The A-3 Delete-Everything Amendment to SF 3658 makes changes to the enabling statute for the Legislative Budget Office (LBO).  This amendment does the following:

• Creates a Legislative Budget Office Oversight Commission and makes the executive director of the LBO the executive secretary of the Oversight Commission.  This arrangement is analogous to the relationship between the Legislative Audit Commission and the Legislative Auditor. Eliminates the role of oversight for the Legislative Coordinating Commission.
• Moves the operational start date for the LBO to January 6, 2020; sets July 1, 2018, as the effective date for certain portions of the LBO enabling statute to permit the LBO to prepare for its responsibility.
• Makes agency heads responsible for preparing fiscal notes, in consultation with the LBO, and consistent with standards set by the LBO.
• Provides a transition time from July 1, 2018, to January 6, 2020, for the LBO to become fully responsible for generating fiscal notes and local impact notes.  During the transition time, management and budget's responsibilities for fiscal nots will remain in place, and the LBO will generate a sampe of fiscal notes on a test basis.  The LBO will have a partial staff for the 2019 legislative session and will be fully staffed for the 2020 legislative session.

Section 1 [Establishment; Duties] eliminates the Legislative Coordinating Commission’s oversight role for the Legislative Budget Office.

Section 2 [Oversight Commission] creates a Legislative Budget Office Oversight Commission, having eight legislators as members, with equal representation from the house and senate and from the majority and minority. Provides details about the operation of the commission. This section is effective the day after enactment. Appointments to the Oversight Commission must be made by June 15, 2018, and the first meeting must be convened by July 1, 2018, by a member designated by the chair of the Legislative Coordinating Commission.  This section is effective the day following final enactment.

Section 3 [Staff] changes the entity that appoints the director of the LBO from the Legislative Coordinating Commission to the Legislative Budget Office Oversight Commission. Specifies that the director serves in the unclassified service.  Requires a public hearing before removal for cause. 

This section is effective July 1, 2018.

Section 4 [Standards and Guidelines] requires the LBO to adopt standards, guidelines, and procedures governing the preparation of fiscal notes and to publish them in the State Register and on the LBO’s Web site. These standards, guidelines, and procedures are not effective until approved by the Oversight Commission. This section is effective January 8, 2019, but the uniform procedures may be developed and adopted by the Oversight Commission prior to the effective date.

Section 5 [Access to Data] requires agencies and the Supreme Court to promptly supply any data relevant to legislation that is the subject of a fiscal note, on request of the director of the LBO.  This section is effective January 8, 2019.

Section 6 [Data Classification and Treatment] requires the LBO to maintain data classified as not public in the same manner as required of the entity subject to the classification and limits the use of such data. Specifies that violations on use of nonpublic data by the director or staff of the LBO is cause for removal, suspension without pay, or immediate dismissal at the direction of the oversight commission. This section is effective January 8, 2019.

Section 7 [Fiscal Note Delivery and Posting] Sets a deadline for delivery of fiscal notes to chairs and bill authors and posting.  This section is effective January 6, 2020.

Section 8 [Preparation; Duties] clarifies that fiscal notes are prepared by agencies – not by the LBO – in consultation with the LBO in a manner consistent with the standards, guidelines, and procedures adopted the by LBO. This section is effective January 6, 2020.

Section 9 [Public Official] adds the director of the LBO to the list of people who are public officials for purposes of Minnesota Statutes, chapter 10A (gift ban, conflict of interest, statement of economic interest, and other provisions).  This section is effective July 1, 2018.

Section 10 [Fiscal Note Data Must be Shared with the Legislative Budget Office] requires agencies to provide data to the LBO regardless of classification. Agencies may not charge the LBO for providing data.  This section is effective January 8, 2019.

Section 11 [Counties] changes the recipient of an annual statutory appropriation of $207,000 from the commissioner of management and budget to the LBO for the cost of preparation of local impact notes. This section is effective July 1, 2019.

Sections 14 and 15 [Effective Date] change the effective date to July 1, 2018, from January 8, 2019, for certain provisions from the 2017 laws establishing the LBO.

Section 16 [Effective Date] changes the effective date to

Section 17 [Legislative Oversight Commission; First Appointments; First Chair; First Meeting] sets deadlines for first appointments to and first meeting of the Legislative Budget Office Oversight Commission.  Provides for the first chair of the Legislative Budget Office Oversight Commission to be from among senate members.

Section 18 [Repealer] repeals a section that is unnecessary in light of new law in this bill.