Council Meeting Information

May 13, 2008

Room B-63 Herschler Building

Cheyenne, Wyoming

 

Council Members Present

Representative Roy Cohee, Chairman

Senator John Schiffer, Vice Chairman

Senator Jim Anderson

Senator John Hines

Senator Mike Massie

Senator Jayne Mockler
Senator Tony Ross

Representative Tom Lockhart

Representative Tom Lubnau

Representative Marty Martin

Representative Bill Thompson

 

Council Members Absent

Senator Ken Decaria

Representative Colin Simpson

 

Legislative Service Office Staff

Dan J. Pauli, Director

Mark Quiner, Assistant Director

Dave Gruver, Assistant Director

Wendy K. Madsen, Legislative Information Officer

Anthony Sara, Associate Legislative Information Officer

 

Others Present at Meeting

Please refer to Appendix 1 to review the Council Sign-in Sheet
for a list of other individuals who attended the meeting.

Executive Summary

The Council met for a half-day meeting in Cheyenne on May 13, 2008.  The Council considered an issue related to the Board of Nursing rules and concerns about the promulgation of those rules.  The Council considered a variety of issues related to legislator per diem and compensation, including IRS regulations related to election of a tax home, a draft policy related to the payment of actual expenses in lieu of per diem, conforming travel policies to the new per diem rate and legislatively directed duties without compensation.  The Committee also considered budget and topic requests from the Revenue Committee, Travel Committee, and Joint Judiciary Committee.  The Council considered a variety of miscellaneous topics including a proposal from the State Treasurer to invite legislators to participate in a state investment advisory committee, a request for funding for videoconferencing equipment in Room 302, and personnel issues.     

 

Call To Order

Chairman Cohee called the meeting to order at 1:05 p.m.  The following sections summarize the Council proceedings by topic.  Please refer to Appendix 2 to review the Council Meeting Agenda.

 

Approval of Minutes

Minutes from the January 24, 2008 and the March 6 and 7, 2008 Council meeting were approved without any changes. 

 

Administrative Rules

Senator Mockler requested that Council remove the Board of Nursing rules from the Council’s consent list for discussion at the request of Mr. Tom Jones, representing the Wyoming Health Care Association.  The LSO rule review found that the rules were within the scope of statutory authority and legislative intent, but Mr. Jones raised concerns with the rulemaking process and one substantive aspect of the rules. 

 

Mr. Jones stated that although the Board of Nursing conducted a public meeting regarding the rules, he and his clients had not received notice of the proposed revisions to the rules until very late in the process.  He also raised concerns about the duties authorized for certified nurse aides.  Mr. Jones requested that the Council examine whether the Board of Nursing met the spirit of the Administrative Procedures Act (APA) in their rulemaking process.  The Council discussed the APA process whether there were any flaws in the process.  The Council also raised concerns that the Board of Nursing did not have an opportunity to discuss their process with the Council at this meeting. 

 

Senator Mockler moved that LSO draft a letter on behalf of the Council to the Governor noting that the Council has concerns about the amount of public input in the rulemaking process.  The motion carried. 

 

Rules approved by postcard ballot

Appendix 3 lists the Council’s action on rules taken by mail ballot since the last meeting at which rules were considered.

 

Carter Goble Lee Space Study and Planning

Mr. Steve Carter, of Carter Goble Lee, updated the Council on the Phase II report about the long-term space needs of occupants in the Capitol.  Phase I addressed the space needs of the Legislature and Phase II will focus on the needs of the constitutional officers in the building, and will provide a conceptual timeline about activities that would need to be undertaken to meet space needs of Capitol occupants in the future.  Mr. Carter noted that he is still in the process of finalizing Phase II, but presented a draft executive summary of the preliminary report (See Appendix 4.)  He also refreshed the Council on the findings in the Phase I report.  He estimates that the Capitol is short 42,448 square feet to accommodate all of the long-term space needs of the occupants. 

 

Mr. Carter explained that many states have experienced the growing pains that Wyoming is experiencing and that other states have addressed the needs of Capitol occupants through expansions or new office buildings adjacent to the Capitol.  Mr. Carter explained that the Phase I and II reports do not make any recommendations about where occupants in the Capitol should be located in the future, rather the focus was to identify the long-term space needs of the building occupants for future planning.  The Council discussed the need to determine what functions will be in the Capitol after the building is renovated, which would drive decisions about Capitol renovation and construction of the new office building on the St. Mary’s site.  The Council also discussed the timing issue related to vacating the Capitol related to legislative sessions. 

 

The Council discussed other components that relate to making decisions within the Capitol Complex, including restoration of the Capitol, space needs of other state employees within the Capitol Complex, lease costs for employees in rented buildings, construction and remodeling needs, and cost estimates for identified needs.  The Council also discussed options for creating a fund for these needs while the state is in a good economic position, even if plans are not yet finalized. 

 

The Council asked how the Phase I and II studies fit into long-term planning for the entire Capitol Complex and Mr. Carter explained that this was outside of the scope.  The Council discussed the potential need for a larger plan for the Capitol Complex and Mr. Rich Cathcart, of the Department of Administration and Information’s Construction Management Division, provided the Council with a status of state facilities plans that are in progress and the options for different space available (see Appendix 5.)  He noted that anything listed in red is tentative.  He expressed his concern that if a consultant is hired to develop a master plan, it may just be put on a shelf.  He suggested that a joint legislative-executive planning committee may provide more flexibility for planning than paying for a written report.   

 

Senator Schiffer noted that it is important for the legislative branch and executive branch to visit with each other about options and goals for the future and to develop a shared understanding about the long-term visions for the Capitol Complex.   

 

Travel/Compensation Issues

 

Tax Issues Relating to Payment of Legislative Per Diem

Mr. Dan Pauli explained that under the provisions of the Internal Revenue Code, per diem is sometimes considered non-taxable reimbursement that is excluded from the taxpayer’s gross income, and at other times is treated as taxable income that is included in gross income and reported on the taxpayer’s W-2 form.  He explained that in light of discussions with the State Auditor’s Office, as well as the enactment of legislation in 2008 authorizing an increase in per diem, the LSO contracted with a tax attorney to review current payroll practices relating to payment of per diem to legislators.  He noted that the LSO has been advised by the tax consultant to make some modifications to these practices. 

 

The primary area of concern involves a section of the tax code that allows certain legislators to elect to designate their district residence as their “tax home” for income tax purposes.  Depending on whether a legislator has made the election, certain per diem payments may or may not be taxable.  He noted that the issue does not affect legislators whose residence is located within 50 miles of the Capitol.  Mr. Dave Gruver explained Appendix 6, which provides scenarios of election options.  Senator Massie asked how mileage from a member’s residence to the Capitol is determined.  Mr. Gruver explained that LSO was advised to Map Quest the legislator’s district address to the Capitol; however, the ultimate decision on actual mileage will be left up to the individual legislator to determine. 

 

 

 

 

Mr. Pauli explained that the tax attorney suggested LSO send out a letter explaining these provisions and to include a form that legislators would fill out to provide documentation of their election decision.  Mr. Pauli presented a draft letter for Council’s consideration to send to members explaining the matter and a draft form the members could use to advise LSO of their intent to elect a tax home base under the section of the tax code.  Representative Lubnau requested that the packet include a draft form that members could give to their accountants to file with their tax return.  Mr. Pauli noted that if the tax attorney would approve such a form, it could be included with the letter. 

 

Senator Ross moved for LSO to send a letter to all members advising them of this issue and to include a form for each member to fill out and return to LSO indicating their election and to include a sample form prepared by the LSO tax consultant to provide to legislators as part of the policy package they will receive.  The motion carried.  Council further directed that after a reasonable period for response, the LSO will assume a member who has not submitted a form does not intend to make a tax home election. 

 

Mr. Pauli also noted that proposed IRS regulations define a committee as composed solely of legislators, so Council may want to look at how to address committees that include legislators and non-legislators in the future. 

 

Draft Policy on Payment of Actual Expenses in Lieu of Per Diem

Mr. Pauli provided information about policy considerations that have arisen from the passage of House Bill 75 during the 2008 Session to increase legislative per diem from $85 to $109 and which allows the payment of actual expenses in lieu of per diem if authorized by Management Council policy.  He explained the draft policy that staff have developed for Council’s consideration (see Appendix 7). He explained that in developing the policy, staff considered the following issues:  how to make sure that actual expenses being claimed are reasonable; how to set up the process so that Council does not have to make the decision to allow actual expenses on a case-by-case basis; establishing a process to authorize actual expenses for unique situations; and how to make the process work efficiently for the LSO fiscal officer in circumstances where members fail to submit claims and receipts in a timely fashion.  Mr. Pauli also explained that actual expenses may not always provide as much reimbursement for members as per diem.  Senator Schiffer moved to adopt the draft policy with the exception under paragraph (b) to remove the words “and by unanimous vote of the members voting.”  The motion carried.

 

Travel Policies and Per Diem Rate

Mr. Pauli explained some changes needed in the current travel regulations that reference the $85 per diem rate that was in effect prior to the increase in per diem to $109 in the 2008 Session for reduced compensation for short meetings and meetings in a legislator’s local community.  He noted that the recommended policy changes also include changing the reference to “hometown” meetings to avoid confusion with the IRS regulations that refer to the election of a “tax home” as discussed earlier.  Representative Lubnau moved to adopt the policy amendments.  The motion carried. 

 

Legislatively Directed Duties Without Compensation

Chairman Cohee brought up the issue of legislator participation in functions that are not part of the meetings of organizations that legislators are authorized to attend under the current travel policy, allowing two out-of-state trips per year.  He noted that many of these functions allow Wyoming to play a prominent role in policy decisions that affect the state.  He questioned whether Council should examine this issue to determine what types of additional travel by individual members should be funded by the Legislature.  Representative Lubnau brought up examples of meetings he has participated in regarding carbon sequestration in Houston, Pittsburgh and Denver that he has attended primarily at his own expense.  He noted that the existing policy allows Council to approve additional out-of-state trips and to

attend meetings of organizations other than NCSL, CSG, and the Energy Council.  Mr. Pauli noted that the policy allows compensation if a member is attending an event on behalf of the Management Council and that Council could approve reimbursement of expenses in that case.  Chairman Cohee stated that, without objection from Council, the Council should consider paying expenses for these types of activities on a case-by-case basis. 

 

Committee Issues

 

Revenue Committee

Chairman Cohee explained that Representative Anderson, Co-Chairman of the Joint Revenue Committee has requested that Council consider paying speaker fees and travel expenses to bring Dr. Barry Poulson to speak about Wyoming’s budgeting process to a joint meeting of the Revenue and Appropriations committees, as part of their discussions on an interim topic that Council assigned to the committees regarding trending in revenues and expenditures.  Senator Anderson noted that he believed the reports that Dr. Poulson has already provided were very clear and that the Committee has the information needed and could forgo bringing him in to speak to the committees.  Senator Massie moved to table the request. 

 

Travel Committee Request

Representative Thompson explained a request from the Joint Travel, Recreation, Wildlife and Cultural Resources Committee to add a small topic to its list of interim study topics (see Appendix 8.)  He explained that the Department of State Parks and Cultural Resources and the Wyoming Game and Fish Department have approached the Committee about whether the departments can come to the Committee with requests to make small amendments to their statutes, which do not fit within the approved topics for the Committee.  Senator Ross moved to approve the request as part of the Committee’s approved interim topics and to allow discretion for the Committee to study these issues.   The motion carried. 

 

Judiciary Committee Request

Senator Ross explained that he would like Council to consider an increase in the Joint Judiciary Committee’s budget to allow additional legislators to participate in the carbon sequestration policy discussions of the Committee.  Senator Ross moved to increase the budget of the Joint Judiciary Committee by $7,500 to allow eight additional legislators to attend discussions on carbon capture and sequestration.  The motion carried.  Representative Lubnau declared a conflict on the vote and abstained.

 

Subcommittee on Archaic Statutes Revision

Mr. Gruver provided an update on the work LSO staff is conducting to examine archaic statutes, as directed by the Council at their March meeting to assign a subcommittee to work with the LSO on this issue.  He provided examples of the types of provisions that will be included in a bill for the subcommittee’s consideration. 

 

Miscellaneous Topics

 

State Treasurer’s Proposal for Advisory Committee

Joe Meyer, State Treasurer, addressed Council regarding a proposed advisory committee on state investment policy that the Council tabled in January for discussion at a future meeting.  Mr. Meyer explained that when he was elected there was already an advisory group in place and he is currently reviewing whether or not to continue it.  He sent an invitation to the Legislature to appoint legislators or LSO staff to participate in the advisory group.  He noted that the goal is to increase the level of transparency and information available about the state’s investments.  The Council discussed whether to allow an LSO staff member to participate and agreed that it may not be appropriate for staff to actually serve on the committee.  The Council applauded Mr. Meyer on his desire to provide transparency and information about the state’s investments.  Chairmen Cohee stated that the Council appreciated the invitation for legislators to participate and that the President and Speaker will consider appointments. 

 

Miscellaneous Policies for Consideration During Interim

Ms. Madsen brought up several potential policy issues for Council’s consideration and asked for direction regarding the development of formal policy or whether staff should continue with current practices. 

 

Ms. Madsen explained that currently LSO will not release any personal legislator health information to the public or to the media when a member is ill.  LSO has been asked by the public in the past to provide this information, and in these circumstances and LSO directs the public to the family for additional information.  LSO will release information about a legislator’s health status to legislators and the public only at the direction of family, but will not act as a spokesperson or media contact.  Council agreed that LSO should continue to follow current practice. 

 

Ms. Madsen noted that LSO does not currently send bulk e-mail to legislators about policy issues on behalf of a member, but rather explains to the requestor how to directly send those e-mails using the bulk e-mail function on the Intranet.  The Council agreed that LSO should continue to follow this practice. 

 

When the LSO receives a statutorily required report in advance of the report due date, and it is requested by the public, we have referred the requestor to the report author for a copy of the document.  For reports that have been released, the LSO will provide a copy of the document to the public.  The Council agreed that LSO should continue to follow this practice.   

 

The Council asked staff to refine the travel policy on use of the state plane to clarify the process of when a legislator is authorized to travel at a member’s request or at the invitation of an executive agency. 

 

Personnel Issues

Mr. Pauli reminded the members that the Council authorized LSO to contract with NCSL last fall to perform a study of the LSO compensation system.  Mr. Pauli provided an update on the work conducted by the NCSL to this point and introduced Brian Weberg, Natalie O’Donnell, and Tim Storey from NCSL, who explained their methodology to the Council and provided a preliminary status report about their work for the Council (see Appendix 9.)

 

Mr. Storey explained that NCSL has conducted similar compensation studies in at least 15 other states and that the methodology they employ has worked very well.  He noted that, as the smallest legislative staff in the country, the LSO has a lean and effective operation.  He explained that the NCSL’s work involves two components, first to examine whether the Council would like to explore options for a more structured compensation system and to examine internal and market equity.  NCSL send out a questionnaire and interviewed all staff to better understand the functions different staff members perform.  He explained a point factor evaluation form they use to “score” the jobs on a variety of factors to examine equity of pay between different types of positions.  He noted that NCSL is currently collecting market data to determine whether LSO salaries are in line with the market.  NCSL’s preliminary conclusions are that LSO positions appear to be in line with the market and that the system appears to be equitable internally.  He noted that the most important function of the compensation system is to support the LSO’s ability to recruit and retain staff.   

 

The Council discussed the preliminary findings and Chairmen Cohee noted that the Council would like a final report from NCSL by the next Council meeting.  The Council resolved itself briefly into executive session to consider issues related to personnel and then resolved itself back into open session. 

 

Other Business

 

Governor’s Portrait Project Request

Ms. Madsen explained that the Select Committee on Legislative Facilities has been working with the State Museum to finalize a ceremony for the unveiling of the newly commissioned governors’ portraits that the Legislature appropriated funds for in 2006.  The existing governors’ portraits that were displayed in Room 302 have been removed while that room is being remodeled.  The Select Committee recommends that the existing portraits be displayed with the new portraits and believe that the first floor of the Capitol may be the most appropriate location to display the collection.  The Committee would like to recommend that the Council send a letter to the Governor’s Office with this proposal (see Appendix 10).  The State Museum has offered to coordinate the display with the Governor’s Office.   The Council elected not to send a letter to the Governor’s Office with this request after Senator Mockler explained that the memo may not be necessary because the Governor’s Office is already aware of the request, but the Committee wanted the Council to understand that the portraits have been turned over to the State Museum and will not be returned to Room 302. 

 

Room 302 Remodeling Costs

Ms. Madsen provided an update on the remodeling project in Room 302, including a summary of the audio and video equipment that will be installed in the room.  She explained that any audio and video wiring needed for future uses in the room needs to be anticipated now because the concrete floor is being jack hammered for conduit and then will be recast in concrete.  She noted that Council has tasked the Technology Committee with the responsibility for exploring options for videoconferencing and that the LSO has been working with the Department of Administration and Information staff regarding equipment needed to participate in the Wyoming Video Conferencing System.  Ms. Madsen explained that K2 Audio, the consultant designing the audio and video systems, has prepared a cost estimate of approximately $78,000 to add the audio and video equipment needed to eventually participate in the State’s videoconferencing system and this amount is outside of the budget for remodeling in Room 302.  Representative Lubnau moved to utilize up to $80,000 of reverting funds to include the additional equipment in the Room 302 remodel.  The motion carried. 

 

Meeting Adjournment

The next Council meeting will likely be held in late August.  There being no further business, Chairman Cohee adjourned the meeting at 5:10 p.m.

 

 

Respectfully submitted,

 

 

 

Senator Jayne Mockler, Secretary

 

 

 

 

 

 

 

 

 

 

Appendix		Appendix Topic		Appendix Description		Appendix Provider
1		Council Sign-In Sheet		Lists meeting attendees		Legislative Service Office
2		Council Meeting Agenda		Provides an outline of the topics the Council planned to address at meeting		Legislative Service Office
3		Administrative Rules		Rules approved by postcard ballot		Legislative Service Office
4		Space Study and Planning		Phase II Draft Final Report – Executive Summary		Carter Goble Lee
5		Space Study and Planning		State Facilities Plans in Progress		Department of Administration and Information
6		Travel/Compensation Issues		Committee Meeting Scenarios		Legislative Service Office
7		Travel/Compensation Issues		Actual Expenses Draft Policy		Legislative Service Office
8		Committee Issues		Travel Committee Request		Legislative Service Office
9		Miscellaneous Issues		Compensation Study Interim Project Report		National Conference of State Legislatures
10		Miscellaneous Issues		Governor’s Portrait Project Memo		Select Committee on Legislative Facilities