Legislative Update - January 8, 2018

This last day of 2017 seems like a fitting day to provide a summary of some of the Interim work being done in Bismarck since the adjournment of the 2017 65th Legislative Session. All Interim Committee minutes are available for your information at http://www.legis.nd.gov/assembly/65-2017/interim.

 I have been working on 8 Interim Committees as well as attending a number of other meetings. There are 27 Interim Committees. Most meet once a quarter and all will provide a summary report in November of 2018 of their work.

 My work with Legislative Management since adjournment has focused on determining which studies suggested by the 2017 Legislature would be assigned to committees. Additional work includes that bipartisan vote to move to litigation addressing the veto power of the Governor. I view this move as an opportunity to determine exactly what kinds of vetoes are within the scope of the office of the Governor and which vetoes are outside that scope. The case has been filed with the court and we are waiting for a determination of when the case will be heard.

 Budget Section has met 3 times since adjournment. At our December meeting we reviewed National and local economic indicators that drive our fiscal status. The increase in the price of a barrel of oil has had a positive impact on state revenues. During the session, appropriations used $47/ barrel as the average price estimated to impact our revenues during the 2017-2019 biennium. That price has been slightly below that average but is estimated to increase over the next several months. There has been an increase in the number of barrels of oil produced per day also adding to additional revenue. Revenue from sales and use taxes are also more than estimated.

 Administrative Rules is charged with quarterly meetings to hear rules being developed by agencies. At the September meeting, rules from the State Board of Pharmacy were amended to address concerns that mail order pharmacies wanted to implement. These rules would allow the pharmacist to assess whether written instructions are sufficient when dispensing a new prescription via mail or whether the pharmacist should engage the patient through a telephone conversation. I voted against this rule change because I feel it is the responsibility of the pharmacist to have a phone conversation when dispensing via mail. At the March meeting, we will receive rules from the Health Department for the medical marijuana program.

 The Agriculture Committee that I am the Vice Chairman of, met in September and December. We have been assigned studies of increasing the consistency and reduce the variability in sampling and testing of grains for vomitoxin, falling numbers, and protein. We are also looking at the nutrient management plan developed by the State Department of Health, the efficiencies of the State Soil Conservation Committee, and the feasibility of creating a state wetlands bank. At our December meeting, we had extensive testimony on the State Soil Conservation Committee and the important work they do in conjunction with other entities.

 Government Administration has been working on statutory and regulatory requirements place on our state agencies when federal funds are received. We also are studying the ND Firefighter's Association and EMS services, statements of interest, office space and property owned by Job Service ND, and the desirability of moving city and other local elections from the primary election to the general election. We heard that in the 2015-2017 biennium, the legislature appropriated an anticipated $3.683 billion in federal funds to agencies. However, we learned that only $3.278 million were used, leaving nearly $400 million of federal funds laying on the table. We learned that some of the federal funds were not received. But I was more concerned with those funds that we received and did not use. During the 2017 session, the legislature is anticipating $3.734 million of federal funds. It is important to monitor the usage of these funds as the biennium moves along.

 I am also working with several EMS services to try to understand the new funding formula implemented by the Department of Health for this current biennium. Many of our small, local services received a significant decrease in funding while the department held back $200,000 for this current fiscal year. As I work with these services, I will keep you informed. These services are essential to the safety and wellbeing of our residents.

 Legislative Procedures and Arrangements is already busy preparing for the 2019 Legislative Session. We will be working on contracts for printing costs during the session, guidelines for personal use of computers, census redistricting, use of the chambers for other activities outside of the legislative session, and Ethics. Given the issues across the country with ethics, the committee is looking at expanding the ethics training legislators and staff receive during the organization session.

 The Legislative Revenue Advisory Committee has been given the task of studying the state revenues and the forecast that provides information for the next legislative session's use. At our December meeting we heard a report on our Request for Proposal for consulting services to provide a revenue forecast. IHS Markit was the only firm responding. We heard from this consulting firm and at the end of their presentation, a motion was made and approved to hire them. I was impressed with the work they already do in their analysis of our economy in North Dakota. It seems they are ready to come forward with a forecast that is more predictable than the current one Moody's provides to the Office of Management and Budget.

 Tribal Taxation met December 15th and reviewed different taxation issues that affect not only the revenues of the reservations but also the revenues to the state. One of the main issues was the liquor tax recently approved by the MHA nation. There was also a bill draft presented that would allow the Governor and Tax Commissioner to enter in to tax agreements with the 5 tribes. That bill draft was returned to the presenter for further work and of course will not be introduced to the legislature until it meets in 2019. Spirit Lake presented some of the same taxation issues that are present on the other reservations. Work will continue to address these taxation issues.

 I am honored to be selected as one of the 15 members of the Governor's Higher Education Task Force. I have more questions than answers but think this will be an opportunity to address the bridge between high school and a career.

 I also continue to serve on the Governor's Autism Task Force. We have been working on looking at the accomplishments since the establishment of the task force in 2009 while looking at the continued needs and funds available.

 I am available to have a conversation on issues important to you and can be reached at [email protected] or on my cell phone at 701-302-0355.

 Wishing you and yours a Happy New Year.