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S.F. No. 3764 - State Government Finance and Policy and Elections Omnibus Bill - The First Engrossment
 
Author: Senator Mary Kiffmeyer
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: April 19, 2018



 

Section 1 [Definitions] defines “ratification” for purposes of the approval of negotiated collective bargaining agreements and compensation plans.  This section is from SF 3540 (Miller).

Section 2 [State Employee Negotiations] requires the commissioner of management and budget to submit changes to state employee insurance to the Legislative Coordinating Commission (“LCC”) for review 45 days before submitting a collective bargaining agreement or compensation plan to the LCC. Precludes the commissioner of management and budget from submitting a collective bargaining agreement or compensation plan that contains changes to state employee insurance that were disapproved by the commission. This section is from SF 3056 (Benson).

Section 3 [Information Required] specifies information that the commissioner of management and budget is required to submit to the Legislative Coordinating Commission with the submission of a collective bargaining agreement or compensation plan.  The required information includes the following, for each agency and for each proposed collective bargaining agreement and compensation plan:

(1) A comparison of the biennial compensation costs under the current agreement or plan to the costs under the proposed agreement or plan, paid for by money appropriated from the general fund;

(2) A comparison of the biennial compensation costs under the current agreement or plan to the costs under the proposed agreement or plan, paid for by money appropriated from each fund other than the general fund; and

(3) An identification of the amount of added biennial compensation costs attributable to salary, wages, and nonsalary and nonwage benefits.

The commissioner is also required to provide the aggregate impact of all proposed agreements and plans being submitted to the commission, for each agency, and for each of the items in clauses (1) to (3).

This section is from SF 3554 (Benson).

Section 4 [Establishment; Duties] eliminates the Legislative Coordinating Commission’s oversight role for the Legislative Budget Office. This is the first of several sections from SC4235 (Kiffmeyer) heard in the State Government Finance and Policy and Elections Committee on April 10, 2018, as follows: Sections 4-9, 11-14, 31, 33-38, and 45, paragraphs (c) and (d).

Section 5 [Director; 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 6 [Uniform Procedures] 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 7 [Access to Data; Treatment] 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.  Specifies permitted use of not public data and establishes consequences for violations. This section is effective January 8, 2019.

Section 8 [Fiscal Note Delivery and Posting] requires delivery of fiscal notes to chairs and bill authors and sets a deadline for posting.  This section is effective January 6, 2020.

Section 9 [Legislative Budget Office 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 10 [Evaluation of Information Technology Projects] establishes permission for a role for the Office of Legislative Auditor (“OLA”) to audit information technology projects.  This section is patterned after the role for the OLA in evaluating economic incentive programs that was enacted in 2015.  More specifically, this section does the following:

Subdivision 1 [Definition] defines “information technology project” as any project performed by the (new) Division of Information Technology under a service level agreement for a state agency.

Subdivision 2 [Selection of project for review; schedule for evaluation; report] establishes a permitting process for the OLA to identify three to five information technology projects from which the Legislative Audit Commission may select at least one topic for an OLA review annually. In selecting the three to five topics, the OLA may consider both completed and ongoing projects and must give particular consideration to forensic review of high profile problematic projects from which recommendations might be developed to prevent problems on future projects.  The OLA may submit a written report to the Legislative Audit Commission on the reviewed topic.

Subdivision 3 [Evaluation plan] permits the OLA to specify an evaluation plan by November 1, 2018, that the OLA will use when reviewing information technology projects.

Section 10 is the first of several sections from SF 2966 (Rosen) as follows: Section 10, 17-25, 39, 44, and 45, paragraph (a).

Section 11 [Preparation] reverses changes made in the 2017 legislation that established the Legislative Budget Office (LBO).  This change leaves the commissioner of management and budget responsible for coordinating and delivering fiscal notes for the 2019 legislative session.

Section 12 [Preparation] makes the LBO responsible to coordinate and deliver fiscal notes beginning in January 2020.  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 13 [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 14 [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 15 [Rules Impacting Residential Construction or Remodeling; Legislative Notice and Review] delays adoption of certain rules having a financial impact on residential construction until after the next legislative session. This section is from SF 2567 (Kiffmeyer).

Section 16 [Federal Funds Report] requires the commissioner of administration to report to the legislature, with the governor’s detailed operating budget, on the total amount of federal funds received by the state during a specified period. This section identifies information to include in the report.  This section is from SF 3534 (Eichorn).

Section 17 [Creation] replaces the Office of MN.IT Services with a division within the Department of Administration called the “Division of Information Technology.”

Section 18 [Commissioner] adds a definition of “commissioner” that means the commissioner of administration.

Section 19 [Responsibility for Information Technology Services and Equipment] limits the scope of responsibility for the chief information officer.  This section removes certain items from a list of goods and services the chief information officer is responsible for providing to agencies, to a list of items the chief information officer provides to agencies at the request of an agency. 

Section 20 [Division of Information Technology; Structure and Personnel] changes the appointing authority for a chief information officer from the governor to the commissioner of administration. This section changes the entity to whom the chief information officer reports from the governor to the commissioner of administration.

Section 21 [Consultation Required] limits the requirement that agencies consult with the Division of Information Technology about project cost to those projects that an agency has selected the division to perform. This section also makes a conforming change to transfer cost of the project to the commissioner of administration rather than to the Office of MN.IT Services.

Section 22 [Electronic Government Services] changes a requirement to a permission that agencies use a single entry site created by the chief information officer for online government services.

Section 23 [Information Technology Revolving Fund] changes to the name of a revolving fund for IT projects and changes the entity responsible for the fund from the chief information officer to the commissioner of administration. Requires rates to apply for the biennium. The biennial rate requirement was not in SF 2966 (Rosen).

Section 24 [Program Participation] eliminates authority of the chief information officer to require state agencies to participate in the planning and implementation of the network to provide interconnective technologies.

Section 25 [Rates] requires MN.IT to provide invoices or statements that clearly describe their services.  Requires MN.IT to categorize or code services in a manner prescribed by the agency, or provide information in supplement to the invoice or statement that categorizes or codes services in a manner prescribed by the agency. This section was not in SF 2966 (Rosen). 

Section 26 [Schedule] and Section 27 [Hair Braiders Exempt] specify that the practice of hair braiding is exempt from licensing requirements and fees. These sections, and section 45, paragraph (b), are from SF 2871 (Koran).

Section 28 [Fair Share Fee] repeals statutes that permit exclusive representatives to charge fair share fees to public employees who are not members, effective if the Supreme Court determines that fair-share fees are unconstitutional.  This section is from SF 3754 (Kiffmeyer).

Section 29 [Voter Records Updated Due to Voting Report] requires county auditors to use the “voter records updated due to voting report,” produced in the SVRS, to identify voters whose records indicate that it was updated because the person voted. The county auditor must investigate each identified record that is challenged for a reason related to eligibility to determine if the voter appears to have been ineligible to vote and voted. The auditor must forward any records that indicate the voter may have been ineligible to vote to law enforcement or the county attorney.

Section 30 [Inactive Voter Report] requires the secretary of state to develop a report in the SVRS that provides information on inactive voters who registered while the voter was possibly ineligible. Once the report is available, county auditors must use the report to identify voters that appear to have been ineligible to vote and registered to vote. The auditor must forward identified records to law enforcement or the county attorney.

Section 31 [Counties] changes the recipient of $207,000 annually from the commissioner of MMB to the Legislative Coordinating Commission for the LBO.

Section 32 [Total Appropriation] reduces the appropriation in fiscal year 2019 to the Office of MN.IT Services by $19,000.

Sections 33 and 34 [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 35 [Effective Date] changes the effective date to January 6, 2020, from January 8, 2019, for a provision from the 2017 law establishing the LBO.

Section 36 [Effective Date] changes the effective date to July 1, 2018, from January 8, 2019. Requires the LBO to contract with MMB for access to the fiscal note tracking system from December 15, 2018, to January 5, 2020, and requires the transfer of operational control of the fiscal note tracking system to the LBO on January 6, 2020.

Section 37 [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 38 [Legislative Budget Office Delivery of Fiscal Notes and Local Impact Notes Before January 6, 2020] specifies duties for the LBO to coordinate test fiscal notes on a sample of fiscal note requests from January 8, 2019, to January 6, 2020.

Subdivision 1 [Management and budget responsibility] specifies that MMB shall retain responsibility for generating fiscal notes until January 6, 2020. 

Subdivision 2 [Fiscal note request] requires the commissioner of management and budget to submit to the director of the LBO a daily list of fiscal notes requested during the legislative session, and a weekly list during the interim.

Subdivision 3 [Local impact note request] requires the commissioner of management and budget to submit to the director of the LBO a weekly list of local impact notes requested.

Subdivision 4 [Legislative Budget Office sampling] requires the director of the LBO to select a sampling of fiscal notes and local impact notes to coordinate and to report to the legislative nonpartisan fiscal analysts which fiscal notes the LBO will coordinate.  The subset must include a cross-section of the jurisdictions of the standing committees. During the 2019 legislative session, the LBO must complete the coordination of at least 300 fiscal notes and at least two local impact notes. 

By June 30, 2019, the director must report to the legislature on the fiscal notes and local impact notes requested, the subset selected, the date the director received the list identifying the request, and the date of delivery of the completed note.

Subdivision 5 [Agency coordination] requires state agencies to prepare a fiscal note in consultation with the LBO and consistent with the LBO’s procedures.

Subdivision 6 [Delivery of fiscal notes] requires the director of the LBO to deliver fiscal notes and local impact notes labeled as test notes to chairs who requested notes and chief authors.

Subdivision 7 [Legislative Budget Office Oversight Commission performance assessment] requires the Legislative Budget Office Oversight Commission to report on the timeliness, quality, and cost-effectiveness of the LBO’s production of fiscal notes during the transition period.

Section 39 [Office of MN.IT Services; Transfer] specifies that statutes apply that provide for the transfer of powers, duties, rights, and obligations from one agency to another.

Sections 40 [Purpose] and 41 [Plaque Authorized] require the commissioner of administration to place a plaque honoring World War I veterans who served both at home and abroad.  These sections are from SF 106 (Clausen).

Section 42 [Appropriation and Transfers; Secretary of State] appropriates $1,534,000 in fiscal year 2019 to the secretary of state from the Help America Vote Act (HAVA) account for modernizing, securing, and updating the statewide voter registration system (SVRS) and for cyber security upgrades. $150,000 is deposited into the HAVA account by MMB to satisfy the state match requirement.

Section 43 [Appropriation; Department of Health] appropriates $33,000 in fiscal year 2019 from the state government special revenue fund to the commissioner of health to perform a cost analysis on rules impacting residential construction or remodeling.

Section 44 [Revisor’s Instruction] directs the Revisor of Statutes to make conforming changes.

Section 45 [Repealer] repeals the following:

Paragraph (a) repeals a requirement that state agencies transfer any appropriation they receive for an IT project to the Office of MN.IT Services.

Paragraph (b) repeals the following provisions:

Section 155A.28, subdivision 1: requires people engaged in hair braiding solely for compensation as a profession to register with the Board of Cosmetology.

Section 155A.28, subdivision 3: requires people engaged in hair braiding solely for compensation as a profession to complete instruction of up to 30 hours on the topics of health, safety, infection control, and state cosmetology laws.

Section 155A.28, subdivision 4: is an obsolete section. 

Paragraph (c): A statute that requires LBO to set uniform procedures for fiscal notes.  New section 6 provides for the LBO to set uniform procedures to be approved by the Legislative Budget Office Oversight Commission. This repeal is effective January 6, 2020.

Paragraph (d): Repeals the enabling statute for the Legislative Budget Office Transition Planning Task Force.  This repeal is effective the day after enactment.

 

 
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