April 1, 2008

 

Intergovernmental Services Weekly Legislative Update

Week of Monday, March 31, 2008.

 

 

Transportation

 

2007 Transportation Policy Conference Committee Report

The same House and Senate Transportation Policy Conference Committee that was appointed last year amended and passed last year’s 2007 transportation policy bill HF 1351/SF 1971 out of conference committee on Friday, March 28, 2008, on a unanimous voice vote.  The conferees were:

 

Senator Steve Murphy                            Representative Frank Hornstein

Senator Michael Jungbauer                      Representative Mike Nelson

Senator Rod Skoe                                  Representative Shelly Madore

Senator Jim Carlson                               Representative Melissa Hortman

Senator Ann Rest                                   Representative Connie Ruth

 

The bill was amended, but the changes were minor and dealt with extending dates out an additional

year, modifying dates, removing obsolete and duplicative sections and other miscellaneous changes.

 

Miscellaneous changes of interest to counties include:

·          Modifying county regional rail authority transit funding limits, to change language already enacted.

·          Adding an exception for commitments made as part of an application for federal funds and making other technical changes.

·          Modifying the rail transit feasibility study on the I-394 corridor to be discretionary.

·          Adding a repeal of a prohibition of light rail transit facility construction until construction is started on the Central Corridor.

An additional amendment was added stating, it is the intent of the legislature to study, during the 2010 legislative session, the effects of the section in this chapter that increase allowable size, weight, or load limits on state or local roads or bridges, and to modify statutes as necessary to achieve the goals of promoting mobility while protecting the infrastructure.  Sen. Murphy stated that the transportation committees would not entertain any proposals dealing with weight limit issues during the 2009 legislative session.

 

The provisions in the rest of the bill from last session include:

·          Allowing political subdivisions to enter properties for purposes of performing geotechnical investigations.

·          Requiring acquiring authorities to cooperate to the fullest extent possible with federal departments and agencies during the acquisition process.

·          Requiring acquiring authorities to pay a maximum relocation benefit of $50,000 for non-residential moves.

·          Allowing MNDOT to advertise for bids on the Internet and removes the requirement that they must publish bids in the newspaper or other periodicals.

·          Allowing MNDOT to enter into privatization contracts for trunk highway maintenance after assessing cost effectiveness.

·          Allowing bridge inspections not to exceed two years for bridges and four years for culverts.

·          Repealing an outdated statute that limited weight on nine ton roads to 73,280 lbs and allows the current federal weight of 80,000 lbs. on nine ton paved routes.

·          Expanding the definition of unfinished forest products related to gross weight limitations and allows up to 99,000 lbs during the time seasonal increase are authorized.

·          Removing weight restrictions for tow trucks when towing a damaged vehicle during an emergency.

·          Authorizing road authorities to issue annual permits ($300.00) for six axle vehicles hauling agricultural products up to a gross weight of 90,000 lbs or 99,000 lbs during the time when seasonal increases are authorized.

·          Authorizing road authorities to issue annual permits ($500.00) for seven axle vehicles hauling agricultural products up to a gross weight of 97,000 lbs and 99,000 during the time when seasonal increases are authorized.

·          Repealing the sunset date applied to milk haulers for hauling milk from the point of production to the point of first processing.

·          Requiring MNDOT to develop, conduct and administer highway construction training.

·          Requiring MNDOT to sanction each contractor who does not meet the established project disadvantaged business enterprise goal and report to the House and Senate Transportation Committees by February 1st of each odd-numbered year.

·          Requiring MNDOT to perform life-cycle cost analysis on each project in the reconditioning, resurfacing and road repair funding categories beginning in August of 2011 and report annual to chairs of the House and Senate Transportation committees and ranking minority members.

·          Requiring MNDOT to submit an annual major projects report.

·          Prohibiting a county regional rail authority from contributing more than ten percent of the capital costs on a transit project.

·          Prohibiting a county regional rail authority from contributing any funds to pay for the operating and maintenance costs on a transit project.

·          Requiring the Metropolitan Council to carry out a performance evaluation of the metropolitan area’s transportation system as a whole and update the evaluation every two years.

·          Allowing the use of the design-build method for the project development and construction of light rail transit.

·          Requiring the Department of Public Safety to submit a proposal on establishing a system that would allow credit card and debit card payments for vehicle registration taxes, motor vehicle certificates of title, motor vehicle sales taxes, driver’s licenses, and MN ID cards.

·          Requiring MNDOT to conduct a study on the speed limit on local roads.

·          Requiring MNDOT and the Metropolitan council to conduct a study on transportation services for persons with disabilities.

 

Other transportation-related bills that made progress this week include:

 

Modifications to design-build requests for proposals

HF 3301 proposes to modify provisions relating to design-build requests for proposals, scoring, project awards, and protests and requires disclosure of reasons for change in stipulated fees was heard in the House Transportation Finance committee and re-referred to Finance.

 

Increased fees for driver and vehicle services in the Department of Public Safety

H. F. 4100 proposes to increase vehicle registration renewals by $1.75 that would be used to upgrade technology for the Driver and Vehicle Services Division of the Department of Public Safety.  The bill was amended and re-referred to House Finance.

 

Report required on impacts to small business

HF 4055 would require MNDOT to report on mitigating effects of transportation construction projects on small businesses.   The bill was amended and re-referred to Finance.

 

Implements of Husbandry bill becomes House Supplemental Bill

HF 3805 that was Rep Morrow’s implements of husbandry bill was subject to a delete everything amendment and has become the House Transportation Supplemental Bill.  Of interest to transportation advocates is that the bill basically restores the cuts to Greater Minnesota and Metropolitan transit that was proposed by the governor.

 

For more information, contact:  Carol Lovro, AMC Policy Analyst

 

Public Safety

 

This past week both the House and Senate released their budget plans.  As you may recall, Gov. Pawlenty proposed cuts of $2.5 million for Short Term Offender (STO) reimbursement and $600,000 for Sentence to Service (STS) grants.

 

The House budget plan is slightly better for counties.  The House committee cut $1.5 million for STO and the same $600,000 for STS.  They also take $344,000 from the Department of Corrections (DOC) operations support budget; this is not part of the governor’s recommendations.  In other areas of the public safety bill, the House proposes similar cuts to DPS as the governor, though they have slightly different priorities.  They also cut the budget for the courts, but much less dramatically than the governor.  In sum, the bill includes $5.45 million less in cuts than the governor’s proposal.

 

The Senate leadership’s budget targets require that the Public Safety Committee make much more dramatic cuts.  In addition to cutting $1.25 million for STO’s and $600,000 for STS, the committee proposed a cut of $1.568 million to the DOC Community Services budget.  This area of the budget includes the CCA subsidy, CPO reimbursement and other grant and pass-through funds to counties.  DOC was given discretion in the Senate proposal as to where the cuts will come from in that area, making it hard to say exactly what the impact to counties will be, but it is safe to say it will be in the neighborhood of the $3.1 million in cuts the governor proposes.  In other areas of the Senate plan, the courts receive a larger cut than the House proposal, but several million less than the governor, and DPS receives a slightly larger cut than the proposed by the House or the governor.  There was discussion in the Senate Finance Committee Friday afternoon about the possibility of improving the overall target for Public Safety to assist counties.

 

For more information contact:  Ryan Erdmann, AMC Policy Analyst

 

 

Health and Human Services

 

Health care reform

SF 3099 (Berglin), the Senate health reform bill, passed the Senate floor Thursday after three hours of debate and amendments. The governor had indicated earlier in the week that he would likely veto this bill, as it lacked Republican legislative support.  However, a provision related to the Health Insurance Exchange was removed to gain the support of the Republican legislators and the governor.  Elements related to health care home and expanding MinnesotaCare, while still controversial, remain in the bill.  Also still included is the funding for the statewide health improvement plan, which would fund county, multicounty, and city public health departments for health promotion activities to reduce obesity and other health risk factors.

 

Supplemental budget bill

The Senate also heard the Senate supplemental HHS budget bill (no bill number as it will be rolled into a larger omnibus bill). This bill reduces General Fund spending by $200 million in FY08-09 by:

·          Delaying cost of living increases (COLAs) for nursing homes;

·          Delaying rebasing of inpatient hospital payments;

·          Delaying payments to counties by one month ($7.7 million);

·          Cutting all DHS and MDH grants by 1.7% (for savings of about $6 million);

·          Refinancing some TANF dollars to general fund;

·          Reducing community provider rates by 3%;

·          Capturing reserves from health plans above a certain level (this includes county-based purchasing);

·          Capping health plan administrative expenses at 8% (this includes county-based purchasing);

·          Withholding federal payments to counties for state operated services if over 90 days past due;

Unlike the governor’s budget, the bill does not use the Health Care Access Fund to balance the budget (see update above). It also retains some increases in MinnesotaCare and MFIP passed last session, which the governor had proposed eliminating.

 

Child protection

HF 3615 (Loeffler), which would have provided funding for child protection, was heard in HHS Finance and amended to remove the funding language and require a study by DHS in consultation with counties.  This bill had sought one-time funding to replace federal targeted case management dollars reduced as part of the 2006 deficit reduction act.

 

County-based purchasing

HF 3380 (Liebling) passed House HHS Finance with significant amendments. Language that would have allowed county-based purchasing as a single plan in Olmsted, Fillmore, Houston, Winona, and Mower (Stedfast Health Plan) was removed.  Language allowing Stedfast to be selected as the “default plan” was adopted.  The bill now goes to the full Finance committee.  The bill has not yet been heard in Senate Finance.  Language requiring county-based purchasing to meet similar reserve requirements as health plans and to spend revenues after expenses on health, public health, and prevention, is moving forward in the supplemental budget bill.

 

Upcoming events:

The House health reform bill HF 3391 (Huntley) will be heard in full Finance committee Monday and is expected to reach the floor later this week.  The supplemental budget bill, now in a large omnibus bill which includes all divisions, will also likely be heard on the floor this week.

 

On April 1, The HHS Finance Committee will hear SF 3181, the Stedfast (southeastern Minnesota) county-based purchasing bill. The committee will also hear SF 3322, which implements recommendations of the legislative auditor’s report on health care administration related to county-based purchasing and health plans.

 

For more information contact:  Patricia Coldwell, AMC Policy Analyst

 

General Government and Taxes

 

House and Senate Budget bills take shape

The House and Senate have both wrapped all supplemental budget bills into one package and have begun moving them through the committee process.  The House tax committee will take up HF 1812  Monday, March 31 and will then send the bill on to Ways and Means, the bill’s last stop before reaching the floor.  On the senate side, Finance compiled the bill March 28 and it is expected that the senate bill will find its way to the floor in the near future.  Speculation continues as to whether the omnibus budget bill will be joined with the tax bill before both are sent to the governor’s desk.  Traditionally the two bills move separately, however, both are dependent on one another to maintain a balanced budget so it is possible they could be moved as one piece of legislation.  The House tax bill has not yet been crafted and likely will be unveiled in the coming weeks.

 

Upcoming events:

 

March 31– House Taxes will hear the omnibus budget bill HF 1812 and receive testimony on legislation that would repeal all corporate subsidies in exchange for a reduction on the corporate tax rate.

 

For more information contact:  Joe Mathews, AMC Policy Analyst

 

*ADMINISTRATORS /AUDITORS:  Please share a hard copy of all AMC UPDATE emails with any county board members who do not have email.

**If you do not wish to receive these emails in the future, please reply to this message with the word ‘REMOVE’ in the subject line.

Association of Minnesota Counties

125 Charles Avenue

Saint Paul, MN 55103-2108

Phone: 651.224.3344, Fax: 651.224.6540

www.mncounties.org