Section 1 [Definitions] adds the Legislative Budget Office, established in Section 2, to the list of joint offices under the Legislative Coordinating Commission (LCC). A joint office, under Minnesota Statutes, section 3.305, functions in the following ways:
(1) its budget is reviewed and approved by the LCC;
(2) compensation for its employees is recommended by the executive director of the LCC and approved by the LCC; and
(3) its employees serve in the unclassified service.
Section 2 [Legislative Budget Office] establishes a Legislative Budget Office under the control of the Legislative Coordinating Commission to provide the senate and the house of representatives with nonpartisan, accurate, and timely information on the fiscal impact of proposed legislation, without regard to political factors. Requires the LCC to appoint a director who may hire staff. Sets the director's term at six years and specifies that the director may not be removed during a term except for cause after a public hearing.
Section 3 [Preparation] moves the statutory duty to prepare fiscal notes from departments and agencies to the Legislative Budget Office. Requires agencies to supply information to the Legislative Budget Office for fiscal notes on request. Permits the Legislative Budget Office to adopt standards and guidelines governing timing of responses to requests for information and governing access to data, and requires agencies to comply with the standards and guidelines.
Section 4 [Uniform Procedure] moves the requirement to prescribe a uniform procedure for agencies’ contribution to preparation of fiscal notes from the agency heads to the Legislative Budget Office.
Section 5 [Local impact notes] moves the duty to prepare local impact notes from the Commissioner of Management and Budget to the Legislative Budget Office.
Sec. 6 [Performance-Based Budgeting] requires departments, institutions, and agencies to prepare a performance-based budget n each biennium. Requires the Legislative Budget Office (LBO), established in section 2 of the bill, to provide technical assistance to the agencies. Authorizes the LBO to adopt rules to instruct and guide agencies. Defines “performance-based budgeting” and describes information to be included in a performance-based budget plan.
Section 7 [Appropriation] appropriates money from the general fund to the Legislative Budget Office.
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