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Finance

35th MEETING

2007-2008 Regular Session - Monday, March 10, 2008

STATE OF MINNESOTA 35th MEETING
HOUSE OF REPRESENTATIVES EIGHTY-FIFTH SESSION

FINANCE COMMITTEE

MINUTES


Representative Carlson, Chair of the Finance Committee, called the meeting to order at 8:40 A.M. on Monday, March 10, 2008, in Room 200 of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:

Carlson, Chair
Sailer, Vice Chair
Clark
Cornish
Erhardt
Garofalo
Greiling
Hackbarth
Hausman
Heidgerken
Hilty
Howes
Huntley
Jaros
Juhnke
Kahn
Kohls
Lenczewski
Lieder
Mahoney
Murphy, M.
Otremba
Paymar
Pelowski
Peppin
Poppe
Rukavina
Seifert
Sertich
Severson
Simon
Slawik
Wagenius
Walker
Westrom



Members excused: Anderson, B., Finstad, Mariani, Solberg, Thissen

A quorum was present.

Members attending from the Committee on Ways & Mans: Abeler, Brynaert, Drazkowski, Dean, Gunther, McNamara

Rep. Pelowski presented HF2904 (Pelowski) Natural disaster assistance procedures established for state agencies.

Rep. Pelowski moved that HF2904 be recommended to pass and be placed on the General Register.

Rep. Pelowski renewed the motion that HF2904 be recommended to pass and be placed on the General Register. THE MOTION PREVAILED.

Rep. Sertich moved adoption of the Housing Policy and Finance and Public Health Finance Division Report for HF3346. (See language at http://wdoc.house.leg.state.mn.us/leg/LS85/HF3346.0.pdf). THE MOTION PREVAILED AND THE DIVISION REPORT WAS ADOPTED.

Rep. Sertich moved that HF3346 be recommended to pass and be placed on the General Register.

Rep. Davnie presented HF3346 (Davnie) Mortgage foreclosure assistance provided, and maximum amount of financial assistance increased.

Tonya M. Orr, Assistant Commissioner, Minnesota Housing Finance Agency, testified on HF3346.

Rep. Sertich renewed the motion that HF3346 be recommended to pass and be placed on the General Register. THE MOTION PREVAILED.

Rep. Kahn moved approval of the minutes for Tuesday, March 4, 2008. THE MOTION PREVAILED. THE MINUTES WERE APPROVED.


Rep. Kahn moved adoption of the Sate Government Finance Division Report for SF1436. (See language at https://www.revisor.leg.state.mn.us/bin/showPDF.php). THE MOTION PREVAILED AND THE DIVISION REPORT WAS ADOPTED.

Rep. Kahn moved that SF1436 be recommended to pass and be placed on the General Register.

Rep. Kahn presented SF1436 (Hilstrom) State auditor provisions modifications.

Rep. Kahn renewed the motion that SF1436 be recommended to pass and be placed on the General Register. THE MOTION PREVAILED.

Rep. Huntley moved adoption of the Health Care and Human Services Finance Division Report for HF3167. (See language at http://wdoc.house.leg.state.mn.us/leg/LS85/HF3167.0.pdf). THE MOTION PREVAILED AND THE DIVISION REPORT WAS ADOPTED.

Rep. Huntley moved that HF3167 be recommended to pass and be placed on the General Register.

Rep. Walker presented HF3167 (Johnson) Senior nutrition funding clarification provided.

Rep. Huntley renewed the motion that HF3167 be recommended to pass and be placed on the General Register. THE MOTION PREVAILED.

Rep. Rukavina moved adoption of the Higher Education and Work Force Development Policy Finance Division Report for HF3143. (See language at http://wdoc.house.leg.state.mn.us/leg/LS85/HF3143.0.pdf). THE MOTION PREVAILED AND THE DIVISION REPORT WAS ADOPTED.

Rep. Rukavina moved that HF3143 be recommended to pass and be referred to the Committee on Taxes.

Rep Rukavina moved to amend HF3143. (See attached amendment H3143A3) THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Rep. Winkler presented HF3143, as amended, (Winkler) Individual income and corporate franchise credit allowed for investment in Minnesota high technology businesses, and appropriation reduced.

Rep. Rukavina renewed the motion that HF3143, as amended, be recommended to pass and be referred to the Committee on Taxes. THE MOTION PREVAILED.

Rep. Mahoney moved that HF2805 be recommended to pass and be referred to the Committee on Ways and Means.

Rep. Mahoney presented HF2805 (Mahoney) Restricted plumber licenses effective dates modified.

Rep. Mahoney renewed the motion that HF2805 be recommended to pass and be referred to the Committee on Ways and Means. THE MOTION PREVAILED.

Rep. Rukavina moved adoption of the Higher Education and Work Force Development Policy and Finance Division Report for HF2972, First Committee Engrossment. (See language at http://wdoc.house.leg.state.mn.us/leg/LS85/CEH2972.1.pdf). THE MOTION PREVAILED AND THE DIVISION REPORT WAS ADOPTED.

Rep. Mahoney moved that HF2972 First Committee Engrossment be recommended to pass and be placed on the General Register.

Rep. Mahoney presented HF2972 (Mahoney) Minnesota Technology, Inc. renamed Enterprise Minnesota, Inc., and related provisions updated.


Robert Kill, President and CEO, Minnesota Technology testified on HF2972 First Committee Engrossment.

Rep. Kahn moved to amend HF2972 First Committee Engrossment as follows:

Page 9, line 8, delete "1160.03, subdivision 11"

Rep. Mahoney accepted the Kahn friendly amendment to HF2972 First Committee Engrossment.

THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Rep. Mahoney renewed the motion that HF2972, First Committee Engrossment, as amended, be recommended to pass and be placed on the General Register. THE MOTION PREVAILED.

Rep. Rukavina moved adoption of the Higher Education and Work Force Development Policy and Finance Division Report for HF2779 (See language at http://wdoc.house.leg.state.mn.us/leg/LS85/HF2779.0.pdf). THE MOTION PREVAILED AND THE DIVISION REPORT WAS ADOPTED.

Rep. Rukavina moved that HF2779 be recommended to pass and be referred to the Committee on Taxes.

Rep. Paulsen presented HF2779 (Paulsen) Lifelong learning account program established, tax credits to employees and employers for contributions to lifelong learning accounts allowed, and money appropriated.

Rep. Rukavina moved to amend HF2779. (See attached amendment H2779A1).

Rep. Rukavina incorporated a technical amendment to H2779A1, as follows:

Page 1, line 5, delete the first "insert" and insert "delete"

THE MOTION PREVAILED. THE AMENDMENT, AS AMENDED, WAS ADOPTED.

Rep. Rukavina renewed the motion that HF2779, as amended, be recommended to pass and be referred to the Committee on Taxes. THE MOTION PREVAILED.

Rep. Rukavina moved adoption of the Higher Education and Work Force Development Policy and Finance Division Report for HF3349 (See language at http://wdoc.house.leg.state.mn.us/leg/LS85/HF3349.0.pdf). THE MOTION PREVAILED AND THE DIVISION REPORT WAS ADOPTED.

Rep. Rukavina moved that HF3349 be recommended to pass and be referred to the Committee on Ways and Means.

Rep. Rukavina presented HF3349 (Rukavina) Surplus appropriation sunset provision removed.

Rep. Rukavina renewed the motion that HF3349 be recommended to pass and be referred to the Committee on Ways and Means.

Rep. Rukavina withdrew his motion

HF3349 was laid over.

Presentation of governor's supplemental budget :

Tom Hanson, Commissioner, Department of Finance
Jim Schowalter, Assistant Commissioner and State Budget Director, Department of Finance



The following Finance Committee bills were referred by memo on March 4, 5, 6, and 2008.


As of Tuesday, March 4, 2008, the following bills are hereby referred to the Division on Capital Investment.

HF House Author Title
HF3747 Heidgerken A bill for an act relating to capital improvements; appropriating money for a regional adult and wellness center in Melrose; authorizing the sale and issuance of state bonds.

As of Tuesday, March 4, 2008, the following bills are hereby referred to the Division on Education Finance and Economic Competitiveness.

HF House Author Title
HF3752 Hortman A bill for an act relating to higher education; providing equal access to instructional materials for blind students; providing civil remedies; proposing coding for new law in Minnesota Statutes, chapter 135A.
HF3782 Mahoney A bill for an act relating to economic development; establishing an Office of Science and Technology in the Department of Employment and Economic Development; providing for small business assistance and development; appropriating money.
HF3794 Carlson A bill for an act relating to higher education; establishing the power of you program; report to legislature; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 136F.
HF3808 Benson A bill for an act relating to education; appropriating money to the Department of Education for a grant to the Minnesota Historical Society to provide professional development for teachers.
HF2783 Swails A bill for an act relating to education; establishing a P-20 education partnership; proposing coding for new law in Minnesota Statutes, chapter 127A.
HF3262 Brynaert A bill for an act relating to education; providing an alternative school start date in 2009 and 2010.

As of Tuesday, March 4, 2008, the following bills are hereby referred to the Division on Health Care and Human Services Finance.

HF House Author Title
HF3754 Hamilton A bill for an act relating to human services; increasing payment rates for a nursing facility in Jackson County; amending Minnesota Statutes 2006, section 256B.441, by adding a subdivision.
HF3759 Gunther A bill for an act relating to human services; increasing payment rates for a nursing facility in Faribault County; amending Minnesota Statutes 2006, section 256B.441, by adding a subdivision.
HF3760 Gunther A bill for an act relating to human services; increasing payment rates for a nursing facility in Martin County; amending Minnesota Statutes 2006, section 256B.441, by adding a subdivision.
HF3777 Lieder A bill for an act relating to human services; increasing payment rates for a nursing facility in Red Lake County; amending Minnesota Statutes 2006, section 256B.441, by adding a subdivision.
HF3778 Doty A bill for an act relating to human services; increasing nursing facility payment rates to offset property tax payments; amending Minnesota Statutes 2006, section 256B.441, by adding a subdivision.
HF3785 Doty A bill for an act relating to human services; increasing payment rates for a nursing facility in Morrison County; amending Minnesota Statutes 2006, section 256B.441, by adding a subdivision.
HF3801 Murphy, E. A bill for an act relating to human services; increasing the appropriation for child support enforcement; requiring an annual appropriation for child support incentives; amending Minnesota Statutes 2006, section 256.979, subdivision 11; Laws 2007, chapter 147, article 19, section 3, subdivision 4.
HF3810 Gardner A bill for an act relating to health; creating a self-directed health care pilot option to MinnesotaCare; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 256L.

As of Tuesday, March 4, 2008, the following bills are hereby referred to the Division on Minnesota Heritage Finance.

HF House Author Title
HF3356 Moe A bill for an act relating to commerce; requiring Explore Minnesota Tourism to study vacation rental lodging; creating definitions; requiring a report.

As of Tuesday, March 4, 2008, the following bills are hereby referred to the Division on Public Safety Finance.

HF House Author Title
HF3175 Benson A bill for an act relating to public safety; increasing penalty for attempted robbery; creating the crime of robbery involving a motor vehicle; amending Minnesota Statutes 2006, sections 609.24; 609.245; proposing coding for new law in Minnesota Statutes, chapter 609.
HF3331 Simon A bill for an act relating to public safety; adding the definitions of retail property and retail establishment under theft; creating new penalties for retail theft and possession or use of shoplifting gear; amending Minnesota Statutes 2006, sections 609.52, subdivisions 1, 2, by adding a subdivision; 609.521; 609.53, subdivision 1; Minnesota Statutes 2007 Supplement, section 609.52, subdivision 3.
HF3196 Clark A bill for an act relating to public safety; requiring commissioner of public safety's annual report on human trafficking include information on trafficking of American Indian women and girls; appropriating money for research on trafficking of American Indian women and girls; amending Minnesota Statutes 2006, section 299A.785, subdivision 2.
HF1262 Mahoney A bill for an act relating to family law; creating a presumption of joint physical custody; requiring the use of parenting plans in certain cases; modifying custody designations for parenting plans that use alternative terminology; amending Minnesota Statutes 2006, sections 518.003, subdivision 3; 518.17, subdivisions 1, 2; 518.1705, subdivisions 3, 4.
HF2906 Paymar A bill for an act relating to animals; changing provisions regulating dangerous dogs; imposing penalties; amending Minnesota Statutes 2006, sections 347.50, by adding a subdivision; 347.51, subdivisions 2, 2a, 3, 4, 7, 9; 347.52; 347.53; 347.54, subdivisions 1, 3; 347.55; 347.56; proposing coding for new law in Minnesota Statutes, chapter 347.

As of Tuesday, March 4, 2008, the following bills are hereby referred to the Division on State Government Finance.

HF House Author Title
HF3723 Kahn A bill for an act relating to local government finance; permitting Minneapolis Park and Recreation Board to retain proceeds from the condemnation of park lands necessary for the reconstruction and expansion of marked Interstate Highway 35W at the Mississippi River.
HF3453 Kahn A bill for an act relating to state government; modifying provisions relating to a study of effectiveness of the Starbase program.
HF3772 Bunn A bill for an act relating to finance; requiring disclosure of status of fiscal note requests; providing for appeal of fiscal note conclusions; providing for appeal of revenue estimates; amending Minnesota Statutes 2006, sections 3.98, subdivision 4, by adding a subdivision; 270C.11, subdivision 5.

As of Tuesday, March 4, 2008, the following bills are hereby referred to the Division on Transportation Finance and Policy.

HF House Author Title
HF3776 Hornstein A bill for an act relating to metropolitan government; providing for the additional financing of metropolitan area transit and paratransit capital expenditures; authorizing the issuance of certain obligations; limiting the maximum additional amount authorized after July 1, 2007, and after each July 1 thereafter; amending Minnesota Statutes 2006, section 473.39, by adding a subdivision.
HF3781 Jaros A bill for an act relating to transportation; ensuring that unrefunded gasoline taxes remain in highway user tax distribution fund to be used for highway purposes; removing requirement that dedicated funds be used for other purposes; amending Minnesota Statutes 2006, sections 84.794, subdivision 1; 84.803, subdivision 1; 84.83, subdivision 2; 84.927, subdivision 1; 86B.706, subdivision 3; Minnesota Statutes 2007 Supplement, section 86B.706, subdivision 2; repealing Minnesota Statutes 2006, section 296A.18, subdivisions 2, 3, 4, 5, 6.
HF3792 Hortman A bill for an act relating to commuter rail; clarifying the commissioner of transportation's authority; providing for the operation and maintenance of commuter rail lines located in whole or in part within the metropolitan area; proposing coding for new law in Minnesota Statutes, chapters 174; 473.
HF3800 Hornstein A bill for an act relating to motor vehicles; permitting sale of impounded vehicles and contents after voluntary title transfer; providing for notice of impound, right to reclaim contents, and waiver of right; establishing right to retrieve contents without charge in certain cases; limiting deficiency claim; providing for permit for oversize and overweight tow trucks in certain cases; amending Minnesota Statutes 2006, sections 168B.051, subdivision 2; 168B.06, subdivisions 1, 3; 168B.07, by adding a subdivision; 168B.08, subdivision 1; 168B.087, subdivision 1; 169.86, by adding a subdivision.

As of Wednesday, March 5, 2008, the following bills are hereby referred to the Division on Capital Investment.

HF House Author Title
HF3861 Hansen A bill for an act relating to capital improvements; authorizing the issuance of state bonds; appropriating money for grants to mitigate sewer inflow and infiltration in the metropolitan area.

As of Wednesday, March 5, 2008, the following bills are hereby referred to the Division on Education Finance and Economic Competitiveness.

HF House Author Title
HF3845 Bly A bill for an act relating to education finance; extending funding opportunities for contract alternative schools; appropriating money; amending Minnesota Statutes 2006, section 124D.69, subdivision 1.

As of Wednesday, March 5, 2008, the following bills are hereby referred to the Division on Environment and Natural Resources Finance.

HF House Author Title
HF2694 Doty A bill for an act relating to natural resources; providing funding for the Pine Grove Zoo in Little Falls; amending Minnesota Statutes 2006, section 297A.94.

As of Wednesday, March 5, 2008, the following bills are hereby referred to the Division on Health Care and Human Services Finance.

HF House Author Title
HF2671 Urdahl A bill for an act relating to human services; requiring certain pension benefit costs to be recognized for purposes of calculating nursing facility payment rates; amending Minnesota Statutes 2006, section 256B.434, by adding a subdivision.

As of Wednesday, March 5, 2008, the following bill is hereby recalled from the Division on Health Care and Human Services Finance.

HF House Author Title
HF1812 Carlson A bill for an act relating to health; providing for an exception to the bed moratorium; amending Minnesota Statutes 2006, section 144A.071, subdivision 4c.

As of Wednesday, March 5, 2008, the following bills are hereby referred to the Division on Housing Policy and Finance and Public Health Finance.

HF House Author Title
HF3847 Murphy, E. A bill for an act relating to health; appropriating money for demonstration grants to prevent sexual violence.

As of Wednesday, March 5, 2008, the following bill is hereby recalled from the Division on Public Safety Finance.

HF House Author Title
HF0950 Carlson A bill for an act relating to crime; correcting an unintentional repeal; resuming the payment of certain bail proceeds to the municipalities and subdivisions of government in Hennepin County; reimbursing same for past due proceeds; removing obsolete references and provisions concerning the Fourth Judicial District; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 484.

As of Wednesday, March 5, 2008, the following bills are hereby referred to the Division on Transportation Finance and Policy.

HF House Author Title
HF3833 Erhardt A bill for an act relating to motor carriers; amending requirements for household goods motor carriers, including changes from system of permits to registration; removing language governing obsolete permits; making conforming and clarifying changes; amending Minnesota Statutes 2006, sections 168.013, subdivision 1e; 174.64, subdivisions 2, 4; 174.66; 221.011, subdivisions 8, 23, by adding a subdivision; 221.025; 221.026; 221.031, subdivision 1; 221.036, subdivisions 1, 3; 221.131; 221.132; 221.141, subdivision 4; 221.185; 221.221, subdivision 3; 221.291, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 221; repealing Minnesota Statutes 2006, sections 174.65; 221.011, subdivisions 24, 25, 28, 29, 38, 39, 41, 44, 45; 221.0252, subdivision 7; 221.072; 221.111; 221.121; 221.122; 221.123; 221.131, subdivisions 2a, 3; 221.141, subdivision 6; 221.151; 221.152; 221.153, subdivisions 1, 2; 221.161; 221.171; 221.172, subdivisions 3, 4, 5, 6, 7, 8; 221.296, subdivisions 3, 4, 5, 6, 7, 8.

As of Thursday, March 6, 2008, the following bills are hereby referred to the Division on Agriculture, Rural Economies and Veterans Affairs.

HF House Author Title
HF3877 Haws A bill for an act relating to veterans; increasing the per semester and annual grant amount for veterans receiving Minnesota GI Bill educational assistance for higher education; amending Minnesota Statutes 2007 Supplement, section 197.791, subdivision 5.

As of Thursday, March 6, 2008, the following bills are hereby referred to the Division on Education Finance and Economic Competitiveness.

HF House Author Title
HF3629 Slocum A bill for an act relating to education; establishing a temporary, three-year appeals process for high school seniors who do not receive a passing score on the state GRAD test; directing the education commissioner to evaluate this process and make recommendations; amending Minnesota Statutes 2006, section 120B.36, by adding a subdivision.
HF3867 Moe A bill for an act relating to higher education; appropriating money to reduce tuition at the Minnesota State Colleges and Universities.
HF3885 Norton Teachers of color pilot financial aid program established and money appropriated.
HF3347 Moe Adequate yearly progress designations appeals process clarified relating to education.

As of Thursday, March 6, 2008, the following bills are hereby referred to the Division on Health Care and Human Services Finance.

HF House Author Title
HF3869 Eken A bill for an act relating to human services; providing long-term care provider rate adjustments; providing funding for long-term care provider rate adjustments by modifying individual income tax rates; amending Minnesota Statutes 2006, section 290.06, subdivisions 2c, 2d; Minnesota Statutes 2007 Supplement, sections 256B.434, subdivision 19; 256B.5012, subdivision 7; Laws 2007, chapter 147, article 7, section 71.

As of Thursday, March 6, 2008, the following bills are hereby referred to the Division on Public Safety Finance.

HF House Author Title
HF2696 Mullery A bill for an act relating to public safety; requiring the Department of Corrections to reimburse police departments for the cost of predatory offender community notification hearings; amending Minnesota Statutes 2006, section 244.052, subdivision 4.
HF2735 Mullery A bill for an act relating to public safety; funding peace officer training in managing and policing citizens with mental and emotional problems; appropriating funds.
HF3876 Atkins A bill for an act relating to higher education; authorizing a law school loan repayment program for public defenders; appropriating money; amending Minnesota Statutes 2006, section 611.215, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 611.

As of Thursday, March 6, 2008, the following bills are hereby referred to the Division on Transportation Finance and Policy.

HF House Author Title
HF3868 Lieder A bill for an act relating to transportation finance; correcting transitional rate of special fuel excise tax on compressed natural gas; amending Laws 2008, chapter 152, article 3, section 6.


The meeting was adjourned at 10:59 A.M.


Representative Lyndon Carlson, Chair



Lill Pohlkamp, Committee Legislative Assistant
More Info On This Meeting..
House TV Video:
View Archive

11:50 - Gavel.
12:22 - HF2904 (Pelowski) Natural disaster assistance procedures established for state agencies.
21:21 - HF3346 (Davnie) Mortgage foreclosure assistance provided, and maximum amount of financial assistance increased.
39:30 - SF1436 (Hilstrom) State auditor provisions modifications.
43:49 - HF3167 (Johnson) Senior nutrition funding clarification provided.
46:13 - HF3143 (Winkler) Individual income and corporate franchise credit allowed for investment in Minnesota high technology businesses, and appropriation reduced.
49:26 - HF2805 (Mahoney) Restricted plumber licenses effective dates modified.
52:12 - HF2972 (Mahoney) Minnesota Technology, Inc. renamed Enterprise Minnesota, Inc., and related provisions updated.
1:19:15 - HF2779 (Paulsen) Lifelong learning account program established, tax credits to employees and employers for contributions to lifelong learning accounts allowed, and money appropriated.
1:25:35 - HF3349 (Rukavina) Surplus appropriation sunset provision removed.
1:37:20 - Presentation of governor's supplemental budget.
Runs 1 hour, 18 minutes.


HF2904 (Pelowski) Natural disaster assistance procedures established for state agencies.
HF3346 (Davnie) Mortgage foreclosure assistance provided, and maximum amount of financial assistance increased.
SF1436 (Hilstrom) State auditor provisions modifications
HF3167 (Johnson) Senior nutrition funding clarification provided.
HF3143 (Winkler) Individual income and corporate franchise credit allowed for investment in Minnesota high technology businesses, and appropriation reduced.
HF2805 (Mahoney) Restricted plumber licenses effective dates modified.
HF2972 (Mahoney) Minnesota Technology, Inc. renamed Enterprise Minnesota, Inc., and related provisions updated.
HF3349 (Rukavina) Surplus appropriation sunset provision removed.
HF2779 (Paulsen) Lifelong learning account program established, tax credits to employees and employers for contributions to lifelong learning accounts allowed, and money appropriated.
HF3090 (Morrow) Department of Transportation position provisions modified.

Presentation of governor's supplemental budget (10 a.m.)

HF3126 (Ruth) has been removed