative Advisory Commission member requests further review of a federal
funds spending request, the agency may not expend the federal funds until the request has
been satisfied and withdrawn, the expenditure is approved in law, ornew text begin , if the commission has
not provided a negative review under paragraph (b),new text end the regular session of the legislature
is adjourned for the year.
new text begin
(b) If a member requests further review under paragraph (a), the member may request
the chair of the Legislative Advisory Commission to call a public meeting to review the
proposed expenditure of federal funds on which the member requested more information.
The chair of the commission must call a public meeting of the commission to review the
proposed expenditure within ten days. If at the public meeting a majority of the commission
members provide a negative recommendation on the proposed expenditure that is under
review, the agency is prohibited from expending the money. The commission may hold a
separate public meeting and may revoke its negative recommendation. If the negative
recommendation is revoked by the commission, the agency may expend the federal funds
after the regular session of the legislature is adjourned for the year.
new text end
Sec. 5.
Minnesota Statutes 2020, section 3.3005, subdivision 4, is amended to read:
Subd. 4.
Interim procedures; urgencies.
new text begin (a) new text end If federal money is awarded to the state
for expenditure after the deadline in subdivision 2 or while the legislature is not in session,
and the availability of money from that source or for that purpose or in that fiscal year could
not reasonably have been anticipated and included in the governor's budget request, and an
urgency requires that all or part of the money be encumbered or expended before the
legislature reconvenes or prior to the end of the 20-day period specified in subdivision 2,
it may be allotted to a state agency after the deleted text begin requirements of subdivision 5 are metdeleted text end new text begin Legislative
Advisory Commission has reviewed the requestnew text end .new text begin If the members of the commission make
a positive recommendation or no recommendation, or if the commission has not reviewed
the request within ten days after the date the request was submitted, the commissioner may
approve the request and the federal money may be allotted for expenditure. If the commission
makes a negative recommendation or a recommendation for further review within ten days
after the date the request was submitted, the commissioner is prohibited from approving
the expenditure of the federal money. If a request to expend federal money submitted under
this subdivision receives a negative recommendation or a recommendation for further review,
the request may be submitted again under subdivision 2 or 6.
new text end
new text begin
(b) For the purpose of this subdivision, a recommendation of the commission must be
made at a meeting of the commission unless a written recommendation is signed by all
members entitled to vote on the item.
new text end
new text begin
(c) For the purposes of this subdivision, an urgency exists if:
new text end
new text begin
(1) the expenditure of the federal funds would prevent imminent harm to life or property;
or
new text end
new text begin
(2) failure to encumber or spend the federal funds before the expiration of the earliest
time provided under this subdivision would result in a loss of the federal funds.
new text end
Sec. 6.
Minnesota Statutes 2020, section 3.3005, subdivision 5, is amended to read:
Subd. 5.
Legislative Advisory Commission review.
Federal money that is awarded
and becomes available under subdivision 3, 3a, new text begin or new text end 3bdeleted text begin , or 4deleted text end may be allotted after the
commissioner of management and budget has submitted the request to the members of the
Legislative Advisory Commission for their review and recommendation deleted text begin for further reviewdeleted text end .
deleted text begin If a recommendation is not made within ten days, no further review by the Legislative
Advisory Commission is required, and the commissioner shall approve or disapprove the
request. If a recommendation by any member is for further review the governor shall submit
the request to the Legislative Advisory Commission for its review and recommendation.
Failure or refusal of the commission to make a recommendation promptly is a negative
recommendation.deleted text end new text begin If a member of the commission makes a negative recommendation or
requests further review on a request within 20 days after the date the request was submitted,
the commissioner is prohibited from approving the expenditure of the federal money. If a
request to expend federal money submitted under this subdivision receives a negative
recommendation or a request for further review, the request may be submitted again under
subdivision 2. If the members of the commission make a positive recommendation or no
recommendation, the commissioner may approve the request and the federal money may
be allotted for expenditure.
new text end