1.1A bill for an act1.2relating to government operations; setting date for the legislature to meet in 1.3even years; providing for monitoring management of permanent school fund 1.4lands; increasing the number of members on the Legislative Commission on 1.5Pensions and Retirement; defining certain powers of the Council on Black 1.6Minnesotans; allowing the legislative auditor to recover costs for certain financial 1.7audits; providing mapped data on expenditures; increasing agency deposit 1.8receipts; setting conditions for recipients of state grants and appropriations; 1.9establishing conditions for disposal of state-owned buildings; establishing 1.10requirements for financing agreements for state projects; requiring conditions 1.11for fleet management activities; modifying veteran-owned business preference; 1.12adding duties of the chief information officer; allowing expenditures associated 1.13with the combined charities campaign; modifying provisions for groundwater 1.14quality monitoring and resource recovery; clarifying jurisdiction of the Office 1.15of Enterprise Technology; modifying secretary of state records provisions; 1.16enhancing the state's tax collection process; creating Commission on Service 1.17Innovation; modifying provisions for campaign finance; requiring a strategic 1.18plan to improve state and local government delivery of services; establishing 1.19the Minnesota Innovation and Research Council; requiring certain studies; 1.20appropriating money;amending Minnesota Statutes 2008, sections 3.303, 1.21by adding a subdivision; 3.85, subdivision 3; 3.9225, subdivision 5; 3.971, 1.22by adding a subdivision; 10A.01, subdivision 18, by adding subdivisions; 1.2310A.12, by adding a subdivision; 10A.20, subdivisions 2, 4, 12; 10A.27, by 1.24adding subdivisions; 16A.125, subdivision 5; 16A.275; 16B.24, subdivision 1.253; 16B.322, subdivisions 4, 5; 16C.055, subdivision 2; 16E.04, subdivision 2; 1.2616E.05, by adding a subdivision; 43A.50, subdivision 2; 79.34, subdivision 1; 1.27103F.755; 103H.175, as amended; 115A.15, subdivisions 4, 9, 10; 127A.30, 1.28subdivision 2; 211B.01, subdivision 3; 211B.04; 211B.15, subdivisions 2, 3; 1.29216B.16, by adding a subdivision; 307.08, subdivision 5; 318.02, subdivision 1.301; 336.9-531; 336A.08, subdivisions 1, 4; 336A.14; 557.01; Minnesota Statutes 1.312009 Supplement, sections 16B.322, subdivisions 4a, 4b, 4c; 16C.16, subdivision 1.326a, as amended if enacted; 16E.02, subdivision 1; 365.46, subdivision 2; 379.05; 1.33Laws 2010, chapter 189, section 35, subdivision 1; proposing coding for new 1.34law in Minnesota Statutes, chapters 3; 5; 10; 10A; 16A; 16B; 465; proposing 1.35coding for new law as Minnesota Statutes, chapter 116W; repealing Minnesota 1.36Statutes 2008, sections 6.80; 211B.15, subdivision 12; Minnesota Statutes 2009 1.37Supplement, section 645.44, subdivision 19; Laws 2005, chapter 162, section 1.3834, subdivision 2, as amended.2.1BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.2ARTICLE 12.3STATE GOVERNMENT2.4    Section 1. [3.051] EVEN-YEAR SESSIONS.2.5The legislature may not meet in regular session in an even-numbered year before the 2.6date set under section 202A.14 for the conduct of precinct caucuses.2.7    Sec. 2. Minnesota Statutes 2008, section 3.303, is amended by adding a subdivision to 2.8read:2.9    Subd. 11.Permanent school fund land management analyst.The commission 2.10shall undertake activities that are necessary to advise the legislature and to monitor the 2.11executive branch on issues related to the management of permanent school fund lands. 2.12The commission may hire a lead analyst and other staff as necessary for this purpose. The 2.13commission shall:2.14(1) monitor management of permanent school fund lands;2.15(2) analyze the benefits derived from the fund;2.16(3) actively participate in the work of the Permanent School Fund Advisory 2.17Committee under section 127A.30;2.18(4) provide oversight to ensure that the state fulfills its fiduciary responsibilities to 2.19the permanent school fund as specified by the Minnesota Constitution and Minnesota 2.20Statutes; and2.21(5) make effective recommendations to the Permanent School Fund Advisory 2.22Committee and the finance divisions and committees of the house of representatives 2.23and the senate.2.24The purpose of this function is to maximize the long-term economic returns to the 2.25school trust lands consistent with the goals of section 127A.31.2.26EFFECTIVE DATE.This section is effective July 1, 2011.2.27    Sec. 3. Minnesota Statutes 2008, section 3.85, subdivision 3, is amended to read:2.28    Subd. 3. Membership. The commission consists of five seven members of the 2.29senate appointed by the Subcommittee on Committees of the Committee on Rules and 2.30Administration and five seven members of the house of representatives appointed by 2.31the speaker. No more than five members from each chamber may be from the majority 2.32caucus in that chamber. Members shall be appointed at the commencement of each regular 3.1session of the legislature for a two-year term beginning January 16 of the first year of the 3.2regular session. Members continue to serve until their successors are appointed. Vacancies 3.3that occur while the legislature is in session shall be filled like regular appointments. If the 3.4legislature is not in session, senate vacancies shall be filled by the last Subcommittee on 3.5Committees of the senate Committee on Rules and Administration or other appointing 3.6authority designated by the senate rules, and house of representatives vacancies shall be 3.7filled by the last speaker of the house, or if the speaker is not available, by the last chair of 3.8the house of representatives Rules Committee.3.9    Sec. 4. Minnesota Statutes 2008, section 3.9225, subdivision 5, is amended to read:3.10    Subd. 5. Powers.(a) The council may contract in its own name, but no money shall 3.11be accepted or received as a loan nor indebtedness incurred except as otherwise provided 3.12by law. Contracts shall be approved by a majority of the members of the council and 3.13executed by the chair and the executive director. The council may apply for, receive, and 3.14expend in its own name grants and gifts of money consistent with the power and duties 3.15specified in subdivisions 1 to 7.3.16 (b) The council may solicit and accept payments for advertising, use of exhibition 3.17space, or commemorative videos or other items in connection with publications, events, 3.18media productions, and informational programs that are sponsored by the council. These 3.19revenues must be deposited in an account in the special revenue fund and are appropriated 3.20to the council to defray costs of publications, events, media productions, or informational 3.21programs consistent with the powers and duties specified in subdivisions 1 to 7. The 3.22council may not publish advertising or provide exhibition space for any elected official 3.23or candidate for elective office. The council must report by January 15 each year to the 3.24chairs and ranking minority members of the house of representatives and senate funding 3.25divisions with jurisdiction over the council on the amount and source of each payment 3.26received under this paragraph in the prior fiscal year.3.27(c) The council shall appoint an executive director who is experienced in 3.28administrative activities and familiar with the problems and needs of Black people. The 3.29council may delegate to the executive director powers and duties under subdivisions 1 to 7 3.30which do not require council approval. The executive director serves in the unclassified 3.31service and may be removed at any time by the council. The executive director shall 3.32recommend to the council, and the council may appoint the appropriate staff necessary to 3.33carry out its duties. Staff members serve in the unclassified service. The commissioner of 3.34administration shall provide the council with necessary administrative services.4.1    Sec. 5. [3.9715] PAYMENT FROM HERITAGE FUNDS FOR AUDIT COSTS.4.2The outdoor heritage fund, the clean water fund, the parks and trails fund, and the 4.3arts and cultural heritage fund, established in the Minnesota Constitution, article XI, 4.4section 15, must each pay the legislative auditor for costs incurred by the legislative 4.5auditor to examine financial activities related to each fund. The legislative auditor shall 4.6provide cost data to the commissioner of management and budget to determine the amount 4.7of the required payments. The amount required to make these payments is appropriated 4.8from each fund for payments to the legislative auditor under this section. Amounts 4.9received by the legislative auditor under this section are appropriated to the legislative 4.10auditor for purposes of examining financial activities related to each fund. The legislative 4.11auditor shall report by January 15 each year to the chairs and ranking minority members of 4.12the house of representatives and senate funding divisions with jurisdiction over the Office 4.13of the Legislative Auditor and the funds established in the Minnesota Constitution, article 4.14XI, section 15, on past and projected future expenditure of funds under this section.4.15    Sec. 6. [5.025] ELECTION DAY VOLUNTEERS.4.16The secretary of state may use unpaid secretary of state trained volunteers to assist 4.17the Office of the Secretary of State in providing customer service information on election 4.18days.4.19    Sec. 7. [10.61] TWO-SIDED PRINTING.4.20A printer operated by an entity in the state executive, legislative, or judicial branch 4.21must be configured so that the default print option is for two-sided printing if it is feasible 4.22to set two-sided printing as the default.4.23    Sec. 8. Minnesota Statutes 2008, section 10A.01, subdivision 18, is amended to read:4.24    Subd. 18. Independent expenditure. "Independent expenditure" means an 4.25expenditure expressly advocating the election or defeat of a clearly identified candidate, 4.26if the expenditure is made without the express or implied consent, authorization, or 4.27cooperation of, and not in concert with or at the request or suggestion of, any candidate or 4.28any candidate's principal campaign committee or agent. An independent expenditure is 4.29not a contribution to that candidate. An expenditure by a political party or political party 4.30unit in a race where the political party has a candidate on the ballot is not an independent 4.31expenditure An independent expenditure does not include the act of announcing a formal 4.32public endorsement of a candidate for public office, unless the act is simultaneously 5.1accompanied by an expenditure that would otherwise qualify as an independent 5.2expenditure under this subdivision.5.3EFFECTIVE DATE.This section is effective the day following final enactment.5.4    Sec. 9. Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision 5.5to read:5.6    Subd. 37.Independent expenditure political committee."Independent 5.7expenditure political committee" means a political committee that makes only independent 5.8expenditures and disbursements permitted under section 10A.121, subdivision 1.5.9    Sec. 10. Minnesota Statutes 2008, section 10A.01, is amended by adding a subdivision 5.10to read:5.11    Subd. 38.Independent expenditure political fund."Independent expenditure 5.12political fund" means a political fund that makes only independent expenditures and 5.13disbursements permitted under section 10A.121, subdivision 1.5.14    Sec. 11. Minnesota Statutes 2008, section 10A.12, is amended by adding a subdivision 5.15to read:5.16    Subd. 1a.When required for independent expenditures.An association other 5.17than a political committee that makes only independent expenditures and disbursements 5.18permitted under section 10A.121, subdivision 1, must do so by forming and registering 5.19an independent expenditure political fund if the expenditure is in excess of $100 or by 5.20contributing to an existing independent expenditure political committee or political fund.5.21    Sec. 12. [10A.121] INDEPENDENT EXPENDITURE POLITICAL 5.22COMMITTEES AND INDEPENDENT EXPENDITURE POLITICAL FUNDS.5.23    Subdivision 1.Permitted disbursements.An independent expenditure political 5.24committee or an independent expenditure political fund, in addition to making independent 5.25expenditures, may: 5.26(1) pay costs associated with its fund-raising and general operations;5.27(2) pay for communications that do not constitute contributions or approved 5.28expenditures; and5.29(3) make contributions to other independent expenditure political committees or 5.30independent expenditure political funds.6.1    Subd. 2.Penalty.An independent expenditure political committee or independent 6.2expenditure political fund is subject to a civil penalty of up to four times the amount of the 6.3contribution or approved expenditure if it does the following:6.4(1) makes a contribution to a candidate, party unit, political committee, or political 6.5fund other than an independent expenditure political committee or an independent 6.6expenditure political fund; or6.7(2) makes an approved expenditure.6.8This penalty supersedes any penalty otherwise provided in statute.6.9    Sec. 13. Minnesota Statutes 2008, section 10A.20, subdivision 2, is amended to read:6.10    Subd. 2. Time for filing. (a) The reports must be filed with the board on or before 6.11January 31 of each year and additional reports must be filed as required and in accordance 6.12with paragraphs (b) and (c).6.13(b) In each year in which the name of the candidate is on the ballot, the report of 6.14the principal campaign committee must be filed 15 days before a primary and ten days 6.15before a general election, seven days before a special primary and a special election, 6.16and ten days after a special election cycle.6.17(c) In each general election year, a political committee, political fund, or party 6.18unit must file reports 28 and 15 days before a primary and ten 42 and 15 days before a 6.19general election. Beginning in 2012, reports required under this paragraph must also be 6.20filed 56 days before a primary.6.21    Sec. 14. Minnesota Statutes 2008, section 10A.20, subdivision 4, is amended to read:6.22    Subd. 4. Period of report. A report must cover the period from the last day covered 6.23by the previous report January 1 of the reporting year to seven days before the filing date, 6.24except that the report due on January 31 must cover the period from the last day covered 6.25by the previous report to December 31.6.26    Sec. 15. Minnesota Statutes 2008, section 10A.20, subdivision 12, is amended to read:6.27    Subd. 12. Failure to file; penalty. The board must send a notice by certified mail 6.28to any individual who fails to file a statement required by this section. If an individual 6.29fails to file a statement due January 31 within ten business days after the notice was sent, 6.30the board may impose a late filing fee of $5 $25 per day, not to exceed $100 $1,000, 6.31commencing with the 11th day after the notice was sent.6.32If an individual fails to file a statement due before a primary or election within three 6.33days after the date due, regardless of whether the individual has received any notice, the 7.1board may impose a late filing fee of $50 per day, not to exceed $500 $1,000, commencing 7.2on the fourth day after the date the statement was due.7.3The board must send an additional notice by certified mail to an individual who fails 7.4to file a statement within 14 days after the first notice was sent by the board that the 7.5individual may be subject to a civil penalty for failure to file a statement. An individual 7.6who fails to file the statement within seven days after the second notice was sent by the 7.7board is subject to a civil penalty imposed by the board of up to $1,000.7.8EFFECTIVE DATE.This section is effective June 1, 2010, and applies to 7.9statements required to be filed on or after that date.7.10    Sec. 16. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 7.11to read:7.12    Subd. 14.Contributions of business revenue.An association may, if not 7.13prohibited by other law, contribute revenue from the operation of a business to an 7.14independent expenditure political committee or an independent expenditure political fund 7.15without complying with section 10A.27, subdivision 13.7.16    Sec. 17. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 7.17to read:7.18    Subd. 15.Contributions of dues or contribution revenue.An association may, 7.19if not prohibited by other law, contribute revenue from membership dues or fees, or 7.20from contributions received by the association to an independent expenditure political 7.21committee or an independent expenditure political fund without complying with section 7.2210A.27, subdivision 13. Before the day when the recipient committee or fund's next report 7.23must be filed with the board under section 10A.20, subdivision 2 or 5, an association 7.24that has contributed $2,000 or more in aggregate to independent expenditure political 7.25committees or funds during the calendar year must provide in writing to the recipient's 7.26treasurer a statement that includes the name and address of each association that paid the 7.27association dues or fees, or made contributions to the association that, in total, aggregate 7.28$1,000 or more between January 1 of the calendar year and the date of the contribution. 7.29The statement must be certified as true and correct by an officer of the contributing 7.30association.7.31    Sec. 18. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 7.32to read:8.1    Subd. 16.Treasurer to submit disclosure statements.The treasurer of a political 8.2committee or political fund receiving a statement required under section 10A.27, 8.3subdivision 15, must file a copy of the statement before the deadline for the committee 8.4or fund's next report filed with the board under section 10A.20, subdivision 2 or 5, after 8.5receiving the statement.8.6    Sec. 19. Minnesota Statutes 2008, section 10A.27, is amended by adding a subdivision 8.7to read:8.8    Subd. 17.Penalty.(a) An association that makes a contribution under section 8.910A.27, subdivision 15, and fails to provide the required statement within the time 8.10specified is subject to a civil penalty of up to four times the amount of the contribution, 8.11but not to exceed $25,000, except when the violation was intentional.8.12(b) An independent expenditure political committee or an independent expenditure 8.13political fund that files a report without including the statement required under section 8.1410A.27, subdivision 15, is subject to a civil penalty of up to four times the amount of the 8.15contribution for which disclosure was not filed, but not to exceed $25,000, except when 8.16the violation was intentional.8.17(c) The penalties provided under this subdivision supersede any penalty otherwise 8.18provided in statute.8.19    Sec. 20. [16A.0561] MAPPED DATA ON EXPENDITURES.8.20(a) Data on expenditure of money from the funds as specified under sections 8.213.303, subdivision 10, and 116P.08, may, if practicable, be made available on the Web 8.22in a manner that allows the public to obtain information about a project receiving an 8.23appropriation by clicking on a map. To the extent feasible, the map should include or link 8.24to information about each project, including, but not limited to, the location, the name 8.25of the entity receiving the appropriation, the source of the appropriation, the amount of 8.26money received, and a general statement of the purpose of the appropriation.8.27(b) If requested, the Legislative Coordinating Commission may, to the extent 8.28practicable, provide relevant executive branch agencies with public geospatial data that it 8.29receives for its Web site required under section 3.303, subdivision 10. The commissioner 8.30may make this information available to the public in a similar manner as information 8.31provided under paragraph (a).8.32(c) In creating plans for public expenditures from all geographically locatable or 8.33project based appropriations, prospective budget and project planning should consider 8.34geographic and data reporting that would facilitate the goals of this section.9.1    Sec. 21. Minnesota Statutes 2008, section 16A.125, subdivision 5, is amended to read:9.2    Subd. 5. Forest trust lands. (a) The term "state forest trust fund lands" as used 9.3in this subdivision, means public land in trust under the Constitution set apart as "forest 9.4lands under the authority of the commissioner" of natural resources as defined by section 9.589.001, subdivision 13
         .9.6(b) The commissioner of management and budget shall credit the revenue from the 9.7forest trust fund lands to the forest suspense account. The account must specify the trust 9.8funds interested in the lands and the respective receipts of the lands.9.9(c) After a fiscal year, the commissioner of management and budget shall certify the 9.10total costs incurred for forestry during that year under appropriations for the protection, 9.11improvement, administration, and management of state forest trust fund lands and 9.12construction and improvement of forest roads to enhance the forest value of the lands. 9.13The certificate must specify the trust funds interested in the lands. The commissioner of 9.14natural resources shall supply the commissioner of management and budget with the 9.15information needed for the certificate.9.16(d) After a fiscal year, the commissioner shall distribute the receipts credited to the 9.17suspense account during that fiscal year as follows:9.18(1) the amount of the certified costs incurred by the state for forest management, 9.19forest improvement, and road improvement during the fiscal year shall be transferred to 9.20the forest management investment account established under section 
         89.039, including 9.21the costs associated with the Legislative Coordinating Commission's permanent school 9.22fund land management activities;9.23(2) the balance of the certified costs incurred by the state during the fiscal year 9.24shall be transferred to the general fund; and9.25(3) the balance of the receipts shall then be returned prorated to the trust funds in 9.26proportion to their respective interests in the lands which produced the receipts.9.27EFFECTIVE DATE.This section is effective July 1, 2011.9.28    Sec. 22. Minnesota Statutes 2008, section 16A.275, is amended to read:9.2916A.275 AGENCY RECEIPTS; DEPOSIT, REPORT, CREDIT.9.30    Subdivision 1. If $250, daily. Deposit receipts. Except as otherwise provided by 9.31law, an agency shall deposit receipts totaling $250 $1,000 or more in the state treasury 9.32daily. The depositing agency shall send a report to the commissioner on the disposition of 9.33receipts since the last report. The commissioner shall credit the deposits received during a 9.34month to the proper funds not later than the first day of the next month.10.1Notwithstanding the general rule stated above, the commissioner of revenue is not 10.2required to make daily deposits if (1) the volume of tax receipts cannot be processed daily 10.3with available resources, or (2) receipts cannot be immediately identified for posting to 10.4accounts.10.5    Subd. 2. Exception. The commissioner may authorize an agency to deposit 10.6receipts totaling $250 $1,000 or more less frequently than daily for those locations where 10.7the agency furnishes documentation to the commissioner that the cost of making daily 10.8deposits exceeds the lost interest earnings and the risk of loss or theft of the receipts.10.9    Sec. 23. [16A.371] RECIPIENTS OF STATE GRANTS AND  APPROPRIATIONS.10.10    (a) This section applies to a nonprofit organization that receives a direct appropriation 10.11of state funds or that receives  a grant of state funds, if during the period covered by the 10.12appropriation or grant an officer or employee of the organization will receive a salary from 10.13the nonprofit organization or a related organization that exceeds the salary of the governor. 10.14As a condition of receiving the direct appropriation or grant, a nonprofit organization 10.15covered by this  section must agree that the organization will submit to the  attorney 10.16general, during each year that the organization  receives a direct appropriation or grant of 10.17state funds, a list of the total compensation of the three highest paid directors, officers, 10.18or employees of the organization. The attorney general must make filings under this 10.19paragraph public in the same manner as annual reports filed under section 309.53.10.20    (b) This section also applies to a health maintenance  organization, as defined in 10.21section 62D.02, subdivision 4, that  has a contract to provide services to the state or to state 10.22employees, if an officer or employee of the organization  receives a salary that exceeds 10.23the salary of the governor.10.24    (c) For purposes of this section:10.25    (1) "nonprofit organization" includes a corporation,  partnership, limited partnership, 10.26limited liability company,  joint venture, cooperative, association, or trust, wherever 10.27incorporated, organized, or registered, if the organization is  organized on a nonprofit basis;10.28    (2) "related organization" has the meaning defined in  section 317A.011, subdivision 10.2918; and 10.30    (3) "total compensation" means salaries, fees, bonuses,  fringe benefits, severance 10.31payments, and deferred compensation.10.32    Sec. 24. Minnesota Statutes 2008, section 16B.24, subdivision 3, is amended to read:10.33    Subd. 3. Disposal of old buildings.(a) Upon request from the head of an agency 10.34with control of a state-owned building with an estimated market value of less than 11.1$50,000, as determined by the commissioner, the commissioner may sell, demolish, or 11.2otherwise dispose of the building if the commissioner determines that the building is no 11.3longer used or is a fire or safety hazard.11.4The commissioner, (b) Upon request of the head of an agency which has with control 11.5of a state-owned building which is no longer used or which is a fire or safety hazard, shall,11.6with an estimated market value of $50,000 or more, as determined by the commissioner, 11.7the commissioner may sell, demolish, or otherwise dispose of the building after 11.8determining that the building is no longer used or is a fire or safety hazard and obtaining 11.9approval of the chairs of the senate Finance Committee and house of representatives Ways 11.10and Means Committee, sell, wreck, or otherwise dispose of the building. 11.11(c) In the event a sale is made under this subdivision, the proceeds shall be deposited 11.12in the proper account or in the general fund provided by law. If there is no requirement in 11.13law specifying how proceeds must be deposited other than section 16A.72, the proceeds 11.14must be deposited in the account from which the appropriation to acquire or construct the 11.15building was made. If the account from which the appropriation was made cannot be 11.16identified or has been terminated, the proceeds must be deposited in the general fund.11.17    Sec. 25. Minnesota Statutes 2008, section 16B.322, subdivision 4, is amended to read:11.18    Subd. 4. Financing agreement. The commissioner shall solicit proposals from 11.19private financial institutions on an individual project or line of credit basis and may enter 11.20into a financing agreement with one or more financial institutions. If a financing agreement 11.21is for an individual project, the term of the financing agreement shall not exceed 15 years 11.22from the date of final completion of the energy improvement project. The and a financing 11.23agreement is assignable to the state agency operating or managing the state building or 11.24facility improved by the energy improvement project. The term of a financing agreement 11.25on an individual project basis must be less than the average expected useful life of the 11.26energy saving measures implemented under the project. The proceeds from the financing 11.27agreement are appropriated to the commissioner and may be used for the purposes of 11.28this section and are available until spent.11.29    Sec. 26. Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4a, 11.30is amended to read:11.31    Subd. 4a. Financing agreement. The commissioner of administration may, in 11.32connection with a financing agreement, covenant in a master lease-purchase agreement11.33that the state will abide by the terms and provisions that are customary in net lease or 11.34lease-purchase transactions including, but not limited to, covenants providing that the state:12.1(1) will maintain insurance as required under the terms of the lease agreement;12.2(2) is responsible to the lessor for any public liability or property damage claims or 12.3costs related to the selection, use, or maintenance of the leased equipment, to the extent of 12.4insurance or self-insurance maintained by the lessee, and for costs and expenses incurred 12.5by the lessor as a result of any default by the lessee;12.6(3) authorizes the lessor to exercise the rights of a secured party with respect to the 12.7equipment subject to the lease in the event of default by the lessee and, in addition, for 12.8the present recovery of lease rentals due during the current term of the lease as liquidated 12.9damages.12.10    Sec. 27. Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4b, 12.11is amended to read:12.12    Subd. 4b. Master lease-purchase agreements not debt. A tax-exempt 12.13lease-purchase agreement related to a financing agreement under this section does not 12.14constitute or create a general or moral obligation or indebtedness of the state in excess 12.15of the money from time to time appropriated or otherwise available for the payment of 12.16rent coming due under the lease, and the state has no continuing obligation to appropriate 12.17money for the payment of rent or other obligations under the lease agreement. Rent due 12.18under a master lease-purchase financing agreement under this section during a current 12.19lease term for which money has been appropriated is a current expense of the state. 12.20    Sec. 28. Minnesota Statutes 2009 Supplement, section 16B.322, subdivision 4c, 12.21is amended to read:12.22    Subd. 4c. Budget offset.The commissioner shall require a state agency that uses 12.23the state energy improvement program to certify that the agency will budget, allocate, and 12.24commit agency funds sufficient to make rent payments under a financing agreement until 12.25all rent obligations are paid in full. In the event a participating agency fails to make a 12.26rent payment, the commissioner of management and budget shall reduce the operating 12.27budgets budget of the state agencies that use the master lease-purchase program under a 12.28financial agreement agency. The amount of the reduction is the amount sufficient to 12.29make the actual master lease payments.12.30    Sec. 29. Minnesota Statutes 2008, section 16B.322, subdivision 5, is amended to read:12.31    Subd. 5. Qualifying energy improvement projects. The commissioner may 12.32approve an energy improvement project and enter into for a financing agreement if the 12.33commissioner determines that:13.1    (1) the project and project financing agreement have been approved by the governing 13.2body or head of the state agency that operates or manages the state building or facility to 13.3be improved;13.4    (2) the project is technically and economically feasible;13.5    (3) the state agency that operates or manages the state building or facility has made 13.6adequate provision for the operation and maintenance of the project;13.7    (4) if an energy efficiency improvement, the project is calculated to result in a 13.8positive cash flow in each year the financing agreement is in effect;13.9    (5) the project proposer has fully explored the use of conservation investment plan 13.10opportunities under section 
         216B.241 with the utilities providing gas and electric service 13.11to the energy improvement project;13.12    (6) if a renewable energy improvement, the project is calculated to reduce use of 13.13fossil-fuel energy; and13.14    (7) if a geothermal energy improvement, the project is calculated to produce savings 13.15in terms of nongeothermal energy and costs.13.16For the purpose of clause (6), "renewable energy" is energy produced by an eligible energy 13.17technology as defined in section 
         216B.1691, subdivision 1, paragraph (a), clause (1).13.18    Sec. 30. [16B.535] FLEET MANAGEMENT; CONSOLIDATION.13.19(a) The Department of Administration shall ensure optimum efficiency and economy 13.20in the fleet management activities of all state agencies. The department must:13.21(1) maintain a current fleet management inventory and maintenance cost accounting 13.22system that includes all state-owned or leased motor vehicles;13.23(2) develop uniform state policies and guidelines for vehicle acquisition, 13.24replacement, use, fuel, maintenance, and recording of operational and other costs; and13.25(3) study the cost-effectiveness of consolidating or privatizing the state vehicle fleet 13.26or sections of the state vehicle fleet, including documenting the current status of fleet 13.27consolidation or privatization and assessing the cost-effectiveness of further consolidation 13.28or privatization of the state vehicle fleet.13.29(b) When requested by the governor or the legislature, the department must submit 13.30information detailing the costs associated with fleet operations based upon a statewide 13.31uniform cost accounting system.13.32(c) State agencies authorized by the Department of Administration may operate 13.33a vehicle fleet management program. Each such agency shall assign a fleet manager 13.34who shall operate the agency's fleet program in accordance with policies and guidelines 13.35established by the Department of Administration. 14.1(d) Each fleet manager must review the use of state-owned or leased vehicles within 14.2their agency at least annually to determine whether vehicle utilization meets best practices 14.3criteria as determined by the Department of Administration.14.4    Sec. 31. Minnesota Statutes 2008, section 16C.055, subdivision 2, is amended to read:14.5    Subd. 2. Restriction. After July 1, 2002, an agency may not enter into a contract or 14.6otherwise agree with a nongovernmental entity to receive total nonmonetary consideration 14.7valued at more than $100,000 annually in exchange for the agency providing nonmonetary 14.8consideration, unless such an agreement is specifically authorized by law. This subdivision 14.9does not apply to the State Lottery.14.10    Sec. 32. Minnesota Statutes 2009 Supplement, section 16C.16, subdivision 6a, as 14.11amended by 2010 S.F. No. 2737, article 2, section 3, if enacted, is amended to read:14.12    Subd. 6a. Veteran-owned small businesses. (a) The commissioner shall award 14.13up to a six percent preference, but no less than the percentage awarded to any other 14.14group under this section except when mandated by the federal government as a condition 14.15of receiving federal funds, in the amount bid on state procurement to certified small 14.16businesses that are majority-owned and operated by:14.17    (1) recently separated veterans who have served in active military service, at any 14.18time on or after September 11, 2001, and who have been discharged under honorable 14.19conditions from active service, as indicated by the person's United States Department of 14.20Defense form DD-214 or by the commissioner of veterans affairs; 14.21    (2) veterans with service-connected disabilities, as determined at any time by the 14.22United States Department of Veterans Affairs; or 14.23    (3) any other veteran-owned small businesses certified under section 
         16C.19, 14.24paragraph (d).14.25    (b) The purpose of this designation is to facilitate the transition of veterans from 14.26military to civilian life, and to help compensate veterans for their sacrifices, including but 14.27not limited to their sacrifice of health and time, to the state and nation during their military 14.28service, as well as to enhance economic development within Minnesota.14.29    Sec. 33. Minnesota Statutes 2009 Supplement, section 16E.02, subdivision 1, is 14.30amended to read:14.31    Subdivision 1. Office management and structure. (a) The chief information officer 14.32is appointed by the governor. The chief information officer serves in the unclassified 14.33service at the pleasure of the governor. The chief information officer must have experience 15.1leading enterprise-level information technology organizations. The chief information 15.2officer is the state's chief information officer and information and telecommunications 15.3technology advisor to the governor.15.4(b) The chief information officer may appoint other employees of the office. 15.5The staff of the office must include individuals knowledgeable in information and 15.6telecommunications technology systems and services and individuals with specialized 15.7training in information security and accessibility.15.8(c) The chief information officer may appoint a Webmaster responsible for the 15.9supervision and development of state Web sites under the control of the office. The 15.10Webmaster, if appointed, shall ensure that these Web sites are maintained in an easily 15.11accessible format that is consistent throughout state government and are consistent 15.12with the accessibility standards developed under section 16E.03, subdivision 9. The 15.13Webmaster, if appointed, shall provide assistance and guidance consistent with the 15.14requirements of this paragraph to other state agencies for the maintenance of other Web 15.15sites not under the direct control of the office.15.16    Sec. 34. Minnesota Statutes 2008, section 16E.04, subdivision 2, is amended to read:15.17    Subd. 2. Responsibilities. (a) In addition to other activities prescribed by law, the 15.18office shall carry out the duties set out in this subdivision.15.19    (b) The office shall develop and establish a state information architecture to ensure:15.20(1)  that state agency development and purchase of information and communications 15.21systems, equipment, and services is designed to ensure that individual agency information 15.22systems complement and do not needlessly duplicate or conflict with the systems of other 15.23agencies; and15.24(2) enhanced public access to data can be provided consistent with standards 15.25developed under section 16E.05, subdivision 4. 15.26When state agencies have need for the same or similar public data, the chief information 15.27officer, in coordination with the affected agencies, shall manage the most efficient and 15.28cost-effective method of producing and storing data for or sharing data between those 15.29agencies. The development of this information architecture must include the establishment 15.30of standards and guidelines to be followed by state agencies. The office shall ensure 15.31compliance with the architecture.15.32    (c) The office shall assist state agencies in the planning and management of 15.33information systems so that an individual information system reflects and supports the 15.34state agency's mission and the state's requirements and functions. The office shall review 15.35and approve agency technology plans to ensure consistency with enterprise information 16.1and telecommunications technology strategy. By January 15 of each year, the chief 16.2information officer must report to the chairs and the ranking minority members of 16.3the legislative committees and divisions with jurisdiction over the office regarding the 16.4assistance provided under this paragraph. The report must include a listing of agencies 16.5that have developed or are developing plans under this paragraph.16.6    (d) The office shall review and approve agency requests for funding for the 16.7development or purchase of information systems equipment or software before the 16.8requests may be included in the governor's budget.16.9    (e) The office shall review major purchases of information systems equipment to:16.10    (1) ensure that the equipment follows the standards and guidelines of the state 16.11information architecture;16.12    (2) ensure the agency's proposed purchase reflects a cost-effective policy regarding 16.13volume purchasing; and16.14    (3) ensure that the equipment is consistent with other systems in other state agencies 16.15so that data can be shared among agencies, unless the office determines that the agency 16.16purchasing the equipment has special needs justifying the inconsistency.16.17    (f) The office shall review the operation of information systems by state agencies 16.18and ensure that these systems are operated efficiently and securely and continually meet 16.19the standards and guidelines established by the office. The standards and guidelines must 16.20emphasize uniformity that is cost-effective for the enterprise, that encourages information 16.21interchange, open systems environments, and portability of information whenever 16.22practicable and consistent with an agency's authority and chapter 13.16.23    (g) The office shall conduct a comprehensive review at least every three years of 16.24the information systems investments that have been made by state agencies and higher 16.25education institutions. The review must include recommendations on any information 16.26systems applications that could be provided in a more cost-beneficial manner by an outside 16.27source. The office must report the results of its review to the legislature and the governor.16.28    Sec. 35. Minnesota Statutes 2008, section 16E.05, is amended by adding a subdivision 16.29to read:16.30    Subd. 4.Standards for transparency.The chief information officer, in consultation 16.31with the Information Policy Analysis Division of the Department of Administration, 16.32shall develop standards to enhance public access to electronic data maintained by state 16.33government, consistent with the requirements of chapter 13. The standards must ensure 16.34that:16.35(1) the state information architecture facilitates public access to agency data;17.1(2) publicly available data is managed using an approved state metadata model; and17.2(3) all geospatial data conform to an approved state geocode model.17.3    Sec. 36. Minnesota Statutes 2008, section 43A.50, subdivision 2, is amended to read:17.4    Subd. 2.  Registration. (a) A federated funding organization shall apply to the 17.5commissioner by March 1 in order to be eligible to participate in the state employee 17.6combined charities campaign for that year. 17.7(b) A federated funding organization must apply in the form prescribed by the 17.8commissioner and shall provide the following: 17.9(1) assurance of tax exempt status for the federated funding organization and each of 17.10the charitable agencies identified by the federated funding organization as an affiliated 17.11agency; 17.12(2) assurance of proper registration with the attorney general of Minnesota to solicit 17.13contributions in the state of Minnesota for the federated funding organization and each of 17.14the charitable agencies identified by the federated funding organization as an affiliated 17.15agency. A copy of the registration letter in effect at the time of application for the state 17.16employee combined charities campaign must be available upon request; 17.17(3) an affidavit signed by a duly constituted officer of the federated funding 17.18organization attesting to the fact that the federated funding organization and its affiliated 17.19agencies are in compliance with each of the provisions of this section; 17.20(4) a list of the board of directors or local advisory board for the federated funding 17.21organization which identifies the members who live or work in Minnesota and contiguous 17.22counties; 17.23(5) a list of the name and business address of each affiliated agency the federated 17.24funding organization supports; 17.25(6) a list of any related organizations, as defined in section 
         317A.011, subdivision 18; 17.26(7) the total contributions received in the organization's accounting year last 17.27reported and, from those contributions, the amounts expended by the federated funding 17.28organization for management and general costs and for fund-raising costs and the amount 17.29distributed to the affiliated agencies, programs, and designated agencies it supports; and 17.30(8) a fee of $100, or ten percent of the funds raised from state employees in 17.31the previous campaign, whichever is less. The fee for an organization which did not 17.32participate in the previous year's state employee campaign is $100. These fees must 17.33be deposited into an account in the special revenue fund and are appropriated to the 17.34commissioner to be expended with the approval of the Combined Charities Board in 17.35section 43A.04 for costs associated with administering the annual campaign.18.1The commissioner may require submission of additional information needed to 18.2determine compliance with the provisions of this chapter. 18.3(c) The commissioner shall register or not register the application of an organization 18.4and shall notify the organization of the decision by May 1. An organization whose 18.5application is denied has ten calendar days after receiving notice of the denial to appeal 18.6the decision or file an amended application correcting the deficiency. The commissioner 18.7shall register or not register the organization within ten calendar days after receiving the 18.8appeal or amended application. If registration is denied a second time, the organization 18.9may appeal within five calendar days after receiving notice of the denial. A hearing 18.10shall be scheduled by the commissioner and shall be held within 15 calendar days after 18.11receiving notice of the appeal. The parties may mutually agree to a later date. The 18.12provisions of chapter 14 do not apply to the hearing. The hearing shall be conducted in 18.13a manner considered appropriate by the commissioner. The commissioner shall make a 18.14determination within five calendar days after the hearing has been completed. 18.15(d) Only organizations that are approved may participate in the state employee 18.16combined charities campaign for the year of approval and only contributions to approved 18.17organizations may be deducted from an employee's pay pursuant to section 
         16A.134. 18.18    Sec. 37. Minnesota Statutes 2008, section 79.34, subdivision 1, is amended to read:18.19    Subdivision 1. Conditions requiring membership. The nonprofit association 18.20known as the Workers' Compensation Reinsurance Association may be incorporated under 18.21chapter 317A with all the powers of a corporation formed under that chapter, except that 18.22if the provisions of that chapter are inconsistent with sections 
         79.34 to 
         79.40, sections 18.2379.34
          to 
         79.40 govern. Each insurer as defined by section 
         79.01, subdivision 2, shall, as 18.24a condition of its authority to transact workers' compensation insurance in this state, be 18.25a member of the reinsurance association and is bound by the plan of operation of the 18.26reinsurance association; provided, that all affiliated insurers within a holding company 18.27system as defined in chapter 60D are considered a single entity for purposes of the exercise 18.28of all rights and duties of membership in the reinsurance association. Each self-insurer 18.29approved under section 
         176.181 and each political subdivision that self-insures shall, as a 18.30condition of its authority to self-insure workers' compensation liability in this state, be a 18.31member of the reinsurance association and is bound by its plan of operation; provided that: 18.32(1) all affiliated companies within a holding company system, as determined by 18.33the commissioner of labor and industry in a manner consistent with the standards and 18.34definitions in chapter 60D, are considered a single entity for purposes of the exercise of all 18.35rights and duties of membership in the reinsurance association; and19.1(2) all group self-insurers granted authority to self-insure pursuant to section 19.2176.181
          are considered single entities for purposes of the exercise of all the rights and 19.3duties of membership in the reinsurance association. As a condition of its authority to 19.4self-insure workers' compensation liability, and for losses incurred after December 31, 19.51983, the state is a member of the reinsurance association and is bound by its plan of 19.6operation. The commissioner of management and budgetadministration represents 19.7the state in the exercise of all the rights and duties of membership in the reinsurance 19.8association. The amounts necessary to pay the state's premiums required for coverage by 19.9the Workers' Compensation Reinsurance Association are appropriated from the general 19.10fund to the commissioner of management and budget administration. The University 19.11of Minnesota shall pay its portion of workers' compensation reinsurance premiums 19.12directly to the Workers' Compensation Reinsurance Association. For the purposes of 19.13this section, "state" means the administrative branch of state government, the legislative 19.14branch, the judicial branch, the University of Minnesota, and any other entity whose 19.15workers' compensation liability is paid from the state revolving fund. The commissioner 19.16of management and budget may calculate, prorate, and charge a department or agency 19.17the portion of premiums paid to the reinsurance association for employees who are 19.18paid wholly or in part by federal funds, dedicated funds, or special revenue funds. The 19.19reinsurance association is not a state agency. Actions of the reinsurance association and its 19.20board of directors and actions of the commissioner of labor and industry with respect to 19.21the reinsurance association are not subject to chapters 13 and 15. All property owned by 19.22the association is exempt from taxation. The reinsurance association is not obligated to 19.23make any payments or pay any assessments to any funds or pools established pursuant to 19.24this chapter or chapter 176 or any other law. 19.25EFFECTIVE DATE.This section is effective the day following final enactment.19.26    Sec. 38. Minnesota Statutes 2008, section 103F.755, is amended to read:19.27103F.755 INTEGRATION OF DATA.19.28The data collected for the activities of the clean water partnership program that have 19.29common value for natural resource planning must be provided and integrated into the 19.30Minnesota land management information system's geographic and summary databases 19.31according to published data compatibility guidelines made available using standards 19.32adopted by the Office of Enterprise Technology and geospatial technology standards and 19.33guidelines published by the Minnesota Geospatial Information Office. Costs associated 19.34with this data delivery must be borne by this activity.20.1    Sec. 39. Minnesota Statutes 2008, section 103H.175, as amended by Laws 2009, 20.2chapter 101, article 2, section 107, is amended to read:20.3103H.175 GROUNDWATER QUALITY MONITORING.20.4    Subdivision 1. Monitoring results to be submitted to the Minnesota Geospatial 20.5Information Office made available using state data standards. The results of 20.6monitoring groundwater quality by state agencies and political subdivisions must 20.7be submitted to made available using standards adopted by the Office of Enterprise 20.8Technology and geospatial technology standards and guidelines published by the 20.9Minnesota Geospatial Information Office.20.10    Subd. 2. Computerized database.The Minnesota Geospatial Information Office20.11Agencies monitoring groundwater shall maintain a computerized database databases of the 20.12results of groundwater quality monitoring in a manner that is accessible to the Pollution 20.13Control Agency, Department of Agriculture, Department of Health, and Department of 20.14Natural Resources. The center shall assess the quality and reliability of the data and 20.15organize the data in a usable format.20.16    Subd. 3. Report. In each even-numbered year, the Pollution Control Agency, in 20.17cooperation with other agencies participating in the monitoring of water resources, shall 20.18provide a draft report on the status of groundwater monitoring to the Environmental 20.19Quality Board for review and then to the house of representatives and senate committees 20.20with jurisdiction over the environment, natural resources, and agriculture as part of the 20.21report in section 
         103A.204.  20.22    Sec. 40. Minnesota Statutes 2008, section 115A.15, subdivision 4, is amended to read:20.23    Subd. 4. Staff. The commissioner of administration shall may employ an 20.24administrator to manage the resource recovery program and other staff and consultants 20.25as are necessary to carry out the program.20.26    Sec. 41. Minnesota Statutes 2008, section 115A.15, subdivision 9, is amended to read:20.27    Subd. 9. Recycling goal.By December 31, 1996, the commissioner shall recycle 20.28at least 60 percent by weight of the solid waste generated by state offices and other state 20.29operations located in the metropolitan area The goal of the resource recovery program 20.30is to recycle at least 60 percent of the solid waste generated by state offices and other 20.31state operations. By March 1 of each year, the commissioner shall report to the Pollution 20.32Control Agency the estimated recycling rates by county for state offices and other state 20.33operations in the metropolitan area for the previous calendar year. The Pollution Control 20.34Agency shall incorporate these figures into the reports submitted by the counties under 21.1section 
         115A.557, subdivision 3, to determine each county's progress toward the goal in 21.2section 
         115A.551, subdivision 2. 21.3Each state agency in the metropolitan area shall work to meet the recycling goal 21.4individually. If the goal is not met by an agency, the commissioner shall notify that 21.5agency that the goal has not been met and the reasons the goal has not been met and shall 21.6provide information to the employees in the agency regarding recycling opportunities and 21.7expectations The commissioner shall provide agencies with their performance against the 21.8goal along with information about recycling opportunities to increase their performance.21.9    Sec. 42. Minnesota Statutes 2008, section 115A.15, subdivision 10, is amended to read:21.10    Subd. 10. Materials recovery facility; materials collection; waste audits. (a) The 21.11commissioner of the Department of Administration shall establish a central materials 21.12recovery facility to manage recyclable materials collected from state offices and other state 21.13operations in the metropolitan area. The facility must be located as close as practicable to 21.14the State Capitol complex and must be large enough to accommodate temporary storage 21.15of recyclable materials collected from state offices and other state operations in the 21.16metropolitan area and the processing of those materials for market.21.17(b) The commissioner shall establish a recyclable materials collection and 21.18transportation system for state offices and other state operations in the metropolitan area 21.19that will maximize the types and amount of materials collected and the number of state 21.20offices and other state operations served, and will minimize barriers to effective and 21.21efficient collection, transportation, and marketing of recyclable materials.21.22(c) The commissioner shall may perform regular audits on the solid waste and 21.23recyclable materials collected to identify materials upon which to focus waste reduction, 21.24reuse, and recycling activities and to measure:21.25(1) progress made toward the recycling goal in subdivision 9;21.26(2) progress made to reduce waste generation; and21.27(3) potential for additional waste reduction, reuse, and recycling.21.28(d) The commissioner may contract with private entities for the activities required in 21.29this subdivision if the commissioner determines that it would be cost-effective to do so.21.30    Sec. 43. [116W.035] INFORMATION TECHNOLOGY.21.31    To the extent the projects or grants approved by the authority or other work of the 21.32authority impact state information systems,  these information systems are subject to 21.33the jurisdiction of the Office of Enterprise Technology in chapter 16E, including, but 21.34not limited to:22.1    (1) evaluation and approval as specified in section 16E.03, subdivisions 3 and 4;22.2    (2) review to ensure compliance with security policies, guidelines, and standards as 22.3specified in section 16E.03, subdivision 7; and22.4    (3) assurance of compliance with accessibility standards developed under section 22.516E.03, subdivision 9.22.6    Sec. 44. Minnesota Statutes 2008, section 127A.30, subdivision 2, is amended to read:22.7    Subd. 2. Duties.  The advisory committee, in conjunction with the Legislative 22.8Coordinating Commission, shall review the policies of the Department of Natural 22.9Resources and current statutes on management of school trust fund lands at least annually 22.10and shall recommend necessary changes in statutes, policy, and implementation in order to 22.11ensure provident utilization of the permanent school fund lands. By January 15 of each 22.12year, the advisory committee shall submit a report to the legislature with recommendations 22.13for the oversight and management of school trust lands to secure long-term economic 22.14return for the permanent school fund, consistent with sections 
         92.121 and 
         127A.31. The 22.15committee's annual report may include recommendations to:22.16    (1) manage the school trust lands efficiently;22.17    (2) reduce the management expenditures of school trust lands and maximize the 22.18revenues deposited in the permanent school trust fund;22.19    (3) manage the sale, exchange, and commercial leasing of school trust lands to 22.20maximize the revenues deposited in the permanent school trust fund and retain the value 22.21from the long-term appreciation of the school trust lands; and22.22    (4) manage the school trust lands to maximize the long-term economic return for the 22.23permanent school trust fund while maintaining sound natural resource conservation and 22.24management principles.22.25EFFECTIVE DATE.This section is effective July 1, 2011.22.26    Sec. 45. Minnesota Statutes 2008, section 211B.01, subdivision 3, is amended to read:22.27    Subd. 3. Candidate. "Candidate" means an individual who seeks nomination 22.28or election to a federal, statewide, legislative, judicial, or local office including special 22.29districts, school districts, towns, home rule charter and statutory cities, and counties, 22.30except candidates for president and vice-president of the United States.22.31    Sec. 46. Minnesota Statutes 2008, section 211B.04, is amended to read:22.32211B.04 CAMPAIGN LITERATURE MUST INCLUDE DISCLAIMER.23.1(a) A person who participates in the preparation or dissemination of campaign 23.2material other than as provided in section 
         211B.05, subdivision 1, that does not 23.3prominently include the name and address of the person or committee causing the material 23.4to be prepared or disseminated in a disclaimer substantially in the form provided in 23.5paragraph (b) or (c) is guilty of a misdemeanor.  23.6(b) Except in cases covered by paragraph (c), the required form of disclaimer is: 23.7"Prepared and paid for by the .......... committee, .........(address)" for material prepared 23.8and paid for by a principal campaign committee, or "Prepared and paid for by the .......... 23.9committee, .........(address), in support of .........(insert name of candidate or ballot 23.10question)" for material prepared and paid for by a person or committee other than a 23.11principal campaign committee.23.12(c) In the case of broadcast media, the required form of disclaimer is: "Paid for by 23.13the ............ committee."23.14(d) Campaign material that is not circulated on behalf of a particular candidate 23.15or ballot question must also include in the disclaimer either that it is "in opposition to 23.16.....(insert name of candidate or ballot question.....)"; or that "this publication is not 23.17circulated on behalf of any candidate or ballot question."23.18(e) This section does not apply to objects stating only the candidate's name and 23.19the office sought, fund-raising tickets, or personal letters that are clearly being sent by 23.20the candidate.23.21(f) This section does not apply to an individual or association who acts independently 23.22of any candidate, candidate's committee, political committee, or political fund and spends 23.23only from the individual's or association's own resources a sum that is less than $50023.24$2,000  in the aggregate to produce or distribute campaign material that is distributed at 23.25least seven days before the election to which the campaign material relates.23.26(g) This section does not modify or repeal section 
         211B.06.  23.27EFFECTIVE DATE.This section is effective June 1, 2010, and applies to 23.28campaign material prepared and disseminated on or after that date.23.29    Sec. 47. Minnesota Statutes 2008, section 211B.15, subdivision 2, is amended to read:23.30    Subd. 2. Prohibited contributions. A corporation may not make a contribution 23.31or offer or agree to make a contribution, directly or indirectly, of any money, property, 23.32free service of its officers, employees, or members, or thing of monetary value to a 23.33major political party, organization, committee, or individual to promote or defeat the 23.34candidacy of an individual for nomination, election, or appointment to a political office. 23.35For the purpose of this subdivision, "contribution" includes an expenditure to promote or 24.1defeat the election or nomination of a candidate to a political office that is made with the 24.2authorization or expressed or implied consent of, or in cooperation or in concert with, or at 24.3the request or suggestion of, a candidate or committee established to support or oppose a 24.4candidate but does not include an independent expenditure authorized by subdivision 3.24.5    Sec. 48. Minnesota Statutes 2008, section 211B.15, subdivision 3, is amended to read:24.6    Subd. 3. Independent expenditures. A corporation may not make an independent24.7expenditure or offer or agree to make an independent expenditure to promote or defeat the 24.8candidacy of an individual for nomination, election, or appointment to a political office, 24.9unless the expenditure is an independent expenditure. For the purpose of this subdivision, 24.10"independent expenditure" means an expenditure that is not made with the authorization 24.11or expressed or implied consent of, or in cooperation or concert with, or at the request 24.12or suggestion of, a candidate or committee established to support or oppose a candidate24.13has the meaning given in section 10A.01, subdivision 18.24.14EFFECTIVE DATE.This section is effective the day following final enactment.24.15    Sec. 49. Minnesota Statutes 2008, section 216B.16, is amended by adding a 24.16subdivision to read:24.17    Subd. 18.Election or ballot question expenses.The commission may not allow 24.18a public utility to recover from ratepayers expenses resulting from a contribution or 24.19expenditure made for a political purpose, as defined in section 211B.01. This subdivision 24.20does not prohibit a public utility from engaging in political activity or making a 24.21contribution or expenditure otherwise permitted by law.24.22EFFECTIVE DATE.This section is effective the day following final enactment.24.23    Sec. 50. Minnesota Statutes 2008, section 307.08, subdivision 5, is amended to read:24.24    Subd. 5. Cost; use of data. The cost of authentication, recording, surveying, and 24.25marking burial grounds and the cost of identification, analysis, rescue, and reburial of 24.26human remains on public lands or waters shall be the responsibility of the state or political 24.27subdivision controlling the lands or waters. On private lands or waters these costs shall be 24.28borne by the state, but may be borne by the landowner upon mutual agreement with the 24.29state. The data collected by this activity that has common value for resource planning must 24.30be provided and integrated into the Minnesota land management information system's 24.31geographic and summary databases according to published data compatibility guidelines.24.32The State Archaeologist must make the data collected for this activity available using 25.1standards adopted by the Office of Enterprise Technology and geospatial technology 25.2standards and guidelines published by the Minnesota Geospatial Information Office. Costs 25.3associated with this data delivery must be borne by the state.25.4    Sec. 51. Minnesota Statutes 2008, section 318.02, subdivision 1, is amended to read:25.5    Subdivision 1. Definition. The term "declaration of trust" as used in this section 25.6means the declaration of trust, business trust instrument, trust indenture, contract of 25.7custodianship, or other instrument pursuant to which such association is organized. Every 25.8such association organized after April 20, 1961, for the purpose of transacting business 25.9in this state shall, prior to transacting any business in this state, file in the Office of the 25.10Secretary of State a true and correct copy of the "declaration of trust" under which the 25.11association proposes to conduct its business. The copy shall also contain a statement that 25.12the true and correct copy of the "declaration of trust" is being filed in the Office of the 25.13Secretary of State of the state of Minnesota pursuant to this chapter and shall also include 25.14the full name and street address of an agent of the business trust in this state. That agent 25.15shall be the agent for service of process which shall be made pursuant to the provisions 25.16of section 
         543.08. The "declaration of trust" may provide that the duration of such 25.17association shall be perpetual. Upon the filing of the copy of the "declaration of trust," and 25.18the payment of a filing fee of $150 to the secretary of state, the secretary of state shall issue 25.19to such association, or to the trustees named in the said "declaration of trust," or to the 25.20persons or parties to the "declaration of trust," a certificate showing that such "declaration 25.21of trust" has been duly filed; whereupon, such association in its name shall be authorized 25.22to transact business in this state; provided that all other applicable laws have been 25.23complied with. The "declaration of trust" may be amended as provided in the "declaration 25.24of trust" or in any amendments thereto but a true and correct copy of all amendments to the 25.25"declaration of trust," shall be filed in the Office of the Secretary of State upon the payment 25.26of a filing fee of $50 to the secretary of state and all amendments shall become effective at 25.27the time of said filing. When such copy of the "declaration of trust" and any amendments 25.28thereto shall have been filed in the Office of the Secretary of State it shall constitute public 25.29notice as to the purposes and manner of the business to be engaged in by such association.  25.30    Sec. 52. Minnesota Statutes 2008, section 336.9-531, is amended to read:25.31336.9-531 ELECTRONIC ACCESS; LIABILITY; RETENTION.25.32(a) Electronic access. The secretary of state may allow private parties to have 25.33electronic access to the central filing system and to other computerized records maintained 25.34by the secretary of state on a fee basis, except that: (1) visual access to electronic display 26.1terminals at the public counters at the Secretary of State's Office must be without charge 26.2and must be available during public counter hours; and (2) access by law enforcement 26.3personnel, acting in an official capacity, must be without charge. If the central filing system 26.4allows a form of electronic access to information regarding the obligations of debtors, the 26.5access must be available 24 hours a day, every day of the year. Notwithstanding section 26.613.355, private parties who have electronic access to computerized records may view the 26.7Social Security number information about a debtor that is of record.26.8Notwithstanding section 13.355, a filing office may include Social Security number 26.9information in an information request response under section 336.9-523 or a search of 26.10other liens in the central filing system. A filing office may also include Social Security 26.11number information on a photocopy or electronic copy of a record whether provided in 26.12an information request response or in response to a request made under section 13.03.26.13Any Social Security number information or tax identification number information in the 26.14possession of the secretary of state is private data on individuals or nonpublic data.26.15(b) Liability. The secretary of state, county recorders, and their employees and 26.16agents are not liable for any loss or damages arising from errors in or omissions from 26.17information entered into the central filing system as a result of the electronic transmission 26.18of tax lien notices under sections 
         268.058, subdivision 1, paragraph (c); 
         270C.63, 26.19subdivision 4
         ; 
         272.483; and 
         272.488, subdivisions 1 and 3.26.20The state, the secretary of state, counties, county recorders, and their employees and 26.21agents are immune from liability that occurs as a result of errors in or omissions from 26.22information provided from the central filing system.26.23(c) Retention. Once the image of a paper record has been captured by the central 26.24filing system, the secretary of state may remove or direct the removal from the files and 26.25destroy the paper record.26.26EFFECTIVE DATE.This section is effective for financing statements filed in the 26.27central filing system after November 30, 2010.26.28    Sec. 53. Minnesota Statutes 2008, section 336A.08, subdivision 1, is amended to read:26.29    Subdivision 1. Compilation. (a) The secretary of state shall compile the information 26.30on effective financing statements in the computerized filing system into a master list:26.31(1) organized according to farm product;26.32(2) arranged within each product:26.33(i) in alphabetical order according to the last name of the individual debtor or, in 26.34the case of debtors doing business other than as individuals, the first word in the name 26.35of the debtors;27.1(ii) in numerical order according to the Social Security number of the individual 27.2debtor or, in the case of debtors doing business other than as individuals, the Internal 27.3Revenue Service taxpayer identification number of the debtors unique identifier assigned 27.4by the secretary of state to, and associated with, the Social Security or tax identification 27.5number of the debtor;27.6(iii) geographically by county; and27.7(iv) by crop year;27.8(3) containing the information provided on an effective financing statement; and27.9(4) designating any applicable terminations of the effective financing statement.27.10(b) The secretary of state shall compile information from lien notices recorded in the 27.11computerized filing system into a statutory lien master list in alphabetical order according 27.12to the last name of the individual debtor or, in the case of debtors doing business other 27.13than as individuals, the first word in the name of the debtors. The secretary of state may 27.14also organize the statutory lien master list according to one or more of the categories of 27.15information established in paragraph (a). Any terminations of lien notices must be noted.27.16EFFECTIVE DATE.This section is effective for lists compiled pursuant to this 27.17section after October 31, 2010.27.18    Sec. 54. Minnesota Statutes 2008, section 336A.08, subdivision 4, is amended to read:27.19    Subd. 4. Distribution of master and partial lists. (a) The secretary of state shall 27.20maintain the information on the effective financing statement master list:27.21(1) by farm product arranged alphabetically by debtor; and27.22(2) by farm product arranged numerically by the debtor's Social Security number for 27.23an individual debtor or, in the case of debtors doing business other than as individuals, the 27.24Internal Revenue Service taxpayer identification number of the debtors unique identifier 27.25assigned by the secretary of state to, and associated with, the Social Security or tax 27.26identification number of the debtor.27.27(b) The secretary of state shall maintain the information in the farm products 27.28statutory lien master list by county arranged alphabetically by debtor.27.29(c) The secretary of state shall distribute or make available the requested master and 27.30partial master lists on a monthly basis to farm product dealers registered under section 27.31336A.11
         . Lists will be distributed or made available on or before the tenth day of each 27.32month or on the next business day thereafter if the tenth day is not a business day.  27.33(d) The secretary of state shall make the master and partial master lists available 27.34as written or printed paper documents and may make lists available in other forms or 27.35media, including:28.1(1) any electronically transmitted medium; or28.2(2) any form of digital media.28.3(e) There shall be no fee for partial or master lists distributed via an electronically 28.4transmitted medium. The annual fee for any other form of digital media is $200. The 28.5annual fee for paper partial lists is $250 and $400 for paper master lists.28.6(f) A farm products dealer shall register pursuant to section 
         336A.11 by the last 28.7business day of the month to receive the monthly lists requested by the farm products 28.8dealer for that month.  28.9(g) If a registered farm products dealer receives a monthly list that cannot be read or 28.10is incomplete, the farm products dealer must immediately inform the secretary of state by 28.11telephone or e-mail of the problem. The registered farm products dealer shall confirm the 28.12existence of the problem by writing to the secretary of state. The secretary of state shall 28.13provide the registered farm products dealer with new monthly lists in the medium chosen 28.14by the registered farm products dealer no later than five business days after receipt of the 28.15oral notice from the registered farm products dealer. A registered farm products dealer is 28.16not considered to have received notice of the information on the monthly lists until the 28.17duplicate list is received from the secretary of state or until five days have passed since the 28.18duplicate lists were deposited in the mail by the secretary of state, whichever comes first.28.19(h) On receipt of a written notice pursuant to section 
         336A.13, the secretary of state 28.20shall duplicate the monthly lists requested by the registered farm products dealer. The 28.21duplicate monthly lists must be sent to the registered farm products dealer no later than five 28.22business days after receipt of the written notice from the registered farm products dealer.  28.23(i) A registered farm products dealer may request monthly lists in one medium 28.24per registration.28.25(j) Registered farm products dealers must have renewed their registration before the 28.26first day of July each year. Failure to send in the registration before that date will result in 28.27the farm products dealer not receiving the requested monthly lists.28.28(k) Registered farm products dealers choosing to obtain monthly lists via an 28.29electronically transmitted medium or in any form of digital media may choose to receive 28.30all of the information for the monthly lists requested the first month and then only 28.31additions and deletions to the database for the remaining 11 months of the year. Following 28.32the first year of registration, the registered farm products dealer may choose to continue to 28.33receive one copy of the full monthly list at the beginning of each year or may choose to 28.34receive only additions and deletions.28.35EFFECTIVE DATE.This section is effective for lists distributed pursuant to this 28.36section after October 31, 2010.29.1    Sec. 55. Minnesota Statutes 2008, section 336A.14, is amended to read:29.2336A.14 RESTRICTED USE OF INFORMATION.29.3Any Social Security number information or tax identification number information in 29.4the possession of the secretary of state is private data on individuals or nonpublic data. 29.5Information obtained from the seller of a farm product relative to the Social Security 29.6number or tax identification number of the true owner of the farm product and all 29.7information obtained from the master or limited list may not be used for purposes that are 29.8not related to: (1) purchase of a farm product; (2) taking a security interest against a farm 29.9product; or (3) perfecting a farm product statutory lien.29.10EFFECTIVE DATE.This section is effective October 31, 2010.29.11    Sec. 56. Minnesota Statutes 2009 Supplement, section 365.46, subdivision 2, is 29.12amended to read:29.13    Subd. 2.  Copies. The county auditor shall alsosecretary of state shall send a 29.14copy of the notice of the dissolution to: (1) the state demographer, (2) the Minnesota 29.15Geospatial Information Office, (3) the chief administrative law judge of the state Office 29.16of Administrative Hearings, and (4) the commissioner of transportation, and (5) the 29.17commissioner of revenue. 29.18    Sec. 57. Minnesota Statutes 2009 Supplement, section 379.05, is amended to read:29.19379.05 AUDITOR TO SUM UP REPORT FOR STATE, MAKE TOWN 29.20RECORD. 29.21Each county auditor shall within 30 days after any such town is organized 29.22transmit by mail or appropriate digital technology to the commissioner of revenue, the 29.23secretary of state, the state demographer, the Minnesota Geospatial Information Office, 29.24the chief administrative law judge of the state Office of Administrative Hearings, and 29.25the commissioner of transportation an abstract of such report, giving the name and 29.26boundaries of such town and record in a book kept for that purpose a full description 29.27of each such town. The secretary of state shall distribute copies of the abstract to the 29.28commissioner of revenue, state demographer, the Minnesota Geospatial Information 29.29Office, the chief administrative law judge of the state Office of Administrative Hearings, 29.30and the commissioner of transportation.29.31    Sec. 58. Minnesota Statutes 2008, section 557.01, is amended to read:29.32557.01 NONRESIDENT, AGENT TO ACCEPT SERVICE.30.1Any nonresident person or corporation owning or claiming any interest or lien in 30.2or upon lands in the state may file with the secretary of state a writing, executed and 30.3acknowledged in the manner of a conveyance, appointing a resident agent, whose place 30.4of residence shall be stated, to accept service of process or summons in any action or 30.5proceeding in the courts of the state concerning such interest or lien, except actions or 30.6proceedings for the collection of taxes, and consenting that service of such process or 30.7summons upon such agent shall be binding upon the person executing the same. Such 30.8writing shall be recorded by the secretary. No service by publication of summons shall 30.9be made upon any such nonresident who has complied with the provisions hereof, but in 30.10all such cases service of such process or summons, or of any writ or notice in the action 30.11or proceedings, shall be made upon such agent in the manner provided by law for such 30.12service upon residents of the state, and have the same effect as personal service within 30.13the state upon such owner or claimant; but, if such party appears by attorneys therein, the 30.14service of papers shall thereafter be upon such attorney. The authority of such agent 30.15may be revoked by writing similarly executed and acknowledged and recorded, but no 30.16revocation shall affect any action or proceeding then pending. For filing and recording 30.17such papers the secretary shall be entitled to 15 cents for each folio The fee for each filing 30.18made under this section is $50.30.19    Sec. 59. Laws 2010, chapter 189, section 35, subdivision 1, is amended to read:30.20    Subdivision 1. Grants authorized.Within the limits of available appropriations, 30.21the commissioner shall make grants to counties, cities, towns, and school districts to 30.22acquire, construct, or renovate public land and buildings and other public improvements 30.23of a capital nature for cooperative facilities to be owned and operated by the grantees.30.24    Sec. 60. STUDY OF DIVISION OF STATE DEPOSITORY ACCOUNTS AND 30.25GENERAL FUND REVENUE ACCOUNT.30.26(a) The Carlson School of Management at the University of Minnesota is requested 30.27to study: 30.28(1) the feasibility of dividing the state's general fund revenue account among 30.29community financial institutions and transferring the state's major and minor accounts to 30.30community financial institutions in order to ensure that state money benefits Minnesota 30.31residents; 30.32(2) the potential economic benefit or costs of transferring all major and minor 30.33accounts to community financial institutions; and31.1(3) the potential economic benefit or costs to governmental entities as defined by 31.2Minnesota Statutes, section 118A.01, subdivision 2, from an increase in their use of 31.3community financial institutions as defined in clause (1).31.4(b) The results of the study must be reported to the legislature by December 1, 2010.31.5For purposes of this section, "community financial institution" means a federally 31.6insured bank or credit union, chartered as a bank or credit union by the state of 31.7Minnesota or the United States, that is headquartered in Minnesota and has no more than 31.8$2,500,000,000 in assets.31.9    Sec. 61. GOVERNMENT EFFICIENCY AND TRANSPARENCY STUDIES.31.10    Subdivision 1.Data center study.(a) The commissioner of management and 31.11budget, in consultation with the state chief information officer, must study and report to the 31.12chairs and ranking minority members of the house and senate committees with jurisdiction 31.13over state government finance by January 15, 2011, on the feasibility and estimated costs 31.14of entering into a lease or lease-purchase agreement with a private nonprofit organization, 31.15involving a private sector developer, to provide a centralized data center for state agencies 31.16or to upgrade current facilities for purposes of data center consolidation. The report must 31.17include a potential schedule for consolidation of existing state agency data centers,  and 31.18an estimate of any savings, increased efficiencies, or  performance improvements that 31.19would be achieved through this consolidation.31.20(b) In conducting the study required under paragraph (a), the commissioner shall 31.21consult with representatives of higher education and local government units to determine 31.22the feasibility and desirability of creating a shared service contract for a data center.31.23(c) If the commissioner of management and budget and chief information officer 31.24conclude that entering into an agreement described in paragraph (a) is cost-beneficial, the 31.25commissioner may enter into such an agreement notwithstanding any law to the contrary.31.26    Subd. 2.Transparency standards.By January 15, 2011, the chief information 31.27officer shall report to the chairs and ranking minority members of the legislative 31.28committees with jurisdiction over the Office of Enterprise Technology regarding the 31.29development of the standards to enhance public access to data required under Minnesota 31.30Statutes, section 16E.05, subdivision 4. The report must describe the process for 31.31development of the standards, including the opportunity provided for public comment, 31.32and specify the components of the standards that have been implemented, including a 31.33description of the level of public use of the new opportunities for data access under the 31.34standards.32.1    Sec. 62. REQUEST FOR PROPOSALS.32.2(a) The commissioner of revenue shall issue a request for proposals for a contract to 32.3implement a system of tax analytics and business intelligence tools to enhance the state's 32.4tax collection process and revenues by improving the means of identifying candidates 32.5for audit and collection activities and prioritizing those activities to provide the highest 32.6returns on auditors' and collection agents' time. The request for proposals must require 32.7that the system recommended and implemented by the contractor:32.8(1) leverage the Department of Revenue's existing data and other available data 32.9sources to build models that  more effectively and efficiently identify accounts for audit 32.10review and collections;32.11(2) leverage advanced analytical techniques and technology such as pattern 32.12detection, predictive modeling, clustering, outlier detection, and link analysis to identify 32.13suspect accounts for audit review and collections;32.14(3) leverage a variety of approaches and analytical techniques to rank accounts and 32.15improve the success rate and the return on investment of department employees engaged 32.16in audit activities;32.17(4) leverage technology to make the audit process more sustainable and stable, even 32.18with turnover of department auditing staff;32.19(5) provide optimization capabilities to more effectively prioritize collections and 32.20increase the efficiency of employees engaged in collections activities; and32.21(6) incorporate mechanisms to decrease wrongful auditing and reduce interference 32.22with Minnesota taxpayers who are fully complying with the laws.32.23(b) Based on acceptable responses to the request for proposals, the commissioner 32.24shall enter into a contract for the services specified in paragraph (a) by July 1, 2012. The 32.25contract must incorporate a performance-based vendor financing option whereby the 32.26vendor shares in the risk of the project's success.32.27EFFECTIVE DATE.This section is effective July 1, 2011.32.28    Sec. 63. COMMISSION ON SERVICE INNOVATION.32.29The governor shall appoint a Commission on Service Innovation to produce a 32.30strategic plan to reengineer the delivery of state and local government services, including 32.31the realignment of service delivery by region and proximity, the use of new technologies, 32.32shared facilities, and other means of improving efficiency. The plan shall also provide a 32.33process to review and modify recommendations at regular intervals in the future based on 32.34specific results measured at regular intervals. The plan shall also include any proposed 32.35legislation necessary to implement the commission's recommendations.33.1    Sec. 64. COST RECOVERY.33.2During the biennium ending June 30, 2011, the chief information officer of the 33.3Office of Enterprise Technology may bill executive branch state agencies and offices 33.4for any increased costs the office incurs in implementing amendments to Minnesota 33.5Statutes, chapter 16E, in this act. Amounts received by the office under this section are 33.6appropriated to the office for purposes of implementing Minnesota Statutes, chapter 16E, 33.7in the manner specified in this act.33.8    Sec. 65. BUSINESS INTELLIGENCE AND INFORMATION ANALYTICS.33.9The Legislative Coordinating Commission must ensure that the house of 33.10representatives and the senate have improved ability to access and analyze public data 33.11contained in executive branch accounting, procurement, and budget systems. The 33.12commission must issue a request for information or a request for proposals for the 33.13legislature to obtain business intelligence and information analytics software or software 33.14services.33.15    Sec. 66. APPROPRIATIONS; ASSISTIVE VOTING EQUIPMENT AND 33.16VOTE-COUNTING EQUIPMENT.33.17    Subdivision 1.Operating grants.$300,000 is appropriated in fiscal year 2010 from 33.18the Help America Vote Act account to the secretary of state for grants to counties to defray 33.19operating costs of the assistive voting equipment and vote-counting equipment in each 33.20polling place. This appropriation is available until spent. Grants of up to $300 per polling 33.21place may be made until this appropriation is exhausted. If the grant requests exceed the 33.22appropriation available, the secretary of state shall prorate the grant amounts to each 33.23eligible county to match the amount available.33.24    Subd. 2.Grant application.To receive a grant under this subdivision, a county 33.25must apply to the secretary of state on forms prescribed by the secretary of state that 33.26set forth how the grant money will be spent. Grant applications for operating costs for 33.27the 2010 elections must be received by the secretary of state by August 1, 2010. Grant 33.28awards must be made to the counties by December 1, 2010. If funds remain from this 33.29appropriation, the secretary may also make grants available for the 2012 election, with 33.30grant applications due by March 1, 2012, and grants made to counties by June 30, 2012.33.31    Subd. 3.Eligibility.To be eligible to apply for a grant under this section, a county 33.32must have fewer than 50,000 registered voters as of January 1, 2010, and must have 33.33less than $300 per polling place that was used in the 2008 general election as a balance, 34.1including any interest earned on the account, in its Help America Vote Act account from 34.2funds distributed to it in 2005.34.3    Subd. 4.Report.Each county receiving a grant under this section must include 34.4the expenditures it has made on the appropriate Help America Vote Act reports submitted 34.5to the secretary of state. If a county does not use the funds it has received under this 34.6section by June 30, 2013, it must return the funds to the secretary of state. In addition 34.7to the report required by this section, each county receiving a grant under this act must 34.8maintain financial records for each grant sufficient to satisfy federal audit standards and 34.9must transmit those records to the secretary of state upon request of the secretary of state. 34.10The secretary of state must report by January 15, 2011, and January 15, 2013, to the 34.11chairs and ranking minority members of the house of representatives and senate funding 34.12divisions with jurisdiction over the Office of the Secretary of State on the amount of grants 34.13made to each county receiving a grant under this section in the prior calendar year.34.14    Subd. 5.Operating costs."Operating costs" include actual county and municipal 34.15costs for hardware maintenance, election day technical support, software licensing, system 34.16programming, voting system testing, training of county or municipal staff in the use of 34.17voting equipment, and transportation of and storage of the voting equipment.34.18EFFECTIVE DATE.This section is effective the day following final enactment.34.19    Sec. 67. APPROPRIATIONS; OPTICAL SCAN EQUIPMENT.34.20    Subdivision 1.Optical scan voting equipment grants.$2,100,000 is appropriated 34.21in fiscal year 2010 from the Help America Vote Act account to the secretary of state 34.22for grants to counties to purchase optical scan voting equipment. This appropriation 34.23is available until spent. If the grant requests exceed the appropriation available, the 34.24secretary of state shall prorate the grant amounts to each eligible county to match the 34.25amount available.34.26    Subd. 2.Grant application.To receive a grant under this section, a county must 34.27apply to the secretary of state on forms prescribed by the secretary of state that set forth 34.28how the grant money will be spent. Applications for grants under this section must be 34.29submitted to the secretary of state by December 1, 2010, and be for purchases made prior 34.30to March 31, 2014. Any funds granted to a county and not spent by June 30, 2014, must 34.31be returned to the secretary of state and the Help America Vote Act account.35.1    Subd. 3.Eligibility.A county is eligible to apply for a grant of up to $4,000 per 35.2precinct to replace precinct-based optical scan vote counters if the vote counter was 35.3purchased prior to December 31, 2002, and the county received no federal or state funds 35.4to defray the cost of that purchase. Counties must agree to provide a 50 percent match for 35.5any state and federal funds granted through this grant application.35.6    Subd. 4.Report.Each county receiving a grant under this section must include 35.7the expenditures it has made on the appropriate Help America Vote Act reports submitted 35.8to the secretary of state. If a county does not use the funds it has received under this 35.9section by June 30, 2014, it must return the funds to the secretary of state. In addition 35.10to the report required by this section, each county receiving a grant under this act must 35.11maintain financial records for each grant sufficient to satisfy federal audit standards and 35.12must transmit those records to the secretary of state upon request of the secretary of state. 35.13The secretary of state must report by January 15 each year through 2014 to the chairs and 35.14ranking minority members of the house of representatives and senate funding divisions 35.15with jurisdiction over the Office of the Secretary of State on the amount of grants made to 35.16each county receiving a grant under this section in the prior calendar year.35.17EFFECTIVE DATE.This section is effective the day following final enactment.35.18    Sec. 68.  REPEALER.35.19(a) Laws 2005, chapter 162, section 34, subdivision 2, as amended by Laws 2009, 35.20chapter 101, article 2, section 95, is repealed.35.21(b) Minnesota Statutes 2009 Supplement, section 645.44, subdivision 19, is repealed.35.22(c) Minnesota Statutes 2008, section 211B.15, subdivision 12, is repealed.35.23    Sec. 69. EFFECTIVE DATE.35.24     Section 23 is effective July 1, 2010, and applies to grant  agreements entered into 35.25and to appropriations received after that date. The repeal of Minnesota Statutes, section 35.26211B.15, subdivision 12, is effective the day following final enactment.35.27ARTICLE 235.28STRATEGIC PLAN35.29    Section 1. STRATEGIC PLAN REPORT.35.30By January 15, 2011, the Minnesota Innovation and Research Council shall report to 35.31the governor and the chairs and ranking minority members of the legislative committees 35.32and divisions with jurisdiction over state government policy and finance with a strategic 36.1plan containing findings and recommendations to improve state and local government 36.2delivery of public services. The strategic plan must specify:36.3(1) how to enhance the public involvement and input as the public uses state and 36.4local government services and public schools;36.5(2) how technology can be leveraged to reduce costs and enhance quality;36.6(3) how service innovation will increase value or results per dollar spent; and36.7(4) the design for a platform that will facilitate high-quality innovation and evaluate 36.8state and local government structural redesign in the future.36.9The strategic plan shall also provide a process to review and modify 36.10recommendations at regular intervals in the future based on specific results measured 36.11at regular intervals.36.12The strategic plan shall also include any proposed legislation necessary to implement 36.13the council's recommendations.36.14ARTICLE 336.15MINNESOTA INNOVATION AND RESEARCH COUNCIL36.16    Section 1. Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision 36.17to read:36.18    Subd. 9.Recommendations to the Minnesota Innovation and Research Council.36.19The legislative auditor may make recommendations to the Minnesota Innovation and 36.20Research Council established under section 465.7902 that will assist the council in 36.21accomplishing its duties.36.22    Sec. 2. [465.7901] DEFINITIONS.36.23    Subdivision 1.Agency."Agency" means a department, agency, board, or other 36.24instrumentality of state government that has jurisdiction over an administrative rule or 36.25law from which a waiver is sought under section 465.7903. If no specific agency has 36.26jurisdiction over such a law, agency refers to the attorney general.36.27    Subd. 2.Council."Council" means the Minnesota Innovation and Research Council 36.28established by section 465.7902.36.29    Subd. 3.Local government unit."Local government unit" means a county, home 36.30rule charter or statutory city, school district, town, or special taxing district.36.31    Subd. 4.Metropolitan agency."Metropolitan agency" has the meaning given in 36.32section 473.121, subdivision 5a.36.33    Subd. 5.Metropolitan area."Metropolitan area" has the meaning given in section 36.34473.121, subdivision 2.37.1    Subd. 6.Metropolitan Council."Metropolitan Council" means the Metropolitan 37.2Council established by section 473.123.37.3    Subd. 7.Scope.As used in sections 465.7901 to 465.7907 and 465.805 to 465.808, 37.4the terms defined in this section have the meanings given them.37.5    Sec. 3. [465.7902] MINNESOTA INNOVATION AND RESEARCH COUNCIL.37.6    Subdivision 1.Membership.The Minnesota Innovation and Research Council 37.7consists of 15 members, appointed as follows:37.8(1) two members of the senate, appointed by the Subcommittee on Committees of 37.9the Senate Committee on Rules and Administration, one member of the majority caucus 37.10and one member of the largest minority caucus;37.11(2) two members of the house of representatives, appointed by the speaker of the 37.12house, one member of the majority caucus and one member of the largest minority caucus;37.13(3) the commissioner of management and budget;37.14(4) the commissioner of administration;37.15(5) the state chief information officer;37.16(6) an administrative law judge appointed by the chief administrative law judge;37.17(7) the state auditor; 37.18(8) two members with a background in academic research concerning system 37.19redesign and delivery, including one member appointed by the chancellor of the Minnesota 37.20State Colleges and Universities and one member appointed by the president of the 37.21University of Minnesota;37.22(9) one member with experience in the leadership of nonprofit organizations, 37.23appointed by the Minnesota Council of Nonprofits;37.24(10) one member with experience in foundation leadership appointed by the 37.25Minnesota Council on Foundations;37.26(11) one member with experience as a leader of a for-profit corporation, appointed 37.27by the Minnesota Chamber of Commerce; and37.28(12) one member representing public employees appointed by the American 37.29Federation of State, County and Municipal Employees.37.30All members must have experience or interest in the work of system redesign or public 37.31sector innovation. The legislative members serve as nonvoting members. Only members 37.32designated in clauses (3) to (7) may vote on proposed rule or law waivers under section 37.33465.7903. A commissioner serving on the council may designate an employee from the 37.34commissioner's agency to serve as the commissioner's designee. A person registered as a 37.35lobbyist under chapter 10A may not be a member of the council.38.1    Subd. 2.Duties of council.The council shall:38.2(1) accept applications from local government units and nonprofit organizations for 38.3waivers of administrative rules and temporary, limited exemptions from enforcement of 38.4procedural requirements in state law as provided in section 465.7903, and determine 38.5whether to approve, modify, or reject the application;38.6(2) accept applications for grants to local government units and related organizations 38.7proposing to design models or plans for innovative service delivery and management as 38.8provided in section 465.7905, and determine whether to approve, modify, or reject the 38.9application;38.10(3) accept applications from eligible local government units for service-sharing 38.11grants as provided in section 465.7905, and determine whether to approve, modify, 38.12or reject the application;38.13(4) make recommendations to the legislature for the authorization of pilot projects 38.14for the implementation of innovative service delivery activities that require statutory 38.15authorization;38.16(5) make recommendations to the legislature regarding the elimination of state 38.17mandates that inhibit local government efficiency, innovation, and cooperation by 38.18prescribing specific processes for achieving a desired outcome;38.19(6) investigate and review the role of unfunded state mandates in intergovernmental 38.20relations and assess their impact on state and local government objectives and 38.21responsibilities;38.22(7) make recommendations to the governor and the legislature regarding:38.23(i) allowing flexibility for local units of government in complying with specific 38.24unfunded state mandates for which terms of compliance are unnecessarily rigid or 38.25complex;38.26(ii) reconciling any two or more unfunded state mandates that impose contradictory 38.27or inconsistent requirements;38.28(iii) terminating unfunded state mandates that are duplicative, obsolete, or lacking 38.29in practical utility;38.30(iv) suspending, on a temporary basis, unfunded state mandates that are not vital 38.31to public health and safety and that compound the fiscal difficulties of local units of 38.32government, including recommendations for initiating the suspensions;38.33(v) consolidating or simplifying unfunded state mandates or the planning or 38.34reporting requirements of the mandates, in order to reduce duplication and facilitate 38.35compliance by local units of government with those mandates; and39.1(vi) establishing common state definitions or standards to be used by local units of 39.2government in complying with unfunded state mandates that use different definitions or 39.3standards for the same terms or principles; 39.4(8) identify relevant unfunded state mandates;39.5    (9) upon request of the legislature, review individual state agencies, boards, 39.6commissions, or councils for purposes of  making recommendations to the legislature on 39.7whether the group should continue or should be sunset;39.8(10) facilitate proposals for grants made by eligible applicants; and39.9(11) make recommendations on topics to the Legislative Audit Commission for 39.10program evaluations that are likely to result in recommendations that will improve the 39.11cost-effective delivery of government services.39.12The duties imposed under clauses (6) to (11) must be performed to the extent 39.13possible given existing resources. Each recommendation under clause (7) must, to 39.14the extent practicable, identify the specific unfunded state mandates to which the 39.15recommendation applies. The commissioners or directors of state agencies responsible for 39.16the promulgation or enforcement of the unfunded mandates addressed in clauses (5) to 39.17(11) shall assist the council in carrying out the council's duties under this section.39.18    Subd. 3.Additional coordinating functions.The council may also:39.19(1) serve as a clearinghouse for existing ideas and information from community 39.20leaders;39.21(2) provide a Web site where interested parties may share information and practices;39.22(3) receive recommendations from the legislative auditor concerning waivers and 39.23other initiatives within the council's jurisdiction;39.24(4) conduct research concerning innovation in service delivery and local government 39.25efficiency, innovation, and cooperation;39.26(5) facilitate regional dialogue concerning successful innovation and collaboration; 39.27and39.28(6) use its best efforts to maximize public involvement in its work, including the use 39.29of best practices in social media.39.30    Subd. 4.Staff.The council shall hire an executive director who serves as the state's 39.31chief innovation officer. The council may hire other staff or consultants as necessary to 39.32perform its duties. The commissioner of administration must provide administrative 39.33support services to the council.39.34    Subd. 5.Terms, compensation, and removal.Members serve at the pleasure of 39.35the appointing authority. Compensation of members is governed by section 15.0575, 39.36unless otherwise provided.40.1    Sec. 4. [465.7903] RULE AND LAW WAIVER REQUESTS.40.2    Subdivision 1.Generally.(a) Except as provided in paragraph (b), a local 40.3government unit or a nonprofit organization may request the Minnesota Innovation and 40.4Research Council to grant a waiver from one or more administrative rules or a temporary, 40.5limited exemption from enforcement of state procedural laws governing delivery of 40.6services by the local government unit or nonprofit organization. Two or more local 40.7government units may submit a joint application for a waiver or exemption under this 40.8section if they propose to cooperate in providing a service or program that is subject to the 40.9rule or law. Before a local unit of government may submit an application to the council, 40.10the governing body of the local government unit must approve, in concept, the proposed 40.11waiver or exemption at a meeting required to be public under chapter 13D. A waiver 40.12or exemption granted to a nonprofit organization under this section applies to services 40.13provided to all of the organization's clients.40.14(b) A school district that is granted a variance from rules of the commissioner of 40.15education under section 122A.163 need not apply to the council for a waiver of those rules 40.16under this section. A school district may not seek a waiver of rules under this section if 40.17the commissioner of education has authority to grant a variance to the rules under section 40.18122A.163. This paragraph does not preclude a school district from being included in a 40.19cooperative effort with another local government unit under this section.40.20    Subd. 2.Application.(a) A local government unit or nonprofit organization 40.21requesting a waiver of a rule or exemption from enforcement of a law under this section 40.22shall present a written application to the council. The application must include:40.23(1) identification of the service or program at issue;40.24(2) identification of the administrative rule or the law imposing a procedural 40.25requirement with respect to which the waiver or exemption is sought; and40.26(3) a description of the improved service outcome sought, including an explanation 40.27of the effect of the waiver or exemption in accomplishing that outcome.40.28(b) A local government unit submitting an application must provide a copy to the 40.29exclusive representative certified under section 179A.12 to represent employees who 40.30provide the service or program affected by the requested waiver or exemption.40.31    Subd. 3.Review process.(a) Upon receipt of an application, the council shall 40.32commence review of the application, as provided in this subdivision. The council shall 40.33dismiss an application if it finds that the application proposes a waiver of rules or 40.34exemption from enforcement of laws that would result in due process violations, violations 40.35of federal law or the state or federal constitution, or the loss of services to people who 40.36are entitled to them. If the council does not dismiss an application, the council must 41.1publish notice in the State Register before it acts on the application. The notice must list 41.2the name of the local government unit or nonprofit organization requesting the waiver or 41.3exemption, the service or program at issue, and the rule or law with respect to which the 41.4waiver of exemption is sought.41.5(b) The council shall determine whether a law from which an exemption for 41.6enforcement is sought is a procedural law, specifying how a local government unit or 41.7nonprofit organization is to achieve an outcome, rather than a substantive law prescribing 41.8the outcome or otherwise establishing policy. For the purposes of this section, "procedural 41.9law" does not include a statutory notice requirement. In making its determination, the 41.10council shall consider whether the law specifies such requirements as:41.11(1) who must deliver a service;41.12(2) where the service must be delivered;41.13(3) to whom and in what form reports regarding the service must be made; and41.14(4) how long or how often the service must be made available to a given recipient.41.15(c) If a member of the council also is a commissioner, a commissioner's designee, or 41.16the state auditor, or is employed by an agency with jurisdiction over a rule or law affected 41.17by an application, the member must not participate in the decision on the particular waiver 41.18or exemption.41.19(d) If the application is submitted by a local government unit or a nonprofit 41.20organization in the metropolitan area or the unit or nonprofit organization requests a 41.21waiver of a rule or temporary, limited exemptions from enforcement of a procedural 41.22law over which the Metropolitan Council or a metropolitan agency has jurisdiction, the 41.23council shall also transmit a copy of the application to the Metropolitan Council for 41.24review and comment. The Metropolitan Council shall report its comments to the council 41.25within 60 days of the date the application was transmitted to the Metropolitan Council. 41.26The Metropolitan Council may point out any resources or technical assistance it may be 41.27able to provide a local government unit or nonprofit organization submitting a request 41.28under this section.41.29(e) Within 15 days after receipt of the application, the council shall transmit a copy 41.30of it to the commissioner of each agency having jurisdiction over a rule or law from which 41.31a waiver or exemption is sought. The agency may mail a notice that it has received an 41.32application for a waiver or exemption to all persons who have registered with the agency 41.33under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or 41.34exemption is requested. If no agency has jurisdiction over the rule or law, the council shall 41.35transmit a copy of the application to the attorney general. The agency shall inform the 41.36council of its agreement with or objection to and grounds for objection to the waiver or 42.1exemption request within 60 days of the date when the application was transmitted to it. 42.2An agency's failure to respond under this paragraph is considered agreement to the waiver 42.3or exemption. The council shall decide whether to grant a waiver or exemption at its next 42.4regularly scheduled meeting following its receipt of an agency's response or the end of 42.5the 60-day response period. If consideration of an application is not concluded at that 42.6meeting, the matter may be carried over to the next meeting of the council. Interested 42.7persons may submit written comments and requests to present oral comments to the 42.8council on the waiver or exemption request up to the time of its vote on the application.42.9(f) If the exclusive representative of the affected employees of the requesting local 42.10government unit objects to the waiver or exemption request, it may inform the council 42.11of the objection to and the grounds for the objection to the waiver or exemption request 42.12within 60 days of the receipt of the application.42.13    Subd. 4.Hearing.If the agency or the exclusive representative does not agree 42.14with the waiver or exemption request, the council shall set a date for a hearing on the 42.15application. The hearing must be conducted informally at a meeting of the council. 42.16Persons representing the local government unit shall present their request for the waiver or 42.17exemption, and a representative from the agency shall explain the agency's objection to the 42.18waiver or exemption. Members of the council may request additional information from 42.19either party. The council may also request, either before or at the hearing, information 42.20or comments from representatives of business, labor, local governments, state agencies, 42.21consultants, and members of the public. If a member of the public requests to present 42.22comments or information at the hearing, the council must permit the member of the 42.23public an opportunity to present the comments or information. If necessary, the hearing 42.24may be continued at a subsequent council meeting. A waiver or exemption requires a 42.25majority vote of the council members. The council may modify the terms of the waiver or 42.26exemption request in arriving at the agreement required under subdivision 5.42.27    Subd. 5.Conditions of agreements.(a) If the council grants a request for a waiver 42.28or exemption, the council and the entity making the request shall enter into an agreement 42.29providing for the delivery of the service or program that is the subject of the application. 42.30The agreement must specify desired outcomes and the means of measurement by which 42.31the council will determine whether the outcomes specified in the agreement have been 42.32met. The agreement must specify the duration of the waiver or exemption. The duration of 42.33a waiver from an administrative rule may be for no less than two years and no more than 42.34four years, subject to renewal if both parties agree. An exemption from enforcement of a 42.35law terminates ten days after adjournment of the regular legislative session held during the 43.1calendar year following the year when the exemption is granted, unless the legislature has 43.2acted to extend or make permanent the exemption.43.3(b) If the council grants a waiver or exemption, it must report the waiver or 43.4exemption to the legislature, including the chairs of the governmental operations and 43.5appropriate policy committees in the house of representatives and senate, and the governor 43.6within 30 days.43.7(c) The council may reconsider or renegotiate the agreement if the rule or law 43.8affected by the waiver or exemption is amended or repealed during the term of the original 43.9agreement. A waiver of a rule under this section has the effect of a variance granted by 43.10an agency under section 14.055. The recipient of an exemption from enforcement of a 43.11procedural requirement in state law under this section is exempt from that law for the 43.12duration of the exemption. The council may require periodic reports from the recipient, or 43.13conduct investigations of the service or program.43.14    Subd. 6.Enforcement.If the council finds that the recipient of a waiver or an 43.15exemption has failed to comply with the terms of the agreement under subdivision 5, it 43.16may rescind the agreement. After an agreement is rescinded, the recipient is subject to the 43.17rules and laws covered by the agreement.43.18    Subd. 7.Access to data.If the recipient of a waiver or an exemption through a 43.19cooperative program under this section gains access to data that is classified as not public, 43.20the access to and use of the data for the recipient is governed by the same restrictions on 43.21access to and use of the data that apply to the unit that collected, created, received, or 43.22maintained the data.43.23    Sec. 5. [465.7904] WAIVERS OF STATE RULES; POLICIES.43.24    Subdivision 1.Application.A state agency may apply to the council for a waiver 43.25from:43.26(1) an administrative rule or policy adopted by the commissioner of management 43.27and budget that deals with the state personnel system;43.28(2) an administrative rule or policy of the commissioner of administration that 43.29deals with the state procurement system; or43.30(3) a policy of the commissioner of management and budget  that deals with the 43.31state accounting system.43.32Two or more state agencies may submit a joint application. A waiver application 43.33must identify the rule or policy at issue, and must describe the improved outcome sought 43.34through the waiver.44.1    Subd. 2.Review process.(a) The council shall review all applications submitted 44.2under this section. The council shall dismiss an application if it finds that the application 44.3proposes a waiver that would result in due process violations, violations of federal law 44.4or the state or federal constitution, or the loss of services to people who are entitled to 44.5them. If a proposed waiver would violate the terms of a collective bargaining agreement 44.6effective under chapter 179A, the waiver is not effective without the consent of the 44.7exclusive representative that is a party to the agreement. The council may approve a 44.8waiver only if the council determines that if the waiver is granted: (1) services can 44.9be provided in a more efficient or effective manner; and (2) services related to human 44.10resources must be provided in a manner consistent with section 43A.01. In the case of a 44.11waiver from a policy of the commissioner of management and budget, the council may 44.12approve the waiver only if it determines that services will be provided in a more efficient 44.13or effective manner and that state funds will be adequately accounted for and safeguarded 44.14in a manner that complies with generally accepted government accounting principles.44.15(b) Within 15 days of receipt of the application, the council shall send a copy of the 44.16application to: (1) the agency whose rule or policy is involved; and (2) all exclusive 44.17representatives who represent employees of the agency requesting the waiver. The agency 44.18whose rule or policy is involved may mail a copy of the application to all persons who 44.19have registered with the agency under section 14.14, subdivision 1a.44.20(c) The agency whose rule or policy is involved, or an exclusive representative, shall 44.21notify the council of its agreement with or objection to and grounds for objection to the 44.22waiver within 60 days of the date when the application was transmitted to the agency or 44.23the exclusive representative. An agency's or exclusive representative's failure to respond 44.24under this paragraph is considered agreement to the waiver.44.25(d) If the agency or the exclusive representative objects to the waiver, the council 44.26shall schedule a meeting at which the agency requesting the waiver may present its case 44.27for the waiver and the objecting party may respond. The council shall decide whether 44.28to grant a waiver at its next regularly scheduled meeting following its receipt of an 44.29agency's response, or the end of the 60-day response period, whichever occurs first. If 44.30consideration of an application is not concluded at the meeting, the matter may be carried 44.31over to the next meeting of the council. Interested persons may submit written comments 44.32to the council on the waiver request.44.33(e) If the council grants a request for a waiver, the council and the agency requesting 44.34the waiver shall enter into an agreement relating to the outcomes desired as a result of the 44.35waiver and the means of measurement to determine whether those outcomes have been 44.36achieved with the waiver. The agreement must specify the duration of the waiver, which 45.1must be for at least two years and not more than four years. If the council determines that 45.2an agency that has received a waiver is failing to comply with the terms of the agreement, 45.3the council may rescind the agreement.45.4    Subd. 3.Participation.If a waiver request involves a rule or policy adopted by an 45.5official specified in section 465.7902, subdivision 1, clauses (3) to (7), that official may 45.6not participate in the evaluation of that waiver request.45.7    Sec. 6. [465.7905] INNOVATION AND REDESIGN GRANTS.45.8    Subdivision 1.Application.One or more local units of government, an association 45.9of local governments, the Metropolitan Council, a local unit of government acting in 45.10conjunction with an organization or a state agency, an organization established by two 45.11or more local units of government under a joint powers agreement, or a not-for-profit 45.12organization may apply to the Minnesota Innovation and Research Council for a grant 45.13to be used to: (1) develop models for service redesign; or (2) meet the start-up costs 45.14of providing shared services or functions. Agreements solely to make joint purchases 45.15do not qualify for grants. The application must specify a nonstate funding source for 45.1625 percent of the total cost of the proposal. The application to the council must state 45.17what other sources of funding have been considered by the local units of government to 45.18implement the project and explain why it is not possible to complete the project without 45.19assistance from the council. The council may not award a grant if it determines that the 45.20local units of government could complete the project without council assistance or if it 45.21determines the applicant has not specified a nonstate funding source for 25 percent of 45.22the total cost. A copy of the application must be provided by the units to the exclusive 45.23representatives certified under section 179A.12 to represent employees who provide the 45.24service or program affected by the application.45.25    Subd. 2.Proposals.(a) Proposed models for service redesign may provide options 45.26to local governments, neighborhood or community organizations, other not-for-profit 45.27organizations, or individuals to redesign service delivery. In awarding grants under this 45.28paragraph, the council must consider whether the proposal:45.29(1) expands consumer choices and opportunities;45.30(2) shifts government toward an expanded role as a purchaser, rather than a provider, 45.31of services;45.32(3) reduces administrative costs through statewide or regional contracting, or related 45.33administrative efficiencies;45.34(4) reduces administrative costs through the accumulation of multiple related 45.35services into a single contract with one provider, or related administrative efficiencies;46.1(5) fosters entrepreneurial leadership in the public sector; and46.2(6) increases value to the taxpayer or results per dollar spent.46.3(b) A proposal for a grant for shared services or functions must include plans to 46.4fully integrate a service or function provided by two or more local government units. 46.5The proposal must include how value to the taxpayer or results per dollar spent will be 46.6impacted. 46.7    Subd. 3.Requirements.A copy of the work product for which the grant was 46.8provided must be furnished to the council upon completion, and the council may 46.9disseminate it to other local units of government or interested groups. If the council finds 46.10that the work was not completed or implemented according to the terms of the grant 46.11agreement, it may require the grantee to repay all or a portion of the grant. The council 46.12shall award grants on the basis of each qualified applicant's score under the scoring 46.13system in section 465.7906. The amount of a grant under subdivision 2, paragraph (a), 46.14may not exceed $250,000. The amount of a grant under subdivision 2, paragraph (b), 46.15may not exceed $100,000.46.16    Sec. 7. [465.7906] SCORING SYSTEM.46.17In deciding whether to award a grant under section 465.7905, the council shall 46.18use the following scoring system:46.19(1) Up to 15 points must be awarded to reflect the extent to which the application 46.20demonstrates creative thinking, careful planning, cooperation, involvement of the clients 46.21of the affected service, and commitment to persist through challenges.46.22(2) Up to 25 points must be awarded to reflect the extent to which the proposed 46.23project is likely to improve the quality of the service, increase value to the taxpayers or 46.24results per dollar spent, and to have benefits for other local governments.46.25(3) Up to 15 points must be awarded to reflect the extent to which the application's 46.26budget provides sufficient detail, maximizes the use of state funds, documents the need 46.27for financial assistance, commits to local financial support, and limits expenditures to 46.28essential activities.46.29(4) Up to 15 points must be awarded to reflect the extent to which the application 46.30reflects the statutory goal of the grant program.46.31(5) Up to 15 points must be awarded to reflect the merit of the proposed project and 46.32the extent to which it warrants the state's financial participation.46.33(6) Up to five points must be awarded to reflect the cost to benefit ratio projected 46.34for the proposed project.47.1(7) Up to five points must be awarded to reflect the number of government units 47.2participating in the proposal.47.3(8) Up to five points must be awarded to reflect the minimum length of time the 47.4application commits to implementation.47.5    Sec. 8. [465.7907] REPAYMENT OF GRANTS.47.6    Subdivision 1.Repayment procedures.Without regard to whether a grant recipient 47.7offered to repay the grant in its original application, as part of a grant awarded under 47.8section 465.7905, the council may require the grant recipient to repay all or part of the 47.9grant if the council determines the project funded by the grant resulted in an actual savings 47.10for the participating local units of government. The grant agreement must specify how the 47.11savings are to be determined and the period of time over which the savings will be used 47.12to calculate a repayment requirement. The repayment of grant money under this section 47.13must not exceed an amount equal to the total savings achieved through the implementation 47.14of the project.47.15    Subd. 2.Bonus points.In addition to the points awarded to competitive grant 47.16applications under section 465.7906, the council shall award additional points to any 47.17applicant that projects a potential cost savings through the implementation of its project 47.18and offers to repay part or all of the grant under the formula in subdivision 1.47.19    Subd. 3.Use of repayment revenue.All grant money repaid to the council under 47.20this section is appropriated to the council for additional grants authorized by section 47.21465.7905.47.22    Sec. 9. [465.805] POLICY INNOVATION AND RESEARCH.47.23    Subdivision 1.Research topics.The council shall periodically select policy 47.24innovation topics suitable for review and analysis by a consortium of independent 47.25organizations. Topics may include general or specific functions of state government. The 47.26council shall give primary consideration to areas of concern where a comprehensive 47.27review and analysis of available research is likely to yield recommendations for policy 47.28changes that will provide significant efficiencies and improvements in the operation of 47.29state government and an increase in value to the taxpayer. Legislators and legislative 47.30committees may provide the council with recommendations for topics. The council shall 47.31make the final determination regarding the selection of topics under this section.47.32    Subd. 2.Request for proposal process.(a) After making the determination of a 47.33research topic under subdivision 1, the council shall prepare a request for proposal relating 47.34to the topic that specifies:48.1(1) the precise topic and scope of the research required for the report to the 48.2commission;48.3(2) the deadlines for the response to the request for proposal and for the subsequent 48.4report; and48.5(3) any other restrictions or guidelines required by the commission.48.6The council shall make the request for proposal publicly available and must 48.7review responses from any interested party. A group of individuals or organizations 48.8may submit a response. The council may encourage the development of a collaborative 48.9design lab containing a cross-section of researchers and public sector designers from 48.10various nonprofits, businesses, foundations, and education institutions to respond to the 48.11request for proposal.48.12(b) After the deadline for submission of responses has expired, the council must hold 48.13a hearing to consider all submissions. The council shall consider the following factors in 48.14selecting a response to the request for proposal:48.15(1) the experience and training of individuals and organizations who will prepare the 48.16report to the commission;48.17(2) the reliability and credibility of individuals and organizations who will prepare 48.18the report;48.19(3) the proposed method of research; and48.20(4) the resources available for the preparation of the report.48.21(c) After consideration and hearing of the responses to the request for proposal, the 48.22council may:48.23(1) select a submission;48.24(2) revise the original request for proposal and extend the deadline for responses; or48.25(3) terminate the request for proposal process for the selected topic.48.26The chief innovation officer shall periodically communicate with the researchers 48.27to make sure they are focused on answering the questions outlined in the request for 48.28proposals.48.29    Subd. 3.Reports to council.The council shall hold a hearing to receive a report 48.30prepared under this section and shall ensure that the governor and the relevant committees 48.31in the legislature are provided with notice of the report and an opportunity to review the 48.32report, including an opportunity for additional hearings.48.33    Sec. 10. [465.808] RECEIPTS; APPROPRIATION.48.34(a) The council may charge a fee for the use of services provided by the council's 48.35staff. The receipts from fees charged under this section are deposited in a special revenue 49.1account and appropriated to the council for services provided under sections 465.7901 to 49.2465.808.49.3(b) The council may accept gifts and grants. Money received under this paragraph 49.4is deposited in a special revenue account and appropriated to the council for services 49.5provided under sections 465.7901 to 465.808.49.6    Sec. 11. [465.809] GUARANTEEING INCREASED VALUE TO THE 49.7TAXPAYER.49.8    Subdivision 1.Report.(a) The council shall report by January 15 each year to the 49.9governor and appropriate committees of the house of representatives and senate on its 49.10activities. The report shall include the amount of the council's net spending, the amount of 49.11savings and the increased outcomes to the taxpayer that was identified by the council, and 49.12the actual documented savings to state and local governments. Entities receiving grants 49.13or waivers from the council must document and verify savings to the taxpayer from the 49.14previous year's budgets.49.15    (b) The report submitted on January 15, 2014, must: (1) demonstrate that council 49.16recommendations or actions have resulted in savings of at least $3 for every $1 49.17appropriated to the council through June 30, 2013; and (2) contain recommendations for 49.18the future that the council believes will result in at least $20 of savings for every $1 that 49.19will be appropriated to the council in the future. If the report submitted on January 15, 49.202014, does not comply with this paragraph, the council expires on June 30, 2014.49.21    Subd. 2.Savings and increased value.The council must make every effort to 49.22obtain $3 in savings and show increased value to the taxpayer for each net state dollar 49.23spent by the council.49.24    Subd. 3.Innovative practices.The council shall promote and drive innovative 49.25practices and must make annual recommendations to the legislature. One or all of these 49.26recommendations may be in partnership with individuals, foundations, nonprofits, or 49.27businesses. The council may make endorsements of proposals of individuals, foundations, 49.28nonprofits, or businesses when making recommendations. The council must make annual 49.29recommendations to:49.30(1) recommend at least $20 in savings and show increased outcomes to the taxpayer 49.31for each net state dollar spent by the council. These savings may be spread out over 49.32various budget items;49.33(2) recommend policy changes that will quantifiably improve desired outcome 49.34attainment to the taxpayer as compared to dollars spent. This shall not be limited to 49.35efficiency but may also include developing new approaches to achieve desired outcomes;50.1(3) highlight existing innovative practices or partnerships in the state; and 50.2(4) recommend innovative models, which may include state and local government 50.3structural redesign, from across the country to the legislature; highlight innovative 50.4practices from past or contemporary reports; recommend evidence-based service delivery 50.5methods for this state; or recommend theory-based working models of approaches to 50.6policy.50.7    Sec. 12. [465.8091] SUNSET.50.8    Sections 465.7901, 465.7902, 465.7903, 465.7904, 465.7905, 465.7906, 465.7907, 50.9465.805, 465.808, and 465.809 expire  June 30, 2018.50.10    Sec. 13. APPROPRIATIONS.50.11$50,000 is appropriated from the general fund for the fiscal year ending June 30, 50.122011, to the Minnesota Innovation and Research Council for the following purposes:50.13(1) operation and administration of the council;50.14(2) grants for models for service redesign;50.15(3) grants for shared services and functions;50.16(4) policy innovation and research; and50.17(5) the strategic plan report under article 2, section 1.50.18The appropriations in this section are contingent on receiving a dollar-for-dollar 50.19match from private sources. This is a onetime appropriation.50.20    Sec. 14.  REPEALER.50.21Minnesota Statutes 2008, section 6.80, is repealed.