Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

State Government Finance Division

TWENTY-EIGHTH MEETING

2009-2010 Regular Session - April 15, 2009

STATE OF MINNESOTA TWENTY-EIGHTH MEETING
HOUSE OF REPRESENTATIVES EIGHTY-SIXTH SESSION

STATE GOVERNMENT FINANCE DIVISION

MINUTES


Representative Kahn, Chair of the Division, called the meeting to order at 10:42 A.M. on April 15, 2009 in Room 500S 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
POPPE, Jeanne
SANDERS, Tim
SIMON, Steve
SOLBERG, Loren, Ex-officio

Members excused:


A quorum was present.

Representative Winkler moved that the minutes of April 2, 2009 and April 6, 2009 be adopted. THE MOTION PREVAILED.

HF 1781 (Kahn) Omnibus state government bill

Chair Kahn moved that HF 1781 be recommended to pass and be re-referred to the Finance Committee.

Chair Kahn moved the A09-0398 amendment. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn moved the H1781A11 amendment.

Representative Thissen testified in support of lines 2.7 - 2.24 in the H1781A11 amendment.

Chair Kahn renewed her motion that the H1781A11 amendment be adopted. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Rebecca Spartz, Attorney General’s office, responded to member questions on fiscal notes and the cost to their office.

Chair Kahn moved the H1781A7 amendment to HF 1781, the delete everything amendment (A09-0398), as follows:



Jim Gelbmann, Office of the Secretary of State, testified in support of the H1781A7 amendment.

Chair Kahn renewed her motion that the H1781A7 amendment be adopted. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn moved the MS-A40 amendment to HF 1781, the delete everything amendment (A09-0398).

Nathan Moracco, State Employee Group Insurance Program, testified that MS-A40 would increase costs to state agencies.

Chair Kahn incorporated the following oral amendment into her MS-A40 amendment:

Page 1, after line 25, insert "Effective date: This section is effective January 1, 2012"

Russ Stanton, Inter Faculty Organization, responded to questions regarding the MS-A40 amendment.

Lead Republican Peppin moved the following oral amendment to the MS-A40 amendment:

Page 1, line 12, after "may" insert "be considered to"

Chair Kahn incorporated the oral amendment into her MS-A40 amendment.

Lead Republican Peppin moved the following oral amendment to the MS-A40 amendment:

Page 1, line 24, after "to" insert "a"
Page 1, line 24, delete the "s" from "partners"
Page 1, line 24, delete the "s" from the second "employees"
Page 1, line 24, after "of" insert "a"

Chair Kahn incorporated the Peppin oral amendment into her MS-A40 amendment.

Chair Kahn renewed her motion that the MS-A40 amendment, as amended, be adopted. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Kalin moved the H1781A15 amendment to HF 1781, the delete everything amendment (A09-0398).

Ken Sulem, Minnesota Association of Townships, testified in support of the A15 amendment.

Representative Kalin renewed his motion that the H1781A15 amendment be adopted. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Holberg moved a hand written amendment to HF 1781, the delete everything amendment (A09-0398), as follows:

Line 63.19, After the period, delete the remainder of the line and insert:

If requested by the business entity, the e-mail address provided to the secretary of state pursuant to this section must not be provided as bulk data.

Delete Line 63.20

THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Bigham moved the H1781A14 amendment to HF 1781, the delete everything amendment (A09-0398).

Vice-Chair Winkler moved the following oral amendment to the H1781A14 amendment:

After Line 9 insert, "Subd. 3 Priority. In completing the statewide electronic licensing system the chief information officer must give priority to the extent practical to licenses that are not currently issued electronically."

John Lally, Planning Director, Office of Enterprise Technology, testified in opposition to the amendment.

Pam Luinenberg, Coordinator, Coalition of Licensed Social Services, testified in support of the amendment.

Sara Noznesky, Manager of Legislative Affairs, Minnesota Medical Association, testified in support of the amendment.

Representative Bigham incorporated the Winkler oral amendment into her H1781A14 amendment.

Representative Bigham renewed her motion that the H1781A14 amendment, as amended, be adopted. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn recessed the meeting to the call of the Chair.

Chair Kahn reconvened the Committee at 1:02 P.M.

Representative Masin moved the H1781A388 amendment to HF 1781, the delete everything amendment (A09-0398). THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Masin moved the H1781A09-0389 amendment to HF 1781, the delete everything amendment (A09-0398).

Representative Masin incorporated the following oral amendment to the H1781A09-0389:

Line 4, delete "Director of the Office of Geographic and Demographic Analysis" and insert "Commissioner of Administration"

Line 8, delete "Director" and insert "Commissioner"

Line 9, delete "Director" and insert "Commissioner"

Jim Rhodes, Legislative Director, Department of Administration, responded to member questions.

Lead Republican Peppin moved the following oral amendment to the H1781A09-0389 amendment:

Line 5, after "economic" insert (including tax implications)"

Line 6, after "economic" insert (including tax implications)"

Representative Masin incorporated the Peppin oral amendment into the H1781A09-0389 amendment.

Representative Masin renewed her motion that the H1781A09-0389 amendment, as amended, be adopted. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Holberg moved the H1781A12 amendment to HF 1781, the delete everything amendment (A09-0398).

Vice-Chair Winkler moved the following oral amendment to the H1781A12 amendment:

Page 59, delete lines 34 and 35.

Representative Holberg incorporated the Winkler oral amendment into the H1781A12 amendment.

Representative Holberg renewed her motion that the H1781A12 amendment, as amended, be adopted. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn moved the following oral amendment to HF 1781, the delete everything amendment (A09-0398), as follows:

Page 58, line 30, delete "administration" and insert "finance"
Page 59, line 24, delete "administration" and insert "finance"

THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Downey moved the following oral amendment to HF 1781, the delete everything amendment (A09-0398), as follows:

Page 59, delete lines 8 through 14
Page 59, line 29, delete "by 2011"

THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Holberg moved the following oral amendment to HF 1781, the delete everything amendment (A09-0398), as follows:

Page 59, line 28, delete "a commitment to providing" and insert "an ability to provide"

THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn moved the following written amendment to HF 1781, the delete everything amendment (A09-0398), as follows:

Page 28, after line 10, insert:

"Sec. 39. Minnesota Statutes 2008, section 16A.152, is amended by adding a
subdivision to read:
Subd. 8. Report on budget reserve percentage. (a) The commissioner of finance
must periodically review the formula developed as part of the Budget Trends Study
Commission authorized by Laws 2007, chapter 148, article 2, section 81, to estimate
the percentage of the preceding biennium's general fund expenditures and transfers
recommended as a budget reserve.
(b) The commissioner must annually review the variables and coefficients in the
formula used to model the base of the general fund taxes and the mix of taxes that provide
revenues to the general fund. If the commissioner determines that the variables and
coefficients have changed enough to result in a change in the percentage of the preceding
biennium's general fund expenditures and transfers recommended as a budget reserve,
the commissioner must update the variables and coefficients in the formula to reflect the
current base and mix of general fund taxes.
(c) Every ten years, the commissioner must review the methodology underlying the
formula, taking into consideration relevant economic literature from the past ten years, and
determine if the formula remains adequate as a tool for estimating the percentage of the
preceding biennium's general fund expenditures and transfers recommended as a budget
reserve. If the commissioner determines that the methodology underlying the formula is
outdated, the commissioner must revise the formula.
(d) By January 15 of each year, the commissioner must report to the chairs and
ranking minority members of the house of representatives Committee on Ways and Means
and the senate Committee on Finance, in compliance with sections 3.195 and 3.197,
on the percentage of the preceding biennium's general fund expenditures and transfers
recommended as a budget reserve. The report must specify:
(1) if the commissioner updated the variables and coefficients in the formula to
reflect significant changes to either the base of one or more general fund taxes or to the
mix of taxes that provide revenues to the general fund as provided in paragraph (b);
(2) if the commissioner revised the formula after determining the methodology was
outdated as provided in paragraph (c); and
(3) if the percentage of the preceding biennium's general fund expenditures and
transfers recommended as a budget reserve has changed as a result of an update of or a
revision to the formula.
EFFECTIVE DATE.This section is effective the day following final enactment."

Page 58, after line 28, insert:

"Sec. 84. CASH FLOW STUDY.
By January 15, 2010, the commissioner of finance must submit to the chair
and ranking minority member of the Finance Committee in the senate and the chair
and ranking minority member of the Ways and Means Committee in the house of
representatives, a report on the cash flow condition of the general fund for the fiscal
year 2010-2011 biennium and the following biennium, including an assessment of the
options for improving the long-term cash flow of the state through changes in the timing
of general fund payment dates, revenue collections, or other changes. In addition, the
report should identify all major provisions of law that result in state expenditures or
revenues being recognized in budget documents in a fiscal year earlier or later than the
fiscal year in which the obligation to pay state expenses was incurred or the liability
to pay state taxes was incurred."

THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Bigham moved the H1781A16 amendment to HF 1781, the delete everything amendment (A09-0398).

Chair Kahn moved the following oral amendment to the H1781A16 amendment:

Delete line 8

Representative Bigham requested a roll call vote. The results were as follows:

AYES
Kahn
Holberg
Peppin
Winkler

NAYS
Bigham
Kalin
Kath
Kiffmeyer
Koenen
Masin
Poppe
Sanders
Simon

ABSENT
*Downey

On a vote of 4 AYES and 9 NAYS THE MOTION DID NOT PREVAIL AND THE AMENDMENT TO THE AMENDMENT WAS NOT ADOPTED.

*Representative Downey was unable to be in the room when the roll call took place but when he returned he indicated that he would have voted "NAY".

Curt Yoakum, Director, Department of Finance, testified against line 5 of the H1781A16 amendment.

John Lally, Planning Director, Office of Enterprise Technology, also testified against line 5 of the H1781A16 amendment.

Chair Kahn temporarily laid over the H1781A16 amendment.

Representative Kalin moved the following oral amendment to HF 1781, the delete everything amendment (A09-0398), as follows:

Page 32, delete section 44.

Representative Kalin asked for a division vote. The results were 6 AYES and 6 NAYS. THE MOTION DID NOT PREVAIL AND THE AMENDMENT WAS NOT ADOPTED.

The H1781A16 was taken from the table.

Representative Masin moved the following oral amendment to the HF 1781A16 amendment as follows:

Page 55, line 23, delete "must" and insert "may"

Representative Bigham requested a roll call vote. After discussion, Representative Bigham withdrew her request.

Representative Masin renewed her motion that the oral amendment to H1781A16 be adopted. THE MOTION DID NOT PREVAIL AND THE AMENDMENT WAS NOT ADOPTED.

Chair Kahn recessed the meeting to the call of the Chair.

Chair Kahn reconvened the Committee at 3:15 P.M.

Representative Masin moved to reconsider her oral amendment to the H1781A16 amendment. THE MOTION PREVAILED.

Representative Masin renewed her previous motion to adopt the following oral amendment to the H1781A16 amendment:

Page 55, line 23, delete "must" and insert "may"

THE MOTION PREVAILED AND THE AMENDMENT TO THE AMENDMENT WAS ADOPTED.

Representative Bigham renewed her motion that the H1781A16 amendment, as amended, be adopted and requested a roll call vote. The results were as follows:

AYE
Bigham
Kalin
Kath
Koenen
Masin
Poppe
Simon
Winkler

NAY
Kahn
Downey
Holberg
Kiffmeyer
Peppin
Sanders

On a vote of 8 AYES and 6 NAYS, THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Representative Kiffmeyer moved an oral amendment to HF 1781 the delete everything amendment (A09-0398), as follows:

Page 62, delete Article 3

Bert Black, Planning Director, Secretary of State’s Office, testified against deleting Article 3.

Representative Kiffmeyer withdrew her oral amendment.

Representative Downey moved an oral amendment to HF 1781 the delete everything amendment (A09-0398), as follows:

Page 31, line 10, delete "2020" and insert "2019"

Page 31, line 11, delete "EFFECTIVE DATE. This section is effective July 1, 2010."

Page 60, reinstate Section 85

Chair Kahn moved an oral amendment to the Downey oral amendment as follows:

Page 10, line 14, after the period insert "The commissioner must allocate these savings to affected executive branch agencies and reduce the general fund appropriations for the operating budgets of the affected executive branch agencies for the biennium ending June 30, 2011 accordingly."

Representative Downey incorporated the Kahn oral amendment into his oral amendment.

Representative Downey renewed his motion that his oral amendment, as amended, be adopted.

Representative Kalin requested a division vote. The results were 7 AYES and 6 NAYS. THE MOTION PREVAILED AND THE AMENDMENT WAS ADOPTED.

Chair Kahn recessed the meeting to the call of the Chair.

Chair Kahn reconvened the Committee at 4:12 P.M.

Chair Kahn moved the A09-0445X amendment to HF 1781 the delete everything amendment (A09-0398).

Helen Roberts, Fiscal Analyst for the Committee, explained the A09-0445X amendment.

Chair Kahn incorporated the A09-0445X amendment into HF 1781 the delete everything amendment (A09-0398).

Representative Simon moved to reconsider the Downey oral amendment. THE MOTION PREVAILED.

Representative Downey renewed his motion that his oral amendment, as amended, be adopted.

Representative Peppin requested a roll call vote. The results were as follows:

AYE
Kahn
Downey
Holberg
Kiffmeyer
Peppin
Sanders

NAY
Bigham
Kalin
Kath
Koenen
Masin
Simon
Winkler

ABSENT
Poppe

On a vote of 6 AYES and 7 NAYS, THE MOTION DID NOT PREVAIL AND THE AMENDMENT WAS NOT ADOPTED.

Chair Kahn directed staff to make the necessary technical changes to HF 1781.

Chair Kahn renewed her motion that HF 1781 be recommended to pass, as amended, and be re-referred to the Finance Committee.

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

AYES
Kahn
Bigham
Kalin
Koenen
Masin
Simon
Winkler

NAYS
Downey
Holberg
Kath
Kiffmeyer
Peppin
Sanders

On a vote of 7 AYES and 6 NAYS THE MOTION PREVAILED and the bill was passed as amended and re-referred to the Finance Committee.

The meeting was adjourned at 4:19 P.M.





____________________________________________
Representative Phyllis Kahn, Chair




____________________________________________
Krysta Niedernhofer, Committee Legislative Assistant
More Info On This Meeting..

HF1781 (Kahn) Omnibus state government finance bill amendments