HF 1662

as introduced - 91st Legislature (2019 - 2020) Posted on 03/05/2020 08:09pm

A bill for an act
relating to higher education; establishing a new measurement of economic welfare;
requiring the inclusion of the economic measure in the state budget forecast;
requiring a report; appropriating money; amending Minnesota Statutes 2018,
section 16A.103, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapter 137.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 16A.103, subdivision 1, is amended to read:

Subdivision 1.

State revenue and expenditures.

In February and November each year,
the commissioner shall prepare a forecast of state revenue and expenditures. The November
forecast must be delivered to the legislature and governor no later than the end of the first
week of December. The February forecast must be delivered to the legislature and governor
by the end of February. Forecasts must be delivered to the legislature and governor on the
same day. If requested by the Legislative Commission on Planning and Fiscal Policy,
delivery to the legislature must include a presentation to the commission. new text begin Each forecast
document must compare the genuine progress indicator value derived under section 137.45
against other measures of state economic growth or well-being included in the forecast.
new text end

Sec. 2.

new text begin [137.45] GENUINE PROGRESS INDICATOR.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "genuine progress indicator"
means a measure of economic welfare that includes but is not limited to the following
components:
new text end

new text begin (1) household budget expenditures adjusted for income inequality;
new text end

new text begin (2) defensive and regrettable expenditures that do not contribute to welfare;
new text end

new text begin (3) the value of household investments;
new text end

new text begin (4) the costs of income inequality;
new text end

new text begin (5) the value of publicly provided goods and services;
new text end

new text begin (6) the value of services from human capital including the benefits of higher education,
manufacturing jobs, and green jobs;
new text end

new text begin (7) the value of services from social capital, including the value of leisure time, unpaid
labor, and Internet services;
new text end

new text begin (8) the value of services from built capital, including the value of transportation, water,
and household infrastructure;
new text end

new text begin (9) the value of services from protected natural capital;
new text end

new text begin (10) the costs of natural capital depletion and degradation;
new text end

new text begin (11) the costs of pollution;
new text end

new text begin (12) the social costs of economic activity, including the costs of homelessness,
underemployment, crime, commuting, and vehicle accidents; and
new text end

new text begin (13) other components described in current academic literature.
new text end

new text begin Subd. 2. new text end

new text begin Calculation. new text end

new text begin The Bureau of Business and Economic Research at the University
of Minnesota, in consultation with the Center for Sustainable Economy and other relevant
academic departments and the advisory board established in this section, shall calculate a
genuine progress indicator for the state.
new text end

new text begin Subd. 3. new text end

new text begin Report required. new text end

new text begin (a) By January 15 of each year, the board shall report to the
senate Finance Committee, the house of representatives Ways and Means Committee, the
house of representatives State Government Finance Committee, and the legislative
committees with jurisdiction over economic development and higher education an estimate
of a genuine progress indicator for the previous year. At a minimum, the report must describe
recent changes in the indicator, the components of the indicator that changed significantly
during the previous year, and a comparison of the indicator with other measures of state
economic growth or well-being.
new text end

new text begin (b) The board must make available on its website the report required in this subdivision
and the data used to calculate its components.
new text end

new text begin Subd. 4. new text end

new text begin Advisory board. new text end

new text begin The Board of Regents shall establish an advisory board to
guide the work of the Bureau of Business and Economic Research on the genuine progress
indicator. The board must include legislators, the state economist, the state demographer,
representatives of relevant executive branch agencies, and representatives of relevant
nonprofit research organizations.
new text end

Sec. 3. new text begin APPROPRIATION; GENUINE PROGRESS INDICATOR.
new text end

new text begin $200,000 in fiscal year 2020 and $200,000 in fiscal year 2021 are appropriated from the
general fund to the Board of Regents of the University of Minnesota for the Bureau of
Business and Economic Research to calculate a genuine progress indicator for the state and
report the results, as described in Minnesota Statutes, section 137.45.
new text end