1.1A bill for an act1.2relating to government innovation; establishing the Commission on Service 1.3Innovation and imposing duties on the commission; establishing Minnovation 1.4Council and imposing powers and duties of council; authorizing innovation and 1.5redesign grants; providing for home rule charter commission for contiguous 1.6counties; establishing the Task Force for Policy Innovation and Research; 1.7requiring reports; appropriating money;amending Minnesota Statutes 2008, 1.8section 3.971, by adding a subdivision; proposing coding for new law in 1.9Minnesota Statutes, chapters 3; 465; proposing coding for new law as Minnesota 1.10Statutes, chapter 372A; repealing Minnesota Statutes 2008, section 6.80.1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.12ARTICLE 11.13COMMISSION ON SERVICE INNOVATION1.14    Section 1. [3.928] COMMISSION ON SERVICE INNOVATION.1.15    Subdivision 1.Establishment.The Commission on Service Innovation is 1.16established to provide the legislature and the Minnovation Council with a strategic plan to 1.17reengineer the delivery of state and local government services, including the realignment 1.18of service delivery by region and proximity, the use of new technologies, shared facilities, 1.19centralized information technologies, and other means of improving efficiency.1.20    Subd. 2.Membership.(a) The commission consists of 19 members, appointed 1.21as follows:1.22(1) one representative of the Minnesota Chamber of Commerce;1.23(2) one representative of the Minnesota Business Partnership;1.24(3) one representative of the McKnight Foundation;1.25(4) one representative of the Wilder Foundation;1.26(5) one representative of the Bush Foundation;2.1(6) one representative of the Minnesota Council of Nonprofits;2.2(7) one representative of the Citizens League;2.3(8) one representative of the Minnesota Association of Townships;2.4(9) one representative of the Association of Minnesota Counties;2.5(10) one representative of the League of Minnesota Cities;2.6(11) one representative of the University of Minnesota;2.7(12) one representative of the Minnesota State Colleges and Universities;2.8(13) one representative of the Minnesota Association of School Administrators;2.9(14) two representatives of the American Federation of State, County, and Municipal 2.10Employees, including one from council 5 and one from council 65;2.11(15) one representative of the Minnesota Association of Professional Employees;2.12(16) one representative of the Service Employees International Union; 2.13(17) one representative of the Minnesota High Tech Association; and2.14(18) the state chief information officer.2.15(b) The appointments required by this section must be completed by June 30, 2.162010. Appointing authorities shall notify the state chief information officer when making 2.17their appointments. The members of the commission shall serve at the pleasure of the 2.18appointing authorities.2.19    Subd. 3.Organization.(a) Within two weeks after completion of the appointments 2.20under subdivision 2, the state chief information officer shall convene the first meeting of 2.21the commission. The state chief information officer shall provide meeting space for the 2.22commission. The commission shall select co-chairpersons from its appointed membership 2.23at the first meeting. Members of the legislature may attend the meetings of the commission 2.24and participate as nonvoting members of the commission.2.25(b) The commission shall provide notice of its meetings to the public and to 2.26interested members of the legislature. Meetings of the commission are subject to chapter 2.2713D. The commission shall post all reports required under this section on the Legislative 2.28Coordinating Commission Web site.2.29(c) The commission may solicit and receive private contributions. Money received 2.30under this paragraph is deposited in a special revenue account and appropriated to the 2.31commission for the purposes of this section. The commission may provide per diem 2.32payments to voting members as determined by the commission from the appropriation 2.33in this paragraph. No public money may be used to provide payment of per diems or 2.34expenses for members of the commission. The commission may hire staff to assist the 2.35commission in its work.3.1(d) The commission shall solicit and coordinate public input. The commission 3.2must use its best efforts to maximize public involvement in the work of the commission, 3.3including the use of best practices in social media. The commission may retain an expert 3.4in the use of social media to assist in public outreach and involvement.3.5    Subd. 4.Reporting.(a) Beginning August 1, 2010, the commission shall publish 3.6electronic monthly reports on its progress, including a description of upcoming agenda 3.7items.3.8(b) By January 15 of each year, beginning in 2011, the commission shall report to 3.9the chairs and ranking minority members of the legislative committees and divisions with 3.10jurisdiction over state government policy and finance regarding its work under this section 3.11and to the Board of Innovation established under section 465.7902, with a strategic plan 3.12containing findings and recommendations to improve state and local government delivery 3.13of public services. The strategic plan must address:3.14(1) how to enhance the public involvement and input as the public uses state and 3.15local government services and public schools;3.16(2) how technology can be leveraged to reduce costs and enhance quality;3.17(3) how service innovation will conserve substantial financial resources; 3.18(4) a transition plan and governance structure that will facilitate high-quality 3.19innovation and change in the future;3.20(5) how service innovation will increase value or results per dollar spent; 3.21(6) the design for a platform that will facilitate high-quality innovation and evaluate 3.22state and local government structural redesign in the future;3.23(7) how to improve public sector employee productivity;3.24(8) the security of individual data and government programs;3.25(9) data transparency and accountability;3.26(10) centralized and shared services; and3.27(11) data interoperability across jurisdictions.3.28The strategic plan shall also provide a process to review and modify 3.29recommendations at regular intervals in the future based on specific results measured 3.30at regular intervals.3.31The strategic plan shall also include any proposed legislation necessary to implement 3.32the commission's recommendations.3.33    Subd. 5.Expiration.This section expires June 30, 2012.4.1ARTICLE 24.2HOME RULE CHARTER FOR CONTIGUOUS COUNTIES4.3    Section 1. [372A.01] HOME RULE CHARTER FOR CONTIGUOUS COUNTIES.4.4Any two or more contiguous counties in the state may propose a county home rule 4.5charter commission as provided in this chapter.4.6The county board of each contiguous county shall adopt a resolution to establish a 4.7home rule charter commission for the counties. The resolution must name the contiguous 4.8counties proposing to establish the charter commission.4.9    Sec. 2. [372A.02] CHARTER COMMISSION; NOMINATIONS AND 4.10APPOINTMENTS.4.11    Subdivision 1.Publication.Within 30 days after the date of the resolution in section 4.12372A.01, the county board of each county shall publish the resolution and a notice inviting 4.13interested persons to apply to the county board of commissioners for consideration by the 4.14county board and the joint legislative delegation for nomination to the charter commission. 4.15The resolution and notice must be published at least once a week for two successive weeks 4.16in a qualified newspaper of general circulation within each county. If one newspaper is a 4.17qualified newspaper of general circulation for more than one county, those counties may 4.18publish jointly. The county boards shall furnish copies of the applications to the members 4.19of the joint legislative delegation.4.20    Subd. 2.Nomination.(a) Within 60 days after the date of the resolution in section 4.21372A.01, the county board of each county shall nominate 15 persons as candidates for 4.22appointment to a charter commission to propose a charter to provide for the form of 4.23county government for the counties. Three persons who reside in the district must be 4.24nominated for each of the county commissioner districts in each county. Immediately 4.25following selection of the nominees, the county board of each county shall submit the 4.26nominations, together with the county board resolution, to the chief judge of the district 4.27court with jurisdiction in the county.4.28(b) Within 75 days after the date of the resolution in section 372A.01, the joint 4.29legislative delegation of each county shall nominate six persons who reside in the county 4.30as candidates for appointment to a charter commission to propose a charter to provide for 4.31the form of county government for the counties. The six persons must be nominated 4.32without regard to county commissioner districts. Immediately following selection of the 4.33nominees, the delegation shall submit the nominations to the chief judge of the district 4.34court with jurisdiction in the county. For purposes of this section, "joint legislative 5.1delegation" means all elected members of the house of representatives and senate 5.2whose legislative district includes a portion of a county proposing a home rule charter 5.3commission under section 372A.01.5.4    Subd. 3.Appointment.Within 30 days after the last submission of nominations, the 5.5chief judge shall appoint to the charter commission seven members for each county, one 5.6appointee for each county commissioner district in each county, selected from those who 5.7were nominated by county commissioner district, and two appointees from each county 5.8who were nominated to serve from the county without regard to county commissioner 5.9districts. The commission members must be qualified voters in the county from which 5.10they are appointed. A person is not disqualified from serving on the charter commission 5.11because the person holds an elective or appointive office. The appointing authority shall 5.12fill any vacancies. Appointments must be filed with the board of county commissioners 5.13of the county in which the appointee resides. An appointee must file an acceptance with 5.14the board within ten days after notification of the appointment or be considered to have 5.15declined the appointment.5.16    Sec. 3. [372A.03] CHARTER COMMISSION; TERMS; ADMINISTRATION.5.17    Subdivision 1.Chair; rules.The charter commission shall meet within 30 days 5.18after the initial appointment, elect a chair from among the members, and establish rules, 5.19including quorum requirements, for its operation and procedures.5.20    Subd. 2.Expenses and administration.The members of the charter commission 5.21receive no compensation except reimbursement for expenses actually incurred in the 5.22course of  their duties. The board of county commissioners of each county may make 5.23appropriations to the charter commission to be used to employ research and clerical 5.24assistance, for supplies, and to meet expenses considered necessary by the charter 5.25commission. The charter commission may request and receive assistance from any county 5.26official. If requested, a personnel director shall assist the  charter commission to test and 5.27hire employees. If requested, a county attorney shall provide legal services.5.28    Subd. 3.Terms.Members of the charter commission hold office until a final report 5.29has been made under section 372A.04.5.30    Sec. 4. [372A.04] CHARTER COMMISSION; POWERS AND DUTIES.5.31    Subdivision 1.Report to county boards.The charter commission shall deliver 5.32to the board of county commissioners of each contiguous county either (1) its report 5.33determining that the present form of county government is adequate for the county and 6.1that a charter is not necessary or desirable, or (2) a draft of a proposed charter. The report 6.2must be signed by a majority of the members of the charter commission.6.3    Subd. 2.Contents of report. The proposed charter may provide for any form of 6.4government consistent with the Constitution of the state of Minnesota. It may provide for 6.5the establishment and administration of all departments of a county government and for 6.6the regulation of all local county functions. It may abolish or consolidate any department 6.7or agency. It must provide for present functions to be assumed by new elective or 6.8appointive officers as provided in the charter and may provide for other powers consistent 6.9with other law. It must provide methods of procedure in respect to the operation of the 6.10government created and the duties of all officers. It must provide for a home rule charter 6.11commission consistent with article XII, section 5, of the Constitution of the state of 6.12Minnesota and may provide for alternative methods for amending or abandoning the 6.13charter consistent with the Constitution. A county may be authorized to acquire by 6.14gift, devise, purchase, or condemnation or sell or lease any property needed for the full 6.15discharge of its duties and powers.6.16    Subd. 3.Public hearings. The charter commission must hold at least one public 6.17hearing on the report in each of the county commissioner districts. Based upon the 6.18public hearings, the charter commission may revise the report. The revised report must 6.19be signed by a majority of the members of the charter commission, and delivered to 6.20the county boards.6.21    Sec. 5. [372A.05] ELECTION; BALLOT.6.22    Subdivision 1.Procedure; notice.Upon delivery of the final proposed charter to the 6.23board of county commissioners in each county, each board shall submit it to the voters in 6.24that county at a general election. The notice of election must contain the complete charter 6.25and must be published once a week for two successive weeks in a qualified newspaper 6.26of general circulation within each county.6.27    Subd. 2.Ballot form.The ballot must at least contain the following question 6.28with additional descriptive language, approved by the secretary of state, that the charter 6.29commission may include:6.30"Shall the proposed county charter be adopted?

6.31Yes 
                     							.....
                     						6.32No 
                     							.....
                     						"

6.33The voter shall place an "X" after one of the last two words to express the voter's choice.6.34    Sec. 6. [372A.06] ADOPTION OF CHARTER.7.1If a majority of the votes cast in a county on the proposition are in favor of the 7.2proposed charter, it must be considered adopted for that county. The charter takes effect 7.3two years after the election.7.4    Sec. 7. [372A.07] HOME RULE CHARTER COUNTY POWERS AND DUTIES.7.5    Subdivision 1.General rule.Unless specifically provided otherwise in general laws 7.6or statutes, the term "county" when used in Minnesota Statutes or any general legislative 7.7act includes home rule charter counties organized under this chapter. In addition to powers 7.8and duties granted or imposed under its charter, a home rule charter county has all the 7.9powers granted a county by law and all of the duties imposed upon it by law. If a charter 7.10provision conflicts with a general law, the requirements of the law prevail.7.11    Subd. 2.County bonds and indebtedness.All general and special laws authorizing 7.12a county to incur indebtedness or issue bonds are subject to the charter if the charter 7.13provisions are not in conflict with general laws relating to indebtedness.7.14    Subd. 3.Personnel exception.A home rule charter does not apply to personnel 7.15matters relating to employees of a county, which continue to be governed by law.7.16ARTICLE 37.17MINNOVATION COUNCIL7.18    Section 1. Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision 7.19to read:7.20    Subd. 9.Recommendations to the Minnovation Council.The legislative auditor 7.21may make recommendations to the Minnovation Council established under section 7.22465.7902 that will assist the council in accomplishing its duties.7.23    Sec. 2. [465.7901] DEFINITIONS.7.24    Subdivision 1.Agency."Agency" means a department, agency, board, or other 7.25instrumentality of state government that has jurisdiction over an administrative rule or 7.26law from which a waiver is sought under section 465.7903. If no specific agency has 7.27jurisdiction over such a law, agency refers to the attorney general.7.28    Subd. 2.Council."Council" means the Minnovation Council established by 7.29section 465.7902.7.30    Subd. 3.Local government unit."Local government unit" means a county, home 7.31rule charter or statutory city, school district, town, or special taxing district.7.32    Subd. 4.Metropolitan agency."Metropolitan agency" has the meaning given in 7.33section 473.121, subdivision 5a.8.1    Subd. 5.Metropolitan area."Metropolitan area" has the meaning given in section 8.2473.121, subdivision 2.8.3    Subd. 6.Metropolitan Council."Metropolitan Council" means the Metropolitan 8.4Council established by section 473.123.8.5    Subd. 7.Scope.As used in sections 465.7901 to 465.7909, the terms defined in 8.6this section have the meanings given them.8.7    Sec. 3. [465.7902] MINNOVATION COUNCIL.8.8    Subdivision 1.Membership.The Minnovation Council consists of 16 members, 8.9appointed as follows:8.10(1) two members of the senate, appointed by the Subcommittee on Committees of 8.11the Senate Committee on Rules and Administration, one member of the majority caucus 8.12and one member of the largest minority caucus;8.13(2) two members of the house of representatives, appointed by the speaker of the 8.14house, one member of the majority caucus and one member of the largest minority caucus;8.15(3) the commissioner of management and budget;8.16(4) the commissioner of administration;8.17(5) the state chief information officer;8.18(6) an administrative law judge appointed by the chief administrative law judge;8.19(7) the state auditor; 8.20(8) two members with a background in academic research concerning system 8.21redesign and delivery, including one member appointed by the chancellor of the Minnesota 8.22State Colleges and Universities and one member appointed by the president of the 8.23University of Minnesota;8.24(9) one member with experience in the leadership of nonprofit organizations, 8.25appointed by the Minnesota Council of Nonprofits;8.26(10) one member with experience in foundation leadership appointed by the 8.27Minnesota Council on Foundations;8.28(11) one member with experience as a leader of a for-profit corporation, appointed 8.29by the Minnesota Chamber of Commerce; 8.30(12) one member representing public employees appointed by the American 8.31Federation of State, County and Municipal Employees; and8.32(13) one member representing the public sector redesign community appointed 8.33by the Citizens League.8.34All members must have experience or interest in the work of system redesign or public 8.35sector innovation. The legislative members serve as nonvoting members. Only members 9.1designated in clauses (3) to (7) may vote on proposed rule or law waivers under section 9.2465.7903. A commissioner serving on the council may designate an employee from the 9.3commissioner's agency to serve as the commissioner's designee. A person registered as a 9.4lobbyist under chapter 10A may not be a member of the council.9.5    Subd. 2.Duties of council.The council shall:9.6(1) accept applications from local government units and nonprofit organizations for 9.7waivers of administrative rules and temporary, limited exemptions from enforcement of 9.8procedural requirements in state law as provided in section 465.7903, and determine 9.9whether to approve, modify, or reject the application;9.10(2) accept applications for grants to local government units and related organizations 9.11proposing to design models or plans for innovative service delivery and management as 9.12provided in section 465.7905, and determine whether to approve, modify, or reject the 9.13application;9.14(3) accept applications from eligible local government units for service-sharing 9.15grants as provided in section 465.7905, and determine whether to approve, modify, 9.16or reject the application;9.17(4) make recommendations to the legislature for the authorization of pilot projects 9.18for the implementation of innovative service delivery activities that require statutory 9.19authorization;9.20(5) make recommendations to the legislature regarding the elimination of state 9.21mandates that inhibit local government efficiency, innovation, and cooperation by 9.22prescribing specific processes for achieving a desired outcome;9.23(6) investigate and review the role of unfunded state mandates in intergovernmental 9.24relations and assess their impact on state and local government objectives and 9.25responsibilities;9.26(7) make recommendations to the governor and the legislature regarding:9.27(i) allowing flexibility for local units of government in complying with specific 9.28unfunded state mandates for which terms of compliance are unnecessarily rigid or 9.29complex;9.30(ii) reconciling any two or more unfunded state mandates that impose contradictory 9.31or inconsistent requirements;9.32(iii) terminating unfunded state mandates that are duplicative, obsolete, or lacking 9.33in practical utility;9.34(iv) suspending, on a temporary basis, unfunded state mandates that are not vital 9.35to public health and safety and that compound the fiscal difficulties of local units of 9.36government, including recommendations for initiating the suspensions;10.1(v) consolidating or simplifying unfunded state mandates or the planning or 10.2reporting requirements of the mandates, in order to reduce duplication and facilitate 10.3compliance by local units of government with those mandates; and10.4(vi) establishing common state definitions or standards to be used by local units of 10.5government in complying with unfunded state mandates that use different definitions or 10.6standards for the same terms or principles; 10.7(8) identify relevant unfunded state mandates;10.8(9) upon request of the legislature, review individual state agencies, boards, 10.9commissions, or councils for purposes of  making recommendations to the legislature on 10.10whether the group should continue or should be sunset;10.11(10) facilitate proposals for grants made by eligible applicants; and10.12(11) make recommendations on topics to the Legislative Audit Commission for 10.13program evaluations that are likely to result in recommendations that will improve the 10.14cost-effective delivery of government services.10.15Each recommendation under clause (7) must, to the extent practicable, identify 10.16the specific unfunded state mandates to which the recommendation applies. The 10.17commissioners or directors of state agencies responsible for the promulgation or 10.18enforcement of the unfunded mandates addressed in clauses (5) to (11) shall assist the 10.19council in carrying out the council's duties under this section.10.20    Subd. 3.Additional coordinating functions.The council may also:10.21(1) serve as a clearinghouse for existing ideas and information from community 10.22leaders;10.23(2) provide a Web site where interested parties may share information and practices;10.24(3) receive recommendations from the legislative auditor concerning waivers and 10.25other initiatives within the council's jurisdiction;10.26(4) conduct research concerning innovation in service delivery and local government 10.27efficiency, innovation, and cooperation;10.28(5) facilitate regional dialogue concerning successful innovation and collaboration; 10.29and10.30(6) use its best efforts to maximize public involvement in its work, including the use 10.31of best practices in social media.10.32    Subd. 4.Staff.The council shall hire an executive director who serves as the state's 10.33chief innovation officer. The council may hire other staff or consultants as necessary to 10.34perform its duties. The commissioner of administration must provide administrative 10.35support services to the council.11.1    Subd. 5.Terms and removal.Members serve at the pleasure of the appointing 11.2authority.11.3    Subd. 6.Available resources.The duties imposed under sections 465.7902 to 11.4465.7907 must be performed to the extent possible given existing resources.11.5    Sec. 4. [465.7903] RULE AND LAW WAIVER REQUESTS.11.6    Subdivision 1.Generally.(a) Except as provided in paragraph (b), a local 11.7government unit or a nonprofit organization may request the Minnovation Council to 11.8grant a waiver from one or more administrative rules or a temporary, limited exemption 11.9from enforcement of state procedural laws governing delivery of services by the local 11.10government unit or nonprofit organization. Two or more local government units may 11.11submit a joint application for a waiver or exemption under this section if they propose 11.12to cooperate in providing a service or program that is subject to the rule or law. Before 11.13a local unit of government may submit an application to the council, the governing 11.14body of the local government unit must approve, in concept, the proposed waiver or 11.15exemption at a meeting required to be public under chapter 13D. A waiver or exemption 11.16granted to a nonprofit organization under this section applies to services provided to 11.17all of the organization's clients.11.18(b) A school district that is granted a variance from rules of the commissioner of 11.19education under section 122A.163 need not apply to the council for a waiver of those rules 11.20under this section. A school district may not seek a waiver of rules under this section if 11.21the commissioner of education has authority to grant a variance to the rules under section 11.22122A.163. This paragraph does not preclude a school district from being included in a 11.23cooperative effort with another local government unit under this section.11.24    Subd. 2.Application.(a) A local government unit or nonprofit organization 11.25requesting a waiver of a rule or exemption from enforcement of a law under this section 11.26shall present a written application to the council. The application must include:11.27(1) identification of the service or program at issue;11.28(2) identification of the administrative rule or the law imposing a procedural 11.29requirement with respect to which the waiver or exemption is sought; and11.30(3) a description of the improved service outcome sought, including an explanation 11.31of the effect of the waiver or exemption in accomplishing that outcome.11.32(b) A local government unit submitting an application must provide a copy to the 11.33exclusive representative certified under section 179A.12 to represent employees who 11.34provide the service or program affected by the requested waiver or exemption.12.1    Subd. 3.Review process.(a) Upon receipt of an application, the council shall 12.2commence review of the application, as provided in this subdivision. The council shall 12.3dismiss an application if it finds that the application proposes a waiver of rules or 12.4exemption from enforcement of laws that would result in due process violations, violations 12.5of federal law or the state or federal constitution, or the loss of services to people who 12.6are entitled to them. If the council does not dismiss an application, the council must 12.7publish notice in the State Register before it acts on the application. The notice must list 12.8the name of the local government unit or nonprofit organization requesting the waiver or 12.9exemption, the service or program at issue, and the rule or law with respect to which the 12.10waiver of exemption is sought.12.11(b) The council shall determine whether a law from which an exemption for 12.12enforcement is sought is a procedural law, specifying how a local government unit or 12.13nonprofit organization is to achieve an outcome, rather than a substantive law prescribing 12.14the outcome or otherwise establishing policy. For the purposes of this section, "procedural 12.15law" does not include a statutory notice requirement. For purposes of this section, 12.16"procedural law" may not include any provision related to voting or elections. In making 12.17its determination, the council shall consider whether the law specifies such requirements 12.18as:12.19(1) who must deliver a service;12.20(2) where the service must be delivered;12.21(3) to whom and in what form reports regarding the service must be made; and12.22(4) how long or how often the service must be made available to a given recipient.12.23(c) If a member of the council also is a commissioner, a commissioner's designee, or 12.24the state auditor, or is employed by an agency with jurisdiction over a rule or law affected 12.25by an application, the member must not participate in the decision on the particular waiver 12.26or exemption.12.27(d) If the application is submitted by a local government unit or a nonprofit 12.28organization in the metropolitan area or the unit or nonprofit organization requests a 12.29waiver of a rule or temporary, limited exemptions from enforcement of a procedural 12.30law over which the Metropolitan Council or a metropolitan agency has jurisdiction, the 12.31council shall also transmit a copy of the application to the Metropolitan Council for 12.32review and comment. The Metropolitan Council shall report its comments to the council 12.33within 60 days of the date the application was transmitted to the Metropolitan Council. 12.34The Metropolitan Council may point out any resources or technical assistance it may be 12.35able to provide a local government unit or nonprofit organization submitting a request 12.36under this section.13.1(e) Within 15 days after receipt of the application, the council shall transmit a copy 13.2of it to the commissioner of each agency having jurisdiction over a rule or law from which 13.3a waiver or exemption is sought. The agency may mail a notice that it has received an 13.4application for a waiver or exemption to all persons who have registered with the agency 13.5under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or 13.6exemption is requested. If no agency has jurisdiction over the rule or law, the council shall 13.7transmit a copy of the application to the attorney general. The agency shall inform the 13.8council of its agreement with or objection to and grounds for objection to the waiver or 13.9exemption request within 60 days of the date when the application was transmitted to it. 13.10An agency's failure to respond under this paragraph is considered agreement to the waiver 13.11or exemption. The council shall decide whether to grant a waiver or exemption at its next 13.12regularly scheduled meeting following its receipt of an agency's response or the end of 13.13the 60-day response period. If consideration of an application is not concluded at that 13.14meeting, the matter may be carried over to the next meeting of the council. Interested 13.15persons may submit written comments and requests to present oral comments to the 13.16council on the waiver or exemption request up to the time of its vote on the application.13.17(f) If the exclusive representative of the affected employees of the requesting local 13.18government unit objects to the waiver or exemption request, it may inform the council 13.19of the objection to and the grounds for the objection to the waiver or exemption request 13.20within 60 days of the receipt of the application.13.21    Subd. 4.Hearing.If the agency or the exclusive representative does not agree 13.22with the waiver or exemption request, the council shall set a date for a hearing on the 13.23application. The hearing must be conducted informally at a meeting of the council. 13.24Persons representing the local government unit shall present their request for the waiver or 13.25exemption, and a representative from the agency shall explain the agency's objection to the 13.26waiver or exemption. Members of the council may request additional information from 13.27either party. The council may also request, either before or at the hearing, information 13.28or comments from representatives of business, labor, local governments, state agencies, 13.29consultants, and members of the public. If a member of the public requests to present 13.30comments or information at the hearing, the council must permit the member of the 13.31public an opportunity to present the comments or information. If necessary, the hearing 13.32may be continued at a subsequent council meeting. A waiver or exemption requires a 13.33majority vote of the council members. The council may modify the terms of the waiver or 13.34exemption request in arriving at the agreement required under subdivision 5.13.35    Subd. 5.Conditions of agreements.(a) If the council grants a request for a waiver 13.36or exemption, the council and the entity making the request shall enter into an agreement 14.1providing for the delivery of the service or program that is the subject of the application. 14.2The agreement must specify desired outcomes and the means of measurement by which 14.3the council will determine whether the outcomes specified in the agreement have been 14.4met. The agreement must specify the duration of the waiver or exemption. The duration of 14.5a waiver from an administrative rule may be for no less than two years and no more than 14.6four years, subject to renewal if both parties agree. An exemption from enforcement of a 14.7law terminates ten days after adjournment of the regular legislative session held during the 14.8calendar year following the year when the exemption is granted, unless the legislature has 14.9acted to extend or make permanent the exemption.14.10(b) If the council grants a waiver or exemption, it must report the waiver or 14.11exemption to the legislature, including the chairs of the governmental operations and 14.12appropriate policy committees in the house of representatives and senate, and the governor 14.13within 30 days.14.14(c) The council may reconsider or renegotiate the agreement if the rule or law 14.15affected by the waiver or exemption is amended or repealed during the term of the original 14.16agreement. A waiver of a rule under this section has the effect of a variance granted by 14.17an agency under section 14.055. The recipient of an exemption from enforcement of a 14.18procedural requirement in state law under this section is exempt from that law for the 14.19duration of the exemption. The council may require periodic reports from the recipient, or 14.20conduct investigations of the service or program.14.21    Subd. 6.Enforcement.If the council finds that the recipient of a waiver or an 14.22exemption has failed to comply with the terms of the agreement under subdivision 5, it 14.23may rescind the agreement. After an agreement is rescinded, the recipient is subject to the 14.24rules and laws covered by the agreement.14.25    Subd. 7.Access to data.If the recipient of a waiver or an exemption through a 14.26cooperative program under this section gains access to data that is classified as not public, 14.27the access to and use of the data for the recipient is governed by the same restrictions on 14.28access to and use of the data that apply to the unit that collected, created, received, or 14.29maintained the data.14.30    Sec. 5. [465.7904] WAIVERS OF STATE RULES; POLICIES.14.31    Subdivision 1.Application.A state agency may apply to the council for a waiver 14.32from:14.33(1) an administrative rule or policy adopted by the commissioner of management 14.34and budget that deals with the state personnel system;15.1(2) an administrative rule or policy of the commissioner of administration that 15.2deals with the state procurement system; or15.3(3) a policy of the commissioner of management and budget  that deals with the 15.4state accounting system.15.5Two or more state agencies may submit a joint application. A waiver application 15.6must identify the rule or policy at issue, and must describe the improved outcome sought 15.7through the waiver.15.8    Subd. 2.Review process.(a) The council shall review all applications submitted 15.9under this section. The council shall dismiss an application if it finds that the application 15.10proposes a waiver that would result in due process violations, violations of federal law 15.11or the state or federal constitution, or the loss of services to people who are entitled to 15.12them. If a proposed waiver would violate the terms of a collective bargaining agreement 15.13effective under chapter 179A, the waiver is not effective without the consent of the 15.14exclusive representative that is a party to the agreement. The council may approve a 15.15waiver only if the council determines that if the waiver is granted: (1) services can 15.16be provided in a more efficient or effective manner; and (2) services related to human 15.17resources must be provided in a manner consistent with section 43A.01. In the case of a 15.18waiver from a policy of the commissioner of management and budget, the council may 15.19approve the waiver only if it determines that services will be provided in a more efficient 15.20or effective manner and that state funds will be adequately accounted for and safeguarded 15.21in a manner that complies with generally accepted government accounting principles.15.22(b) Within 15 days of receipt of the application, the council shall send a copy of the 15.23application to: (1) the agency whose rule or policy is involved; and (2) all exclusive 15.24representatives who represent employees of the agency requesting the waiver. The agency 15.25whose rule or policy is involved may mail a copy of the application to all persons who 15.26have registered with the agency under section 14.14, subdivision 1a.15.27(c) The agency whose rule or policy is involved or an exclusive representative shall 15.28notify the council of its agreement with or objection to and grounds for objection to the 15.29waiver within 60 days of the date when the application was transmitted to the agency or 15.30the exclusive representative. An agency's or exclusive representative's failure to respond 15.31under this paragraph is considered agreement to the waiver.15.32(d) If the agency or the exclusive representative objects to the waiver, the council 15.33shall schedule a meeting at which the agency requesting the waiver may present its case 15.34for the waiver and the objecting party may respond. The council shall decide whether 15.35to grant a waiver at its next regularly scheduled meeting following its receipt of an 15.36agency's response, or the end of the 60-day response period, whichever occurs first. If 16.1consideration of an application is not concluded at the meeting, the matter may be carried 16.2over to the next meeting of the council. Interested persons may submit written comments 16.3to the council on the waiver request.16.4(e) If the council grants a request for a waiver, the council and the agency requesting 16.5the waiver shall enter into an agreement relating to the outcomes desired as a result of the 16.6waiver and the means of measurement to determine whether those outcomes have been 16.7achieved with the waiver. The agreement must specify the duration of the waiver, which 16.8must be for at least two years and not more than four years. If the council determines that 16.9an agency that has received a waiver is failing to comply with the terms of the agreement, 16.10the council may rescind the agreement.16.11    Subd. 3.Participation.If a waiver request involves a rule or policy adopted by an 16.12official specified in section 465.7902, subdivision 1, clauses (3) to (7), that official may 16.13not participate in the evaluation of that waiver request.16.14    Sec. 6. [465.7905] INNOVATION AND REDESIGN GRANTS.16.15    Subdivision 1.Application.One or more local units of government, an association 16.16of local governments, the Metropolitan Council, a local unit of government acting in 16.17conjunction with an organization or a state agency, an organization established by two 16.18or more local units of government under a joint powers agreement, or a not-for-profit 16.19organization may apply to the Minnovation Council for a grant to be used to: (1) develop 16.20models for service redesign; or (2) meet the start-up costs of providing shared services 16.21or functions. Agreements solely to make joint purchases do not qualify for grants. The 16.22application must specify a nonstate funding source for 25 percent of the total cost of the 16.23proposal. The application to the council must state what other sources of funding have 16.24been considered by the local units of government to implement the project and explain why 16.25it is not possible to complete the project without assistance from the council. The council 16.26may not award a grant if it determines that the local units of government could complete 16.27the project without council assistance or if it determines the applicant has not specified a 16.28nonstate funding source for 25 percent of the total cost. A copy of the application must be 16.29provided by the units to the exclusive representatives certified under section 179A.12 to 16.30represent employees who provide the service or program affected by the application.16.31    Subd. 2.Proposals.(a) Proposed models for service redesign may provide options 16.32to local governments, neighborhood or community organizations, other not-for-profit 16.33organizations, or individuals to redesign service delivery. In awarding grants under this 16.34paragraph, the council must consider whether the proposal:16.35(1) expands consumer choices and opportunities;17.1(2) shifts government toward an expanded role as a purchaser, rather than a provider, 17.2of services;17.3(3) reduces administrative costs through statewide or regional contracting, or related 17.4administrative efficiencies;17.5(4) reduces administrative costs through the accumulation of multiple related 17.6services into a single contract with one provider, or related administrative efficiencies;17.7(5) fosters entrepreneurial leadership in the public sector; and17.8(6) increases value to the taxpayer or results per dollar spent.17.9(b) A proposal for a grant for shared services or functions must include plans to 17.10fully integrate a service or function provided by two or more local government units. 17.11The proposal must include how value for the taxpayer or results per dollar spent will be 17.12impacted. 17.13    Subd. 3.Requirements.A copy of the work product for which the grant was 17.14provided must be furnished to the council upon completion, and the council may 17.15disseminate it to other local units of government or interested groups. If the council finds 17.16that the work was not completed or implemented according to the terms of the grant 17.17agreement, it may require the grantee to repay all or a portion of the grant. The council 17.18shall award grants on the basis of each qualified applicant's score under the scoring 17.19system in section 465.7906. The amount of a grant under subdivision 2, paragraph (a), 17.20may not exceed $250,000. The amount of a grant under subdivision 2, paragraph (b), 17.21may not exceed $100,000.17.22    Sec. 7. [465.7906] SCORING SYSTEM.17.23In deciding whether to award a grant under section 465.7905, the council shall 17.24use the following scoring system:17.25(1) Up to 15 points must be awarded to reflect the extent to which the application 17.26demonstrates creative thinking, careful planning, cooperation, involvement of the clients 17.27of the affected service, and commitment to persist through challenges.17.28(2) Up to 25 points must be awarded to reflect the extent to which the proposed 17.29project is likely to improve the quality of the service, increase value to the taxpayers or 17.30results per dollar spent, and to have benefits for other local governments.17.31(3) Up to 15 points must be awarded to reflect the extent to which the application's 17.32budget provides sufficient detail, maximizes the use of state funds, documents the need 17.33for financial assistance, commits to local financial support, and limits expenditures to 17.34essential activities.18.1(4) Up to 15 points must be awarded to reflect the extent to which the application 18.2reflects the statutory goal of the grant program.18.3(5) Up to 15 points must be awarded to reflect the merit of the proposed project and 18.4the extent to which it warrants the state's financial participation.18.5(6) Up to five points must be awarded to reflect the cost to benefit ratio projected 18.6for the proposed project.18.7(7) Up to five points must be awarded to reflect the number of government units 18.8participating in the proposal.18.9(8) Up to five points must be awarded to reflect the minimum length of time the 18.10application commits to implementation.18.11    Sec. 8. [465.7907] REPAYMENT OF GRANTS.18.12    Subdivision 1.Repayment procedures.Without regard to whether a grant recipient 18.13offered to repay the grant in its original application, as part of a grant awarded under 18.14section 465.7905, the council may require the grant recipient to repay all or part of the 18.15grant if the council determines the project funded by the grant resulted in an actual savings 18.16for the participating local units of government. The grant agreement must specify how the 18.17savings are to be determined and the period of time over which the savings will be used 18.18to calculate a repayment requirement. The repayment of grant money under this section 18.19must not exceed an amount equal to the total savings achieved through the implementation 18.20of the project.18.21    Subd. 2.Bonus points.In addition to the points awarded to competitive grant 18.22applications under section 465.7906, the council shall award additional points to any 18.23applicant that projects a potential cost savings through the implementation of its project 18.24and offers to repay part or all of the grant under the formula in subdivision 1.18.25    Subd. 3.Use of repayment revenue.All grant money repaid to the council under 18.26this section is appropriated to the council for additional grants authorized by section 18.27465.7905.18.28    Sec. 9. [465.7908] RECEIPTS; APPROPRIATION.18.29(a) The council may charge a fee for the use of services provided by the council's 18.30staff. The receipts from fees charged under this section are deposited in a special revenue 18.31account and appropriated to the council for services provided under sections 465.7901 to 18.32465.7908.19.1(b) The council may accept gifts and grants. Money received under this paragraph 19.2is deposited in a special revenue account and appropriated to the council for services 19.3provided under sections 465.7901 to 465.7908.19.4    Sec. 10. [465.7909] ANNUAL COUNCIL REPORT ON INNOVATION AND 19.5GUARANTEEING INCREASED VALUE TO THE TAXPAYER.19.6    Subdivision 1.Report. The council shall report by January 15 each year to the 19.7governor and appropriate committees of the house of representatives and senate on its 19.8activities. The report shall include the amount of the council's net spending, the amount of 19.9savings and the increased outcomes to the taxpayer that was identified by the council, and 19.10the actual documented savings to state and local governments. Entities receiving grants 19.11or waivers from the council must document and verify savings to the taxpayer from the 19.12previous year's budgets.19.13    Subd. 2.Savings and increased value.The council must make every effort to 19.14obtain $3 in savings and show increased value to the taxpayer for each net state dollar 19.15spent by the council.19.16    Subd. 3.Innovative practices.The council shall promote and drive innovative 19.17practices and must make annual recommendations to the legislature. One or all of these 19.18recommendations may be in partnership with an individual, foundations, nonprofits, or 19.19businesses. The council may make endorsements of proposals of individuals, foundations, 19.20nonprofits, or businesses when making recommendations. The council must make annual 19.21recommendations to:19.22(1) recommend at least $20 in savings and show increased outcomes to the taxpayer 19.23for each net state dollar spent by the council. These savings may be spread out over 19.24various budget items;19.25(2) recommend policy changes that will quantifiably improve desired outcome 19.26attainment to the taxpayer as compared to dollars spent. This shall not be limited to 19.27efficiency but may also include developing new approaches to achieve desired outcomes;19.28(3) highlight existing innovative practices or partnerships in the state; and 19.29(4) recommend innovative models, which may include state and local government 19.30structural redesign, from across the country to the legislature; highlight innovative 19.31practices from past or contemporary reports; recommend evidence-based service delivery 19.32methods for this state; or recommend theory-based working models of approaches to 19.33policy.19.34    Sec. 11. [465.7910] SUNSET.20.1Sections 465.7901 to 465.7909 expire June 30, 2018.20.2    Sec. 12. APPOINTMENTS; FIRST MEETING.20.3The appointing authorities under section 3 must complete their initial appointments 20.4to the Minnovation Council no later than August 1, 2010. The state auditor must convene 20.5the first meeting of the council by September 1, 2010.20.6    Sec. 13.  REPEALER.20.7Minnesota Statutes 2008, section 6.80, is repealed.20.8    Sec. 14. EFFECTIVE DATE.20.9Sections 1 to 13 are effective July 1, 2010.20.10ARTICLE 420.11TASK FORCE FOR POLICY INNOVATION20.12    Section 1. TASK FORCE FOR POLICY INNOVATION AND RESEARCH.20.13    Subdivision 1.Membership.The Task Force for Policy Innovation and Research 20.14includes the following 15 members:20.15(1) four members of the senate appointed by the Subcommittee on Committees of 20.16the Committee on Rules and Administration, including two members of the minority;20.17(2) two members of the house of representatives appointed by the speaker of the 20.18house;20.19(3) two members of the house of representatives appointed by the minority leader 20.20of the house of representatives;20.21(4) one member appointed by and serving at the pleasure of each of the following:20.22(i) the Wilder Foundation;20.23(ii) the Blandin Foundation;20.24(iii) the Minneapolis Foundation;20.25(iv) the McKnight Foundation; and20.26(v) the Bush Foundation; 20.27(5) the director of the Center for the Study of Politics and Governance at the 20.28Humphrey Institute at the University of Minnesota; and20.29(6) one member from the office of the president of the University of Minnesota, 20.30selected by the president.21.1The appointing authorities under this subdivision shall complete their appointments no 21.2later than July 1, 2010.21.3 The responsible appointing authority shall fill a vacancy on the task force within 30 21.4days after the vacancy is created.21.5The director of the Center for the Study of Politics and Governance at the Humphrey 21.6Institute shall convene the first meeting of the task force no later than September 1, 2010. 21.7The task force shall select a chair from its membership at the first meeting. The members 21.8shall serve without compensation from the task force but legislative members may be 21.9reimbursed for their reasonable expenses as members of the legislature. The director of 21.10the Center for the Study of Politics and Governance at the Humphrey Institute shall assist 21.11the task force in administrative matters. 21.12    Subd. 2.Report.The task force shall consider methods and procedures to best 21.13provide the legislature with high quality, rigorous public policy research regarding issues 21.14and topics of concern to the legislature. By February 1, 2011, the task force shall report to 21.15the chairs and ranking minority members of the legislative committees and divisions with 21.16jurisdiction over state government policy and finance regarding:21.17(1) a process for the selection of topics for public policy research of interest to 21.18the legislature;21.19(2) recommended methods and procedures for conducting and reporting the 21.20research; and21.21(3) a method to provide funding for the policy innovation and research initiative 21.22proposed by the task force.21.23The report shall also include any draft legislation necessary to implement the 21.24recommendations. 21.25    Subd. 3.Expiration.The task force expires after the submission of the report 21.26required under subdivision 2.21.27EFFECTIVE DATE.This section is effective the day following final enactment.