HF 173

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 01/31/2011 02:15pm

A bill for an act
relating to state government; creating the Sunset Commission; providing for
sunset and review of state agencies; appropriating money; proposing coding for
new law as Minnesota Statutes, chapter 3D.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [3D.01] SHORT TITLE.
new text end

new text begin This chapter may be cited as the Minnesota Sunset Act.
new text end

Sec. 2.

new text begin [3D.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Advisory committee. new text end

new text begin "Advisory committee" means a committee, council,
commission, or other entity created under state law whose primary function is to advise
a state agency.
new text end

new text begin Subd. 3. new text end

new text begin Commission. new text end

new text begin "Commission" means the Sunset Commission.
new text end

new text begin Subd. 4. new text end

new text begin State agency. new text end

new text begin "State agency" means an agency expressly made subject
to this chapter.
new text end

Sec. 3.

new text begin [3D.03] SUNSET COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Sunset Commission consists of four members
appointed by the governor, two members appointed by the speaker of the house
of representatives, two members appointed by the minority leader of the house of
representatives, and two members appointed by the senate majority leader, and two
members appointed by the senate minority leader. Appointing authorities should consider
appointing members with experience in business operations, mergers, finance, and
technology. A legislator may not be a member of the commission.
new text end

new text begin Subd. 2. new text end

new text begin Member restrictions. new text end

new text begin An individual is not eligible for appointment if
the individual or the individual's spouse is:
new text end

new text begin (1) regulated by a state agency that the commission will review during the term for
which the individual would serve;
new text end

new text begin (2) employed by, participates in the management of, or directly or indirectly has
more than a ten percent interest in a business entity or other organization regulated by a
state agency the commission will review during the term for which the individual would
serve; or
new text end

new text begin (3) required to register as a lobbyist under chapter 10A because of the person's
activities for compensation on behalf of a profession or entity related to the operation of
an agency under review.
new text end

new text begin Subd. 3. new text end

new text begin Removal. new text end

new text begin Removal of members is governed by section 15.0575. It is
cause for removal of a member from the commission if the member does not have the
qualifications required by subdivision 2 for appointment to the commission at the time
of appointment or does not maintain the qualifications while serving on the commission.
The validity of the commission's action is not affected by the fact that it was taken when a
ground for removal of a public member from the commission existed.
new text end

new text begin Subd. 4. new text end

new text begin Terms. new text end

new text begin Members serve two-year terms expiring September 1 of each
odd-numbered year.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin Members are subject to the following restrictions:
new text end

new text begin (1) after an individual serves four years on the commission, the individual is not
eligible for appointment to another term or part of a term; and
new text end

new text begin (2) a member may not serve consecutive terms, and, for purposes of this prohibition,
a member is considered to have served a term only if the member has served more than
half of the term.
new text end

new text begin Subd. 6. new text end

new text begin Appointments. new text end

new text begin The appointing authorities shall make appointments before
September 1 of each odd-numbered year.
new text end

new text begin Subd. 7. new text end

new text begin Vacancies. new text end

new text begin If a vacancy occurs, the appointing authorities shall appoint
a person to serve for the remainder of the unexpired term in the same manner as the
original appointment.
new text end

new text begin Subd. 8. new text end

new text begin Officers. new text end

new text begin The commission shall have a chair and vice-chair as presiding
officers. The chair and vice-chair must alternate every two years between a member
appointed by the governor and a member appointed by a legislative appointing authority.
The chair and vice-chair must be appointed by different appointing authorities.
new text end

new text begin Subd. 9. new text end

new text begin Quorum; voting. new text end

new text begin Seven members of the commission constitute a quorum.
A final action or recommendation may not be made unless approved by a recorded vote
of at least seven members. All other actions by the commission shall be decided by a
majority of the members present and voting.
new text end

new text begin Subd. 10. new text end

new text begin Compensation. new text end

new text begin Each member of the commission is entitled to
reimbursement for actual and necessary expenses incurred in performing commission
duties as provided in section 15.0575, subdivision 3. Each member is entitled to
reimbursement from funds appropriated to the commission.
new text end

Sec. 4.

new text begin [3D.04] STAFF.
new text end

new text begin (a) The commission may employ an executive director to act as the executive head
of the commission. The executive director may employ persons necessary to carry out this
chapter. The commission must attempt to use donated staff services to the greatest extent
practical before employing staff.
new text end

new text begin (b) The commission is in the legislative branch. Upon request of the commission,
the Legislative Coordinating Commission shall provide administrative support.
new text end

Sec. 5.

new text begin [3D.05] RULES.
new text end

new text begin The commission may adopt rules necessary to carry out this chapter.
new text end

Sec. 6.

new text begin [3D.06] AGENCY REPORT TO COMMISSION.
new text end

new text begin Before September 1 of the odd-numbered year before the year in which a state agency
is subject to sunset review, the agency commissioner shall report to the commission:
new text end

new text begin (1) information regarding the application to the agency of the criteria in section
3D.10;
new text end

new text begin (2) a priority-based budget for the agency;
new text end

new text begin (3) an inventory of all boards, commissions, committees, and other entities related
to the agency; and
new text end

new text begin (4) any other information that the agency commissioner considers appropriate or that
is requested by the commission.
new text end

Sec. 7.

new text begin [3D.07] COMMISSION DUTIES.
new text end

new text begin Before January 1 of the year in which a state agency subject to this chapter and its
advisory committees are subject to sunset review, the commission shall:
new text end

new text begin (1) review and take action necessary to verify the reports submitted by the agency;
new text end

new text begin (2) conduct a review of the agency based on the criteria provided in section 3D.10
and prepare a written report; and
new text end

new text begin (3) review the implementation of commission recommendations contained in the
reports presented to the legislature during the preceding legislative session and the
resulting legislation.
new text end

Sec. 8.

new text begin [3D.08] PUBLIC HEARINGS.
new text end

new text begin Before February 1 of the year a state agency subject to this chapter and its advisory
committees are subject to sunset review, the commission shall conduct public hearings
concerning but not limited to the application to the agency of the criteria provided in
section 3D.10.
new text end

Sec. 9.

new text begin [3D.09] COMMISSION REPORT.
new text end

new text begin By February 1 of each odd-numbered year, the commission shall present to the
legislature and the governor a report on the agencies and advisory committees reviewed.
In the report the commission shall include:
new text end

new text begin (1) its findings regarding the criteria prescribed by section 3D.10;
new text end

new text begin (2) its recommendations based on the matters prescribed by section 3D.11; and
new text end

new text begin (3) other information the commission considers necessary for a complete review
of the agency.
new text end

Sec. 10.

new text begin [3D.10] CRITERIA FOR REVIEW.
new text end

new text begin The commission and its staff shall consider the following criteria in determining
whether a public need exists for the continuation of a state agency or its advisory
committees or for the performance of the functions of the agency or its advisory
committees:
new text end

new text begin (1) the efficiency and effectiveness with which the agency or the advisory committee
operates;
new text end

new text begin (2) an identification of the mission, goals, and objectives intended for the agency or
advisory committee and of the problem or need that the agency or advisory committee
was intended to address and the extent to which the mission, goals, and objectives have
been achieved and the problem or need has been addressed;
new text end

new text begin (3) an identification of any activities of the agency in addition to those granted by
statute and of the authority for those activities and the extent to which those activities
are needed;
new text end

new text begin (4) an assessment of authority of the agency relating to fees, inspections,
enforcement, and penalties;
new text end

new text begin (5) whether less restrictive or alternative methods of performing any function that
the agency performs could adequately protect or provide service to the public;
new text end

new text begin (6) the extent to which the jurisdiction of the agency and the programs administered
by the agency overlap or duplicate those of other agencies, the extent to which the agency
coordinates with those agencies, and the extent to which the programs administered by the
agency can be consolidated with the programs of other state agencies;
new text end

new text begin (7) the promptness and effectiveness with which the agency addresses complaints
concerning entities or other persons affected by the agency, including an assessment of the
agency's administrative hearings process;
new text end

new text begin (8) an assessment of the agency's rulemaking process and the extent to which the
agency has encouraged participation by the public in making its rules and decisions as well
as the extent to which the public participation has resulted in rules that benefit the public;
new text end

new text begin (9) the extent to which the agency has complied with federal and state laws and
applicable rules regarding equality of employment opportunity and the rights and privacy
of individuals;
new text end

new text begin (10) the extent to which the agency has complied with state law and applicable
rules of any state agency regarding purchasing guidelines and programs for historically
underutilized businesses;
new text end

new text begin (11) the extent to which the agency issues and enforces rules relating to potential
conflicts of interest of its employees;
new text end

new text begin (12) the extent to which the agency complies with chapter 13 and follows records
management practices that enable the agency to respond efficiently to requests for public
information; and
new text end

new text begin (13) the effect of federal intervention or loss of federal funds if the agency is
abolished.
new text end

Sec. 11.

new text begin [3D.11] RECOMMENDATIONS.
new text end

new text begin (a) In its report on a state agency required by section 3D.09, the commission shall:
new text end

new text begin (1) make recommendations on the abolition, continuation, or reorganization of each
affected state agency and its advisory committees and on the need for the performance of
the functions of the agency and its advisory committees;
new text end

new text begin (2) make recommendations on the consolidation, transfer, or reorganization of
programs within state agencies not under review when the programs duplicate functions
performed in agencies under review; and
new text end

new text begin (3) make recommendations to improve the operations of the agency, its policy body,
and its advisory committees, including management recommendations that do not require
a change in the agency's enabling statute.
new text end

new text begin (b) The commission shall include the estimated fiscal impact of its recommendations
and may recommend appropriation levels for certain programs to improve the operations
of the state agency.
new text end

new text begin (c) The commission must work with the revisor of statutes and other legislative
staff to prepare and submit draft legislation to the appropriate chairs and lead minority
members of legislative committees to carry out the commission's recommendations.
new text end

Sec. 12.

new text begin [3D.12] MONITORING OF RECOMMENDATIONS.
new text end

new text begin During each legislative session, the staff of the commission shall monitor legislation
affecting agencies that have undergone sunset review and shall periodically report
to the members of the commission on proposed changes which would modify prior
recommendations of the commission.
new text end

Sec. 13.

new text begin [3D.13] REVIEW OF ADVISORY COMMITTEES.
new text end

new text begin An advisory committee, the primary function of which is to advise a particular state
agency, is subject to sunset review on the date set for sunset review of the agency unless
the advisory committee is expressly continued by law.
new text end

Sec. 14.

new text begin [3D.14] CONTINUATION BY LAW.
new text end

new text begin During the regular session immediately before the sunset review of a state agency or
an advisory committee that is subject to this chapter, the legislature may enact legislation
to continue the agency or advisory committee for a period not to exceed 12 years. This
chapter does not prohibit the legislature from:
new text end

new text begin (1) terminating a state agency or advisory committee subject to this chapter at a date
earlier than that provided in this chapter; or
new text end

new text begin (2) considering any other legislation relative to a state agency or advisory committee
subject to this chapter.
new text end

Sec. 15.

new text begin [3D.15] PROCEDURE AFTER TERMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Termination. new text end

new text begin Unless otherwise provided by law:
new text end

new text begin (1) if after sunset review a state agency is abolished, the agency may continue in
existence until June 30 of the following year to conclude its business;
new text end

new text begin (2) abolishment does not reduce or otherwise limit the powers and authority of the
state agency during the concluding year;
new text end

new text begin (3) a state agency is terminated and shall cease all activities at the expiration of
the one-year period; and
new text end

new text begin (4) all rules that have been adopted by the state agency expire at the expiration of
the one-year period.
new text end

new text begin Subd. 2. new text end

new text begin Funds of abolished agency or advisory committee. new text end

new text begin (a) Any unobligated
and unexpended appropriations of an abolished agency or advisory committee lapse on
June 30 of the even-numbered year after abolishment.
new text end

new text begin (b) Except as provided in subdivision 4 or as otherwise provided by law, all money
in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
even-numbered year after abolishment is transferred to the general fund. The part of the
law dedicating the money to a specific fund of an abolished agency becomes void on June
30 of the even-numbered year after abolishment.
new text end

new text begin Subd. 3. new text end

new text begin Property and records of abolished agency or advisory committee.
new text end

new text begin Unless the governor designates an appropriate state agency as prescribed by subdivision 4,
property and records in the custody of an abolished state agency or advisory committee
on June 30 of the even-numbered year after abolishment must be transferred to the
commissioner of administration. If the governor designates an appropriate state agency,
the property and records must be transferred to the designated state agency.
new text end

new text begin Subd. 4. new text end

new text begin Continuing obligations. new text end

new text begin (a) The legislature recognizes the state's
continuing obligation to pay bonded indebtedness and all other obligations, including
lease, contract, and other written obligations, incurred by a state agency or advisory
committee abolished under this chapter, and this chapter does not impair or impede the
payment of bonded indebtedness and all other obligations, including lease, contract, and
other written obligations, in accordance with their terms. If an abolished state agency or
advisory committee has outstanding bonded indebtedness or other outstanding obligations,
including lease, contract, and other written obligations, the bonds and all other obligations,
including lease, contract, and other written obligations, remain valid and enforceable in
accordance with their terms and subject to all applicable terms and conditions of the laws
and proceedings authorizing the bonds and all other obligations, including lease, contract,
and other written obligations.
new text end

new text begin (b) The governor shall designate an appropriate state agency that shall continue to
carry out all covenants contained in the bonds and in all other obligations, including lease,
contract, and other written obligations, and the proceedings authorizing them, including
the issuance of bonds, and the performance of all other obligations, including lease,
contract, and other written obligations, to complete the construction of projects or the
performance of other obligations, including lease, contract, and other written obligations.
new text end

new text begin (c) The designated state agency shall provide payment from the sources of payment
of the bonds in accordance with the terms of the bonds and shall provide payment from
the sources of payment of all other obligations, including lease, contract, and other written
obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
until the bonds and interest on the bonds are paid in full and all other obligations,
including lease, contract, and other written obligations, are performed and paid in full.
If the proceedings so provide, all funds established by laws or proceedings authorizing
the bonds or authorizing other obligations, including lease, contract, and other written
obligations, must remain with the comptroller or the previously designated trustees. If the
proceedings do not provide that the funds remain with the comptroller or the previously
designated trustees, the funds must be transferred to the designated state agency.
new text end

Sec. 16.

new text begin [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
new text end

new text begin The commission may request the assistance of state agencies and officers. When
assistance is requested, a state agency or officer shall assist the commission. In carrying
out its functions under this chapter, the commission or its designated staff member may
inspect the records, documents, and files of any state agency.
new text end

Sec. 17.

new text begin [3D.17] RELOCATION OF EMPLOYEES.
new text end

new text begin If an employee is displaced because a state agency or its advisory committee is
abolished or reorganized, the state agency shall make a reasonable effort to relocate the
displaced employee.
new text end

Sec. 18.

new text begin [3D.18] SAVING PROVISION.
new text end

new text begin Except as otherwise expressly provided, abolition of a state agency does not affect
rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
arose, or proceedings that were begun before the effective date of the abolition.
new text end

Sec. 19.

new text begin [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
AGENCY.
new text end

new text begin Each bill filed in a house of the legislature that would create a new state agency or
a new advisory committee to a state agency shall be reviewed by the commission. The
commission shall review the bill to determine if:
new text end

new text begin (1) the proposed functions of the agency or committee could be administered by one
or more existing state agencies or advisory committees;
new text end

new text begin (2) the form of regulation, if any, proposed by the bill is the least restrictive form of
regulation that will adequately protect the public;
new text end

new text begin (3) the bill provides for adequate public input regarding any regulatory function
proposed by the bill; and
new text end

new text begin (4) the bill provides for adequate protection against conflicts of interest within
the agency or committee.
new text end

Sec. 20.

new text begin [3D.20] EXPIRATION AND SUNSET REVIEW.
new text end

new text begin Subdivision 1. new text end

new text begin Group 1. new text end

new text begin The following agencies expire on June 30, 2013, and
are subject to sunset review before June 30, 2013: Department of Health, Department
of Human Rights, Department of Human Services, all health-related licensing boards
listed in section 214.01, Council on Affairs of Chicano/Latino People, Council on Black
Minnesotans, Council on Asian-Pacific Minnesotans, Indian Affairs Council, Council on
Disabilities, and all advisory groups associated with these agencies.
new text end

new text begin Subd. 2. new text end

new text begin Group 2. new text end

new text begin The following agencies expire on June 30, 2015, and are subject
to sunset review before June 30, 2015: Department of Education, Board of Teaching,
Minnesota Office of Higher Education, and all advisory groups associated with these
agencies.
new text end

new text begin Subd. 3. new text end

new text begin Group 3. new text end

new text begin The following agencies expire on June 30, 2017, and are
subject to sunset review before June 30, 2017: Department of Commerce, Department
of Employment and Economic Development, Department of Labor and Industry, all
non-health-related licensing boards listed in section 214.01 except as otherwise provided
in this section, Explore Minnesota Tourism, Public Utilities Commission, Iron Range
Resources and Rehabilitation Board, Bureau of Mediation Services, Combative Sports
Commission, Amateur Sports Commission, and all advisory groups associated with these
agencies.
new text end

new text begin Subd. 4. new text end

new text begin Group 4. new text end

new text begin The following agencies expire on June 30, 2019, and are subject
to sunset review before June 30, 2019: Department of Corrections, Department of Public
Safety, Department of Transportation, Peace Officer Standards and Training Board,
Corrections Ombudsman, and all advisory groups associated with these agencies.
new text end

new text begin Subd. 5. new text end

new text begin Group 5. new text end

new text begin The following agencies expire on June 30, 2021, and are subject
to sunset review before June 30, 2021: Department of Agriculture, Department of Natural
Resources, Pollution Control Agency, Board of Animal Health, Board of Water and Soil
Resources, and all advisory groups associated with these agencies.
new text end

new text begin Subd. 6. new text end

new text begin Group 6. new text end

new text begin The following agencies expire on June 30, 2023, and are subject
to sunset review before June 30, 2023: Department of Administration, Department of
Management and Budget, Department of Military Affairs, Department of Revenue,
Department of Veterans Affairs, Arts Board, Minnesota Zoo, Office of Administrative
Hearings, Campaign Finance and Public Disclosure Board, Capitol Area Architectural and
Planning Board, Office of Enterprise Technology, Minnesota Racing Commission, and all
advisory groups associated with these agencies.
new text end

new text begin Subd. 7. new text end

new text begin Other groups. new text end

new text begin The commission may review, under the criteria in
section 3D.10, and propose to the legislature an expiration date for any agency, board,
commission, or program not listed in this section.
new text end

Sec. 21. new text begin APPROPRIATION.
new text end

new text begin $100,000 for the fiscal year ending June 30, 2012, and $100,000 for the fiscal
year ending June 30, 2013, is appropriated from the general fund to the Legislative
Coordinating Commission for purposes of the Sunset Commission.
new text end