NORTH DAKOTA LEGISLATIVE MANAGEMENT

Minutes of the

GOVERNMENT SERVICES COMMITTEE

Wednesday, July 13, 2011 Roughrider Room, State Capitol Bismarck, North Dakota

Representative , Chairman, called the 10. As appropriate, make recommendations to the meeting to order at 10:00 a.m. Legislative Management. Members present: Representatives Jeff Delzer, Glen Froseth, , , , STUDY OF OPTIONS FOR David S. Rust, , , Alon RELOCATING THE HIGHWAY Wieland; Senators Lonnie J. Laffen, Gary A. Lee, Donald Schaible PATROL TRAINING ACADEMY Members absent: Representatives Duane At the request of Chairman Delzer, the Legislative DeKrey, Matthew M. Klein, Curtiss Kreun, Bob Council staff presented a memorandum entitled Martinson, Phillip Mueller, Vicky Steiner; Senator Study of Options for Relocating the Highway Patrol David O'Connell Training Academy - Background Memorandum Others present: See Appendix A relating to the committee's assigned study to review Mr. Allen H. Knudson, Legislative Budget Analyst options for relocating the Highway Patrol training and Auditor, reviewed the Supplementary Rules of academy. The Legislative Council staff said the Operation and Procedure of the North Dakota Highway Patrol training academy was established in Legislative Management. Bismarck after receiving an appropriation from the Legislative Assembly in 1969. The Legislative Assembly appropriated $165,000 for the construction EXPANSION OF COMMITTEE DUTIES of the facility with funding from a one-time fee of Chairman Delzer distributed a letter from 50 cents assessed to each motor vehicle driver's Representative , Chairman, Legislative license that was issued during a two-year period. Management, regarding additional duties assigned to The facility was built in 1971 and consisted of two the Government Services Committee (Appendix B). classrooms, dormitory rooms containing 40 beds, and At the request of Chairman Delzer, the legislative a dining hall. The Legislative Assembly in 1995 budget analyst and auditor reviewed the following approved $1.2 million of funding for an addition to the additional committee duties: facility, which was completed in August 1997. The 1. Monitor the status of state revenues and funding was from proceeds of short-term financing expenditures for the 2011-13 biennium. provided by the State Building Authority and repaid 2. Receive input from major state agencies through a one-time assessment of an additional regarding the status of their budgets and $2 fee on motor vehicle registrations for passenger changes in federal funds. vehicles, trucks weighing 12,000 pounds or less, and 3. Receive information from state agencies house cars. The addition included space for a regarding estimated cost-to-continue items multipurpose room, four dormitory rooms, two for the 2013-15 biennium. classrooms, and an administrative office. 4. Receive the July 2012 revised 2011-13 The Highway Patrol training academy is located biennium and the preliminary 2013-15 on the south edge of the campus of Bismarck State biennium general fund revenue forecasts. College. The Highway Patrol utilizes a parking lot 5. Review projected revenues, expenditures, adjacent to the Bismarck Community Bowl and and fund balances of major state funds. Aquatics Center for an emergency vehicle operations 6. Identify and prioritize potential one-time course. The Highway Patrol does not operate a funding items for the 2013-15 biennium. shooting range. 7. Discuss possible legislative initiatives The Highway Patrol's appropriation includes a line affecting the budget, including initiatives to item for the operations of the training academy. The return excess revenues to taxpayers. source of funding appropriated to the training 8. Identify key budget issues for the academy is from the general fund and the highway 2013 legislative session. tax distribution fund. The following table lists 9. Determine, in consultation with the Office of Management and Budget, a sustainable level of spending for the 2013-15 biennium. Government Services 2 July 13, 2011 appropriations made by the Legislative Assembly Highway Patrol Training Academy - specifically for the training academy since the Basic Training Graduates for 2008, 2009, and 2010 2007-09 biennium: Number of Number of Type of Agencies Utilizing the Basic Training 2011-13 biennium $1,602,488 Agency Served Training Academy Graduates 2009-11 biennium $1,496,942 Police department 29 112 2007-09 biennium $1,401,2891 Sheriff's department 35 87 State agency 9 51 1The 2007 Legislative Assembly also authorized the Highway Patrol to transfer $100,000 of the $150,000 provided for Total 73 250 automated external defibrillators to the training academy to provide additional law enforcement and emergency services Colonel Prochniak said the training academy is training. also utilized by other state agencies and law enforcement agencies for various training activities. The Legislative Council staff presented the Colonel Prochniak said the Highway Patrol uses a following proposed study plan for consideration by private indoor shooting range for training purposes. the committee: He said an older outdoor range owned by the 1. Receive and review information regarding the Department of Corrections and Rehabilitation is also current location of the training academy, used but has limitations regarding when the range including the ability of the current location to may be used and the types of weapons that may be meet the training needs of law enforcement used. agencies in the state. Colonel Prochniak said the Highway Patrol 2. Receive and review information regarding the presented a proposal to the Legislative Assembly in feasibility and desirability of relocating the 2011 to relocate the training academy and training academy or emergency vehicle emergency vehicle operations course to a new operations course, including potential location in Bismarck. He said the proposal provided locations to relocate the facilities. for the construction of an emergency vehicle 3. Receive and review information regarding the operations course and indoor shooting range during feasibility and desirability of constructing a the 2011-13 biennium and for the construction of a shooting range for the training academy, training academy building in a future biennium. including potential locations to construct the In response to a question from Representative range. Delzer, the Legislative Council staff said the 2011-13 4. Receive information from the Highway Patrol, executive budget recommendation included funding Attorney General, local police departments, of $4,090,000 for the construction of the emergency local sheriff's offices, and other law vehicle operations course and indoor weapons range. enforcement agencies regarding the training Of the total funding, $3,558,300 was from the general needs of law enforcement agencies. fund, and $531,700 was from the highway tax 5. Receive testimony from other interested distribution fund. The Legislative Assembly did not persons regarding the committee's study of approve the funding. options for relocating the training academy or In response to a question from Representative portions of the academy. Rust, Colonel Prochniak said the proposed location 6. Develop recommendations and any bill drafts for the new Highway Patrol training academy is east necessary to implement the recom- of Bismarck, near the city landfill, and encompasses mendations. 27 acres. He said the city of Bismarck owns the land 7. Prepare a final report for submission to the where the training academy would be located. Legislative Management. In response to a question from Representative Chairman Delzer announced that without Delzer, Colonel Prochniak said the total estimated objection, the committee will adopt the proposed cost of the proposed training academy complex, study plan. including the training academy building, is Colonel James J. Prochniak, Superintendent, $23.9 million. Highway Patrol, presented information regarding the In response to a question from Representative operations of the Highway Patrol training academy Wieland, Colonel Prochniak said the city of Bismarck (Appendix C). He said the Highway Patrol training would donate the land to the Highway Patrol for the academy has a staff of six which includes a training training academy. director, field training coordinator, operations In response to a question from Representative coordinator, administrative assistant, and two cooks. Delzer, Colonel Prochniak said the Highway Patrol He said the Highway Patrol training academy training academy normally provides three 11-week provides basic and advanced training for all law basic law enforcement training courses per year. He enforcement agencies with no charges to the said a Highway Patrol trooper training course is a agencies for tuition, room, or board. He presented 26-week course. the following schedule detailing basic training In response to a question from Representative provided by the Highway Patrol training academy: Porter, Colonel Prochniak said representatives of Bismarck State College have expressed interest in Government Services 3 July 13, 2011

using the existing training academy building if the STUDY OF THE USE OF training academy is relocated. He said the current STATE-OWNED AIRPLANES insured value of the building is approximately At the request of Chairman Delzer, the Legislative $2.5 million. Council staff presented a memorandum entitled In response to a question from Representative Study of the Use of State Airplanes - Background Delzer, Colonel Prochniak said the new Highway Memorandum relating to the committee's assigned Patrol training academy facility is proposed to be in study to review the use of aircraft owned by state Bismarck due to the central location of the city and agencies, including the feasibility and desirability of because the existing training academy is located in placing all state aircraft under the control of State the city. Fleet Services. The Legislative Council staff said In response to a question from Representative excluding the North Dakota University System, five Froseth, Colonel Prochniak said Lake Region State state agencies own a total of eight airplanes. The College offers a degree in law enforcement. He said table below details the ownership of airplanes by students enrolled in the course pay tuition and fees. state agencies, including the purpose of ownership: He said the training offered by the Highway Patrol training academy is for law enforcement officers that Agency Aircraft Purpose are already employed by a law enforcement agency. Department of 1998 Beechcraft- Passenger Dr. Larry Skogen, President, Bismarck State Transportation Raytheon King Air transportation College, provided comments to the committee Department of 1977 Piper Passenger regarding the Highway Patrol training academy. He Transportation Cheyenne transportation said Bismarck State College has expanded Department of 1975 Cessna Engineering substantially since the academy was originally built. Transportation Skymaster photography He said the college could utilize the existing training Aeronautics 1980 Cessna Airport inspections academy facility space if the training academy Commission Skymaster and construction relocated. He expressed concern regarding the Game and Fish 2006 American Wildlife surveys safety of students due to the location of the Highway Department Champion Scout Patrol emergency vehicle operations course on Game and Fish 2006 Cessna 182 Enforcement campus. Department Mr. Bill Wocken, Administrator, City of Bismarck, Highway Patrol 2007 Cessna 206 Enforcement provided comments regarding the proposed location Attorney General 1965 Beechcraft Enforcement for the new Highway Patrol training academy. He Baron said the city of Bismarck has adopted a long-range plan that provides for the construction of a training The University of North Dakota (UND) owns academy at the proposed location. He said the city 72 aircraft and the UND Aerospace Foundation owns of Bismarck would provide the land to the Highway an additional 56 aircraft which are used primarily for Patrol at no cost. flight training purposes and occasionally for Chairman Delzer asked the Highway Patrol to passenger transportation. North Dakota State provide information at a future meeting regarding the University (NDSU) does not own any aircraft but maintenance costs of the existing training academy leases a King Air B200 airplane from the NDSU facility and the estimated maintenance costs for the Development Foundation for passenger proposed training academy facility. transportation purposes. Representative Porter suggested the committee The Legislative Council staff said North Dakota receive information regarding existing law Century Code Section 24-02-03.3 requires the enforcement and fire department training facilities Department of Transportation to operate a central operated by political subdivisions, the cost of vehicle management system (State Fleet Services) to constructing an interchange on Interstate 94 near the regulate the operation, maintenance, and proposed Highway Patrol training academy facility, management of all motor vehicles owned or leased and the feasibility and desirability of requiring law by the state. Each state agency that utilizes a vehicle enforcement agencies to pay a fee to access training from State Fleet Services pays a fee to State Fleet offered by the academy. He also suggested the Services for the cost of the vehicle, including committee receive information regarding options to operating costs. The fee is based on the estimated relocate the Highway Patrol's Bismarck district office costs of acquiring and maintaining the vehicle. to the proposed training academy location. The Legislative Council staff presented the Representative Delzer said the committee should following study plan for consideration by the receive information on existing state facilities in all committee: parts of the state that could be converted or made 1. Receive and review information regarding available for use as a training academy. which state agencies own or lease airplanes, the reasons why the agencies own or lease airplanes, and the frequency of use of the airplanes.

Government Services 4 July 13, 2011

2. Receive information regarding the number of Representative Porter suggested the committee staff employed by state agencies for the receive detailed information regarding the costs purpose of operating airplanes. included in the hourly fees charged by the 3. Receive and review information regarding Department of Transportation for air service. He said State Fleet Services, including the feasibility all costs for the aircraft should be reviewed, including and desirability of placing state-owned aircraft pilot training and funding reserves for engine under the control of State Fleet Services. replacement and aircraft maintenance. Chairman 4. Receive testimony from other interested Delzer asked the Department of Transportation to persons regarding the committee's study of provide the information at a future meeting. the use of state-owned airplanes. In response to a question from Senator Laffen, 5. Develop recommendations and any bill drafts Mr. Ziegler said he would provide the committee with necessary to implement the recommen- information at a future meeting regarding the total dations. cost of operating each airplane for the past two 6. Prepare a final report for submission to the years. Legislative Management. In response to a question from Representative Chairman Delzer announced that without Delzer, Mr. Ziegler said the Department of objection, the committee will adopt the proposed Transportation employs a part-time temporary study plan. employee to schedule airplane service and to coordinate flights among agencies. He said he would Department of Transportation Aircraft provide additional information to the committee at a Mr. Francis Ziegler, Director, Department of future meeting regarding the position. Transportation, presented information regarding aircraft owned by the department and the operations State Fleet Services of State Fleet Services (Appendix D). He said the Mr. Ziegler said State Fleet Services is department provides air transportation service to responsible for all state-owned vehicles, including the several state agencies, including the Governor's purchase and maintenance of the vehicles. He said office. He said the department has four permanent vehicles that are due for replacement or are no employees to provide air service which includes three longer needed are sold at public auction. He pilots and a maintenance manager. He said the presented the following information regarding the department also has a temporary employee to number of vehicles operated by State Fleet Services: provide aircraft scheduling services and several temporary part-time pilots available as needed. Number of Vehicles Mr. Ziegler presented the following schedule Vehicle Type (as of July 2010) regarding aircraft owned by the Department of Sedans and passenger vehicles 1,365 Transportation: Pickups and other utility vehicles 1,321 Trucks and other heavy vehicles 573 Flight Hours Total 3,259 Aircraft Passenger Capacity 2008 2009 2010 1975 Cessna 1 pilot, 1 passenger (also 142 191 403 Mr. Ziegler said approximately 420 vehicles are Skymaster contains photography located at 10 motor pool locations throughout the equipment) state that may be reserved for daily use by any state 1977 Piper 2 pilots, 5 passengers 190 110 133 agency. He said the remaining vehicles are assigned Cheyenne to a specific agency based on the needs of the 1998 2 pilots, 7 passengers 288 216 242 agency. Beechcraft- Mr. Ziegler said each agency is charged a per Raytheon mile or per hour fee for the use of a State Fleet King Air Services vehicle. He said the fee is used to pay the Mr. Zeigler said the Department of Transportation operating and replacement costs of the vehicle. charges other agencies a fee for providing air transportation services. He said the fees are used to Committee Discussion recover costs relating to the operation of the aircraft Representative Porter said the feasibility of and are not used to generate a profit. He presented operating certain airplanes should be reviewed. He the following schedule detailing the current rates said replacement parts for older aircraft may be charged to other agencies for air service: difficult to obtain. He said it may be more efficient to operate newer airplanes but reduce the total number of airplanes owned by the state. Representative Froseth suggested the committee Aircraft Rate Per Hour 1975 Cessna Skymaster $413 receive information regarding the cost of using 1977 Piper Cheyenne $923 commercial air service in the state. He said it may be 1998 Beechcraft-Raytheon King Air $995 more economical for state agencies to utilize Government Services 5 July 13, 2011 commercial air service rather than owning and related legislation for each state agency. The report operating an aircraft. also includes an analysis of major special funds and Captain Dave Kleppe, Support Services statistical information. Commander, Highway Patrol, said the Highway Chairman Delzer asked the Legislative Council Patrol operates a 2007 Cessna Model 206 airplane. staff to provide information to the committee He said the airplane has specialized equipment, regarding total costs associated with state employee including a thermal imaging system and software to salaries and fringe benefits. assist in conducting ground searches. Ms. Sheila Peterson, Director of Fiscal Mr. Larry Taborsky, Director, North Dakota Management, Office of Management and Budget, Aeronautics Commission, said the commission has a presented information regarding the status of the 1980 Cessna Skymaster airplane that is used to general fund and other state budget information travel to airports in the state to inspect operations. (Appendix E). She presented the following He said the Department of Transportation information on the status of the general fund for the occasionally uses the commission's airplane when 2009-11 biennium based on revenue collections needed. through May 2011: In response to a question from Representative Unobligated general fund $361,843,514 Delzer, Representative Porter said the Legislative balance - July 1, 2009 Assembly in 2011 authorized the Aeronautics Add Commission to replace its airplane. General fund collections $3,045,520,450 Chairman Delzer said the committee would through May 31, 2011 receive information at future meetings regarding Forecasted general fund 142,356,064 airplanes owned by other state agencies, including revenue for the remainder maintenance costs, hours of service, the per hour of the 2009-11 biennium (based on the April 2011 operating cost of the airplane, specialized equipment legislative forecast) for the airplane, and the justification for the agency to Transfer estimated balance 676,723,993 own the airplane. from permanent oil tax trust The committee recessed for lunch at 12:00 noon fund and reconvened at 1:00 p.m. Total estimated general fund $3,864,600,507 revenue for the 2009-11 OTHER COMMITTEE RESPONSIBILITIES biennium Balance obligated for 76,383,530 At the request of Chairman Delzer, the Legislative authorized carryover from Council staff reviewed a memorandum entitled Other the 2007-09 biennium Responsibilities of the Government Services Estimated total available $4,302,827,551 Committee - Background Memorandum. The Less Legislative Council staff said the Government 2009-11 biennium general ($2,970,380,754) Services Committee was assigned the responsibility fund ongoing appropriations to review agreements proposed by state agencies 2009-11 biennium general (278,984,727) with the state of South Dakota. Section 54-40-01 fund one-time appropriations provides that an agency, department, or institution Contingent appropriation (5,000,000) may enter an agreement with the state of South for centers of excellence Dakota to form a bistate authority to jointly exercise (2009 SB 2018) any function that the entity is authorized to perform Contingent appropriation (5,000,000) by law. Any proposed agreement must be submitted for school district to the Legislative Assembly or, if the Legislative transportation Assembly is not in session, to the Legislative (2009 HB 1013) Management, or a committee designated by the Balance obligated for (76,383,530) Legislative Management, for approval or rejection. authorized carryover from the 2007-09 biennium The agreement may not become effective until Recommended (37,230,168)1 approved by the Legislative Assembly or the supplemental appropriations Legislative Management. Total appropriations and ($3,372,979,179) estimated deficiency STATE BUDGET INFORMATION requests At the request of Chairman Delzer, the Legislative Estimated transfer to the ($61,414,562)2 Council staff presented an overview of the Legislative budget stabilization fund Council report entitled 62nd Legislative Assembly Add State Budget Actions for the 2011-13 Biennium. The Estimated unspent 20,103,000 authority report provides information on legislative changes to Estimated general fund $888,536,810 the executive budget, full-time equivalent positions, balance - June 30, 2011 ongoing and one-time general fund appropriations, federal fiscal stimulus funding, major programs, and Government Services 6 July 13, 2011

1Recommended supplemental (deficiency) appropriations include: Ms. Peterson presented information regarding State Treasurer ($35,000,000) general fund revenue estimates for the 2011-13 Tax Department (1,810,000) biennium. She said the legislative forecast estimates Industrial Commission (150,000) $2.8 billion of revenue will be deposited in the Department of Public Instruction (211,264) general fund, and major revenue sources include Valley City State University (58,904) sales and use tax ($1.4 billion) and individual income ($37,230,168) tax ($545 million). She said $619 million will be 2This estimated transfer is based on the maximum balance allowed transferred from other funds to the general fund, in the budget stabilization fund as a percentage of 2011-13 including a transfer of $305 million from the strategic legislative general fund appropriations. investment and improvements fund and a transfer of Ms. Peterson presented the following information $295 million from the property tax relief sustainability on the status of the permanent oil tax trust fund for fund. the 2009-11 biennium: Ms. Peterson provided an overview of the executive budget process. She said the Office of Beginning permanent oil tax trust fund balance - $489,727,017 Management and Budget (OMB) releases budget July 1, 2009 instructions and guidelines to agencies at the Add beginning of each even-numbered year. She said Revenue collections through fiscal year 2010 429,798,186 state agencies develop budgets which are submitted Revenue collections fiscal year 2011 through 395,425,554 to OMB for review. She said the executive revenue May 31, 2011 forecast is completed in November, and budget 1 Forecasted revenues for the remainder of 143,607,494 recommendations are finalized for presentation at the fiscal year 2011 organizational session of the Legislative Assembly. Total estimated funds available for the 2009-11 $1,458,558,251 In response to a question from Senator Lee, biennium Representative Delzer said the Legislative Assembly Less expenditures and transfers Transfer to the general fund (2009 HB 1015) ($140,000,000) in 2011 did not provide for a 2011-13 biennium transfer to the general fund from the profits of the Transfer to the general fund for mill levy (295,000,000) reduction grants program (2009 SB 2199) Bank of North Dakota. Transfer to the property tax relief (299,233,000) In response to a question from Representative sustainability fund (2009 SB 2199 and 2011 Delzer, Ms. Peterson said she would provide SB 2023) information to the committee at a future meeting Transfer to the state disaster relief fund (22,000,000) regarding any projected variances in oil and gas (2011 SB 2369) production tax and oil extraction tax collections for Appropriations (2009 HB Nos. 1015, 1305, (16,175,100) the 2011-13 biennium. and 1394 and SB Nos. 2003 and 2020) In response to a question from Representative Appropriation authority continued from (9,426,158) Froseth, Representative Delzer said the Legislative previous biennium Assembly in 2011 eliminated the permanent oil tax Transfer remaining balance to the general (676,723,993) trust fund. He said the elimination of the fund does fund not affect the distribution of oil and gas production Estimated permanent oil tax trust fund balance - taxes to political subdivisions. June 30, 2011 $0 1This estimate assumes June 2011 and July 2011 revenues equal $71.8 million per month, the same as the amount collected in COMMITTEE DISCUSSION May 2011. AND STAFF DIRECTIVES Chairman Delzer announced that the next Ms. Peterson presented information on general committee meeting will be in late 2011. fund revenue collections for May 2011 and the The meeting was adjourned at 2:00 p.m. subject 2009-11 biennium to date. She said general fund to the call of the chair. revenues collected biennium to date are 8.4 percent more than the 2009 legislative forecast. She said interest income has exceeded estimates by ______$6.1 million, or 25.3 percent. She said biennium to Brady A. Larson date motor vehicle excise tax collections have also Fiscal Analyst exceeded estimates by $35.2 million, or 42.7 percent.

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