2001 Minnesota Statutes

     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 submitted a spending plan 
 to the commissioner on the commissioner's form with the amount 
 required for each activity and each purpose for which money is 
 to be spent.  The spending plan must also be approved or 
 modified by the commissioner and funds allotted for the plan 
 before the money is made available. 

    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. 

    HIST: 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