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16A.28 TREATMENT OF UNUSED APPROPRIATIONS.
    Subdivision 1. Carryforward. Agencies may carry forward unexpended and unencumbered
nongrant operating balances from the first year of a biennium into the second year of the biennium.
    Subd. 2. Use of carryforward. No money shall be carried forward without the approval of
the commissioner of finance.
    Subd. 3. Lapse. Any portion of any appropriation not carried forward and remaining
unexpended and unencumbered at the close of a fiscal year lapses to the fund from which it
was originally appropriated. Any appropriation amounts not carried forward and remaining
unexpended and unencumbered at the close of a biennium lapse to the fund from which the
appropriation was made.
    Subd. 4. Reinstatement; final lapse. The commissioner may reinstate a lapsed appropriation
within three months of the lapse. A reinstated appropriation lapses again no later than three
months after it first lapsed. A payment under a reinstated appropriation may be made only under
section 16A.15, subdivision 3.
    Subd. 5. Permanent improvements. An appropriation to acquire or better public land
or buildings or other public improvements of a capital nature, including the acquisition of
real property does not lapse until the purposes of the appropriation are determined by the
commissioner, after consultation with the affected agencies, to be accomplished or abandoned.
This subdivision also applies to any part of an appropriation for a fiscal year that has been
requisitioned to acquire real property or construct permanent improvements. An appropriation to
pay moving expenses lapses at the end of the third fiscal year during which it was made available.
    Subd. 6. Canceled October 15. On October 15 all allotments and encumbrances for the last
fiscal year shall be canceled unless an agency head certifies to the commissioner that there is an
encumbrance for services rendered, goods ordered, or grants issued in the last fiscal year, or
certifies that funding will be carried forward under subdivision 1. Encumbrances for grants issued
by June 30 may be certified for a period of one year beyond the year in which the funds were
originally appropriated. Services rendered under grant contracts may occur during the certification
period. The commissioner may reinstate the part of the cancellation needed to meet the certified
encumbrance or charge the certified encumbrance against the current year's appropriation.
    Subd. 7. Exceptions. Except as otherwise expressly provided by law, subdivisions 1 to 6
apply to every appropriation of a stated sum for a specified purpose or purposes heretofore or
hereafter made, but do not, unless expressly provided by law, apply to any fund or balance of a
fund derived wholly or partly from special taxes, fees, earnings, fines, federal grants, or other
sources that are by law appropriated for special purposes by standing, continuing, or revolving
appropriations.
    Subd. 8. Historical Society. Except as provided by law, an appropriation made to the
Minnesota Historical Society, if not spent during the first year, may be spent during the second
year of a biennium. An unexpended balance remaining at the end of a biennium lapses and shall
be returned to the fund from which appropriated. An appropriation made to the society for all or
part of a biennium may be spent in either year of the biennium.
History: (53-18p) 1939 c 431 art 2 s 17; 1969 c 399 s 1; 1973 c 720 s 77; 1976 c 231 s 19;
1984 c 628 art 2 s 1; art 6 s 1; 1984 c 654 art 2 s 62; 1993 c 192 s 64; 1993 c 369 s 39; 1995 c
254 art 1 s 48,49; 1996 c 463 s 29; 2002 c 374 art 7 s 6