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Legislature passes PERS bill, adjourns 'sine die'

The Legislature has finally passed the bill funding the Public Employees Retirement System budget.

That was the final bill left over when lawmakers left town in late April, due to a stalemate over some policy issues the House wanted to tack on to the bill.

The final bill removed many of those policy issues.

First, a special committee approved a deal – then a House-Senate conference committee put its stamp of approval on t on a 5 to 1 vote. The sticking point was policy language the House wanted in the bill. The Senate resisted it. But the special committee reached a compromise, that included some policy language – including expanding the PERS board to include two legislators. That board also chooses the health insurance carrier for state employees.

Sen. Joan Heckaman (D-New Rockford) made a motion for a clean budget bill – without the policy matters attached.

"I think the board has been effective for 35-plus years," Heckaman said during conference committee deliberation. "If we start this now, looking at policy at the last minute, we're not including some of the facts we should have."

"I do agree with a lot of what what you say," Senate Majority Leader Rich Wardner (R-Dickinson) said in response to Heckaman. "I'm not going to vote for that motion because we have a good faith agreement."

Heckaman's motion was defeated 4 to 2.

On the Senate and House floors, Democrats criticized the deal as no compromise.

"We use an agency bill, and we held it hostage," said House Minority Leader Kenton Onstad (D-Parshall).

Senate Minority Leader Mac Schneider (D-Grand Forks) called it "legislative extortion."

"This is no more a compromise than if you were wandering down a dark alley and someone demanded your wallet, and you got out of the situation by saying, 'I'll just give you my debit card and a $20 bill," said Schneider during Senate debate. "This was really done under duress."

But Wardner says this is a compromise. And he says he hopes everyone learned something.

"I don't want this to happen again," said Wardner.

And House Majority Leader Al Carlson (R-Fargo) says this shines a light on the PERS board's dealing with insurance, as well as on Sanford Health, which won the bid over Blue Cross Blue Shield.

"It's a good thing for us to not hear a rumor in the hall, and we have to ask if we're really changing providers," said Carlson. "We had no involvement, no idea."

The two legislators will be appointed by thye chairman of the Legislative Management committee -- one Republican and one Democrat.

The Senate vote was 38-6. The House then passed it 73-16.

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