1.1 	A bill for an act
1.2 	relating to state government financing; establishing the Sunset Advisory 
1.3 	Commission; prohibiting legislative liaison positions in state agencies and 
1.4 	departments; eliminating assistant commissioner positions and reducing deputy 
1.5 	commissioner positions; changing provisions of performance data required 
1.6 	in the budget proposal; requiring specific funding information for forecasted 
1.7 	programs; implementing zero-based budgeting principles; implementing federal 
1.8 	offset program for collection of debts owed to state agencies; providing a state 
1.9 	employee salary freeze; providing an HSA-eligible high-deductible health plan 
1.10 	for state employees; requiring a 15 percent reduction in the state workforce; 
1.11 	requiring a verification audit for dependent eligibility for state employee health 
1.12 	insurance; requiring a request for proposals for recommendations on state 
1.13 	building efficiency, state vehicle management, tax fraud prevention, and strategic 
1.14 	sourcing; requiring reports; appropriating money;amending Minnesota Statutes 
1.15 	2010, sections 15.057; 15.06, subdivision 8; 16A.10, subdivisions 1a, 1b, 1c; 
1.16 	16A.103, subdivision 1a; 16A.11, subdivision 3; 16B.03; 43A.08, subdivision 
1.17 	1; 43A.23, subdivision 1; 45.013; 84.01, subdivision 3; 116.03, subdivision 1; 
1.18 	116J.01, subdivision 5; 116J.035, subdivision 4; 174.02, subdivision 2; 241.01, 
1.19 	subdivision 2; 270C.41; Laws 2010, chapter 215, article 6, section 4; proposing 
1.20 	coding for new law in Minnesota Statutes, chapters 16A; 16D; 43A; proposing 
1.21 	coding for new law as Minnesota Statutes, chapter 3D; repealing Minnesota 
1.22 	Statutes 2010, section 197.585, subdivision 5.
1.23 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.24 	ARTICLE 1
1.25 	STATE GOVERNMENT APPROPRIATIONS

1.26	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
1.27 	The sums shown in the columns marked "Appropriations" are appropriated to the 
1.28 	agencies and for the purposes specified in this article. The appropriations are from the 
1.29 	general fund, or another named fund, and are available for the fiscal years indicated 
1.30 	for each purpose. The figures "2012" and "2013" used in this article mean that the 
1.31 	appropriations listed under them are available for the fiscal year ending June 30, 2012, or 
2.1 	June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal 
2.2 	year 2013. "The biennium" is fiscal years 2012 and 2013. 

2.3				APPROPRIATIONS
	
2.4				Available for the Year
	
2.5				Ending June 30
	
2.6					2012
		2013

2.7	Sec. 2. LEGISLATURE

2.8	Subdivision 1.Total Appropriation
 	$
	61,732,000
	$
	61,732,000

2.9	Appropriations by Fund
	
2.10		2012
	2013
	
2.11	General
	61,554,000
	61,554,000
	
2.12	Health Care Access
	178,000
	178,000
	
2.13 	The amounts that may be spent for each 
2.14 	purpose are specified in the following 
2.15 	subdivisions.

2.16	Subd. 2.Senate
 		20,733,000
		20,733,000

2.17	Subd. 3.House of Representatives
 		27,874,000
		27,874,000

2.18	Subd. 4.Legislative Coordinating Commission
 		13,125,000
		13,125,000

2.19	Appropriations by Fund
	
2.20	General
	12,947,000
	12,947,000
	
2.21	Health Care Access 
	178,000
	178,000
	
2.22 	$120,000 the first year and $120,000 the 
2.23 	second year are for the support of the 
2.24 	Minnesota Sunset Advisory Commission 
2.25 	established under Minnesota Statutes, 
2.26 	chapter 3D.

2.27
2.28	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	2,859,000
	$
	2,859,000
	
2.29 	(a) By September 1 of each year, the 
2.30 	commissioner of management and budget 
2.31 	shall report to the chairs and ranking 
2.32 	minority members of the senate State 
2.33 	Government Innovation and Veterans Affairs 
2.34 	Committee and the house of representatives 
3.1 	State Government Finance Committee any 
3.2 	personnel costs incurred by the Offices of the 
3.3 	Governor and Lieutenant Governor that were 
3.4 	supported by appropriations to other agencies 
3.5 	during the previous fiscal year. The Office 
3.6 	of the Governor shall inform the chairs and 
3.7 	ranking minority members of the committees 
3.8 	before initiating any interagency agreements.
3.9 	(b) During the biennium ending June 30, 
3.10 	2013, the Office of the Governor may not 
3.11 	receive payments of more than $670,000 
3.12 	each fiscal year from other executive 
3.13 	agencies under Minnesota Statutes, section 
3.14 	15.53, to support personnel costs incurred 
3.15 	by the office. Payments received under this 
3.16 	paragraph must be deposited in a special 
3.17 	revenue account. Money in the account is 
3.18 	appropriated to the Office of the Governor. 
3.19 	The authority in this paragraph supersedes 
3.20 	other law enacted in 2011 that limits the 
3.21 	ability of the office to enter into agreements 
3.22 	relating to personnel costs with other 
3.23 	executive branch agencies or prevents the use 
3.24 	of appropriations made to other agencies for 
3.25 	agreements with the office under Minnesota 
3.26 	Statutes, section 15.53.

3.27	Sec. 4. STATE AUDITOR
 	$
	7,280,000
	$
	7,280,000
	
3.28 	$5,138,000 of this appropriation each year is 
3.29 	for the Audit Practice Division.

3.30	Sec. 5. ATTORNEY GENERAL
 	$
	21,152,000
	$
	21,152,000

3.31	Appropriations by Fund
	
3.32		2012
	2013
	
3.33	General
	18,873,000
	18,873,000
	
3.34
3.35	State Government 
Special Revenue
	1,884,000
	1,884,000
	
4.1	Environmental
	145,000
	145,000
	
4.2	Remediation
	250,000
	250,000
	
4.3 	Of this appropriation, $65,000 in the first 
4.4 	year and $65,000 in the second year is 
4.5 	for transfer to the commissioner of public 
4.6 	safety for a grant to the Minnesota County 
4.7 	Attorneys Association for prosecutor and law 
4.8 	enforcement training.

4.9	Sec. 6. SECRETARY OF STATE
 	$
	4,810,000
	$
	4,810,000
	
4.10 	Any funds available in the account 
4.11 	established in Minnesota Statutes, section 
4.12 	5.30, pursuant to the Help America Vote Act, 
4.13 	are appropriated for the purposes and uses 
4.14 	authorized by federal law.

4.15
4.16	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	689,000
	$
	689,000

4.17	Sec. 8. INVESTMENT BOARD
 	$
	139,000
	$
	139,000

4.18	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,634,000
	$
	7,504,000

4.19	Appropriations by Fund
	
4.20		2012
	2013
	
4.21	General
	384,000
	254,000
	
4.22
4.23	Workers' 
Compensation
	7,250,000
	7,250,000
	
4.24 	$130,000 in the first year is for the cost 
4.25 	of considering complaints filed under 
4.26 	Minnesota Statutes, section 211B.32. Until 
4.27 	June 30, 2013, the chief administrative 
4.28 	law judge may not make any assessment 
4.29 	against a county or counties under Minnesota 
4.30 	Statutes, section 211B.37. Any amount of 
4.31 	this appropriation that remains unspent at 
4.32 	the end of the biennium must be canceled 
4.33 	to the general account of the state elections 
5.1 	campaign fund. The base for fiscal year 2014 
5.2 	is $130,000, to be available for the biennium, 
5.3 	under the same terms.

5.4
5.5	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	4,635,000
	$
	4,635,000
	
5.6 	During the biennium ending June 30, 2013, 
5.7 	the office must not charge fees to a public 
5.8 	noncommercial educational television 
5.9 	broadcast station for access to the state 
5.10 	information infrastructure.

5.11	Sec. 11. ADMINISTRATION

5.12	Subdivision 1.Total Appropriation
 	$
	17,245,000
	$
	17,245,000
	
5.13 	The amounts that may be spent for each 
5.14 	purpose are specified in the following 
5.15 	subdivisions.

5.16	Subd. 2.Government and Citizen Services
 		14,310,000
		14,310,000
	
5.17 	 $74,000 the first year and $74,000 the second 
5.18 	year are for the Council on Developmental 
5.19 	Disabilities.
5.20 	 $8,158,000 the first year and $8,158,000 
5.21 	the second year are for office space costs of 
5.22 	the legislature and veterans organizations, 
5.23 	ceremonial space, and statutorily free space.
5.24 	The remaining balances in the: (1) 
5.25 	resource recovery account; (2)  office supply 
5.26 	connections account; and (3) reduce savings 
5.27 	monitoring system account are transferred to 
5.28 	the general fund.

5.29	Subd. 3.Administrative Management Support
 		1,460,000
		1,460,000

5.30	Subd. 4.Public Broadcasting
 		1,475,000
		1,475,000
	
6.1 	(a) The appropriations under this section are 
6.2 	to the commissioner of administration for the 
6.3 	purposes specified.
6.4 	(b) $890,000 the first year and $890,000 
6.5 	the second year are for matching grants for 
6.6 	public television.
6.7 	(c) $152,000 the first year and $152,000 
6.8 	the second year are for public television 
6.9 	equipment grants. Equipment or matching 
6.10 	grant allocations shall be made after 
6.11 	considering the recommendations of the 
6.12 	Minnesota Public Television Association.
6.13 	(d) $264,000 the first year and $264,000 the 
6.14 	second year are for community service grants 
6.15 	to public educational radio stations.
6.16 	(e) $92,000 the first year and $92,000 the 
6.17 	second year are for equipment grants to 
6.18 	public educational radio stations.
6.19 	(f) The grants in paragraphs (d) and (e) 
6.20 	must be allocated after considering the 
6.21 	recommendations of the Association of 
6.22 	Minnesota Public Educational Radio Stations 
6.23 	under Minnesota Statutes, section 129D.14.
6.24 	(g) $77,000 the first year and $77,000 the 
6.25 	second year are for grants to Minnesota 
6.26 	Public Radio, Inc., for upgrades to 
6.27 	Minnesota's Emergency Alert and AMBER 
6.28 	Alert Systems.
6.29 	(h) Any unencumbered balance remaining 
6.30 	the first year for grants to public television 
6.31 	and radio stations does not cancel and is 
6.32 	available for the second year.

7.1
7.2
7.3	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	325,000
	$
	325,000

7.4
7.5	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	17,073,000
	$
	16,823,000
	
7.6 	$600,000 the first year and $600,000 the 
7.7 	second year are for zero-based budgeting 
7.8 	activities.
7.9 	$250,000 the first year is for actuarial studies 
7.10 	required for the early retirement incentives 
7.11 	authorized under Minnesota Statutes, section 
7.12 	43A.347. This is a onetime appropriation.

7.13	Sec. 14. REVENUE

7.14	Subdivision 1.Total Appropriation
 	$
	124,716,000
	$
	124,766,000

7.15	Appropriations by Fund
	
7.16		2012
	2013
	
7.17	General
	120,481,000
	120,531,000
	
7.18	Health Care Access
	1,749,000
	1,749,000
	
7.19
7.20	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
7.21	Environmental
	303,000
	303,000
	
7.22 	The amounts that may be spent for each 
7.23 	purpose are specified in subdivisions 2 and 3.
7.24 	The commissioner must implement 
7.25 	any reduction in funding by reducing 
7.26 	administrative support functions before any 
7.27 	reduction to compliance and enforcement 
7.28 	programs.

7.29	Subd. 2.Tax System Management
 		98,742,000
		98,742,000

7.30	Appropriations by Fund
	
7.31	General
	94,507,000
	94,557,000
	
7.32	Health Care Access
	1,749,000
	1,749,000
	
7.33
7.34	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
7.35	Environmental
	303,000
	303,000

8.1	Subd. 3.Debt Collection Management
 		25,974,000
		25,974,000

8.2	Sec. 15. GAMBLING CONTROL
 	$
	2,740,000
	$
	2,740,000
	
8.3 	These appropriations are from the lawful 
8.4 	gambling regulation account in the special 
8.5 	revenue fund.

8.6	Sec. 16. RACING COMMISSION
 	$
	899,000
	$
	899,000
	
8.7 	These appropriations are from the racing 
8.8 	and card playing regulation accounts in the 
8.9 	special revenue fund.

8.10	Sec. 17. AMATEUR SPORTS COMMISSION
 	$
	248,000
	$
	248,000

8.11	Sec. 18. EXPLORE MINNESOTA TOURISM
 	$
	7,909,000
	$
	7,809,000
	
8.12 	(a) Of this amount, $10,000 each year is for a 
8.13 	grant to the Upper Minnesota Film Office.
8.14 	(b)(1) To develop maximum private sector 
8.15 	involvement in tourism, $500,000 the first 
8.16 	year and $500,000 the second year must 
8.17 	be matched by Explore Minnesota Tourism 
8.18 	from nonstate sources. Each $1 of state 
8.19 	incentive must be matched with $3 of private 
8.20 	sector funding. Cash match is defined as 
8.21 	revenue to the state or documented cash 
8.22 	expenditures directly expended to support 
8.23 	Explore Minnesota Tourism programs. Up 
8.24 	to one-half of the private sector contribution 
8.25 	may be in-kind or soft match. The incentive 
8.26 	in the first year shall be based on fiscal 
8.27 	year 2011 private sector contributions. The 
8.28 	incentive in the second year will be based on 
8.29 	fiscal year 2012 private sector contributions. 
8.30 	This incentive is ongoing.
9.1 	(2) Funding for the marketing grants is 
9.2 	available either year of the biennium. 
9.3 	Unexpended grant funds from the first year 
9.4 	are available in the second year.
9.5 	(3) Unexpended money from the general 
9.6 	fund appropriations made under this section 
9.7 	does not cancel but must be placed in a 
9.8 	special marketing account for use by Explore 
9.9 	Minnesota Tourism for additional marketing 
9.10 	activities.
9.11 	(c) $276,000 the first year and $276,000 the 
9.12 	second year are for the Minnesota Film and 
9.13 	TV Board. The appropriation in each year 
9.14 	is available only upon receipt by the board 
9.15 	of $1 in matching contributions of money or 
9.16 	in-kind contributions from nonstate sources 
9.17 	for every $3 provided by this appropriation, 
9.18 	except that each year up to $50,000 is 
9.19 	available on July 1 even if the required 
9.20 	matching contribution has not been received 
9.21 	by that date.
9.22 	(d) $100,000 the first year is for a grant to the 
9.23 	Minnesota Film and TV Board for the film 
9.24 	jobs production program under Minnesota 
9.25 	Statutes, section 116U.26. This appropriation 
9.26 	is available until expended.

9.27
9.28	Sec. 19. MINNESOTA HISTORICAL 
SOCIETY

9.29	Subdivision 1.Total Appropriation
 	$
	20,141,000
	$
	20,037,000
	
9.30 	The amounts that may be spent for each 
9.31 	purpose are specified in the following 
9.32 	subdivisions.

9.33	Subd. 2.Education and Outreach
 		11,336,000
		11,336,000
	
10.1 	Notwithstanding Minnesota Statutes, section 
10.2 	138.668, the Minnesota Historical Society 
10.3 	may not charge a fee for its general tours at 
10.4 	the Capitol, but may charge fees for special 
10.5 	programs other than general tours.

10.6	Subd. 3.Preservation and Access
 		8,479,000
		8,479,000

10.7	Subd. 4.Fiscal Agent

10.8	(a) Minnesota International Center
		39,000
		39,000

10.9	(b) Minnesota Air National Guard Museum
		14,000
		-0-

10.10	(c) Minnesota Military Museum
		90,000
		-0-

10.11	(d) Farmamerica
		115,000
		115,000

10.12	(e) Hockey Hall of Fame
		68,000
		68,000

10.13	(f) Balances Forward
					
10.14 	Any unencumbered balance remaining in 
10.15 	this subdivision the first year does not cancel 
10.16 	but is available for the second year of the 
10.17 	biennium.

10.18	Subd. 5.Fund Transfer
 					
10.19 	The Minnesota Historical Society may 
10.20 	reallocate funds appropriated in and between 
10.21 	subdivisions 2 and 3 for any program 
10.22 	purposes and the appropriations are available 
10.23 	in either year of the biennium.

10.24	Sec. 20. BOARD OF THE ARTS

10.25	Subdivision 1.Total Appropriation
 	$
	6,672,000
	$
	6,672,000
	
10.26 	The amounts that may be spent for each 
10.27 	purpose are specified in the following 
10.28 	subdivisions.

10.29	Subd. 2.Operations and Services
 		504,000
		504,000

10.30	Subd. 3.Grants Program
 		4,266,000
		4,266,000

10.31	Subd. 4.Regional Arts Councils
 		1,902,000
		1,902,000

11.1
11.2	Sec. 21. MINNESOTA HUMANITIES 
CENTER
 	$
	1,350,000
	$
	1,350,000
	
11.3 	$246,000 the first year and $246,000 the 
11.4 	second year are for a grant to the Council 
11.5 	on Black Minnesotans established under 
11.6 	Minnesota Statutes, section 3.9225, for the 
11.7 	duties of the council.
11.8 	$214,000 the first year and $214,000 the 
11.9 	second year are for a grant to the Council on 
11.10 	Asian-Pacific Minnesotans established under 
11.11 	Minnesota Statutes, section 3.9226, for the 
11.12 	duties of the council.
11.13 	$231,000 the first year and $231,000 the 
11.14 	second year are for a grant to the Council 
11.15 	on the Affairs of Chicano/Latino People 
11.16 	established under Minnesota Statutes, section 
11.17 	3.9223, for the duties of the council.
11.18 	$422,000 the first year and $422,000 the 
11.19 	second year are for a grant to the Indian 
11.20 	Affairs Council established under Minnesota 
11.21 	Statutes, section 3.922, for the duties of the 
11.22 	council. The grant must include $167,000 
11.23 	each year for a cultural resources specialist 
11.24 	to assist the council with the duties assigned 
11.25 	to it relating to Indian burial grounds under 
11.26 	Minnesota Statutes, section 307.08.
11.27 	By January 15 of each year, each council 
11.28 	receiving a grant under this section shall 
11.29 	submit a report to the chairs and ranking 
11.30 	minority members of the legislative 
11.31 	committees with jurisdiction over the 
11.32 	council. The report must describe the results 
11.33 	obtained with the use of the grant, including 
11.34 	a description and evaluation of how the 
12.1 	council accomplished its statutory duties in 
12.2 	the preceding year.

12.3	Sec. 22. PUBLIC FACILITIES AUTHORITY
 	$
	82,000
	$
	82,000
	
12.4 	For the small community wastewater 
12.5 	treatment program under Minnesota Statutes, 
12.6 	chapter 446A.

12.7
12.8	Sec. 23. SCIENCE MUSEUM OF 
MINNESOTA
 	$
	1,009,000
	$
	1,009,000

12.9	Sec. 24. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
12.10 	These appropriations are to be spent by the 
12.11 	commissioner of management and budget 
12.12 	according to Minnesota Statutes, section 
12.13 	3.736, subdivision 7. If the appropriation for 
12.14 	either year is insufficient, the appropriation 
12.15 	for the other year is available for it.

12.16
12.17	Sec. 25. MINNESOTA STATE RETIREMENT 
SYSTEM

12.18	Subdivision 1.Total Appropriation
 	$
	3,122,000
	$
	3,185,000
	
12.19 	The amounts that may be spent for each 
12.20 	purpose are specified in the following 
12.21 	subdivisions.

12.22	Subd. 2.Legislators
 		2,650,000
		2,704,000
	
12.23 	Under Minnesota Statutes, sections 3A.03, 
12.24 	subdivision 2; 3A.04, subdivisions 3 and 4; 
12.25 	and 3A.115.

12.26	Subd. 3. Constitutional Officers
 		472,000
		481,000
	
12.27 	Under Minnesota Statutes, section 352C.001.
12.28 	If an appropriation in this section for either 
12.29 	year is insufficient, the appropriation for the 
12.30 	other year is available for it.

12.31	Sec. 26. MERF DIVISION ACCOUNT
 	$
	22,750,000
	$
	22,750,000
	
13.1 	These amounts are estimated to be needed 
13.2 	under Minnesota Statutes, section 353.505.

13.3
13.4	Sec. 27. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,454,000
	$
	15,454,000
	
13.5 	The amounts estimated to be needed are as 
13.6 	follows:
13.7 	(a) Special direct state aid.  $12,954,000 the 
13.8 	first year and $12,954,000 the second year 
13.9 	are for special direct state aid authorized 
13.10 	under Minnesota Statutes, section 354A.12, 
13.11 	subdivisions 3a and 3c.
13.12 	(b) Special direct state matching aid. 
13.13 	 $2,500,000 the first year and $2,500,000 
13.14 	the second year are for special direct state 
13.15 	matching aid authorized under Minnesota 
13.16 	Statutes, section 354A.12, subdivision 3b.

13.17
13.18	Sec. 28. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,827,000
	$
	2,827,000
	
13.19 	The amounts estimated to be needed for 
13.20 	special direct state aid to first class city 
13.21 	teachers retirement funds authorized under 
13.22 	Minnesota Statutes, section 354A.12, 
13.23 	subdivisions 3a and 3c.

13.24
13.25	Sec. 29. DULUTH TEACHERS 
RETIREMENT FUND
 	$
	346,000
	$
	346,000
	
13.26 	The amounts estimated to be needed for 
13.27 	special direct state aid to first class city 
13.28 	teachers retirement funds authorized under 
13.29 	Minnesota Statutes, section 354A.12, 
13.30 	subdivisions 3a and 3c.

13.31	Sec. 30. STATE LOTTERY
 					
13.32 	Notwithstanding Minnesota Statutes, section 
13.33 	349A.10, subdivision 3, the operating budget 
14.1 	must not exceed $29,000,000 in fiscal year 
14.2 	2012 and $29,000,000 in fiscal year 2013.

14.3
14.4	Sec. 31. GENERAL CONTINGENT 
ACCOUNTS
 	$
	1,000,000
	$
	500,000

14.5	Appropriations by Fund
	
14.6		2012
	2013
	
14.7	General
	500,000
	-0-
	
14.8
14.9	State Government 
Special Revenue
	400,000
	400,000
	
14.10
14.11	Workers' 
Compensation
	100,000
	100,000
	
14.12 	(a) The appropriations in this section 
14.13 	may only be spent with the approval of 
14.14 	the governor after consultation with the 
14.15 	Legislative Advisory Commission pursuant 
14.16 	to Minnesota Statutes, section 3.30.
14.17 	(b) If an appropriation in this section for 
14.18 	either year is insufficient, the appropriation 
14.19 	for the other year is available for it.
14.20 	(c) If a contingent account appropriation 
14.21 	is made in one fiscal year, it should be 
14.22 	considered a biennial appropriation.

14.23 	Sec. 32. PROBLEM GAMBLING APPROPRIATION.
 14.24 	$225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from 
14.25 	the lottery prize fund to the Gambling Control Board for a grant to the state affiliate 
14.26 	recognized by the National Council on Problem Gambling. The affiliate must provide 
14.27 	services to increase public awareness of problem gambling, education and training for 
14.28 	individuals and organizations providing effective treatment services to problem gamblers 
14.29 	and their families, and research relating to problem gambling. These services must be 
14.30 	complimentary to and not duplicative of the services provided through the problem 
14.31 	gambling program administered by the commissioner of human services.

14.32 	Sec. 33. SAVINGS; APPROPRIATION REDUCTION.
 14.33 		Subdivision 1.Executive and judicial branch agencies. The commissioner of 
14.34 	management and budget must reduce general fund appropriations to executive and 
15.1 	judicial branch agencies for agency operations for the biennium ending June 30, 2013, 
15.2 	by $475,404,000. To the greatest extent possible, these reductions must come from 
15.3 	savings provided by the reforms, efficiencies, and cost-savings measures contained in 
15.4 	this act, including:
15.5 	(1) reduction in the number of full-time equivalent employees;
15.6 	(2) salary and benefit changes;
15.7 	(3) elimination of deputy and assistant commissioner positions;
15.8 	(4) operational efficiencies and cost savings obtained under contracts with vendors; 
15.9 	and
15.10 	(5) verification of dependent eligibility for state employee group insurance coverage.
15.11 	If operational efficiencies and cost savings obtained under contracts with vendors 
15.12 	yield savings in dedicated funds other than those established in the state constitution or 
15.13 	protected by federal law, the commissioner of management and budget may transfer 
15.14 	the amount of savings to the general fund. Reductions made in 2013 must be reflected 
15.15 	as reductions in agency base budgets for fiscal years 2014 and 2015. The commissioner 
15.16 	of management and budget must report to the chairs and ranking minority members of 
15.17 	the senate Finance Committee and the house of representatives Ways and Means and 
15.18 	Finance Committees regarding the amount of reductions in spending by each agency 
15.19 	under this section.
15.20 		Subd. 2.Legislature. The commissioner of management and budget must reduce 
15.21 	general fund appropriations to the legislature for the biennium ending June 30, 2013, by 
15.22 	$2,130,000. To the greatest extent possible, these reductions must come from savings 
15.23 	provided by the salary and benefit changes contained in this act.
15.24 	The commissioner must provide notice of proposed reductions under this subdivision 
15.25 	to the Legislative Advisory Commission 30 days before the reductions take effect.

15.26 	ARTICLE 2
15.27 	MILITARY AFFAIRS AND VETERANS AFFAIRS

15.28	Section 1. APPROPRIATIONS.
 	
15.29 	The sums shown in the columns marked "Appropriations" are appropriated to the 
15.30 	agencies and for the purposes specified in this article. The appropriations are from the 
15.31 	general fund and are available for the fiscal years indicated for each purpose. The figures 
15.32 	"2012" and "2013" used in this article mean that the appropriations listed under them are 
15.33 	available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The 
15.34 	first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is 
15.35 	fiscal years 2012 and 2013.

16.1				APPROPRIATIONS
	
16.2				Available for the Year
	
16.3				Ending June 30
	
16.4					2012
		2013

16.5	Sec. 2. MILITARY AFFAIRS

16.6	Subdivision 1.Total Appropriation
 	$
	20,871,000
	$
	20,871,000
	
16.7 	The amounts that may be spent for each 
16.8 	purpose are specified in the following 
16.9 	subdivisions.

16.10	Subd. 2.Maintenance of Training Facilities
 		6,660,000
		6,660,000

16.11	Subd. 3.General Support
 		2,363,000
		2,363,000

16.12	Subd. 4.Enlistment Incentives
 		11,848,000
		11,848,000
	
16.13 	$1,500,000 each year is for the National 
16.14 	Guard's tuition reimbursement program. This 
16.15 	is a onetime appropriation.
16.16 	If appropriations for either year of the 
16.17 	biennium are insufficient, the appropriation 
16.18 	from the other year is available. The 
16.19 	appropriations for enlistment incentives are 
16.20 	available until expended.

16.21	Sec. 3. VETERANS AFFAIRS

16.22	Subdivision 1.Total Appropriation
 	$
	57,795,000
	$
	58,595,000

16.23	Appropriations by Fund
	
16.24		2012
	2013
	
16.25	General
	57,695,000
	58,595,000
	
16.26	Special Revenue
	100,000
	-0-
	
16.27 	The amounts that may be spent for each 
16.28 	purpose are specified in the following 
16.29 	subdivisions.

16.30	Subd. 2.Veterans Services
 		13,879,000
		13,779,000

16.31	Appropriations by Fund
	
16.32		2012
	2013
	
17.1	General
	13,779,000
	13,779,000
	
17.2	Special Revenue
	100,000
	-0-
	
17.3 	$100,000 in the first year is from the 
17.4 	"Support Our Troops" account established 
17.5 	under Minnesota Statutes, section 190.19, 
17.6 	subdivision 2a, for a grant to the Minnesota 
17.7 	Assistance Council for Veterans. This is a 
17.8 	onetime appropriation.
17.9 	$945,000 each year is for the higher 
17.10 	education veterans assistance program under 
17.11 	Minnesota Statutes, section 197.585. This is 
17.12 	a onetime appropriation.
17.13 	The amount appropriated from the general 
17.14 	fund under Minnesota Statutes, section 
17.15 	197.791, subdivision 6, to pay benefit 
17.16 	amounts under Minnesota Statutes, section 
17.17 	197.791, subdivision 5, must not exceed 
17.18 	$794,000 the first year and $864,000 the 
17.19 	second year. If the appropriation under 
17.20 	Minnesota Statutes, section 197.791, 
17.21 	subdivision 6, is insufficient for either year 
17.22 	of the biennium, the appropriation from the 
17.23 	other year is available for it.
17.24 	 $353,000 each year is for grants to the 
17.25 	following congressionally chartered veterans 
17.26 	service organizations, as designated by the 
17.27 	commissioner: Disabled American Veterans, 
17.28 	Military Order of the Purple Heart, the 
17.29 	American Legion, Veterans of Foreign Wars, 
17.30 	Vietnam Veterans of America, AMVETS, 
17.31 	and Paralyzed Veterans of America. This 
17.32 	funding must be allocated in direct proportion 
17.33 	to the funding currently being provided by 
17.34 	the commissioner to these organizations.

17.35	Subd. 3.Veterans Homes
 		43,916,000
		44,816,000
	
18.1 	Veterans Homes Special Revenue Account.
18.2 	The general fund appropriations made to 
18.3 	the department may be transferred to a 
18.4 	veterans homes special revenue account in 
18.5 	the special revenue fund in the same manner 
18.6 	as other receipts are deposited according 
18.7 	to Minnesota Statutes, section 198.34, and 
18.8 	are appropriated to the department for the 
18.9 	operation of veterans homes facilities and 
18.10 	programs.

18.11 	Sec. 4. Laws 2010, chapter 215, article 6, section 4, is amended to read:

18.12	Sec. 4. VETERANS HOMES
 					
18.13 	Of the appropriation in Laws 2009, chapter 
18.14 	94, article 3, section 2, subdivision 3, or from 
18.15 	funds carried forward from fiscal year 2009:
18.16 	(1) $1,000,000 $800,000  in fiscal year 2011 
18.17 	is for operational expenses related to the 
18.18 	21-bed addition at the Fergus Falls Veterans 
18.19 	Home and $200,000 is for start-up costs at 
18.20 	the Minneapolis adult day care center, and 
18.21 	any money unspent at the end of fiscal year 
18.22 	2011 for either of these purposes carries 
18.23 	forward and is available in fiscal year 2012; 
18.24 	and
18.25 	(2) $113,000 in fiscal year 2011 is for start-up 
18.26 	expenses related to the opening of an adult 
18.27 	daycare day care  facility at the Minneapolis 
18.28 	Veterans Home.

18.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.30 	Sec. 5.  REPEALER.
 18.31 	Minnesota Statutes 2010, section 197.585, subdivision 5, is repealed.

18.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

19.1 	ARTICLE 3
19.2 	STATE GOVERNMENT

19.3 	Section 1. [3D.01] SHORT TITLE.
19.4 	This chapter may be cited as the "Minnesota Sunset Act."

19.5 	Sec. 2. [3D.02] DEFINITIONS.
19.6 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
19.7 		Subd. 2.Advisory committee. "Advisory committee" means a committee, council, 
19.8 	commission, or other entity created under state law whose primary function is to advise 
19.9 	a state agency.
19.10 		Subd. 3.Commission. "Commission" means the Sunset Advisory Commission.
19.11 		Subd. 4.State agency. "State agency" means an agency expressly made subject 
19.12 	to this chapter. 

19.13 	Sec. 3. [3D.03] SUNSET ADVISORY COMMISSION.
19.14 		Subdivision 1.Membership. The Sunset Advisory Commission consists of 12 
19.15 	members appointed as follows:
19.16 	(1) five senators and one public member, appointed according to the rules of the 
19.17 	senate, with no more than three senators from the majority caucus; and
19.18 	(2) five members of the house of representatives and one public member, appointed 
19.19 	by the speaker of the house, with no more than three of the house of representatives 
19.20 	members from the majority caucus.
19.21 		Subd. 2.Public member restrictions. An individual is not eligible for appointment 
19.22 	as a public member if the individual or the individual's spouse is:
19.23 	(1) regulated by a state agency that the commission will review during the term for 
19.24 	which the individual would serve;  
19.25 	(2) employed by, participates in the management of, or directly or indirectly has 
19.26 	more than a ten percent interest in a business entity or other organization regulated by a 
19.27 	state agency the commission will review during the term for which the individual would 
19.28 	serve; or 
19.29 	(3) required to register as a lobbyist under chapter 10A because of the person's 
19.30 	activities for compensation on behalf of a profession or entity related to the operation of 
19.31 	an agency under review.
19.32 		Subd. 3.Removal. (a) It is a ground for removal of a public member from the 
19.33 	commission if the member does not have the qualifications required by subdivision 2 
20.1 	for appointment to the commission at the time of appointment or does not maintain the 
20.2 	qualifications while serving on the commission. The validity of the commission's action is 
20.3 	not affected by the fact that it was taken when a ground for removal of a public member 
20.4 	from the commission existed.
20.5 	(b) Except as provided in paragraph (a), a public member may be removed only as 
20.6 	provided in section 15.0575, subdivision 4.
20.7 		Subd. 4.Terms. Legislative members serve at the pleasure of the appointing 
20.8 	authority. Public members serve two-year terms expiring the first Monday in January of 
20.9 	each odd-numbered year.
20.10 		Subd. 5.Limits. Members are subject to the following restrictions:
20.11 	(1) after an individual serves four years on the commission, the individual is not 
20.12 	eligible for appointment to another term or part of a term;
20.13 	(2) a legislative member who serves a full term may not be appointed to an 
20.14 	immediately succeeding term; and
20.15 	(3) a public member may not serve consecutive terms, and, for purposes of this 
20.16 	prohibition, a member is considered to have served a term only if the member has served 
20.17 	more than one-half of the term.
20.18 		Subd. 6.Appointments. Appointments must be made before the first Monday in 
20.19 	January of each odd-numbered year.
20.20 		Subd. 7.Legislative members. If a legislative member ceases to be a member 
20.21 	of the legislative body from which the member was appointed, the member vacates 
20.22 	membership on the commission.
20.23 		Subd. 8.Vacancies. If a vacancy occurs, the appointing authority shall appoint a 
20.24 	person to serve for the remainder of the unexpired term in the same manner as the original 
20.25 	appointment.
20.26 		Subd. 9.Officers. The commission shall have a chair and vice-chair as presiding 
20.27 	officers.
20.28 		Subd. 10.Quorum; voting. Seven members of the commission constitute a 
20.29 	quorum. A final action or recommendation may not be made unless approved by a 
20.30 	recorded vote of at least seven members. All other actions by the commission shall be 
20.31 	decided by a majority of the members present and voting.
20.32 		Subd. 11.Compensation. Each public member shall be reimbursed for expenses 
20.33 	as provided in section 15.0575. Compensation for legislators is as determined by the 
20.34 	members' legislative chamber.

20.35 	Sec. 4. [3D.04] STAFF.
21.1 	The Legislative Coordinating Commission shall provide staff and administrative 
21.2 	services for the commission.

21.3 	Sec. 5. [3D.05] RULES.
21.4 	The commission may adopt rules necessary to carry out this chapter.

21.5 	Sec. 6. [3D.06] AGENCY REPORT TO COMMISSION.
21.6 	Before September 1 of the odd-numbered year before the year in which a state 
21.7 	agency is sunset, the agency commissioner shall report to the commission:
21.8 	(1) information regarding the application to the agency of the criteria in section 
21.9 	3D.10;
21.10 	(2) a priority-based budget for the agency;
21.11 	(3) an inventory of all boards, commissions, committees, and other entities related 
21.12 	to the agency; and
21.13 	(4) any other information that the agency commissioner considers appropriate or that 
21.14 	is requested by the commission.

21.15 	Sec. 7. [3D.07] COMMISSION DUTIES.
21.16 	Before January 1 of the year in which a state agency subject to this chapter and its 
21.17 	advisory committees are sunset, the commission shall:
21.18 	(1) review and take action necessary to verify the reports submitted by the agency; 
21.19 	and
21.20 	(2) conduct a review of the agency based on the criteria provided in section 3D.10 
21.21 	and prepare a written report.

21.22 	Sec. 8. [3D.08] PUBLIC HEARINGS.
21.23 	Before February 1 of the year a state agency subject to this chapter and its advisory 
21.24 	committees are sunset, the commission shall conduct public hearings concerning but not 
21.25 	limited to the application to the agency of the criteria provided in section 3D.10.

21.26 	Sec. 9. [3D.09] COMMISSION REPORT.
21.27 	By February 1 of each even-numbered year, the commission shall present to the 
21.28 	legislature and the governor a report on the agencies and advisory committees reviewed. 
21.29 	In the report the commission shall include:
21.30 	(1) its findings regarding the criteria prescribed by section 3D.10;
21.31 	(2) its recommendations based on the matters prescribed by section 3D.11; and
22.1 	(3) other information the commission considers necessary for a complete review 
22.2 	of the agency. 

22.3 	Sec. 10. [3D.10] CRITERIA FOR REVIEW.
22.4 	The commission and its staff shall consider the following criteria in determining 
22.5 	whether a public need exists for the continuation of a state agency or its advisory 
22.6 	committees or for the performance of the functions of the agency or its advisory 
22.7 	committees:
22.8 	(1) the efficiency and effectiveness with which the agency or the advisory committee 
22.9 	operates; 
22.10 	(2) an identification of the mission, goals, and objectives intended for the agency or 
22.11 	advisory committee and of the problem or need that the agency or advisory committee 
22.12 	was intended to address and the extent to which the mission, goals, and objectives have 
22.13 	been achieved and the problem or need has been addressed;
22.14 	(3) an identification of any activities of the agency in addition to those granted by 
22.15 	statute and of the authority for those activities and the extent to which those activities 
22.16 	are needed;
22.17 	(4) an assessment of authority of the agency relating to fees, inspections, 
22.18 	enforcement, and penalties;
22.19 	(5) whether less restrictive or alternative methods of performing any function that 
22.20 	the agency performs could adequately protect or provide service to the public; 
22.21 	(6) the extent to which the jurisdiction of the agency and the programs administered 
22.22 	by the agency overlap or duplicate those of other agencies, the extent to which the agency 
22.23 	coordinates with those agencies, and the extent to which the programs administered by the 
22.24 	agency can be consolidated with the programs of other state agencies; 
22.25 	(7) the promptness and effectiveness with which the agency addresses complaints 
22.26 	concerning entities or other persons affected by the agency, including an assessment of the 
22.27 	agency's administrative hearings process; 
22.28 	(8) an assessment of the agency's rulemaking process and the extent to which the 
22.29 	agency has encouraged participation by the public in making its rules and decisions and 
22.30 	the extent to which the public participation has resulted in rules that benefit the public; 
22.31 	(9) the extent to which the agency has complied with federal and state laws and 
22.32 	applicable rules regarding equality of employment opportunity and the rights and privacy 
22.33 	of individuals, and state law and applicable rules of any state agency regarding purchasing 
22.34 	guidelines and programs for historically underutilized businesses;
23.1 	(10) the extent to which the agency issues and enforces rules relating to potential 
23.2 	conflicts of interest of its employees;
23.3 	(11) the extent to which the agency complies with chapter 13 and follows records 
23.4 	management practices that enable the agency to respond efficiently to requests for public 
23.5 	information; and
23.6 	(12) the effect of federal intervention or loss of federal funds if the agency is 
23.7 	abolished. 

23.8 	Sec. 11. [3D.11] RECOMMENDATIONS.
23.9 	(a) In its report on a state agency, the commission shall: 
23.10 	(1) make recommendations on the abolition, continuation, or reorganization of each 
23.11 	affected state agency and its advisory committees and on the need for the performance of 
23.12 	the functions of the agency and its advisory committees; 
23.13 	(2) make recommendations on the consolidation, transfer, or reorganization of 
23.14 	programs within state agencies not under review when the programs duplicate functions 
23.15 	performed in agencies under review; and 
23.16 	(3) make recommendations to improve the operations of the agency, its policy body, 
23.17 	and its advisory committees, including management recommendations that do not require 
23.18 	a change in the agency's enabling statute. 
23.19 	(b) The commission shall include the estimated fiscal impact of its recommendations 
23.20 	and may recommend appropriation levels for certain programs to improve the operations 
23.21 	of the state agency. 
23.22 	(c) The commission shall have drafts of legislation prepared to carry out the 
23.23 	commission's recommendations under this section, including legislation necessary 
23.24 	to continue the existence of agencies that would otherwise sunset if the commission 
23.25 	recommends continuation of an agency.
23.26 	(d) After the legislature acts on the report under section 3D.09, the commission shall 
23.27 	present to the legislative auditor the commission's recommendations that do not require 
23.28 	a statutory change to be put into effect. Subject to the legislative audit commission's 
23.29 	approval, the legislative auditor may examine the recommendations and include as part 
23.30 	of the next audit of the agency a report on whether the agency has implemented the 
23.31 	recommendations and, if so, in what manner.

23.32 	Sec. 12. [3D.12] MONITORING OF RECOMMENDATIONS.
23.33 	During each legislative session, the staff of the commission shall monitor legislation 
23.34 	affecting agencies that have undergone sunset review and shall periodically report 
24.1 	to the members of the commission on proposed changes that would modify prior 
24.2 	recommendations of the commission.

24.3 	Sec. 13. [3D.13] REVIEW OF ADVISORY COMMITTEES.
24.4 	An advisory committee, the primary function of which is to advise a particular state 
24.5 	agency, is subject to sunset on the date set for sunset of the agency unless the advisory 
24.6 	committee is expressly continued by law.

24.7 	Sec. 14. [3D.14] CONTINUATION BY LAW.
24.8 	During the regular session immediately before the sunset of a state agency or an 
24.9 	advisory committee that is subject to this chapter, the legislature may enact legislation 
24.10 	to continue the agency or advisory committee for a period not to exceed 12 years. This 
24.11 	chapter does not prohibit the legislature from:
24.12 	(1) terminating a state agency or advisory committee subject to this chapter at a date 
24.13 	earlier than that provided in this chapter; or
24.14 	(2) considering any other legislation relative to a state agency or advisory committee 
24.15 	subject to this chapter.

24.16 	Sec. 15. [3D.15] PROCEDURE AFTER TERMINATION.
24.17 		Subdivision 1.Termination. Unless otherwise provided by law: 
24.18 	(1) if after sunset review a state agency is abolished, the agency may continue in 
24.19 	existence until June 30 of the following year to conclude its business; 
24.20 	(2) abolishment does not reduce or otherwise limit the powers and authority of the 
24.21 	state agency during the concluding year; 
24.22 	(3) a state agency is terminated and shall cease all activities at the expiration of 
24.23 	the one-year period; and
24.24 	(4) all rules that have been adopted by the state agency expire at the expiration of 
24.25 	the one-year period.
24.26 		Subd. 2.Funds of abolished agency or advisory committee. (a) Any unobligated 
24.27 	and unexpended appropriations of an abolished agency or advisory committee lapse on 
24.28 	June 30 of the year after abolishment.
24.29 	(b) Except as provided by subdivision 4 or as otherwise provided by law, all money 
24.30 	in a dedicated fund of an abolished state agency or advisory committee on June 30 of the 
24.31 	year after abolishment is transferred to the general fund. The part of the law dedicating 
24.32 	the money to a specific fund of an abolished agency becomes void on June 30 of the year 
24.33 	after abolishment.
25.1 		Subd. 3.Property and records of abolished agency or advisory committee.
 25.2 	Unless the governor designates an appropriate state agency as prescribed by subdivision 4, 
25.3 	property and records in the custody of an abolished state agency or advisory committee 
25.4 	on June 30 of the year after abolishment must be transferred to the commissioner of 
25.5 	administration. If the governor designates an appropriate state agency, the property and 
25.6 	records must be transferred to the designated state agency.
25.7 		Subd. 4.Continuing obligations. (a) The legislature recognizes the state's 
25.8 	continuing obligation to pay bonded indebtedness and all other obligations, including 
25.9 	lease, contract, and other written obligations, incurred by a state agency or advisory 
25.10 	committee abolished under this chapter, and this chapter does not impair or impede the 
25.11 	payment of bonded indebtedness and all other obligations, including lease, contract, and 
25.12 	other written obligations, in accordance with their terms. If an abolished state agency or 
25.13 	advisory committee has outstanding bonded indebtedness or other outstanding obligations, 
25.14 	including lease, contract, and other written obligations, the bonds and all other obligations, 
25.15 	including lease, contract, and other written obligations, remain valid and enforceable in 
25.16 	accordance with their terms and subject to all applicable terms and conditions of the laws 
25.17 	and proceedings authorizing the bonds and all other obligations, including lease, contract, 
25.18 	and other written obligations.
25.19 	(b) The governor shall designate an appropriate state agency that shall continue to 
25.20 	carry out all covenants contained in the bonds and in all other obligations, including lease, 
25.21 	contract, and other written obligations, and the proceedings authorizing them, including 
25.22 	the issuance of bonds, and the performance of all other obligations, including lease, 
25.23 	contract, and other written obligations, to complete the construction of projects or the 
25.24 	performance of other obligations, including lease, contract, and other written obligations.
25.25 	(c) The designated state agency shall provide payment from the sources of payment 
25.26 	of the bonds in accordance with the terms of the bonds and shall provide payment from 
25.27 	the sources of payment of all other obligations, including lease, contract, and other written 
25.28 	obligations, in accordance with their terms, whether from taxes, revenues, or otherwise, 
25.29 	until the bonds and interest on the bonds are paid in full and all other obligations, 
25.30 	including lease, contract, and other written obligations, are performed and paid in full. 
25.31 	If the proceedings so provide, all funds established by laws or proceedings authorizing 
25.32 	the bonds or authorizing other obligations, including lease, contract, and other written 
25.33 	obligations, must remain with the comptroller or the previously designated trustees. If the 
25.34 	proceedings do not provide that the funds remain with the comptroller or the previously 
25.35 	designated trustees, the funds must be transferred to the designated state agency.

26.1 	Sec. 16. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
26.2 	The commission may request the assistance of state agencies and officers. When 
26.3 	assistance is requested, a state agency or officer shall assist the commission. In carrying 
26.4 	out its functions under this chapter, the commission or its designated staff member may 
26.5 	inspect the records, documents, and files of any state agency. 

26.6 	Sec. 17. [3D.17] RELOCATION OF EMPLOYEES.
26.7 	If an employee is displaced because a state agency or its advisory committee is 
26.8 	abolished or reorganized, the state agency shall make a reasonable effort to relocate the 
26.9 	displaced employee.

26.10 	Sec. 18. [3D.18] SAVING PROVISION.
26.11 	Except as otherwise expressly provided, abolition of a state agency does not affect 
26.12 	rights and duties that matured, penalties that were incurred, civil or criminal liabilities that 
26.13 	arose, or proceedings begun before the effective date of the abolition.

26.14 	Sec. 19. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN 
26.15 	AGENCY.
26.16 	Each bill filed in a house of the legislature that would create a new state agency or 
26.17 	a new advisory committee to a state agency shall be reviewed by the commission. The 
26.18 	commission shall review the bill to determine if:
26.19 	(1) the proposed functions of the agency or committee could be administered by one 
26.20 	or more existing state agencies or advisory committees; 
26.21 	(2) the form of regulation, if any, proposed by the bill is the least restrictive form of 
26.22 	regulation that will adequately protect the public; 
26.23 	(3) the bill provides for adequate public input regarding any regulatory function 
26.24 	proposed by the bill; and 
26.25 	(4) the bill provides for adequate protection against conflicts of interest within 
26.26 	the agency or committee.

26.27 	Sec. 20. [3D.20] GIFTS AND GRANTS.
26.28 	The commission may accept gifts, grants, and donations from any organization 
26.29 	described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding 
26.30 	any activity under this chapter. All gifts, grants, and donations must be accepted in an 
26.31 	open meeting by a majority of the voting members of the commission and reported in the 
27.1 	public record of the commission with the name of the donor and purpose of the gift, grant, 
27.2 	or donation. Money received under this section is appropriated to the commission.

27.3 	Sec. 21. [3D.21] EXPIRATION.
27.4 		Subdivision 1.Group 1. The following agencies are sunset and expire on June 
27.5 	30, 2012: Department of Health, Department of Human Rights, Department of Human 
27.6 	Services, all health-related licensing boards listed in section 214.01, Council on Affairs 
27.7 	of Chicano/Latino People, Council on Black Minnesotans, Council on Asian-Pacific 
27.8 	Minnesotans, Indian Affairs Council, Council on Disabilities, and all advisory groups 
27.9 	associated with these agencies.
27.10 		Subd. 2.Group 2. The following agencies are sunset and expire on June 30, 2014: 
27.11 	Department of Education, Board of Teaching, Minnesota Office of Higher Education, and 
27.12 	all advisory groups associated with these agencies.
27.13 		Subd. 3.Group 3. The following agencies are sunset and expire on June 30, 2016: 
27.14 	Department of Commerce, Department of Employment and Economic Development, 
27.15 	Department of Labor and Industry, all non-health-related licensing boards listed in 
27.16 	section 214.01 except as otherwise provided in this section, Explore Minnesota Tourism, 
27.17 	Public Utilities Commission, Iron Range Resources and Rehabilitation Board, Bureau of 
27.18 	Mediation Services, Combative Sports Commission, Amateur Sports Commission, and all 
27.19 	advisory groups associated with these agencies.
27.20 		Subd. 4.Group 4. The following agencies are sunset and expire on June 30, 2018: 
27.21 	Department of Corrections, Department of Public Safety, Department of Transportation, 
27.22 	Peace Officer Standards and Training Board, Corrections Ombudsman, and all advisory 
27.23 	groups associated with these agencies.
27.24 		Subd. 5.Group 5. The following agencies are sunset and expire on June 30, 2020: 
27.25 	Department of Agriculture, Department of Natural Resources, Pollution Control Agency, 
27.26 	Board of Animal Health, Board of Water and Soil Resources, and all advisory groups 
27.27 	associated with these agencies.
27.28 		Subd. 6.Group 6. The following agencies are sunset and expire on June 30, 2022: 
27.29 	Department of Administration, Department of Management and Budget, Department of 
27.30 	Military Affairs, Department of Revenue, Department of Veterans Affairs, Arts Board, 
27.31 	Minnesota Zoo, Office of Administrative Hearings, Campaign Finance and Public 
27.32 	Disclosure Board, Capitol Area Architectural and Planning Board, Office of Enterprise 
27.33 	Technology, Minnesota Racing Commission, and all advisory groups associated with 
27.34 	these agencies.
28.1 		Subd. 7.Continuation. Following sunset review of an agency, the legislature may 
28.2 	act within the same legislative session in which the sunset report was received on Sunset 
28.3 	Advisory Commission recommendations to continue or reorganize the agency.
28.4 		Subd. 8.Other groups. The commission may review, under the criteria in 
28.5 	section 3D.10, and propose to the legislature an expiration date for any agency, board, 
28.6 	commission, or program not listed in this section.

28.7 	Sec. 22. Minnesota Statutes 2010, section 15.057, is amended to read:
28.8 	15.057 PUBLICITY REPRESENTATIVES AND LEGISLATIVE LIAISONS.
28.9 		Subdivision 1.Publicity representatives.  No state department, bureau, or division, 
28.10 	whether the same operates on funds appropriated or receipts or fees of any nature 
28.11 	whatsoever, except the Department of Transportation, the Department of Employment 
28.12 	and Economic Development, the Game and Fish Division, State Agricultural Society, and 
28.13 	Explore Minnesota Tourism shall use any of such funds for the payment of the salary or 
28.14 	expenses of a publicity representative. The head of any such department, bureau, or 
28.15 	division shall be personally liable for funds used contrary to this provision. This section
28.16 	subdivision  shall not be construed, however, as preventing any such department, bureau, 
28.17 	or division from sending out any bulletins or other publicity required by any state law or 
28.18 	necessary for the satisfactory conduct of the business for which such department, bureau, 
28.19 	or division was created.
28.20 		Subd. 2.Legislative liaisons. No state agency may use any money appropriated to 
28.21 	it for the salary or expenses of an individual serving as a liaison for the legislative affairs 
28.22 	of the agency. This subdivision does not prevent any employee of a state agency from 
28.23 	providing information requested by legislators and providing testimony at legislative 
28.24 	hearings.

28.25 	Sec. 23. Minnesota Statutes 2010, section 15.06, subdivision 8, is amended to read:
28.26 		Subd. 8.Number of deputy commissioners. Unless specifically authorized by 
28.27 	statute, other than section 43A.08, subdivision 2 Except for the Department of Veterans 
28.28 	Affairs, no department or agency specified in subdivision 1 shall have more than one 
28.29 	deputy commissioner. No department or agency specified in subdivision 1 may employ an 
28.30 	assistant commissioner.

28.31 	Sec. 24. Minnesota Statutes 2010, section 16A.10, subdivision 1a, is amended to read:
28.32 		Subd. 1a.Purpose of performance data. Performance data shall be presented in 
28.33 	the budget proposal to:
29.1 	(1) provide information so that the legislature can determine the extent to which 
29.2 	state programs and activities are successful;
29.3 	(2) encourage agencies to develop clear and measurable goals and objectives for 
29.4 	their programs and activities; and
29.5 	(3) strengthen accountability to Minnesotans by providing a record of state 
29.6 	government's performance in providing effective and efficient services.

29.7 	Sec. 25. Minnesota Statutes 2010, section 16A.10, subdivision 1b, is amended to read:
29.8 		Subd. 1b.Performance data format. (a) As part of the budget proposal, agencies 
29.9 	shall:
29.10 	(1) describe the goals and objectives of each agency program and activity; and
29.11 	(2) present performance data that measures the performance of programs and 
29.12 	activities in meeting program goals and objectives.
29.13 	(b) Measures reported must be outcome-based and objective, and may include 
29.14 	indicators of outputs, efficiency, outcomes, and other measures relevant to understanding 
29.15 	each program and activity.
29.16 	(c) Agencies shall present as much historical information as needed to understand 
29.17 	major trends and shall set targets for future performance issues where feasible and 
29.18 	appropriate. The information shall appropriately highlight agency performance issues that 
29.19 	would assist legislative review and decision making.
29.20 	(d) For purposes of this subdivision, subdivision 1a, and section 16A.106, the terms 
29.21 	"program" and "activity" are used in the same manner as the terms are used in state 
29.22 	budgeting. However, the commissioner may authorize an agency to define these terms in a 
29.23 	different manner if that allows for a more effective presentation of performance data.

29.24 	Sec. 26. Minnesota Statutes 2010, section 16A.10, subdivision 1c, is amended to read:
29.25 		Subd. 1c.Performance measures for change items. For each change item in the 
29.26 	budget proposal requesting new or increased funding, the budget document must present 
29.27 	proposed performance measures that can be used to determine if the new or increased 
29.28 	funding is accomplishing its goals. To the extent possible, each budget change item 
29.29 	must identify relevant Minnesota Milestones and other statewide goals and indicators 
29.30 	related to the proposed initiative. The commissioner must report to the Subcommittee on 
29.31 	Government Accountability established under section 3.885, subdivision 10, regarding the 
29.32 	format to be used for the presentation and selection of Minnesota Milestones and other 
29.33 	statewide goals and indicators.

30.1 	Sec. 27. Minnesota Statutes 2010, section 16A.103, subdivision 1a, is amended to read:
30.2 		Subd. 1a.Forecast parameters. The forecast must assume the continuation of 
30.3 	current laws and reasonable estimates of projected growth in the national and state 
30.4 	economies and affected populations. Revenue must be estimated for all sources provided 
30.5 	for in current law. Expenditures must be estimated for all obligations imposed by law and 
30.6 	those projected to occur as a result of variables outside the control of the legislature. 
30.7 	Expenditures for the current biennium must be based on actual appropriations or, for 
30.8 	forecasted programs, the amount needed to fund the formula in law. The base for 
30.9 	expenditures projections for the next biennium is the amount appropriated in the second 
30.10 	year of the current biennium, or, for forecasted programs, the amount needed to fund the 
30.11 	formula in law. Expenditure estimates must not include an allowance for inflation.

30.12 	Sec. 28. [16A.106] ZERO-BASED BUDGETING PRINCIPLES.
30.13 		Subdivision 1.Determination. Each biennium, the proposed budget for 
30.14 	approximately one-half of the expenditure programs, as selected according to subdivision 
30.15 	2, must be prepared using the principles of zero-based budgeting specified in subdivision 
30.16 	4. Programs that are not designated for one biennium must be designated for the next 
30.17 	biennium. Budgets for the legislative and judicial branches and for the Minnesota State 
30.18 	Colleges and Universities must be prepared using principles of zero-based budgeting 
30.19 	for the biennium beginning July 1, 2013, and for bienniums beginning every four years 
30.20 	after that. The budget for the University of Minnesota must be prepared using principles 
30.21 	of zero-based budgeting for the biennium beginning July 1, 2015, and for bienniums 
30.22 	beginning every four years after that.
30.23 		Subd. 2.Governor's determination. The governor must designate the expenditure 
30.24 	programs for a biennium that will be prepared using zero-based budgeting principles. In 
30.25 	making the designation the governor, in consultation with the chairs and lead minority 
30.26 	members of the senate Finance Committee and the house of representatives Ways and 
30.27 	Means Committee, must attempt to balance the number of expenditure budgets that will 
30.28 	be prepared using zero-based budgeting principles and the number that will not for each 
30.29 	legislative finance committee. All of the programs within an agency must be assigned 
30.30 	to use zero-based budgeting principles in the same year.
30.31 		Subd. 3.Exceptions. Expenditures for debt service under section 16A.641, 
30.32 	subdivision 10, are exempt from the zero-based budgeting principles under this section.
30.33 		Subd. 4.Zero-based budgeting principles. (a) For each program and activity 
30.34 	subject to zero-based budgeting principles for a biennium, the detailed budget presented 
30.35 	to the legislature must include:
31.1 	(1) a description of each budget activity for which the agency or entity receives 
31.2 	an appropriation in the current biennium or for which the agency or entity requests an 
31.3 	appropriation in the next biennium;
31.4 	(2) for each budget activity, three alternative funding levels or alternative ways of 
31.5 	performing the budget activity, a summary of the priorities that would be accomplished 
31.6 	within each level, and the additional increments of value that would be added by the 
31.7 	higher funding levels; and
31.8 	(3) for each budget activity, performance data as specified in section 16A.10, 
31.9 	subdivision 1b, the predicted effect of the three alternative funding levels on future 
31.10 	performance, and also one or more measures of cost efficiency and effectiveness of 
31.11 	program delivery, which must include comparisons to other states or entities with similar 
31.12 	programs.
31.13 	(b) The commissioner's budget preparation guidelines and instructions must contain 
31.14 	requirements, deadlines, and technical assistance to facilitate implementation of this 
31.15 	section. After consultation with the legislative commission on planning and fiscal policy, 
31.16 	the commissioner's instructions may establish parameters for the three alternative funding 
31.17 	levels required in paragraph (a), clause (3).
31.18 		Subd. 5.Prioritization. In presenting budget recommendations to the legislature for 
31.19 	those programs using zero-based budgeting principles, the governor's recommendations 
31.20 	must prioritize the budget activities within an agency or program area. To the extent 
31.21 	activities in more than one agency or program area are meeting the same goals, the 
31.22 	recommendations must prioritize budget activities across agencies or programs with 
31.23 	the same goals, and this prioritization must include agencies or programs not subject to 
31.24 	zero-based budgeting principles that biennium.

31.25 	EFFECTIVE DATE. This section is effective for budgets proposed for the 
31.26 	biennium beginning July 1, 2013.

31.27 	Sec. 29. Minnesota Statutes 2010, section 16A.11, subdivision 3, is amended to read:
31.28 		Subd. 3.Part two: detailed budget. (a) Part two of the budget, the detailed budget 
31.29 	estimates both of expenditures and revenues, must contain any statements on the financial 
31.30 	plan which the governor believes desirable or which may be required by the legislature. 
31.31 	The detailed estimates shall include the governor's budget arranged in tabular form.
31.32 	(b) For programs designated for the zero-based budgeting principles under section 
31.33 	16A.106, the budget must be prepared according to the requirements of that section.
31.34 	(c) For programs not designated for zero-based budgeting principles under section 
31.35 	16A.106, tables listing expenditures for the next biennium must show the appropriation 
32.1 	base for each year as defined in section 16A.103, subdivision 1c. The appropriation base 
32.2 	is the amount appropriated for the second year of the current biennium. The tables must 
32.3 	separately show any adjustments to the base required by current law or policies of the 
32.4 	commissioner of management and budget. For forecasted programs, the tables must also 
32.5 	show the amount of the forecast adjustments, based on the most recent forecast prepared 
32.6 	by the commissioner of management and budget under section 16A.103. For all programs, 
32.7 	the tables must show the amount of appropriation changes recommended by the governor, 
32.8 	after adjustments to the base and forecast adjustments, and the total recommendation of 
32.9 	the governor for that year.
32.10 	(c) (d) The detailed estimates must include a separate line listing the total cost of 
32.11 	professional and technical service contracts for the prior biennium and the projected costs 
32.12 	of those contracts for the current and upcoming biennium. They must also include a 
32.13 	summary of the personnel employed by the agency, reflected as full-time equivalent 
32.14 	positions.
32.15 	(d) (e) The detailed estimates for internal service funds must include the number of 
32.16 	full-time equivalents by program; detail on any loans from the general fund, including 
32.17 	dollar amounts by program; proposed investments in technology or equipment of $100,000 
32.18 	or more; an explanation of any operating losses or increases in retained earnings; and a 
32.19 	history of the rates that have been charged, with an explanation of any rate changes and 
32.20 	the impact of the rate changes on affected agencies.

32.21 	Sec. 30. Minnesota Statutes 2010, section 16B.03, is amended to read:
32.22 	16B.03 APPOINTMENTS.
32.23 	The commissioner is authorized to appoint staff, including twoone deputy 
32.24 	commissioners commissioner, in accordance with chapter 43A.

32.25 	Sec. 31. [16D.20] FEDERAL OFFSET PROGRAM.
32.26 	(a) The commissioner may enter into an agreement with the United States Secretary 
32.27 	of the Treasury to participate in an offset program authorized under United States Code, 
32.28 	title 31, section 3716, for the collection of debts owed to state agencies. The agreement 
32.29 	may provide for the United States to submit debts owed to federal agencies for offset 
32.30 	against state payments, similar to the procedures for offsetting debts owed to state 
32.31 	agencies from federal payments.
32.32 	(b) The commissioner shall reduce any state payment by the amount of any federal 
32.33 	debt submitted in accordance with the agreement authorized by this section, and pay such 
33.1 	amount to the appropriate federal official in accordance with the procedures specified 
33.2 	in such agreement.
33.3 	(c) The commissioner may, by rule, establish a reasonable administrative fee to be 
33.4 	charged to the debtor for the contingency fee-based procession of state payment offsets for 
33.5 	the recovery of federal nontax debts or the contingency fee-based processing of federal 
33.6 	payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt 
33.7 	and may be withheld from any refund, reimbursement, or other money held for the debtor.

33.8 	Sec. 32. Minnesota Statutes 2010, section 43A.08, subdivision 1, is amended to read:
33.9 		 Subdivision 1.Unclassified positions.  Unclassified positions are held by employees 
33.10 	who are:
33.11 	 (1) chosen by election or appointed to fill an elective office;
33.12 	 (2) heads of agencies required by law to be appointed by the governor or other 
33.13 	elective officers, and the executive or administrative heads of departments, bureaus, 
33.14 	divisions, and institutions specifically established by law in the unclassified service;
33.15 	 (3) deputy and assistant agency heads and one confidential secretary in the agencies 
33.16 	listed in subdivision 1a and in the Office of Strategic and Long-Range Planning section 
33.17 	15.06, subdivision 1;
33.18 	 (4) the confidential secretary to each of the elective officers of this state and, for the 
33.19 	secretary of state and state auditor, an additional deputy, clerk, or employee;
33.20 	 (5) intermittent help employed by the commissioner of public safety to assist in 
33.21 	the issuance of vehicle licenses;
33.22 	 (6) employees in the offices of the governor and of the lieutenant governor and one 
33.23 	confidential employee for the governor in the Office of the Adjutant General;
33.24 	 (7) employees of the Washington, D.C., office of the state of Minnesota;
33.25 	 (8) employees of the legislature and of legislative committees or commissions; 
33.26 	provided that employees of the Legislative Audit Commission, except for the legislative 
33.27 	auditor, the deputy legislative auditors, and their confidential secretaries, shall be 
33.28 	employees in the classified service;
33.29 	 (9) presidents, vice-presidents, deans, other managers and professionals in 
33.30 	academic and academic support programs, administrative or service faculty, teachers, 
33.31 	research assistants, and student employees eligible under terms of the federal Economic 
33.32 	Opportunity Act work study program in the Perpich Center for Arts Education and the 
33.33 	Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance 
33.34 	employees, or any professional or managerial employee performing duties in connection 
33.35 	with the business administration of these institutions;
34.1 	 (10) officers and enlisted persons in the National Guard;
34.2 	 (11) attorneys, legal assistants, and three confidential employees appointed by the 
34.3 	attorney general or employed with the attorney general's authorization;
34.4 	 (12) judges and all employees of the judicial branch, referees, receivers, jurors, and 
34.5 	notaries public, except referees and adjusters employed by the Department of Labor 
34.6 	and Industry;
34.7 	 (13) members of the State Patrol; provided that selection and appointment of State 
34.8 	Patrol troopers must be made in accordance with applicable laws governing the classified 
34.9 	service;
34.10 	 (14) examination monitors and intermittent training instructors employed by the 
34.11 	Departments of Management and Budget and Commerce and by professional examining 
34.12 	boards and intermittent staff employed by the technical colleges for the administration of 
34.13 	practical skills tests and for the staging of instructional demonstrations;
34.14 	(15) student workers;
34.15 	(16) executive directors or executive secretaries appointed by and reporting to any 
34.16 	policy-making board or commission established by statute;
34.17 	(17) employees unclassified pursuant to other statutory authority;
34.18 	(18) intermittent help employed by the commissioner of agriculture to perform 
34.19 	duties relating to pesticides, fertilizer, and seed regulation;
34.20 	(19) the administrators and the deputy administrators at the State Academies for the 
34.21 	Deaf and the Blind; and
34.22 	(20) chief executive officers in the Department of Human Services.

34.23 	Sec. 33. [43A.175] SALARY FREEZE.
34.24 	(a) Effective July 1, 2011, and until June 30, 2013, a state employee may not receive 
34.25 	a salary or wage increase. This section prohibits any increases, including but not limited 
34.26 	to: across-the-board increases; cost-of-living adjustments; increases based on longevity; 
34.27 	step increases; increases in the form of lump-sum payments; increases in employer 
34.28 	contributions to deferred compensation plans; or any other pay grade adjustments of 
34.29 	any kind. For purposes of this section, "salary or wage" does not include employer 
34.30 	contributions toward the cost of medical or dental insurance premiums, provided that 
34.31 	employee contributions to the costs of medical or dental insurance premiums are not 
34.32 	decreased. This section does not prohibit an increase in the rate of salary and wages for an 
34.33 	employee who is promoted or transferred to a position with greater responsibilities and 
34.34 	with a higher salary or wage rate.
35.1 	(b) A state appointing authority may not enter into a collective bargaining agreement 
35.2 	or implement a compensation plan that increases salary or wages in a manner prohibited 
35.3 	by this section. Neither a state appointing authority nor an exclusive representative of state 
35.4 	employees may request interest arbitration in relation to an increase in salary or wages that 
35.5 	is prohibited by this section, and an arbitrator may not issue an award that would increase 
35.6 	salary or wages in a manner prohibited by this section.

35.7 	EFFECTIVE DATE. Paragraph (b) is effective the day following final enactment. 
35.8 	Paragraph (a) is effective June 30, 2011.

35.9 	Sec. 34. Minnesota Statutes 2010, section 43A.23, subdivision 1, is amended to read:
35.10 		Subdivision 1.General. (a) The commissioner is authorized to request proposals 
35.11 	or to negotiate and to enter into contracts with parties which in the judgment of the 
35.12 	commissioner are best qualified to provide service to the benefit plans. Contracts entered 
35.13 	into are not subject to the requirements of sections 16C.16 to 16C.19. The commissioner 
35.14 	may negotiate premium rates and coverage. The commissioner shall consider the cost of 
35.15 	the plans, conversion options relating to the contracts, service capabilities, character, 
35.16 	financial position, and reputation of the carriers, and any other factors which the 
35.17 	commissioner deems appropriate. Each benefit contract must be for a uniform term of at 
35.18 	least one year, but may be made automatically renewable from term to term in the absence 
35.19 	of notice of termination by either party. A carrier licensed under chapter 62A is exempt 
35.20 	from the taxes imposed by chapter 297I on premiums paid to it by the state.
35.21 	(b) All self-insured hospital and medical service products must comply with coverage 
35.22 	mandates, data reporting, and consumer protection requirements applicable to the licensed 
35.23 	carrier administering the product, had the product been insured, including chapters 62J, 
35.24 	62M, and 62Q. Any self-insured products that limit coverage to a network of providers 
35.25 	or provide different levels of coverage between network and nonnetwork providers shall 
35.26 	comply with section 62D.123 and geographic access standards for health maintenance 
35.27 	organizations adopted by the commissioner of health in rule under chapter 62D.
35.28 	(c) Notwithstanding paragraph (b), a self-insured hospital and medical product 
35.29 	offered under sections 43A.22 to 43A.30 is not required to extend dependent coverage to 
35.30 	an eligible employee's unmarried child under the age of 25 to the full extent required under 
35.31 	chapters 62A and 62L. Dependent coverage must, at a minimum, extend to an eligible 
35.32 	employee's unmarried child who is under the age of 19 or an unmarried child under the 
35.33 	age of 25 who is a full-time student. A person who is at least 19 years of age but who is 
35.34 	under the age of 25 and who is not a full-time student must be permitted to be enrolled as 
35.35 	a dependent of an eligible employee until age 25 if the person:
36.1 	(1) was a full-time student immediately prior to being ordered into active military 
36.2 	service, as defined in section 190.05, subdivision 5b or 5c;
36.3 	(2) has been separated or discharged from active military service; and
36.4 	(3) would be eligible to enroll as a dependent of an eligible employee, except that 
36.5 	the person is not a full-time student.
36.6 	The definition of "full-time student" for purposes of this paragraph includes any student 
36.7 	who by reason of illness, injury, or physical or mental disability as documented by 
36.8 	a physician is unable to carry what the educational institution considers a full-time 
36.9 	course load so long as the student's course load is at least 60 percent of what otherwise 
36.10 	is considered by the institution to be a full-time course load. Any notice regarding 
36.11 	termination of coverage due to attainment of the limiting age must include information 
36.12 	about this definition of "full-time student."
36.13 	(d) Beginning January 1, 2010 2012, the health insurance benefit plans offered in the 
36.14 	commissioner's plan under section 43A.18, subdivision 2, and the managerial plan under 
36.15 	section 43A.18, subdivision 3, to state employees, including legislators and legislative 
36.16 	staff, must include an option for a be a health savings account-eligible high-deductible
36.17 	health plan that is compatible with the definition of a high-deductible health plan in section 
36.18 	223 of the United States Internal Revenue Code. The following provisions apply:
36.19 	(1) the employer shall deposit $1,500 to an individual health savings account 
36.20 	and $2,500 to a family health savings account and the deposit is dependent upon the 
36.21 	availability of a biennial appropriation for this purpose;
36.22 	(2) the high-deductible health plan shall have a deductible of $2,500 for individual 
36.23 	and $5,000 for family coverage, with 20 percent enrollee cost-sharing thereafter until 
36.24 	maximum out-of-pocket amounts of $3,500 for an individual or $6,500 for a family are 
36.25 	reached; and
36.26 	(3) $140 of the monthly premium amount for individual coverage shall be paid by 
36.27 	the employer, and $411 of the monthly premium amount for family coverage shall be 
36.28 	paid by the employer. The deposits and payments under this paragraph are subject to the 
36.29 	availability of an appropriation for this purpose.

36.30 	Sec. 35. [43A.347] REDUCTION IN STATE WORK FORCE; EARLY 
36.31 	RETIREMENT PROGRAM.
36.32 		Subdivision 1.Required reduction. (a) The number of full-time equivalent 
36.33 	employees employed in the executive branch, and the costs directly associated with 
36.34 	employing those persons, must be reduced by at least 15 percent by June 30, 2015, and 
37.1 	thereafter, compared to the number of full-time equivalent positions and the costs directly 
37.2 	associated with those positions on July 1, 2011.
37.3 	(b) An appointing authority may use any or all of the following to achieve this 
37.4 	requirement: attrition, a hard hiring freeze, early retirement incentives authorized in this 
37.5 	section, restructuring of benefit or pension programs as authorized by other law, furloughs, 
37.6 	and layoffs. The early retirement program in this section is enacted as a tool to assist in 
37.7 	complying with the required 15 percent reduction.
37.8 	(c) For purposes of this section:
37.9 	(1) "costs directly associated" with employing people means the cost of salaries and 
37.10 	benefits, including the costs of employer contributions to public pension plans; and
37.11 	(2) "executive branch" does not include the Minnesota State Colleges and 
37.12 	Universities, peace officers licensed under chapter 626, and the State Patrol.
37.13 		Subd. 2.Analysis. Before authorizing an early retirement incentive under 
37.14 	subdivision 3 or 4, the commissioner must perform analysis, including actuarial analysis, 
37.15 	as necessary to determine the maximum number of employees to whom incentives will be 
37.16 	offered, and the percentage of resulting savings estimated to be needed to pay pension 
37.17 	funds to cover costs to the funds of the incentives in this section. The commissioner must 
37.18 	use this analysis in determining how to best implement this section. The commissioner 
37.19 	may contract with the director of the Minnesota State Retirement System for assistance in 
37.20 	preparing the analysis required by this subdivision.
37.21 		Subd. 3.Pension early retirement incentive. (a) The commissioner of management 
37.22 	and budget may authorize an executive branch appointing authority to offer an early 
37.23 	retirement incentive under this subdivision to an employee who upon retirement would be 
37.24 	immediately eligible to receive an annuity from the public pension plan under which the 
37.25 	employee is covered immediately before separation from state service. The commissioner 
37.26 	may establish time periods during which the incentive may be offered and during which 
37.27 	the incentive must be accepted, may establish limits on the number of employees to whom 
37.28 	an appointing authority, or all appointing authorities collectively, may offer the incentive, 
37.29 	and may establish other conditions for the incentive. 
37.30 	(b) For an employee offered an incentive under this subdivision, for each full 
37.31 	year of service credit that the employee has in a plan administered by the Minnesota 
37.32 	State Retirement System, the Public Employees Retirement Association, or the Teachers 
37.33 	Retirement Association, the employee must be granted an additional month of service 
37.34 	credit in the plan under which the employee is covered immediately before separation 
37.35 	from state service under this subdivision. 
38.1 	(c) Upon request of an appointing authority considering offering an incentive under 
38.2 	this subdivision, the executive director of the public pension plan in which an employee 
38.3 	would be granted additional service credit under this subdivision must prepare an estimate 
38.4 	of the present value of the additional service credit that would be granted to an employee 
38.5 	under this subdivision. For each employee accepting an incentive under this subdivision, 
38.6 	the appointing authority offering the incentive must pay the applicable public pension 
38.7 	plan, from the first dollars of savings achieved through offering the incentive, the present 
38.8 	value of the additional service credit granted to the employee, taking into account the date 
38.9 	payment will be received from the appointing authority. The appointing authority must 
38.10 	make this payment to the pension plan within one year of the date the employee accepting 
38.11 	the incentive leaves state service.
38.12 		Subd. 4.Insurance early retirement incentive. The commissioner of management 
38.13 	and budget may authorize an executive appointing authority to offer the incentive 
38.14 	originally offered under Laws 2010, chapter 337, to employees who retire from state 
38.15 	service during periods that the commissioner specifies before June 30, 2015. The terms and 
38.16 	conditions specified in Laws 2010, chapter 337, apply to an incentive offered under this 
38.17 	subdivision, except for the dates specified in that law for accepting the incentive and for 
38.18 	retiring, and except that the prohibition on reemployment or contracting is for the period 
38.19 	specified in this section, instead of the shorter period specified in Laws 2010, chapter 337.
38.20 		Subd. 5.Best practices. In implementing this section, the commissioner of 
38.21 	management and budget and affected agencies shall utilize best practices as identified by 
38.22 	other states that have implemented early retirement programs.
38.23 		Subd. 6.Hiring freeze. To promote streamlined government and reduced costs, 
38.24 	no state appointing authority may fill by outside hire a position vacated through state 
38.25 	employee participation in an early retirement incentive under this section.
38.26 		Subd. 7.Reemployment prohibition. An employee who receives an early 
38.27 	retirement incentive under this section may not be reemployed with the state or enter into 
38.28 	a contract with the state as a consultant for five years after termination. 
38.29 		Subd. 8.Savings. Savings resulting from implementation of this section, after 
38.30 	any payments made under subdivisions 3 and 4, must cancel back to the fund in which 
38.31 	the savings occurred.
38.32 		Subd. 9.Not applicable to elected officials. A state elected official is not a state 
38.33 	employee for purposes of this section.
38.34 		Subd. 10.Application of Public Employment Labor Relations Act. Unilateral 
38.35 	implementation of this section, including, but not limited to, the provision of an early 
39.1 	retirement incentive by the appointing authority, is not an unfair labor practice under 
39.2 	chapter 179A.

39.3 	Sec. 36. Minnesota Statutes 2010, section 45.013, is amended to read:
39.4 	45.013 POWER TO APPOINT STAFF.
39.5 	The commissioner of commerce may appoint fourone deputy commissioners, four 
39.6 	assistant commissioners, and an assistant to the commissioner. Those positions, as well as 
39.7 	that ofand a confidential secretary, arein the unclassified service. The commissioner may 
39.8 	appoint other employees necessary to carry out the duties and responsibilities entrusted to 
39.9 	the commissioner.

39.10 	Sec. 37. Minnesota Statutes 2010, section 84.01, subdivision 3, is amended to read:
39.11 		Subd. 3.Employees; delegation. Subject to the provisions of Laws 1969, chapter 
39.12 	1129, and to other applicable laws The commissioner shall organize the department and 
39.13 	employ up to three assistant commissioners, each of whom shall serve at the pleasure of 
39.14 	the commissioner in the unclassified service, one of whom shall have responsibility for 
39.15 	coordinating and directing the planning of every division within the agency, and such other
39.16 	officers, employees, and agents as the commissioner may deem necessary to discharge the 
39.17 	functions of the department, define the duties of such officers, employees, and agents and 
39.18 	to delegate to them any of the commissioner's powers, duties, and responsibilities subject 
39.19 	to the control of, and under the conditions prescribed by, the commissioner. Appointments 
39.20 	to exercise delegated power shall be by written order filed with the secretary of state.

39.21 	Sec. 38. Minnesota Statutes 2010, section 116.03, subdivision 1, is amended to read:
39.22 		Subdivision 1.Office. (a) The office of commissioner of the Pollution Control 
39.23 	Agency is created and is under the supervision and control of the commissioner, who is 
39.24 	appointed by the governor under the provisions of section 15.06.  
39.25 	(b) The commissioner may appoint a deputy commissioner and assistant 
39.26 	commissioners who shall be in the unclassified service.
39.27 	(c) The commissioner shall make all decisions on behalf of the agency that are not 
39.28 	required to be made by the agency under section 116.02.  

39.29 	Sec. 39. Minnesota Statutes 2010, section 116J.01, subdivision 5, is amended to read:
39.30 		Subd. 5.Departmental organization. (a) The commissioner shall organize the 
39.31 	department as provided in section 15.06. 
40.1 	(b) The commissioner may establish divisions and offices within the department. 
40.2 	The commissioner may employ four deputy commissioners in the unclassified service.
40.3 	(c) The commissioner shall:
40.4 	(1) employ assistants and other officers, employees, and agents that the commissioner 
40.5 	considers necessary to discharge the functions of the commissioner's office;
40.6 	(2) define the duties of the officers, employees, and agents, and delegate to them any 
40.7 	of the commissioner's powers, duties, and responsibilities, subject to the commissioner's 
40.8 	control and under conditions prescribed by the commissioner.
40.9 	(d) The commissioner shall ensure that there are at least three employment and 
40.10 	economic development officers in state offices in nonmetropolitan areas of the state who 
40.11 	will work with local units of government on developing local employment and economic 
40.12 	development.

40.13 	Sec. 40. Minnesota Statutes 2010, section 116J.035, subdivision 4, is amended to read:
40.14 		Subd. 4.Delegation of powers. The commissioner may delegate, in written orders 
40.15 	filed with the secretary of state, any powers or duties subject to the commissioner's 
40.16 	control to officers and employees in the department. Regardless of any other law, the 
40.17 	commissioner may delegate the execution of specific contracts or specific types of 
40.18 	contracts to the commissioner's deputies, an assistant commissioner, deputy or a program 
40.19 	director if the delegation has been approved by the commissioner of administration and 
40.20 	filed with the secretary of state.

40.21 	Sec. 41. Minnesota Statutes 2010, section 174.02, subdivision 2, is amended to read:
40.22 		Subd. 2.Unclassified positions. The commissioner may establish four positions 
40.23 	in the unclassified service at theappoint a deputy and assistant commissioner, assistant 
40.24 	to commissioner orand a personal secretary levels. No more than two of these positions 
40.25 	shall be at the deputy commissioner level in the unclassified service.

40.26 	Sec. 42. Minnesota Statutes 2010, section 241.01, subdivision 2, is amended to read:
40.27 		Subd. 2.Deputies Deputy. The commissioner of corrections may appoint and 
40.28 	employ no more than twoa deputy commissioners commissioner. The commissioner may 
40.29 	also appoint a personal secretary, who shall serve at the commissioner's pleasure in the 
40.30 	unclassified civil service.

41.1 	Sec. 43. Minnesota Statutes 2010, section 270C.41, is amended to read:
41.2 	270C.41 AGREEMENT WITH INTERNAL REVENUE SERVICE FEDERAL 
41.3 	GOVERNMENT.
41.4 		Subdivision 1.Agreement with Internal Revenue Service.  Pursuant to section 
41.5 	270B.12, the commissioner may enter into an agreement with the Internal Revenue 
41.6 	Service to identify taxpayers who have refunds due from the department and liabilities 
41.7 	owing to the Internal Revenue Service. In accordance with the procedures established in 
41.8 	the agreement, the Internal Revenue Service may levy against the refunds to be paid by 
41.9 	the department. For each refund levied upon, the commissioner shall first deduct from 
41.10 	the refund a fee of $20, and then remit the refund or the amount of the levy, whichever 
41.11 	is less, to the Internal Revenue Service. The proceeds of fees shall be deposited into the 
41.12 	Department of Revenue recapture revolving fund under section 270A.07, subdivision 1.
41.13 		Subd. 2.Reciprocal offset agreements.  The commissioner is authorized to enter 
41.14 	into agreements with the federal Department of the Treasury that provide for offsetting 
41.15 	state payments against federal nontax obligations. The commissioner may charge a fee 
41.16 	of $20 per transaction for the offsets and may collect this offset fee from the debtor by 
41.17 	deducting it from the state payment. The agreement may provide for offsetting federal 
41.18 	payments as authorized by federal law against state tax and nontax obligations, and 
41.19 	collecting the offset cost from the debtor. The agreement shall provide that the federal 
41.20 	Department of the Treasury may deduct a fee from each administrative offset and state 
41.21 	payment offset. Setoffs to collect state and other entity obligations under chapters 16D, 
41.22 	270A, 270C, and any other provision of Minnesota Statutes occur before a state payment 
41.23 	offset. For purposes of this paragraph, "administrative offset" is any offset of federal 
41.24 	payments to collect state debts, and "state payment offset" is any offset of state payments 
41.25 	to collect federal nontax debts.

41.26 	Sec. 44. STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT 
41.27 	ELIGIBILITY VERIFICATION AUDIT SERVICES.
 41.28 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner of 
41.29 	management and budget shall issue a request for proposals for a contract to provide 
41.30 	dependent eligibility verification audit services for state-paid hospital, medical, and dental 
41.31 	benefits provided to state employees and their dependents. The request for proposals 
41.32 	must require that the vendor will:
41.33 	(1) conduct a document-model dependent eligibility verification audit of all plans 
41.34 	offered under Minnesota Statutes, sections 43A.22 to 43A.31;
42.1 	(2) identify ineligible dependents covered by the plans and report those findings to 
42.2 	the commissioner and third-party administrators of the state's employee health plans, as 
42.3 	directed by the commissioner; and
42.4 	(3) implement a process for ongoing eligibility verification following the conclusion 
42.5 	of the dependent eligibility verification audit required by this section.
42.6 		Subd. 2.Additional vendor criteria. The request for proposals required by 
42.7 	subdivision 1 must require the vendor to provide the following minimum capabilities and 
42.8 	experience in performing the services described in subdivision 1:
42.9 	(1) a rules-based platform employing auto-adjudication for making objective 
42.10 	eligibility determinations;
42.11 	(2) assigned eligibility advocates to assist employees through the verification 
42.12 	process;
42.13 	(3) a formal claims and appeals process; and
42.14 	(4) experience in the performance of dependent eligibility verification audits for 
42.15 	other states.
42.16 		Subd. 3.Contract required. By September 1, 2011, the commissioner must enter 
42.17 	into a contract for the services specified in subdivision 1. The contract must incorporate 
42.18 	a performance-based vendor financing option that compensates the vendor based on the 
42.19 	amount of savings generated by the work performed under the contract.
42.20 		Subd. 4.Managerial policy. The commissioner's duties and responsibilities under 
42.21 	this section are matters of inherent managerial policy under Minnesota Statutes, section 
42.22 	179A.07, subdivision 1. The commissioner is under no obligation to meet and negotiate 
42.23 	concerning duties and responsibilities assigned to the commissioner under this section.

42.24 	Sec. 45. STATE BUILDING EFFICIENCY.
 42.25 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner 
42.26 	of administration shall issue a request for proposals for a contract to provide 
42.27 	recommendations for efficiencies in state building management to the commissioner. The 
42.28 	request for proposals shall require the vendor to provide a system that will overlay existing 
42.29 	building controls and instrumentation that influence energy consumption, including space, 
42.30 	equipment and system performance, facility operations, and facility maintenance. The 
42.31 	request for proposals shall require the vendor to provide a system that provides concurrent 
42.32 	building monitoring, energy consumption optimization, space utilization, and equipment 
42.33 	performance information.
42.34 		Subd. 2.Open platform system with data analytics. The request for proposals 
42.35 	must require the vendor to provide: (1) an open platform system with the capability to 
43.1 	integrate and coordinate a variety of control systems, including their data, and the ability 
43.2 	to manage all state buildings and their control systems; and (2) a system that uses data 
43.3 	analytics to integrate corrective action notification and work order management.
43.4 		Subd. 3.Proof of concept phase. The request for proposals shall require the 
43.5 	selected vendor, at no cost to the state, to begin work on the contract by implementing 
43.6 	its proposed system on one to three instrumented state buildings to demonstrate the 
43.7 	savings provided by the system. The system provided by the vendor must be capable of 
43.8 	application to all state-owned buildings.
43.9 		Subd. 4.Full implementation and payment. The request for proposal must require 
43.10 	the state to implement the system  provided by the vendor in all buildings owned by the 
43.11 	state if the work done under the requirements of subdivision 3 provides material savings to 
43.12 	the state. After the full implementation of the system provided by the vendor, the vendor 
43.13 	shall be paid by the state from the savings attributable to the work done by the vendor, 
43.14 	according to the terms and performance measures negotiated in the contract.
43.15 		Subd. 5.Selection of vendor. The commissioner of administration shall select a 
43.16 	vendor from the responses to the request for proposal by September 1, 2011.
43.17 		Subd. 6.Progress report. The commissioner shall provide a report describing the 
43.18 	progress made under this section to the governor and the chairs and ranking minority 
43.19 	members of the legislative committees with jurisdiction over the commissioner of 
43.20 	administration by January 15, 2012. The report shall provide a dynamic scoring analysis 
43.21 	of the work described in the report.

43.22 	Sec. 46. FLEET MANAGEMENT IMPROVEMENTS.
 43.23 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner of 
43.24 	administration shall issue a request for proposals to improve the procurement, allocation, 
43.25 	control, energy efficiency, maintenance, and in-service life of state vehicles. The request 
43.26 	for proposal shall require the vendor to provide a system for:
43.27 	(1) a life-cycle solution for vehicle management, covering all stages from 
43.28 	procurement through disposal of state vehicles; and
43.29 	(2) the integration of data analytics to provide vehicle tracking, usage, and proactive 
43.30 	maintenance management.
43.31 		Subd. 2.Proof of concept phase. The request for proposals must specify that the 
43.32 	vendor, at no cost to the state, must implement its system in one vehicle maintenance 
43.33 	facility on a sample group of vehicles to demonstrate the cost-savings potential of the 
43.34 	recommendations.
44.1 		Subd. 3.Full implementation and payment. The request for proposal must require 
44.2 	the state to implement the recommendations provided by the vendor if the work done 
44.3 	under the requirements of subdivision 2 provides material savings to the state. After the 
44.4 	full implementation of the system provided by the vendor, the vendor shall be paid by 
44.5 	the state from the savings attributable to the work done by the vendor, according to the 
44.6 	terms and performance measures negotiated in the contract.
44.7 		Subd. 4.Selection of vendor. The commissioner of administration shall select a 
44.8 	vendor from the responses to the request for proposal by September 1, 2011.
44.9 		Subd. 5.Progress report. The commissioner shall provide a report describing the 
44.10 	progress made under this section to the governor and the chairs and ranking minority 
44.11 	members of the legislative committees with jurisdiction over the commissioner of 
44.12 	administration by January 15, 2012. The report shall provide a dynamic scoring analysis 
44.13 	of the work described in the report.

44.14 	Sec. 47. TAX FRAUD PREVENTION AND DETECTION.
 44.15 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner of 
44.16 	revenue shall issue a request for proposals to prevent and detect tax fraud and increase 
44.17 	delinquent tax revenue collection. The request for proposals shall require the vendor to 
44.18 	provide data analytics capabilities, including, but not limited to, predictive modeling 
44.19 	techniques and other forms of advanced analytics that will integrate into the current tax 
44.20 	processing system to detect compliance issues before tax return processing is completed, 
44.21 	and optimization algorithms that will assist the commissioner in maximizing revenues 
44.22 	collected with current levels of compliance staff.
44.23 		Subd. 2.Proof of concept phase. The selected vendor, at no cost to the state, shall 
44.24 	implement its recommendations on a subset of data provided by the commissioner to 
44.25 	demonstrate the cost-savings potential of the recommendations.
44.26 		Subd. 3.Data. Data provided to the vendor by the commissioner for the proof of 
44.27 	concept phase must not include not public data, as defined in section 13.02, subdivision 8a.
44.28 		Subd. 4.Full implementation phase. The request for proposal must require the 
44.29 	state to implement the recommendations provided by the vendor if the work done under 
44.30 	the requirements of subdivision 2 provides material savings to the state. After the full 
44.31 	implementation of the system provided by the vendor, the vendor shall be paid by the state 
44.32 	from the savings attributable to the work done by the vendor, according to the terms and 
44.33 	performance measures negotiated in the contract.
44.34 		Subd. 5.Selection of vendor. The commissioner of administration shall select a 
44.35 	vendor from the responses to the request for proposal by September 1, 2011.
45.1 		Subd. 6.Progress report. The commissioner shall provide a report describing the 
45.2 	progress made under this section to the governor and the chairs and ranking minority 
45.3 	members of the legislative committees with jurisdiction over the commissioner of revenue 
45.4 	by January 15, 2012. The report shall provide a dynamic scoring analysis of the work 
45.5 	described in the report.

45.6 	Sec. 48. STRATEGIC SOURCING REQUEST FOR PROPOSALS.
 45.7 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner 
45.8 	of administration shall issue a request for proposals for a contract to provide 
45.9 	recommendations for efficiencies in strategic sourcing to the commissioner. For the 
45.10 	purposes of this section, "strategic sourcing" has the meaning given in Minnesota Statutes, 
45.11 	section 16C.02, subdivision 20. The request for proposals shall require the vendor to 
45.12 	provide recommendations for improvements to methods used by the commissioner 
45.13 	to analyze and reduce spending on goods and services, including, but not limited to, 
45.14 	spend analysis, product standardization, contract consolidation, negotiations, multiple 
45.15 	jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and 
45.16 	other techniques.
45.17 		Subd. 2.Proof of concept phase. The request for proposal shall require the selected 
45.18 	vendor, at no cost to the state, to begin work on the contract by assisting the commissioner 
45.19 	in implementing its proposed solution on selected state procurement processes to 
45.20 	demonstrate the savings provided by the recommendations. The system provided by the 
45.21 	vendor must be capable of application to the state procurement system.
45.22 		Subd. 3.Full implementation and payment. The request for proposal must require 
45.23 	the state to implement the recommendations provided by the vendor in the entire state 
45.24 	procurement system if the work done under the requirements of subdivision 2 provides 
45.25 	material savings to the state. After the full implementation of the system provided by the 
45.26 	vendor, the vendor shall be paid by the state from the savings attributable to the work done 
45.27 	by the vendor, according to the terms and performance measures negotiated in the contract.
45.28 		Subd. 4.Selection of vendor. The commissioner of administration shall select a 
45.29 	vendor from the responses to the request for proposal by September 1, 2011.
45.30 		Subd. 5.Progress report. The commissioner shall provide a report describing the 
45.31 	progress made under this section to the governor and the chairs and ranking minority 
45.32 	members of the legislative committees with jurisdiction over the commissioner of 
45.33 	administration by January 15, 2012.