HF 4087

as introduced - 91st Legislature (2019 - 2020) Posted on 03/04/2020 03:37pm

A bill for an act
relating to local government; reestablishing the Council on Local Results and
Innovation; modifying program requirements; appropriating money; amending
Minnesota Statutes 2018, sections 6.90; 6.91.

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

Section 1.

Minnesota Statutes 2018, section 6.90, is amended to read:

6.90 COUNCIL ON LOCAL RESULTS AND INNOVATION.

Subdivision 1.

Creation.

new text begin (a) new text end The Council on Local Results and Innovation consists of
11 members, as follows:

(1) the state auditor;

(2) two persons appointed by the chair of the deleted text begin Property and Local Sales Tax Division of deleted text end new text begin
committee with jurisdiction over taxes in new text end the house of representatives deleted text begin Taxes Committee deleted text end ;

(3) two persons appointed by the designated lead member of the largest minority party
of the deleted text begin Property and Local Sales Tax Division of deleted text end new text begin committee with jurisdiction over taxes in
new text end the house of representatives deleted text begin Taxes Committee deleted text end ;

(4) four persons appointed by the deleted text begin Subcommittee on Committees of the Senate Rules and
Administration Committee deleted text end new text begin committee with jurisdiction over committee appointments in
the senate new text end ;

(5) one person appointed by the Association of Minnesota Counties; and

(6) one person appointed by the League of Minnesota Cities.

new text begin (b) new text end Each appointment under new text begin paragraph (a), new text end clauses (2) to (4) new text begin , new text end must include one person
with expertise or interest in county government and one person with expertise or interest
in city government. No members appointed under new text begin paragraph (a), new text end clauses (2) to (4) new text begin , new text end may be
members of the legislature. The appointing authorities must use their best efforts to ensure
that a majority of council members have experience with local performance measurement
deleted text begin systems deleted text end new text begin programs new text end . The membership of the council must include geographically balanced
representation as well as representation balanced between large and small jurisdictions. The
appointments under new text begin paragraph (a), new text end clauses (2) to (6) new text begin , new text end must be made within two months of
the date of enactment.

new text begin (c) new text end Appointees to the council under new text begin paragraph (a), new text end clauses (2) to (4) new text begin , new text end serve terms of four
years, except that one of each of the initial appointments under new text begin paragraph (a), new text end clauses (2)
to (4) deleted text begin shall deleted text end new text begin , new text end serve a term of two years deleted text begin ; deleted text end new text begin . new text end Each appointing agent must designate which appointee
is serving the two-year term. Subsequent appointments for members appointed under
new text begin paragraph (a), new text end clauses (2) to (4) new text begin , new text end must be made by the council, including appointments to
replace any appointees who might resign from the council deleted text begin prior to completion of deleted text end new text begin before
completing new text end their term. Appointees under new text begin paragraph (a), new text end clauses (2) to (4) new text begin , new text end are not eligible
to vote on appointing their successor, nor on the successors of other appointees whose terms
are expiring contemporaneously. In making appointments, the council shall make all possible
efforts to reflect the geographical distribution and meet the qualifications of appointees
required of the initial appointees. Subsequent appointments for members appointed under
new text begin paragraph (a), new text end clauses (5) and (6) new text begin , new text end must be made by the original appointing authority.
Appointees to the council under new text begin paragraph (a), new text end clauses (2) to (6) new text begin , new text end may serve no more than
two consecutive terms.

new text begin (d) In the event of a vacancy under paragraph (a), clauses (2) to (6), that the council is
unable to fill, the state auditor shall provide notification to the original appointing authority
for each vacant position, and the appointing authority shall make new appointments in
accordance with the requirements for initial appointments within two months of the
notification.
new text end

Subd. 2.

Duties.

deleted text begin (a) By February 15, 2011, the council shall develop a standard set of
approximately ten performance measures for counties and ten performance measures for
cities that will aid residents, taxpayers, and state and local elected officials in determining
the efficacy of counties and cities in providing services, and measure residents' opinions of
those services. In developing its measures, the council must solicit input from private citizens.
Counties and cities that elect to participate in the standard measures system shall report
their results to the state auditor under section 6.91, who shall compile the results and make
them available to all interested parties by publishing them on the auditor's website and report
them to the legislative tax committees. Each year after the initial designation of performance
measures, the council shall evaluate the usefulness of the standard set of performance
measures and may revise the set by adding or removing measures as it deems appropriate.
deleted text end

deleted text begin (b) By February 15, 2012, the council shall develop minimum standards for
comprehensive performance measurement systems, which may vary by size and type of
governing jurisdiction.
deleted text end

new text begin (a) Each year, the council must evaluate, in conjunction with the requirements provided
in paragraphs (b) and (c), the usefulness of the current standard set of performance measures
and may revise the set by adding or removing measures as it deems appropriate.
new text end

new text begin (b) The set of performance measures must contain at least ten measures for counties and
ten measures for cities that will aid residents, taxpayers, and state and local elected officials
in determining the efficacy of counties and cities in providing services and will measure
residents' opinions of those services.
new text end

new text begin (c) The council must solicit input from private citizens.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end In addition to its specific duties under paragraphs (a) deleted text begin and (b) deleted text end new text begin to (c) new text end , the council
shall generally promote the use of performance deleted text begin measurement deleted text end new text begin measurements new text end for governmental
entities across the state and deleted text begin shall deleted text end serve as a resource for all governmental entities seeking
to implement a deleted text begin system of deleted text end local performance measurement new text begin program new text end . The council may
highlight and promote deleted text begin systems deleted text end new text begin programs new text end that are innovative, or are ones that it deems to be
best practices of local performance measurement deleted text begin systems deleted text end new text begin programs new text end across the state and
nation. The council should give preference in its recommendations to deleted text begin systems deleted text end new text begin programs new text end
that are results-oriented. The council may, with the cooperation of the state auditor, establish
and foster a collaborative network of practitioners of local performance measurement deleted text begin systems deleted text end new text begin
programs new text end . The council may support the Association of Minnesota Counties and the League
of Minnesota Cities to seek and receive private funding to provide expert technical assistance
to local governments for the purposes of replicating best practices.

Subd. 3.

Reports.

deleted text begin (a) The council shall report its initial set of standard performance
measures to the Property and Local Sales Tax Division of the house of representatives Taxes
Committee and the Taxes Division on Property Taxes of the senate Taxes Committee by
February 28, 2011.
deleted text end

deleted text begin (b) deleted text end By February 1 deleted text begin of deleted text end each deleted text begin subsequent deleted text end year, the council shall report to the committees
with jurisdiction over taxes in the house of representatives and the senate on participation
in and results of the new text begin local new text end performance measurement deleted text begin system deleted text end new text begin program new text end , along with any
revisions in the standard set of performance measures for the upcoming year. These reports
may be made by the state auditor in lieu of the council if agreed to by the auditor and the
council.

Subd. 4.

Operation of council.

(a) The state auditor shall convene the initial meeting
of the council.

(b) The chair of the council shall be elected by the members. Once elected, a chair deleted text begin shall
serve deleted text end new text begin serves new text end a term of two years.

(c) Members of the council serve without compensation.

(d) Council members shall share and rotate responsibilities for administrative support
of the council.

(e) Chapter 13D does not apply to meetings of the council. Meetings of the council must
be open to the public and the council must provide notice of a meeting on the state auditor's
website at least seven days before the meeting. A meeting of the council occurs when a
quorum is present.

deleted text begin (f) The council must meet at least two times prior to the initial release of the standard
set of measurements. After the initial set has been developed, the council must meet a
minimum of once per year.
deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Expiration. deleted text end

deleted text begin The council expires on January 1, 2020.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from December 31, 2019.
new text end

Sec. 2.

Minnesota Statutes 2018, section 6.91, is amended to read:

6.91 LOCAL PERFORMANCE MEASUREMENT AND REPORTING.

Subdivision 1.

deleted text begin Reports of local performance measures deleted text end new text begin Purpose new text end .

(a) deleted text begin A county or city
that elects to participate in the standard measures program must report its results to its
citizens annually through publication, direct mailing, posting on the jurisdiction's website,
or through a public hearing at which the budget and levy will be discussed and public input
allowed. deleted text end new text begin The purpose of this section is to encourage local governments to participate in the
local performance measurement program administered by the state auditor and to further
public engagement in implementing and improving performance measures selected by the
participating local government.
new text end

(b) deleted text begin Each year, jurisdictions participating in the local performance measurement and
improvement program must file a report with the state auditor by July 1, in a form prescribed
by the auditor. All reports must include a declaration that the jurisdiction has complied with,
or will have complied with by the end of the year, the requirement in paragraph (a). For
jurisdictions participating in the standard measures program, the report shall consist of the
jurisdiction's results for the standard set of performance measures under section 6.90,
subdivision 2, paragraph (a). In 2012, jurisdictions participating in the comprehensive
performance measurement program must submit a resolution approved by its local governing
body indicating that it either has implemented or is in the process of implementing a local
performance measurement system that meets the minimum standards specified by the council
under section 6.90, subdivision 2, paragraph (b). In 2013 and thereafter, jurisdictions
participating in the comprehensive performance measurement program must submit a
statement approved by its local governing body affirming that it has implemented a local
performance measurement system that meets the minimum standards specified by the council
under section 6.90, subdivision 2, paragraph (b). deleted text end new text begin For the purpose of this section:
new text end

new text begin (1) "local government" means any county or statutory or home rule charter city of this
state; and
new text end

new text begin (2) "participating local government" means any local government that elects to participate
in the local performance measurement program.
new text end

Subd. 2.

deleted text begin Benefits of participation deleted text end new text begin Duties of the state auditor new text end .

deleted text begin (a) A county or city that
elects to participate in the standard measures program for 2011 is: (1) eligible for per capita
reimbursement of $0.14 per capita, but not to exceed $25,000 for any government entity;
and (2) exempt from levy limits under sections 275.70 to 275.74 for taxes payable in 2012,
if levy limits are in effect.
deleted text end

deleted text begin (b) Any county or city that elects to participate in the standard measures program for
2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed $25,000
for any government entity. Any jurisdiction participating in the comprehensive performance
measurement program is exempt from levy limits under sections 275.70 to 275.74 for taxes
payable in 2013 if levy limits are in effect.
deleted text end

deleted text begin (c) Any county or city that elects to participate in the standard measures program for
2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, but
not to exceed $25,000 for any government entity. Any jurisdiction participating in the
comprehensive performance measurement program for 2013 or any year thereafter is exempt
from levy limits under sections 275.70 to 275.74 for taxes payable in the following year, if
levy limits are in effect.
deleted text end

new text begin The Office of the State Auditor must:
new text end

new text begin (1) provide guidance for complying with this section on its website;
new text end

new text begin (2) prescribe the form on which participating local governments will report their
compliance with this section; and
new text end

new text begin (3) compile the results from the reports provided by participating local governments and
publish the results on its website.
new text end

Subd. 3.

deleted text begin Certification of participation deleted text end new text begin Program performance measures new text end .

deleted text begin (a) The state
auditor shall certify to the commissioner of revenue by August 1 of each year the counties
and cities that are participating in the standard measures program and the comprehensive
performance measurement program. deleted text end new text begin Each year, a participating local government must select
the following from the list of performance measures established by the council under section
6.90:
new text end

new text begin (1) at least ten performance measures to evaluate; and
new text end

new text begin (2) at least one performance measure needing improvement to adopt and determine a
strategy and plan for its improvement.
new text end

deleted text begin (b) The commissioner of revenue shall make per capita aid payments under this section
on the second payment date specified in section 477A.015, in the same year that the
measurements were reported.
deleted text end

deleted text begin (c) The commissioner of revenue shall notify each county and city that is entitled to
exemption from levy limits by August 10 of each levy year.
deleted text end

Subd. 4.

deleted text begin Appropriation deleted text end new text begin Citizen workshop meeting new text end .

(a) deleted text begin The amount necessary to fund
obligations under subdivision 2 is annually appropriated from the general fund to the
commissioner of revenue. deleted text end new text begin A participating local government must hold a citizen workshop
meeting to:
new text end

new text begin (1) identify the ten performance measures selected for evaluation;
new text end

new text begin (2) determine a strategy and adopt a plan for improvement of at least one performance
measure;
new text end

new text begin (3) review and report the results of the performance measures implemented in the previous
year, if applicable; and
new text end

new text begin (4) provide an opportunity for public comment.
new text end

(b) deleted text begin The sum of $6,000 in fiscal year 2011 and $2,000 in each fiscal year thereafter is
annually appropriated from the general fund to the state auditor to carry out the auditor's
responsibilities under sections 6.90 to 6.91. deleted text end new text begin The meeting described in paragraph (a) must
be held between August 15 and September 15 each year, no earlier than 6:00 p.m. Notice
of the meeting must be provided to the public by posting on the local government's website
or through direct mail at least 15 days before the meeting date. This meeting must be held
before and separate from the meeting at which the local government sets its preliminary
budget and levy.
new text end

new text begin Subd. 5. new text end

new text begin Final meeting; resolution. new text end

new text begin At the meeting at which a participating local
government sets its final budget and levy, under section 275.07, subdivision 1, the
participating local government must approve a resolution declaring that:
new text end

new text begin (1) it adopted, implemented, and identified for improvement at least one performance
measure to be implemented in the following year;
new text end

new text begin (2) it developed a plan for the performance measure's improvement;
new text end

new text begin (3) it held a citizen workshop meeting during which it presented the performance
measures selected for the upcoming year to the public and allowed for public comment;
and
new text end

new text begin (4) performance measure results from the previous year, if applicable, were made public
as required by subdivision 6.
new text end

new text begin Subd. 6. new text end

new text begin Reporting requirements. new text end

new text begin (a) A participating local government must report
the program results to its citizens annually through publication, direct mailing, posting on
the local government's website, or through the citizen workshop meeting.
new text end

new text begin (b) By July 1 each year, a participating local government must report to the state auditor
a declaration from the local government's governing body that it has complied with the
requirements of subdivisions 3 to 6, certifying its completion of the performance measures
in the previous year. The declaration must contain the local government's resolution adopted
at the final meeting.
new text end

new text begin Subd. 7. new text end

new text begin Reimbursement calculation. new text end

new text begin (a) Beginning in calendar year 2021 and thereafter,
each participating local government that has satisfied the requirements under this section
is eligible for a per capita reimbursement.
new text end

new text begin (b) For eligible counties, the reimbursement is calculated as follows:
new text end

new text begin (1) for a county with a population up to 10,000, the payment is equal to $4 per capita to
a maximum of $20,000;
new text end

new text begin (2) for a county with a population between 10,001 and 30,000, the reimbursement is
equal to $2 per capita to a maximum of $30,000; and
new text end

new text begin (3) for a county with a population over 30,000, the reimbursement is equal to $1 per
capita to a maximum of $150,000.
new text end

new text begin (c) For eligible cities, the reimbursement is calculated as follows:
new text end

new text begin (1) for a city with a population up to 500, the reimbursement is equal to $8 per capita
to a maximum of $2,000;
new text end

new text begin (2) for a city with a population between 501 and 2,500, the reimbursement is equal to
$5 per capita to a maximum of $5,000; and
new text end

new text begin (3) for a city with a population over 2,500, the reimbursement is equal to $2 per capita
to a maximum of $50,000.
new text end

new text begin (d) For purposes of this section, the population data used for the calculation of a
reimbursement is the population of each eligible local government as of January 1 of the
reimbursement distribution year according to data provided by the state demographer.
new text end

new text begin Subd. 8. new text end

new text begin Certification of participation; calculation of payment. new text end

new text begin (a) By August 1 each
year, the state auditor shall certify to the commissioner of revenue the counties and cities
that are participating in the local performance measurement program and are eligible to
receive a reimbursement.
new text end

new text begin (b) By October 1 each year, the commissioner of revenue shall certify to the eligible
local governments the amount of reimbursement it will receive.
new text end

new text begin (c) The commissioner of revenue shall make per capita aid payments under this section
on the second payment date specified in section 477A.015, paragraph (a).
new text end

new text begin Subd. 9. new text end

new text begin Appropriation. new text end

new text begin (a) The amount necessary to fund obligations under this section
is annually appropriated from the general fund to the commissioner of revenue.
new text end

new text begin (b) $6,000 is annually appropriated from the general fund to the state auditor to carry
out the responsibilities under this section and section 6.90.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for reimbursements made in 2021.
new text end