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State Government Finance Division

FORTY-FORTH MEETING

2009-2010 Regular Session - March 25, 2010

STATE OF MINNESOTA FORTY-FORTH MEETING
HOUSE OF REPRESENTATIVES EIGHTY-SIXTH SESSION

STATE GOVERNMENT FINANCE DIVISION

MINUTES


Representative Kahn, Chair of the Division, called the meeting to order at 10:38 A.M. on March 25, 2010 in Room 300N of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:

KAHN, Phyllis, Chair
WINKLER, Ryan, Vice-Chair
PEPPIN, Joyce, Lead Republican
BIGHAM, Karla
DOWNEY, Keith
HOLBERG, Mary Liz
KALIN, Jeremy
KATH, Kory
KIFFMEYER, Mary
KOENEN, Lyle
MASIN, Sandra
SANDERS, Tim
SIMON, Steve

Members excused:

POPPE, Jeanne

A quorum was present.


HF 3589 (Kath) Contracts for professional or technical services reporting threshold reduced.

Representative Kath moved that HF 3589 be recommended to pass and be re-referred to the Finance Committee.

Representative Kath and Robbie LaFleur, Director, Legislative Reference Library, testified in support of HF 3589.

Representative Kath then moved the H3589A1 amendment.

Chair Kahn moved an oral amendment to HF3589A1 as follows:

Page 1, line 2, delete "post the report in a" and insert "make the report"
Page 1, line 3, delete "database" and insert "online"

Representative Kath incorporated the oral amendment into the HF3589A1 amendment.

Representative Kath renewed his motion that the HF3589A1 amendment be adopted, as amended. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn moved the following oral amendment to HF 3589:

Page 2, line 16 delete "2010" and insert "2011"

THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.



Representative Kath renewed his motion that HF 3589 be recommended to pass, as amended, and be re-referred to the Finance Committee. THE MOTION PREVAILED.


HF 2405 (Reinert) Temporary successors provided to members of the legislature called into active military service, implementation of statutory language provided, and constitutional amendment proposed.

Chair Kahn moved that HF 2405 be recommended to pass and be re-referred to the Finance Committee.

Representative Reinert testified in support of HF 2405.

Chair Kahn renewed her motion that HF 2405 be recommended to pass and be re-referred to the Finance Committee. THE MOTION PREVAILED.


HF 3515 (Winkler) specifying the name of the state accounting and procurement system.

Vice-Chair Winkler moved that HF 3515 be recommended to pass and be re-referred to the Finance Committee.

Vice-Chair Winkler then moved the A10-2444 amendment. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Lenczewski testified in support of HF 3515.

Ward Einess, Commissioner, Department of Revenue, responded to member questions.

Lead-Republican Peppin moved the following written amendment to HF 3515:

Page 2, line 7, insert:

Sec. 2. REQUEST FOR PROPOSALS.
(a) The commissioner of revenue shall issue a request for proposals for a contract to
implement a system of tax analytics and business intelligence tools to enhance the state's
tax collection process and revenues by improving the means of identifying candidates
for audit and collection activities and prioritizing those activities to provide the highest
returns on auditors' and collection agents' time. The request for proposals must require
that the system recommended and implemented by the contractor:
(1) leverage the Department of Revenue's existing data and other available data
sources to build models that more effectively and efficiently identify accounts for audit
review and collections;
(2) leverage advanced analytical techniques and technology such as pattern
detection, predictive modeling, clustering, outlier detection, and link analysis to identify
suspect accounts for audit review and collections;
(3) leverage a variety of approaches and analytical techniques to rank accounts and
improve the success rate and the return on investment of department employees engaged
in audit activities;
(4) leverage technology to make the audit process more sustainable and stable, even
with turnover of department auditing staff;
(5) provide optimization capabilities to more effectively prioritize collections and
increase the efficiency of employees engaged in collections activities; and
(6) incorporate mechanisms to decrease wrongful auditing and reduce interference
with Minnesota taxpayers who are fully complying with the laws.
(b) Based on acceptable responses to the request for proposals, the commissioner shall
enter into a contract for the services specified in paragraph (a) by July 1, 2012. The
contract must incorporate a performance-based vendor financing option whereby the
vendor shares in the risk of the project's success.
EFFECTIVE DATE. This section is effective July 1, 2011.


THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Bigham moved the H3515A1 amendment. After some discussion she withdrew her amendment.

Vice-Chair Winkler renewed his motion that HF 3515 be recommended to pass, as amended, and be re-referred to the Finance Committee. THE MOTION PREVAILED.


HF 2809 (Severson) Bid preference program eligibility broadened for veteran-owned small businesses.

Representative Kiffmeyer moved that HF 2809 be recommended to pass and be re-referred to the Finance Committee.

Representative Severson testified in support of HF 2809.

Charlie Borene, Project Manager, Valley Paving, and Jerry Kyser, Vice-Chair, United Veterans Legislative Council of Minnesota, both testified in support of HF 2809.

Representative Kiffmeyer renewed her motion that HF 2809 be recommended to pass and be re-referred to the Finance Committee.

Lead-Republican Peppin requested a roll call vote. The results were as follows:


AYE NAY ABSTAIN ABSENT

DOWNEY, Keith KAHN, Phyllis HOLBERG, Mary Liz
KIFFMEYER, Mary BIGHAM, Karla KATH, Kory
PEPPIN, Joyce KALIN, Jeremy KOENEN, Lyle
SANDERS, Tim MASIN, Sandra POPPE, Jeanne
SIMON, Steve
WINKLER, Ryan


On a vote of 4 AYES and 6 NAYS THE MOTION DID NOT PREVAIL.


HF 2849 (Norton) Minnesota and Wisconsin small business start-ups comparative study of state laws provided.

Chair Kahn moved that HF 2849 be recommended to pass and be re-referred to the Finance Committee.

Representative Norton testified in support of HF 2849.

Chair Kahn moved the H2849A1 amendment. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn renewed her motion that HF 2849 be recommended to pass, as amended, and be re-referred to the Finance Committee. THE MOTION PREVAILED.


HF 3310 (Hilstrom) State Patrol tax compliance and vehicle crimes investigations funding provided, and money appropriated.

Chair Kahn moved that HF 3310 be recommended to pass and be re-referred to the Finance Committee.


Representative Hilstrom testified in support of HF 3310.

Chair Kahn moved an oral amendment as follows:

Page 1, line 17, delete "1,372,687,000" and insert "1,372,878,000"
Page 1, line 18, delete "2,638,338,000" and insert "2,637,799,000"
Page 1, line 20, delete "2,213,715,000" and insert "2,213,149,000"
Page 1, line 20, delete "4,288,295,000" and insert "4,287,756,000"
Page 1, line 24, delete "153,308,000" and insert "152,769,000"

Page 2, line 7, delete "86,598,000" and insert "86,059,000"

Page 3, line 5, delete "730,000" and insert "191,000"
Page 3, line 6, delete "for the State Patrol to"
Page 3, line 7, delete "add at least eight troopers"
Page 3, line 15, delete the blank and insert "454,000"
Page 3, line 17, delete the blank and insert "303,000"
Page 3, line 18, delete the blank and insert "50,000"
Page 3, after line 18, insert "The base for this program is $693,000 in fiscal year 2012 and $693,000 in fiscal year 2013."


THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn renewed her motion that HF 3310 be recommended to pass, as amended, and be re-referred to the Finance Committee. THE MOTION PREVAILED.


HF 3682 (Kalin) Disposal of state-owned buildings provided, energy improvement financing program provisions changed, and executive branch agency representation changed in the reinsurance association.

Representative Kalin moved that HF 3682 be recommended to pass and be re-referred to the Finance Committee.

Wayne Waslaski, Senior Director, Department of Administration, testified in support of HF 3682.

Representative Kalin renewed his motion that HF 3682 be recommended to pass and be re-referred to the Finance Committee. THE MOTION PREVAILED.


The meeting was adjourned at 12:21 P.M.





____________________________________________
Representative Phyllis Kahn, Chair




____________________________________________
Krysta Niedernhofer, Committee Legislative Assistant
More Info On This Meeting..
Bills Added:
  • HF3589 (Kath) - Contracts for professional or technical services reporting threshold reduced.
  • HF2405 (Reinert) - Temporary successors provided to members of the legislature called into active military service, implementation of statutory language provided, and constitutional amendment proposed.
  • HF2809 (Severson) - Veteran-owned small business bid preference program eligibility broadened for goods and services.
  • HF3310 (Hilstrom) - State Patrol tax compliance and vehicle crimes investigations funding provided, and money appropriated.
  • HF3682 (Kalin) - Disposal of state-owned buildings provided, energy improvement financing program provisions changed, and executive branch agency representation changed in the reinsurance association.
  • HF2849 (Norton) - Minnesota and Wisconsin small business start-ups comparative study of state laws provided.
  • HF3515 (Winkler) - Commissioner of revenue funding provided for additional activities to identify and collect tax liabilities, commissioner directed to issue a request for proposals for a contract to implement a related system of tax analytics and business intelligence tools, and money appropriated.