Supplemental budget conference committee works late for more agreement

UPDATED: 11:21 p.m.

More than a week after first convening, the omnibus supplemental budget conference committee met again Wednesday evening to try and reach agreement on the final articles of HF4099/SF3656* – a compilation of many of this session’s major omnibus bills.

Conferees first met May 8 to begin learning about the differences between the House and Senate versions of the bill, sponsored by Rep. Jim Knoblach (R-St. Cloud) and Sen. Julie Rosen (R-Vernon Center) – who co-chair the committee. Negotiations have been ongoing to find common ground that will allow a final bill to be repassed by both bodies and, hopefully, signed into law by Dayton.

The group is expected to reconvene sometime Thursday to finish the health and human services discussion it began Tuesday.

Here’s what was agreed upon Wednesday by the conference committee:

State government finance

House and Senate leaders tasked with closing the $6.79 million gap between each body’s position in the state government finance provisions found some middle ground – and it looks like the Revenue and Human Rights departments dodged a multi-million spending reduction bullet. But the administration voiced frustration and concern over proposed reforms on how state agencies budget for cybersecurity.

The latest numbers reflect a $1.62 million spending increase, which is much closer to the Senate’s initial position of a $1.55 million increase than the House’s $5.24 million cut. The governor initially proposed a $34.44 million spending increase.

The proposed conference committee report doesn’t include the House’s $3.88 million spending reduction to the Revenue Department or the $1.4 million reduction to the Human Rights Department’s operating budget. However, the report does include:

• allocating $1.53 million from the Special Revenue Fund for the secretary of state to modernize the voter registration system;
• directing Minnesota Management and Budget to spend $140,000 to reimburse Becker and Wright counties for State Auditor Rebecca Otto’s lawsuit against them;
• a one-time $269,094 general reduction to the state auditor’s office that specifically can’t be taken out of public pensions funding; and
• an expected $10,000 revenue reduction to the Cosmetology Examiners Board.

The proposal scraps a House provision that would move $26 million from the Vikings stadium fund into the General Fund to pay for three veterans homes in Bemidji, Montevideo and Preston; that measure was tacked onto the House capital investment bill. The proposed conference committee report also includes policy provisions that would:

• move MN.IT under the Department of Administration and require state agencies to dedicate 3.5 percent of their budget to cybersecurity;
• keep state government working in case of a “declared emergency”;
• better protect online information about home-based businesses;
• require MN.IT to work with local governments before fully implementing new software affecting them and requiring state agencies to dedicate 3.5 percent of its funding to cybersecurity;
• exempt hair braiders and eyelash extension technicians from being licensed by the cosmetology board; and
• require the Minnesota Amateur Sports Commission to bid for a Nordic World Cup Skip Championship.

Energy

After reaching agreements on the jobs, economic development and housing articles earlier this week, the conference committee has found common ground on several provisions dealing with energy.

The committee adopted the jobs and energy appropriations and policy articles, as amended, as well as an updated version of the spreadsheet that had been adopted earlier in the week.

Among the things these articles would do:

• create the Prairie Island Net Zero Project and appropriate money from the Renewable Development Account for grants to the Prairie Island Indian Community so it can develop an energy system that results in net zero emissions;
• cap how much Xcel Energy pays into the Renewable Development Account, so it’s a flat rate and not based on how many casks of spent nuclear fuel it is storing Minnesota;
• establish a biomass business compensation claims process that includes appropriations from the Renewable Development Account;
• increase the maximum capacity of solar energy systems eligible for incentives through Xcel Energy’s Solar Rewards Program;
• require the Public Utilities Commission to allow utility companies to include pension costs in their rate base;
• shorten the time the Public Utilities Commission can extend a decision on issuing certain applications for large electric generating facilities; and
• repeal Xcel Energy’s wind mandate, which it achieved in 2002.

The committee did not adopt a section in the policy article that would have required the Public Utilities Commission to relocate to Virginia, Minn. Commerce Commissioner Jessica Looman testified against this provision, saying it would increase costs and limit the department’s ability to be effective.

Looman also shared concerns about several other provisions, including capping how much Xcel pays into the Renewable Development Account and utilities being able to include pension costs in their rate base, but added the articles also contain good items, without being specific.

An item not included in the articles the committee considered Wednesday was a controversial proposal to give Xcel Energy more “regulatory certainty” when it comes to doing work on its nuclear power plants.

Public Safety

The public safety agreement includes $10 million in additional funding, of which $6.6 million is designated to the Department of Corrections to cover the department’s health care contract. The department sought $7.8 million, a number the governor put forth in his supplemental budget.

Corrections Commissioner Tom Roy said last month that Fiscal Year 2019 health contract funding was not included in last year’s budget law because the department was negotiating the contract at that time. He said the Legislature directed the department to submit the request this year with final numbers known, which came in $3 million lower than last year’s request.

To make up the difference, money would likely be shifted from treatment areas, creating further concern about corrections officer safety and that inmates won’t be as well-suited for life upon release.

Other proposed spending includes $2.94 million for the Guardian ad Litem program in Fiscal Year 2019 to help comply with state and federal mandates to represent the best interests of children in juvenile and family court proceedings. The House proposal called for nearly $3.67 million, which would create 45.5 full-time equivalent positions. The Senate position was no additional dollars.

The agreement also calls for $275,000 for two forensic scientists at the Bureau of Criminal Apprehension and $48,000 for the newly created Task Force on Missing and Murdered Indigenous Women.

A $2 technology fee now charged on certain court filings would be extended five years until June 30, 2023. Money goes into a court technology fund, which provides funding for court technological needs.

Policy provisions in the agreement include:

• before a DWI offender could be re-licensed to drive, use of an ignition interlock system for one year would be required if it is a second impaired driving incident in 10 years or a third lifetime offense;
• enhancing the penalty from a misdemeanor to a gross misdemeanor for driving without a license if the person driving after a loss of driving privileges were to cause a crash that results in substantial bodily harm or death, or commits the violation for a third time or more in a 10-year period in most circumstances;
• increase the penalty from a misdemeanor to a gross misdemeanor for someone who intentionally obstructs traffic “that is entering, exiting, or on a freeway or entering, exiting, or on a public roadway within the boundaries of airport property with the intent to interfere with, obstruct, or otherwise disrupt traffic”;
• establishing a felony for trespassing on property that contains a utility, oil or gas pipeline, or transportation facility with the intent to cause damage or interfere with operations;
• make an adult who was in a position of authority over a 16- or 17- year- old within the past 120 days subject to criminal penalties for having a sexual relationship with the juvenile;
• extend the definition of position of authority to cases where an adult “assumed” authority over a victim;
• provide that in most circumstances, an action to declare non-paternity must be brought within three years of when a person believes the father listed on the recognition of parentage is not the child’s father; and
• toughening various child pornography crimes, including an increase in the statutory maximum penalties for crimes that involve a victim under age 13.