1998 Minnesota Statutes

     16A.1285 Departmental earnings. 

    Subdivision 1.    Definitions.  In this section, 
 "departmental earnings" means any charge for goods and services 
 and any regulatory, licensure, or other similar charges levied 
 by any state agency and paid by individuals, businesses, or 
 other nonstate entities.  This definition must not be construed 
 to include general taxes collected by a state agency or charges 
 for services provided by one state agency to another state 
 agency. 

    Subd. 2.    Policy.  Unless otherwise provided by law, 
 specific charges falling within definitions stipulated in 
 subdivision 1 must be set at a level that neither significantly 
 over recovers nor under recovers costs, including overhead 
 costs, involved in providing the services. 

    Unless specifically provided otherwise in statute, in 
 setting, adjusting, or authorizing charges that in whole or in 
 part recover previously unrecovered costs, recovery is limited 
 to those unrecovered costs incurred during the two fiscal years 
 immediately preceding the setting, adjustment, or authorization. 

    Subd. 3.    Duties of commissioner of finance.  The 
 commissioner of finance shall classify, monitor, analyze, and 
 report all departmental earnings that fall within the definition 
 established in subdivision 1.  Specifically, the commissioner 
 shall: 

    (1) establish and maintain a classification system that 
 clearly defines and distinguishes categories and types of 
 departmental earnings and takes into account the purpose of the 
 various earnings types and the extent to which various earnings 
 types serve a public or private interest; 

    (2) prepare a biennial report that documents collection 
 costs, purposes, and yields of all departmental earnings, the 
 report to be submitted to the legislature on or before the 
 fourth Tuesday in January in each odd-numbered year and to 
 include estimated data for the year in which the report is 
 prepared, actual data for the two years immediately before, and 
 estimates for the two years immediately following; and 

    (3) prepare and maintain a detailed directory of all 
 departmental earnings. 

    Subd. 4.    Rulemaking.  (a) Unless otherwise exempted 
 or unless specifically set by law, all charges for goods and 
 services, licenses, and regulation must be established or 
 adjusted as provided in chapter 14; except that agencies may 
 establish or adjust the following kinds of charges:  

    (1) charges for goods and services provided for the direct 
 and primary use of a private individual, business, or other 
 similar entity; 

    (2) nonrecurring charges; 

    (3) charges that would produce insignificant revenues; 

    (4) charges billed within or between state agencies; 

    (5) charges for admissions to or for use of public 
 facilities operated by the state, if the charges are set 
 according to prevailing market conditions to recover operating 
 costs; or 

    (6) proposed adjustments to charges that are within 
 consumer price level (CPI) ranges stipulated by the commissioner 
 of finance and do not change the type or purpose of the item 
 being adjusted. 

    (b) Departmental earnings changes or adjustments authorized 
 by the commissioner of finance or listed in paragraph (a), 
 clause (1), (5), or (6), must be reported by the commissioner of 
 finance to the chairs of the senate committee on finance and the 
 house ways and means committee before November 30 of each year. 

    Subd. 5.    Procedure.  The commissioner of finance 
 shall review and comment on all departmental charges submitted 
 under chapter 14.  The commissioner's comments and 
 recommendations must be included in the statement of need and 
 reasonableness and must address any fiscal and policy concerns 
 raised during the review process. 

    HIST: 1993 c 192 s 56; 1995 c 233 art 2 s 32-34; 1997 c 202 
 art 2 s 17