1.1                          A bill for an act 
  1.2             relating to state government; excepting certain 
  1.3             contracts from certain contract management 
  1.4             requirements; abolishing certain reports and providing 
  1.5             for a comprehensive annual report by the department of 
  1.6             economic security; amending Minnesota Statutes 1994, 
  1.7             sections 268.0122, subdivisions 3 and 4; and 268.65, 
  1.8             subdivision 1; Minnesota Statutes 1995 Supplement, 
  1.9             sections 16B.06, subdivision 2a; 268.0124; 268.363; 
  1.10            and 268.98, subdivision 2; Laws 1995, chapter 254, 
  1.11            article 1, section 93; proposing coding for new law in 
  1.12            Minnesota Statutes, chapter 268; repealing Minnesota 
  1.13            Statutes 1994, sections 268.367; 268.37, subdivision 
  1.14            5; and 268.38, subdivision 11; Minnesota Statutes 1995 
  1.15            Supplement, section 268.92, subdivision 10. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.18  16B.06, subdivision 2a, is amended to read: 
  1.19     Subd. 2a.  [EXCEPTION.] The requirements of subdivision 2 
  1.20  do not apply to state contracts of the department of economic 
  1.21  security distributing and the department of children, families, 
  1.22  and learning, to the extent that the department of children, 
  1.23  families, and learning is administering programs transferred 
  1.24  from the department of economic security, that distribute state 
  1.25  and federal funds for the purpose of subcontracting the 
  1.26  provision of program services to eligible recipients.  For these 
  1.27  contracts, the commissioner of economic security each department 
  1.28  is authorized to directly enter into state contracts and 
  1.29  encumber available funds.  For contracts distributing state or 
  1.30  federal funds pursuant to the federal Economic Dislocation and 
  2.1   Worker Adjustment Assistance Act, United States Code, title 29, 
  2.2   section 1651 et seq.; or Minnesota Statutes, sections 268.9771, 
  2.3   268.978, 268.9781, and 268.9782, the commissioner of economic 
  2.4   security is authorized to directly enter into state contracts 
  2.5   with approval of the workforce development council and encumber 
  2.6   available funds to ensure a rapid response to the needs of 
  2.7   dislocated workers.  The commissioner of economic security Each 
  2.8   department shall adopt internal procedures to administer and 
  2.9   monitor funds distributed under these contracts. 
  2.10     Sec. 2.  Minnesota Statutes 1994, section 268.0122, 
  2.11  subdivision 3, is amended to read: 
  2.12     Subd. 3.  [DUTIES AS A STATE AGENCY.] The commissioner 
  2.13  shall: 
  2.14     (1) administer the unemployment insurance laws and related 
  2.15  programs; 
  2.16     (2) administer the aspects of aid to families with 
  2.17  dependent children, general assistance, work readiness, and food 
  2.18  stamps that relate to employment and training services, subject 
  2.19  to the contract under section 268.86, subdivision 2; 
  2.20     (3) administer wage subsidies and the discretionary 
  2.21  employment and training fund; 
  2.22     (4) administer a national system of public employment 
  2.23  offices as prescribed by United States Code, title 29, chapter 
  2.24  4B, the Wagner-Peyser Act, and other federal employment and 
  2.25  training programs; 
  2.26     (5) cooperate with the federal government and its 
  2.27  employment and training agencies in any reasonable manner as 
  2.28  necessary to qualify for federal aid for employment and training 
  2.29  services and money; 
  2.30     (6) enter into agreements with other departments of the 
  2.31  state and local units of government as necessary; 
  2.32     (7) certify employment and training service providers and 
  2.33  decertify service providers that fail to comply with performance 
  2.34  criteria according to standards established by the commissioner; 
  2.35     (8) provide consistent, integrated employment and training 
  2.36  services across the state; 
  3.1      (9) establish the standards for all employment and training 
  3.2   services administered under this chapter; 
  3.3      (10) develop standards for the contents and structure of 
  3.4   the local service unit plans and plans for Indian tribe 
  3.5   employment and training services; 
  3.6      (11) provide current state and substate labor market 
  3.7   information and forecasts, in cooperation with other agencies; 
  3.8      (12) identify underserved populations, unmet service needs, 
  3.9   and funding requirements; 
  3.10     (13) consult with the council for the blind on matters 
  3.11  pertaining to programs and services for the blind and visually 
  3.12  impaired; and 
  3.13     (14) submit to the governor, the commissioners of human 
  3.14  services and finance, and the chairs of the senate finance and 
  3.15  house appropriations committees a semiannual report that: 
  3.16     (a) reports, by client classification, an unduplicated 
  3.17  count of the kinds and number of services furnished through each 
  3.18  program administered or supervised by the department or 
  3.19  coordinated with it; 
  3.20     (b) reports on the number of job openings listed, 
  3.21  developed, available, and obtained by clients; 
  3.22     (c) identifies the number of cooperative agreements in 
  3.23  place, the number of individuals being served, and the kinds of 
  3.24  service provided them; 
  3.25     (d) evaluates the performance of services, such as wage 
  3.26  subsidies, community investments, work readiness, and grant 
  3.27  diversions; and 
  3.28     (e) explains the effects of current employment levels, 
  3.29  unemployment rates, and program performance on the unemployment 
  3.30  insurance fund and general assistance, work readiness, and aid 
  3.31  to families with dependent children caseloads and program 
  3.32  expenditures; and 
  3.33     (15) enter into agreements with Indian tribes as necessary 
  3.34  to provide employment and training services as funds become 
  3.35  available. 
  3.36     Sec. 3.  Minnesota Statutes 1994, section 268.0122, 
  4.1   subdivision 4, is amended to read: 
  4.2      Subd. 4.  [DEMONSTRATION PROJECTS.] The commissioner may 
  4.3   conduct and administer demonstration projects to test methods 
  4.4   and procedures for providing employment and training services.  
  4.5   The demonstration must provide new methods and procedures of 
  4.6   administration and must not conflict with the basic purposes, 
  4.7   coverage, or benefits provided by law.  No demonstration project 
  4.8   authorized by this section is effective until the following 
  4.9   conditions are met: 
  4.10     (a) a comprehensive plan, including the estimated project 
  4.11  costs, is filed with the secretary of the senate and the chief 
  4.12  clerk of the house of representatives at least 60 days before 
  4.13  its effective date; 
  4.14     (b) any required approval by a federal agency is obtained; 
  4.15  and 
  4.16     (c) the comprehensive plan, including the estimated project 
  4.17  costs, is approved by the legislative advisory commission and 
  4.18  filed with the commissioner of administration.  
  4.19     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  4.20  268.0124, is amended to read: 
  4.21     268.0124 [PLAIN LANGUAGE IN WRITTEN MATERIALS.] 
  4.22     (a) To the extent reasonable and consistent with the goals 
  4.23  of providing easily understandable and readable materials and 
  4.24  complying with federal and state laws governing the programs, 
  4.25  all written materials relating to services and determinations of 
  4.26  eligibility for or amounts of benefits that will be given to 
  4.27  applicants for or recipients of assistance under a program 
  4.28  administered or supervised by the commissioner of economic 
  4.29  security must be understandable to a person of average 
  4.30  intelligence and education. 
  4.31     (b) All written materials relating to determinations of 
  4.32  eligibility for or amounts of benefits that will be given to 
  4.33  applicants for or recipients of assistance under programs 
  4.34  administered or supervised by the commissioner of economic 
  4.35  security must be developed to satisfy the plain language 
  4.36  requirements of the plain language contract act under sections 
  5.1   325G.29 to 325G.36.  Materials may be submitted to the attorney 
  5.2   general for review and certification.  Notwithstanding section 
  5.3   325G.35, subdivision 1, the attorney general shall review 
  5.4   submitted materials to determine whether they comply with the 
  5.5   requirements of section 325G.31.  The remedies available 
  5.6   pursuant to sections 8.31 and 325G.33 to 325G.36 do not apply to 
  5.7   these materials.  Failure to comply with this section does not 
  5.8   provide a basis for suspending the implementation or operation 
  5.9   of other laws governing programs administered by the 
  5.10  commissioner. 
  5.11     (c) The requirements of this section apply to all materials 
  5.12  modified or developed by the commissioner on or after July 1, 
  5.13  1988.  The requirements of this section do not apply to 
  5.14  materials that must be submitted to a federal agency for 
  5.15  approval, to the extent that application of the requirements 
  5.16  prevents federal approval. 
  5.17     (d) Nothing in this section may be construed to prohibit a 
  5.18  lawsuit brought to require the commissioner to comply with this 
  5.19  section or to affect individual appeal rights granted pursuant 
  5.20  to section 268.10. 
  5.21     (e) The commissioner shall report annually to the chairs of 
  5.22  the health and human services divisions of the senate finance 
  5.23  committee and the house of representatives appropriations 
  5.24  committee on the number and outcome of cases that raise the 
  5.25  issue of the commissioner's compliance with this section. 
  5.26     Sec. 5.  [268.0125] [ANNUAL REPORT TO LEGISLATURE.] 
  5.27     The commissioner shall provide to the legislature no later 
  5.28  than January 15 of each year a report of department programs and 
  5.29  services.  The report must include: 
  5.30     (1) a description of the department's programs and 
  5.31  services; 
  5.32     (2) the number of clients served by each program or 
  5.33  service; 
  5.34     (3) an evaluation of each program or service; and 
  5.35     (4) recommendations for changes or improvements to the 
  5.36  programs or services. 
  6.1      Sec. 6.  Minnesota Statutes 1995 Supplement, section 
  6.2   268.363, is amended to read: 
  6.3      268.363 [ADVISORY COMMITTEE.] 
  6.4      A 13-member advisory committee is established as provided 
  6.5   under section 15.059 to assist the commissioner in selecting 
  6.6   eligible organizations to receive program grants, and evaluating 
  6.7   the final reports of each organization, and providing 
  6.8   recommendations to the legislature.  Notwithstanding section 
  6.9   15.059, the advisory committee shall not expire before June 30, 
  6.10  1995.  Members of the committee may be reimbursed for expenses 
  6.11  but may not receive any other compensation for service on the 
  6.12  committee.  The advisory committee consists of representatives 
  6.13  of the commissioners of children, families, and learning, human 
  6.14  services, and economic security; a representative of the 
  6.15  chancellor of vocational education; a representative of the 
  6.16  commissioner of the housing finance agency; the director of the 
  6.17  office of jobs policy; and seven public members appointed by the 
  6.18  governor.  Each of the following groups must be represented by a 
  6.19  public member experienced in working with targeted youth:  labor 
  6.20  organizations, local educators, community groups, consumers, 
  6.21  local housing developers, youth between the ages of 16 and 24 
  6.22  who have a period of homelessness, and other homeless persons.  
  6.23  At least three of the public members must be from outside of the 
  6.24  metropolitan area as defined in section 473.121, subdivision 2.  
  6.25  The commissioner may provide staff to the advisory committee to 
  6.26  assist it in carrying out its purpose. 
  6.27     Sec. 7.  Minnesota Statutes 1994, section 268.65, 
  6.28  subdivision 1, is amended to read: 
  6.29     Subdivision 1.  [CREATION.] The commissioner of economic 
  6.30  security shall establish a training program for structurally 
  6.31  unemployed workers under which individuals may be enrolled in an 
  6.32  on-the-job training program, and an additional 1,000 individuals 
  6.33  may be enrolled in classroom training, in accordance with this 
  6.34  section.  Nothing in this section limits or adversely affects 
  6.35  the approved training provisions applicable to an individual 
  6.36  under section 268.08, subdivision 1, clause (3).  An individual 
  7.1   approved under this section is eligible for tuition aid under 
  7.2   the provisions of chapter 136A.  The commissioner shall report 
  7.3   to the legislature annually regarding the status of the training 
  7.4   program. 
  7.5      Sec. 8.  Minnesota Statutes 1995 Supplement, section 
  7.6   268.98, subdivision 2, is amended to read: 
  7.7      Subd. 2.  [REPORTS.] (a) Grantees receiving funds under 
  7.8   sections 268.9771, 268.978, 268.9781, and 268.9782 shall report 
  7.9   to the commissioner information on program participants, 
  7.10  activities funded, and utilization of funds in a form and manner 
  7.11  prescribed by the commissioner. 
  7.12     (b) The commissioner shall report quarterly to the 
  7.13  workforce development council information on prefeasibility 
  7.14  study grants awarded, rapid response and expeditious response 
  7.15  activities, worker adjustment services plans, and dislocation 
  7.16  event services grants.  Specific information to be reported 
  7.17  shall be by agreement between the commissioner and the workforce 
  7.18  development council. 
  7.19     (c) The commissioner shall provide an annual report to the 
  7.20  governor, legislature, and the workforce development council on 
  7.21  the administration of the programs funded under sections 
  7.22  268.9771, 268.978, 268.9781, and 268.9782. 
  7.23     Sec. 9.  Laws 1995, chapter 254, article 1, section 93, is 
  7.24  amended to read: 
  7.25     Sec. 93.  [SPENDING LIMITATION ON CONTRACTS.] 
  7.26     (a) During the biennium ending June 30, 1997, the aggregate 
  7.27  amount spent by all departments or agencies defined in Minnesota 
  7.28  Statutes, section 15.91, subdivision 1, on professional or 
  7.29  technical service contracts may not exceed 95 percent of the 
  7.30  aggregate amount these departments or agencies spent on these 
  7.31  contracts during the biennium from July 1, 1993, to June 30, 
  7.32  1995.  For purposes of this section, professional or technical 
  7.33  service contracts are as defined in Minnesota Statutes, section 
  7.34  16B.17, but do not include contracts for highway construction or 
  7.35  maintenance, contracts between state agencies, contracts paid 
  7.36  for from insurance trust funds, gift and deposit funds, capital 
  8.1   projects funds, or federal funds, contracts with private 
  8.2   collection agencies, contracts that are entered into in 
  8.3   connection with the agency's distribution of grant funds, or 
  8.4   contracts entered into under Minnesota Statutes, section 
  8.5   16B.35 or sections 237.50 to 237.55.  The governor or a 
  8.6   designated official must limit or disapprove proposed contracts 
  8.7   as necessary to comply with this section. 
  8.8      (b) During the biennium ending June 30, 1997, the amount 
  8.9   spent by (1) the house of representatives; (2) the senate; and 
  8.10  (3) the legislative coordinating commission and all groups under 
  8.11  its jurisdiction, from direct-appropriated funds on professional 
  8.12  or technical service contracts may not exceed 95 percent of the 
  8.13  amount spent on these contracts from direct-appropriated funds 
  8.14  during the biennium from July 1, 1993, to June 30, 1995.  Each 
  8.15  entity listed in clauses (1), (2), and (3) of this paragraph 
  8.16  must be treated separately for purposes of determining 
  8.17  compliance with this paragraph, except that the legislative 
  8.18  coordinating commission and all groups under its jurisdiction 
  8.19  must be treated as one unit.  For purposes of this paragraph, 
  8.20  "professional or technical service contract" has the meaning 
  8.21  defined in section 16B.17, but does not include contracts for 
  8.22  actuarial services entered into by the legislative commission on 
  8.23  pensions and retirement, or contracts with other legislative or 
  8.24  state executive agencies.  The house of representatives 
  8.25  committee on rules and legislative administration, the senate 
  8.26  committee on rules and administration, and the legislative 
  8.27  coordinating commission must each determine the amount of the 
  8.28  reduction to be made under this paragraph. 
  8.29     Sec. 10.  [REPEALER.] 
  8.30     Minnesota Statutes 1994, sections 268.367; 268.37, 
  8.31  subdivision 5; 268.38, subdivision 11; Minnesota Statutes 1995 
  8.32  Supplement, section 268.92, subdivision 10, are repealed. 
  8.33     Sec. 11.  [EFFECTIVE DATE.] 
  8.34     Sections 1 to 10 are effective the day following final 
  8.35  enactment.