HF 3702

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to state government; modifying provisions for 
  1.3             local fiscal impact notes; modifying reporting 
  1.4             requirements on local mandate costs; modifying 
  1.5             requirements for revenue targets; amending Minnesota 
  1.6             Statutes 1996, section 16A.102, subdivisions 1 and 2; 
  1.7             Minnesota Statutes 1997 Supplement, sections 3.986, 
  1.8             subdivisions 2 and 4; 3.987, subdivisions 1 and 2; 
  1.9             3.988, subdivision 3; 3.989, subdivision 2; and 
  1.10            273.1398, subdivision 8; repealing Minnesota Statutes 
  1.11            1997 Supplement, sections 3.987, subdivision 3; 3.989, 
  1.12            subdivisions 1, 3, and 4; and 14.431.  
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.15  3.986, subdivision 2, is amended to read: 
  1.16     Subd. 2.  [LOCAL FISCAL IMPACT.] (a) "Local fiscal impact" 
  1.17  means increased or decreased costs or revenues that a political 
  1.18  subdivision would incur as a result of a law enacted after June 
  1.19  30, 1997, or rule proposed after June 30, 1998: 
  1.20     (1) that mandates a new program, eliminates an existing 
  1.21  mandated program, requires an increased level of service of an 
  1.22  existing program, or permits a decreased level of service in an 
  1.23  existing mandated program; 
  1.24     (2) that implements or interprets federal law and, by its 
  1.25  implementation or interpretation, increases or decreases program 
  1.26  or service levels beyond the level required by the federal law; 
  1.27     (3) that implements or interprets a statute or amendment 
  1.28  adopted or enacted pursuant to the approval of a statewide 
  1.29  ballot measure by the voters and, by its implementation or 
  2.1   interpretation, increases or decreases program or service levels 
  2.2   beyond the levels required by the ballot measure; 
  2.3      (4) that removes an option previously available to 
  2.4   political subdivisions, or adds an option previously unavailable 
  2.5   to political subdivisions, thus requiring higher program or 
  2.6   service levels or permitting lower program or service levels, or 
  2.7   prohibits a specific activity and so forces political 
  2.8   subdivisions to use a more costly alternative to provide a 
  2.9   mandated program or service; 
  2.10     (5) that requires that an existing program or service be 
  2.11  provided in a shorter time period and thus increases the cost of 
  2.12  the program or service, or permits an existing mandated program 
  2.13  or service to be provided in a longer time period, thus 
  2.14  permitting a decrease in the cost of the program or service; 
  2.15     (6) that adds new requirements to an existing optional 
  2.16  program or service and thus increases the cost of the program or 
  2.17  service because the political subdivisions have no reasonable 
  2.18  alternative other than to continue the optional program; 
  2.19     (7) that affects local revenue collections by changes in 
  2.20  property or sales and use tax exemptions; 
  2.21     (8) that requires costs previously incurred at local option 
  2.22  that have subsequently been mandated by the state; or 
  2.23     (9) that requires payment of a new fee or increases the 
  2.24  amount of an existing fee, or permits the elimination or 
  2.25  decrease of an existing fee mandated by the state. 
  2.26     (b) When state law is intended to achieve compliance with 
  2.27  federal law or court orders, state mandates shall be determined 
  2.28  as follows: 
  2.29     (1) if the federal law or court order is discretionary, the 
  2.30  state law is a state mandate; 
  2.31     (2) if the state law exceeds what is required by the 
  2.32  federal law or court order, only the provisions of the state law 
  2.33  that exceed the federal requirements are a state mandate; and 
  2.34     (3) if the state law does not exceed what is required by 
  2.35  the federal statute or regulation or court order, the state law 
  2.36  is not a state mandate. 
  3.1      Sec. 2.  Minnesota Statutes 1997 Supplement, section 3.986, 
  3.2   subdivision 4, is amended to read: 
  3.3      Subd. 4.  [POLITICAL SUBDIVISION.] A "political 
  3.4   subdivision" is a county, home rule charter or statutory city, 
  3.5   town, or other taxing district or municipal corporation. 
  3.6      Sec. 3.  Minnesota Statutes 1997 Supplement, section 3.987, 
  3.7   subdivision 1, is amended to read: 
  3.8      Subdivision 1.  [LOCAL IMPACT NOTES.] The commissioner of 
  3.9   finance shall coordinate the development of a local impact note 
  3.10  for any proposed legislation introduced after June 30, 1997, or 
  3.11  any rule proposed after June 30, 1998, upon request of the chair 
  3.12  or the ranking minority member of either legislative tax 
  3.13  committee.  The local impact note must be prepared as provided 
  3.14  in section 3.98, subdivision 2, and made available to the public 
  3.15  upon request.  If the action is among the exceptions listed in 
  3.16  section 3.988, a local impact note need not be requested nor 
  3.17  prepared.  The commissioner shall make a reasonable and timely 
  3.18  estimate of the local fiscal impact on each type of political 
  3.19  subdivision that would result from the proposed legislation.  
  3.20  The commissioner of finance may require any political 
  3.21  subdivision or the commissioner of an administrative agency of 
  3.22  the state to supply in a timely manner any information 
  3.23  determined to be necessary to determine local fiscal impact.  
  3.24  The political subdivision, its representative association, or 
  3.25  commissioner shall convey the requested information to the 
  3.26  commissioner of finance with a signed statement to the effect 
  3.27  that the information is accurate and complete to the best of its 
  3.28  ability.  The political subdivision, its representative 
  3.29  association, or commissioner, when requested, shall update its 
  3.30  determination of local fiscal impact based on actual cost or 
  3.31  revenue figures, improved estimates, or both. 
  3.32     Sec. 4.  Minnesota Statutes 1997 Supplement, section 3.987, 
  3.33  subdivision 2, is amended to read: 
  3.34     Subd. 2.  [MANDATE EXPLANATIONS.] Any bill introduced in 
  3.35  the legislature after June 30, 1997, that seeks to impose 
  3.36  program or financial mandates on political subdivisions must 
  4.1   include At the time of a request for a local impact note, the 
  4.2   chair or ranking minority member of either legislative tax 
  4.3   committee shall request that the author of the bill for which 
  4.4   the local impact note is requested prepare an attachment from 
  4.5   the author that gives appropriate responses to the bill 
  4.6   responding to the following guidelines.  It must state and list: 
  4.7      (1) the policy goals that are sought to be attained, the 
  4.8   performance standards that are to be imposed, and an explanation 
  4.9   why the goals and standards will best be served by requiring 
  4.10  compliance by political subdivisions; 
  4.11     (2) performance standards that will allow political 
  4.12  subdivisions flexibility and innovation of method in achieving 
  4.13  those goals; 
  4.14     (3) the reasons for each prescribed standard and the 
  4.15  process by which each standard governs input such as staffing 
  4.16  and other administrative aspects of the program; 
  4.17     (4) the sources of additional revenue, in addition to 
  4.18  existing funding for similar programs, that are directly linked 
  4.19  to imposition of the mandates that will provide adequate and 
  4.20  stable funding for their requirements; 
  4.21     (5) what input has been obtained to ensure that the 
  4.22  implementing agencies have the capacity to carry out the 
  4.23  delegated responsibilities; and 
  4.24     (6) the reasons why less intrusive measures such as 
  4.25  financial incentives or voluntary compliance would not yield the 
  4.26  equity, efficiency, or desired level of statewide uniformity in 
  4.27  the proposed program; and 
  4.28     (7) the efforts put forth, if any, to involve political 
  4.29  subdivisions in the creation or development of the proposed 
  4.30  mandate. 
  4.31     Sec. 5.  Minnesota Statutes 1997 Supplement, section 3.988, 
  4.32  subdivision 3, is amended to read: 
  4.33     Subd. 3.  [MISCELLANEOUS EXCEPTIONS.] A local impact 
  4.34  note or an attachment as provided in section 3.987, subdivision 
  4.35  2, need not be prepared for the cost of a mandated action if the 
  4.36  law, including a rulemaking, containing the mandate:  
  5.1      (1) accommodates a specific local request; 
  5.2      (2) results in no new local government duties; 
  5.3      (3) leads to revenue losses from exemptions to taxes; 
  5.4      (4) provided only clarifying or conforming, nonsubstantive 
  5.5   charges on local government; 
  5.6      (5) imposes additional net local costs that are minor (less 
  5.7   than $200 $200,000 for any single local government if the 
  5.8   mandate does not apply statewide or less 
  5.9   than $3,000,000 $5,000,000 if the mandate is statewide) and do 
  5.10  not cause a financial burden on local government; 
  5.11     (6) is a law or executive order enacted before July 1, 
  5.12  1997, or a rule initially implementing a law enacted before July 
  5.13  1, 1997; 
  5.14     (7) implements something other than a law or executive 
  5.15  order, such as a federal, court, or voter-approved mandate; 
  5.16     (8) defines a new crime or redefines an existing crime or 
  5.17  infraction; 
  5.18     (9) results in savings that equal or exceed costs; 
  5.19     (10) requires the holding of elections; 
  5.20     (11) ensures due process or equal protection; 
  5.21     (12) provides for the notification and conduct of public 
  5.22  meetings; 
  5.23     (13) establishes the procedures for administrative and 
  5.24  judicial review of actions taken by political subdivisions; 
  5.25     (14) protects the public from malfeasance, misfeasance, or 
  5.26  nonfeasance by officials of political subdivisions; 
  5.27     (15) relates directly to financial administration, 
  5.28  including the levy, assessment, and collection of taxes; 
  5.29     (16) relates directly to the preparation and submission of 
  5.30  financial audits necessary or performance reporting beneficial 
  5.31  to the administration of state laws; or 
  5.32     (17) requires uniform standards to apply to public and 
  5.33  private institutions without differentiation. 
  5.34     Sec. 6.  Minnesota Statutes 1997 Supplement, section 3.989, 
  5.35  subdivision 2, is amended to read: 
  5.36     Subd. 2.  [REPORT.] The commissioner of finance shall 
  6.1   prepare by September 1, 1998 2000, and by September 1 of each 
  6.2   even-numbered year thereafter, a report by political 
  6.3   subdivisions of the costs of class A state local mandates 
  6.4   established after June 30, 1997.  
  6.5      The commissioner shall annually include the statewide total 
  6.6   of the statement of costs of class A local mandates after June 
  6.7   30, 1997, as a notation in the state biennial budget for the 
  6.8   next fiscal year.  
  6.9      Sec. 7.  Minnesota Statutes 1996, section 16A.102, 
  6.10  subdivision 1, is amended to read: 
  6.11     Subdivision 1.  [GOVERNOR'S RECOMMENDATION.] By the fourth 
  6.12  Monday in January of each odd-numbered year, the governor shall 
  6.13  submit to the legislature a recommended revenue target for the 
  6.14  next two bienniums.  The recommended revenue target must specify:
  6.15     (1) the maximum share of Minnesota personal income to be 
  6.16  collected in taxes and other revenues to pay for state and local 
  6.17  government services; 
  6.18     (2) the division of the share between state and local 
  6.19  government revenues; and 
  6.20     (3) the appropriate mix and rates of income, sales, and 
  6.21  other state and local taxes and other revenues, other than 
  6.22  property taxes, and the amount of property taxes and the effect 
  6.23  of the recommendations on the incidence of the tax burden by 
  6.24  income class. 
  6.25  The recommendations must be based on the November forecast 
  6.26  prepared under section 16A.103. 
  6.27     Sec. 8.  Minnesota Statutes 1996, section 16A.102, 
  6.28  subdivision 2, is amended to read: 
  6.29     Subd. 2.  [LEGISLATIVE BUDGET RESOLUTION.] By March 15 of 
  6.30  each odd-numbered year, the legislature shall by concurrent 
  6.31  resolution adopt revenue targets for the next two bienniums.  
  6.32  The resolution must specify: 
  6.33     (1) the maximum share of Minnesota personal income to be 
  6.34  collected in taxes and other revenues to pay for state and local 
  6.35  government services; 
  6.36     (2) the division of the share between state and local 
  7.1   government services; and 
  7.2      (3) the appropriate mix and rates of income, sales, and 
  7.3   other state and local taxes and other revenues, other than 
  7.4   property taxes, and the amount of property taxes and the effect 
  7.5   of the resolution on the incidence of the tax burden by income 
  7.6   class. 
  7.7   The resolution must be based on the February forecast prepared 
  7.8   under section 16A.103 and take into consideration the revenue 
  7.9   targets recommended by the governor under subdivision 1.  
  7.10     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
  7.11  273.1398, subdivision 8, is amended to read: 
  7.12     Subd. 8.  [APPROPRIATION.] (a) An amount sufficient to pay 
  7.13  the aids and credits provided under this section for school 
  7.14  districts, intermediate school districts, or any group of school 
  7.15  districts levying as a single taxing entity, is annually 
  7.16  appropriated from the general fund to the commissioner of 
  7.17  children, families, and learning.  An amount sufficient to pay 
  7.18  the aids and credits provided under this section for counties, 
  7.19  cities, towns, and special taxing districts is annually 
  7.20  appropriated from the general fund to the commissioner of 
  7.21  revenue.  A jurisdiction's aid amount may be increased or 
  7.22  decreased based on any prior year adjustments for homestead 
  7.23  credit or other property tax credit or aid programs. 
  7.24     (b) The commissioner of finance shall bill the commissioner 
  7.25  of revenue for the cost of preparation of local impact notes as 
  7.26  required by section 3.987 only to the extent to which those 
  7.27  costs exceed those costs incurred in fiscal year 1997 and for 
  7.28  any other new costs attributable to the local impact note 
  7.29  function required by section 3.987, not to exceed $100,000 in 
  7.30  fiscal year 1998 and $200,000 in fiscal year 1999 and thereafter 
  7.31  annually. 
  7.32     The commissioner of revenue shall deduct the amount billed 
  7.33  under this paragraph from aid payments to be made to cities and 
  7.34  counties under subdivision 2 on a pro rata basis.  The amount 
  7.35  deducted under this paragraph is appropriated to the 
  7.36  commissioner of finance for the preparation of local impact 
  8.1   notes.  
  8.2      Sec. 10.  [REPEALER.] 
  8.3      Minnesota Statutes 1997 Supplement, sections 3.987, 
  8.4   subdivision 3; 3.989, subdivisions 1, 3, and 4; and 14.431, are 
  8.5   repealed. 
  8.6      Sec. 11.  [EFFECTIVE DATE.] 
  8.7      Sections 1 to 10 are effective the day following final 
  8.8   enactment.