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2007 Minnesota Statutes

This is a historical version of this statute chapter. Also view the most recent published version.

Chapter 16A. Department of Finance

Chapter Sections
Section Headnote
16A.01DEPARTMENT OF FINANCE; COMMISSIONER; EMPLOYEES.
16A.011DEFINITIONS.
16A.012WARRANTS; DISCOUNTS.
16A.013GIFTS; ACCEPTANCE.
16A.014ADMINISTRATION OF GIFTS.
16A.015INVESTMENT OF GIFTS.
16A.016PAYMENT; APPROPRIATION.
16A.02Repealed, 1984 c 628 art 2 s 4
16A.04BUDGET AND CASH PROJECTION.
16A.041RULEMAKING.
16A.05Repealed, 1977 c 410 s 19
16A.055SOME OF THE COMMISSIONER'S DUTIES.
16A.06OTHER COMMISSIONER DUTIES AND POWERS.
16A.061MAY ISSUE COMMEMORATIVE MEDALLIONS.
16A.065PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES DOCUMENTS.
16A.07Repealed, 1984 c 628 art 2 s 4
16A.08Repealed, 1984 c 628 art 2 s 4
16A.09Repealed, 1976 c 231 s 34
16A.095STATE BUDGET SYSTEM.
16A.10BUDGET PREPARATION.
16A.101SERVICE CONTRACTS.
16A.102BUDGETING REVENUES RELATIVE TO PERSONAL INCOME.
16A.103FORECASTS OF REVENUE AND EXPENDITURES.
16A.105DEBT CAPACITY FORECAST.
16A.11BUDGET TO LEGISLATURE.
16A.115RELOCATION REQUESTS.
16A.12Repealed, 1977 c 455 s 95
16A.122WORK FORCE PLANNING AND REPORTING.
16A.123Repealed, 1993 c 192 s 110
16A.124PROMPT PAYMENT OF STATE AGENCY BILLS REQUIRED.
16A.1245PROMPT PAYMENT TO SUBCONTRACTORS.
16A.125STATE TRUST LANDS.
16A.126REVOLVING FUND BILLING.
16A.127INDIRECT COSTS.
16A.128Repealed, 1993 c 192 s 110
16A.1281Repealed, 1993 c 192 s 110
16A.1283LEGISLATIVE APPROVAL REQUIRED.
16A.1285DEPARTMENTAL EARNINGS.
16A.1286STATEWIDE SYSTEMS ACCOUNT.
16A.129OTHER COMMISSIONER POWERS.
16A.13FEDERAL TAX WITHHOLDING.
16A.131DEDUCTIONS FOR UNITED STATES SECURITIES, TRANSIT CARDS.
16A.132Repealed, 1984 c 628 art 2 s 4; 1984 c 654 art 2 s 155
16A.133CREDIT UNION, PARKING, OTHER DEDUCTIONS.
16A.134CHARITABLE ORGANIZATIONS PAYROLL DEDUCTIONS.
16A.138OFFICIALS NOT TO EXCEED APPROPRIATION.
16A.139MISAPPROPRIATION OF MONEY.
16A.14ALLOTMENT AND ENCUMBRANCE SYSTEM.
16A.15ACCOUNTING SYSTEM; ALLOTMENT AND ENCUMBRANCE.
16A.151PROCEEDS OF LITIGATION OR SETTLEMENT.
16A.152BUDGET RESERVE AND CASH FLOW ACCOUNTS.
16A.1521Repealed, 1Sp2001 c 5 art 20 s 24
16A.1522REBATE REQUIREMENTS.
16A.1523Repealed, 2002 c 220 art 13 s 11
16A.153Repealed, 1983 c 342 art 18 s 4
16A.154Repealed, 1Sp1986 c 1 art 5 s 12
16A.1541Renumbered 16A.152, subd 2
16A.155REFUNDS; CHARGED WHEN PAID.
16A.16Repealed, 1983 c 299 s 36
16A.17PREPARATION OF STATE PAYROLL.
16A.18ACCOUNTING, PAYROLL FOR COURTS, LEGISLATURE.
16A.19RETIREMENT, SOCIAL SECURITY DEFICIENCIES.
16A.25SALE OF SECURITIES BEFORE MATURITY.
16A.26ONE DEPOSITORY ACCOUNT FOR EACH TAX.
16A.27STATE FUNDS; DEPOSIT; CONTROL BY COMMISSIONER.
16A.271DEPOSITORIES, DESIGNATION.
16A.272DEPOSITS OF CERTAIN FUNDS OF PUBLIC CORPORATIONS, SECURITY.
16A.273INDUCEMENTS TO MAKE DEPOSITS.
16A.275AGENCY RECEIPTS; DEPOSIT, REPORT, CREDIT.
16A.276CASH OVERAGE AND SHORTAGE ACCOUNT.
16A.28TREATMENT OF UNUSED APPROPRIATIONS.
16A.281APPROPRIATIONS TO LEGISLATURE.
16A.283APPROPRIATIONS TO COURTS.
16A.284APPROPRIATIONS TO CONSTITUTIONAL OFFICERS.
16A.285ALLOWED APPROPRIATION TRANSFERS.
16A.30Repealed, 2005 c 156 art 2 s 52
16A.35Repealed, 1993 c 192 s 110
16A.36GRANTS FROM AND ADVANCES TO UNITED STATES.
16A.40WARRANTS AND ELECTRONIC FUND TRANSFERS.
16A.41CLAIMS AGAINST STATE.
16A.42CLAIMS: FORM, APPROVAL, REGISTER.
16A.43WARRANT A RECEIPT.
16A.44COMMISSIONER MAY COMPEL TESTIMONY.
16A.45OUTSTANDING UNPAID WARRANTS, CANCELLATION.
16A.46LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
16A.461DUPLICATE BONDS ISSUED.
16A.462EXECUTION OF DUPLICATES.
16A.463DELIVERY OF DUPLICATES; BOND.
16A.464BOND, WHEN CANCELED.
16A.47COMMISSIONER'S ACCOUNT, DOCUMENT DUTIES.
16A.48REFUND OF ERRONEOUS DEPOSITS.
16A.49REFUNDS OF $1 OR LESS.
16A.50FINANCIAL REPORT TO LEGISLATURE.
16A.501REPORT ON EXPENDITURE OF BOND PROCEEDS.
16A.502NONSTATE COMMITMENTS TO CAPITAL PROJECTS.
16A.51Repealed, 1984 c 654 art 2 s 155
16A.52Repealed, 1984 c 628 art 2 s 4
16A.53BOOKKEEPING ACCOUNTS.
16A.531FUNDS CREATED.
16A.532MINNESOTA STATE COLLEGES AND UNIVERSITIES ENTERPRISE ACCOUNT.
16A.54GENERAL FUND DEFINED.
16A.55Repealed, 1984 c 628 art 2 s 4
16A.56COMMISSIONER'S RECEIPT AND CLAIM DUTIES.
16A.57APPROPRIATION, ALLOTMENT, AND WARRANT NEEDED.
16A.575APPROPRIATIONS; NOT DISCLOSING SOURCE.
16A.58COMMISSIONER CUSTODIAN OF PAYMENT DOCUMENTS.
16A.59Repealed, 1984 c 654 art 2 s 155
16A.60COST TO COLLECT HIGHWAY TAXES TO GENERAL FUND.
16A.61CERTIFICATE MONEY TO GENERAL FUND.
16A.62MONEY IN ABOLISHED FUND TO GENERAL FUND.
16A.625Repealed, 1988 c 646 art 5 s 10
16A.626ELECTRONIC PAYMENTS.
16A.63Repealed, 1984 c 597 s 55
16A.631BOND PROCEEDS FUND.
16A.632CAPITAL ASSET PRESERVATION AND REPLACEMENT ACCOUNT.
16A.633CAPITAL FUNDING CONTINGENT ON MAINTAINING DATA.
16A.64Repealed, 1984 c 597 s 55
16A.641STATE BONDS; APPROPRIATIONS.
16A.642STATE BONDS: REPORTS; CANCELLATIONS.
16A.643ASSESSMENTS IF AGENCY MUST PAY DEBT SERVICE.
16A.645GOPHER STATE BONDS.
16A.646ZERO COUPON BONDS.
16A.65Subdivisions renumbered, repealed, or no longer in effect
16A.651Repealed, 1990 c 610 art 1 s 59
16A.66REFUNDING BONDS.
16A.661GENERAL OBLIGATION SPECIAL TAX BONDS.
16A.662INFRASTRUCTURE DEVELOPMENT BONDS.
16A.67MS 1980 Repealed, 2Sp1981 c 1 s 716A.67 MS 2000 Repealed, 1Sp2001 c 10 art 2 s 102
16A.6701Repealed, 1Sp2001 c 10 art 2 s 102
16A.671CERTIFICATES OF INDEBTEDNESS.
16A.672BONDS AND CERTIFICATES OF INDEBTEDNESS.
16A.673CERTIFICATES OF INDEBTEDNESS ISSUED BY STATE, NEGOTIABILITY.
16A.675PERSONS EXECUTING OBLIGATIONS NOT LIABLE.
16A.68FEDERAL FUNDS TO THE GAME AND FISH ACCOUNT.
16A.69APPROPRIATIONS INTO SINGLE PROJECT ACCOUNT.
16A.695PROPERTY PURCHASED WITH STATE BOND PROCEEDS.
16A.70Repealed, 1994 c 416 art 1 s 65
16A.71Repealed, 1994 c 416 art 1 s 65
16A.711Subdivisions renumbered, repealed, or no longer in effect
16A.712Repealed, 1994 c 587 art 3 s 21
16A.7216A.72 INCOME CREDITED TO GENERAL FUND; EXCEPTIONS.
16A.721STATE SEMINAR FEES, APPROPRIATION.
16A.722LOSS OR DAMAGE TO STATE PROPERTY.
16A.723GOVERNOR'S RESIDENCE; REIMBURSEMENT OF EXPENSES.
16A.724HEALTH CARE ACCESS FUND.
16A.725HEALTH IMPACT FUND AND FUND REIMBURSEMENTS.
16A.73Repealed, 1984 c 654 art 2 s 155
16A.75Repealed, 1981 c 356 s 377
16A.751Repealed, 1981 c 356 s 377
16A.752Repealed, 1981 c 356 s 377
16A.753Repealed, 1981 c 356 s 377
16A.754Repealed, 1981 c 356 s 377
16A.76Repealed, 1Sp2001 c 5 art 14 s 9
16A.79MATCHING FEDERAL APPROPRIATIONS.
16A.80Repealed, 1993 c 192 s 110
16A.85MASTER LEASE.
16A.86CAPITAL PROJECT GRANTS TO POLITICAL SUBDIVISIONS.
16A.87Repealed, 1Sp2003 c 1 art 2 s 136
16A.88TRANSIT ASSISTANCE FUND.
16A.01 DEPARTMENT OF FINANCE; COMMISSIONER; EMPLOYEES.
    Subdivision 1. Commissioner. The commissioner of finance manages the Department of
Finance. The commissioner is the state's controller and chief accounting and financial officer.
    Subd. 2. Appointment; qualification. The governor appoints the commissioner under
section 15.06. The commissioner must have broad experience as an executive financial manager.
    Subd. 3. Deputy; confidential secretary. The commissioner may appoint a deputy and a
confidential secretary. Each serves at the commissioner's pleasure in the unclassified service.
    Subd. 4. Organize, hire, delegate. The commissioner shall:
(1) organize the department;
(2) hire the agents and classified civil service employees necessary to run the department;
(3) define their duties; and
(4) set conditions for, and control, delegation of the commissioner's powers, duties, and
responsibilities to them.
History: 1973 c 492 s 1; 1977 c 305 s 8,9; 1984 c 628 art 2 s 1
16A.011 DEFINITIONS.
    Subdivision 1. Applicability. The definitions in this section apply to this chapter.
    Subd. 2. Agency. Except when otherwise modified, "agency" includes an office, department,
board, council, committee, authority, or commission of state government.
    Subd. 3. Allotment. "Allotment" means a limit placed by the commissioner on the amount to
be spent or encumbered during a period of time pursuant to an appropriation.
    Subd. 4. Appropriation. "Appropriation" means an authorization by law to expend or
encumber an amount in the treasury.
    Subd. 5.[Renumbered subd 17]
    Subd. 6. Biennium. "Biennium" means a period of two consecutive fiscal years beginning in
an odd-numbered calendar year and ending in the next odd-numbered calendar year.
    Subd. 7. Commissioner. "Commissioner" means the commissioner of finance unless a
different commissioner is specified.
    Subd. 8. Constitution. "Constitution" means the state Constitution.
    Subd. 9. Department. Except in subdivision 2, "department" means the Department of
Finance unless a different department is specified.
    Subd. 10. Employee. "Employee" includes elected officials, officers, and employees of
the state, or agency, as the context requires.
    Subd. 11. Encumbrance. "Encumbrance" means the commitment of a portion or all of
an allotment in order to meet an obligation that is expected to be incurred to pay for goods or
services received by the state or to pay a grant.
    Subd. 12. Executive agency. "Executive agency" means an agency in the executive branch
of state government.
    Subd. 12a. Executive branch state agency. "Executive branch state agency" means an
agency in the executive branch of state government, but does not include constitutional officers.
    Subd. 13. Finance Committee. "Finance Committee" means the Finance Committee of
the senate.
    Subd. 14. Fiscal year. "Fiscal year" means the period beginning at midnight between June
30 and July 1 and ending 12 months later.
    Subd. 14a. Statutory appropriation. A statutory appropriation 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
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 statutory appropriation as defined in this subdivision.
    Subd. 15.[Obsolete, 2003 c 112 art 2 s 50]
    Subd. 16. Treasury. Unless otherwise modified, "treasury" means the state treasury.
    Subd. 17. Ways and Means Committee. "Ways and Means Committee" means the chief
fiscal committee of the house of representatives.
History: (48) 1913 c 140 s 1; 1969 c 399 s 1; 1984 c 597 s 31; 1984 c 628 art 2 s 1; art 6 s
1; 1988 c 469 art 1 s 1; 1993 c 192 s 43-45; 2000 c 395 s 4; 2004 c 284 art 2 s 1,19
16A.012 WARRANTS; DISCOUNTS.
The commissioner of finance shall in no case purchase, redeem, or receive any warrant at
less than its face value, nor receive any fee or reward for transacting any official duty, other than
the salary provided by law. If the public revenue shall suffer loss by reason of the commissioner's
failure to call delinquents to account when required to do so by law, the commissioner shall be
accountable for all sums due from such delinquents as if the same had been paid.
History: RL s 46; 1986 c 444; 2003 c 112 art 2 s 50
16A.013 GIFTS; ACCEPTANCE.
    Subdivision 1. Procedure. The commissioner of finance is authorized to receive and accept,
on behalf of the state, any gift, bequest, devise, or endowment which may be made by any person,
by will, deed, gift, or otherwise, to or for the benefit of the state, or any of its departments or
agencies, or to or in aid, or for the benefit, support, or maintenance of any educational, charitable,
or other institution maintained in whole or in part by the state, or for the benefit of students,
employees, or inmates thereof, or for any proper state purpose or function, and the money,
property, or funds constituting such gift, bequest, devise, or endowment. No such gift, bequest,
devise, or endowment shall be so accepted unless the commissioner of finance determines that
it is for the interest of the state to accept it, and approve of and direct the acceptance. If a gift,
bequest, devise, or endowment is money or other negotiable instruments, then the deposit of it
does not constitute acceptance. In the event that the money or other negotiable instruments are
deposited but not approved, the amount deposited must be refunded. When, in order to effect the
purpose for which any gift, bequest, devise, or endowment has been accepted, it is necessary to
sell property so received, the commissioner of finance, upon request of the authority in charge
of the agency, department, or institution concerned, may sell it at a price which shall be fixed
by the State Board of Investment.
    Subd. 2. Charitable trusts; administration. When a charitable trust is created by will or
otherwise for the benefit of the state or any of its departments or agencies or to or in aid, or for the
benefit, support or maintenance of any educational, charitable, or other institution maintained in
whole or in part by the state, or for the benefit of students, employees, or inmates thereof and
any officer or employee of the state or any of its departments or agencies is named in the trust
instrument as trustee, it shall be presumed that such trust is a gift to be administered under this
section and the courts shall construe the instrument creating the trust accordingly.
    Subd. 3. Gift subject to contract. Whenever the gift, bequest, devise, or endowment
referred to in subdivisions 1 and 2 consists of real property, or an interest therein, which is subject
to a contract for the conveyance thereof made by the donor or a predecessor in interest with
another, or of the vendor's interest, or some portion thereof, in such a contract for conveyance, the
commissioner of finance is authorized, on behalf of and in the name of the state of Minnesota,
upon receipt from the vendee under such contract for conveyance, or the vendee's personal
representatives or assigns, of such amounts as are due the state or the department, agency, or
institution involved, to execute a deed conveying to such vendee, or the vendee's personal
representatives or assigns, all the right, title, and interest of the state of Minnesota in and to
the real property involved.
    Subd. 4. Termination of contract. In case of default by the purchaser, or the purchaser's
personal representatives or assigns, in the conditions of any such contract for the conveyance
of real estate, the commissioner of finance is authorized, in the name of the state of Minnesota,
to terminate such contract under and pursuant to the provisions of Minnesota Statutes 1941,
section 559.21.
    Subd. 5. Previous gifts. The provisions of subdivisions 3 and 4 apply to gifts, bequests,
devises, or endowments heretofore made.
History: 1907 c 170 s 1; 1941 c 353 s 1; 1945 c 359 s 1; 1973 c 492 s 14; 1983 c 301 s 63;
1986 c 444; 1995 c 254 art 1 s 39; 1Sp2001 c 10 art 2 s 15; 2003 c 112 art 2 s 50
16A.014 ADMINISTRATION OF GIFTS.
In case any such gift, bequest, devise, or endowment is so accepted, the same and the
proceeds thereof shall be administered and applied according to the terms of the will, deed of
gift, or other instrument defining, providing for, creating, or establishing the same; but all such
property and funds shall be held by the commissioner of finance in an official capacity and paid
out and disbursed the same as other state funds.
History: 1907 c 170 s 2; 1986 c 444; 2003 c 112 art 2 s 50
16A.015 INVESTMENT OF GIFTS.
In case it is provided by the terms of such will, deed of gift, or other instrument that the
capital of the money, property, or fund constituting such gift, bequest, devise, or endowment, or
any part of such capital, shall be kept invested, the same shall be invested and kept invested
in the same manner and by the same officers or body as the school funds of the state are by
law required to be invested.
History: 1907 c 170 s 3; 2003 c 112 art 2 s 50
16A.016 PAYMENT; APPROPRIATION.
    Subdivision 1. Payment; expenditure. In the event such gift, bequest, devise, or endowment
is made or designated by the donor for a certain institution, department, or agency, the
commissioner of finance shall, from time to time, pay out in the usual manner, upon the order
of the board, commission, or other body charged with the direct and immediate supervision,
control, or management of the designated institution, department, or agency, all money which may
become available for such purpose under the terms of such will, deed or gift, or other instrument;
and the same shall be expended and applied by this board, commission, or other body as nearly as
may be in accordance with the terms and conditions of such gift, bequest, devise, or endowment.
    Subd. 2. Appropriation. There is hereby appropriated from the fund in the state treasury
created under sections 16A.013 to 16A.015, to which such money was credited to such person,
department, agency, or institution as is entitled to such payment an amount sufficient to carry out
the terms and conditions of such gift, bequest, devise, or endowment.
History: 1907 c 170 s 4; 1941 c 353 s 2; 1959 c 158 s 1; 2003 c 112 art 2 s 50
16A.02 [Repealed, 1984 c 628 art 2 s 4]
16A.04 BUDGET AND CASH PROJECTION.
    Subdivision 1. To prepare, consult, supervise. The commissioner shall prepare the biennial
budget with projections of revenues and expenditures for both the biennial budget period and
the biennium following the biennial budget period. The governor shall supervise the preparation
unless there is a governor-elect, who then shall provide the supervision.
    Subd. 2.[Repealed, 1984 c 628 art 2 s 4]
    Subd. 3.[Repealed, 1984 c 628 art 2 s 4]
    Subd. 4.[Renumbered 16A.041]
History: 1973 c 492 s 4; 1984 c 628 art 2 s 1; art 6 s 1; 1984 c 654 art 2 s 51,52; 1993
c 192 s 46
16A.041 RULEMAKING.
The commissioner may make rules on the powers, duties, and responsibilities given to the
department or the commissioner under state law.
History: 1973 c 492 s 4; 1984 c 628 art 2 s 1; art 6 s 1; 1984 c 654 art 2 s 51,52
16A.05 [Repealed, 1977 c 410 s 19]
16A.055 SOME OF THE COMMISSIONER'S DUTIES.
    Subdivision 1. List. The commissioner shall:
(1) receive and record all money paid into the state treasury and safely keep it until lawfully
paid out;
(2) manage the state's financial affairs;
(3) keep the state's general account books according to generally accepted government
accounting principles;
(4) keep expenditure and revenue accounts according to generally accepted government
accounting principles;
(5) develop, provide instructions for, prescribe, and manage a state uniform accounting
system;
(6) provide to the state the expertise to ensure that all state funds are accounted for under
generally accepted government accounting principles; and
(7) coordinate the development of, and maintain standards for, internal auditing in state
agencies and, in cooperation with the commissioner of administration, report to the legislature
and the governor by January 31 of odd-numbered years, on progress made.
    Subd. 2. Accounting system required. An agency must use the uniform accounting system
prescribed by the commissioner.
    Subd. 3. Access to records. An agency must give the commissioner or a designee of the
commissioner free access to its financial documents.
    Subd. 4. Commissioner's designee. The commissioner may assign a designee to an agency
to monitor its financial activities and to ensure compliance with statutes and administrative
requirements promulgated by the commissioner. The designee may assist the agency as the
commissioner considers appropriate. The agency's head shall supervise its employees and develop
a budget consistent with its goals, responsibilities, and priorities.
    Subd. 5. Retirement fund reporting. (a) The commissioner may not require a public
retirement fund to use financial or actuarial reporting practices or procedures different from
those required by section 356.20 or 356.215.
(b) The commissioner may contract with the consulting actuary retained under section
356.214 for the preparation of quadrennial projection valuations as required under section
356.215, subdivisions 2 and 2a. The initial projection valuation under this paragraph, if any, is
due on May 1, 2003, and subsequent projection valuations are due on May 1 each fourth year
thereafter. The commissioner of finance shall assess the applicable statewide and major local
retirement plan or plans the cost of the quadrennial projection valuation.
    Subd. 6. Mission; efficiency. It is part of the department's mission that within the
department's resources the commissioner shall endeavor to:
(1) prevent the waste or unnecessary spending of public money;
(2) use innovative fiscal and human resource practices to manage the state's resources and
operate the department as efficiently as possible;
(3) coordinate the department's activities wherever appropriate with the activities of other
governmental agencies;
(4) use technology where appropriate to increase agency productivity, improve customer
service, increase public access to information about government, and increase public participation
in the business of government;
(5) utilize constructive and cooperative labor-management practices to the extent otherwise
required by chapters 43A and 179A;
(6) report to the legislature on the performance of agency operations and the accomplishment
of agency goals in the agency's biennial budget according to section 16A.10, subdivision 1; and
(7) recommend to the legislature appropriate changes in law necessary to carry out the
mission and improve the performance of the department.
History: (80-2) 1939 c 431 art 3 s 1; 1955 c 863 s 15; 1973 c 492 s 3; 1976 c 231 s 3; 1979
c 314 s 1; 1984 c 628 art 2 s 1; 1Sp1985 c 13 s 95; 1989 c 351 s 14; 1993 c 192 s 47; 1995 c 248
art 11 s 1; 1996 c 457 s 2; 1998 c 366 s 20; 2000 c 461 art 1 s 2; 2006 c 271 art 3 s 47
16A.06 OTHER COMMISSIONER DUTIES AND POWERS.
    Subdivision 1. Agency to comply. The commissioner has the duties and powers stated in this
section. An executive agency must do what the commissioner requires of it under this section.
    Subd. 2. Financial reports. The commissioner from time to time shall require an executive
agency to prepare financial reports on department forms so the administration and the legislature
can compare spending plans with appropriations for programs and activities.
    Subd. 3. Evaluate and compare costs. The commissioner shall provide a system to measure
the effect of fund expenditures so as to evaluate and compare the cost of functions or programs.
    Subd. 4. Reporting agency performance. Executive agencies shall prepare
performance-based budget plans according to schedules, forms, and standards as established
by the commissioner. The commissioner may also require other periodic reports of agency
performance.
    Subd. 5. Estimates. The commissioner from time to time shall require an executive agency
to report estimates of its income and receipts. The commissioner shall use the estimates to
evaluate the state's financial condition.
    Subd. 6. Report on financial affairs. The commissioner shall, when directed, report on the
state's financial affairs to the governor.
    Subd. 7. Information for policy making. The commissioner shall obtain from an executive
agency any information needed to make state financial policy.
    Subd. 8.[Repealed, 1994 c 632 art 3 s 65]
    Subd. 9. First class city teacher retirement funds aids reporting. Each year, on or before
April 15, the commissioner of finance shall report to the chairs of the senate Finance Committee
and the house Ways and Means Committee on expenditures for state aids to the Minneapolis and
Saint Paul teacher retirement fund associations under sections 354A.12 and 423A.02, subdivision
3
. This report shall include the amounts expended in the most recent fiscal year and estimates
of expected expenditures for the current and next fiscal year.
    Subd. 10.[Repealed, 2003 c 112 art 1 s 19]
History: 1973 c 492 s 6; 1973 c 582 s 3; 1984 c 628 art 2 s 1; 1984 c 654 art 2 s 53; 1987 c
275 s 2; 1993 c 192 s 48; 1996 c 438 art 4 s 1; 1Sp2001 c 10 art 2 s 20
16A.061 MAY ISSUE COMMEMORATIVE MEDALLIONS.
The commissioner of finance may issue medallions to commemorate popular
contemporaneous events of statewide interest.
The commissioner of finance may make reasonable arrangements with public or private
entities for the production, distribution, marketing, and sale of the medallions. The commissioner
of finance or other entity may solicit and receive nonstate funds or in-kind contributions in
connection with any part of the medallion program. Proceeds from sales, nonstate funds, and
in-kind contributions must be deposited in a dedicated account.
Money in the account is appropriated to the commissioner of finance for purposes of the
program. Any profit earned on the sale of the medallions must be used for grants to support
the event for which the medallions were issued. The state grant must be matched by an equal
amount from private sources.
History: 1991 c 345 art 1 s 41; 2003 c 112 art 2 s 50
16A.065 PREPAY SOFTWARE, SUBSCRIPTIONS, UNITED STATES DOCUMENTS.
Notwithstanding section 16A.41, subdivision 1, the commissioner may allow an agency to
make advance deposits or payments for software or software maintenance services for state-owned
or leased electronic data processing equipment, for sole source maintenance agreements where it
is not cost-effective to pay in arrears, for exhibit booth space or boat slip rental when required
by the renter to guarantee the availability of space, for registration fees where advance payment
is required or advance payment discount is provided, and for newspaper, magazine, and other
subscription fees customarily paid for in advance. The commissioner may also allow advance
deposits by any department with the Library of Congress and federal Supervisor of Documents
for items to be purchased from those federal agencies.
History: 1980 c 614 s 54; 1984 c 544 s 4; 1984 c 628 art 2 s 1; 1984 c 654 art 2 s 54; 1985 c
248 s 6; 1989 c 271 s 1; 1993 c 192 s 49; 2006 c 181 s 1
16A.07 [Repealed, 1984 c 628 art 2 s 4]
16A.08 [Repealed, 1984 c 628 art 2 s 4]
16A.09 [Repealed, 1976 c 231 s 34]
16A.095 STATE BUDGET SYSTEM.
    Subdivision 1.MS 1976 [Repealed, 1977 c 455 s 95]
    Subdivision 1. Rules and instructions. The commissioner shall make rules and instructions
for budget preparation. They must deal with classifying expenditures and with the content and
submission of budget requests and appropriation measures.
    Subd. 2. Budget improvements. The commissioner may choose executive agencies to test
improvements in the budget system. The commissioner shall recommend required legislation to
install improvements in the budget system for all executive agencies. The budget system must, to
the greatest extent practicable, emphasize alternative approaches in program development and
criteria to evaluate and measure performance.
    Subd. 2a. Mutual cooperation; due regard. Executive agencies must cooperate with the
commissioner in making a budget. The budget must meet the commissioner's requirements while
giving due regard to the executive agencies' requirements.
    Subd. 3.[Repealed, 1993 c 192 s 110]
History: 1976 c 231 s 4; 1977 c 455 s 71; 1984 c 628 art 2 s 1
16A.10 BUDGET PREPARATION.
    Subdivision 1. Budget format. In each even-numbered calendar year the commissioner
shall prepare budget forms and instructions for all agencies, including guidelines for reporting
agency performance measures, subject to the approval of the governor. The commissioner shall
request and receive advisory recommendations from the chairs of the senate Finance Committee
and house of representatives Ways and Means Committee before adopting a format for the
biennial budget document. By June 15, the commissioner shall send the proposed budget forms
to the appropriations and finance committees. The committees have until July 15 to give the
commissioner their advisory recommendations on possible improvements. To facilitate this
consultation, the commissioner shall establish a working group consisting of executive branch
staff and designees of the chairs of the senate Finance and house of representatives Ways and
Means Committees. The commissioner must involve this group in all stages of development of
budget forms and instructions. The budget format must show actual expenditures and receipts for
the most recent fiscal year, estimated expenditures and receipts for the current fiscal year, and
estimates for each fiscal year of the next biennium. Estimated expenditures must be classified by
funds and character of expenditures and may be subclassified by programs and activities. Agency
revenue estimates must show how the estimates were made and what factors were used. Receipts
must be classified by funds, programs, and activities. Expenditure and revenue estimates must be
based on the law in existence at the time the estimates are prepared.
    Subd. 1a. Purpose of performance data. Performance data shall be presented in the
budget proposal to:
(1) provide information so that the legislature can determine the extent to which state
programs are successful;
(2) encourage agencies to develop clear goals and objectives for their programs; and
(3) strengthen accountability to Minnesotans by providing a record of state government's
performance in providing effective and efficient services.
    Subd. 1b. Performance data format. Agencies shall present performance data that measures
the performance of programs in meeting program goals and objectives. Measures reported may
include indicators of outputs, efficiency, outcomes, and other measures relevant to understanding
each program. Agencies shall present as much historical information as needed to understand
major trends and shall set targets for future performance issues where feasible and appropriate.
The information shall appropriately highlight agency performance issues that would assist
legislative review and decision making.
    Subd. 1c. Performance measures for change items. For each change item in the budget
proposal requesting new or increased funding, the budget document must present proposed
performance measures that can be used to determine if the new or increased funding is
accomplishing its goals.
    Subd. 2. By October 15 and November 30. By October 15 of each even-numbered year, an
agency must file the following with the commissioner:
(1) budget estimates for the most recent and current fiscal years;
(2) its upcoming biennial budget estimates;
(3) a comprehensive and integrated statement of agency missions and outcome and
performance measures; and
(4) a concise explanation of any planned changes in the level of services or new activities.
The commissioner shall prepare and file the budget estimates for an agency failing to file
them. By November 30, the commissioner shall send the final budget format, agency budget
estimates for the next biennium, and copies of the filed material to the Ways and Means and
Finance Committees, except that the commissioner shall not be required to transmit information
that identifies executive branch budget decision items.
    Subd. 3. Duties to governor-elect. Immediately after the election of a new governor, the
commissioner shall report the budget estimates and make available to the governor-elect all
department information, staff, and facilities relating to the budget.
History: (53-18m) 1939 c 431 art 3 s 14; 1977 c 455 s 72,73; 1984 c 628 art 2 s 1; 1989
c 335 art 1 s 59; 1993 c 192 s 50,51; 1997 c 202 art 2 s 12; 1998 c 366 s 21; 1Sp2001 c 10
art 2 s 21; 2003 c 112 art 1 s 3,4
16A.101 SERVICE CONTRACTS.
The state accounting system must list expenditures for professional and technical service
contracts, as defined in section 16C.08, subdivision 1, as a separate category. No other
expenditures may be included in this category.
History: 1995 c 254 art 1 s 44; 1998 c 386 art 2 s 11
16A.102 BUDGETING REVENUES RELATIVE TO PERSONAL INCOME.
    Subdivision 1.[Repealed, 2007 c 148 art 2 s 84]
    Subd. 2.[Repealed, 2007 c 148 art 2 s 84]
    Subd. 3.[Repealed, 2007 c 148 art 2 s 84]
    Subd. 4. Reporting information. 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. The information
must specify (1) the share of personal income to be collected in taxes and other revenues to pay
for state and local government services and (2) the division of that revenue between state and
local government revenues.
History: 1994 c 587 art 7 s 1; 1998 c 389 art 16 s 8,9; 1999 c 250 art 1 s 45; 1Sp2003 c 1
art 2 s 31; 2004 c 284 art 2 s 4; 2007 c 148 art 2 s 11
16A.103 FORECASTS OF REVENUE AND EXPENDITURES.
    Subdivision 1. State revenue and expenditures. In February and November each year,
the commissioner shall prepare a forecast of state revenue and expenditures. The November
forecast must be delivered to the legislature and governor no later than the end of the first week of
December. The February forecast must be delivered to the legislature and governor by the end
of February. Forecasts must be delivered to the legislature and governor on the same day. If
requested by the Legislative Commission on Planning and Fiscal Policy, delivery to the legislature
must include a presentation to the commission.
    Subd. 1a. Forecast parameters. The forecast must assume the continuation of current laws
and reasonable estimates of projected growth in the national and state economies and affected
populations. Revenue must be estimated for all sources provided for in current law. Expenditures
must be estimated for all obligations imposed by law and those projected to occur as a result
of variables outside the control of the legislature. Expenditure estimates must not include an
allowance for inflation.
    Subd. 1b. Forecast variable. In determining the amount of state bonding as it affects debt
service, the calculation of investment income, and the other variables to be included in the
expenditure part of the forecast, the commissioner must consult with the chairs and lead minority
members of the senate State Government Finance Committee and the house Ways and Means
Committee, and legislative fiscal staff. This consultation must occur at least three weeks before
the forecast is to be released. No later than two weeks prior to the release of the forecast, the
commissioner must inform the chairs and lead minority members of the senate State Government
Finance Committee and the house Ways and Means Committee, and legislative fiscal staff of any
changes in these variables from the previous forecast.
    Subd. 1c. Expenditure data. State agencies must submit any revisions in expenditure
data the commissioner determines necessary for the forecast to the commissioner at least four
weeks prior to the release of the forecast. The information submitted by state agencies and any
modifications to that information made by the commissioner must be made available to legislative
fiscal staff no later than three weeks prior to the release of the forecast.
    Subd. 1d. Revenue data. On a monthly basis, the commissioner must provide legislative
fiscal staff with an update of the previous month's state revenues no later than 12 days after
the end of that month.
    Subd. 1e. Economic information. The commissioner must review economic information
including economic forecasts with legislative fiscal staff no later than two weeks before the
forecast is released. The commissioner must invite the chairs and lead minority members of the
senate Finance Committee and the house Ways and Means Committee, and legislative fiscal staff
to attend any meetings held with outside economic advisors. The commissioner must provide
legislative fiscal staff with monthly economic forecast information received from outside sources.
    Subd. 1f. Personal income. In addition, the commissioner shall forecast Minnesota personal
income for each of the years covered by the forecast and include these estimates in the forecast
documents.
    Subd. 1g. Period to be forecast. A forecast prepared during the first fiscal year of a biennium
must cover that biennium and the next biennium. A forecast prepared during the second fiscal
year of a biennium must cover that biennium and the next two bienniums.
    Subd. 2. Local revenue. In February and November of each year, the commissioner of
revenue shall prepare and deliver to the governor and the legislature forecasts of revenue to be
received by school districts as a group, counties as a group, and the group of cities and towns
that have a population of more than 2,500. The forecasts must assume the continuation of current
laws, projections of valuation changes in real property, and reasonable estimates of projected
growth in the national and state economies and affected populations. Revenue must be estimated
for property taxes, state and federal aids, local sales taxes, if any, and a single projection for
all other revenue for each group of affected local governmental units. As part of the February
forecast, the commissioner of revenue shall report to the governor and legislature on which
groups of local government units exceeded the revenue targets of the governor and legislature in
the most recent biennium.
    Subd. 3.[Repealed, 1999 c 250 art 1 s 115]
    Subd. 4. Report on expenditure increases. By January 10 of an odd-numbered year, the
commissioner of finance must report on those programs or components of programs for which
expenditures for the next biennium according to the forecast issued the previous November
are projected to increase more than 15 percent over the expenditures for that program in the
current biennium. The report must include an analysis of the factors that are causing the increases
in expenditures.
History: 1994 c 587 art 7 s 2; 1997 c 202 art 2 s 13; 1998 c 366 s 22; 1999 c 250 art 1 s 46;
2000 c 488 art 12 s 9; 2002 c 220 art 13 s 1,2; 2005 c 156 art 2 s 13; 2007 c 148 art 2 s 12
16A.105 DEBT CAPACITY FORECAST.
In February and November of each year the commissioner shall prepare a debt capacity
forecast to be delivered to the governor and legislature according to section 16A.103, subdivision
1
. The debt capacity forecast must include statements of the indebtedness of the state for bonds,
notes, and other forms of long-term general obligation indebtedness. The forecast must show the
actual amount of the debt service for at least the past two completed fiscal years, and the estimated
amount for the current fiscal year and the next six fiscal years, the debt authorized and unissued,
and the borrowing capacity for the next six fiscal years.
History: 1991 c 342 s 1; 1993 c 192 s 52; 1998 c 404 s 28
16A.11 BUDGET TO LEGISLATURE.
    Subdivision 1. When. The governor shall submit a three-part budget to the legislature.
Parts one and two, the budget message and detailed operating budget, must be submitted by
the fourth Tuesday in January in each odd-numbered year. However, in a year following the
election of a governor who had not been governor the previous year, parts one and two must be
submitted by the third Tuesday in February. Part three, the detailed recommendations as to capital
expenditure, must be submitted as follows: agency capital budget requests by July 15 of each
odd-numbered year, and governor's recommendations by January 15 of each even-numbered
year. Detailed recommendations as to information technology expenditure must be submitted as
part of the detailed operating budget. Information technology recommendations must include
projects to be funded during the next biennium and planning estimates for an additional two
bienniums. Information technology recommendations must specify purposes of the funding such
as infrastructure, hardware, software, or training.
    Subd. 2. Part one: message. Part one of the budget, the governor's message, shall include
the governor's recommendations on the financial policy of the state for the coming biennium,
describing the important features of the budget plan, embracing a general budget summary setting
forth the aggregate figures of the budget so as to show the balanced relation between the total
proposed expenditures and the total anticipated income, with the basis and factors on which the
estimates are made, the amount to be borrowed, and other means of financing the budget for the
coming biennium, compared with the corresponding figures for at least the last two completed
fiscal years and the current year. The budget plan shall be supported by explanatory schedules
or statements, classifying its expenditures by agencies and funds, and the income by agencies,
sources, funds, and the proposed amount of new borrowing, as well as proposed new tax or
revenue sources. The budget plan shall be submitted for all special and dedicated funds, as well as
the general fund, and shall include the estimated amounts of federal aids, for whatever purpose
provided, together with estimated expenditures from them.
    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. The appropriation base is the amount appropriated for the second year of the current
biennium. 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.
    Subd. 3a. Part three: detailed capital budget. The detailed capital budget must include
recommendations for capital projects to be funded during the next six fiscal years. It must be
submitted with projects recommended by the governor and in order of importance among that
agency's requests as determined by the agency originating the request.
    Subd. 3b.[Repealed, 1998 c 366 s 90]
    Subd. 3c.[Repealed, 1998 c 366 s 90]
    Subd. 4. Information; hearings. The commissioner shall, on request, give the governor or
the legislature information on the budget and attend legislative budget hearings.
    Subd. 5. Capital facilities note. The commissioner shall prepare a facilities note on each
capital project, estimating program cost impacts and efficiencies stemming from the approval
of that project.
    Subd. 6. Building maintenance and capital betterment. The detailed operating budget
and capital budget must include amounts necessary to maintain and better state buildings. The
commissioner of finance, in consultation with the commissioner of administration, the Board of
Trustees of the Minnesota State Colleges and Universities, and the regents of the University
of Minnesota, shall establish budget guidelines for building maintenance and betterment
appropriations. Unless otherwise provided by the commissioner of finance, the combined amount
to be budgeted each year for building maintenance and betterment in the operating budget and
capital budget is one percent of the replacement cost of the building, adjusted up or down
depending on the age and condition of the building.
    Subd. 7. Fees. The detailed operating budget for each executive branch agency must include
proposals for any new fees or any increases in existing fees. For purposes of this section, "fees"
has the meaning given in section 16A.1283, but excludes charges listed in paragraph (b) of
that section.
History: (53-18n) 1939 c 431 art 2 s 15; 1969 c 399 s 1; 1973 c 35 s 5; 1974 c 355 s 43;
1977 c 455 s 74,75; 1978 c 791 s 17; 1984 c 628 art 2 s 1; 1989 c 81 s 1; 1990 c 594 art 1 s 43;
1991 c 342 s 2-5; 1993 c 192 s 53,54; 1995 c 254 art 1 s 45; 1996 c 390 s 12,13; 1997 c 202 art 2
s 14-16; 1998 c 366 s 23,24; 1998 c 404 s 29,30; 1999 c 250 art 1 s 47; 2000 c 488 art 12 s 10;
2002 c 393 s 32; 1Sp2003 c 1 art 2 s 32; 2004 c 284 art 2 s 5; 2006 c 258 s 27
16A.115 RELOCATION REQUESTS.
An agency request for an appropriation to fund relocation of all or part of the agency must
include a statement of the cost per square foot of space currently occupied by the affected part of
the agency, and the anticipated cost per square foot of the space the affected part of the agency
will occupy after the proposed relocation.
History: 1994 c 643 s 32
16A.12 [Repealed, 1977 c 455 s 95]
16A.122 WORK FORCE PLANNING AND REPORTING.
    Subdivision 1. Agency authorized work force. Within any limits imposed by law, state
agencies may establish full-time, part-time, or seasonal positions as necessary to carry out
assigned responsibilities and missions except that actual levels of employment are limited by
availability of appropriated funding for salaries and benefits.
    Subd. 2. Transfers from grants prohibited. Unless otherwise provided by law, an agency
must not use grant or flow-through funds for salaries or other operating purposes.
    Subd. 3. Work force reporting. The commissioner shall prepare quarterly work force
reports as required for accurate reporting of state employment levels, whether for internal analysis
or for nationwide comparisons of public employment levels. The reports shall express total
employment in terms of full-time equivalent positions; shall indicate changes from previous
reporting periods; and shall take into account all positions, including full-time, part-time,
temporary, and other employees. In this subdivision, a full-time equivalent position means 2,080
working hours per year; except that the number of work hours may vary, depending upon the
exact number of working days in any given year. Independent contractors are not to be included
within the definition of a full-time equivalent position.
    Subd. 4. Budget reporting. For purposes of budgetary reporting, position counts must be
expressed as full-time equivalents as stipulated in subdivision 3. Estimated positions must be
based on actual funding in the year indicated. The biennial budget document submitted to the
legislature by the governor shall indicate full-time equivalent base level positions, the number of
projected positions, and the number of positions for each of the two years before the base year.
The governor's budget recommendations shall clearly specify any proposed changes in full-time
equivalent positions. All fiscal notes and any other budgetary items submitted to the legislature
shall specify relevant changes, both in full-time equivalent positions and accompanying changes
in salary dollars.
History: 1993 c 192 s 55
16A.123 [Repealed, 1993 c 192 s 110]
16A.124 PROMPT PAYMENT OF STATE AGENCY BILLS REQUIRED.
    Subdivision 1. Definitions. For the purposes of this section, the following terms have the
meanings here given them.
(a) "Commissioner" means the commissioner of finance.
(b) "State agency" has the meaning assigned to it in section 16B.01.
    Subd. 1a. State agencies are vendors. For purposes of this section, a state agency that bills
another state agency for a service or commodity is considered a vendor like any nonstate vendor.
    Subd. 2. Commissioner supervision. The commissioner shall monitor state agencies to
insure the prompt payment of vendor obligations.
    Subd. 3. Payment required. State agencies must pay each valid vendor obligation so that
the vendor receives payment within the vendor's early payment discount period. If there is no
early payment discount period, the state agency must pay the vendor within 30 days following the
receipt of the invoice for the completed delivery of the product or service.
    Subd. 4. Invoice errors. If an invoice is incorrect, defective, or otherwise improper, the
agency must notify the vendor within ten days of discovering the error. Upon receiving a corrected
invoice, the agency must pay the bill within the time limitation contained in subdivision 3.
    Subd. 4a. Invoice errors; Department of Human Services. For purposes of Department of
Human Services payments to hospitals receiving reimbursement under the medical assistance
and general assistance medical care programs, if an invoice is incorrect, defective, or otherwise
improper, the Department of Human Services must notify the hospital of all errors, within 30 days
of discovery of the errors.
    Subd. 4b. Health care payments. (a) The commissioner of human services must pay
or deny a valid vendor obligation for health services under the medical assistance, general
assistance medical care, or MinnesotaCare program within 30 days after receipt. A "valid vendor
obligation" means a clean claim submitted directly to the commissioner by an eligible health
care provider for health services provided to an eligible recipient. A "clean claim" means an
original paper or electronic claim with correct data elements, prepared in accordance with the
commissioner's published specifications for claim preparation, that does not require an attachment
or text information to pay or deny the claim. Adjustment claims, claims with attachments and
text information, and claims submitted to the commissioner as the secondary or tertiary payer,
that have been prepared in accordance with the commissioner's published specifications, must
be adjudicated within 90 days after receipt.
For purposes of this subdivision, paragraphs (b) and (c) apply.
(b) The agency is not required to make an interest penalty payment on claims for which
payment has been delayed for purposes of reviewing potentially fraudulent or abusive billing
practices, if there is an eventual finding by the agency of fraud or abuse.
(c) The agency is not required to make an interest penalty payment of less than $2.
    Subd. 5. Payment of interest on late payments required. (a) A state agency shall pay
interest to a vendor for undisputed billings when the agency has not paid the billing within 30
days following receipt of the invoice, merchandise, or service whichever is later. A negotiated
contract or agreement between a vendor and a state agency which requires an audit by the state
agency prior to acceptance and payment of the vendor's invoice shall not be considered past due
until 30 days after the completion of the audit by the state agency. Before any interest payment is
made, the vendor must invoice the state agency for such interest.
(b) The rate of interest paid by the agency on undisputed bills not paid within 30 days shall
be 1-1/2 percent per month or any part thereof.
(c) All interest penalties and collection costs must be paid from the agency's current
operating budget. No agency may seek to increase its appropriation for the purpose of obtaining
funds to pay interest penalties or collection costs.
(d) Any vendor who prevails in a civil action to collect interest penalties from a state agency
shall be awarded its costs and disbursements, including attorney's fees, incurred in bringing
the actions.
(e) No interest penalties may accrue against an agency that delays payment of a bill due to
a disagreement with the vendor; provided, that the dispute must be settled within 30 days after
the bill became overdue. Upon the resolution of the dispute, the agency must pay the vendor
accrued interest on all proper invoices for which payment was not received within the applicable
time limit contained in subdivision 3.
(f) The minimum monthly interest penalty payment that a state agency shall pay a vendor
for the unpaid balance for any one overdue bill equal to or in excess of $100 is $10. For unpaid
balances of less than $100, the state agency shall pay the actual penalty due to the vendor.
    Subd. 5a. University of Minnesota; payment of interest on late payments authorized.
The University of Minnesota may comply with the requirements of subdivision 5.
    Subd. 6.[Repealed, 1994 c 632 art 3 s 65]
    Subd. 7. Report to legislature. The commissioner shall report to the legislature by
December 31 of each year summarizing the state's payment record for the preceding fiscal year.
The report shall include the amount of interest penalties and the specific steps being taken to
reduce the incidence of late payments in the future.
    Subd. 8. Applicability. Subdivisions 1 to 7 apply to all agency purchases, leases, rentals, and
contracts for services, including construction and remodeling contracts, except for:
(1) purchases from or contracts for service with a public utility as defined in section 216B.02
or a telephone company as defined in section 237.01 that has on file with the Public Utilities
Commission an approved practice regarding late fees; and
(2) provider billings to and contracts with the commissioner of human services for health
care services, which are subject only to subdivisions 4a and 4b.
History: 1984 c 502 art 14 s 1; 1985 c 136 s 1-4; 1985 c 248 s 68; 1992 c 549 art 5 s 1;
1994 c 632 art 3 s 24,25; 1995 c 241 s 1,2; 1996 c 457 s 3,4; 1997 c 203 art 9 s 1
16A.1245 PROMPT PAYMENT TO SUBCONTRACTORS.
Each state agency contract must require the prime contractor to pay any subcontractor within
ten days of the prime contractor's receipt of payment from the state for undisputed services
provided by the subcontractor. The contract must require the prime contractor to pay interest of
1-1/2 percent per month or any part of a month to the subcontractor on any undisputed amount not
paid on time to the subcontractor. The minimum monthly interest penalty payment for an unpaid
balance of $100 or more is $10. For an unpaid balance of less than $100, the prime contractor
shall pay the actual penalty due to the subcontractor. A subcontractor who prevails in a civil action
to collect interest penalties from a prime contractor must be awarded its costs and disbursements,
including attorney's fees, incurred in bringing the action.
History: 1990 c 541 s 1
16A.125 STATE TRUST LANDS.
    Subdivision 1.[Repealed, 1976 c 231 s 34]
    Subd. 2.[Repealed, 1976 c 231 s 34]
    Subd. 3.[Repealed, 1976 c 231 s 34]
    Subd. 4.[Repealed, 1969 c 399 s 51]
    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used in this
subdivision, means public land in trust under the Constitution set apart as "forest lands under the
authority of the commissioner" of natural resources as defined by section 89.001, subdivision 13.
(b) The commissioner of finance shall credit the revenue from the forest trust fund lands to
the forest suspense account. The account must specify the trust funds interested in the lands and
the respective receipts of the lands.
(c) After a fiscal year, the commissioner of finance shall certify the total costs incurred for
forestry during that year under appropriations for the protection, improvement, administration,
and management of state forest trust fund lands and construction and improvement of forest roads
to enhance the forest value of the lands. The certificate must specify the trust funds interested
in the lands. The commissioner of natural resources shall supply the commissioner of finance
with the information needed for the certificate.
(d) After a fiscal year, the commissioner shall distribute the receipts credited to the suspense
account during that fiscal year as follows:
(1) the amount of the certified costs incurred by the state for forest management, forest
improvement, and road improvement during the fiscal year shall be transferred to the forest
management investment account established under section 89.039;
(2) the balance of the certified costs incurred by the state during the fiscal year shall be
transferred to the general fund; and
(3) the balance of the receipts shall then be returned prorated to the trust funds in proportion
to their respective interests in the lands which produced the receipts.
    Subd. 5a. Appropriation from state forest development account. Money accruing and
credited to the state forest development account is appropriated to the Division of Forestry in the
Department of Natural Resources to apply state forest resource management policy and plans
to forest trust fund lands. The appropriation is supervised and controlled by the commissioner
of natural resources.
The appropriation shall be spent according to law and remains available until spent. The
appropriation is not available for spending until any estimates required by law are approved by
the commissioner of finance. An obligation to spend money may not be made unless there is an
available balance not otherwise encumbered in the appropriation.
    Subd. 6.[Repealed by amendment, 1995 c 220 s 26]
    Subd. 6a.[Repealed, 1996 c 395 s 17]
    Subd. 7.[Repealed, 1976 c 231 s 34]
    Subd. 8.[Repealed, 1976 c 231 s 34]
    Subd. 9.[Repealed, 1976 c 231 s 34]
    Subd. 10.[Repealed, 1976 c 231 s 34]
History: (53-18s) 1939 c 431 art 2 s 20; 1953 c 741 s 60; 1955 c 714 s 1,2; 1957 c 140 s 1;
1957 c 852 s 1-4; 1959 c 344 s 1-4; 1959 c 667 s 1,2; 1961 c 571 s 1; 1965 c 901 s 57 subd 6; 1967
c 314 s 1; 1967 c 905 s 9; 1969 c 399 s 1; 1969 c 567 s 3; 1969 c 1129 art 3 s 1; 1971 c 24 s 2;
1973 c 254 s 3; 1973 c 492 s 14; 1973 c 507 s 45; 1974 c 10 s 1; 1974 c 224 s 1; 1976 c 239 s 10;
1982 c 511 s 31; 1983 c 301 s 88; 1984 c 628 art 2 s 1,4; art 6 s 1; 1984 c 654 art 2 s 55,56; 1989
c 335 art 4 s 7; 1994 c 465 art 3 s 4; 1995 c 220 s 26; 2003 c 112 art 2 s 50; 1Sp2005 c 1 art 2 s 12
16A.126 REVOLVING FUND BILLING.
    Subdivision 1. Set rates. The commissioner shall approve the rates an agency must pay to a
revolving fund for services.
    Subd. 2. Immediate needs. To reduce reserves for unforeseen needs, and so reduce these
rates, the commissioner may transfer money from the general fund to a revolving fund. Before
doing so, the commissioner must decide there is not enough money in the revolving fund for an
immediate, necessary expenditure. The amount necessary to make the transfer is appropriated
from the general fund to the commissioner of finance. The commissioner shall report the amount
and purpose of the transfer to the chair of the committee or division in the senate and house of
representatives with primary jurisdiction over the budget of the Department of Finance.
    Subd. 3. Repayment schedules. The commissioner shall make schedules for repayment to
the general fund of the transferred money. A schedule to repay money used to buy equipment
may extend over the equipment's useful life. Otherwise, a schedule may not extend beyond
five years. The repayment must include interest at a rate comparable to the rate earned by the
state on invested commissioner of finance's cash, as determined monthly by the commissioner.
An amount necessary to pay the interest is appropriated from the revolving fund to which the
transfer was made.
History: 1976 c 231 s 5; 1977 c 410 s 5; 1979 c 333 s 72; 1980 c 614 s 55; 1984 c 628 art 2
s 1; 1987 c 275 s 3; 1999 c 250 art 1 s 48; 2000 c 488 art 12 s 11; 2003 c 112 art 2 s 50
16A.127 INDIRECT COSTS.
    Subdivision 1. Statewide and agency indirect costs. (a) As used in this section, "statewide
indirect costs" means all general fund expenditures made by any state agency attributable to
providing general support services to any other state agency.
(b) As used in this section, "agency indirect costs" means all general support costs within
any agency that cannot be directly charged to any agency program.
(c) For purposes of this section, "agency" means any entity receiving general support
services.
    Subd. 2. Statewide plan. The commissioner shall annually prepare a plan identifying the
sources and amounts of each agency's statewide indirect costs for the current fiscal year. The
commissioner shall submit the plan to the cognizant federal agency for approval, and provide
copies to the governor and the legislature.
    Subd. 3. General reimbursement. (a) Unless indirect cost recoveries are specifically
appropriated in law, agencies are obligated to reimburse the general fund for all statewide
indirect costs, and that portion of agency indirect costs attributable to recoveries of general fund
expenditures. However, the commissioner may, for reasons of sound financial management, waive
the reimbursement under this subdivision for certain nongeneral fund activities.
(b) The commissioner shall record the reimbursement to the general fund of the statewide
and agency indirect costs attributable to an agency's nongeneral fund activities for the fiscal year.
All nonfederal agency indirect cost receipts are appropriated to the agency to pay administrative
expenses, unless they are determined to be a reimbursement of general fund expenditures.
    Subd. 3a. Appropriation. There is annually appropriated from all direct appropriated
nongeneral funds an amount sufficient to reimburse the general fund for both statewide indirect
costs, and any agency indirect costs attributable to general fund expenditures.
    Subd. 4. Federal proposals. Agency applications for federal money shall include necessary
submissions to recover both statewide and agency indirect costs. A copy of the indirect cost
submission must be submitted to the commissioner for review. An agency indirect cost plan is
unnecessary if the commissioner determines that the costs incurred in preparing and maintaining
it exceed the benefit received by the state. If less than the entire agency proposal is federally
approved, the commissioner may accept reimbursement of less than all of the federal receipts.
If no federal funds are approved for indirect costs, the agency must document that fact to the
commissioner.
    Subd. 5. Federal reimbursement. Agencies shall reimburse the general fund for all federal
money received as a recovery of statewide indirect costs. All federal agency indirect cost receipts
are appropriated to the agency to pay administrative expenses, unless they are determined to be a
reimbursement of general fund expenditures.
    Subd. 6. Required information. Agencies must supply the information required by the
commissioner, as needed, to carry out the provisions of this section.
    Subd. 7. Audit fees. The legislative auditor may recommend waiver, and the Legislative
Audit Commission may waive all or part of a fee for an audit. A state audited agency whose funds
are not administered by the commissioner of finance must transfer to the general fund the amount
of the cost of the audit attributable to the agency's nongeneral fund receipts.
    Subd. 8. Exemptions. (a) No statewide or agency indirect cost liability shall be accrued to
any program, appropriation, or account that is specifically exempted from the liability in federal or
state law, or if the commissioner determines the funds to be held in trust, or to be a pass-through,
workshop, or seminar account. Accounts receiving proceeds from bond issues and general fund
accounts are also exempt from this section.
(b) Except for the costs of the legislative auditor to conduct financial audits of federal
funds, this section does not apply to the Board of Trustees of the Minnesota State Colleges and
Universities. Receipts attributable to financial audits conducted by the legislative auditor of
federal funds administered by the board shall be deposited in the general fund.
    Subd. 9. Provision for natural resources. (a) The Department of Natural Resources is
exempt from recovering agency indirect costs except where federal funds are involved.
(b) The commissioner of natural resources need not bill the federal government, other states,
or Canadian provinces for the indirect costs of providing emergency fire fighting services, and
need not reimburse the general fund for those indirect costs if the waiver is reciprocated.
History: 1976 c 231 s 6; 1983 c 301 s 89,90; 1984 c 628 art 2 s 1; art 6 s 1; 1984 c 654 art
2 s 57; 1Sp1985 c 13 s 97-100; 1987 c 264 s 1; 1987 c 275 s 4; 1987 c 404 s 76; 1990 c 375 s
3; 1Sp1993 c 2 art 3 s 2; 1994 c 632 art 3 s 26; 1995 c 254 art 1 s 46; 1996 c 395 s 18; 2003
c 112 art 1 s 5; art 2 s 50
16A.128 [Repealed, 1993 c 192 s 110]
16A.1281 [Repealed, 1993 c 192 s 110]
16A.1283 LEGISLATIVE APPROVAL REQUIRED.
(a) Notwithstanding any law to the contrary, an executive branch state agency may not
impose a new fee or increase an existing fee unless the new fee or increase is approved by law.
For purposes of this section, a fee is any charge for goods, services, regulation, or licensure,
and, notwithstanding paragraph (b), clause (3), includes charges for admission to or for use of
public facilities owned by the state.
(b) This section does not apply to:
(1) charges billed within or between state agencies, or billed to federal agencies;
(2) the Minnesota State Colleges and Universities system;
(3) charges for goods and services provided for the direct and primary use of a private
individual, business, or other entity;
(4) charges that authorize use of state-owned lands and minerals administered by the
commissioner of natural resources by the issuance of leases, easements, cooperative farming
agreements, and land and water crossing licenses and charges for sales of state-owned lands
administered by the commissioner of natural resources; or
(5) state park fees and charges established by commissioner's order.
(c) An executive branch agency may reduce a fee that was set by rule before July 1, 2001,
without legislative approval. Chapter 14 does not apply to fee reductions under this paragraph.
History: 1999 c 250 art 1 s 49; 2001 c 206 s 1; 2003 c 28 art 1 s 1
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.
In a year following the election of a governor who had not been governor the previous year, the
report required by clause (2) must be submitted by the third Tuesday in February.
    Subd. 4.[Repealed, 1999 c 250 art 1 s 115 para (d)]
    Subd. 5.[Repealed, 1999 c 250 art 1 s 115 para (d)]
History: 1993 c 192 s 56; 1995 c 233 art 2 s 32-34; 1997 c 202 art 2 s 17; 1Sp2003 c 1
art 2 s 33
16A.1286 STATEWIDE SYSTEMS ACCOUNT.
    Subdivision 1. Continuation. The statewide systems account is a separate account in the
special revenue fund. All money resulting from billings for statewide systems services must be
deposited in the account. For the purposes of this section, statewide systems includes the state
accounting system, payroll system, human resources systems, procurement system, and related
information access systems.
    Subd. 2. Billing procedures. The commissioner may bill up to $7,520,000 in each fiscal year
for statewide systems services provided to state agencies, judicial branch agencies, the University
of Minnesota, the Minnesota State Colleges and Universities, and other entities. Each agency shall
transfer from agency operating appropriations to the statewide systems account the amount billed
by the commissioner. Billing policies and procedures related to statewide systems services must be
developed by the commissioner in consultation with the commissioners of employee relations and
administration, the University of Minnesota, and the Minnesota State Colleges and Universities.
    Subd. 3. Appropriation. Money transferred into the account is appropriated to the
commissioner to pay for statewide systems services.
    Subd. 4.[Repealed, 2002 c 379 art 1 s 114]
    Subd. 5.[Repealed, 2002 c 379 art 1 s 114]
History: 1Sp2001 c 10 art 2 s 22; 2005 c 156 art 2 s 14; 2007 c 148 art 2 s 13
16A.129 OTHER COMMISSIONER POWERS.
    Subdivision 1. List of salaries. The commissioner may require a list of the employees of an
agency, and that their salaries conform with the scale of compensation established by law.
    Subd. 2. Classified budget, accounts. The commissioner may classify expenditures and
revenue for budget making and accounting.
    Subd. 3. Cash advances. When the operations of any account would be impeded by
projected cash deficiencies resulting from delays in the receipt of grants, dedicated income, or
other similar receivables, and when the deficiencies would be corrected within the budget period
involved, the commissioner of finance may use fund level cash reserves to meet cash demands.
If funds are transferred from the general fund to meet cash flow needs, the cash flow transfers
must be returned to the general fund as soon as sufficient cash balances are available in the
account to which the transfer was made. Any interest earned on general fund cash flow transfers
accrues to the general fund and not to the accounts or funds to which the transfer was made. The
commissioner may advance general fund cash reserves to nongeneral fund accounts where the
receipts from other governmental units cannot be collected within the budget period.
History: (53-7) 1925 c 426 art 3 s 4; 1939 c 441 s 39; 1973 c 492 s 14; 1973 c 507 s 45;
1976 c 2 s 5; 1976 c 231 s 7; 1977 c 347 s 8; 1978 c 674 s 5; 1984 c 628 art 2 s 1; 1993 c 192 s
57; 1995 c 254 art 1 s 47; 1997 c 202 art 2 s 18; 1999 c 250 art 1 s 50; 2000 c 464 art 1 s 1;
2000 c 488 art 12 s 12; 2003 c 112 art 1 s 6
16A.13 FEDERAL TAX WITHHOLDING.
    Subdivision 1. Custodian; bond. The commissioner of finance is the custodian of all
money deposited with the commissioner of finance for federal tax withheld from the pay of any
officer or employee of the state of Minnesota. The commissioner of finance's bond to the state
shall cover the liability for the custodian's acts. The deposits are subject to laws on keeping
and paying out state money.
    Subd. 2. Commissioner as federal agent. The commissioner may cooperate with and act as
agent for the United States of America in collecting federal tax from the pay of employees.
    Subd. 2a. Procedure. The commissioner shall see that the deduction for the withheld tax
is made from an employee's pay on the payroll abstract. The commissioner shall approve one
warrant payable to the commissioner for the total amount deducted on the abstract. Deductions
from the pay of an employee paid direct by an agency shall be made by the employee's payroll
authority. A later deduction must correct an error made on an earlier deduction. The paying
authority shall see that a warrant or check for the deductions is promptly sent to the commissioner.
The commissioner shall deposit the amount of the warrant or check to the credit of the proper
federal authority or other person authorized by federal law to receive it.
    Subd. 2b. Appropriation. There is appropriated the amount necessary to discharge the state's
obligation under federal law requiring the deductions from pay in this section.
    Subd. 3. Reports; payments. The commissioner shall report as required by federal law on
the deductions made under this section and see that the deducted money is paid out as required.
    Subd. 4. Employees to provide information. An employee shall prepare and send to the
commissioner the information and forms the commissioner requires under this section.
History: 1943 c 1 s 1-4; 1973 c 492 s 14; 1984 c 628 art 2 s 1; art 6 s 1; 1984 c 654 art 2
s 58,59; 1986 c 444; 2003 s 112 art 2 s 26
16A.131 DEDUCTIONS FOR UNITED STATES SECURITIES, TRANSIT CARDS.
    Subdivision 1.[Repealed, 2003 c 112 art 1 s 19]
    Subd. 2. Transit cards. An employee may direct the commissioner, in writing, to deduct a
stated amount from the employee's pay to buy mass transit ridership cards. The commissioner
shall deposit the amount in the special account authorized by section 16B.58, subdivision 7.
History: 1951 c 678 s 1; 1980 c 614 s 56; 1984 c 544 s 89; 1984 c 628 art 2 s 1; art 6
s 1; 1984 c 654 art 2 s 60
16A.133 CREDIT UNION, PARKING, OTHER DEDUCTIONS.
    Subdivision 1. Payroll direct deposit and deductions. An agency head in the executive,
judicial, and legislative branch shall, upon written request signed by an employee, directly deposit
all or part of an employee's pay to those credit unions or financial institutions, as defined in
section 47.015, designated by the employee.
An agency head may, upon written request of an employee, deduct from the pay of the
employee a requested amount to be paid to the Minnesota Benefit Association, or to any
organization contemplated by section 179A.06, of which the employee is a member. If an
employee has more than one account with the Minnesota Benefit Association or more than
one organization under section 179A.06, only the Minnesota Benefit Association and one
organization, as defined under section 179A.06, may be paid money by payroll deduction from
the employee's pay.
    Subd. 2. Parking, and the like. With the written consent of an employee, an agency head
shall deduct from the employee's pay the amount needed to pay for services or facilities supplied
under law to the employee by the state. Food and housing, garage and parking facilities, and other
facilities and services may be paid for in this way.
    Subd. 3.[Repealed, 1989 c 335 art 1 s 270]
History: 1941 c 464 s 1; 1955 c 108 s 1; 1969 c 130 s 1; 1971 c 841 s 1,2; 1973 c 35 s 3;
1980 c 607 art 19 s 1; 1984 c 628 art 2 s 2; 1985 c 248 s 7; 1987 c 337 s 1; 1989 c 335 art 1 s 61;
1990 c 594 art 1 s 44; 1991 c 238 art 4 s 1; 2003 c 112 art 1 s 7
16A.134 CHARITABLE ORGANIZATIONS PAYROLL DEDUCTIONS.
An employee's contribution to a registered combined charitable organization defined in
section 43A.50 may be deducted from the employee's pay. On the employee's written request, the
commissioner shall deduct a requested amount from the pay of the employee for each pay period.
The commissioner shall issue a warrant in that amount to the specified organization.
History: 1965 c 766 s 1; 1973 c 492 s 14; 1984 c 628 art 2 s 3; 2007 c 101 s 1
16A.138 OFFICIALS NOT TO EXCEED APPROPRIATION.
When there has been an appropriation for any purpose it shall be unlawful for any state
board or official to incur indebtedness on behalf of the board, the official, or the state in excess
of the appropriation made for such purpose. It is hereby made unlawful for any state board or
official to incur any indebtedness in behalf of the board, the official, or the state of any nature
until after an appropriation therefor has been made by the legislature. Any official violating
these provisions shall be guilty of a misdemeanor and the governor is hereby authorized and
empowered to remove any such official from office.
History: (125) 1907 c 272 s 2; Ex1919 c 35 s 11
16A.139 MISAPPROPRIATION OF MONEY.
It is illegal for any official or head of any state department, or any employee thereof, to use
moneys appropriated by law, or fees collected for any other purpose than the purpose for which
the moneys have been appropriated, and any such act by any head of a department, or any state
official, is cause for immediate removal of the official or head of a state department from the
position held with the government of this state.
History: (125-14) 1937 c 457 s 36; 1979 c 333 s 60; 1986 c 444
16A.14 ALLOTMENT AND ENCUMBRANCE SYSTEM.
    Subdivision 1. Less than fiscal year. The commissioner may set an allotment period shorter
than and not extending beyond the fiscal year.
    Subd. 1a. Permanent improvements. Subdivision 1 does not apply for allotments of
appropriations for permanent improvements, including acquisition of real property.
    Subd. 2. Application. The allotment and encumbrance system applies to all appropriations
and funds except as provided in subdivisions 2a, 2b, and 2c.
    Subd. 2a. Exceptions. The allotment and encumbrance system does not apply to:
(1) appropriations for the courts or the legislature;
(2) payment of unemployment benefits.
    Subd. 2b. Impractical allotments. With permanent improvement contracts and transactions
for the acquisition of real estate, equipment, repair, rehabilitation, appurtenances or utility
systems to be used for public purposes, the commissioner may do away with periodic allotments
as impractical and make rules to ensure the proper application and encumbering of funds.
    Subd. 2c. Contingent funds. Contingent appropriations for the governor and the attorney
general are not subject to allotment. They are subject to the prescriptions in this chapter relating to
spending and encumbering of funds.
    Subd. 3. Spending plan. An appropriation to an agency may not be made available for
spending in the next allotment period until the agency has met all the requirements related to the
policies and procedures of the Minnesota accounting and procurement system. A spending plan
shall be submitted by July 31 to the commissioner on the commissioner's form. The spending
plan must certify that: the amount required for each activity is accurate and is consistent with
legislative intent; revenue estimates are reasonable; and the plan is structurally balanced, with all
legal restrictions on spending having been met for the purpose for which money is to be spent.
    Subd. 4. Approval. The commissioner shall approve the estimated amount for expenditure
if the spending plan is within the amount and purpose of the appropriation. In doing so, the
commissioner must keep in mind the probable needs of the agency for the rest of the term of the
appropriation, and whether there is a need for the appropriation in the next allotment period.
Otherwise the commissioner shall modify the spending plan and the allotment to conform with
the appropriation and the future needs of the agency. The commissioner shall act promptly on a
spending plan. The commissioner shall notify an agency of its allotments at least five days before
an allotment period. Allotments to an agency for an appropriation term may not exceed the
amount appropriated for that term.
    Subd. 5. Modification. After approval, the commissioner may modify a spending plan for
cause. An agency may apply for and must be notified of the modification. The modification may
not result in a deficit or an undue reduction of funds to meet future agency needs.
History: 1976 c 166 s 7; 1976 c 231 s 8; 1984 c 628 art 2 s 1; art 6 s 1; 1984 c 654 art 2 s
61; 1994 c 488 s 8; 1999 c 107 s 66; 2000 c 343 s 4; 2003 c 112 art 1 s 8
16A.15 ACCOUNTING SYSTEM; ALLOTMENT AND ENCUMBRANCE.
    Subdivision 1.[Renumbered 16A.152, subd 4]
    Subd. 2. Accounting system. The commissioner shall keep an accounting system in the
department's office showing by fund and item:
(1) the amounts appropriated for and the estimated revenue of the agency;
(2) the amount allotted and available for expenditure;
(3) the amount of expenditures or obligations authorized to be incurred;
(4) the actual receipts and disbursements;
(5) actual balances on hand; and
(6) the unencumbered balances after deduction of all actual and authorized expenditures.
    Subd. 3. Allotment and encumbrance. (a) A payment may not be made without prior
obligation. An obligation may not be incurred against any fund, allotment, or appropriation unless
the commissioner has certified a sufficient unencumbered balance or the accounting system shows
sufficient allotment or encumbrance balance in the fund, allotment, or appropriation to meet it.
The commissioner shall determine when the accounting system may be used to incur obligations
without the commissioner's certification of a sufficient unencumbered balance. An expenditure or
obligation authorized or incurred in violation of this chapter is invalid and ineligible for payment
until made valid. A payment made in violation of this chapter is illegal. An employee authorizing
or making the payment, or taking part in it, and a person receiving any part of the payment, are
jointly and severally liable to the state for the amount paid or received. If an employee knowingly
incurs an obligation or authorizes or makes an expenditure in violation of this chapter or takes
part in the violation, the violation is just cause for the employee's removal by the appointing
authority or by the governor if an appointing authority other than the governor fails to do so. In
the latter case, the governor shall give notice of the violation and an opportunity to be heard on
it to the employee and to the appointing authority. A claim presented against an appropriation
without prior allotment or encumbrance may be made valid on investigation, review, and approval
by the agency head in accordance with the commissioner's policy, if the services, materials,
or supplies to be paid for were actually furnished in good faith without collusion and without
intent to defraud. The commissioner may then draw a warrant to pay the claim just as properly
allotted and encumbered claims are paid.
(b) The commissioner may approve payment for materials and supplies in excess of the
obligation amount when increases are authorized by section 16C.03, subdivision 3.
(c) To minimize potential construction delay claims, an agency with a project funded by
a building appropriation may allow a contractor to proceed with supplemental work within the
limits of the appropriation before money is encumbered. Under this circumstance, the agency may
requisition funds and allow contractors to expeditiously proceed with a construction sequence.
While the contractor is proceeding, the agency shall immediately act to encumber the required
funds.
    Subd. 4. Periodic allotment. In the case of appropriations made for permanent
improvements, including acquisition of real property, which appropriations do not lapse until the
purposes of the appropriations are accomplished or abandoned, the commissioner may dispense
with periodic allotments and shall make rules to ensure the proper application and encumbrance
of funds.
    Subd. 5.[Renumbered 16A.152, subd 6]
    Subd. 6.[Renumbered 16A.152, subdivision 1]
    Subd. 7.[Renumbered 16A.152, subd 7]
History: 1973 c 492 s 23-26; 1976 c 231 s 10; 1978 c 793 s 47; 1981 c 1 s 2; 1Sp1981 c 5 s
1; 2Sp1981 c 1 s 3; 3Sp1981 c 1 art 1 s 1; 3Sp1981 c 2 art 2 s 3; 1983 c 342 art 18 s 1-3; 1984 c
502 art 1 s 1; 1984 c 544 s 89; 1984 c 628 art 2 s 1; 1Sp1985 c 14 art 18 s 1,2; 1Sp1986 c 1 art 5
s 1,2; 1987 c 268 art 18 s 1,2; 1988 c 719 art 13 s 1; 1Sp1989 c 1 art 15 s 1; 1991 c 291 art 21 s
2; 1992 c 511 art 9 s 1; 1992 c 514 s 1; 1993 c 192 s 58-60,111; 1993 c 375 art 17 s 1; 1994 c
632 art 3 s 27; 1997 c 202 art 2 s 19; 1998 c 386 art 2 s 12
16A.151 PROCEEDS OF LITIGATION OR SETTLEMENT.
    Subdivision 1. State funds; general fund. (a) This subdivision applies, notwithstanding
any law to the contrary, except as provided in subdivision 2.
(b) A state official may not commence, pursue, or settle litigation, or settle a matter that
could have resulted in litigation, in a manner that would result in money being distributed to a
person or entity other than the state.
(c) Money recovered by a state official in litigation or in settlement of a matter that could
have resulted in litigation is state money and must be deposited in the general fund.
    Subd. 2. Exceptions. (a) If a state official litigates or settles a matter on behalf of specific
injured persons or entities, this section does not prohibit distribution of money to the specific
injured persons or entities on whose behalf the litigation or settlement efforts were initiated. If
money recovered on behalf of injured persons or entities cannot reasonably be distributed to
those persons or entities because they cannot readily be located or identified or because the
cost of distributing the money would outweigh the benefit to the persons or entities, the money
must be paid into the general fund.
(b) Money recovered on behalf of a fund in the state treasury other than the general fund may
be deposited in that fund.
(c) This section does not prohibit a state official from distributing money to a person or
entity other than the state in litigation or potential litigation in which the state is a defendant or
potential defendant.
(d) State agencies may accept funds as directed by a federal court for any restitution or
monetary penalty under United States Code, title 18, section 3663(a)(3) or United States Code,
title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue account and
are appropriated to the commissioner of the agency for the purpose as directed by the federal court.
(e) Subdivision 1 does not apply to a recovery or settlement of less than $750,000.
    Subd. 3. Definitions. For purposes of this section:
(1) "litigation" includes civil, criminal, and administrative actions;
(2) "money recovered" includes actual damages, punitive or exemplary damages, statutory
damages, and civil and criminal penalties; and
(3) "state official" means the attorney general, another constitutional officer, an agency, or an
agency employee, acting in official capacity.
    Subd. 4. Supersede. This section supersedes section 8.31, subdivision 2c.
    Subd. 5.[Repealed, 2005 c 156 art 2 s 52]
History: 1Sp2001 c 10 art 2 s 23; 2002 c 379 art 1 s 7,8; 1Sp2003 c 1 art 2 s 34; 1Sp2003 c
2 art 8 s 1; 2005 c 156 art 2 s 15
16A.152 BUDGET RESERVE AND CASH FLOW ACCOUNTS.
    Subdivision 1. Cash flow account established. A cash flow account is created in the
general fund in the state treasury. Amounts in the cash flow account shall remain in the account
until drawn down and used to meet cash flow deficiencies resulting from uneven distribution of
revenue collections and required expenditures during a fiscal year.
    Subd. 1a. Budget reserve. A budget reserve account is created in the general fund in the
state treasury. The commissioner of finance shall transfer to the budget reserve account on July 1
of each odd-numbered year any amounts specifically appropriated by law to the budget reserve.
    Subd. 1b. Budget reserve increase. On July 1, 2003, the commissioner of finance shall
transfer $300,000,000 to the budget reserve account in the general fund. On July 1, 2004, the
commissioner of finance shall transfer $296,000,000 to the budget reserve account in the general
fund. The amounts necessary for this purpose are appropriated from the general fund.
    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of finance determines that there will be a positive
unrestricted budgetary general fund balance at the close of the biennium, the commissioner of
finance must allocate money to the following accounts and purposes in priority order:
    (1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;
    (2) the budget reserve account established in subdivision 1a until that account reaches
$653,000,000;
    (3) the amount necessary to increase the aid payment schedule for school district aids and
credits payments in section 127A.45 to not more than 90 percent rounded to the nearest tenth
of a percent without exceeding the amount available and with any remaining funds deposited
in the budget reserve; and
    (4) the amount necessary to restore all or a portion of the net aid reductions under section
127A.441 and to reduce the property tax revenue recognition shift under section 123B.75,
subdivision 5
, paragraph (b), and Laws 2003, First Special Session chapter 9, article 5, section 34,
as amended by Laws 2003, First Special Session chapter 23, section 20, by the same amount.
    (b) The amounts necessary to meet the requirements of this section are appropriated from
the general fund within two weeks after the forecast is released or, in the case of transfers under
paragraph (a), clauses (3) and (4), as necessary to meet the appropriations schedules otherwise
established in statute.
    (c) To the extent that a positive unrestricted budgetary general fund balance is projected,
appropriations under this section must be made before section 16A.1522 takes effect.
    (d) The commissioner of finance shall certify the total dollar amount of the reductions
under paragraph (a), clauses (3) and (4), to the commissioner of education. The commissioner of
education shall increase the aid payment percentage and reduce the property tax shift percentage
by these amounts and apply those reductions to the current fiscal year and thereafter.
    Subd. 3. Use. The use of the budget reserve should be governed by principles based on
the full economic cycle rather than the budget cycle. The budget reserve may be used when a
negative budgetary balance is projected and when objective measures, such as reduced growth in
total wages, retail sales, or employment, reflect downturns in the state's economy.
    Subd. 4. Reduction. (a) If the commissioner determines that probable receipts for the
general fund will be less than anticipated, and that the amount available for the remainder of the
biennium will be less than needed, the commissioner shall, with the approval of the governor, and
after consulting the Legislative Advisory Commission, reduce the amount in the budget reserve
account as needed to balance expenditures with revenue.
(b) An additional deficit shall, with the approval of the governor, and after consulting the
legislative advisory commission, be made up by reducing unexpended allotments of any prior
appropriation or transfer. Notwithstanding any other law to the contrary, the commissioner
is empowered to defer or suspend prior statutorily created obligations which would prevent
effecting such reductions.
(c) If the commissioner determines that probable receipts for any other fund, appropriation,
or item will be less than anticipated, and that the amount available for the remainder of the term
of the appropriation or for any allotment period will be less than needed, the commissioner
shall notify the agency concerned and then reduce the amount allotted or to be allotted so as
to prevent a deficit.
(d) In reducing allotments, the commissioner may consider other sources of revenue
available to recipients of state appropriations and may apply allotment reductions based on all
sources of revenue available.
(e) In like manner, the commissioner shall reduce allotments to an agency by the amount
of any saving that can be made over previous spending plans through a reduction in prices or
other cause.
    Subd. 5. Restoration. The restoration of the budget reserve should be governed by principles
based on the full economic cycle rather than the budget cycle. Restoration of the budget reserve
should occur when objective measures, such as increased growth in total wages, retail sales, or
employment, reflect upturns in the state's economy. The budget reserve should be restored before
new or increased spending commitments are made.
    Subd. 6. Notice to committees. The commissioner shall notify the committees on finance
and taxes and tax laws of the senate and the committees on ways and means and taxes of the house
of representatives of a reduction in an allotment under this section. The notice must be in writing
and delivered within 15 days of the commissioner's act. The notice must specify:
(1) the amount of the reduction in the allotment;
(2) the agency and programs affected;
(3) the amount of any payment withheld; and
(4) any additional information the commissioner determines is appropriate.
    Subd. 7. Delay; reduction. The commissioner may delay paying up to 15 percent of an
appropriation to a special taxing district or a system of higher education in that entity's fiscal year
for up to 60 days after the start of its next fiscal year. The delayed amount is subject to allotment
reduction under subdivision 4.
History: 1973 c 492 s 23; 1978 c 793 s 47; 1981 c 1 s 2; 1Sp1981 c 5 s 1; 2Sp1981 c 1 s 3;
3Sp1981 c 1 art 1 s 1; 3Sp1981 c 2 art 2 s 3; 1983 c 342 art 18 s 1-3; 1984 c 502 art 1 s 1; 1984 c
628 art 2 s 1; 1Sp1985 c 14 art 18 s 1,2,4; 1Sp1986 c 1 art 5 s 1-3; 1987 c 268 art 18 s 1-3; 1988
c 690 art 2 s 1; 1988 c 719 art 13 s 1,2; 1989 c 329 art 1 s 1; 1Sp1989 c 1 art 15 s 1,2; 1990 c 604
art 10 s 4; 1991 c 291 art 21 s 2; 1992 c 511 art 9 s 1; 1993 c 192 s 58-63,111; 1993 c 375 art 17
s 1,2; 1994 c 632 art 5 s 1; 1994 c 647 art 1 s 1; 1995 c 264 art 6 s 1; 1Sp1995 c 3 art 14 s 1-3;
1996 c 461 s 1; 1996 c 471 art 10 s 1; 1997 c 231 art 9 s 1; 1998 c 389 art 9 s 1; 1Sp2001 c 5 art
20 s 2,3; 1Sp2001 c 10 art 2 s 24; 2002 c 220 art 13 s 3-5; 2002 c 377 art 12 s 1; 1Sp2003 c 21
art 11 s 2-4; 2004 c 272 art 3 s 1; 2005 c 156 art 2 s 16; 2007 c 146 art 1 s 1
16A.1521 [Repealed, 1Sp2001 c 5 art 20 s 24]
16A.1522 REBATE REQUIREMENTS.
    Subdivision 1. Forecast. If, on the basis of a forecast of general fund revenues and
expenditures in November of an even-numbered year or February of an odd-numbered year, the
commissioner projects a positive unrestricted budgetary general fund balance at the close of
the biennium that exceeds one-half of one percent of total general fund biennial revenues, the
commissioner shall designate the entire balance as available for rebate to the taxpayers of this
state.
    Subd. 2. Plan. If the commissioner designates an amount for rebate in either forecast, the
governor shall present a plan to the legislature for rebating that amount. The plan must provide
for payments to begin no later than August 15 of the odd-numbered year. By April 15 of each
odd-numbered year, the legislature shall enact, modify, or reject the plan presented by the
governor.
    Subd. 3. Certification. By July 15 of each odd-numbered year, based on a preliminary
analysis of the general fund balance at the end of the fiscal year June 30, the commissioner of
finance shall certify to the commissioner of revenue the amount available for rebate.
    Subd. 4. Transfer to tax relief account. Any positive unrestricted budgetary general fund
balance on June 30 of an odd-numbered year is appropriated to the commissioner for transfer to
the tax relief account.
    Subd. 5. Appropriation. A sum sufficient to pay any rebate due under the plan enacted
under subdivision 2 is appropriated from the general fund to the commissioner of revenue.
History: 1999 c 243 art 15 s 1; 2005 c 156 art 2 s 17
16A.1523 [Repealed, 2002 c 220 art 13 s 11]
16A.153 [Repealed, 1983 c 342 art 18 s 4]
16A.154 [Repealed, 1Sp1986 c 1 art 5 s 12]
16A.1541 [Renumbered 16A.152, subd 2]
16A.155 REFUNDS; CHARGED WHEN PAID.
Notwithstanding sections 16A.14 and 16A.15, or any other law to the contrary, the payment
of a refund shall be charged to the fund, appropriation, allotment or encumbrance for the period
in which the refund is paid.
History: 1976 c 231 s 11; 1984 c 628 art 2 s 1
16A.16 [Repealed, 1983 c 299 s 36]
16A.17 PREPARATION OF STATE PAYROLL.
    Subdivision 1. Salaries; when paid. The commissioner, with the approval of the governor,
may choose to pay salaried employees semimonthly or biweekly.
    Subd. 2.[Repealed, 1976 c 231 s 34]
    Subd. 3. Equal payments. The commissioner may adjust the salary of an employee to
provide equal payments through the year and to make use of modern accounting in preparing
the payroll. Adjusted salaries must be based on a year of 2088 working hours. Fractions may be
dropped or added in order to permit equal payments even if the salary is then slightly changed.
    Subd. 4. Allocations. The commissioner shall set procedures for allocating and encumbering
equal salary payments when a payroll period extends beyond the end of the fiscal year.
    Subd. 4a. Application. Subdivision 4 applies to salaries of state officers and employees
payable in equal payments throughout the year notwithstanding any other provision in Minnesota
Statutes. No provision of any subsequent law relating to the budget, allotment, and encumbrance
system or to appropriations for the payment of salaries of state officers and employees shall be
construed as inconsistent with this subdivision except as expressly provided in the subsequent act
that subdivision 4 does not apply or is superseded, modified, amended, or repealed.
    Subd. 5. Payroll duties. When the department prepares the payroll for an agency, the
commissioner assumes the agency head's duties to make authorized or required deductions from,
or employer contributions on, the pay of the agency's employees and to prepare and issue the
necessary warrants.
    Subd. 5a. Voluntary deductions. The commissioner may require an employee making a
voluntary deduction and the recipient of the deduction to provide information on the amount
of or a change in the amount of the deduction. The employee making a voluntary deduction
must sign and send the deduction instructions to the intended recipient of the deduction. The
intended recipient shall forward the original signed instruction and other required information
to the employee's payroll preparer.
    Subd. 6. Branch payrolls. The commissioner shall prepare the payroll for the executive
branch. Upon request of the Rules Committee of the senate or house of representatives or the
Supreme Court, as appropriate, the commissioner shall prepare the payrolls of the legislative and
judicial branches in a similar way.
    Subd. 7. Certify hours. The commissioner may authorize an official to certify the hours
worked for payroll purposes in anticipation of the hours actually worked.
    Subd. 8.MS 1974 [Repealed, 1975 c 273 s 3]
    Subd. 8. Exceptions. The commissioner shall prescribe procedures to assure payment is
made only for hours worked except:
(1) for leave under a collective bargaining agreement;
(2) for leave under a plan according to section 43A.18 or the rules of the Department
of Employee Relations; or
(3) to resolve a formal employee grievance permitted by law or collective bargaining
agreement.
    Subd. 8a. Overpayment. The head of an agency shall release to the commissioner money
held for an employee when the commissioner certifies to the head that the money is required to
correct an overpayment to an employee. An employee's contribution to a retirement fund may
not be released until the person otherwise entitled to the employee's retirement account has been
notified of the release certification and is eligible to apply for a refund. Released funds are the
equivalent of a refund. Funds may not be released if the employee or a survivor is entitled to an
immediate or deferred annuity or to a survivor's benefit.
    Subd. 9. Agencies share. If a direct appropriation for payroll preparation is made, the
commissioner shall bill an agency for its share of payroll costs. The billing shall be done through
the indirect cost billing system. Money collected must be deposited in the general fund.
    Subd. 10. Direct deposit. Notwithstanding section 177.23, the commissioner may require
direct deposit for all state employees who are being paid by the state payroll system.
History: 1957 c 414 s 1; 1961 c 222 s 1,2; 1969 c 281 s 1; 1971 c 803 s 1,2; Ex1971 c 32 s
19; 1973 c 435 s 1; 1973 c 492 s 14; 1976 c 231 s 12-17; 1977 c 340 s 1; 1977 c 410 s 6; 1980 c
617 s 47; 1981 c 210 s 49; 1984 c 628 art 2 s 1; 2003 c 112 art 1 s 9; 1Sp2003 c 1 art 2 s 35
16A.18 ACCOUNTING, PAYROLL FOR COURTS, LEGISLATURE.
The judicial and legislative branches are not required to use the state accounting system
or a computerized payroll system.
History: 1973 c 720 s 74; 1984 c 628 art 2 s 1
16A.19 RETIREMENT, SOCIAL SECURITY DEFICIENCIES.
    Subdivision 1. Procedure. If a direct appropriation for retirement contributions, benefits, or
administrative expenses, or for Social Security contributions under section 355.46, is determined
by the chief administrative official of the agency to which or by the officer to whom the
appropriation was made to be insufficient to meet the state's obligation under the program for
which it is made for the fiscal year for which it is made, the official or the officer shall certify to
the finance committee, the appropriations committee, and the commissioner the amount necessary
to meet the deficiency. Upon this certification, the commissioner shall transfer the necessary
amounts to the appropriate accounts.
    Subd. 2. Appropriation. The amount necessary to make the transfer under subdivision 1 is
appropriated from the general fund in the state treasury to the agency to which or to the officer to
whom the transfer is made.
History: 1980 c 614 s 57; 1981 c 224 s 17; 1984 c 628 art 2 s 1
16A.25 SALE OF SECURITIES BEFORE MATURITY.
The commissioner shall notify the Board of Investment if invested funds are needed for
current purposes before maturity of the securities held. The Board of Investment shall then order
the needed amount of securities sold or cashed.
History: 1973 c 492 s 10; 1984 c 628 art 2 s 1
16A.26 ONE DEPOSITORY ACCOUNT FOR EACH TAX.
Notwithstanding sections 297F.10, 297G.10, 298.17, 298.282, 298.39, and 298.396, and
similar laws to the contrary relating to the depositing, disposition, or apportionment of tax
receipts, the commissioner may use one depository account for each tax. To do so, there must be
enough information to identify and dispose of or apportion the tax under law. The commissioner
shall ask the appropriate officials for the transfers and necessary certifications. The commissioner
may issue directives to carry out this section.
History: 1973 c 492 s 14; 1973 c 720 s 65; 1978 c 674 s 6; 1980 c 509 s 4; 1984 c 628 art
2 s 1; 1985 c 305 art 12 s 5; 1Sp1985 c 16 art 2 s 26; 1987 c 268 art 9 s 1; 1989 c 209 art 2 s
4; 1997 c 106 art 2 s 1; 1997 c 179 art 2 s 1
16A.27 STATE FUNDS; DEPOSIT; CONTROL BY COMMISSIONER.
    Subdivision 1. Commissioner to comply. The commissioner shall, in the public interest,
control the amount and manner of deposit of state funds in depositories by the commissioner. The
commissioner shall comply with the controls.
    Subd. 2. Daily report. By 9:00 a.m. every business day, a depository holding a total of over
$100,000 in non-interest-bearing state deposits shall report the balances as of the close of the last
business day to the commissioner. The commissioner shall record the balances and send a copy
of them to the Legislative Reference Library.
    Subd. 3. Competitive bids. The depository for a state account must be selected by
competitive bid. The commissioner shall invite bids by written notice to designated depositories.
The notice must specify the considerations, financial activities, and conditions the commissioner
requires for the bid. The account must be awarded to the lowest bidding depository that can, in the
opinion of the commissioner, meet the requirements.
    Subd. 4. Exceptions. In exceptional cases, the commissioner may dispense with bidding. The
commissioner shall report the circumstances and reasons to the Legislative Audit Commission
within five days after opening the account.
    Subd. 5. Charges, compensating balances. The commissioner may pay a depository a
reasonable charge from appropriated money, maintain appropriate compensating balances with
the depository, or purchase non-interest-bearing certificates of deposit from the depository for
performing depository related services.
History: 1973 c 492 s 8; 1977 c 403 s 2; 1984 c 628 art 2 s 1; 1989 c 271 s 2; 1991 c 345 art
1 s 52; 1999 c 99 s 8; 2003 c 112 art 2 s 3,50
16A.271 DEPOSITORIES, DESIGNATION.
Where any statute of this state requires or permits a bank or trust company to deposit
securities with the commissioner of finance, the latter, on the request of such depositor, may
designate some other bank or trust company as the depository of such securities under such
depository agreement as may be prescribed and approved by the depositor, and which will not
deprive the commissioner of finance of the control thereof and the charges of such depository
shall be paid by the depositing bank or trust company. If such depositing bank or trust company
is a member of the Federal Reserve System, the Federal Reserve Bank in this state may be the
depository designated by the commissioner of finance.
History: 1933 c 287 s 1; 1986 c 444; 2003 c 112 art 2 s 50
16A.272 DEPOSITS OF CERTAIN FUNDS OF PUBLIC CORPORATIONS, SECURITY.
    Subdivision 1. Depository to give bond. If designated treasurer of any public corporation by
any statute of this state, the commissioner of finance may deposit any public corporation funds
in any bank or trust company in this state designated by the commissioner of finance unless
otherwise provided in the statutes relating to such public corporation. Such deposits shall be
deemed deposits of public funds, and said treasurer may require any bank or trust company in
which such funds are deposited to give a corporate surety bond for the repayment of such funds
or to deposit collateral securities to secure such deposits. Collateral securities so pledged shall
consist of bonds and similar securities which are eligible as collateral security for deposits of state
funds deposited in depositories designated by the Executive Council of this state. Such bond or
collateral shall be in such amount as shall be fixed by the commissioner of finance.
    Subd. 2. Commissioner of finance relieved from liability. The commissioner of finance
shall not be liable for the safekeeping of money deposited by the commissioner of finance which
are secured by a corporate surety bond or a pledge of collateral securities as herein provided.
    Subd. 3. Section 7.19 to apply. The provisions of Minnesota Statutes 1941, section 7.19,
shall apply to deposits of securities made pursuant to this section.
History: 1945 c 298 s 1-3; 1986 c 444; 2003 c 112 art 2 s 50
16A.273 INDUCEMENTS TO MAKE DEPOSITS.
Every person who shall give or promise to the commissioner of finance, or to any other
person having the custody or control of state funds, any credit, service, or benefit, except as
expressly authorized by law, as an inducement or consideration to or for the deposit, loan, or
forbearance of state funds, shall be guilty of bribery or attempted bribery, as the case may be.
History: RL s 55; 2003 c 112 art 2 s 50
16A.275 AGENCY RECEIPTS; DEPOSIT, REPORT, CREDIT.
    Subdivision 1. If $250, daily. Except as otherwise provided by law, an agency shall deposit
receipts totaling $250 or more in the state treasury daily. The depositing agency shall send a
report to the commissioner on the disposition of receipts since the last report. The commissioner
shall credit the deposits received during a month to the proper funds not later than the first day of
the next month.
Notwithstanding the general rule stated above, the commissioner of revenue is not required
to make daily deposits if (1) the volume of tax receipts cannot be processed daily with available
resources, or (2) receipts cannot be immediately identified for posting to accounts.
    Subd. 2. Exception. The commissioner may authorize an agency to deposit receipts
totaling $250 or more less frequently than daily for those locations where the agency furnishes
documentation to the commissioner that the cost of making daily deposits exceeds the lost interest
earnings and the risk of loss or theft of the receipts.
History: 1976 c 231 s 18; 2Sp1981 c 1 s 4; 1984 c 628 art 2 s 1; 1Sp1985 c 13 s 103;
1987 c 268 art 18 s 4; 1987 c 275 s 5
16A.276 CASH OVERAGE AND SHORTAGE ACCOUNT.
The commissioner may keep accounts to record daily the difference between actual and
recorded cash receipts including losses from forged and uncollectible checks. At the end of the
fiscal year, the commissioner shall clear the accounts by transferring the balances to the general
fund and paying the deficits from operating accounts of the agencies charged with the deficit.
History: 1978 c 793 s 48; 1984 c 628 art 2 s 1; 1997 c 7 art 2 s 5
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
16A.281 APPROPRIATIONS TO LEGISLATURE.
Except as provided in this section, section 16A.28 applies to appropriations made to the
legislature, the senate, the house of representatives, or its committees or commissions. An
appropriation made to the legislature, the senate, the house of representatives, or a legislative
commission or committee other than a standing committee, if not spent during the first year, may
be spent during the second year of a biennium. An unexpended balance not carried forward and
remaining unexpended and unencumbered at the end of a biennium lapses and shall be returned
to the fund from which appropriated. Balances may be carried forward into the next biennium
and credited to special accounts to be used only as follows: (1) for nonrecurring expenditures on
investments that enhance efficiency or improve effectiveness; (2) to pay expenses associated with
sessions, interim activities, public hearings, or other public outreach efforts and related activities;
and (3) to pay severance costs of involuntary terminations. The approval of the commissioner of
finance under section 16A.28, subdivision 2, does not apply to the legislature. An appropriation
made to the legislature, the senate, the house of representatives, or a standing committee for all or
part of a biennium may be spent in either year of the biennium.
History: 1978 c 793 s 49; 1984 c 628 art 2 s 1; 1993 c 192 s 65; 2005 c 156 art 2 s 18
16A.283 APPROPRIATIONS TO COURTS.
If an appropriation for the courts or for an agency in the judicial branch for either fiscal
year of a biennium is insufficient, the appropriation for the other fiscal year of the biennium is
available for it.
History: 1Sp1985 c 13 s 104
16A.284 APPROPRIATIONS TO CONSTITUTIONAL OFFICERS.
If an appropriation for a constitutional officer for either fiscal year of a biennium is
insufficient, the appropriation for the other fiscal year of the biennium is available for it.
History: 1987 c 404 s 77
16A.285 ALLOWED APPROPRIATION TRANSFERS.
An agency in the executive, legislative, or judicial branch may transfer state agency
operational money between programs within the same fund if: (1) the agency first notifies the
commissioner as to the type and intent of the transfer; and (2) the transfer is consistent with
legislative intent. If an amount is specified for an item within an activity, that amount must not
be transferred or used for any other purpose.
The commissioner shall report the transfers to the chairs of the senate finance and house of
representatives ways and means committees.
History: 1993 c 192 s 66; 1995 c 226 art 1 s 18
16A.30 [Repealed, 2005 c 156 art 2 s 52]
16A.35 [Repealed, 1993 c 192 s 110]
16A.36 GRANTS FROM AND ADVANCES TO UNITED STATES.
    Subdivision 1. Use of grants. Money received by the state from the federal government as
federal assistance must be used only for the purpose for which the money is received. If required
by the proper federal authorities, interest or income arising from the money received may be
credited by the commissioner to the particular account for which the money is received and used
only for the purpose of that federal assistance program, or may be repaid to the federal treasury. If
not so required, the interest or income shall be credited to the general fund or to another fund
authorized to receive the interest or income.
    Subd. 2. Reciprocal interest policy. The commissioner may, if required by the federal
government or by agreement with the proper federal authorities, establish an equitable policy
providing for the state to pay interest on undisbursed federal money, and providing for the
federal government to pay interest to the state on state funds advanced for a federal assistance
program. The amount needed to pay the interest is appropriated from the general fund or another
fund earning the interest on undisbursed federal money. The interest received from the federal
government shall be deposited in the fund that lost interest on state funds advanced for a federal
assistance program.
History: (53-18a) 1937 c 25 s 1; 1955 c 863 s 14; 1973 c 717 s 8; 1983 c 301 s 92; 1984 c
628 art 2 s 1; art 6 s 1; 1984 c 654 art 2 s 63; 1987 c 275 s 6
16A.40 WARRANTS AND ELECTRONIC FUND TRANSFERS.
Money must not be paid out of the state treasury except upon the warrant of the commissioner
or an electronic fund transfer approved by the commissioner. Warrants must be drawn on printed
blanks that are in numerical order. The commissioner shall enter, in numerical order in a warrant
register, the number, amount, date, and payee for every warrant issued.
The commissioner may require payees to supply their bank routing information to enable
the payments to be made through an electronic fund transfer.
History: (67) RL s 35; 1917 c 480 s 1; 1955 c 863 s 3; 1984 c 628 art 2 s 1; 1Sp1985 c 13 s
105; 1995 c 254 art 1 s 50; 2002 c 220 art 10 s 29; 2003 c 112 art 1 s 10; 1Sp2003 c 1 art 2 s 36
16A.41 CLAIMS AGAINST STATE.
    Subdivision 1. Certified. Except as provided in subdivision 1a, when claims against the
state are made for which there is an appropriation available, an official with authority to pay a
claim shall approve the claim by certifying that the service was performed, the goods or material
furnished, or monthly telephone service is in effect. The claim must be sent to the commissioner
accompanied by a transmittal form as prescribed by the commissioner.
    Subd. 1a. Exception to certification. When a claim against the state is made by a county,
municipality, or other governmental subdivision, under an agreement with the commissioner of
transportation, and that agreement provides for payment of the state's contractual obligations
before commencing the work, certification that the services have been performed or that the goods
or materials have been furnished is not required as a prerequisite to payment of the claim.
    Subd. 2. Declaration. The commissioner may require a claimant to declare that the claim
and its amount are just and correct and that no part of it has been paid. The following form
may be used:
"I declare under the penalties of perjury that this claim is just and correct and that no part
of it has been paid.
Signature of Claimant."
    Subd. 3. Declaration same as oath. To sign the declaration in subdivision 2 is the same as to
sign and swear under oath.
History: (68) 1905 c 96 s 1; 1909 c 120 s 1; 1917 c 480 s 2; 1955 c 863 s 4; 1957 c 93 s 1;
1973 c 492 s 14; 1984 c 416 s 1,2; 1984 c 628 art 2 s 1; art 6 s 1; 1988 c 613 s 2
16A.42 CLAIMS: FORM, APPROVAL, REGISTER.
    Subdivision 1. Form. The commissioner shall prescribe the form of a claim.
    Subd. 2. Approval. If the claim is approved, the commissioner shall complete and sign a
warrant in the amount of the claim.
    Subd. 3.[Repealed, 1Sp1985 c 13 s 376]
    Subd. 4. Register. The commissioner shall enter a warrant in the warrant register as if it
were a cash payment.
History: (69) 1905 c 96 s 1; 1909 c 120 s 2; 1909 c 169 s 1; 1917 c 480 s 3; 1955 c 863 s
5; 1973 c 492 s 14; 1984 c 628 art 2 s 1; 1Sp1985 c 13 s 106
16A.43 WARRANT A RECEIPT.
The endorsement by the payee of a warrant is a receipt in full for the claim paid by the
warrant.
History: (70) 1905 c 96 s 2; 1909 c 120 s 3; 1917 c 480 s 4; 1955 c 863 s 6; 1984 c 628 art
2 s 1
16A.44 COMMISSIONER MAY COMPEL TESTIMONY.
The commissioner may subpoena, administer oaths to, and examine under oath, the parties
and witnesses to any transaction between the state and a person, partnership, or corporation.
History: (72) 1917 c 498 s 2; 1955 c 863 s 7; 1973 c 492 s 14; 1984 c 628 art 2 s 1
16A.45 OUTSTANDING UNPAID WARRANTS, CANCELLATION.
    Subdivision 1. Cancel; credit. Once each fiscal year the commissioner shall cancel upon the
books all outstanding unpaid commissioner's warrants that have been issued and delivered on or
before June 30 of the preceding year and credit state amounts subject to section 345.43 and federal
amounts to the appropriate account in the federal fund. These warrants are presumed abandoned
under section 345.38 and are subject to sections 345.31 to 345.60.
    Subd. 2.[Repealed, 1993 c 192 s 110]
    Subd. 3.[Repealed, 1993 c 192 s 110]
    Subd. 4. Locating unpaid warrants. A person may not seek or receive from another
person, or contract with a person for, a fee or compensation for locating outstanding unpaid
commissioner's warrants before the warrants have been reported to the commissioner of
commerce under section 345.41.
History: (73) 1923 c 288 s 1,2; 1955 c 863 s 8; 1969 c 399 s 1; 1973 c 492 s 14; 1984 c 628
art 2 s 1; art 6 s 1; 1984 c 654 art 2 s 64; 1Sp1985 c 13 s 107; 1991 c 345 art 1 s 53; 1992 c
513 art 4 s 28,29; 1999 c 250 art 1 s 51; 2003 c 112 art 2 s 50
16A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
The commissioner may issue a duplicate of an unpaid warrant to an owner if the owner
certifies that the original was lost or destroyed. The commissioner may require certification be
documented by affidavit. When the duplicate is issued, the original is void. The commissioner
may require an indemnity bond from the applicant to the state for double the amount of the
warrant for anyone damaged by the issuance of the duplicate. The commissioner may refuse
to issue a duplicate of an unpaid state warrant. If the commissioner acts in good faith the
commissioner is not liable, whether the application is granted or denied. For an unpaid refund or
rebate issued under a tax law administered by the commissioner of revenue that has been lost or
destroyed, an affidavit is not required for the commissioner to issue a duplicate if the duplicate is
issued to the same name and Social Security number as the original warrant and that information
is verified on a tax return filed by the recipient.
History: (74) RL s 36; 1955 c 863 s 9; 1973 c 492 s 14; 1984 c 628 art 2 s 1; 2000 c 490 art
13 s 2; 2003 c 112 art 1 s 11
16A.461 DUPLICATE BONDS ISSUED.
When any bond, certificate of indebtedness, or other written obligation of the state, issued by
the state or by any department, bureau, board, or other agency of the state government according
to law, has been lost, destroyed, or stolen, a duplicate of such obligation, with unpaid interest
coupons, if any, which were attached at the time of the loss, destruction, or theft, shall be issued
to the owner, the owner's guardian, or the representative of the owner's estate, as hereinafter
provided, upon the furnishing of satisfactory proof of ownership and of such loss, destruction, or
theft to the authority empowered to approve indemnity bonds, as hereinafter provided, and upon
the certification of the approval of such proof by such authority to the commissioner of finance.
History: 1929 c 192 s 1; 1986 c 444; 2003 c 112 art 2 s 50
16A.462 EXECUTION OF DUPLICATES.
Such duplicate obligation shall be prepared by the commissioner of finance and shall be an
exact and complete copy of the original, including the signatures, but need not be a facsimile.
Each duplicate obligation shall have written or printed thereon a certificate, the form of which
shall be approved by the attorney general, stating, in substance, that the obligation is a duplicate
issued pursuant to sections 16A.461 to 16A.464 with like force and effect as the original. The
certificate shall be signed by the commissioner of finance, attested by the secretary of state,
and sealed with the great seal of the state, and bear the approval of the attorney general as to
the issuance of the duplicate and the form of the certificate. Each duplicate shall have plainly
written or printed thereon across the face or upon the margin the word "duplicate." Each coupon
attached to the duplicate obligation shall have plainly written or printed thereon in like manner the
word "duplicate," followed by the date of issue and the signature or facsimile signature of the
commissioner of finance.
History: 1929 c 192 s 2; 2003 c 112 art 2 s 50
16A.463 DELIVERY OF DUPLICATES; BOND.
Such duplicate obligation when executed shall be delivered by the commissioner of finance
to the owner of the original obligation, the owner's guardian, or the representative of the owner's
estate; provided, such owner, guardian, or representative shall first file with the commissioner a
bond in the full amount of such obligation and unpaid interest to maturity, with sufficient sureties,
approved by the same authority as state depository bonds, indemnifying the state against any loss
thereon by reason of the existence of the original obligation or any coupon thereto attached,
unless such bond is waived as hereinafter provided; and, provided, such owner, guardian, or
representative shall furnish satisfactory proof to the commissioner that such original obligation
and coupons have not been found or presented for payment up to the time of such delivery; and, if
any thereof have been found or presented, duplicates shall be delivered only of such as have not
been found or presented. A record of the issuance and delivery of each duplicate obligation and
attached coupons shall be made by the commissioner. Such duplicate obligations and coupons,
when issued and delivered as hereinbefore provided shall have the same force and effect as the
originals.
History: 1929 c 192 s 3; 1973 c 492 s 14; 1986 c 444; 2003 c 112 art 2 s 2,50
16A.464 BOND, WHEN CANCELED.
The authority empowered to approve the indemnity bond required by section 16A.463 may
waive such bond, in its discretion, at any time six years after the date of the maturity of such lost,
destroyed, or stolen bond, certificate of indebtedness, or other written obligation of the state, in
any special case where it deems that the person entitled to a duplicate is unable to furnish such
indemnity bond without hardship and that it is improbable that the original obligation will ever be
found or presented for payment. Such waiver shall be certified to the commissioner of finance.
History: 1929 c 192 s 4; 2003 c 112 art 2 s 50
16A.47 COMMISSIONER'S ACCOUNT, DOCUMENT DUTIES.
The commissioner shall make and keep in the department's office a record of all accounts and
documents required by law to be returned to or filed with the commissioner. The commissioner
shall file and keep all official receipts and vouchers. The commissioner shall also keep an account
for each appropriation, showing the disbursements. The commissioner shall keep other accounts
needed to show the daily condition of state finances.
History: (75) RL s 37; 1955 c 863 s 10; 1973 c 492 s 14; 1984 c 628 art 2 s 1; 1Sp1985
c 13 s 108
16A.48 REFUND OF ERRONEOUS DEPOSITS.
    Subdivision 1. Procedure. A verified claim may be submitted to the concerned agency
head for refund of money in the treasury to which the state is not entitled. The claimant must
submit with the claim a complete statement of facts and reasons for the refund. The agency head
shall consider and approve or disapprove the claim, attach a statement of reasons, and forward
the claim to the commissioner for settlement.
    Subd. 2. Appropriation. The amount needed to pay a refund under subdivision 1 is
appropriated to the person entitled to it from the fund to which the money was credited.
History: 1947 c 416 s 1,2; 1955 c 863 s 11; 1973 c 492 s 14; 1984 c 628 art 2 s 1; 1987 c
268 art 19 s 1; 1992 c 513 art 4 s 30
16A.49 REFUNDS OF $1 OR LESS.
A refund of $1 or less may not be paid from the treasury unless the receipts giving rise to the
refund were $1 or less. The commissioner shall set requirements for the small refunds, which may
differ from the procedure in section 16A.48.
History: Ex1967 c 48 s 69; 1973 c 492 s 4 subd 3; 1984 c 628 art 2 s 1
16A.50 FINANCIAL REPORT TO LEGISLATURE.
By December 31 of each year, the commissioner shall report to the legislature on the
operation of all state funds during the last fiscal year. The report shall contain financial statements
and disclosures which show the state's financial operations and position. The report must conform
with generally accepted government accounting principles.
History: (79) RL s 40; 1955 c 847 s 1; 1955 c 863 s 12; 1959 c 51 s 1; 1973 c 492 s 14;
1974 c 406 s 56; 1979 c 314 s 2; 1983 c 301 s 93; 1984 c 628 art 2 s 1
16A.501 REPORT ON EXPENDITURE OF BOND PROCEEDS.
The commissioner of finance must report annually to the legislature on the degree to which
entities receiving appropriations for capital projects in previous omnibus capital improvement
acts have encumbered or expended that money. The report must be submitted to the chairs of
the house of representatives Ways and Means Committee and the senate Finance Committee
by January 1 of each year.
History: 1994 c 643 s 33; 1998 c 404 s 31; 2002 c 393 s 33; 2003 c 112 art 1 s 12; 1Sp2003
c 1 art 2 s 37
16A.502 NONSTATE COMMITMENTS TO CAPITAL PROJECTS.
If a state appropriation or grant for a capital project or project phase is not sufficient, by itself,
to complete the project or project phase, and thus requires a commitment from other sources:
(1) the commitment, including any required match, must be in an amount that, when added
to the appropriation or grant, is sufficient to complete the project or project phase; and
(2) the appropriation or grant is not available until the commissioner has determined that the
commitment is sufficient.
In making the determination, the commissioner must apply generally accepted governmental
accounting standards and principles, including those that are particularly applicable to capital
projects.
History: 2005 c 20 art 1 s 29
16A.51 [Repealed, 1984 c 654 art 2 s 155]
16A.52 [Repealed, 1984 c 628 art 2 s 4]
16A.53 BOOKKEEPING ACCOUNTS.
    Subdivision 1. 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 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.
    Subd. 2. Exception. Subdivision 1 does not apply to a fund created by the Constitution or
to a fund required to be created in the treasury by federal law.
    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.
    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.
History: 1959 c 30 s 2; 1973 c 492 s 14; 1984 c 628 art 2 s 1; 2004 c 284 art 1 s 1-3
16A.531 FUNDS CREATED.
    Subdivision 1. Environmental fund. There is created in the state treasury an environmental
fund as a special revenue fund for deposit of receipts from environmentally related taxes, fees,
and other sources as provided in subdivision 1a.
    Subd. 1a. Revenues. The following revenues must be deposited in the environmental fund:
    (1) all revenue from the motor vehicle transfer fee imposed under section 115A.908;
    (2) all fees collected under section 116.07, subdivision 4d;
    (3) all money collected by the Pollution Control Agency in enforcement matters as provided
in section 115.073;
    (4) all revenues from license fees for individual sewage treatment systems under section
115.56;
    (5) all loan repayments deposited under section 115A.0716;
    (6) all revenue from pollution prevention fees imposed under section 115D.12;
    (7) all loan repayments deposited under section 116.994;
    (8) all fees collected under section 116C.834;
    (9) revenue collected from the solid waste management tax pursuant to chapter 297H;
    (10) fees collected under section 473.844;
    (11) interest accrued on the fund; and
    (12) money received in the form of gifts, grants, reimbursement, or appropriation from any
source for any of the purposes provided in subdivision 2, except federal grants.
    Subd. 2. Natural resources fund. There is created in the state treasury a natural resources
fund as a special revenue fund for deposit of certain receipts from fees and services associated
with natural resource management by the state.
    Subd. 3. Agricultural fund. There is created in the state treasury an agricultural fund as a
special revenue fund for deposit of receipts from agricultural related fees and activities conducted
by the state.
History: 1989 c 335 art 4 s 8; 1999 c 231 s 20; 2003 c 128 art 2 s 1,2; 2007 c 57 art 1 s 12
16A.532 MINNESOTA STATE COLLEGES AND UNIVERSITIES ENTERPRISE
ACCOUNT.
There is created in the state enterprise fund a Minnesota State Colleges and Universities
account. The commissioner must report to committees of the legislature having jurisdiction over
the account on activity in this account at the same time fund balance statements are issued for
the general fund. The amounts in this account earn investment income as provided in section
136F.71, subdivision 3.
History: 1Sp2001 c 1 art 2 s 1
16A.54 GENERAL FUND DEFINED.
Except as provided in section 16A.671, subdivision 3, the term "general fund" appearing
in any existing or hereafter enacted law relating to revenues deposited in or expenditures
appropriated from the treasury means such moneys as have been deposited in the treasury for the
usual, ordinary, running, and incidental expenses of the state government and does not include
moneys deposited in the treasury for a special or dedicated purpose.
History: 1959 c 30 s 3; 1969 c 399 s 2; 1984 c 597 s 32; 1984 c 628 art 2 s 1; art 6 s 1
16A.55 [Repealed, 1984 c 628 art 2 s 4]
16A.56 COMMISSIONER'S RECEIPT AND CLAIM DUTIES.
The commissioner or a designee shall examine every receipt and claim, and if proper,
approve them, name the account to be charged or credited, and issue warrants to pay claims.
History: (80-3) 1939 c 431 art 3 s 2; 1955 c 863 s 16; 1973 c 492 s 14; 1984 c 628 art 2 s 1
16A.57 APPROPRIATION, ALLOTMENT, AND WARRANT NEEDED.
Unless otherwise expressly provided by law, state money may not be spent or applied
without an appropriation, an allotment, and issuance of a warrant or electronic fund transfer.
History: (80-4) 1939 c 431 art 3 s 3; 1955 c 863 s 17; 1973 c 492 s 14; 1984 c 628 art 2
s 1; 1995 c 254 art 1 s 51
16A.575 APPROPRIATIONS; NOT DISCLOSING SOURCE.
If money is appropriated from the state treasury and the appropriation does not disclose its
source, the appropriation is from the general fund.
History: Ex1971 c 3 s 97; 1988 c 469 art 1 s 1
16A.58 COMMISSIONER CUSTODIAN OF PAYMENT DOCUMENTS.
The commissioner or the head of a state agency designated by the commissioner is the
custodian of original documents on which money has been or may be paid out of or received
in the state treasury.
History: (80-5) 1939 c 431 art 3 s 4; 1955 c 863 s 18; 1973 c 492 s 14; 1984 c 628 art 2 s 1;
1Sp1985 c 13 s 109; 1989 c 271 s 3; 1993 c 192 s 67
16A.59 [Repealed, 1984 c 654 art 2 s 155]
16A.60 COST TO COLLECT HIGHWAY TAXES TO GENERAL FUND.
The commissioner, when authorized from time to time by law, shall transfer money from the
highway user tax distribution fund to the general fund. The transfer is to reimburse the general
fund for the cost of collecting the taxes mentioned in the Constitution, article XIV.
History: 1959 c 403 s 1; 1973 c 492 s 14; 1976 c 2 s 172; 1978 c 793 s 50; 1984 c 628 art
2 s 1
16A.61 CERTIFICATE MONEY TO GENERAL FUND.
The commissioner shall transfer money credited to a fund set up for paying off certificates of
indebtedness to the general fund when the purpose of the certificates is accomplished.
History: Ex1961 c 88 s 57; 1969 c 399 s 3; Ex1971 c 3 s 56; 1973 c 492 s 14; 1984
c 628 art 2 s 1
16A.62 MONEY IN ABOLISHED FUND TO GENERAL FUND.
Each June 30, the commissioner shall transfer to and credit to the general fund, money in
a special fund or account abolished by law.
History: Ex1967 c 48 s 97; 1969 c 399 s 4; 1984 c 628 art 2 s 1
16A.625 [Repealed, 1988 c 646 art 5 s 10]
16A.626 ELECTRONIC PAYMENTS.
(a) For purposes of this section, the terms defined in this paragraph have the meaning given
them. "Agency" means a state officer, employee, board, commission, authority, department,
entity, or organization of the executive branch of state government. "Government services
transaction" means the conduct of business between an agency and an individual or business
entity where the individual or business entity is paying a license or permit fee or tax or purchasing
goods or services.
(b) Notwithstanding any other provision of law, rule, or regulation to the contrary, an agency
may accept credit cards, charge cards, debit cards, or other method of electronic funds transfer for
payment in government services transactions, including electronic transactions.
(c) The commissioner of finance shall contract with one or more entities for the purpose of
enabling agencies to accept and process credit cards and other electronic financial transactions.
All agencies shall process their credit card and other electronic financial transactions through the
contracts negotiated by the commissioner of finance, unless the commissioner of finance grants
a waiver allowing an agency to negotiate its own contract with an entity. These contracts must
be approved by the commissioner of finance.
(d) Agencies that accept credit cards, charge cards, debit cards, or other method of electronic
funds transfer for payment may impose a convenience fee to be added to each transaction, except
that the Department of Revenue shall not impose a fee under this section on any payment of tax
that is required by law or rule to be made by electronic funds transfer. The total amount of such
convenience fee must be equal to the transaction fee charged by a processing contractor for such
credit services during the most recent collection period. An agency imposing a convenience fee
must notify the person using the credit services of the fee before the transaction is processed.
Fees collected under this section are appropriated to the agency collecting the fee for purposes
of paying the processing contractor.
(e) A convenience fee imposed by an agency under this section is in addition to any tax,
fee, charge, or cost otherwise imposed for a license, permit, tax, service, or good provided by
the agency.
(f) Credit card, charge card, debit card, or other method of electronic funds transfer account
numbers are nonpublic data not on individuals as defined in section 13.02, subdivision 9, or
private data on individuals as defined in section 13.02, subdivision 12.
History: 2000 c 419 s 1; 2003 c 112 art 2 s 4
16A.63 [Repealed, 1984 c 597 s 55]
16A.631 BOND PROCEEDS FUND.
The bond proceeds fund is established to receive the proceeds of state bonds issued under
the Constitution, article XI, section 5, clause (a). The commissioner shall establish in the fund
accounts having titles that reflect the state purpose or program for which the bond proceeds are
appropriated and authorized to be expended.
History: 1984 c 597 s 33; 1Sp1986 c 3 art 1 s 4; 1989 c 271 s 4; 1990 c 610 art 1 s 33
16A.632 CAPITAL ASSET PRESERVATION AND REPLACEMENT ACCOUNT.
    Subdivision 1. Establishment. A capital asset preservation and replacement account is
established in the state bond proceeds fund established by section 16A.631, separate from
any other accounts maintained in that fund, to receive state bond proceeds appropriated to the
commissioner of administration to be expended for the purpose and in accordance with the
standards and criteria set forth in this section.
    Subd. 2. Standards. Article XI, section 5, clause (a), of the Constitution states general
obligation bonds may be issued to finance only the acquisition or betterment of state land,
buildings, and improvements of a capital nature. In interpreting this and applying it to the
purposes of the program contemplated in this section, the following standards are adopted for the
disbursement of money from the capital asset preservation and replacement account:
(a) No new land, buildings, or major new improvements will be acquired. These projects,
including all capital expenditures required to permit their effective use for the intended purpose
on completion, will be estimated and provided for individually through a direct appropriation
for each project.
(b) An expenditure will be made from the account only when it is a capital expenditure
on a capital asset previously owned by the state, within the meaning of accepted accounting
principles as applied to public expenditures. The commissioner of administration will consult
with the commissioner of finance to the extent necessary to ensure this and will furnish the
commissioner of finance a list of projects to be financed from the account in order of their
priority. The commissioner shall also furnish each revision of the list. The legislature assumes
that many provisions for preservation and replacement of portions of existing capital assets will
constitute betterments and capital improvements within the meaning of the Constitution and
capital expenditures under correct accounting principles, and will be financed more efficiently and
economically under the program than by direct appropriations for specific projects. However,
the purpose of the program is to accumulate data showing how additional costs may be saved by
appropriating money from the general fund for preservation measures, the necessity of which is
predictable over short periods.
(c) The commissioner of administration will furnish instructions to agencies to apply for
funding of capital expenditures for preservation and replacement from the account, will review
applications, will make initial allocations among types of eligible projects enumerated below, will
determine priorities, and will allocate money in priority order until the available appropriation
has been committed.
(d) Categories of projects considered likely to be most needed and appropriate for financing
are the following:
(1) unanticipated emergencies of all kinds, for which a relatively small amount should
be initially reserved, replaced from money allocated to low-priority projects, if possible, as
emergencies occur, and used for stabilization rather than replacement if the cost would exhaust
the account and should be specially appropriated;
(2) projects to remove life safety hazards, like replacement of mechanical systems, building
code violations, or structural defects, at costs not large enough to require major capital requests to
the legislature;
(3) elimination or containment of hazardous substances like asbestos or PCBs;
(4) moderate cost replacement and repair of roofs, windows, tuckpointing, and structural
members necessary to preserve the exterior and interior of existing buildings; and
(5) up to ten percent of an appropriation awarded under this section may be used for design
costs for projects eligible to be funded from this account in anticipation of future funding from
the account.
    Subd. 3. Criteria for priority. Criteria can be stated only in general terms, as it is the
purpose of the program to improve the allocation of limited amounts of borrowed money by
enlisting the engineering expertise of the Department of Administration and the closer knowledge
and experience of this and all other agencies in determining relative needs as they develop. The
following criteria must be considered:
(a) Urgency in ensuring the safety of use of existing buildings is the first criterion to be
applied. It will require judgments, for example, about the useful life of electric and mechanical
systems and roofs, in relation to the remaining useful life of each building, and about the presence
of hazardous substances and structural defects in the light of present building regulations.
(b) Economy is also to be determined and may even reinforce a decision based on the first
criterion, if the project would forestall a larger future capital expenditure or would reduce
operating expense.
(c) Absolute cost must also be considered. It may be too high to warrant funding except by
an additional appropriation, or so high as to warrant a recommendation to abandon or to replace
the building. It may be so low as to permit payment out of an agency's operating budget.
    Subd. 4. Report. By January 15 of each year the commissioner of administration, with
respect to each state agency, shall submit to the commissioner of finance, the chairs of the finance
divisions that oversee the appropriations to that state agency, and to the chairs of the senate
Finance Committee and the house of representatives Capital Investment Committee, a list of the
projects in the agency that have been funded with money from the capital asset preservation and
replacement account during the preceding calendar year, as well as a list of those priority projects
for which CAPRA appropriations will be sought for the agency in that year's legislative session.
History: 1990 c 610 art 1 s 34; 1996 c 463 s 30; 1997 c 187 art 3 s 1; 2002 c 393 s 34
16A.633 CAPITAL FUNDING CONTINGENT ON MAINTAINING DATA.
    Subdivision 1. State agencies. Each state agency shall provide to the commissioner of
administration the data necessary for the commissioner to maintain the department's database
on the location, description, and condition of state-owned facilities. The data must be provided
by September 1 each year. The commissioner of administration must maintain both the current
inventory data and historical data. A state agency is not eligible to receive capital funding unless
the agency has provided the data required.
    Subd. 2. Minnesota State Colleges and Universities. The Board of Trustees of the
Minnesota State Colleges and Universities shall establish and maintain data on the location,
description, and condition of board-owned facilities that is comparable with the database
established by the Department of Administration. The data must be updated annually and the
board must maintain both current inventory data and historical data. The board is not eligible to
receive capital funding unless the board has established and maintains the data required.
    Subd. 3. University of Minnesota. The Board of Regents of the University of Minnesota
is requested to establish and maintain data on the location, description, and condition of
university-owned facilities that is comparable with the database established by the Department of
Administration. The university is requested to update the data annually and maintain both current
inventory data and historical data. The Board of Regents is not eligible to receive capital funding
unless the board has established and maintains the data required.
History: 2000 c 488 art 12 s 13
16A.64 [Repealed, 1984 c 597 s 55]
16A.641 STATE BONDS; APPROPRIATIONS.
    Subdivision 1. Authority. When authorized by a law enacted in accordance with the
Constitution, article XI, sections 5 and 7, the commissioner shall sell and issue general obligation
bonds of the state evidencing public debt incurred for any purpose stated in those sections. The
full faith, credit, and taxing powers of the state are irrevocably pledged for the prompt and full
payment of the bonds and interest. The decision of the commissioner on when to sell bonds must
be based on the funding needs of the capital projects, the timing of the bond issue to achieve
favorable interest rates, managing cash flow requirements for debt service, other state debt
management considerations, and legal factors.
    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 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.
    Subd. 3. Series of bonds. Bonds authorized by a law may be issued in more than one series,
and bonds authorized by more than one law may be combined in a single series, as determined by
order of the commissioner. The order must state the principal amount of the bonds to be issued
under each law, and the aggregate principal amount and the maturity dates and amounts of the
bonds included in the series that are to be issued for the purpose of each special fund.
At any time during the 18 months following the issuance of any series of bonds, the
commissioner may, by amendment to the order authorizing their issuance, determine that any
portion of the bonds were issued, or shall be deemed to have been issued, pursuant to a law other
than the one specified in the original order and for a different purpose, and reallocate and transfer
their proceeds to the appropriate account in the bond proceeds fund or the appropriate special
fund, for expenditure pursuant to the law pursuant to which the amendment determines they were
issued. No such amendment shall be adopted unless:
(1) on the date of the original order, the bonds could have been issued and their proceeds
expended as determined in the amended order;
(2) all actions required for the issuance of the transferred bonds have been taken on or
before the date of the amendment; and
(3) the commissioner determines upon advice of counsel that the taxability of the interest on
the bonds for federal income tax purposes will not be affected by the amendment.
    Subd. 4. Sale and issuance. State bonds must be sold and issued upon competitive bids in
the manner and on the terms and conditions determined by the commissioner in accordance with
the laws authorizing them and subject to the approval of the attorney general, but not subject
to chapter 14, including section 14.386. For each series, in addition to provisions required by
subdivision 3, the commissioner may determine:
(1) the time, place, and notice of sale and method of comparing bids;
(2) the price, not less than par for highway bonds;
(3) the principal amount and date of issue;
(4) the interest rates and payment dates;
(5) the maturity amounts and dates, not more than 20 years from the date of issue, subject to
subdivision 5;
(6) the terms, if any, on which the bonds may or must be redeemed before maturity, including
notice, times, and redemption prices; and
(7) the form of the bonds and the method of execution, delivery, payment, registration,
conversion, and exchange, in accordance with section 16A.672.
    Subd. 5. Planning maturities. In issuing each series of state bonds the commissioner shall
try to establish the maturities and other terms so that transfers to the state bond fund required in
each year of the then current biennium under subdivision 10 may be made with the least practical
effect on orderly spending plans for other appropriations from the general fund.
    Subd. 6. Taxability; certification. The commissioner shall ascertain from state records and
certify to the holders of each series of state bonds, subject to the approval of the attorney general,
that all conditions exist and all actions have been taken that are needed to make the bonds valid
and binding general obligations of the state in accordance with their terms.
The bonds may be issued with or without regard to whether the interest to be paid on them is
includable in gross income for federal tax purposes. If it is intended that the interest on the bonds
be exempt from federal income taxes, the commissioner shall certify for the state on the date of
issue the facts, estimates, and circumstances that lead the commissioner reasonably to expect
that the proceeds of the bonds and the projects financed by them will not be used in a way that
would cause the interest on the bonds to be subject to federal income taxes. The commissioner
may covenant with the holders of the bonds that the state will comply with the provisions of the
United States Internal Revenue Code then or later enacted that apply or may apply to the bonds
and that establish conditions under which the interest to be paid on the bonds will not be subject
to federal income taxes. The commissioner and all other state officers shall act or refrain from
acting as necessary to comply with the covenants. A sum sufficient to meet the cost of compliance
is annually appropriated to the commissioner from the general fund.
    Subd. 7. Credit of proceeds. (a) Proceeds of bonds issued under each law must be credited
by the commissioner to a special fund, as provided in this subdivision.
(b) Accrued interest and any premium received on sale of the bonds must be credited to the
state bond fund created by the Constitution, article XI, section 7.
(c) Except as otherwise provided by law, proceeds of state bonds issued under the
Constitution, article XI, section 5, clause (a), must be credited to the bond proceeds fund
established by section 16A.631.
(d) Proceeds of state highway bonds must be credited to the trunk highway fund under the
Constitution, article XIV, section 6.
(e) Proceeds of bonds issued for programs of grants or loans to political subdivisions must
be credited to special accounts in the bond proceeds fund or to special funds established by
laws stating the purposes of the grants or loans, and the standards and criteria under which an
executive agency is authorized to make them.
(f) Proceeds of refunding bonds must be credited to the state bond fund as provided in
section 16A.66, subdivision 1.
(g) Proceeds of other bonds must be credited as provided in the law authorizing their issuance.
    Subd. 8. Appropriation of proceeds. (a) The proceeds of bonds issued under each law are
appropriated for the purposes described in the law and in this subdivision. This appropriation
may never be canceled.
(b) Before the proceeds are received in the proper special fund, the commissioner may
transfer to that fund from the general fund amounts not exceeding the expected proceeds from the
next bond sale. The commissioner shall return these amounts to the general fund by transferring
proceeds when received. The amounts of these transfers are appropriated from the general fund
and from the bond proceeds.
(c) Actual and necessary travel and subsistence expenses of employees and all other
nonsalary expenses incidental to the sale, printing, execution, and delivery of bonds must be paid
from the proceeds. The proceeds are appropriated for this purpose. Bond proceeds must not be
used to pay any part of the salary of a state employee involved in the sale, printing, execution, or
delivery of the bonds.
(d) Bond proceeds remaining in a special fund after the purposes for which the bonds were
issued are accomplished or abandoned, as certified by the head of the agency administering the
special fund, or as determined by the commissioner, unless devoted under the appropriation act to
another purpose designated in the act, must be transferred to the state bond fund.
(e) Before the proceeds of state highway bonds are received in the trunk highway fund, the
commissioner may either:
(1) transfer funds to the trunk highway fund from the general fund; or
(2) authorize the use of funds in the trunk highway fund, in an amount not exceeding the
expected proceeds from the next state highway bond sale.
These funds must be used in accordance with the legislative authorization to sell state highway
bonds. The commissioner shall return these funds to the general fund or replace the funds used
from the trunk highway fund by transferring proceeds when received. The amounts of these
transfers are appropriated from the general fund and from the state highway bond proceeds.
    Subd. 9. Special accounts; appropriation. (a) The commissioner shall establish separate
accounts in the state bond fund for:
(1) state building bonds, and for other state bonds issued for each program of grants to
political subdivisions for a particular class of capital expenditures, to record debt service payments
and receipts of amounts appropriated from the general fund under subdivision 10;
(2) state highway bonds, to record debt service payments, receipts of amounts appropriated
for debt service from the trunk highway fund pursuant to the Constitution, article XIV, section 6,
and additional receipts, if any, of amounts appropriated from the general fund under subdivision
10;
(3) state bonds issued for each capital loan and for each program of capital loans to agencies
or political subdivisions, to record debt service payments, receipts of loan repayments appropriated
for debt service or reimbursement of debt service by the law authorizing the loan or program, and
any additional receipts of amounts appropriated from the general fund under subdivision 10; and
(4) refunding bonds, as provided in section 16A.66, subdivision 1.
(b) All money credited, transferred, or appropriated to the state bond fund and all income
from the investment of that money is appropriated to the commissioner for the payment of
principal and interest on state bonds.
    Subd. 10. Appropriation from general fund. There is annually appropriated to the state
bond fund from the general fund the amount that, added to the amount in the state bond fund on
November 1 each year for state bonds issued by January 1, 1985, and the amount that added to
the amount in the state bond fund on December 1 each year for state bonds issued after January
1, 1985, is needed to pay the principal of and interest on all state bonds due and to become
due through July 1 in the second ensuing year. The money appropriated must be available in
the state bond fund each year before the tax otherwise required by the Constitution, article XI,
section 7, is levied.
    Subd. 11. Constitutional tax levy. Under the Constitution, article XI, section 7, the state
auditor must levy each year on all taxable property within the state a tax sufficient, with the
amount then on hand in the state bond fund, to pay all principal and interest on state bonds due
and to become due to and including July 1 in the second ensuing year. The tax is not subject to
limitation of rate or amount. However, the amount of money appropriated from other sources
as provided in subdivision 10, and actually received and on hand prior to the levy in any year,
reduces the amount of the tax otherwise required to be levied. The proceeds of the tax must
be credited to the state bond fund.
    Subd. 12. Supplemental appropriation from general fund. If the proceeds of the tax levied
under subdivision 11 are ever insufficient to make the principal and interest payments on state
bonds when due, the balance must be paid out of the general fund. The amount needed to pay the
balance is appropriated from the general fund to the commissioner.
    Subd. 13. Application. This section applies to all state bonds issued after January 1, 1985,
notwithstanding other laws relating to specific bonding programs.
History: 1984 c 597 s 34; 1Sp1985 c 13 s 111,112; 1Sp1985 c 14 art 4 s 2; 1986 c 444; 1989
c 271 s 5; 1990 c 610 art 1 s 35,36; 1991 c 345 art 1 s 54; 1994 c 643 s 34; 1996 c 463 s 31; 1997
c 187 art 4 s 1; 1998 c 404 s 32; 2000 c 492 art 1 s 28; 1Sp2001 c 8 art 2 s 8; 2004 c 284 art 2 s 6
16A.642 STATE BONDS: REPORTS; CANCELLATIONS.
    Subdivision 1. Reports. (a) The commissioner of finance shall report to the chairs of the
senate Committee on Finance and the house of representatives Committees on Ways and Means
and on Capital Investment by January 1 of each odd-numbered year on the following:
(1) all laws authorizing the issuance of state bonds or appropriating general fund money for
state or local government capital investment projects enacted more than four years before January
1 of that odd-numbered year; the projects authorized to be acquired and constructed for which
less than 100 percent of the authorized total cost has been expended, encumbered, or otherwise
obligated; the cost of contracts to be let in accordance with existing plans and specifications shall
be considered expended for this report; and the amount of general fund money appropriated but
not spent or otherwise obligated, and the amount of bonds not issued and bond proceeds held but
not previously expended, encumbered, or otherwise obligated for these projects; and
(2) all laws authorizing the issuance of state bonds or appropriating general fund money
for state or local government capital programs or projects other than those described in clause
(1), enacted more than four years before January 1 of that odd-numbered year; and the amount
of general fund money appropriated but not spent or otherwise obligated, and the amount of
bonds not issued and bond proceeds held but not previously expended, encumbered, or otherwise
obligated for these programs and projects.
(b) The commissioner shall also report on general fund appropriations for capital projects,
bond authorizations or bond proceed balances that may be canceled because projects have been
canceled, completed, or otherwise concluded, or because the purposes for which the money was
appropriated or bonds were authorized or issued have been canceled, completed, or otherwise
concluded. The general fund appropriations, bond authorizations or bond proceed balances that
are unencumbered or otherwise not obligated that are reported by the commissioner under this
subdivision are canceled, effective July 1 of the year of the report, unless specifically reauthorized
by act of the legislature.
    Subd. 2. Cancellation. If the commissioner determines that the purposes for which general
obligation bonds of the state have been issued or for which general fund monies were appropriated
are accomplished or abandoned, after consultation with the affected agencies, and there is a
remaining authorization or appropriation for a specific project of $500 or less, the commissioner
may cancel the remaining authorization or appropriation for that project. The commissioner must
notify the chairs of the senate Finance Committee and the house Capital Investment Committee of
any bond authorizations or general fund appropriations canceled under this subdivision.
    Subd. 3. Application of unused bond proceeds. All canceled bond proceeds shall be
transferred to the state bond fund and used to pay or redeem bonds from which they were derived.
    Subd. 4. General fund cancellations. All canceled general fund appropriations for capital
improvement projects under this section are canceled to the general fund.
History: 1Sp1995 c 2 art 1 s 16; 1997 c 202 art 2 s 20,21; 2000 c 492 art 1 s 29; 2003 c 112
art 1 s 13; 1Sp2003 c 1 art 2 s 38
16A.643 ASSESSMENTS IF AGENCY MUST PAY DEBT SERVICE.
    Subdivision 1. When payment required. The commissioner of finance shall assess each
board, agency, or other public entity, other than the higher education systems described in Laws
1992, chapter 558, section 31, for the amount that would otherwise need to be paid for debt service
with respect to general obligation bonds sold to finance capital improvement projects for the entity
if the law authorizing the project requires debt service for the project to be paid by the agency.
    Subd. 2. Method of payment. After each sale of state general obligation bonds, the
commissioner of finance shall notify the entity of the amounts for which the entity is responsible
under subdivision 1 for each year for the life of the bonds. Each entity shall pay its assessment of
debt service payments to the commissioner of finance by December 1 each year. If an entity fails
to make an assessment payment when due, the commissioner of finance shall reduce allotments
for appropriations from the appropriate accounts to be used by the entity to pay the assessment
payment and apply the amount of the reduction to cover the missed payment. The commissioner
of finance shall credit the payments received from the entities, or the amount of the reduction
made, to the bond debt service account in the state bond fund each December 1 before money is
transferred from the general fund under section 16A.641, subdivision 10.
History: 1992 c 558 s 32
16A.645 GOPHER STATE BONDS.
    Subdivision 1. Establishment of program. The commissioner of finance, in consultation
with the University of Minnesota, the Minnesota State Colleges and Universities, and the Private
College Council, shall establish a college savings bond program, to be known as "gopher state
bonds" to encourage individuals to save for higher education costs by investing in state general
obligation bonds. The program consists of: (1) issuing a portion of the state general obligation
bonds in zero coupon form and in denominations and maturities that will be attractive to
individuals saving to pay for higher education costs; and (2) developing a program for marketing
the bonds to investors who are saving to pay for higher education costs. The commissioner of
finance may designate all or a portion of each state general obligation bond sale as "gopher
state bonds."
    Subd. 2. Denominations; maturities. The commissioner shall determine the appropriate
denominations and maturities for gopher state bonds. It is the intent of the legislature to make
bonds available in as small denominations as is feasible given the costs of marketing and
administering the bond issue. Minimum denominations of $500 must be made available. The
minimum denomination bonds need not be made available for bonds of all maturities. For
purposes of this section, "denomination" means the compounded maturity amount of the bond.
    Subd. 3. Direct sale permitted. Notwithstanding the provisions of section 16A.646,
subdivision 5
, the commissioner may sell any series of gopher state bonds directly to the public
or to financial institutions for prompt resale to the public upon the terms and conditions and the
restrictions the commissioner prescribes. The commissioner may enter into all contracts deemed
necessary or desirable to accomplish the sale in a cost-effective manner including a private or
negotiated sale, but the commissioner may contract for investment banking and banking services
only after receiving competitive proposals for the services.
    Subd. 4. Marketing plan. The commissioner and the Higher Education Advisory Council
shall develop a plan for marketing gopher state bonds.
The plan must include strategies to:
(1) inform parents and relatives about the availability of the bonds;
(2) take orders for the bonds;
(3) target the sale of the bonds to Minnesota residents, especially parents and relatives of
children who are likely to seek higher education;
(4) ensure that purchase of the bonds by corporations will not prevent individuals and
relatives of future students from buying them; and
(5) market the bonds at the lowest cost to the state.
    Subd. 5. Effect on student grants. The first $25,000 of gopher state bonds purchased for
the benefit of a student must not be considered in determining the financial need of an applicant
for the state grant program under section 136A.121. This $25,000 is in addition to any other
asset exclusion authorized under chapter 136A.
History: 1997 c 183 art 2 s 1
16A.646 ZERO COUPON BONDS.
    Subdivision 1. Authority to issue. When authorized by law to issue state general obligation
bonds, the commissioner may issue all or part of the bonds as serial maturity bonds or as zero
coupon bonds or a combination of the two.
    Subd. 2. Definitions. For purposes of this section and section 16A.645, the following terms
have the meanings given them.
(a) "Compounded maturity" means the amount of principal and interest payable at maturity
on zero coupon bonds.
(b) "Serial maturity bonds" means bonds maturing on a specified day in two or more
consecutive years and bearing interest at a specified rate payable periodically to maturity or
prior redemption.
(c) "Zero coupon bonds" means bonds in a stated principal amount, maturing on a specified
date or dates, and bearing interest that accrues and compounds to and is payable only at maturity
or upon prior redemption of the bonds.
    Subd. 3. Method of sale; principal amount. Except as otherwise provided by this section
or section 16A.645, any series of bonds including zero coupon bonds must be issued and sold
under the provisions of section 16A.641. The stated principal amount of zero coupon bonds must
be used to determine the principal amount of bonds issued under the laws authorizing issuance
of state general obligation bonds.
    Subd. 4. Sinking fund. The commissioner's order authorizing the issuance of zero coupon
bonds shall establish a separate sinking fund account for the zero coupon bonds in the state
bond fund. There is annually appropriated from the general fund to each zero coupon bond
account, beginning in the year in which the zero coupon bonds are issued, an amount not less
than the sum of:
(1) the total stated principal amount of the zero coupon bonds that would have matured from
their date of issue to and including the second July 1 following the transfer of appropriated money,
if the bonds matured serially in an equal principal amount in each year during their term and in
the same month as their stated maturity date; plus
(2) the total amount of interest accruing on the stated principal amount of the bonds and on
interest previously accrued, from bonds date of issue to and including the second July 1 following
the transfer of appropriated money; less
(3) the amount in the sinking fund account for the payment of the compounded maturity
amount of the bonds, including interest earnings on amounts in the account. This appropriation
is in lieu of all other appropriations made with respect to zero coupon bonds. The appropriated
amounts must be transferred from the general fund to the sinking fund account in the state bond
fund by December 1 of each year.
    Subd. 5. Sale. Except as otherwise provided in section 16A.645, zero coupon bonds, or a
series of bonds including zero coupon bonds, must be sold at public sale at a price not less than 98
percent of their stated principal amount. No state trunk highway bond may be sold for a price of
less than par and accrued interest.
History: 1997 c 183 art 2 s 2
16A.65    Subdivision 1.[Repealed, 1984 c 597 s 55]
    Subd. 2.[Repealed, 1984 c 597 s 55]
    Subd. 3.[Repealed, 1984 c 597 s 55; 1984 c 628 art 2 s 4]
    Subd. 4.[Repealed, 1984 c 597 s 55]
16A.651 [Repealed, 1990 c 610 art 1 s 59]
16A.66 REFUNDING BONDS.
    Subdivision 1. Authority; reduction of tax and appropriation for refunded bonds. The
commissioner may, with the approval by resolution of the Executive Council, issue state bonds in
accordance with section 16A.641 to refund any outstanding state bonds and interest on them.
The proceeds of refunding bonds shall be credited to the account established within the state
bond fund for the bonds to be refunded, and shall be credited only against the appropriations in
section 16A.641, subdivisions 9 and 10 and the tax required by the Constitution with respect
to the refunded bonds and interest.
    Subd. 2. Special provisions for sale and issuance. Refunding bonds may be sold publicly,
or directly to the State Board of Investment without bids, or may be exchanged for bonds refunded
by agreement with their holders. The refunding bonds must be prepared, executed, delivered,
and secured in the same way as the refunded bonds. The proceeds of refunding bonds may be
deposited, invested, and applied to accomplish the refunding as provided in section 475.67,
subdivisions 5 to 10
. The interest rate on refunding bonds may exceed that on the refunded
bonds if the purpose of refunding is to extend the maturities and to reduce the amount needed
annually to pay and to secure the debt.
    Subd. 3. Appropriation. The money needed to carry out this section is appropriated annually.
History: 1969 c 1047 s 2; 1973 c 35 s 1; 1973 c 492 s 14; 1976 c 2 s 172; 1Sp1981 c 1 art
10 s 1; 1983 c 301 s 96-98; 1984 c 597 s 36; 1984 c 628 art 2 s 1; art 6 s 1
16A.661 GENERAL OBLIGATION SPECIAL TAX BONDS.
    Subdivision 1. Authority. When authorized by law enacted in accordance with the
Constitution, article XI, sections 5 and 7, the commissioner may by order sell and issue general
obligation special tax bonds of the state evidencing public debt incurred for any purpose stated
in the law. The bonds are payable primarily from the proceeds of special taxes appropriated to
special tax bond debt service accounts established in subdivision 3 and other money on hand in
that fund from time to time; however, the bonds are general obligations of the state, and the full
faith and credit of the state are pledged for their payment.
    Subd. 2. Manner of issuance; maturities. The bonds must be issued and sold in accordance
with section 16A.641, except that the maturities of the bonds and the interest rates applicable to
the bonds must be fixed so that the principal and interest coming due in the 1987-1989 biennium
on all bonds outstanding at any time does not exceed $46,750,000. Sections 16A.672 and 16A.675
apply to the bonds.
    Subd. 3. Establishment of debt service fund; appropriation of debt service fund money.
(a) There is established within the state bond fund a separate and special account designated as
a general obligation special tax bond debt service account. There must be credited to this debt
service account in each fiscal year from the tobacco tax revenue fund established in section
297F.10 an amount sufficient to increase the balance on hand in the debt service account on each
December 1 to an amount equal to the full amount of principal and interest to come due on
all outstanding bonds whose debt service is payable primarily from proceeds of the tax to and
including the second following July 1. The money on hand in the debt service account must be
used solely for the payment of the principal of, and interest on, the bonds, and is appropriated for
this purpose. This appropriation does not cancel as long as any of the bonds remain outstanding.
(b) There is established within the state bond fund a separate and special account designated
as a general obligation special tax bond debt service account. There must be credited to this
debt service account in each fiscal year from the sports and health club sales tax revenue fund
established in section 297A.94 an amount sufficient to increase the balance on hand in the debt
service account on each December 1 to an amount equal to the full amount of principal and
interest to come due on all outstanding bonds whose debt service is payable primarily from
proceeds of the tax to and including the second following July 1. The money on hand in the debt
service account must be used solely for the payment of the principal of, and interest on, the bonds,
and is appropriated for this purpose. This appropriation does not cancel as long as any of the
bonds remain outstanding.
    Subd. 4. Appropriation from general fund. There is annually appropriated to the general
obligation special tax bond debt service accounts from the general fund the amount that, added to
the amount in the general obligation special tax bond debt service accounts on December 1 each
year, after giving effect to subdivision 3, is equal to the full amount of principal and interest to
come due on all bonds to and including July 1 in the second ensuing year.
    Subd. 5. Constitutional tax levy. Under the Constitution, article XI, section 7, the state
auditor must levy each year on all taxable property within the state a tax sufficient, with the
amount then on hand in the general obligation special tax bond debt service accounts, to pay all
principal and interest on the bonds due and to become due to and including July 1 in the second
ensuing year. The tax is not subject to limit as to rate or amount. However, the amount of money
appropriated from other sources as provided in subdivisions 3 and 4, and actually received and
on hand before the levy in any year, reduces the amount of the tax otherwise required to be
levied. The proceeds of the tax must be credited to the appropriate general obligation special tax
bond debt service account.
    Subd. 6.[Repealed, 1990 c 610 art 1 s 59]
    Subd. 7. Application and appropriation of proceeds. The proceeds of the bonds must be
deposited and spent as provided in this subdivision and are appropriated for those purposes. Any
accrued interest and any premium received on the sale of the bonds, and any amount of bond
proceeds determined by the commissioner to be needed to pay interest payable on the bonds up
to 18 months following their issuance, must be credited to the appropriate general obligation
special tax bond debt service account. Except as otherwise required by law, the balance of the
bond proceeds shall be credited to the bond proceeds fund and spent for the purposes specified
in the law authorizing the issuance of the bonds. So much of the proceeds as is necessary must
be used to pay costs incurred in issuing and selling the bonds.
History: 1987 c 400 s 31; 1988 c 633 s 1; 1989 c 271 s 6; 1997 c 106 art 2 s 2; 2000 c
418 art 1 s 44
16A.662 INFRASTRUCTURE DEVELOPMENT BONDS.
    Subdivision 1. Infrastructure development fund. The infrastructure development fund is
created as an account in the state treasury. The commissioner of finance shall credit to the fund
income from the sources provided by law. The commissioner of finance shall from time to time
certify to the State Board of Investment the assets of the fund not currently needed. The amount
certified must be invested by the State Board of Investment subject to section 11A.24. Investment
income and investment losses attributable to investment of fund assets must be credited to
or borne by the fund.
    Subd. 2. Bonds authorized. When authorized by law enacted in accordance with the
Constitution, article XI, sections 5 and 7, the commissioner may by order sell and issue bonds of
the state evidencing public debt incurred for any purpose stated in the law. The bonds are general
obligations of the state, and the full faith and credit of the state are pledged for their payment.
    Subd. 3. Manner of issuance; maturities. The bonds must be issued and sold in accordance
with section 16A.641. Sections 16A.672 and 16A.675 apply to the bonds.
    Subd. 4. Establishment of debt service account; appropriation of debt service account
money. There is established within the state bond fund a separate and special account designated
as the infrastructure development bond debt service account. The money on hand in the debt
service account must be used solely for the payment of the principal of and interest on bonds
issued under Laws 1990, chapter 610, article 1, section 30, subdivision 2, and is appropriated for
this purpose. This appropriation does not cancel as long as any of the bonds remain outstanding.
    Subd. 5. Assessment to higher education systems. (a) In order to reduce the amount
otherwise required to be transferred to the state bond fund with respect to bonds heretofore
or hereafter issued under Laws 1990, chapter 610, article 1, section 30, subdivision 2, the
commissioner of finance shall assess each higher education system for one-third the amount
that would otherwise need to be transferred with respect to those bonds sold to finance capital
improvement projects at institutions under the control of the system; provided that, to the extent
that the amount to be transferred is for payment of principal and interest on bonds sold to finance
life safety improvements, the commissioner must not assess the higher education systems for
the transfer.
(b) After each sale of the bonds, the commissioner of finance shall notify the Board of
Trustees of the Minnesota State Colleges and Universities and the regents of the University of
Minnesota of the amounts for which each system is responsible for each year for the life of
the bonds. The amounts payable each year are reduced by one-third of the net income from
investment of those bond proceeds that must be allocated among the systems in proportion to the
amount of principal and interest otherwise required to be paid by each. Each higher education
system shall pay its annual share of debt service payments to the commissioner of finance
by December 1 each year. If a higher education system fails to make a payment when due,
the commissioner of finance shall reduce allotments for appropriations from the general fund
otherwise payable to the system to cover the amount of the missed debt service payment. The
commissioner of finance shall credit the payments received from the higher education systems to
the infrastructure development bond debt service account in the state bond fund each December 1
before the transfer is made under subdivision 4.
    Subd. 6. Appropriation from general fund. There is annually appropriated from the general
fund for transfer to the infrastructure development bond debt service account the amount that,
added to the amount in the infrastructure development bond debt service account on December 1
each year, after giving effect to subdivisions 4 and 5, is equal to the full amount of principal and
interest to come due on all bonds to and including July 1 in the second ensuing year.
    Subd. 7. Constitutional tax levy. Under the Constitution, article XI, section 7, the state
auditor must levy each year on all taxable property within the state a tax sufficient, with the amount
then on hand in the infrastructure development bond debt service account, to pay all principal and
interest on the bonds due and to become due to and including July 1 in the second ensuing year.
The tax is not subject to limit as to rate or amount. However, the amount of money appropriated
from other sources as provided in subdivisions 4, 5, and 6, and actually received and on hand
before the levy in any year, reduces the amount of the tax otherwise required to be levied. The
proceeds of the tax must be credited to the infrastructure development bond debt service account.
    Subd. 8. Application and appropriation of proceeds. The proceeds of the bonds must be
deposited and spent as provided in this subdivision and are appropriated for those purposes. Any
accrued interest and any premium received on the sale of the bonds must be credited to the
infrastructure development bond debt service account. Except as otherwise required by law,
the balance of the bond proceeds shall be credited to the infrastructure development fund and
spent for the purposes specified in the law authorizing the issuance of the bonds. So much of the
proceeds as is necessary must be used to pay costs incurred in issuing and selling the bonds.
History: 1990 c 610 art 1 s 37; 1991 c 233 s 39-41; 1991 c 345 art 1 s 55; 1997 c 183
art 3 s 38
16A.67 MS 1980 [Repealed, 2Sp1981 c 1 s 7]
16A.67 MS 2000 [Repealed, 1Sp2001 c 10 art 2 s 102]
16A.6701 [Repealed, 1Sp2001 c 10 art 2 s 102]
16A.671 CERTIFICATES OF INDEBTEDNESS.
    Subdivision 1. Authority; advisory recommendation. To ensure that cash is available
when needed to pay warrants drawn on the general fund under appropriations and allotments,
the commissioner may (1) issue certificates of indebtedness in anticipation of the collection of
taxes levied for and other revenues appropriated to the general fund for expenditure during each
biennium; and (2) issue additional certificates to refund outstanding certificates and interest on
them, under the Constitution, article XI, section 6.
    Subd. 2. Advisory recommendation. Before certificates are initially sold by any of the
methods authorized in subdivision 6, the commissioner shall seek the advisory recommendation
of the Legislative Advisory Commission, or if there is no commission, the Executive Council, on
(1) the necessity of issuing them, (2) the terms and conditions of the sale, and (3) the maximum
amount to be issued and outstanding under the authorization. If the commission or council
does not make a recommendation promptly, the recommendation is negative. An additional
recommendation is not required for refunding outstanding certificates or for each issuance of
certificates in accordance with an approved line of credit, underwriting, or placement agreement.
    Subd. 3. Definitions. As used in this section, the terms defined in this subdivision have
the meanings given them:
(a) "General fund" means all cash and investments from time to time received and held in the
treasury, except proceeds of state bonds and amounts received and held in special or dedicated
funds created by the Constitution, or by or pursuant to federal laws or regulations, or by bond
or trust instruments, pension contracts, or other agreements of the state or its agencies with
private persons, entered into under state law.
(b) "Maximum current cash flow requirement" means the commissioner's written estimate of
the largest of the amounts by which, on a particular designated date in each month of the term for
which certificates are to be issued, the sum of (1) the warrants then outstanding against the general
fund plus (2) an amount equal to five percent of the actual working capital expenditures from the
general fund in the preceding fiscal year, will exceed the amount of cash or cash equivalent assets
held in the general fund, excluding the proceeds of the certificates to be issued.
    Subd. 4. Limitations of amount. The principal amount of certificates to be issued at any
time must not exceed the lesser of the following:
(1) an amount which, with interest thereon to maturity, added to the then outstanding amount
of certificates not simultaneously paid and retired, will equal the then unexpended balance of all
money which will be credited to the general fund during the current biennium under existing
laws, as estimated by the commissioner; or
(2) the maximum current cash flow requirement.
    Subd. 5. Terms. The commissioner may establish by order with the approval of the attorney
general, but not subject to chapter 14, including section 14.386, the terms of each series of
certificates of indebtedness including:
(1) the manner of sale under subdivision 6;
(2) the price, principal amount, and date of issue;
(3) the interest rate or rates and payment dates, or the basis of computation of a variable rate;
(4) the maturity date or dates, within the current biennium except as provided in subdivision
10;
(5) the terms, if any, of redemption before maturity;
(6) the form and method of execution, delivery, payment, registration, conversion, and
exchange, under section 16A.672.
    Subd. 6. Sale. Certificates of indebtedness may be sold in any of the ways listed in
paragraphs (a) to (e).
(a) The commissioner may advertise for competitive bids.
(b) The commissioner may negotiate contracts with suitable banks in or out of state to
establish lines of credit, for an agreed compensation. The contracts must provide that the
commissioner may issue certificates of indebtedness up to a maximum outstanding amount within
an agreed period, bearing interest at a fixed or variable rate. The certificates must be subject to
redemption at par plus accrued interest at any time at the commissioner's option.
(c) The commissioner may negotiate contracts with firms of underwriters that will purchase
or act as agents in the placement of certificates of indebtedness issued within an agreed period, up
to a maximum amount outstanding. The certificates may be sold to the underwriters or investors
(1) at an agreed discount with the interest included in the face amount payable at maturity, or (2)
bearing interest at a stated interest rate on the face amount, payable on one or more dates. For the
further security of these certificates the commissioner may negotiate agreements for lines of credit
under paragraph (b) to pay the certificates with interest to maturity, if necessary, by the issuance
of new certificates under the lines of credit.
(d) The commissioner may make contracts for agreed fees with suitable banks in or out of
state to authenticate, issue, pay principal and interest on, cancel, and otherwise deal as fiscal
agents of the state with certificates of indebtedness issued under paragraph (a), (b), or (c).
(e) The commissioner may sell certificates of indebtedness to the State Board of Investment
without advertising for bids. The board must determine that the terms are not less favorable than
those available at the time for the purchase of direct obligations of the federal government or its
agencies, of comparable maturities. The board may purchase the certificates with any money
under its control except money in a pension fund.
    Subd. 6a. Fiscal agent bank. The commissioner may enter into an agreement with a suitable
bank or banks located within or outside the state to authenticate, issue, pay principal and interest
on, cancel or otherwise deal with certificates of indebtedness issued pursuant to this section,
for an agreed compensation.
    Subd. 7. Appropriation of proceeds. The proceeds of all certificates of indebtedness must
be deposited in the general fund, and shall be available for spending under any appropriation from
that fund for any purpose, subject to subdivision 9.
    Subd. 8. Appropriation and accounting for payment of certificates and expenses from
the general fund. The amounts needed for the purposes in this subdivision are appropriated
and must be paid from the general fund. These appropriations are irrevocable and shall not be
canceled. They must be included in the computation of current cash flow requirements and of
amounts available for allotment. The purposes of the appropriations are:
(1) payment of the principal of and interest and premium, if any, on all certificates when due;
(2) actual and necessary travel and subsistence expenses of state officers and employees
and other expenses incidental to the sale or placement, printing, execution, and delivery of
certificates; and
(3) costs of lines of credit.
    Subd. 9. Priority of certificate payments; covenants. (a) The proceeds of certificates
of indebtedness issued in whole or in part to refund outstanding certificates and interest as
authorized in the Constitution are available only for that purpose until the refunded certificates
and interest are paid.
(b) The commissioner may covenant by order, on behalf of the state, for the security of the
holders of any certificates, to segregate cash and cash equivalent assets in a special account within
the general fund in the amounts and at the times in advance of the due dates that the commissioner
determines to be advisable for marketing the certificates, and to act under section 16A.152,
subdivision 4
, to perform the covenant. The amount in the account is available only to pay the
principal of and interest and premium, if any, on the certificates referred to in the order.
    Subd. 10. Covenant to refund. If cash and cash equivalent assets in the general fund
in excess of the amount of outstanding warrants is not sufficient to pay any certificates of
indebtedness or interest when due, the commissioner may issue refunding certificates maturing
not later than December 1 in the next calendar year to pay the deficiency. With the approval of
the governor, the commissioner may covenant on behalf of the state, in the order issuing any
certificates, to offer refunding certificates for sale if a deficiency is expected.
    Subd. 11. Constitutional tax levy. If cash and cash equivalent assets in the general fund
in excess of the amount of outstanding warrants, on December 1 immediately following the
close of a biennium, is not sufficient to pay:
(1) all refunding certificates of indebtedness;
(2) all other certificates outstanding at the end of the biennium and not refunded; and
(3) all interest accrued on the certificates referred to in clauses (1) and (2);
the state auditor shall levy upon all taxable property in the state the tax required by the
Constitution, article XI, section 6, collectible in the next calendar year and sufficient to pay all
amounts described in clauses (1), (2), and (3) on or before December 1 in the collection year
with interest to the date or dates of payment.
History: 2Sp1981 c 1 s 5; 3Sp1981 c 2 art 7 s 2-5; 1982 c 424 s 130; 1982 c 639 s 28;
1Sp1982 c 3 s 2,3; 1984 c 597 s 37; 1984 c 628 art 2 s 1; art 6 s 1; 1993 c 192 s 111; 1997 c
187 art 4 s 2; 2000 c 492 art 1 s 33,34; 2005 c 20 art 1 s 30
16A.672 BONDS AND CERTIFICATES OF INDEBTEDNESS.
    Subdivision 1. Authority. The commissioner may issue, execute, deliver, register, and pay
bonds and certificates of indebtedness in the form and manner provided in this section, when
authorized under section 16A.641 or 16A.671.
    Subd. 2. Application of commercial code. All bonds and certificates are securities under
sections 336.8-101 to 336.8-603. The commissioner may do for the state whatever may or
must be done under those sections to comply with the orders authorizing them. The bonds or
certificates may be issued:
(1) in one or more denominations;
(2) in bearer form, with interest coupons attached; and
(3) with provision for registration as to principal only; or
(4) in fully registered form; and
(5) with provision for registration of conversion and exchange of forms and denominations,
transfer of ownership, and replacement of lost or damaged bonds.
    Subd. 3. Preparation and execution. (a) Bonds and certificates of indebtedness may be
printed or otherwise reproduced in the style and form the commissioner prescribes. They may
state in a general way the purpose for which they are issued and the security provided for their
payment or may incorporate the authorizing order by reference.
(b) They must be executed by the commissioner under the commissioner's official seal. The
signature may be a reproduced facsimile, but no bond or certificate is valid for any purpose unless
it is manually signed on its face by the commissioner or by a duly authorized representative of a
bank or trust company named by the commissioner as an agent of the state to authenticate it.
    Subd. 4. Delivery. The commissioner may name a bank or trust company in or out of the
state to act as the state's agent to deliver bonds or certificates to the initial purchaser upon
payment of the purchase price.
    Subd. 5. Registrar. The commissioner, in order to issue any bonds or certificates, may name
a registrar to act for the state under sections 336.8-101 to 336.8-603, and to authenticate and
deliver obligations upon initial issuance and registration of transfer, exchange, or conversion. The
registrar must be an incorporated bank or trust company, in or out of the state, authorized by the
laws of the United States or the state in which it is located to perform these duties.
    Subd. 6. Payment. The order authorizing bonds or certificates to be issued may contain
provisions that the commissioner considers necessary to ensure full and prompt payment of
principal and interest when due. The order may provide for payment at the office of a bank or
trust company in or out of the state. The order may provide that interest due on any interest
payment date is payable to the person or entity shown as the owner of the bond or certificate in
the register on a specified date preceding the interest payment date, by check, draft, or other
transfer to the order of that owner.
    Subd. 7. Agreements. The commissioner may make agreements to carry out orders issued
under this section. The agreements may provide for the paying for services performed and
expenses incurred on behalf of the state, from:
(1) proceeds of the bonds or certificates;
(2) other money appropriated to the commissioner;
(3) charges to holders of the bonds or certificates; or
(4) a combination of sources in clauses (1), (2), and (3).
    Subd. 8. Bond proceeds; appropriation. The proceeds of the bonds or certificates under
subdivision 7 are appropriated as necessary to pay expenses incurred under that subdivision.
    Subd. 9. General fund; appropriation. The money needed to pay when due the
compensation and expenses of registrars, delivery agents, and paying agents, and the expenses
of other agreements under subdivision 7 is appropriated annually to the commissioner from
the general fund.
    Subd. 9a. Taxability; certification. Certificates may be issued with or without regard to
whether the interest to be paid on them is includable in gross income for federal tax purposes.
If it is intended that the interest on the certificates be exempt from federal income taxes, the
commissioner shall certify for the state on the date of issue the facts, estimates, and circumstances
that lead the commissioner reasonably to expect that the proceeds of the certificates will not be
used in a way that would cause the interest on the certificates to be subject to federal income
taxes. The commissioner may covenant with the holders of the certificates that the state will
comply with the provisions of the United States Internal Revenue Code then or later enacted that
apply or may apply to the certificates and that establish conditions under which the interest to
be paid on the certificates will not be subject to federal income taxes. The commissioner and all
other state officers shall act or refrain from acting as necessary to comply with the covenants.
A sum sufficient to meet the cost of compliance is annually appropriated to the commissioner
from the general fund.
    Subd. 10. Approval by attorney general. An agreement under subdivision 7 is not effective
until approved as to form and execution by the attorney general or a designee.
    Subd. 11. Registration not public information. Information in any register of ownership
of bonds or certificates is nonpublic data under section 13.02, subdivision 9, or private data on
individuals under section 13.02, subdivision 12. The information is open only to the subject
of it, except as disclosure:
(1) is necessary for the registrar, the commissioner, or the legislative auditor to perform
a duty; or
(2) is requested by an authorized representative of the state commissioner of revenue, the
state attorney general, or the United States commissioner of internal revenue to determine the
application of a tax; or
(3) is required under section 13.03, subdivision 4.
    Subd. 12. Exchange listing. The commissioner may provide for listing of any bonds or
certificates of indebtedness on an exchange or similar arrangement to facilitate their sale and
exchange in the secondary market.
    Subd. 13. Continuing disclosure agreements. The commissioner and any other officer of
a state department or state agency charged with the responsibility of issuing bonds for or on
behalf of the state department or agency, may enter into written agreements or contracts relating
to the continuing disclosure of information necessary to comply with, or facilitate the issuance
of bonds in accordance with, federal securities laws, rules, and regulations, including securities
and exchange commission rules and regulations, section 240.15c2-12. An agreement may be in
the form of covenants with purchasers and holders of bonds set forth in the order or resolution
authorizing the issuance of the bonds, or a separate document authorized by the order or resolution.
History: 1983 c 301 s 99; 1984 c 597 s 38; 1984 c 628 art 2 s 1; art 6 s 1; 1Sp1985 c 13 s
113-115; 1986 c 444; 1990 c 610 art 1 s 39; 1991 c 345 art 1 s 56; 1Sp1995 c 2 art 1 s 17,18;
1997 c 7 art 1 s 5,6; 2003 c 112 art 2 s 50
16A.673 CERTIFICATES OF INDEBTEDNESS ISSUED BY STATE, NEGOTIABILITY.
Certificates of indebtedness and interest coupons appurtenant thereto, heretofore or hereafter
issued by the state of Minnesota in anticipation of the collection of taxes and payable as to
principal and interest exclusively from the proceeds of such taxes, shall be negotiable instruments
within the meaning and for all purposes of the Uniform Commercial Code, notwithstanding that
they may be payable from a particular fund.
History: 1959 c 1 s 1; 1965 c 812 s 27
16A.675 PERSONS EXECUTING OBLIGATIONS NOT LIABLE.
No officer or other person executing state bonds or certificates is liable personally on them or
accountable by reason of issuing them.
History: 1977 c 410 s 7; 1984 c 597 s 39; 1984 c 628 art 2 s 1; art 6 s 1
16A.68 FEDERAL FUNDS TO THE GAME AND FISH ACCOUNT.
    Subdivision 1. Pittman-Robertson Act funds. Federal aid reimbursements for the
Pittman-Robertson account shall be deposited to the credit of the game and fish receipts account
in the treasury.
    Subd. 2. Dingell-Johnson Act funds. Federal aid reimbursements for the Dingell-Johnson
account shall be deposited to the credit of the game and fish receipts account in the treasury.
History: Ex1967 c 48 s 74; 1984 c 628 art 2 s 1
16A.69 APPROPRIATIONS INTO SINGLE PROJECT ACCOUNT.
    Subdivision 1. Appropriations into single project account. The commissioner shall place
the money from two or more appropriations for the same or related projects in one account if
all the appropriations do not lapse until their purposes are accomplished or abandoned. The
agency to whom the appropriation was made shall first certify which accounts are involved
to the commissioner.
    Subd. 2. Transfer between accounts. Upon the awarding of final contracts for the
completion of a project for construction or other permanent improvement, or upon the
abandonment of the project, the agency to whom the appropriation was made may transfer the
unencumbered balance in the project account to another project enumerated in the same section of
that appropriation act, or may transfer unencumbered balances from agency operating funds. The
transfer must be made only to cover bids for the other project that were higher than was estimated
when the appropriation for the other project was made and not to cover an expansion of the other
project. The money transferred under this section is appropriated for the purposes for which
transferred. For transfers for technical colleges by the Board of Trustees of the Minnesota State
Colleges and Universities, the total cost of both projects and the required local share for both
projects are adjusted accordingly. The agency proposing a transfer shall obtain approval from the
commissioner of finance and the chair of the senate Finance Committee and the chair of the house
of representatives Ways and Means Committee before the transfer is made under this subdivision.
    Subd. 3. Capitol Area planning. The department shall set aside from a state appropriation
available for that purpose funds for the planning and consulting services of the Capitol Area
Architectural and Planning Board when a state agency or the Minnesota Historical Society plans
and constructs any capital improvement in the Capitol Area as defined in section 15B.02.
History: 1969 c 1155 s 11; 1973 c 492 s 14; 1984 c 628 art 2 s 1; 1989 c 300 art 1 s 24;
1990 c 375 s 3; 1990 c 610 art 1 s 40; 1991 c 345 art 1 s 57; 1993 c 4 s 10; 1993 c 192 s 68; 1997
c 183 art 3 s 1; 1999 c 240 art 1 s 15; 2003 c 17 s 2
16A.695 PROPERTY PURCHASED WITH STATE BOND PROCEEDS.
    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
(b) "State bond financed property" means property acquired or bettered in whole or in part
with the proceeds of state general obligation bonds authorized to be issued under article XI,
section 5, clause (a), of the Minnesota Constitution.
(c) "Public officer or agency" means a state officer or agency, the University of Minnesota,
the Minnesota Historical Society, and any county, home rule charter or statutory city, school
district, special purpose district, or other public entity, or any officer or employee thereof.
(d) "Fair market value" means, with respect to the sale of state bond financed property,
the price that would be paid by a willing and qualified buyer to a willing and qualified seller
as determined by an appraisal of the property, or the price bid by a purchaser under a public
bid procedure after reasonable public notice.
(e) "Outstanding state bonds" means the dollar amount certified by the commissioner, upon
the request of a public officer or agency, to be the principal amount of state bonds, including any
refunding bonds, issued with respect to the state bond financed property, less the principal amount
of state bonds paid or defeased before the date of the request.
    Subd. 2. Leases and management contracts. (a) A public officer or agency that is
authorized by law to lease or enter into a management contract with respect to state bond financed
property shall comply with this subdivision. A reference to a lease or management contract in
this subdivision includes any amendments, modifications, or alterations to the referenced lease or
management contract and refers to the lease wherein the public officer or agency is the lessor of
the state bond financed property and the other contracting party is the lessee.
    (b) The lease or management contract may be entered into for the express purpose of
carrying out a governmental program established or authorized by law and established by official
action of the contracting public officer or agency, in accordance with orders of the commissioner
intended to ensure the legality and tax-exempt status of bonds issued to finance the property, and
with the approval of the commissioner. A lease or management contract must be for a term
substantially less than the useful life of the property, but may allow renewal beyond that term
upon a determination by the lessor that the lessee has demonstrated that the use continues to carry
out the governmental program. If the lessor and lessee do not renew the lease or management
contract and if the lessee has contributed to the land and the capital improvements on the state
bond financed property, the lessor may agree to reimburse the lessee for its investment in the land
and capital improvements. The reimbursement may be paid, at the option of the lessor and lessee,
at the time of nonrenewal without a requirement for a prior escrow of funds or at a later date and
on additional terms agreed to by the lessor and the lessee. A lease or management contract must
be terminable by the contracting public officer or agency if the other contracting party defaults
under the contract or if the governmental program is terminated or changed, and must provide for
program oversight by the contracting public officer or agency. The expiration or termination of a
lease or management agreement does not require that the state bond proceeds be repaid or that the
property be sold, so long as the property continues to be operated by, or on behalf of, the public
officer or agency for the intended governmental program. Money received by the public officer or
agency under the lease or management contract that is not needed to pay and not authorized to be
used to pay operating costs of the property, or to pay the principal, interest, redemption premiums,
and other expenses when due on debt related to the property other than state bonds, must be:
    (1) paid to the commissioner in the same proportion as the state bond financing is to the
total public debt financing for the property, excluding debt issued by a unit of government for
which it has no financial liability;
    (2) deposited in the state bond fund; and
    (3) used to pay or redeem or defease bonds issued to finance the property in accordance with
the commissioner's order authorizing their issuance.
    The money paid to the commissioner is appropriated for this purpose.
    (c) With the approval of the commissioner, a lease or management contract between a city
and a nonprofit corporation under section 471.191, subdivision 1, need not require the lessee to
pay rentals sufficient to pay the principal, interest, redemption premiums, and other expenses
when due with respect to state bonds issued to acquire and better the facilities.
    Subd. 3. Sale of property. A public officer or agency shall not sell any state bond financed
property unless the public officer or agency determines by official action that the property is no
longer usable or needed by the public officer or agency to carry out the governmental program
for which it was acquired or constructed, the sale is made as authorized by law, the sale is made
for fair market value, and the sale is approved by the commissioner. If any state bonds issued to
purchase or better the state bond financed property that is sold remain outstanding on the date of
sale, the net proceeds of sale must be applied as follows:
    (1) if the state bond financed property was acquired and bettered solely with state bond
proceeds, the net proceeds of sale must be paid to the commissioner and deposited in the state
treasury; or
    (2) if the state bond financed property was acquired or bettered partly with state bond
proceeds and partly with other money, the net proceeds of sale must be used: first, to pay to the
state the amount of state bond proceeds used to acquire or better the property; second, to pay in
full any outstanding public or private debt incurred to acquire or better the property; third, to pay
interested public and private entities, other than any public officer or agency or any private lender
already paid in full, the amount of money contributed to the acquisition or betterment of the
property; and fourth, any excess over the amount needed for those purposes must be divided in
proportion to the shares contributed to the acquisition or betterment of the property and paid to
the interested public and private entities, other than any private lender already paid in full, and the
proceeds are appropriated for this purpose. In calculating the share contributed by each entity, the
amount to be attributed to the owner of the property shall be the fair market value of the property
that was bettered by state bond proceeds at the time the betterment began.
    When all of the net proceeds of sale have been applied as provided in this subdivision,
this section no longer applies to the property.
    Subd. 3a. Involuntary sale of property. Notwithstanding subdivision 3, this subdivision
applies to the sale of state bond financed property by a lender that has provided money to acquire
or better the property. Purchase by the lender in a foreclosure sale, acceptance of a deed in lieu
of foreclosure, or enforcement of a security interest in personal property, by the lender, is not
a sale. Following purchase by the lender, the lender shall not operate the property in a manner
inconsistent with the governmental program established as provided in subdivision 2, paragraph
(b). The lender shall exercise its best efforts to sell the property to a third party as soon as feasible
following acquisition of marketable title to the property by the lender. A sale by the lender must
be made as authorized by law and must be made for fair market value.
    Subd. 4. Relation to other laws. This section applies to all state bond financed property
unless otherwise provided by law.
    Subd. 5. Program funding. Recipients of grants from money appropriated from the bond
proceeds fund must demonstrate to the commissioner of the agency making the grant that the
recipient has the ability and a plan to fund the program intended for the facility. A private nonprofit
organization that leases or manages a facility acquired or bettered with grant money appropriated
from the bond proceeds fund must demonstrate to the commissioner of the agency making the
grant that the organization has the ability and a plan to fund the program intended for the facility.
    Subd. 6. Match requirements. Recipients of grants from money appropriated from the bond
proceeds fund may be required to demonstrate a commitment of money from nonstate sources.
This matching money may be pledged payments that have been deposited into a segregated
account or multiyear pledges that are converted into cash or cash equivalent through a loan or
irrevocable letter of credit from a financial institution. The loan or irrevocable letter of credit may
be secured by a lien on the state bond financed property.
    Subd. 7. Ground lease for state bond financed property. A public officer or agency, as
lessee, may lease real property and improvements that are to be acquired or improved with state
bond proceeds. The lease must be for a term equal to or longer than 125 percent of the useful life
of the property. The expiration of the lease upon the end of its term does not require that the state
be repaid or that the property be sold and upon the expiration the real property and improvements
are no longer state bond financed property.
    Subd. 8. General applicability. (a) This section establishes requirements for the receipt and
use of general obligation grants and the ownership and operation of state bond-financed property.
General obligation grants may only be issued and used to finance the acquisition and betterment
of public lands and buildings and other public improvements of a capital nature that are used to
operate a governmental program, and for predesign and design activities for specifically identified
projects that involve the operation of a governmental program or activity. A general obligation
grant may not be used for general operating expenses, staffing, or general master planning. A
public officer or agency that is the recipient of a general obligation grant must comply with this
section in its use of the general obligation grant and operation, management, lease, and sale of
state bond-financed property. A public officer or agency that uses the proceeds of a general
obligation grant for any unauthorized purpose or in violation of this section must immediately
repay the outstanding balance of the grant to the commissioner, and a failure to comply authorizes
the commissioner to recover the outstanding balance as a setoff against any state aid provided to
the public officer or agency.
    (b) This section does not create any new authority regarding the ownership, construction,
rehabilitation, use, operation, lease management, or sale of state bond-financed property, or the
operation of the governmental program that will be operated on the property. Any authority that is
needed to enter into a management contract or lease of property, to sell property, or to operate a
governmental program or carry out any activity contained in the law that appropriates money for a
general obligation grant must be provided by as contained in some other law.
    Subd. 9. Grant agreement. All general obligation grants must be evidenced by a grant
agreement that specifies:
    (1) how the general obligation grant will be used;
    (2) the governmental program that will be operated on the state bond-financed property; and
    (3) that the state bond-financed property must be operated in compliance with this section,
all state and federal laws, and in a manner that will not cause the interest on the state general
obligation bonds to be or become subject to federal income taxation for any reason. A grant
agreement must comply with this section, the Minnesota Constitution, and all commissioner's
orders, and also contain other provisions the commissioner of the agency making the grant deems
appropriate. The commissioner shall draft and make available forms for grant agreements that
satisfy the requirements of this subdivision.
History: 1994 c 643 s 36; 1Sp1995 c 2 art 1 s 19-22; 1996 c 463 s 32; 2004 c 278 s 1; 2007
c 148 art 2 s 14-19
16A.70 [Repealed, 1994 c 416 art 1 s 65]
16A.71 [Repealed, 1994 c 416 art 1 s 65]
16A.711    Subdivision 1.[Repealed, 1994 c 587 art 3 s 21]
    Subd. 2.[Repealed, 1994 c 587 art 3 s 21]
    Subd. 3.[Repealed, 1992 c 511 art 1 s 26; 1994 c 587 art 3 s 21]
    Subd. 4.[Repealed, 1994 c 587 art 3 s 21]
    Subd. 5.[Repealed, 1994 c 587 art 3 s 21]
16A.712 [Repealed, 1994 c 587 art 3 s 21]
16A.72 INCOME CREDITED TO GENERAL FUND; EXCEPTIONS.
    All income, including fees or receipts of any nature, shall be credited to the general fund,
except:
    (1) federal aid;
    (2) contributions, or reimbursements received for any account of any division or department
for which an appropriation is made by law;
    (3) income to the University of Minnesota;
    (4) income to revolving funds now established in institutions under the control of the
commissioners of corrections or human services;
    (5) investment earnings resulting from the master lease program, except that the amount
credited to another fund or account may not exceed the amount of the additional expense incurred
by that fund or account through participation in the master lease program;
    (6) investment earnings resulting from any gift, donation, devise, endowment, trust, or court
ordered or approved escrow account or trust fund, which should be credited to the fund or account
and appropriated for the purpose for which it was received;
    (7) receipts from the operation of patients' and inmates' stores and patients' vending
machines, which shall be deposited in the social welfare fund, or in the case of prison industries in
the correctional revolving fund, in each institution for the benefit of the patients and inmates;
    (8) income to prison industries which shall be credited to the correctional industries
revolving fund;
    (9) as provided in sections 16B.57 and 85.22;
    (10) income to the Minnesota Historical Society;
    (11) the percent of income collected by a private collection agency and retained by the
collection agency as its collection fee; or
    (12) as otherwise provided by law.
History: Ex1971 c 3 s 54; 1976 c 163 s 3; 1979 c 102 s 13; 1984 c 544 s 89; 1984 c 628 art
2 s 1; 1984 c 654 art 5 s 58; 1Sp1986 c 3 art 4 s 1; 1993 c 192 s 69; 1993 c 369 s 40; 1995 c 254
art 5 s 2; 1998 c 366 s 25; 2007 c 54 art 6 s 1
16A.721 STATE SEMINAR FEES, APPROPRIATION.
    Subdivision 1. Account, rules. The commissioner may make rules for charging fees for
seminars and workshops conducted by agencies. The commissioner may keep accounts for deposit
of the seminar and workshop fee receipts. The commissioner may allow the unobligated balances
in these accounts to be carried forward provided that the funds are expended in the following
fiscal year. Unobligated balances that are not carried forward shall cancel to the general fund.
    Subd. 2. Appropriation. The receipts collected under subdivision 1 are appropriated for
payment of expenses relating to the workshops and seminars.
History: 1978 c 793 s 52; 1980 c 614 s 59; 1984 c 628 art 2 s 1; 1991 c 345 art 1 s 58
16A.722 LOSS OR DAMAGE TO STATE PROPERTY.
Notwithstanding any other law to the contrary, an agency that receives a reimbursement for
the loss of or damage to state property may deposit the reimbursement in the current year's
account. The reimbursement is reappropriated for the purpose of replacing or repairing the state
property.
History: 1984 c 544 s 5
16A.723 GOVERNOR'S RESIDENCE; REIMBURSEMENT OF EXPENSES.
    Subdivision 1. Account procedures. The commissioner may establish procedures to accept
funds for reimbursement of expenditures at the governor's residence.
    Subd. 2. Appropriation. The reimbursements collected under subdivision 1 are appropriated
for payment of residence expenses, including dry cleaning, carpet cleaning, and the repair and
replacement of household equipment and supplies used for events conducted at the governor's
residence.
History: 1991 c 345 art 1 s 59; 1992 c 513 art 4 s 31
16A.724 HEALTH CARE ACCESS FUND.
    Subdivision 1. Creation of fund. A health care access fund is created in the state treasury.
The fund is a direct appropriated special revenue fund. The commissioner shall deposit to the
credit of the fund money made available to the fund. Notwithstanding section 11A.20, after June
30, 1997, all investment income and all investment losses attributable to the investment of the
health care access fund not currently needed shall be credited to the health care access fund.
    Subd. 2. Transfers. (a) Notwithstanding section 295.581, to the extent available resources in
the health care access fund exceed expenditures in that fund, effective for the biennium beginning
July 1, 2007, the commissioner of finance shall transfer the excess funds from the health care
access fund to the general fund on June 30 of each year, provided that the amount transferred
in any fiscal biennium shall not exceed $96,000,000. The purpose of this transfer is to meet the
rate increase required under Laws 2003, First Special Session chapter 14, article 13C, section 2,
subdivision 6.
    (b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and, if
necessary, the commissioner shall reduce these transfers from the health care access fund to the
general fund to meet annual MinnesotaCare expenditures or, if necessary, transfer sufficient funds
from the general fund to the health care access fund to meet annual MinnesotaCare expenditures.
    Subd. 3. MinnesotaCare federal receipts. Receipts received as a result of federal
participation pertaining to administrative costs of the Minnesota health care reform waiver shall
be deposited as nondedicated revenue in the health care access fund. Receipts received as a result
of federal participation pertaining to grants shall be deposited in the federal fund and shall offset
health care access funds for payments to providers.
    Subd. 4. MinnesotaCare funding. The commissioner of human services may expend money
appropriated from the health care access fund for MinnesotaCare in either year of the biennium.
History: 1992 c 549 art 9 s 1; 1995 c 234 art 9 s 1; 1Sp2005 c 4 art 8 s 1; 2007 c 147
art 4 s 1; art 5 s 1; art 19 s 11,12
16A.725 HEALTH IMPACT FUND AND FUND REIMBURSEMENTS.
    Subdivision 1. Health impact fund. There is created in the state treasury a health impact
fund to which must be credited all revenue from the health impact fee under section 256.9658 and
any floor stocks fee enacted into law.
    Subd. 2. Certified tobacco expenditures. By April 30 of each year, the commissioner of
human services shall certify to the commissioner of finance the state share, by fund, of tobacco use
attributable costs for the previous fiscal year in Minnesota health care programs, including medical
assistance, general assistance medical care, and MinnesotaCare, or other applicable expenditures.
    Subd. 3. Fund reimbursements. (a) Each fiscal year, the commissioner of finance shall
first transfer from the health impact fund to the general fund an amount sufficient to offset the
general fund cost of the certified expenditures under subdivision 2 or the balance of the fund,
whichever is less.
(b) If any balance remains in the health impact fund after the transfer in paragraph (a),
the commissioner of finance shall transfer to the health care access fund the amount sufficient
to offset the health care access fund cost of the certified expenditures in subdivision 2, or the
balance of the fund, whichever is less.
History: 1Sp2005 c 4 art 4 s 1
16A.73 [Repealed, 1984 c 654 art 2 s 155]
16A.75 [Repealed, 1981 c 356 s 377]
16A.751 [Repealed, 1981 c 356 s 377]
16A.752 [Repealed, 1981 c 356 s 377]
16A.753 [Repealed, 1981 c 356 s 377]
16A.754 [Repealed, 1981 c 356 s 377]
16A.76 [Repealed, 1Sp2001 c 5 art 14 s 9]
16A.79 MATCHING FEDERAL APPROPRIATIONS.
Specific appropriations that are made to match federal appropriations shall be considered
change requests in the following biennial budget submission if, during the biennium, the federal
funding has been reduced or eliminated.
History: 1990 c 594 art 1 s 45
16A.80 [Repealed, 1993 c 192 s 110]
16A.85 MASTER LEASE.
    Subdivision 1. Authorization. The commissioner of administration may determine, in
conjunction with the commissioner of finance, the personal property needs of the various state
departments, agencies, boards, commissions and the legislature that may be economically funded
through a master lease program and request the commissioner of finance to execute a master lease.
The commissioner of finance may authorize the sale and issuance of certificates of
participation relative to a master lease in an amount sufficient to fund these personal property
needs. The term of the certificates must be less than the expected useful life of the equipment
whose purchase is financed by the certificates. The commissioner of administration may use the
proceeds from the master lease or the sale of the certificates of participation to acquire the personal
property through the appropriate procurement procedure in chapter 16C. Money appropriated
for the lease or acquisition of this personal property is appropriated to the commissioner of
finance to make master lease payments.
    Subd. 2. Covenants. The commissioner of finance may covenant in a master lease that the
state will abide by the terms and provisions that are customary in net lease or lease-purchase
transactions including, but not limited to, covenants providing that the state:
(1) will maintain insurance as required under the terms of the lease agreement;
(2) is responsible to the lessor for any public liability or property damage claims or costs
related to the selection, use, or maintenance of the leased equipment, to the extent of insurance or
self-insurance maintained by the lessee, and for costs and expenses incurred by the lessor as a
result of any default by the lessee;
(3) authorizes the lessor to exercise the rights of a secured party with respect to the equipment
subject to the lease in the event of default by the lessee and, in addition, for the present recovery
of lease rentals due during the current term of the lease as liquidated damages.
    Subd. 3. Master leases not debt. The commissioner of finance may not enter into a master
lease unless the commissioner of finance has conducted a demand survey of the amount of
projected rentals and determines that money has been appropriated and allotted for the payment
of the maximum amount of rentals that are projected to be payable from state money and that
are projected to be due or to become due during the appropriation period in which the lease
contract is entered into. A master lease does not constitute or create a general or moral obligation
or indebtedness of the state in excess of the money from time to time appropriated or otherwise
available for the payment of rent coming due under the lease, and the state has no continuing
obligation to appropriate money for the payment of rent or other obligations under the lease. Rent
due under a master lease during a current lease term for which money has been appropriated is a
current expense of the state.
    Subd. 4. Tax exemption. Property subject to a master lease is not subject to personal
property taxes. Property purchased by a lessor for lease to the state under a valid master lease and
rent due under the lease are not subject to sales tax.
    Subd. 5. Investment income. The net income from investment of the proceeds of the
certificates of participation, as estimated by the commissioner of finance, must be credited to the
fund whose assets will be used to pay off the certificates of participation.
    Subd. 6. Budget offset. The commissioner of finance shall reduce the operating budgets of
state agencies that use the master lease program. The amount of the reduction is the difference
between the budgeted purchase price of the equipment and the actual master lease payments.
History: 1Sp1985 c 13 s 116; 1987 c 404 s 78; 1989 c 271 s 7,8; 1990 c 506 art 2 s 8; 1994
c 643 s 38; 1998 c 386 art 2 s 13; 1999 c 250 art 1 s 52
16A.86 CAPITAL PROJECT GRANTS TO POLITICAL SUBDIVISIONS.
    Subdivision 1. Projects covered. The capital improvement projects covered by this section
are only those not covered by another state program of assistance to political subdivisions.
    Subd. 2. Budget request. A political subdivision that requests an appropriation of state
money for a local capital improvement project is encouraged to submit the request to the
commissioner of finance by July 15 of an odd-numbered year to ensure its full consideration. The
requests must be submitted in the form and with the supporting documentation required by the
commissioner of finance. All requests timely received by the commissioner must be forwarded
to the legislature, along with agency requests, by the deadline established in section 16A.11,
subdivision 1
.
    Subd. 3. Evaluation. (a) The commissioner shall evaluate all requests from political
subdivisions for state assistance based on the following criteria:
(1) the political subdivision has provided for local, private, and user financing for the project
to the maximum extent possible;
(2) the project helps fulfill an important state mission;
(3) the project is of regional or statewide significance;
(4) the project will not require new or any additional state operating subsidies;
(5) the project will not expand the state's role in a new policy area;
(6) state funding for the project will not create significant inequities among local jurisdictions;
(7) the project will not compete with other facilities in such a manner that they lose a
significant number of users to the new project;
(8) the governing bodies of those political subdivisions primarily benefiting from the project
have passed resolutions in support of the project and have established priorities for all projects
within their jurisdictions for which bonding appropriations are requested when submitting
multiple requests; and
(9) if a predesign that meets the requirements of section 16B.335 has been completed and is
available at the time the project request is submitted to the commissioner of finance, the applicant
has submitted the project predesign to the commissioner of administration.
(b) The commissioner's evaluation of each request, including whether it meets each of
the criteria in paragraph (a), must be submitted to the legislature along with the governor's
recommendations under section 16A.11, subdivision 1, whether or not the governor recommends
that the request be funded.
    Subd. 4. Funding. (a) The state share of a project covered by this section must be no more
than half the total cost of the project, including predesign, design, construction, furnishings, and
equipment, except as provided in paragraph (b). This subdivision does not apply to a project
proposed by a school district or other school organization.
(b) The state share may be more than half the total cost of a project if the project is deemed
needed as a result of a disaster or to prevent a disaster or is located in a political subdivision with
a very low average net tax capacity.
(c) Nothing in this section prevents the governor from recommending, or the legislature from
considering or funding, projects that do not meet the deadline in subdivision 2 or the criteria in
this subdivision or subdivision 3 when the governor or the legislature determines that there is a
compelling reason for the recommendation or funding.
History: 1999 c 192 s 1; 2002 c 393 s 35; 2006 c 258 s 28,29
16A.87 [Repealed, 1Sp2003 c 1 art 2 s 136]
16A.88 TRANSIT ASSISTANCE FUND.
    Subdivision 1. Transit assistance fund established. A transit assistance fund is established
within the state treasury. The fund receives money distributed under section 297B.09, subdivision
1
, and other money as specified by law. Money in the fund must be allocated to the greater
Minnesota transit account under subdivision 1a and the metropolitan area transit account under
subdivision 2 in the manner specified in section 297B.09, subdivision 1, and must be used solely
for transit purposes under the Minnesota Constitution, article XIV, section 13.
    Subd. 1a. Greater Minnesota transit account. The greater Minnesota transit account
is established within the transit assistance fund in the state treasury. Money in the account is
annually appropriated to the commissioner of transportation for assistance to transit systems
outside the metropolitan area under section 174.24. The commissioner may use up to $408,000 in
fiscal year 2008 and $416,000 in fiscal year 2009 and thereafter for administration of the transit
program. The commissioner shall use the account for transit operations as provided in section
174.24 and related program administration.
    Subd. 2. Metropolitan area transit account. The metropolitan area transit account is
established within the transit assistance fund in the state treasury. All money in the account is
annually appropriated to the Metropolitan Council for the funding of transit systems within the
metropolitan area under sections 473.384, 473.386, 473.387, 473.388, and 473.405 to 473.449.
    Subd. 3. [Repealed by amendment, 2007 c 143 art 2 s 1]
History: 1Sp2001 c 5 art 3 s 2; 2002 c 220 art 7 s 7; 1Sp2003 c 19 art 2 s 2; 2007 c 143 art
2 s 1

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