1.1 	A bill for an act
1.2 	relating to state government operations; reducing general fund appropriations 
1.3 	to executive agencies; requiring contributions to enterprise real property 
1.4 	technology system; establishing the Sunset Advisory Commission; allowing 
1.5 	counties and cities to use a certified public accountant for audits; prohibiting 
1.6 	legislative liaisons; eliminating assistant commissioner positions and reducing 
1.7 	deputy commissioner positions; allowing state employees to compete for state 
1.8 	business; establishing the SAVI program; changing provisions of performance 
1.9 	data required in the budget proposal; requiring specific funding information for 
1.10 	forecasted programs; implementing zero-based budgeting principles; establishing 
1.11 	employee gainsharing program; establishing the Minnesota Pay for Performance 
1.12 	Act; permitting selling and issuing appropriations bonds; establishing e-verify 
1.13 	program for vendors and subcontractors; placing limitation on contracts for 
1.14 	tax-related activities; changing procedures for service contracts; extending 
1.15 	expiration date for Mississippi River Parkway Commission; implementing 
1.16 	federal offset program for collection of debts owed to state agencies; changing 
1.17 	provisions for performance appraisal system; requiring reduction in state work 
1.18 	force; allowing reciprocal offset agreements with the federal government; 
1.19 	requiring a request for proposals for recommendations on state building 
1.20 	efficiency, state vehicle management, tax fraud prevention, and strategic 
1.21 	sourcing; continuing state employee salary freeze; implementing state employee 
1.22 	efficient use of health care incentive program; requiring a verification audit 
1.23 	for dependent eligibility for state employee health insurance; requiring state 
1.24 	job classification redesign; determining funds for Help America Vote Act; 
1.25 	estimating new general fund revenues; consolidating information technology 
1.26 	services; requiring reports; appropriating money;amending Minnesota Statutes 
1.27 	2010, sections 3.85, subdivision 3; 6.48; 15.057; 15.06, subdivision 8; 16A.10, 
1.28 	subdivisions 1a, 1b, 1c; 16A.103, subdivision 1a; 16A.11, subdivision 3; 
1.29 	16A.28, subdivision 3; 16B.03; 16B.99; 16C.08, subdivision 2; 16C.09; 
1.30 	16E.14, by adding a subdivision; 37.06; 43A.08, subdivision 1; 43A.20; 
1.31 	45.013; 84.01, subdivision 3; 116.03, subdivision 1; 116J.01, subdivision 
1.32 	5; 116J.035, subdivision 4; 161.1419, subdivision 8; 174.02, subdivision 2; 
1.33 	241.01, subdivision 2; 270C.41; 270C.545; 471.697, subdivision 2; Laws 2009, 
1.34 	chapter 101, article 2, section 106; Laws 2010, chapter 215, article 6, section 4; 
1.35 	Laws 2010, chapter 361, article 3, section 8; proposing coding for new law in 
1.36 	Minnesota Statutes, chapters 15; 16A; 16C; 16D; 16E; 43A; proposing coding 
1.37 	for new law as Minnesota Statutes, chapter 3D; repealing Minnesota Statutes 
1.38 	2010, sections 16C.085; 43A.047; 179A.23; 197.585, subdivision 5.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	ARTICLE 1
2.3 	STATE GOVERNMENT APPROPRIATIONS

2.4	Section 1. STATE GOVERNMENT APPROPRIATIONS.
 	
2.5 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.6 	agencies and for the purposes specified in this article. The appropriations are from the 
2.7 	general fund, or another named fund, and are available for the fiscal years indicated 
2.8 	for each purpose. The figures "2012" and "2013" used in this article mean that the 
2.9 	appropriations listed under them are available for the fiscal year ending June 30, 2012, or 
2.10 	June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal 
2.11 	year 2013. "The biennium" is fiscal years 2012 and 2013. 

2.12				APPROPRIATIONS
	
2.13				Available for the Year
	
2.14				Ending June 30
	
2.15					2012
		2013

2.16	Sec. 2. LEGISLATURE

2.17	Subdivision 1.Total Appropriation
 	$
	63,070,000
	$
	63,070,000

2.18	Appropriations by Fund
	
2.19		2012
	2013
	
2.20	General
	62,942,000
	62,942,000
	
2.21	Health Care Access
	128,000
	128,000
	
2.22 	The amounts that may be spent for each 
2.23 	purpose are specified in the following 
2.24 	subdivisions.

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

2.26	Subd. 3.House of Representatives
 		27,874,000
		27,874,000
	
2.27 	During the biennium ending June 30, 2013, 
2.28 	any revenues received by the house of 
2.29 	representatives from voluntary donations 
2.30 	to support broadcast or print media are 
2.31 	appropriated to the house of representatives.

2.32	Subd. 4.Legislative Coordinating Commission
 		14,463,000
		14,463,000

3.1	Appropriations by Fund
	
3.2	General
	14,335,000
	14,335,000
	
3.3	Health Care Access 
	128,000
	128,000
	
3.4 	From its funds, $10,000 each year is for 
3.5 	purposes of the legislators' forum, through 
3.6 	which Minnesota legislators meet with 
3.7 	counterparts from South Dakota, North 
3.8 	Dakota, and Manitoba to discuss issues of 
3.9 	mutual concern.

3.10
3.11	Sec. 3. GOVERNOR AND LIEUTENANT 
GOVERNOR
 	$
	3,027,000
	$
	3,027,000
	
3.12 	(a) This appropriation is to fund the Office of 
3.13 	the Governor and Lieutenant Governor.
3.14 	(b) By September 1 of each year, the 
3.15 	commissioner of management and budget 
3.16 	shall report to the chairs and ranking 
3.17 	minority members of the senate State 
3.18 	Government Innovation and Veterans Affairs 
3.19 	Committee and the house of representatives 
3.20 	State Government Finance Committee any 
3.21 	personnel costs incurred by the Offices of the 
3.22 	Governor and Lieutenant Governor that were 
3.23 	supported by appropriations to other agencies 
3.24 	during the previous fiscal year. The Office 
3.25 	of the Governor shall inform the chairs and 
3.26 	ranking minority members of the committees 
3.27 	before initiating any interagency agreements.
3.28 	(c) During the biennium ending June 30, 
3.29 	2013, the Office of the Governor may not 
3.30 	receive payments of more than $670,000 each 
3.31 	fiscal year from other executive agencies 
3.32 	under Minnesota Statutes, section 15.53, to 
3.33 	support office costs incurred by the office. 
3.34 	Payments received under this paragraph must 
3.35 	be deposited in a special revenue account. 
4.1 	Money in the account is appropriated to the 
4.2 	Office of the Governor. The authority in 
4.3 	this paragraph supersedes other law enacted 
4.4 	in 2011 that limits the ability of the office 
4.5 	to enter into agreements relating to office 
4.6 	costs with other executive branch agencies 
4.7 	or prevents the use of appropriations made to 
4.8 	other agencies for agreements with the office 
4.9 	under Minnesota Statutes, section 15.53.

4.10	Sec. 4. STATE AUDITOR
 	$
	8,008,000
	$
	8,008,000

4.11	Sec. 5. ATTORNEY GENERAL
 	$
	21,819,000
	$
	21,819,000

4.12	Appropriations by Fund
	
4.13		2012
	2013
	
4.14	General
	19,540,000
	19,540,000
	
4.15
4.16	State Government 
Special Revenue
	1,884,000
	1,884,000
	
4.17	Environmental
	145,000
	145,000
	
4.18	Remediation
	250,000
	250,000
	
4.19 	Of this appropriation, $65,000 in the first 
4.20 	year and $65,000 in the second year are 
4.21 	from the general fund for transfer to the 
4.22 	commissioner of public safety for a grant to 
4.23 	the Minnesota County Attorneys Association 
4.24 	for prosecutor and law enforcement training.

4.25	Sec. 6. SECRETARY OF STATE
 	$
	5,206,000
	$
	5,206,000
	
4.26 	Any funds available in the account 
4.27 	established in Minnesota Statutes, section 
4.28 	5.30, pursuant to the Help America Vote 
4.29 	Act, after funds appropriated in other laws 
4.30 	enacted during the 2011 regular session are 
4.31 	allotted for purposes specified in those laws, 
4.32 	are appropriated for the purposes and uses 
4.33 	authorized by federal law.

5.1
5.2	Sec. 7. CAMPAIGN FINANCE AND PUBLIC 
DISCLOSURE BOARD
 	$
	689,000
	$
	689,000

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

5.4	Sec. 9. ADMINISTRATIVE HEARINGS
 	$
	7,627,000
	$
	7,504,000

5.5	Appropriations by Fund
	
5.6		2012
	2013
	
5.7	General
	377,000
	254,000
	
5.8
5.9	Workers' 
Compensation
	7,250,000
	7,250,000
	
5.10 	$130,000 in the first year is for the cost 
5.11 	of considering complaints filed under 
5.12 	Minnesota Statutes, section 211B.32. Until 
5.13 	June 30, 2013, the chief administrative 
5.14 	law judge may not make any assessment 
5.15 	against a county or counties under Minnesota 
5.16 	Statutes, section 211B.37. Any amount of 
5.17 	this appropriation that remains unspent at 
5.18 	the end of the biennium must be canceled 
5.19 	to the general account of the state elections 
5.20 	campaign fund. The base for fiscal year 2014 
5.21 	is $130,000, to be available for the biennium, 
5.22 	under the same terms.

5.23
5.24	Sec. 10. OFFICE OF ENTERPRISE 
TECHNOLOGY
 	$
	4,636,000
	$
	4,636,000
	
5.25 	During the biennium ending June 30, 2013, 
5.26 	the office must not charge fees to a public 
5.27 	noncommercial educational television 
5.28 	broadcast station for access to the state 
5.29 	information infrastructure.

5.30	Sec. 11. ADMINISTRATION

5.31	Subdivision 1.Total Appropriation
 	$
	17,789,000
	$
	17,789,000
	
6.1 	The amounts that may be spent for each 
6.2 	purpose are specified in the following 
6.3 	subdivisions.

6.4	Subd. 2.Government and Citizen Services
 		14,670,000
		14,670,000
	
6.5 	$74,000 the first year and $74,000 the second 
6.6 	year are for the Council on Developmental 
6.7 	Disabilities.
6.8 	$8,158,000 the first year and $8,158,000 
6.9 	the second year are for office space costs of 
6.10 	the legislature and veterans organizations, 
6.11 	ceremonial space, and statutorily free space.

6.12	Subd. 3.Administrative Management Support
 		1,494,000
		1,494,000

6.13	Subd. 4.Public Broadcasting
 		1,625,000
		1,625,000
	
6.14 	(a) The appropriations under this section are 
6.15 	to the commissioner of administration for the 
6.16 	purposes specified.
6.17 	(b) $1,002,000 the first year and $1,002,000 
6.18 	the second year are for matching grants for 
6.19 	public television.
6.20 	(c) $190,000 the first year and $190,000 
6.21 	the second year are for public television 
6.22 	equipment grants. Equipment or matching 
6.23 	grant allocations shall be made after 
6.24 	considering the recommendations of the 
6.25 	Minnesota Public Television Association.
6.26 	(d) $264,000 the first year and $264,000 the 
6.27 	second year are for community service grants 
6.28 	to public educational radio stations.
6.29 	(e) $92,000 the first year and $92,000 the 
6.30 	second year are for equipment grants to 
6.31 	public educational radio stations.
6.32 	(f) The grants in paragraphs (d) and (e) 
6.33 	must be allocated after considering the 
7.1 	recommendations of the Association of 
7.2 	Minnesota Public Educational Radio Stations 
7.3 	under Minnesota Statutes, section 129D.14.
7.4 	(g) $77,000 the first year and $77,000 the 
7.5 	second year are for grants to Minnesota 
7.6 	Public Radio, Inc., for upgrades to 
7.7 	Minnesota's Emergency Alert and AMBER 
7.8 	Alert Systems.
7.9 	(h) Any unencumbered balance remaining 
7.10 	the first year for grants to public television or 
7.11 	radio stations does not cancel and is available 
7.12 	for the second year.

7.13
7.14
7.15	Sec. 12. CAPITOL AREA 
ARCHITECTURAL AND PLANNING 
BOARD
 	$
	325,000
	$
	325,000

7.16
7.17	Sec. 13. MINNESOTA MANAGEMENT AND 
BUDGET
 	$
	17,225,000
	$
	17,225,000

7.18	Sec. 14. REVENUE

7.19	Subdivision 1.Total Appropriation
 	$
	129,963,000
	$
	130,013,000

7.20	Appropriations by Fund
	
7.21		2012
	2013
	
7.22	General
	125,728,000
	125,778,000
	
7.23	Health Care Access
	1,749,000
	1,749,000
	
7.24
7.25	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
7.26	Environmental
	303,000
	303,000
	
7.27 	The amounts that may be spent for each 
7.28 	purpose are specified in subdivisions 2 and 3.
7.29 	The commissioner must implement 
7.30 	any reduction in funding by reducing 
7.31 	administrative support functions before any 
7.32 	reduction to compliance and enforcement 
7.33 	programs.

7.34	Subd. 2.Tax System Management
 		103,992,000
		104,042,000

8.1	Appropriations by Fund
	
8.2	General
	99,757,000
	99,807,000
	
8.3	Health Care Access
	1,749,000
	1,749,000
	
8.4
8.5	Highway User Tax 
Distribution
	2,183,000
	2,183,000
	
8.6	Environmental
	303,000
	303,000

8.7	Subd. 3.Debt Collection Management
 		25,971,000
		25,971,000

8.8	Sec. 15. GAMBLING CONTROL
 	$
	2,740,000
	$
	2,740,000
	
8.9 	These appropriations are from the lawful 
8.10 	gambling regulation account in the special 
8.11 	revenue fund.

8.12	Sec. 16. RACING COMMISSION
 	$
	899,000
	$
	899,000
	
8.13 	These appropriations are from the racing 
8.14 	and card playing regulation accounts in the 
8.15 	special revenue fund.

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

8.17	Sec. 18. EXPLORE MINNESOTA TOURISM
 	$
	8,369,000
	$
	8,269,000
	
8.18 	(a) Of this amount, $12,000 each year is for a 
8.19 	grant to the Upper Minnesota Film Office.
8.20 	(b)(1) To develop maximum private sector 
8.21 	involvement in tourism, $500,000 the first 
8.22 	year and $500,000 the second year must 
8.23 	be matched by Explore Minnesota Tourism 
8.24 	from nonstate sources. Each $1 of state 
8.25 	incentive must be matched with $3 of private 
8.26 	sector funding. Cash match is defined as 
8.27 	revenue to the state or documented cash 
8.28 	expenditures directly expended to support 
8.29 	Explore Minnesota Tourism programs. Up 
8.30 	to one-half of the private sector contribution 
8.31 	may be in-kind or soft match. The incentive 
8.32 	in the first year shall be based on fiscal 
9.1 	year 2011 private sector contributions. The 
9.2 	incentive in the second year will be based on 
9.3 	fiscal year 2012 private sector contributions. 
9.4 	This incentive is ongoing.
9.5 	(2) Funding for the marketing grants is 
9.6 	available either year of the biennium. 
9.7 	Unexpended grant funds from the first year 
9.8 	are available in the second year.
9.9 	(3) Unexpended money from the general 
9.10 	fund appropriations made under this section 
9.11 	does not cancel but must be placed in a 
9.12 	special marketing account for use by Explore 
9.13 	Minnesota Tourism for additional marketing 
9.14 	activities.
9.15 	(c) $325,000 the first year and $325,000 the 
9.16 	second year are for the Minnesota Film and 
9.17 	TV Board. The appropriation in each year 
9.18 	is available only upon receipt by the board 
9.19 	of $1 in matching contributions of money or 
9.20 	in-kind contributions from nonstate sources 
9.21 	for every $3 provided by this appropriation, 
9.22 	except that each year up to $50,000 is 
9.23 	available on July 1 even if the required 
9.24 	matching contribution has not been received 
9.25 	by that date.
9.26 	(d) $100,000 the first year is for a grant to the 
9.27 	Minnesota Film and TV Board for the film 
9.28 	jobs production program under Minnesota 
9.29 	Statutes, section 116U.26. This appropriation 
9.30 	is available until expended.

9.31
9.32	Sec. 19. MINNESOTA HISTORICAL 
SOCIETY

9.33	Subdivision 1.Total Appropriation
 	$
	20,141,000
	$
	20,037,000
	
10.1 	The amounts that may be spent for each 
10.2 	purpose are specified in the following 
10.3 	subdivisions.

10.4	Subd. 2.Education and Outreach
 		11,336,000
		11,336,000
	
10.5 	Notwithstanding Minnesota Statutes, section 
10.6 	138.668, the Minnesota Historical Society 
10.7 	may not charge a fee for its general tours at 
10.8 	the Capitol, but may charge fees for special 
10.9 	programs other than general tours.

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

10.11	Subd. 4.Fiscal Agent

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

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

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

10.15	(d) Farmamerica
		115,000
		115,000

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

10.17	(f) Balances Forward
					
10.18 	Any unencumbered balance remaining in 
10.19 	this subdivision the first year does not cancel 
10.20 	but is available for the second year of the 
10.21 	biennium.

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

10.28	Sec. 20. BOARD OF THE ARTS

10.29	Subdivision 1.Total Appropriation
 	$
	7,089,000
	$
	7,089,000
	
11.1 	The amounts that may be spent for each 
11.2 	purpose are specified in the following 
11.3 	subdivisions.

11.4	Subd. 2.Operations and Services
 		536,000
		536,000

11.5	Subd. 3.Grants Program
 		 4,533,000
		4,533,000

11.6	Subd. 4.Regional Arts Councils
 		 2,020,000
		2,020,000

11.7	Subd. 5.Unencumbered balance available
 					
11.8 	Any unencumbered balance remaining in this 
11.9 	section the first year does not cancel, but is 
11.10 	available for the second year of the biennium.

11.11
11.12	Sec. 21. MINNESOTA HUMANITIES 
CENTER
 	$
	225,000
	$
	225,000

11.13
11.14	Sec. 22. COUNCIL ON BLACK 
MINNESOTANS
 	$
	246,000
	$
	246,000

11.15
11.16	Sec. 23. COUNCIL ON ASIAN-PACIFIC 
MINNESOTANS
 	$
	214,000
	$
	214,000

11.17
11.18	Sec. 24. COUNCIL ON AFFAIRS OF 
CHICANO/LATINO PEOPLE
 	$
	231,000
	$
	231,000

11.19	Sec. 25. INDIAN AFFAIRS COUNCIL
 	$
	422,000
	$
	422,000
	
11.20 	Of this appropriation $167,000 each year is 
11.21 	for a cultural resources specialist to assist the 
11.22 	council with the duties assigned to it relating 
11.23 	to Indian burial grounds under Minnesota 
11.24 	Statutes, section 307.08.

11.25
11.26	Sec. 26. SCIENCE MUSEUM OF 
MINNESOTA
 	$
	1,009,000
	$
	1,009,000

11.27	Sec. 27. TORT CLAIMS
 	$
	161,000
	$
	161,000
	
11.28 	These appropriations are to be spent by the 
11.29 	commissioner of management and budget 
11.30 	according to Minnesota Statutes, section 
12.1 	3.736, subdivision 7. If the appropriation for 
12.2 	either year is insufficient, the appropriation 
12.3 	for the other year is available for it.

12.4
12.5	Sec. 28. MINNESOTA STATE RETIREMENT 
SYSTEM

12.6	Subdivision 1.Total Appropriation
 	$
	472,000
	$
	481,000
	
12.7 	The amounts that may be spent for each 
12.8 	purpose are specified in the following 
12.9 	subdivisions.
12.10 	During the biennium ending June 30, 2013, 
12.11 	payments for retirement allowances for 
12.12 	former legislators and surviving spouses 
12.13 	must be made from the legislators retirement 
12.14 	fund created under Minnesota Statutes, 
12.15 	section 3A.03, subdivision 3, and not from 
12.16 	the general fund.

12.17	Subd. 2. Constitutional Officers
 		472,000
		481,000
	
12.18 	Under Minnesota Statutes, section 352C.001, 
12.19 	if an appropriation in this section for either 
12.20 	year is insufficient, the appropriation for the 
12.21 	other year is available for it.

12.22	Sec. 29. MERF DIVISION ACCOUNT
 	$
	22,750,000
	$
	22,750,000
	
12.23 	These amounts are estimated to be needed 
12.24 	under Minnesota Statutes, section 353.505.

12.25
12.26	Sec. 30. TEACHERS RETIREMENT 
ASSOCIATION
 	$
	15,454,000
	$
	15,454,000
	
12.27 	The amounts estimated to be needed are as 
12.28 	follows:
12.29 	(a) Special direct state aid. $12,954,000 the 
12.30 	first year and $12,954,000 the second year 
12.31 	are for special direct state aid authorized 
13.1 	under Minnesota Statutes, section 354A.12, 
13.2 	subdivisions 3a and 3c.
13.3 	(b) Special direct state matching aid.
13.4 	$2,500,000 the first year and $2,500,000 
13.5 	the second year are for special direct state 
13.6 	matching aid authorized under Minnesota 
13.7 	Statutes, section 354A.12, subdivision 3b.

13.8
13.9	Sec. 31. ST. PAUL TEACHERS 
RETIREMENT FUND
 	$
	2,827,000
	$
	2,827,000
	
13.10 	The amounts estimated to be needed for 
13.11 	special direct state aid to first class city 
13.12 	teachers retirement funds authorized under 
13.13 	Minnesota Statutes, section 354A.12, 
13.14 	subdivisions 3a and 3c.

13.15
13.16	Sec. 32. DULUTH TEACHERS 
RETIREMENT FUND
 	$
	346,000
	$
	346,000
	
13.17 	The amounts estimated to be needed for 
13.18 	special direct state aid to first class city 
13.19 	teachers retirement funds authorized under 
13.20 	Minnesota Statutes, section 354A.12, 
13.21 	subdivisions 3a and 3c.

13.22	Sec. 33. STATE LOTTERY
 					
13.23 	Notwithstanding Minnesota Statutes, section 
13.24 	349A.10, subdivision 3, the operating budget 
13.25 	must not exceed $29,000,000 in fiscal year 
13.26 	2012 and $29,000,000 in fiscal year 2013.

13.27
13.28	Sec. 34. GENERAL CONTINGENT 
ACCOUNTS
 	$
	600,000
	$
	500,000

13.29	Appropriations by Fund
	
13.30		2012
	2013
	
13.31	General
	100,000
	-0-
	
14.1
14.2	State Government 
Special Revenue
	400,000
	400,000
	
14.3
14.4	Workers' 
Compensation
	100,000
	100,000
	
14.5 	(a) The appropriations in this section 
14.6 	may only be spent with the approval of 
14.7 	the governor after consultation with the 
14.8 	Legislative Advisory Commission pursuant 
14.9 	to Minnesota Statutes, section 3.30.
14.10 	(b) If an appropriation in this section for 
14.11 	either year is insufficient, the appropriation 
14.12 	for the other year is available for it.
14.13 	(c) If a contingent account appropriation 
14.14 	is made in one fiscal year, it should be 
14.15 	considered a biennial appropriation.

14.16 	Sec. 35. Laws 2009, chapter 101, article 2, section 106, is amended to read:
14.17 	Sec. 106. ENTERPRISE REAL PROPERTY CONTRIBUTIONS.
 14.18 	On or before June 1, 2009, the commissioner of administration shall determine the 
14.19 	amount to be contributed by each executive agency to maintain the enterprise real property 
14.20 	technology system for the fiscal year 2010 and fiscal year 2011 biennium. On or before 
14.21 	June 15, 2009, each executive agency shall enter into an agreement with the commissioner 
14.22 	of administration setting forth the manner in which the executive agency shall make its 
14.23 	contribution to the enterprise real property system, either from uncommitted fiscal year 
14.24 	2009 funds or by contributing from fiscal year 2010 and fiscal year 2011 funds to the real 
14.25 	property enterprise system and services account to fund the total amount of $399,000 for 
14.26 	the biennium. Funds will be available for the enterprise real property technology project 
14.27 	until June 30, 2013. Funds contributed under this section must be credited to the enterprise 
14.28 	real property technology system and services account.

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

14.30 	Sec. 36. PROBLEM GAMBLING APPROPRIATION.
 14.31 	$225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from 
14.32 	the lottery prize fund to the Gambling Control Board for a grant to the state affiliate 
14.33 	recognized by the National Council on Problem Gambling. The affiliate must provide 
15.1 	services to increase public awareness of problem gambling, education and training for 
15.2 	individuals and organizations providing effective treatment services to problem gamblers 
15.3 	and their families, and research relating to problem gambling. These services must be 
15.4 	complementary to and not duplicative of the services provided through the problem 
15.5 	gambling program administered by the commissioner of human services. Of this 
15.6 	appropriation, $50,000 in fiscal year 2012 and $50,000 in fiscal year 2013 are contingent 
15.7 	on the contribution of nonstate matching funds. Matching funds may be either cash or 
15.8 	qualifying in-kind contributions. The commissioner of management and budget may 
15.9 	disburse the state portion of the matching funds in increments of $25,000 upon receipt 
15.10 	of a commitment for an equal amount of matching nonstate funds. These are onetime 
15.11 	appropriations.

15.12 	Sec. 37. APPROPRIATION; REIMBURSEMENT OF RECOUNT COSTS.
 15.13 	$322,000 is appropriated from the general fund to the secretary of state in fiscal year 
15.14 	2011 for the reimbursement of costs of recounts during the 2010 general election, to be 
15.15 	paid to counties consistent with the cost survey of the counties previously conducted 
15.16 	by the secretary of state and for reimbursement to the secretary of state costs in those 
15.17 	recounts already paid by the secretary of state to the counties. This appropriation remains 
15.18 	available until December 31, 2011.

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

15.20 	Sec. 38. APPROPRIATION; PAYMENT OF LEGAL FEES.
 15.21 	$148,375 is appropriated from the general fund to the secretary of state in fiscal 
15.22 	year 2011 for the payment of legal fees imposed by the United States District Court, 
15.23 	District of Minnesota, in the case of American Broadcasting Companies, Inc. et al v. 
15.24 	Mark Ritchie et al. (Case 08-cv-5285-MJD-AJB). This appropriation remains available 
15.25 	until June 30, 2013.

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

15.27 	Sec. 39. SAVINGS; APPROPRIATION REDUCTION FOR EXECUTIVE 
15.28 	AGENCIES.
 15.29 	The commissioner of management and budget must reduce general fund 
15.30 	appropriations to executive agencies, including constitutional offices, for agency 
15.31 	operations for the biennium ending June 30, 2013, by $94,875,000. The Minnesota State 
15.32 	Colleges and Universities is not an executive agency for purposes of this section. The 
16.1 	commissioner must not reduce appropriations to the Department of Veterans Affairs or the 
16.2 	Department of Military Affairs except to the extent the commissioner determines there 
16.3 	are savings directly attributable to items specified in clauses (2), (4), (5), and (6). To 
16.4 	the greatest extent possible, these reductions must come from savings provided by the 
16.5 	reforms, efficiencies, and cost-savings measures contained in this act, including:
16.6 	(1) reduction in the number of full-time equivalent employees;
16.7 	(2) salary and benefit changes;
16.8 	(3) elimination of deputy and assistant commissioner positions;
16.9 	(4) consolidation of responsibilities for executive branch information technology 
16.10 	systems;
16.11 	(5) operational efficiencies and cost savings obtained under contracts with vendors; 
16.12 	and
16.13 	(6) verification of dependent eligibility for state employee group insurance coverage.
16.14 	If operational efficiencies and cost savings obtained under contracts with vendors 
16.15 	yield savings in dedicated funds other than those established in the state constitution or 
16.16 	protected by federal law, the commissioner of management and budget may transfer 
16.17 	the amount of savings to the general fund. Reductions made in 2013 must be reflected 
16.18 	as reductions in agency base budgets for fiscal years 2014 and 2015. The commissioner 
16.19 	of management and budget must report to the chairs and ranking minority members of 
16.20 	the senate Finance Committee and the house of representatives Ways and Means and 
16.21 	Finance Committees regarding the amount of reductions in spending by each agency 
16.22 	under this section.

16.23 	Sec. 40. REPORTS.
 16.24 	By January 15, 2012, and January 15, 2013, the Minnesota Humanities Commission, 
16.25 	Council on Black Minnesotans, Council on Asian-Pacific Minnesotans, Council on Affairs 
16.26 	of Chicano/Latino People, and Indian Affairs Council must each report to the chairs 
16.27 	and ranking minority members of the legislative committees with jurisdiction over the 
16.28 	groups. The reports must describe the results obtained with the appropriations in this act, 
16.29 	including a description and evaluation of how the groups accomplished their statutory 
16.30 	duties in the preceding year.

16.31 	ARTICLE 2
16.32 	MILITARY AFFAIRS AND VETERANS AFFAIRS

16.33	Section 1. APPROPRIATIONS.
 	
17.1 	The sums shown in the columns marked "Appropriations" are appropriated to the 
17.2 	agencies and for the purposes specified in this article. The appropriations are from the 
17.3 	general fund and are available for the fiscal years indicated for each purpose. The figures 
17.4 	"2012" and "2013" used in this article mean that the appropriations listed under them are 
17.5 	available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The 
17.6 	first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is 
17.7 	fiscal years 2012 and 2013.

17.8				APPROPRIATIONS
	
17.9				Available for the Year
	
17.10				Ending June 30
	
17.11					2012
		2013

17.12	Sec. 2. MILITARY AFFAIRS

17.13	Subdivision 1.Total Appropriation
 	$
	22,371,000
	$
	19,371,000
	
17.14 	The amounts that may be spent for each 
17.15 	purpose are specified in the following 
17.16 	subdivisions.

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

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

17.19	Subd. 4.Enlistment Incentives
 		13,348,000
		10,348,000
	
17.20 	$3,000,000 the first year is for additional 
17.21 	costs of enlistment incentives. 
17.22 	If appropriations for either year of the 
17.23 	biennium are insufficient, the appropriation 
17.24 	from the other year is available. The 
17.25 	appropriations for enlistment incentives are 
17.26 	available until expended.

17.27	Sec. 3. VETERANS AFFAIRS

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

17.29	Appropriations by Fund
	
17.30		2012
	2013
	
17.31	General
	57,695,000
	58,595,000
	
17.32	Special Revenue
	100,000
	-0-
	
18.1 	The amounts that may be spent for each 
18.2 	purpose are specified in the following 
18.3 	subdivisions.

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

18.5	Appropriations by Fund
	
18.6		2012
	2013
	
18.7	General
	13,779,000
	13,779,000
	
18.8	Special Revenue
	100,000
	-0-
	
18.9 	$100,000 in the first year is from the 
18.10 	"Support Our Troops" account established 
18.11 	under Minnesota Statutes, section 190.19, 
18.12 	subdivision 2a, for a grant to the Minnesota 
18.13 	Assistance Council for Veterans. This is a 
18.14 	onetime appropriation.
18.15 	$945,000 each year is for the higher 
18.16 	education veterans assistance program under 
18.17 	Minnesota Statutes, section 197.585.
18.18 	$100,000 each year is for the costs of 
18.19 	administering the Minnesota GI Bill program 
18.20 	under Minnesota Statutes, section 197.791.
18.21 	$353,000 each year is for grants to the 
18.22 	following congressionally chartered veterans 
18.23 	service organizations, as designated by the 
18.24 	commissioner: Disabled American Veterans, 
18.25 	Military Order of the Purple Heart, the 
18.26 	American Legion, Veterans of Foreign Wars, 
18.27 	Vietnam Veterans of America, AMVETS, 
18.28 	and Paralyzed Veterans of America. This 
18.29 	funding must be allocated in direct proportion 
18.30 	to the funding currently being provided by 
18.31 	the commissioner to these organizations.

18.32	Subd. 3.Veterans Homes
 		43,916,000
		44,816,000
	
18.33 	Veterans Homes Special Revenue Account.
18.34 	The general fund appropriations made to 
18.35 	the department may be transferred to a 
19.1 	veterans homes special revenue account in 
19.2 	the special revenue fund in the same manner 
19.3 	as other receipts are deposited according 
19.4 	to Minnesota Statutes, section 198.34, and 
19.5 	are appropriated to the department for the 
19.6 	operation of veterans homes facilities and 
19.7 	programs.
19.8 	Fergus Falls Veterans Home. Of the 
19.9 	general fund appropriation, $738,000 in 
19.10 	fiscal year 2013 is for operation of a new 
19.11 	21-bed specialty care/Alzheimer's unit at the 
19.12 	Minnesota Veterans Home in Fergus Falls. 
19.13 	Base funding for this program is $842,000 in 
19.14 	fiscal years 2014 and 2015.
19.15 	Minneapolis Veterans Home. Of the 
19.16 	general fund appropriation, $162,000 in 
19.17 	fiscal year 2013 is for operation of a new 
19.18 	adult day care program at the Minnesota 
19.19 	Veterans Home in Minneapolis. Base 
19.20 	funding for this program is $232,000 in fiscal 
19.21 	years 2014 and 2015.
19.22 	Veterans Homes Service Redesign.
19.23 	$551,000 in fiscal year 2012 and $801,000 in 
19.24 	fiscal year 2013, generated from additional 
19.25 	nongeneral fund revenue and cost savings 
19.26 	from operating efficiencies, are to be used to 
19.27 	support the operational needs of the five state 
19.28 	veterans homes.

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

19.30	Sec. 4. VETERANS HOMES
 					
19.31 	Of the appropriation in Laws 2009, chapter 
19.32 	94, article 3, section 2, subdivision 3, or from 
19.33 	funds carried forward from fiscal year 2009:
20.1 	(1) $1,000,000 $800,000 in fiscal year 2011 
20.2 	is for operational expenses related to the 
20.3 	21-bed addition at the Fergus Falls Veterans 
20.4 	Home; and
20.5 	(2) $113,000 $313,000 in fiscal year 2011 is 
20.6 	for start-up expenses related to the opening of 
20.7 	an adult daycare facility at the Minneapolis 
20.8 	Veterans Home.
20.9 	An appropriation in this section that is 
20.10 	unspent at the end of fiscal year 2011 carries 
20.11 	forward and is available in fiscal year 2012.

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

20.13 	Sec. 5.  REPEALER.
 20.14 	Minnesota Statutes 2010, section 197.585, subdivision 5, is repealed.

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

20.16 	ARTICLE 3
20.17 	STATE GOVERNMENT OPERATIONS

20.18 	Section 1. Minnesota Statutes 2010, section 3.85, subdivision 3, is amended to read:
20.19 		Subd. 3.Membership. The commission consists of five seven  members of the 
20.20 	senate appointed by the Subcommittee on Committees of the Committee on Rules and 
20.21 	Administration and five seven  members of the house of representatives appointed by 
20.22 	the speaker. No more than five members from each chamber may be from the majority 
20.23 	caucus in that chamber. Members shall be appointed at the commencement of each regular 
20.24 	session of the legislature for a two-year term beginning January 16 of the first year of the 
20.25 	regular session. Members continue to serve until their successors are appointed. Vacancies 
20.26 	that occur while the legislature is in session shall be filled like regular appointments. If the 
20.27 	legislature is not in session, senate vacancies shall be filled by the last Subcommittee on 
20.28 	Committees of the senate Committee on Rules and Administration or other appointing 
20.29 	authority designated by the senate rules, and house of representatives vacancies shall be 
20.30 	filled by the last speaker of the house, or if the speaker is not available, by the last chair of 
20.31 	the house of representatives Rules Committee.

20.32 	EFFECTIVE DATE. This section is effective January 16, 2013.

21.1 	Sec. 2. [3D.01] SHORT TITLE.
21.2 	This chapter may be cited as the "Minnesota Sunset Act."

21.3 	Sec. 3. [3D.02] DEFINITIONS.
21.4 		Subdivision 1.Scope. The definitions in this section apply to this chapter.
21.5 		Subd. 2.Advisory committee. "Advisory committee" means a committee, council, 
21.6 	commission, or other entity created under state law whose primary function is to advise 
21.7 	a state agency.
21.8 		Subd. 3.Commission. "Commission" means the Sunset Advisory Commission.
21.9 		Subd. 4.State agency. "State agency" means an agency expressly made subject 
21.10 	to this chapter. 

21.11 	Sec. 4. [3D.03] SUNSET ADVISORY COMMISSION.
21.12 		Subdivision 1.Membership. (a) The Sunset Advisory Commission consists of 12 
21.13 	members appointed as follows:
21.14 	(1) five senators and one public member, appointed according to the rules of the 
21.15 	senate, with no more than three senators from the majority caucus; and
21.16 	(2) five members of the house of representatives and one public member, appointed 
21.17 	by the speaker of the house, with no more than three of the house of representatives 
21.18 	members from the majority caucus.
21.19 	(b) The first members of the Sunset Advisory Commission must be appointed before 
21.20 	September 1, 2011, for terms ending the first Monday in January 2013.
21.21 		Subd. 2.Public member restrictions. An individual is not eligible for appointment 
21.22 	as a public member if the individual or the individual's spouse is:
21.23 	(1) regulated by a state agency that the commission will review during the term for 
21.24 	which the individual would serve;  
21.25 	(2) employed by, participates in the management of, or directly or indirectly has 
21.26 	more than a ten percent interest in a business entity or other organization regulated by a 
21.27 	state agency the commission will review during the term for which the individual would 
21.28 	serve; or 
21.29 	(3) required to register as a lobbyist under chapter 10A because of the person's 
21.30 	activities for compensation on behalf of a profession or entity related to the operation of 
21.31 	an agency under review.
21.32 		Subd. 3.Removal. (a) It is a ground for removal of a public member from the 
21.33 	commission if the member does not have the qualifications required by subdivision 2 
21.34 	for appointment to the commission at the time of appointment or does not maintain the 
22.1 	qualifications while serving on the commission. The validity of the commission's action is 
22.2 	not affected by the fact that it was taken when a ground for removal of a public member 
22.3 	from the commission existed.
22.4 	(b) Except as provided in paragraph (a), a public member may be removed only as 
22.5 	provided in section 15.0575, subdivision 4.
22.6 		Subd. 4.Terms. Legislative members serve at the pleasure of the appointing 
22.7 	authority. Public members serve two-year terms expiring the first Monday in January of 
22.8 	each odd-numbered year.
22.9 		Subd. 5.Limits. Members are subject to the following restrictions:
22.10 	(1) after an individual serves four years on the commission, the individual is not 
22.11 	eligible for appointment to another term or part of a term;
22.12 	(2) a legislative member who serves a full term may not be appointed to an 
22.13 	immediately succeeding term; and
22.14 	(3) a public member may not serve consecutive terms, and, for purposes of this 
22.15 	prohibition, a member is considered to have served a term only if the member has served 
22.16 	more than one-half of the term.
22.17 		Subd. 6.Appointments. Appointments must be made before the second Monday of 
22.18 	January of each odd-numbered year.
22.19 		Subd. 7.Legislative members. If a legislative member ceases to be a member 
22.20 	of the legislative body from which the member was appointed, the member vacates 
22.21 	membership on the commission.
22.22 		Subd. 8.Vacancies. If a vacancy occurs, the appointing authority shall appoint a 
22.23 	person to serve for the remainder of the unexpired term in the same manner as the original 
22.24 	appointment.
22.25 		Subd. 9.Officers. The commission shall have a chair and vice-chair as presiding 
22.26 	officers.
22.27 		Subd. 10.Quorum; voting. Seven members of the commission constitute a 
22.28 	quorum. A final action or recommendation may not be made unless approved by a 
22.29 	recorded vote of at least seven members. All other actions by the commission shall be 
22.30 	decided by a majority of the members present and voting.
22.31 		Subd. 11.Compensation. Each public member shall be reimbursed for expenses 
22.32 	as provided in section 15.0575. Compensation for legislators is as determined by the 
22.33 	members' legislative chamber.

22.34 	Sec. 5. [3D.04] STAFF.
23.1 	The Legislative Coordinating Commission shall provide staff and administrative 
23.2 	services for the commission.

23.3 	Sec. 6. [3D.05] RULES.
23.4 	The commission may adopt rules necessary to carry out this chapter.

23.5 	Sec. 7. [3D.06] AGENCY REPORT TO COMMISSION.
23.6 	Before September 1 of the odd-numbered year before the year in which a state 
23.7 	agency is sunset, the agency commissioner shall report to the commission:
23.8 	(1) information regarding the application to the agency of the criteria in section 
23.9 	3D.10;
23.10 	(2) a priority-based budget for the agency;
23.11 	(3) an inventory of all boards, commissions, committees, and other entities related 
23.12 	to the agency; and
23.13 	(4) any other information that the agency commissioner considers appropriate or that 
23.14 	is requested by the commission.

23.15 	Sec. 8. [3D.07] COMMISSION DUTIES.
23.16 	Before January 1 of the year in which a state agency subject to this chapter and its 
23.17 	advisory committees are sunset, the commission shall:
23.18 	(1) review and take action necessary to verify the reports submitted by the agency; 
23.19 	and
23.20 	(2) conduct a review of the agency based on the criteria provided in section 3D.10 
23.21 	and prepare a written report.

23.22 	Sec. 9. [3D.08] PUBLIC HEARINGS.
23.23 	Before February 1 of the year a state agency subject to this chapter and its advisory 
23.24 	committees are sunset, the commission shall conduct public hearings concerning but not 
23.25 	limited to the application to the agency of the criteria provided in section 3D.10.

23.26 	Sec. 10. [3D.09] COMMISSION REPORT.
23.27 	By February 1 of each even-numbered year, the commission shall present to the 
23.28 	legislature and the governor a report on the agencies and advisory committees reviewed. 
23.29 	In the report the commission shall include:
23.30 	(1) its findings regarding the criteria prescribed by section 3D.10;
23.31 	(2) its recommendations based on the matters prescribed by section 3D.11; and
24.1 	(3) other information the commission considers necessary for a complete review 
24.2 	of the agency. 

24.3 	Sec. 11. [3D.10] CRITERIA FOR REVIEW.
24.4 	The commission and its staff shall consider the following criteria in determining 
24.5 	whether a public need exists for the continuation of a state agency or its advisory 
24.6 	committees or for the performance of the functions of the agency or its advisory 
24.7 	committees:
24.8 	(1) the efficiency and effectiveness with which the agency or the advisory committee 
24.9 	operates; 
24.10 	(2) an identification of the mission, goals, and objectives intended for the agency or 
24.11 	advisory committee and of the problem or need that the agency or advisory committee 
24.12 	was intended to address and the extent to which the mission, goals, and objectives have 
24.13 	been achieved and the problem or need has been addressed;
24.14 	(3) an identification of any activities of the agency in addition to those granted by 
24.15 	statute and of the authority for those activities and the extent to which those activities 
24.16 	are needed;
24.17 	(4) an assessment of authority of the agency relating to fees, inspections, 
24.18 	enforcement, and penalties;
24.19 	(5) whether less restrictive or alternative methods of performing any function that 
24.20 	the agency performs could adequately protect or provide service to the public; 
24.21 	(6) the extent to which the jurisdiction of the agency and the programs administered 
24.22 	by the agency overlap or duplicate those of other agencies, the extent to which the agency 
24.23 	coordinates with those agencies, and the extent to which the programs administered by the 
24.24 	agency can be consolidated with the programs of other state agencies; 
24.25 	(7) the promptness and effectiveness with which the agency addresses complaints 
24.26 	concerning entities or other persons affected by the agency, including an assessment of the 
24.27 	agency's administrative hearings process; 
24.28 	(8) an assessment of the agency's rulemaking process and the extent to which the 
24.29 	agency has encouraged participation by the public in making its rules and decisions and 
24.30 	the extent to which the public participation has resulted in rules that benefit the public; 
24.31 	(9) the extent to which the agency has complied with federal and state laws and 
24.32 	applicable rules regarding equality of employment opportunity and the rights and privacy 
24.33 	of individuals, and state law and applicable rules of any state agency regarding purchasing 
24.34 	guidelines and programs for historically underutilized businesses;
25.1 	(10) the extent to which the agency issues and enforces rules relating to potential 
25.2 	conflicts of interest of its employees;
25.3 	(11) the extent to which the agency complies with chapter 13 and follows records 
25.4 	management practices that enable the agency to respond efficiently to requests for public 
25.5 	information; and
25.6 	(12) the effect of federal intervention or loss of federal funds if the agency is 
25.7 	abolished. 

25.8 	Sec. 12. [3D.11] RECOMMENDATIONS.
25.9 	(a) In its report on a state agency, the commission shall: 
25.10 	(1) make recommendations on the abolition, continuation, or reorganization of each 
25.11 	affected state agency and its advisory committees and on the need for the performance of 
25.12 	the functions of the agency and its advisory committees; 
25.13 	(2) make recommendations on the consolidation, transfer, or reorganization of 
25.14 	programs within state agencies not under review when the programs duplicate functions 
25.15 	performed in agencies under review; and 
25.16 	(3) make recommendations to improve the operations of the agency, its policy body, 
25.17 	and its advisory committees, including management recommendations that do not require 
25.18 	a change in the agency's enabling statute. 
25.19 	(b) The commission shall include the estimated fiscal impact of its recommendations 
25.20 	and may recommend appropriation levels for certain programs to improve the operations 
25.21 	of the state agency. 
25.22 	(c) The commission shall have drafts of legislation prepared to carry out the 
25.23 	commission's recommendations under this section, including legislation necessary 
25.24 	to continue the existence of agencies that would otherwise sunset if the commission 
25.25 	recommends continuation of an agency.
25.26 	(d) After the legislature acts on the report under section 3D.09, the commission shall 
25.27 	present to the legislative auditor the commission's recommendations that do not require 
25.28 	a statutory change to be put into effect. Subject to the legislative audit commission's 
25.29 	approval, the legislative auditor may examine the recommendations and include as part 
25.30 	of the next audit of the agency a report on whether the agency has implemented the 
25.31 	recommendations and, if so, in what manner.

25.32 	Sec. 13. [3D.12] MONITORING OF RECOMMENDATIONS.
25.33 	During each legislative session, the staff of the commission shall monitor legislation 
25.34 	affecting agencies that have undergone sunset review and shall periodically report 
26.1 	to the members of the commission on proposed changes that would modify prior 
26.2 	recommendations of the commission.

26.3 	Sec. 14. [3D.13] REVIEW OF ADVISORY COMMITTEES.
26.4 	An advisory committee, the primary function of which is to advise a particular state 
26.5 	agency, is subject to sunset on the date set for sunset of the agency unless the advisory 
26.6 	committee is expressly continued by law.

26.7 	Sec. 15. [3D.14] CONTINUATION BY LAW.
26.8 	During the regular session immediately before the sunset of a state agency or an 
26.9 	advisory committee that is subject to this chapter, the legislature may enact legislation 
26.10 	to continue the agency or advisory committee for a period not to exceed 12 years. This 
26.11 	chapter does not prohibit the legislature from:
26.12 	(1) terminating a state agency or advisory committee subject to this chapter at a date 
26.13 	earlier than that provided in this chapter; or
26.14 	(2) considering any other legislation relative to a state agency or advisory committee 
26.15 	subject to this chapter.

26.16 	Sec. 16. [3D.15] PROCEDURE AFTER TERMINATION.
26.17 		Subdivision 1.Termination. Unless otherwise provided by law: 
26.18 	(1) if after sunset review a state agency is abolished, the agency may continue in 
26.19 	existence until June 30 of the following year to conclude its business; 
26.20 	(2) abolishment does not reduce or otherwise limit the powers and authority of the 
26.21 	state agency during the concluding year; 
26.22 	(3) a state agency is terminated and shall cease all activities at the expiration of 
26.23 	the one-year period; and
26.24 	(4) all rules that have been adopted by the state agency expire at the expiration of 
26.25 	the one-year period.
26.26 		Subd. 2.Funds of abolished agency or advisory committee. (a) Any unobligated 
26.27 	and unexpended appropriations of an abolished agency or advisory committee lapse on 
26.28 	June 30 of the year after abolishment.
26.29 	(b) Except as provided by subdivision 4 or as otherwise provided by law, all money 
26.30 	in a dedicated fund of an abolished state agency or advisory committee on June 30 of the 
26.31 	year after abolishment is transferred to the general fund. The part of the law dedicating 
26.32 	the money to a specific fund of an abolished agency becomes void on June 30 of the year 
26.33 	after abolishment.
27.1 		Subd. 3.Property and records of abolished agency or advisory committee.
 27.2 	Unless the governor designates an appropriate state agency as prescribed by subdivision 4, 
27.3 	property and records in the custody of an abolished state agency or advisory committee 
27.4 	on June 30 of the year after abolishment must be transferred to the commissioner of 
27.5 	administration. If the governor designates an appropriate state agency, the property and 
27.6 	records must be transferred to the designated state agency.
27.7 		Subd. 4.Continuing obligations. (a) The legislature recognizes the state's 
27.8 	continuing obligation to pay bonded indebtedness and all other obligations, including 
27.9 	lease, contract, and other written obligations, incurred by a state agency or advisory 
27.10 	committee abolished under this chapter, and this chapter does not impair or impede the 
27.11 	payment of bonded indebtedness and all other obligations, including lease, contract, and 
27.12 	other written obligations, in accordance with their terms. If an abolished state agency or 
27.13 	advisory committee has outstanding bonded indebtedness or other outstanding obligations, 
27.14 	including lease, contract, and other written obligations, the bonds and all other obligations, 
27.15 	including lease, contract, and other written obligations, remain valid and enforceable in 
27.16 	accordance with their terms and subject to all applicable terms and conditions of the laws 
27.17 	and proceedings authorizing the bonds and all other obligations, including lease, contract, 
27.18 	and other written obligations.
27.19 	(b) The governor shall designate an appropriate state agency that shall continue to 
27.20 	carry out all covenants contained in the bonds and in all other obligations, including lease, 
27.21 	contract, and other written obligations, and the proceedings authorizing them, including 
27.22 	the issuance of bonds, and the performance of all other obligations, including lease, 
27.23 	contract, and other written obligations, to complete the construction of projects or the 
27.24 	performance of other obligations, including lease, contract, and other written obligations.
27.25 	(c) The designated state agency shall provide payment from the sources of payment 
27.26 	of the bonds in accordance with the terms of the bonds and shall provide payment from 
27.27 	the sources of payment of all other obligations, including lease, contract, and other written 
27.28 	obligations, in accordance with their terms, whether from taxes, revenues, or otherwise, 
27.29 	until the bonds and interest on the bonds are paid in full and all other obligations, 
27.30 	including lease, contract, and other written obligations, are performed and paid in full. 
27.31 	If the proceedings so provide, all funds established by laws or proceedings authorizing 
27.32 	the bonds or authorizing other obligations, including lease, contract, and other written 
27.33 	obligations, must remain with the comptroller or the previously designated trustees. If the 
27.34 	proceedings do not provide that the funds remain with the comptroller or the previously 
27.35 	designated trustees, the funds must be transferred to the designated state agency.

28.1 	Sec. 17. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
28.2 	The commission may request the assistance of state agencies and officers. When 
28.3 	assistance is requested, a state agency or officer shall assist the commission. In carrying 
28.4 	out its functions under this chapter, the commission or its designated staff member may 
28.5 	inspect the records, documents, and files of any state agency. 

28.6 	Sec. 18. [3D.17] RELOCATION OF EMPLOYEES.
28.7 	If an employee is displaced because a state agency or its advisory committee is 
28.8 	abolished or reorganized, the state agency shall make a reasonable effort to relocate the 
28.9 	displaced employee.

28.10 	Sec. 19. [3D.18] SAVING PROVISION.
28.11 	Except as otherwise expressly provided, abolition of a state agency does not affect 
28.12 	rights and duties that matured, penalties that were incurred, civil or criminal liabilities that 
28.13 	arose, or proceedings that were begun before the effective date of the abolition.

28.14 	Sec. 20. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN 
28.15 	AGENCY.
28.16 	Each bill filed in a house of the legislature that would create a new state agency or 
28.17 	a new advisory committee to a state agency shall be reviewed by the commission. The 
28.18 	commission shall review the bill to determine if:
28.19 	(1) the proposed functions of the agency or committee could be administered by one 
28.20 	or more existing state agencies or advisory committees; 
28.21 	(2) the form of regulation, if any, proposed by the bill is the least restrictive form of 
28.22 	regulation that will adequately protect the public; 
28.23 	(3) the bill provides for adequate public input regarding any regulatory function 
28.24 	proposed by the bill; and 
28.25 	(4) the bill provides for adequate protection against conflicts of interest within 
28.26 	the agency or committee.

28.27 	Sec. 21. [3D.20] GIFTS AND GRANTS.
28.28 	The commission may accept gifts, grants, and donations from any organization 
28.29 	described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding 
28.30 	any activity under this chapter. All gifts, grants, and donations must be accepted in an 
28.31 	open meeting by a majority of the voting members of the commission and reported in the 
29.1 	public record of the commission with the name of the donor and purpose of the gift, grant, 
29.2 	or donation. Money received under this section is appropriated to the commission.

29.3 	Sec. 22. [3D.21] EXPIRATION.
29.4 		Subdivision 1.Group 1. The following agencies are sunset and expire on June 
29.5 	30, 2012: Department of Health, Department of Human Rights, Department of Human 
29.6 	Services, all health-related licensing boards listed in section 214.01, Council on Affairs 
29.7 	of Chicano/Latino People, Council on Black Minnesotans, Council on Asian-Pacific 
29.8 	Minnesotans, Indian Affairs Council, Council on Disabilities, and all advisory groups 
29.9 	associated with these agencies.
29.10 		Subd. 2.Group 2. The following agencies are sunset and expire on June 30, 2014: 
29.11 	Department of Education, Board of Teaching, Minnesota Office of Higher Education, and 
29.12 	all advisory groups associated with these agencies.
29.13 		Subd. 3.Group 3. The following agencies are sunset and expire on June 30, 2016: 
29.14 	Department of Commerce, Department of Employment and Economic Development, 
29.15 	Department of Labor and Industry, all non-health-related licensing boards listed in 
29.16 	section 214.01 except as otherwise provided in this section, Explore Minnesota Tourism, 
29.17 	Public Utilities Commission, Iron Range Resources and Rehabilitation Board, Bureau of 
29.18 	Mediation Services, Combative Sports Commission, Amateur Sports Commission, and all 
29.19 	advisory groups associated with these agencies.
29.20 		Subd. 4.Group 4. The following agencies are sunset and expire on June 30, 2018: 
29.21 	Department of Corrections, Department of Public Safety, Department of Transportation, 
29.22 	Peace Officer Standards and Training Board, Corrections Ombudsman, and all advisory 
29.23 	groups associated with these agencies.
29.24 		Subd. 5.Group 5. The following agencies are sunset and expire on June 30, 2020: 
29.25 	Department of Agriculture, Department of Natural Resources, Pollution Control Agency, 
29.26 	Board of Animal Health, Board of Water and Soil Resources, and all advisory groups 
29.27 	associated with these agencies.
29.28 		Subd. 6.Group 6. The following agencies are sunset and expire on June 30, 2022: 
29.29 	Department of Administration, Department of Management and Budget, Department of 
29.30 	Military Affairs, Department of Revenue, Department of Veterans Affairs, Arts Board, 
29.31 	Minnesota Zoo, Office of Administrative Hearings, Campaign Finance and Public 
29.32 	Disclosure Board, Capitol Area Architectural and Planning Board, Office of Enterprise 
29.33 	Technology, Minnesota Racing Commission, and all advisory groups associated with 
29.34 	these agencies.
30.1 		Subd. 7.Continuation. Following sunset review of an agency, the legislature may 
30.2 	act within the same legislative session in which the sunset report was received on Sunset 
30.3 	Advisory Commission recommendations to continue or reorganize the agency.
30.4 		Subd. 8.Other groups. The commission may review, under the criteria in 
30.5 	section 3D.10, and propose to the legislature an expiration date for any agency, board, 
30.6 	commission, or program not listed in this section.

30.7 	Sec. 23. Minnesota Statutes 2010, section 6.48, is amended to read:
30.8 	6.48 EXAMINATION OF COUNTIES; COST, FEES.
30.9 	(a) All the powers and duties conferred and imposed upon the state auditor shall 
30.10 	be exercised and performed by the state auditor in respect to the offices, institutions, 
30.11 	public property, and improvements of several counties of the state. At least once in each 
30.12 	year, if funds and personnel permit, the state auditor may visit, without previous notice, 
30.13 	each county and make a thorough examination of all accounts and records relating to the 
30.14 	receipt and disbursement of the public funds and the custody of the public funds and 
30.15 	other property. If the audit is performed by a private certified public accountant, the state 
30.16 	auditor may require additional information from the private certified public accountant as 
30.17 	the state auditor deems in the public interest. The state auditor may accept the audit or 
30.18 	make additional examinations as the state auditor deems to be in the public interest. The 
30.19 	state auditor shall prescribe and install systems of accounts and financial reports that shall 
30.20 	be uniform, so far as practicable, for the same class of offices. A copy of the report of 
30.21 	such examination shall be filed and be subject to public inspection in the office of the state 
30.22 	auditor and another copy in the office of the auditor of the county thus examined. The state 
30.23 	auditor may accept the records and audit, or any part thereof, of the Department of Human 
30.24 	Services in lieu of examination of the county social welfare funds, if such audit has been 
30.25 	made within any period covered by the state auditor's audit of the other records of the 
30.26 	county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance 
30.27 	in any office of such county, such report shall be filed with the county attorney of the 
30.28 	county, and the county attorney shall institute such civil and criminal proceedings as the 
30.29 	law and the protection of the public interests shall require.
30.30 	(b) The county receiving any examination shall pay to the state general fund, 
30.31 	notwithstanding the provisions of section 16A.125, the total cost and expenses of such 
30.32 	examinations, including the salaries paid to the examiners while actually engaged in 
30.33 	making such examination. The state auditor on deeming it advisable may bill counties, 
30.34 	having a population of 200,000 or over, monthly for services rendered and the officials 
31.1 	responsible for approving and paying claims shall cause said bill to be promptly paid. The 
31.2 	general fund shall be credited with all collections made for any such examinations. 
31.3 	(c) Notwithstanding paragraph (a), a county may provide for an audit to be performed 
31.4 	by a certified public accountant firm meeting the requirements of section 326A.05. 
31.5 	A county must notify the state auditor before August 1 of the even-numbered year 
31.6 	immediately preceding the year in which the county intends to have an audit performed by 
31.7 	a certified public accounting firm. A county currently using a certified public accounting 
31.8 	firm must notify the state auditor before August 1 of the even-numbered year immediately 
31.9 	preceding the year in which the county intends for the state auditor to audit the county. 
31.10 	The audit performed under this paragraph must meet the standards and be in the form 
31.11 	required by the state auditor. The state auditor may require additional information from 
31.12 	the certified public accountant firm as the state auditor deems in the public interest, but the 
31.13 	state auditor must accept the audit unless the state auditor determines that it does not meet 
31.14 	recognized industry auditing standards or is not in the form required by the state auditor.

31.15 	Sec. 24. Minnesota Statutes 2010, section 15.057, is amended to read:
31.16 	15.057 PUBLICITY REPRESENTATIVES AND LEGISLATIVE LIAISONS.
31.17 		Subdivision 1.Publicity representatives.  No state department, bureau, or division, 
31.18 	whether the same operates on funds appropriated or receipts or fees of any nature 
31.19 	whatsoever, except the Department of Transportation, the Department of Employment 
31.20 	and Economic Development, the Game and Fish Division, State Agricultural Society, and 
31.21 	Explore Minnesota Tourism shall use any of such funds for the payment of the salary or 
31.22 	expenses of a publicity representative. The head of any such department, bureau, or 
31.23 	division shall be personally liable for funds used contrary to this provision. This section
31.24 	subdivision  shall not be construed, however, as preventing any such department, bureau, 
31.25 	or division from sending out any bulletins or other publicity required by any state law or 
31.26 	necessary for the satisfactory conduct of the business for which such department, bureau, 
31.27 	or division was created.
31.28 		Subd. 2.Legislative liaisons. No state agency may use any money appropriated to 
31.29 	it for the salary or expenses of an individual serving as a liaison for the legislative affairs 
31.30 	of the agency. This subdivision does not prevent any employee of a state agency from 
31.31 	providing information requested by legislators and providing testimony at legislative 
31.32 	hearings.

31.33 	Sec. 25. Minnesota Statutes 2010, section 15.06, subdivision 8, is amended to read:
32.1 		Subd. 8.Number of deputy commissioners; no assistant commissioners. Unless 
32.2 	specifically authorized by statute, other than section 43A.08, subdivision 2 Except for the 
32.3 	Department of Veterans Affairs, no department or agency specified in subdivision 1 shall 
32.4 	have more than one deputy commissioner. Except for the Department of Veterans Affairs, 
32.5 	no department or agency specified in subdivision 1 may employ an assistant commissioner.

32.6 	Sec. 26. [15.062] EMPLOYEE COMPETITION FOR STATE BUSINESS.
32.7 	If an agency decides to seek an outside vendor to perform work currently done by 
32.8 	state employees, the agency must permit groups of state employees to compete for the 
32.9 	business by submitting responses to the agency's solicitation documents. Notwithstanding 
32.10 	section 16A.127 or any other law to the contrary, no statewide or agency indirect costs 
32.11 	may be assessed to a group of agency employees with respect to work performed under 
32.12 	a contract awarded to a group of employees under this section. This section supersedes 
32.13 	any provision of law preventing a state agency from entering into a contract with a state 
32.14 	employee.

32.15 	Sec. 27. [15.76] SAVI PROGRAM.
32.16 		Subdivision 1.Program established. The state agency value initiative (SAVI) 
32.17 	program is established to encourage state agencies to identify cost-effective and efficiency 
32.18 	measures in agency programs and operations that result in cost savings for the state. All 
32.19 	state agencies, including Minnesota State Colleges and Universities, may participate in 
32.20 	this program.
32.21 		Subd. 2.Retained savings. (a) In order to encourage innovation and creative 
32.22 	cost savings by state employees, upon approval of the commissioner of management 
32.23 	and budget, 50 percent of any appropriations for agency operations that remain unspent 
32.24 	at the end of a biennium because of unanticipated innovation, efficiencies, or creative 
32.25 	cost-savings may be carried forward and retained by the agency to fund specific agency 
32.26 	proposals or projects. Agencies choosing to spend retained savings funds must ensure that 
32.27 	project expenditures do not create future obligations beyond the amounts available from 
32.28 	the retained savings. The retained savings must be used only to fund projects that directly 
32.29 	support the agency's mission. This section does not restrict authority granted by other law 
32.30 	to carry forward money for a different period or for different purposes.
32.31 	(b) This section supersedes any contrary provision of section 16A.28.
32.32 		Subd. 3.Special peer review panel; review process. (a) Each participating agency 
32.33 	must organize a peer review panel that will determine which proposal or project receives 
32.34 	funding from the SAVI program. The peer review panel must be comprised of department 
33.1 	employees who are credited with cost-savings initiatives and department managers. The 
33.2 	ratio between managers and department employees must be balanced.
33.3 	(b) An agency may spend money for a project recommended for funding by the 
33.4 	peer review panel after: 
33.5 	(1) the agency has posted notice of spending for the proposed project on the agency 
33.6 	Web site for at least 30 days; and
33.7 	(2) the commissioner of management and budget has approved spending money 
33.8 	from the SAVI account for the project.
33.9 	(c) Before approving a project, the commissioner of management and budget 
33.10 	must submit the request to the Legislative Advisory Commission for its review and 
33.11 	recommendation. Upon receiving a request from the commissioner, the Legislative 
33.12 	Advisory Commission shall post notice of the request on a legislative Web site for at least 
33.13 	30 days. Failure of the commission to make a recommendation within this 30-day period 
33.14 	is considered a negative recommendation. A recommendation of the commission must be 
33.15 	made at a meeting of the commission unless a written recommendation is signed by all 
33.16 	the members entitled to vote on the item.
33.17 		Subd. 4.SAVI-dedicated account. Each agency that participates in the SAVI 
33.18 	program shall have a SAVI-dedicated account in the special revenue fund, or other 
33.19 	appropriate fund as determined by the commissioner of management and budget, into 
33.20 	which the agency's savings are deposited. The agency will manage and review projects 
33.21 	that are funded from this account. Money in the account is appropriated to the participating 
33.22 	agency for purposes authorized by this section.
33.23 		Subd. 5.Expiration. This section expires June 30, 2018.

33.24 	EFFECTIVE DATE. This section is effective June 30, 2013, and first applies to 
33.25 	funds to be carried forward from the biennium ending June 30, 2013, to the biennium 
33.26 	beginning July 1, 2013.

33.27 	Sec. 28. Minnesota Statutes 2010, section 16A.10, subdivision 1a, is amended to read:
33.28 		Subd. 1a.Purpose of performance data. Performance data shall be presented in 
33.29 	the budget proposal to:
33.30 	(1) provide information so that the legislature can determine the extent to which 
33.31 	state programs and activities are successful;
33.32 	(2) encourage agencies to develop clear and measurable goals and objectives for 
33.33 	their programs and activities; and
33.34 	(3) strengthen accountability to Minnesotans by providing a record of state 
33.35 	government's performance in providing effective and efficient services.

34.1 	Sec. 29. Minnesota Statutes 2010, section 16A.10, subdivision 1b, is amended to read:
34.2 		Subd. 1b.Performance data format. (a) As part of the budget proposal, agencies 
34.3 	shall:
34.4 	(1) describe the goals and objectives of each agency program and activity; and
34.5 	(2) present performance data that measures the performance of programs and 
34.6 	activities in meeting program goals and objectives.
34.7 	(b) Measures reported must be outcome-based and objective, and may include 
34.8 	indicators of outputs, efficiency, outcomes, and other measures relevant to understanding 
34.9 	each program and activity.
34.10 	(c) Agencies shall present as much historical information as needed to understand 
34.11 	major trends and shall set targets for future performance issues where feasible and 
34.12 	appropriate. The information shall appropriately highlight agency performance issues that 
34.13 	would assist legislative review and decision making.
34.14 	(d) For purposes of this subdivision, subdivision 1a, and section 16A.106, the terms 
34.15 	"program" and "activity" are used in the same manner as the terms are used in state 
34.16 	budgeting. However, the commissioner may authorize an agency to define these terms in a 
34.17 	different manner if that allows for a more effective presentation of performance data.

34.18 	Sec. 30. Minnesota Statutes 2010, section 16A.10, subdivision 1c, is amended to read:
34.19 		Subd. 1c.Performance measures for change items. For each change item in the 
34.20 	budget proposal requesting new or increased funding, the budget document must present 
34.21 	proposed performance measures that can be used to determine if the new or increased 
34.22 	funding is accomplishing its goals. To the extent possible, each budget change item 
34.23 	must identify relevant Minnesota Milestones and other statewide goals and indicators 
34.24 	related to the proposed initiative. The commissioner must report to the Subcommittee on 
34.25 	Government Accountability established under section 3.885, subdivision 10, regarding the 
34.26 	format to be used for the presentation and selection of Minnesota Milestones and other 
34.27 	statewide goals and indicators.

34.28 	Sec. 31. Minnesota Statutes 2010, section 16A.103, subdivision 1a, is amended to read:
34.29 		Subd. 1a.Forecast parameters. The forecast must assume the continuation of 
34.30 	current laws and reasonable estimates of projected growth in the national and state 
34.31 	economies and affected populations. Revenue must be estimated for all sources provided 
34.32 	for in current law. Expenditures must be estimated for all obligations imposed by law and 
34.33 	those projected to occur as a result of variables outside the control of the legislature. 
34.34 	Expenditures for the current biennium must be based on actual appropriations or, for 
35.1 	forecasted programs, the amount needed to fund the formula in law. The base for 
35.2 	expenditures projections for the next biennium is the amount appropriated in the second 
35.3 	year of the current biennium, except as provided by other law, or, for forecasted programs, 
35.4 	the amount needed to fund the formula in law. Expenditure estimates must not include an 
35.5 	allowance for inflation.

35.6 	Sec. 32. [16A.106] ZERO-BASED BUDGETING PRINCIPLES.
35.7 	(a) The detailed budget presented to the legislature must include:
35.8 	(1) a description of each budget activity for which the agency or entity receives 
35.9 	an appropriation in the current biennium or for which the agency or entity requests an 
35.10 	appropriation in the next biennium;
35.11 	(2) for each budget activity, three alternative funding levels or alternative ways of 
35.12 	performing the budget activity, at least one of which is less than the previous biennium's 
35.13 	actual expenditures for that budget activity, a summary of the priorities that would be 
35.14 	accomplished within each level compared to a zero budget, and the additional increments 
35.15 	of value that would be added by the higher funding levels compared to what would be 
35.16 	accomplished if there were no funding for the activity; and
35.17 	(3) for each budget activity, performance data as specified in section 16A.10, 
35.18 	subdivision 1b, the predicted effect of the three alternative funding levels on future 
35.19 	performance, and also one or more measures of cost efficiency and effectiveness of 
35.20 	program delivery, which must include comparisons to other states or entities with similar 
35.21 	programs.
35.22 	(b) The commissioner's budget preparation guidelines and instructions must contain 
35.23 	requirements, deadlines, and technical assistance to facilitate implementation of this 
35.24 	section. After consultation with the legislative commission on planning and fiscal policy, 
35.25 	the commissioner's instructions may establish parameters for the three alternative funding 
35.26 	levels required in paragraph (a), clause (3).
35.27 	(c) The governor's recommendations must prioritize the budget activities within an 
35.28 	agency or program area. To the extent activities in more than one agency or program area 
35.29 	are meeting the same goals, the recommendations must prioritize budget activities across 
35.30 	agencies or programs with the same goals, and this prioritization must include agencies or 
35.31 	programs not subject to zero-based budgeting principles that biennium.
35.32 	(d) Expenditures for debt service under section 16A.641, subdivision 10, are not 
35.33 	subject to zero-based budgeting principles.

35.34 	EFFECTIVE DATE. (a) The zero-based budgeting principles in this section first 
35.35 	apply to the following budget proposals for the biennium beginning July 1, 2013:
36.1 	(1) legislative branch;
36.2 	(2) judicial branch;
36.3 	(3) Minnesota State Colleges and Universities system; and
36.4 	(4) approximately half of expenditure programs in the executive branch, designated 
36.5 	by the governor, in consultation with the chairs and lead minority members of the senate 
36.6 	Finance Committee and the house of representatives Ways and Means Committee.
36.7 	(b) The zero-based budgeting principles in this section apply to all budget proposals 
36.8 	for the biennium beginning July 1, 2015, and after.

36.9 	Sec. 33. Minnesota Statutes 2010, section 16A.11, subdivision 3, is amended to read:
36.10 		Subd. 3.Part two: detailed budget. (a) Part two of the budget, the detailed budget 
36.11 	estimates both of expenditures and revenues, must contain any statements on the financial 
36.12 	plan which the governor believes desirable or which may be required by the legislature. 
36.13 	The detailed estimates shall include the governor's budget arranged in tabular form.
36.14 	(b) For programs designated for the zero-based budgeting principles under section 
36.15 	16A.106, the budget must be prepared according to the requirements of that section.
36.16 	(c) For programs not designated for zero-based budgeting principles under section 
36.17 	16A.106, tables listing expenditures for the next biennium must show the appropriation 
36.18 	base for each year as defined in section 16A.103, subdivision 1c. The appropriation base 
36.19 	is the amount appropriated for the second year of the current biennium. The tables must 
36.20 	separately show any adjustments to the base required by current law or policies of the 
36.21 	commissioner of management and budget. For forecasted programs, the tables must also 
36.22 	show the amount of the forecast adjustments, based on the most recent forecast prepared 
36.23 	by the commissioner of management and budget under section 16A.103. For all programs, 
36.24 	the tables must show the amount of appropriation changes recommended by the governor, 
36.25 	after adjustments to the base and forecast adjustments, and the total recommendation of 
36.26 	the governor for that year.
36.27 	(c) (d) The detailed estimates must include a separate line listing the total cost of 
36.28 	professional and technical service contracts for the prior biennium and the projected costs 
36.29 	of those contracts for the current and upcoming biennium. They must also include a 
36.30 	summary of the personnel employed by the agency, reflected as full-time equivalent 
36.31 	positions.
36.32 	(d) (e) The detailed estimates for internal service funds must include the number of 
36.33 	full-time equivalents by program; detail on any loans from the general fund, including 
36.34 	dollar amounts by program; proposed investments in technology or equipment of $100,000 
36.35 	or more; an explanation of any operating losses or increases in retained earnings; and a 
37.1 	history of the rates that have been charged, with an explanation of any rate changes and 
37.2 	the impact of the rate changes on affected agencies.

37.3 	Sec. 34. Minnesota Statutes 2010, section 16A.28, subdivision 3, is amended to read:
37.4 		Subd. 3.Lapse. Any portion of any appropriation not carried forward and remaining 
37.5 	unexpended and unencumbered at the close of a fiscal year lapses to the fund from which 
37.6 	it was originally appropriated. Except as provided in section 15.76, any appropriation 
37.7 	amounts not carried forward and remaining unexpended and unencumbered at the close of 
37.8 	a biennium lapse to the fund from which the appropriation was made.

37.9 	EFFECTIVE DATE. This section is effective June 30, 2013.

37.10 	Sec. 35. [16A.90] EMPLOYEE GAINSHARING SYSTEM.
37.11 	The commissioner shall establish a program to provide onetime bonus compensation 
37.12 	to state employees for efforts made to reduce the costs of operating state government or for 
37.13 	ways of providing better or more efficient state services. The commissioner may make a 
37.14 	onetime award to an employee or group of employees whose suggestion or involvement in 
37.15 	a project is determined by the commissioner to have resulted in documented cost-savings 
37.16 	to the state. The maximum award is ten percent of the documented savings in the 
37.17 	first fiscal year in which the savings are realized. The award must be paid from the 
37.18 	appropriation to which the savings accrued.

37.19 	Sec. 36. [16A.93] MINNESOTA PAY FOR PERFORMANCE ACT.
37.20 	Sections 16A.93 to 16A.96 may be cited as the "Minnesota Pay for Performance 
37.21 	Act of 2011."

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

37.23 	Sec. 37. [16A.94] PROGRAM.
37.24 		Subdivision 1.Pilot program established. The commissioner shall implement a 
37.25 	pilot program to demonstrate the feasibility and desirability of using state appropriation 
37.26 	bonds to pay for certain services based on performance and outcomes for the people served.
37.27 		Subd. 2.Oversight committee. (a) The commissioner shall appoint an oversight 
37.28 	committee to:
37.29 	(1) identify criteria to select one or more services to be included in the pilot program;
37.30 	(2) identify the conditions of performance and desired outcomes for the people 
37.31 	served by each service selected;
38.1 	(3) identify criteria to evaluate whether a service has met the performance 
38.2 	conditions; and
38.3 	(4) provide any other advice or assistance requested by the commissioner.
38.4 	(b) The oversight committee must include the commissioners of the Departments 
38.5 	of Human Services, Employment and Economic Development, and Administration, or 
38.6 	their designees; a representative of a nonprofit organization that has participated in a 
38.7 	pay-for-performance program; and any other person or organization that the commissioner 
38.8 	determines would be of assistance in developing and implementing the pilot program.
38.9 		Subd. 3.Contracts. The commissioner and the commissioner of the agency with 
38.10 	a service to be provided through the pilot program shall enter into a contract with the 
38.11 	selected provider. The contract must specify the service to be provided, the time frame in 
38.12 	which it is to be provided, the outcome required for payment, and any other terms deemed 
38.13 	necessary or convenient for implementation of the pilot program. The commissioner 
38.14 	shall pay a provider that has met the terms and conditions of a contract with money 
38.15 	appropriated to the commissioner from the special appropriation bond proceeds account 
38.16 	established in section 16A.96. At a minimum, before the commissioner pays a provider, 
38.17 	the commissioner must determine that the state's return on investment is positive.
38.18 		Subd. 4.Return on investment calculation.  The commissioner, in consultation 
38.19 	with the oversight committee, must establish the method and data required for calculating 
38.20 	the state's return on investment. The data at a minimum must include:
38.21 	(1) state income taxes and any other revenues collected in the year after the service 
38.22 	was provided that would not have been collected without the service; and
38.23 	(2) costs avoided by the state by providing the service.
38.24 	A positive return on investment for the state will cover the state's costs in financing 
38.25 	and administering the pilot program through documented increased state tax revenue 
38.26 	or cost avoidance.
38.27 		Subd. 5.Report to governor and legislature. The commissioner must report to the 
38.28 	governor and legislative committees with jurisdiction over capital investment, finance, and 
38.29 	ways and means, and the services included in the pilot program, by January 15 of each 
38.30 	year following a year in which the pilot program is operating. The report must describe 
38.31 	and discuss the criteria for selection and evaluation of services to be provided through 
38.32 	the program, the net benefits to the state of the program, the state's return on investment, 
38.33 	the cost of the services provided by other means in the most recent past, the time frame 
38.34 	for payment for the services, and the timing and costs for sale and issuance of the bonds 
38.35 	authorized in section 16A.96.

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

39.1 	Sec. 38. [16A.96] MINNESOTA PAY FOR PERFORMANCE PROGRAM; 
39.2 	APPROPRIATION BONDS.
39.3 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
39.4 	section.
39.5 	(b) "Appropriation bond" means a bond, note, or other similar instrument of the state 
39.6 	payable during a biennium from one or more of the following sources:
39.7 	(1) money appropriated by law in any biennium for debt service due with respect 
39.8 	to obligations described in subdivision 2, paragraph (b);
39.9 	(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
39.10 	(3) payments received for that purpose under agreements and ancillary arrangements 
39.11 	described in subdivision 2, paragraph (d); and
39.12 	(4) investment earnings on amounts in clauses (1) to (3).
39.13 	(c) "Debt service" means the amount payable in any biennium of principal, premium, 
39.14 	if any, and interest on appropriation bonds.
39.15 		Subd. 2.Authority. (a) Subject to the limitations of this subdivision, the 
39.16 	commissioner of management and budget may sell and issue appropriation bonds of the 
39.17 	state under this section for the purposes of the Minnesota pay for performance program 
39.18 	established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to 
39.19 	a special appropriation bond proceeds account in the state treasury. Net income from 
39.20 	investment of the proceeds, as estimated by the commissioner, must be credited to the 
39.21 	special appropriation bond proceeds account.
39.22 	(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of 
39.23 	the commissioner, are necessary to provide sufficient funds for achieving the purposes 
39.24 	authorized as provided under paragraph (a), and pay debt service, pay costs of issuance, 
39.25 	make deposits to reserve funds, pay the costs of credit enhancement, or make payments 
39.26 	under other agreements entered into under paragraph (d); provided, however, that bonds 
39.27 	issued and unpaid shall not exceed $20,000,000 in principal amount, excluding refunding 
39.28 	bonds sold and issued under subdivision 4. During the biennium ending June 30, 2013, 
39.29 	the commissioner may sell and issue bonds only in an amount that the commissioner 
39.30 	determines will result in principal and interest payments less than the amount of savings to 
39.31 	be generated through pay-for-performance contracts under section 16A.94. For programs 
39.32 	achieving savings under a pay-for-performance contract, the commissioner must reduce 
39.33 	general fund appropriations by at least the amount of principal and interest payments on 
39.34 	bonds issued under this section.
40.1 	(c) Appropriation bonds may be issued in one or more series on the terms and 
40.2 	conditions the commissioner determines to be in the best interests of the state, but the term 
40.3 	on any series of bonds may not exceed 20 years.
40.4 	(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
40.5 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner 
40.6 	may enter into agreements and ancillary arrangements relating to the appropriation 
40.7 	bonds, including but not limited to trust indentures, liquidity facilities, remarketing or 
40.8 	dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 
40.9 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
40.10 	payments made or received according to the agreement or ancillary arrangement shall be 
40.11 	made from or deposited as provided in the agreement or ancillary arrangement. The 
40.12 	determination of the commissioner included in an interest exchange agreement that the 
40.13 	agreement relates to an appropriation bond shall be conclusive.
40.14 		Subd. 3.Form; procedure. (a) Appropriation bonds may be issued in the form 
40.15 	of bonds, notes, or other similar instruments, and in the manner provided in section 
40.16 	16A.672. In the event that any provision of section 16A.672 conflicts with this section, 
40.17 	this section shall control.
40.18 	(b) Every appropriation bond shall include a conspicuous statement of the limitation 
40.19 	established in subdivision 6.
40.20 	(c) Appropriation bonds may be sold at either public or private sale upon such terms 
40.21 	as the commissioner shall determine are not inconsistent with this section and may be sold 
40.22 	at any price or percentage of par value. Any bid received may be rejected.
40.23 	(d) Appropriation bonds may bear interest at a fixed or variable rate.
40.24 		Subd. 4.Refunding bonds. The commissioner from time to time may issue 
40.25 	appropriation bonds for the purpose of refunding any appropriation bonds then 
40.26 	outstanding, including the payment of any redemption premiums on the bonds, any 
40.27 	interest accrued or to accrue to the redemption date, and costs related to the issuance 
40.28 	and sale of the refunding bonds. The proceeds of any refunding bonds may, in the 
40.29 	discretion of the commissioner, be applied to the purchase or payment at maturity of the 
40.30 	appropriation bonds to be refunded, to the redemption of the outstanding bonds on any 
40.31 	redemption date, or to pay interest on the refunding bonds and may, pending application, 
40.32 	be placed in escrow to be applied to the purchase, payment, retirement, or redemption. 
40.33 	Any escrowed proceeds, pending such use, may be invested and reinvested in obligations 
40.34 	that are authorized investments under section 11A.24. The income earned or realized on 
40.35 	the investment may also be applied to the payment of the bonds to be refunded or interest 
40.36 	or premiums on the refunded bonds, or to pay interest on the refunding bonds. After 
41.1 	the terms of the escrow have been fully satisfied, any balance of the proceeds and any 
41.2 	investment income may be returned to the general fund or, if applicable, the appropriation 
41.3 	bond proceeds account for use in any lawful manner. All refunding bonds issued under 
41.4 	this subdivision must be prepared, executed, delivered, and secured by appropriations in 
41.5 	the same manner as the bonds to be refunded.
41.6 		Subd. 5.Appropriation bonds as legal investments. Any of the following entities 
41.7 	may legally invest any sinking funds, money, or other funds belonging to them or under 
41.8 	their control in any appropriation bonds issued under this section:
41.9 	(1) the state, the investment board, public officers, municipal corporations, political 
41.10 	subdivisions, and public bodies;
41.11 	(2) banks and bankers, savings and loan associations, credit unions, trust companies, 
41.12 	savings banks and institutions, investment companies, insurance companies, insurance 
41.13 	associations, and other persons carrying on a banking or insurance business; and
41.14 	(3) personal representatives, guardians, trustees, and other fiduciaries.
41.15 		Subd. 6.No full faith and credit; state not required to make appropriations.
 41.16 	The appropriation bonds are not public debt of the state, and the full faith, credit, and 
41.17 	taxing powers of the state are not pledged to the payment of the appropriation bonds or to 
41.18 	any payment that the state agrees to make under this section. Appropriation bonds shall 
41.19 	not be obligations paid directly, in whole or in part, from a tax of statewide application 
41.20 	on any class of property, income, transaction, or privilege. Appropriation bonds shall be 
41.21 	payable in each fiscal year only from amounts that the legislature may appropriate for debt 
41.22 	service for any fiscal year, provided that nothing in this section shall be construed to 
41.23 	require the state to appropriate funds sufficient to make debt service payments with respect 
41.24 	to the bonds in any fiscal year.
41.25 		Subd. 7.Appropriation of proceeds. The proceeds of appropriation bonds and 
41.26 	interest credited to the special appropriation bond proceeds account are appropriated to the 
41.27 	commissioner for payment of contract obligations under the pay for performance program, 
41.28 	as permitted by state and federal law, and nonsalary expenses incurred in conjunction 
41.29 	with the sale of the appropriation bonds.
41.30 		Subd. 8.Appropriation for debt service. The amount needed to pay principal and 
41.31 	interest on appropriation bonds issued under this section is appropriated each year to the 
41.32 	commissioner from the general fund subject to the repeal, unallotment under section 
41.33 	16A.152, or cancellation otherwise pursuant to subdivision 6.

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

42.1 	Sec. 39. Minnesota Statutes 2010, section 16B.03, is amended to read:
42.2 	16B.03 APPOINTMENTS.
42.3 	The commissioner is authorized to appoint staff, including twoone deputy 
42.4 	commissioners commissioner, in accordance with chapter 43A.

42.5 	Sec. 40. [16C.075] E-VERIFY.
42.6 	A contract for services valued in excess of $50,000 must require certification from 
42.7 	the vendor and any subcontractors that, as of the date services on behalf of the state of 
42.8 	Minnesota will be performed, the vendor and all subcontractors have implemented or are 
42.9 	in the process of implementing the federal E-Verify program for all newly hired employees 
42.10 	in the United States who will perform work on behalf of the state of Minnesota. This 
42.11 	section does not apply to contracts entered into by the State Board of Investment.

42.12 	EFFECTIVE DATE. This section is effective July 1, 2011, and applies to contracts 
42.13 	entered into on or after that date.

42.14 	Sec. 41. Minnesota Statutes 2010, section 16C.08, subdivision 2, is amended to read:
42.15 		Subd. 2.Duties of contracting agency. (a) Before an agency may seek approval of 
42.16 	a professional or technical services contract valued in excess of $5,000, it must provide 
42.17 	the following:
42.18 	(1) a description of how the proposed contract or amendment is necessary and 
42.19 	reasonable to advance the statutory mission of the agency;
42.20 	(2) a description of the agency's plan to notify firms or individuals who may be 
42.21 	available to perform the services called for in the solicitation;
42.22 	(3) a description of the performance measures or other tools, including accessibility 
42.23 	measures if applicable, that will be used to monitor and evaluate contract performance; and
42.24 	(4) an explanation detailing, if applicable, why this procurement is being pursued 
42.25 	unilaterally by the agency and not as an enterprise procurement.
42.26 	(b) In addition to paragraph (a), the agency must certify that:
42.27 	(1) no current state employee is able and available to perform the services called 
42.28 	for by the contract;
42.29 	(2)(1) the normal competitive bidding mechanisms will not provide for adequate 
42.30 	performance of the services;
42.31 	(3)(2) reasonable efforts will be made to publicize the availability of the contract 
42.32 	to the public;
43.1 	(4)(3) the agency will develop and implement a written plan providing for the 
43.2 	assignment of specific agency personnel to manage the contract, including a monitoring 
43.3 	and liaison function, the periodic review of interim reports or other indications of past 
43.4 	performance, and the ultimate utilization of the final product of the services;
43.5 	(5)(4) the agency will not allow the contractor to begin work before the contract is 
43.6 	fully executed unless an exception under section 16C.05, subdivision 2a, has been granted 
43.7 	by the commissioner and funds are fully encumbered;
43.8 	(6)(5) the contract will not establish an employment relationship between the state 
43.9 	or the agency and any persons performing under the contract; and
43.10 	(7)(6) in the event the results of the contract work will be carried out or continued 
43.11 	by state employees upon completion of the contract, the contractor is required to include 
43.12 	state employees in development and training, to the extent necessary to ensure that after 
43.13 	completion of the contract, state employees can perform any ongoing work related to the 
43.14 	same function; and
43.15 	(8) the agency will not contract out its previously eliminated jobs for four years 
43.16 	without first considering the same former employees who are on the seniority unit layoff 
43.17 	list who meet the minimum qualifications determined by the agency.
43.18 	(c) A contract establishes an employment relationship for purposes of paragraph (b), 
43.19 	clause (6) (5), if, under federal laws governing the distinction between an employee and 
43.20 	an independent contractor, a person would be considered an employee.

43.21 	Sec. 42. [16C.082] CONTRACTS FOR TAX-RELATED ACTIVITIES.
43.22 	An agency may not enter into a contract for tax fraud prevention or detection, or 
43.23 	tax audit-related activities, that compensates a vendor based on a percentage of taxes 
43.24 	assessed or collected.

43.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
43.26 	and applies to contracts entered into on or after that date.

43.27 	Sec. 43. Minnesota Statutes 2010, section 16C.09, is amended to read:
43.28 	16C.09 PROCEDURE FOR SERVICE CONTRACTS.
43.29 	(a) Before entering into or approving a service contract, the commissioner must 
43.30 	determine, at least, that:
43.31 	(1) no current state employee is able and available to perform the services called 
43.32 	for by the contract;
44.1 	(2)(1) the work to be performed under the contract is necessary to the agency's 
44.2 	achievement of its statutory responsibilities and there is statutory authority to enter into 
44.3 	the contract;
44.4 	(3)(2) the contract will not establish an employment relationship between the state 
44.5 	or the agency and any persons performing under the contract;
44.6 	(4)(3) the contractor and agents are not employees of the state, except as authorized 
44.7 	in section 15.062;
44.8 	(5)(4) the contracting agency has specified a satisfactory method of evaluating and 
44.9 	using the results of the work to be performed; and
44.10 	(6)(5) the combined contract and amendments will not exceed five years without 
44.11 	specific, written approval by the commissioner according to established policy, procedures, 
44.12 	and standards, or unless otherwise provided for by law. The term of the original contract 
44.13 	must not exceed two years, unless the commissioner determines that a longer duration is 
44.14 	in the best interest of the state.
44.15 	(b) For purposes of paragraph (a), clause (1), employees are available if qualified 
44.16 	and:
44.17 	(1) are already doing the work in question; or
44.18 	(2) are on layoff status in classes that can do the work in question.
44.19 	An employee is not available if the employee is doing other work, is retired, or has decided 
44.20 	not to do the work in question.
44.21 	(c)(b) This section does not apply to an agency's use of inmates pursuant to sections 
44.22 	241.20 to 241.23 or to an agency's use of persons required by a court to provide:
44.23 	(1) community service; or
44.24 	(2) conservation or maintenance services on lands under the jurisdiction and control 
44.25 	of the state.

44.26 	Sec. 44. [16D.18] RECIPROCAL AGREEMENT.
44.27 	(a) The commissioner is authorized to enter into agreements with the federal 
44.28 	Department of the Treasury that provide for offsetting state payments against federal 
44.29 	nontax obligations. Except as provided in paragraph (d), the commissioner may charge a 
44.30 	fee of $20 per transaction for such offsets and may collect this offset fee from the debtor 
44.31 	by deducting it from the state payment. The agreement may provide for offsetting federal 
44.32 	payments, as authorized by federal law, against state tax and nontax obligations, and 
44.33 	collecting the offset cost from the debtor. The agreement shall provide that the federal 
44.34 	Department of the Treasury may deduct a fee from each administrative offset and state 
44.35 	payment offset. Setoffs to collect state and other entity obligations under chapters 16D, 
45.1 	270A, 270C, and any other provision of Minnesota Statutes occur before a state payment 
45.2 	offset. For purposes of this paragraph "administrative offset" is any offset of federal 
45.3 	payments to collect state debts and "state payment offset" is any offset of state payments 
45.4 	to collect federal nontax debts. 
45.5 	(b) A debt is eligible for offset under this program if notice of intent to offset the 
45.6 	debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if 
45.7 	required by federal law or an agreement with the federal Department of the Treasury. 
45.8 	When there is an agreement for scheduled payments on an account, the debtor must be 
45.9 	sent this notice each time an additional debt is claimed.
45.10 	(c) The debtor shall have the time period required for notice under paragraph (b) to 
45.11 	contest the offset. An agreement under this section must not allow for offset of payments 
45.12 	if the debt that would be subject to the offset is being contested or if the time for appealing 
45.13 	the determination of the debt has not yet expired. The treasury offset program agreement 
45.14 	entered into by the state must not require federal agencies to provide different due process 
45.15 	than the requirements under Code of Federal Regulations, title 31, section 285.6.
45.16 	(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner 
45.17 	enters into a contingency fee agreement with a nonstate vendor to provide assistance 
45.18 	under this section, the commissioner may charge a debtor a fee for the processing of state 
45.19 	payment offsets for the recovery of federal nontax debts or the processing of federal 
45.20 	payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt 
45.21 	and may be withheld from any refund, reimbursement, or other money held for the debtor. 
45.22 	The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply 
45.23 	to fees charged under this paragraph.

45.24 	EFFECTIVE DATE. This section is effective the day following final enactment. As 
45.25 	soon as possible after that date, the commissioner must discuss an agreement authorized 
45.26 	under this section with appropriate federal officials, and if an agreement is entered into, 
45.27 	the commissioner must begin to implement it to collect debts owed to the state as soon as 
45.28 	possible.

45.29 	Sec. 45. Minnesota Statutes 2010, section 37.06, is amended to read:
45.30 	37.06 SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
45.31 	The secretary shall keep a complete record of the proceedings of the annual meetings 
45.32 	of the State Agricultural Society and all meetings of the board of managers and any 
45.33 	committee of the board, keep all accounts of the society other than those kept by the 
45.34 	treasurer of the society, and perform other duties as directed by the board of managers. On 
46.1 	or before December 31 each year, the secretary shall report to the governor for the fiscal 
46.2 	year ending October 31 all the proceedings of the society during the current year and its 
46.3 	financial condition as appears from its books. This report must contain a full, detailed 
46.4 	statement of all receipts and expenditures during the year.
46.5 	The books and accounts of the society for the fiscal year must be examined and 
46.6 	audited annually by an independent auditor, either a private auditor or the legislative 
46.7 	auditor.  If the audit is conducted by the legislative auditor, the cost of the examination 
46.8 	must be paid by the society to the state and credited to the general fund.
46.9 	A summary of this examination, certified by the legislative auditor, must be 
46.10 	appended to the secretary's report, along with the legislative auditor's recommendations 
46.11 	and the proceedings of the first annual meeting of the society held following the secretary's 
46.12 	report, including addresses made at the meeting as directed by the board of managers. The 
46.13 	summary, recommendations, and proceedings must be printed in the same manner as the 
46.14 	reports of state officers. Copies of the report must be printed annually and distributed as 
46.15 	follows: to each society or association entitled to membership in the society, to each 
46.16 	newspaper in the state, and the remaining copies as directed by the board of managers.

46.17 	Sec. 46. Minnesota Statutes 2010, section 43A.08, subdivision 1, is amended to read:
46.18 		 Subdivision 1.Unclassified positions.  Unclassified positions are held by employees 
46.19 	who are:
46.20 	 (1) chosen by election or appointed to fill an elective office;
46.21 	 (2) heads of agencies required by law to be appointed by the governor or other 
46.22 	elective officers, and the executive or administrative heads of departments, bureaus, 
46.23 	divisions, and institutions specifically established by law in the unclassified service;
46.24 	 (3) deputy and assistant agency heads and one confidential secretary in the agencies 
46.25 	listed in subdivision 1a and in the Office of Strategic and Long-Range Planning section 
46.26 	15.06, subdivision 1;
46.27 	 (4) the confidential secretary to each of the elective officers of this state and, for the 
46.28 	secretary of state and state auditor, an additional deputy, clerk, or employee;
46.29 	 (5) intermittent help employed by the commissioner of public safety to assist in 
46.30 	the issuance of vehicle licenses;
46.31 	 (6) employees in the offices of the governor and of the lieutenant governor and one 
46.32 	confidential employee for the governor in the Office of the Adjutant General;
46.33 	 (7) employees of the Washington, D.C., office of the state of Minnesota;
46.34 	 (8) employees of the legislature and of legislative committees or commissions; 
46.35 	provided that employees of the Legislative Audit Commission, except for the legislative 
47.1 	auditor, the deputy legislative auditors, and their confidential secretaries, shall be 
47.2 	employees in the classified service;
47.3 	 (9) presidents, vice-presidents, deans, other managers and professionals in 
47.4 	academic and academic support programs, administrative or service faculty, teachers, 
47.5 	research assistants, and student employees eligible under terms of the federal Economic 
47.6 	Opportunity Act work study program in the Perpich Center for Arts Education and the 
47.7 	Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance 
47.8 	employees, or any professional or managerial employee performing duties in connection 
47.9 	with the business administration of these institutions;
47.10 	 (10) officers and enlisted persons in the National Guard;
47.11 	 (11) attorneys, legal assistants, and three confidential employees appointed by the 
47.12 	attorney general or employed with the attorney general's authorization;
47.13 	 (12) judges and all employees of the judicial branch, referees, receivers, jurors, and 
47.14 	notaries public, except referees and adjusters employed by the Department of Labor 
47.15 	and Industry;
47.16 	 (13) members of the State Patrol; provided that selection and appointment of State 
47.17 	Patrol troopers must be made in accordance with applicable laws governing the classified 
47.18 	service;
47.19 	 (14) examination monitors and intermittent training instructors employed by the 
47.20 	Departments of Management and Budget and Commerce and by professional examining 
47.21 	boards and intermittent staff employed by the technical colleges for the administration of 
47.22 	practical skills tests and for the staging of instructional demonstrations;
47.23 	(15) student workers;
47.24 	(16) executive directors or executive secretaries appointed by and reporting to any 
47.25 	policy-making board or commission established by statute;
47.26 	(17) employees unclassified pursuant to other statutory authority;
47.27 	(18) intermittent help employed by the commissioner of agriculture to perform 
47.28 	duties relating to pesticides, fertilizer, and seed regulation;
47.29 	(19) the administrators and the deputy administrators at the State Academies for the 
47.30 	Deaf and the Blind; and
47.31 	(20) chief executive officers in the Department of Human Services.

47.32 	Sec. 47. Minnesota Statutes 2010, section 43A.20, is amended to read:
47.33 	43A.20 PERFORMANCE APPRAISAL AND PAY.
47.34 	(a) The commissioner shall design and maintain a performance appraisal system 
47.35 	under which each employee in the civil service in the executive branch shall be evaluated 
48.1 	and counseled on work performance at least once a year. The performance appraisal 
48.2 	system must include three components:
48.3 	(1) evaluation of the individual employee's performance relative to goals for that 
48.4 	individual, which must constitute a majority of the overall determination of an employee's 
48.5 	performance;
48.6 	(2) evaluation of the performance of the individual employee's program, defined by 
48.7 	the agency head, toward meeting  targeted outcomes for the program; and
48.8 	(3) evaluation of the performance of the  entire agency toward meeting targeted 
48.9 	outcomes for the agency.
48.10 	(b) Individual pay increases for all employees not represented by an exclusive 
48.11 	representative certified pursuant to chapter 179A shall be based on the evaluation
48.12 	evaluations required by paragraph (a) and other factors consistent with paragraph (a) 
48.13 	that the commissioner negotiates in collective bargaining agreements or includes in the 
48.14 	plans developed pursuant to section 43A.18. Collective bargaining agreements entered 
48.15 	into pursuant to chapter 179A may, and are encouraged to, provide for pay increases 
48.16 	based on employee work performance.An employee in the executive branch may not 
48.17 	receive an increase in salary or wages based on cost of living or progression to another 
48.18 	step or lane unless the employee's supervisor certifies that the employee's performance 
48.19 	has been satisfactory.
48.20 	(c) This section does not apply to faculty and administrators in the Minnesota State 
48.21 	Colleges and University system.
48.22 	(d) This section supersedes any conflicting provision of other law.

48.23 	EFFECTIVE DATE. This section is effective July 1, 2011. For employees covered 
48.24 	by a collective bargaining agreement, this section applies to collective bargaining 
48.25 	agreements entered into on or after that date.

48.26 	Sec. 48. [43A.347] REDUCTION IN STATE WORK FORCE.
48.27 		Subdivision 1.Required reduction. (a) The number of full-time equivalent 
48.28 	employees employed in the executive branch, and the costs directly associated with 
48.29 	employing those persons, must be reduced by at least 15 percent by June 30, 2015, and 
48.30 	thereafter, compared to the number of full-time equivalent positions and the costs directly 
48.31 	associated with those positions on January 1, 2011.
48.32 	(b) An appointing authority may use any or all of the following to achieve this 
48.33 	requirement: attrition, a hard hiring freeze, furloughs, and layoffs.
48.34 	(c) For purposes of this section:
49.1 	(1) "costs directly associated" with employing people means the cost of salaries and 
49.2 	benefits, including the costs of employer contributions to public pension plans; and
49.3 	(2) "executive branch" does not include the Minnesota State Colleges and 
49.4 	Universities, the Department of Military Affairs, or the Department of Veterans Affairs.
49.5 		Subd. 2.Savings. Savings resulting from implementation of this section must 
49.6 	cancel back to the fund in which the savings occurred.
49.7 		Subd. 3.Application of Public Employment Labor Relations Act. Unilateral 
49.8 	implementation of this section is not an unfair labor practice under chapter 179A.

49.9 	Sec. 49. Minnesota Statutes 2010, section 45.013, is amended to read:
49.10 	45.013 POWER TO APPOINT STAFF.
49.11 	The commissioner of commerce may appoint fourone deputy commissioners, four 
49.12 	assistant commissioners, and an assistant to the commissioner. Those positions, as well as 
49.13 	that ofand a confidential secretary, arein the unclassified service. The commissioner may 
49.14 	appoint other employees necessary to carry out the duties and responsibilities entrusted to 
49.15 	the commissioner.

49.16 	Sec. 50. Minnesota Statutes 2010, section 84.01, subdivision 3, is amended to read:
49.17 		Subd. 3.Employees; delegation. Subject to the provisions of Laws 1969, chapter 
49.18 	1129, and to other applicable laws The commissioner shall organize the department and 
49.19 	employ up to three assistant commissioners, each of whom shall serve at the pleasure of 
49.20 	the commissioner in the unclassified service, one of whom shall have responsibility for 
49.21 	coordinating and directing the planning of every division within the agency, and such other
49.22 	officers, employees, and agents as the commissioner may deem necessary to discharge the 
49.23 	functions of the department, define the duties of such officers, employees, and agents and 
49.24 	to delegate to them any of the commissioner's powers, duties, and responsibilities subject 
49.25 	to the control of, and under the conditions prescribed by, the commissioner. Appointments 
49.26 	to exercise delegated power shall be by written order filed with the secretary of state.

49.27 	Sec. 51. Minnesota Statutes 2010, section 116.03, subdivision 1, is amended to read:
49.28 		Subdivision 1.Office. (a) The office of commissioner of the Pollution Control 
49.29 	Agency is created and is under the supervision and control of the commissioner, who is 
49.30 	appointed by the governor under the provisions of section 15.06.  
49.31 	(b) The commissioner may appoint a deputy commissioner and assistant 
49.32 	commissioners who shall be in the unclassified service.
50.1 	(c) The commissioner shall make all decisions on behalf of the agency that are not 
50.2 	required to be made by the agency under section 116.02.  

50.3 	Sec. 52. Minnesota Statutes 2010, section 116J.01, subdivision 5, is amended to read:
50.4 		Subd. 5.Departmental organization. (a) The commissioner shall organize the 
50.5 	department as provided in section 15.06. 
50.6 	(b) The commissioner may establish divisions and offices within the department. 
50.7 	The commissioner may employ four deputy commissioners in the unclassified service.
50.8 	(c) The commissioner shall:
50.9 	(1) employ assistants and other officers, employees, and agents that the commissioner 
50.10 	considers necessary to discharge the functions of the commissioner's office;
50.11 	(2) define the duties of the officers, employees, and agents, and delegate to them any 
50.12 	of the commissioner's powers, duties, and responsibilities, subject to the commissioner's 
50.13 	control and under conditions prescribed by the commissioner.
50.14 	(d) The commissioner shall ensure that there are at least three employment and 
50.15 	economic development officers in state offices in nonmetropolitan areas of the state who 
50.16 	will work with local units of government on developing local employment and economic 
50.17 	development.

50.18 	Sec. 53. Minnesota Statutes 2010, section 116J.035, subdivision 4, is amended to read:
50.19 		Subd. 4.Delegation of powers. The commissioner may delegate, in written orders 
50.20 	filed with the secretary of state, any powers or duties subject to the commissioner's 
50.21 	control to officers and employees in the department. Regardless of any other law, the 
50.22 	commissioner may delegate the execution of specific contracts or specific types of 
50.23 	contracts to the commissioner's deputies, an assistant commissioner, deputy or a program 
50.24 	director if the delegation has been approved by the commissioner of administration and 
50.25 	filed with the secretary of state.

50.26 	Sec. 54. Minnesota Statutes 2010, section 161.1419, subdivision 8, is amended to read:
50.27 		Subd. 8.Expiration. The commission expires on June 30, 2012 2016.

50.28 	Sec. 55. Minnesota Statutes 2010, section 174.02, subdivision 2, is amended to read:
50.29 		Subd. 2.Unclassified positions. The commissioner may establish four positions 
50.30 	in the unclassified service at theappoint a deputy and assistant commissioner, assistant 
50.31 	to commissioner orand a personal secretary levels. No more than two of these positions 
50.32 	shall be at the deputy commissioner level in the unclassified service.

51.1 	Sec. 56. Minnesota Statutes 2010, section 241.01, subdivision 2, is amended to read:
51.2 		Subd. 2.Deputies Deputy. The commissioner of corrections may appoint and 
51.3 	employ no more than twoa deputy commissioners commissioner. The commissioner may 
51.4 	also appoint a personal secretary, who shall serve at the commissioner's pleasure in the 
51.5 	unclassified civil service.

51.6 	Sec. 57. Minnesota Statutes 2010, section 270C.41, is amended to read:
51.7 	270C.41 AGREEMENT WITH INTERNAL REVENUE SERVICE
51.8 	AGREEMENTS WITH FEDERAL GOVERNMENT.
51.9 		Subdivision 1.Agreement with Internal Revenue Service. Pursuant to section 
51.10 	270B.12, the commissioner may enter into an agreement with the Internal Revenue 
51.11 	Service to identify taxpayers who have refunds due from the department and liabilities 
51.12 	owing to the Internal Revenue Service. In accordance with the procedures established in 
51.13 	the agreement, the Internal Revenue Service may levy against the refunds to be paid by 
51.14 	the department. For each refund levied upon, the commissioner shall first deduct from 
51.15 	the refund a fee of $20, and then remit the refund or the amount of the levy, whichever 
51.16 	is less, to the Internal Revenue Service. The proceeds of fees shall be deposited into the 
51.17 	Department of Revenue recapture revolving fund under section 270A.07, subdivision 1.
51.18 		Subd. 2.Reciprocal offset agreements. (a) The commissioner is authorized 
51.19 	to enter into agreements with the federal Department of the Treasury that provide for 
51.20 	offsetting state payments against federal nontax obligations. Except as provided in 
51.21 	paragraph (d), the commissioner may charge a fee of $20 per transaction for such offsets 
51.22 	and may collect this offset fee from the debtor by deducting it from the state payment. 
51.23 	The agreement may provide for offsetting federal payments, as authorized by federal law, 
51.24 	against state tax and nontax obligations, and collecting the offset cost from the debtor. 
51.25 	The agreement shall provide that the federal Department of the Treasury may deduct a 
51.26 	fee from each administrative offset and state payment offset. Setoffs to collect state and 
51.27 	other entity obligations under chapters 16D,  270A, 270C, and any other provision of 
51.28 	Minnesota Statutes, occur before a state payment offset. For purposes of this paragraph 
51.29 	"administrative offset" is any offset of federal payments to collect state debts and "state 
51.30 	payment offset" is any offset of state payments to collect federal nontax debts.
51.31 	(b) A debt is eligible for offset under this program if notice of intent to offset the 
51.32 	debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if 
51.33 	required by federal law or an agreement with the federal Department of the Treasury. 
51.34 	When there is an agreement for scheduled payments on an account, the debtor must be 
51.35 	sent this notice each time an additional debt is claimed.
52.1 	(c) The debtor shall have the time period required for notice under paragraph (b) to 
52.2 	contest the offset. An agreement under this section must not allow for offset of payments 
52.3 	if the debt that would be subject to the offset is being contested or if the time for appealing 
52.4 	the determination of the debt has not yet expired. The treasury offset program agreement 
52.5 	entered into by the state must not require federal agencies to provide different due process 
52.6 	than the requirements under Code of Federal Regulations, title 31, section 285.6.
52.7 	(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner 
52.8 	enters into a contingency fee agreement with a nonstate vendor to provide assistance 
52.9 	under this section, the commissioner may charge a debtor a fee for the processing of state 
52.10 	payment offsets for the recovery of federal nontax debts or the processing of federal 
52.11 	payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt 
52.12 	and may be withheld from any refund, reimbursement, or other money held for the debtor. 
52.13 	The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply 
52.14 	to fees charged under this paragraph.

52.15 	EFFECTIVE DATE. This section is effective the day following final enactment. As 
52.16 	soon as possible after that date, the commissioner must discuss an agreement authorized 
52.17 	under this section with appropriate federal officials, and if an agreement is entered into, 
52.18 	the commissioner must begin to implement it to collect debts owed to the state as soon as 
52.19 	possible.

52.20 	Sec. 58. Minnesota Statutes 2010, section 270C.545, is amended to read:
52.21 	270C.545 FEDERAL TAX REFUND OFFSET FEES; TIME LIMIT FOR 
52.22 	SUBMITTING CLAIMS FOR OFFSET.
52.23 	For If fees are charged by the Department of the Treasury of the United States for 
52.24 	the offset of federal tax refunds that or the offset of federal payments and these fees are 
52.25 	deducted from the refund or the federal payment amounts remitted to the commissioner, 
52.26 	then the unpaid debts of the taxpayers whose refunds or federal payments are being 
52.27 	offset to satisfy the debts are reduced only by the actual amount of the refund payments 
52.28 	or federal payments received by the commissioner. Notwithstanding any other provision 
52.29 	of law to the contrary, a claim for the offset of a federal tax refund must be submitted to 
52.30 	the Department of the Treasury of the United States within ten years after the date of the 
52.31 	assessment of the tax owed by the taxpayer whose refund is to be offset to satisfy the 
52.32 	debt. For court debts referred to the commissioner under section 16D.04, subdivision 2, 
52.33 	paragraph (a), the federal refund offset fees are deducted as provided in this section, but 
52.34 	the ten-year time limit prescribed in this section for tax debts does not apply.

53.1 	Sec. 59. Minnesota Statutes 2010, section 471.697, subdivision 2, is amended to read:
53.2 		Subd. 2.First class city audits. The state auditor shall continue to audit cities of the 
53.3 	first class pursuant to Notwithstanding section 6.49, a city of the first class may provide for 
53.4 	an audit to be performed by a certified public accountant firm meeting the requirements 
53.5 	of section 326A.05. The audit performed by a certified public accountant must meet the 
53.6 	standards and be in the form required by the state auditor. The state auditor may require 
53.7 	additional information from the certified public accountant firm as the state auditor deems 
53.8 	in the public interest, but the state auditor must accept the audit unless the state auditor 
53.9 	determines that it does not meet recognized industry auditing standards.

53.10 	Sec. 60. Laws 2010, chapter 361, article 3, section 8, is amended to read:
53.11 	Sec. 8. USE OF CARRYFORWARD.
 53.12 	The restrictions in Minnesota Statutes, section 16A.281, on the use of money carried 
53.13 	forward from one biennium to another shall not apply to money the legislative auditor 
53.14 	carried forward from the previous biennium for use in fiscal years 2010 and 2011 ending 
53.15 	June 30, 2009, or the biennium ending June 30, 2011. The legislative auditor may use the 
53.16 	carry forward money for costs related to the conduct of audits related to funds authorized 
53.17 	in the Minnesota Constitution, Article XI, section 15, and audits related to the institutions, 
53.18 	offices, and functions of the Minnesota State Colleges and Universities.

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

53.20 	Sec. 61. STATE BUILDING EFFICIENCY.
 53.21 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner 
53.22 	of administration shall issue a request for proposals for a contract to provide 
53.23 	recommendations for efficiencies in state building management to the commissioner. The 
53.24 	request for proposals shall require the vendor to provide a system that will overlay existing 
53.25 	building controls and instrumentation that influence energy consumption, including space, 
53.26 	equipment and system performance, facility operations, and facility maintenance. The 
53.27 	request for proposals shall require the vendor to provide a system that provides concurrent 
53.28 	building monitoring, energy consumption optimization, space utilization, and equipment 
53.29 	performance information.
53.30 		Subd. 2.Standards-based platform system with data analytics. The request for 
53.31 	proposals must require the vendor to provide: (1) a standards-based platform system with 
53.32 	the capability to integrate and coordinate a variety of control systems, including their data, 
53.33 	and the ability to manage all state buildings and their control systems; and (2) a system that 
53.34 	uses data analytics to integrate corrective action notification and work order management.
54.1 		Subd. 3.Proof of concept phase. The request for proposals shall require the 
54.2 	selected vendor, at no cost to the state, to begin work on the contract by implementing 
54.3 	its proposed system on one to three instrumented state buildings to demonstrate the 
54.4 	savings provided by the system. The system provided by the vendor must be capable of 
54.5 	application to all instrumented state-owned buildings. During this proof of concept phase, 
54.6 	the vendor and the state must agree on how savings during the full implementation phase 
54.7 	will be defined, measured, and verified, to ensure that the contract will provide the highest 
54.8 	possible return on investment to the state.
54.9 		Subd. 4.Full implementation and payment. The request for proposal must 
54.10 	require the state to implement the system  provided by the vendor in all instrumented 
54.11 	buildings owned by the state if the state and the vendor have agreed on how savings 
54.12 	will be defined, measured, and verified, and the work done under the requirements of 
54.13 	subdivision 3 provides material savings to the state. After the full implementation of the 
54.14 	system provided by the vendor, the vendor shall be paid by the state from the savings 
54.15 	attributable to the work done by the vendor, according to the terms and performance 
54.16 	measures negotiated in the contract.
54.17 		Subd. 5.Selection of vendor. The commissioner of administration shall select a 
54.18 	vendor from the responses to the request for proposal by September 1, 2011.
54.19 		Subd. 6.Progress report. The commissioner shall provide a report describing the 
54.20 	progress made under this section to the governor and the chairs and ranking minority 
54.21 	members of the legislative committees with jurisdiction over the commissioner of 
54.22 	administration by January 15, 2012. The report shall provide a dynamic scoring analysis 
54.23 	of the work described in the report.

54.24 	Sec. 62. FLEET MANAGEMENT IMPROVEMENTS.
 54.25 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner of 
54.26 	administration shall issue a request for proposals to improve the procurement, allocation, 
54.27 	control, energy efficiency, maintenance, and in-service life of state vehicles. The request 
54.28 	for proposal shall require the vendor to provide a system for:
54.29 	(1) a life-cycle solution for vehicle management, covering all stages from 
54.30 	procurement through disposal of state vehicles; and
54.31 	(2) the integration of data analytics to provide vehicle tracking, usage, and proactive 
54.32 	maintenance management.
54.33 		Subd. 2.Proof of concept phase. The request for proposals must specify that the 
54.34 	vendor, at no cost to the state, must implement its system in one vehicle maintenance 
54.35 	facility on a sample group of vehicles to demonstrate the cost-savings potential of the 
55.1 	recommendations. During this proof of concept phase, the vendor and the state must 
55.2 	agree on how savings during the full implementation phase will be defined, measured, 
55.3 	and verified, to ensure that the contract will provide the highest possible return on 
55.4 	investment to the state.
55.5 		Subd. 3.Full implementation and payment. The request for proposal must require 
55.6 	the state to implement the recommendations provided by the vendor if the state and the 
55.7 	vendor have agreed on how savings will be defined, measured, and verified, and the work 
55.8 	done under the requirements of subdivision 2 provides material savings to the state. After 
55.9 	the full implementation of the system provided by the vendor, the vendor shall be paid by 
55.10 	the state from the savings attributable to the work done by the vendor, according to the 
55.11 	terms and performance measures negotiated in the contract.
55.12 		Subd. 4.Selection of vendor. The commissioner of administration shall select a 
55.13 	vendor from the responses to the request for proposal by September 1, 2011.
55.14 		Subd. 5.Progress report. The commissioner shall provide a report describing the 
55.15 	progress made under this section to the governor and the chairs and ranking minority 
55.16 	members of the legislative committees with jurisdiction over the commissioner of 
55.17 	administration by January 15, 2012. The report shall provide a dynamic scoring analysis 
55.18 	of the work described in the report.

55.19 	Sec. 63. SALARY FREEZE.
 55.20 	(a) Effective July 1, 2011, and until June 30, 2013, a state employee may not receive 
55.21 	a salary or wage increase. This section prohibits any increases, including but not limited 
55.22 	to: across-the-board increases; cost-of-living adjustments; increases based on longevity; 
55.23 	step increases; increases in the form of lump-sum payments; increases in employer 
55.24 	contributions to deferred compensation plans; or any other pay grade adjustments of 
55.25 	any kind. For purposes of this section, "salary or wage" does not include employer 
55.26 	contributions toward the cost of medical or dental insurance premiums, provided that 
55.27 	employee contributions to the costs of medical or dental insurance premiums are not 
55.28 	decreased. This section does not prohibit an increase in the rate of salary and wages for an 
55.29 	employee who is promoted or transferred to a position with greater responsibilities and 
55.30 	with a higher salary or wage rate. For purposes of this section, state employee means an 
55.31 	employee as defined in Minnesota Statutes, section 43A.02, subdivision 21, but does not 
55.32 	include faculty or administrators in the Minnesota State Colleges and Universities system.
55.33 	(b) A state appointing authority may not enter into a collective bargaining agreement 
55.34 	or implement a compensation plan that increases salary or wages in a manner prohibited 
55.35 	by this section. Neither a state appointing authority nor an exclusive representative of state 
56.1 	employees may request interest arbitration in relation to an increase in salary or wages that 
56.2 	is prohibited by this section, and an arbitrator may not issue an award that would increase 
56.3 	salary or wages in a manner prohibited by this section.
56.4 	(c) This section supersedes Minnesota Statutes, section 179A.20, subdivision 6, or 
56.5 	other law, to the extent those laws would authorize an increase prohibited by this section.

56.6 	EFFECTIVE DATE. Paragraph (b) is effective the day following final enactment. 
56.7 	Paragraphs (a) and (c) are effective June 30, 2011.

56.8 	Sec. 64. STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE 
56.9 	INCENTIVE PROGRAM.
 56.10 	The commissioner of management and budget may develop and implement a 
56.11 	program that creates an incentive for efficient use by state employees of State Employee 
56.12 	Group Insurance Program (SEGIP). The program may reward employees covered by 
56.13 	SEGIP as a group if per capita employee health care costs paid by SEGIP for a calendar 
56.14 	year prove to be less than estimated by the commissioner prior to the beginning of the 
56.15 	calendar year. The reward may consist of payments of one-half of the cost-savings into 
56.16 	the employees' health reimbursement accounts, to be made no later than June 30 of the 
56.17 	following calendar year.

56.18 	Sec. 65. STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT 
56.19 	ELIGIBILITY VERIFICATION AUDIT SERVICES.
 56.20 		Subdivision 1.Request for proposals. By August 1, 2011, the commissioner of 
56.21 	management and budget shall issue a request for proposals for a contract to provide 
56.22 	dependent eligibility verification audit services for state-paid hospital, medical, and dental 
56.23 	benefits provided to participants in the state employee group insurance program and their 
56.24 	dependents. The request for proposals must require that the vendor will:
56.25 	(1) conduct a document-model dependent eligibility verification audit of all plans 
56.26 	offered under Minnesota Statutes, sections 43A.22 to 43A.31;
56.27 	(2) identify ineligible dependents covered by the plans and report those findings to 
56.28 	the commissioner and third-party administrators of the state's employee health plans, as 
56.29 	directed by the commissioner; and
56.30 	(3) implement a process for ongoing eligibility verification following the conclusion 
56.31 	of the dependent eligibility verification audit required by this section.
56.32 		Subd. 2.Additional vendor criteria. The request for proposals required by 
56.33 	subdivision 1 must require the vendor to provide the following minimum capabilities and 
56.34 	experience in performing the services described in subdivision 1:
57.1 	(1) a rules-based process for making objective eligibility determinations;
57.2 	(2) assigned eligibility advocates to assist employees through the verification 
57.3 	process;
57.4 	(3) a formal claims and appeals process; and
57.5 	(4) experience in the performance of dependent eligibility verification audits.
57.6 		Subd. 3.Contract required. By November 1, 2011, the commissioner must enter 
57.7 	into a contract for the services specified in subdivision 1. The contract must incorporate 
57.8 	a performance-based vendor financing option that compensates the vendor based on the 
57.9 	amount of savings generated by the work performed under the contract.

57.10 	Sec. 66. SEGIP SAVINGS.
 57.11 	The commissioner of management and budget must negotiate and implement 
57.12 	changes to the state employee group insurance program that will result in reduced general 
57.13 	fund contributions from state employers subject to appropriation reductions under article 
57.14 	1, section 39, of at least $90,009,000 during the biennium ending June 30, 2013.

57.15 	Sec. 67. TAX FRAUD PREVENTION AND DETECTION.
 57.16 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner of 
57.17 	revenue shall issue a request for proposals to prevent and detect tax fraud and increase 
57.18 	delinquent tax revenue collection. The request for proposals shall require the vendor to 
57.19 	provide data analytics capabilities, including, but not limited to, predictive modeling 
57.20 	techniques and other forms of advanced analytics that will integrate into the current tax 
57.21 	processing system to detect compliance issues before tax return processing is completed, 
57.22 	and optimization algorithms that will assist the commissioner in maximizing revenues 
57.23 	collected with current levels of compliance staff.
57.24 		Subd. 2.Proof of concept phase. The selected vendor, at no cost to the state, shall 
57.25 	implement its recommendations on a subset of data provided by the commissioner to 
57.26 	demonstrate the cost-savings potential of the recommendations.
57.27 		Subd. 3.Data. Data provided to the vendor by the commissioner for the proof of 
57.28 	concept phase must not include not public data, as defined in section 13.02, subdivision 8a.
57.29 		Subd. 4.Full implementation phase. The request for proposal must require the 
57.30 	state to implement the recommendations provided by the vendor if the work done under 
57.31 	the requirements of subdivision 2 provides material savings to the state. After the full 
57.32 	implementation of the system provided by the vendor, the vendor shall be paid by the state 
57.33 	from the savings attributable to the work done by the vendor, according to the terms and 
58.1 	performance measures negotiated in the contract. The contract shall not compensate the 
58.2 	vendor based on a percentage of taxes assessed or collected.
58.3 		Subd. 5.Selection of vendor. The commissioner of administration shall select a 
58.4 	vendor from the responses to the request for proposal by September 1, 2011.
58.5 		Subd. 6.Progress report. The commissioner shall provide a report describing the 
58.6 	progress made under this section to the governor and the chairs and ranking minority 
58.7 	members of the legislative committees with jurisdiction over the commissioner of revenue 
58.8 	and data practices by January 15, 2012. The report shall provide a dynamic scoring 
58.9 	analysis of the work described in the report and address data access and privacy issues 
58.10 	involved in implementation of the system.

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

58.12 	Sec. 68. STRATEGIC SOURCING REQUEST FOR PROPOSALS.
 58.13 		Subdivision 1.Request for proposals. By July 1, 2011, the commissioner 
58.14 	of administration shall issue a request for proposals for a contract to provide 
58.15 	recommendations for efficiencies in strategic sourcing to the commissioner. For the 
58.16 	purposes of this section, "strategic sourcing" has the meaning given in Minnesota Statutes, 
58.17 	section 16C.02, subdivision 20. The request for proposals shall require the vendor to 
58.18 	provide recommendations for improvements to methods used by the commissioner 
58.19 	to analyze and reduce spending on goods and services, including, but not limited to, 
58.20 	spend analysis, product standardization, contract consolidation, negotiations, multiple 
58.21 	jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and 
58.22 	other techniques.
58.23 		Subd. 2.Proof of concept phase. The request for proposal shall require the selected 
58.24 	vendor, at no cost to the state, to begin work on the contract by assisting the commissioner 
58.25 	in implementing its proposed solution on selected state procurement processes to 
58.26 	demonstrate the savings provided by the recommendations. The system provided by the 
58.27 	vendor must be capable of application to the state procurement system.
58.28 		Subd. 3.Full implementation and payment. The request for proposal must require 
58.29 	the state to implement the recommendations provided by the vendor in the entire state 
58.30 	procurement system if the work done under the requirements of subdivision 2 provides 
58.31 	material savings to the state. After the full implementation of the system provided by the 
58.32 	vendor, the vendor shall be paid by the state from the savings attributable to the work done 
58.33 	by the vendor, according to the terms and performance measures negotiated in the contract.
59.1 		Subd. 4.Selection of vendor. The commissioner of administration shall select, 
59.2 	from qualified respondents, a vendor from the responses to the request for proposal by 
59.3 	September 1, 2011.
59.4 		Subd. 5.Progress report. The commissioner shall provide a report describing the 
59.5 	progress made under this section to the governor and the chairs and ranking minority 
59.6 	members of the legislative committees with jurisdiction over the commissioner of 
59.7 	administration by January 15, 2012.

59.8 	Sec. 69. STATE JOB CLASSIFICATIONS.
 59.9 	The commissioner of management and budget shall report to the legislature by 
59.10 	January 15, 2012, on a process to redesign and consolidate the job classification plan for 
59.11 	executive branch employees, with a goal of assigning all classified positions to no more 
59.12 	than 50 job families. The process must lead to development of a new job classification 
59.13 	plan designed to enhance the ability of state agencies to flexibly manage their workforces 
59.14 	to meet changing needs and demands of the agency, and to enhance the ability of state 
59.15 	employees to transfer to other positions for which they are qualified. In developing this 
59.16 	process, the commissioner must meet and confer with the exclusive representatives of each 
59.17 	affected bargaining unit. The report to the legislature must identify implementation issues.

59.18 	Sec. 70. HELP AMERICA VOTE ACT.
 59.19 	(a) If the secretary of state determines that this state is otherwise eligible to receive 
59.20 	an additional requirements payment of federal money under the Help America Vote Act, 
59.21 	Public Law 107-252, the secretary must certify to the commissioner of management and 
59.22 	budget the amount, if any, needed to meet the matching requirement of section 253(b)(5) 
59.23 	of the Help America Vote Act. In the certification, the secretary shall specify the portion 
59.24 	of the match that should be taken from an unencumbered general fund appropriation to 
59.25 	the Office of the Secretary of State not designated for a different purpose. Upon receipt 
59.26 	of that certification, or as soon as an unencumbered general fund appropriation becomes 
59.27 	available, whichever occurs later, the commissioner must transfer the specified amount 
59.28 	to the Help America Vote Act account. Funds under the Help America Vote Act may be 
59.29 	spent only following legislative approval.
59.30 	(b) This section expires on June 30, 2013.

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

59.32 	Sec. 71. ESTIMATED REVENUE.
 60.1 	The initiatives in sections 44, 57, 58, and 67 are expected to result in new general 
60.2 	fund revenues of $169,900,000 for the biennium ending June 30, 2013.

60.3 	Sec. 72.  REPEALER.
 60.4 	Minnesota Statutes 2010, sections 16C.085; 43A.047; and 179A.23, are repealed.

60.5 	ARTICLE 4
60.6 	CONSOLIDATION OF INFORMATION TECHNOLOGY SERVICES

60.7 	Section 1. Minnesota Statutes 2010, section 16B.99, is amended to read:
60.8 	16B.99 GEOSPATIAL INFORMATION OFFICE.
60.9 		Subdivision 1.Creation. The Minnesota Geospatial Information Office is created 
60.10 	under the supervision of the commissioner of administration chief geospatial information 
60.11 	officer, who is appointed by the chief information officer.
60.12 		Subd. 2.Responsibilities; authority. The office has authority to provide 
60.13 	coordination, guidance, and leadership, and to plan the implementation of Minnesota's 
60.14 	geospatial information technology. The office must identify, coordinate, and guide 
60.15 	strategic investments in geospatial information technology systems, data, and services to 
60.16 	ensure effective implementation and use of Geospatial Information Systems (GIS) by state 
60.17 	agencies to maximize benefits for state government as an enterprise.
60.18 		Subd. 3.Duties. The office must:
60.19 	(1) coordinate and guide the efficient and effective use of available federal, 
60.20 	state, local, and public-private resources to develop statewide geospatial information 
60.21 	technology, data, and services;
60.22 	(2) provide leadership and outreach, and ensure cooperation and coordination for all 
60.23 	Geospatial Information Systems (GIS) functions in state and local government, including 
60.24 	coordination between state agencies, intergovernment coordination between state and local 
60.25 	units of government, and extragovernment coordination, which includes coordination with 
60.26 	academic and other private and nonprofit sector GIS stakeholders;
60.27 	(3) review state agency and intergovernment geospatial technology, data, and 
60.28 	services development efforts involving state or intergovernment funding, including federal 
60.29 	funding;
60.30 	(4) provide information to the legislature regarding projects reviewed, and 
60.31 	recommend projects for inclusion in the governor's budget under section 16A.11;
60.32 	(5) coordinate management of geospatial technology, data, and services between 
60.33 	state and local governments;
61.1 	(6) provide coordination, leadership, and consultation to integrate government 
61.2 	technology services with GIS infrastructure and GIS programs;
61.3 	(7) work to avoid or eliminate unnecessary duplication of existing GIS technology 
61.4 	services and systems, including services provided by other public and private organizations 
61.5 	while building on existing governmental infrastructures;
61.6 	(8) promote and coordinate consolidated geospatial technology, data, and services 
61.7 	and shared geospatial Web services for state and local governments; and
61.8 	(9) promote and coordinate geospatial technology training, technical guidance, and 
61.9 	project support for state and local governments.
61.10 		Subd. 4.Duties of chief geospatial information officer. (a) In consultation with the 
61.11 	state geospatial advisory council, the commissioner of administration, the commissioner 
61.12 	of management and budget, and the Minnesota chief geospatial information officer, the 
61.13 	chief geospatial information officer must identify when it is cost-effective for agencies to 
61.14 	develop and use shared information and geospatial technology systems, data, and services. 
61.15 	The chief geospatial information officer may require agencies to use shared information 
61.16 	and geospatial technology systems, data, and services.
61.17 	(b) The chief geospatial information officer, in consultation with the state 
61.18 	geospatial advisory council, must establish reimbursement rates in cooperation with the 
61.19 	commissioner of management and budget to bill agencies and other governmental entities 
61.20 	sufficient to cover the actual development, operation, maintenance, and administrative 
61.21 	costs of the shared systems. The methodology for billing may include the use of 
61.22 	interagency agreements, or other means as allowed by law.
61.23 		Subd. 5.Fees. (a) The chief geospatial information officer must set fees under 
61.24 	section 16A.1285 that reflect the actual cost of providing information products and 
61.25 	services to clients. Fees collected must be deposited in the state treasury and credited to 
61.26 	the Minnesota Geospatial Information Office revolving account. Money in the account 
61.27 	is appropriated to the chief geospatial information officer for providing Geospatial 
61.28 	Information Systems (GIS) consulting services, software, data, Web services, and map 
61.29 	products on a cost-recovery basis, including the cost of services, supplies, material, labor, 
61.30 	and equipment as well as the portion of the general support costs and statewide indirect 
61.31 	costs of the office that is attributable to the delivery of these products and services. Money 
61.32 	in the account must not be used for the general operation of the Minnesota Geospatial 
61.33 	Information Office.
61.34 	(b) The chief geospatial information officer may require a state agency to make an 
61.35 	advance payment to the revolving account sufficient to cover the agency's estimated 
61.36 	obligation for a period of 60 days or more. If the revolving account is abolished or 
62.1 	liquidated, the total net profit from the operation of the account must be distributed to the 
62.2 	various funds from which purchases were made. For a given period of time, the amount of 
62.3 	total net profit to be distributed to each fund must reflect the same ratio of total purchases 
62.4 	attributable to each fund divided by the total purchases from all funds.
62.5 		Subd. 6.Accountability. The chief geospatial information officer is appointed by 
62.6 	the commissioner of administration and must work closely with the Minnesota chief 
62.7 	information officer who shall advise on technology projects, standards, and services.
62.8 		Subd. 7.Discretionary powers. The office may:
62.9 	(1) enter into contracts for goods or services with public or private organizations 
62.10 	and charge fees for services it provides;
62.11 	(2) apply for, receive, and expend money from public agencies;
62.12 	(3) apply for, accept, and disburse grants and other aids from the federal government 
62.13 	and other public or private sources;
62.14 	(4) enter into contracts with agencies of the federal government, local government 
62.15 	units, the University of Minnesota and other educational institutions, and private persons 
62.16 	and other nongovernment organizations as necessary to perform its statutory duties;
62.17 	(5) appoint committees and task forces to assist the office in carrying out its duties;
62.18 	(6) sponsor and conduct conferences and studies, collect and disseminate 
62.19 	information, and issue reports relating to geospatial information and technology issues;
62.20 	(7) participate in the activities and conferences related to geospatial information 
62.21 	and communications technology issues;
62.22 	(8) review the Geospatial Information Systems (GIS) technology infrastructure 
62.23 	of regions of the state and cooperate with and make recommendations to the governor, 
62.24 	legislature, state agencies, local governments, local technology development agencies, 
62.25 	the federal government, private businesses, and individuals for the realization of GIS 
62.26 	information and technology infrastructure development potential;
62.27 	(9) sponsor, support, and facilitate innovative and collaborative geospatial systems 
62.28 	technology, data, and services projects; and
62.29 	(10) review and recommend alternative sourcing strategies for state geospatial 
62.30 	information systems technology, data, and services.
62.31 		Subd. 8.Geospatial advisory councils created. The chief geospatial information 
62.32 	officer must establish a governance structure that includes advisory councils to provide 
62.33 	recommendations for improving the operations and management of geospatial technology 
62.34 	within state government and also on issues of importance to users of geospatial technology 
62.35 	throughout the state.
63.1 	(a) A statewide geospatial advisory council must advise the Minnesota Geospatial 
63.2 	Information Office regarding the improvement of services statewide through the 
63.3 	coordinated, affordable, reliable, and effective use of geospatial technology. The 
63.4 	commissioner of administration chief information officer must appoint the members of the 
63.5 	council. The members must represent a cross-section of organizations including counties, 
63.6 	cities, universities, business, nonprofit organizations, federal agencies, and state agencies. 
63.7 	No more than 20 percent of the members may be employees of a state agency. In addition, 
63.8 	the chief geospatial information officer must be a nonvoting member.
63.9 	(b) A state government geospatial advisory council must advise the Minnesota 
63.10 	Geospatial Information Office on issues concerning improving state government services 
63.11 	through the coordinated, affordable, reliable, and effective use of geospatial technology. 
63.12 	The commissioner of administration chief information officer must appoint the members 
63.13 	of the council. The members must represent up to 15 state government agencies and 
63.14 	constitutional offices, including the Office of Enterprise Technology and the Minnesota 
63.15 	Geospatial Information Office. The council must be chaired by the chief geographic 
63.16 	information officer. A representative of the statewide geospatial advisory council must 
63.17 	serve as a nonvoting member.
63.18 	(c) Members of both the statewide geospatial advisory council and the state 
63.19 	government advisory council must be recommended by a process that ensures that each 
63.20 	member is designated to represent a clearly identified agency or interested party category 
63.21 	and that complies with the state's open appointment process. Members shall serve a 
63.22 	term of two years.
63.23 	(d) The Minnesota Geospatial Information Office must provide administrative 
63.24 	support for both geospatial advisory councils.
63.25 	(e) This subdivision expires June 30, 2011.
63.26 		Subd. 9.Report to legislature. By January 15, 2010, the chief geospatial 
63.27 	information officer must provide a report to the chairs and ranking minority members of 
63.28 	the legislative committees with jurisdiction over the policy and budget for the office. The 
63.29 	report must address all statutes that refer to the Minnesota Geospatial Information Office 
63.30 	or land management information system and provide any necessary draft legislation to 
63.31 	implement any recommendations.

63.32 	Sec. 2. [16E.0151] RESPONSIBILITY FOR INFORMATION TECHNOLOGY 
63.33 	SERVICES AND EQUIPMENT.
64.1 	(a) The chief information officer is responsible for providing or entering into 
64.2 	managed services contracts for the provision of the following information technology 
64.3 	systems and services to state agencies:
64.4 	(1) state data centers;
64.5 	(2) mainframes including system software;
64.6 	(3) servers including system software;
64.7 	(4) desktops including system software;
64.8 	(5) laptop computers including system software;
64.9 	(6) a data network including system software;
64.10 	(7) database, electronic mail, office systems, reporting, and other standard software 
64.11 	tools;
64.12 	(8) business application software and related technical support services;
64.13 	(9) help desk for the components listed in clauses (1) to (8);
64.14 	(10) maintenance, problem resolution, and break-fix for the components listed in 
64.15 	clauses (1) to (8);
64.16 	(11) regular upgrades and replacement for the components listed in clauses (1) 
64.17 	to (8); and
64.18 	(12) network-connected output devices.
64.19 	(b) All state agency employees whose work primarily involves functions specified 
64.20 	in paragraph (a) are employees of the Office of Enterprise Technology. This includes 
64.21 	employees who directly perform the functions in paragraph (a), as well as employees 
64.22 	whose work primarily involves managing, supervising, or providing administrative 
64.23 	services or support services to employees who directly perform these functions. The 
64.24 	chief information officer may assign employees of the office to perform work exclusively 
64.25 	for another state agency.
64.26 	(c) The chief information officer may allow a state agency to obtain services 
64.27 	specified in paragraph (a) through a contract with an outside vendor when the chief 
64.28 	information officer and the agency head agree that a contract would provide best value, 
64.29 	as defined in section 16C.02, under the service-level agreement. The chief information 
64.30 	officer must require that agency contracts with outside vendors ensure that systems and 
64.31 	services are compatible with standards established by the Office of Enterprise Technology.
64.32 	(d) In exercising authority under this section, the chief information officer 
64.33 	must cooperate with the commissioner of administration on contracts for acquisition 
64.34 	of information technology systems and services. The authority granted to the chief 
64.35 	information officer does not limit the procurement, contract management, and contract 
64.36 	review authority of the commissioner of administration under chapter 16C, including 
65.1 	authority of the commissioner to enter into and manage cooperative purchasing 
65.2 	agreements with other states.
65.3 	(e) The Minnesota State Retirement System, the Public Employees Retirement 
65.4 	Association, the Teachers Retirement Association, the State Board of Investment, the 
65.5 	Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide 
65.6 	Radio Board are not state agencies for purposes of this section.

65.7 	Sec. 3. [16E.036] ADVISORY COMMITTEE.
65.8 	(a) The Technology Advisory Committee is created to advise the chief information 
65.9 	officer. The committee consists of six members appointed by the governor who are 
65.10 	individuals actively involved in business planning for state executive branch agencies, 
65.11 	one county member designated by the Association of Minnesota Counties, one member 
65.12 	appointed by the governor as a representative of a union that represents state information 
65.13 	technology employees, and one member appointed by the governor to represent private 
65.14 	businesses.
65.15 	(b) Membership terms, removal of members, and filling of vacancies are as provided 
65.16 	in section 15.059. Members do not receive compensation or reimbursement for expenses. 
65.17 	(c) The committee shall select a chair from its members. The chief information 
65.18 	officer shall provide administrative support to the committee.
65.19 	(d) The committee shall advise the chief information officer on:
65.20 	(1) development and implementation of the state information technology strategic 
65.21 	plan;
65.22 	(2) critical information technology initiatives for the state;
65.23 	(3) standards for state information architecture;
65.24 	(4) identification of business and technical needs of state agencies;
65.25 	(5) strategic information technology portfolio management, project prioritization, 
65.26 	and investment decisions;
65.27 	(6) the office's performance measures and fees for service agreements with executive 
65.28 	branch agencies; 
65.29 	(7) management of the state enterprise technology revolving fund; and
65.30 	(8) the efficient and effective operation of the office.

65.31 	Sec. 4. Minnesota Statutes 2010, section 16E.14, is amended by adding a subdivision 
65.32 	to read:
65.33 		Subd. 6.Technology improvement account. The technology improvement account 
65.34 	is established as an account in the enterprise technology fund. Money in the account is 
66.1 	appropriated to the chief information officer for the purpose of funding a project that will 
66.2 	result in improvements in state information and telecommunications technology. The 
66.3 	chief information officer may spend money from the account on behalf of a state agency 
66.4 	or group of agencies or may transfer money in the account to a state agency or group of 
66.5 	agencies only according to an agreement under which: (1) the chief information officer 
66.6 	has determined that savings generated by the project to be funded from the account will 
66.7 	exceed the cost of the project; and (2) the agency or agencies sponsoring the project have 
66.8 	developed a plan for recouping the project costs to the fund.

66.9 	Sec. 5. [16E.145] INFORMATION TECHNOLOGY APPROPRIATION.
66.10 	An appropriation for a state agency information and telecommunications technology 
66.11 	project must be made to the chief information officer. The chief information officer must 
66.12 	manage and disburse the appropriation on behalf of the sponsoring state agency. Any 
66.13 	appropriation for an information and telecommunications technology project made to a 
66.14 	state agency other than the Office of Enterprise Technology is transferred to the chief 
66.15 	information officer.

66.16 	EFFECTIVE DATE. This section is effective July 1, 2011, and applies to 
66.17 	appropriations made before or after that date. The remainder of any appropriation subject 
66.18 	to this section made before July 1, 2011, is transferred to the chief information officer on 
66.19 	July 1, 2011. Ten percent of the unspent and unencumbered appropriations made before 
66.20 	June 30, 2011, that would not otherwise cancel on June 30, 2011, that are transferred to 
66.21 	the chief information officer, may be used for expenses relating to the transfer of functions 
66.22 	under sections 1 to 8.

66.23 	Sec. 6. TRANSFERS; TRANSITION.
 66.24 	(a) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations 
66.25 	relating to functions assigned to the chief information officer in Minnesota Statutes, 
66.26 	section 16E.0151, are transferred to the Office of Enterprise Technology from all other 
66.27 	state agencies, as defined in Minnesota Statutes, section 16E.03, subdivision 1, paragraph 
66.28 	(e), effective July 1, 2011. All reporting relationships associated with the transferred 
66.29 	powers, duties, responsibilities, assets, personnel, and unexpended appropriations are also 
66.30 	transferred to the Office of Enterprise Technology on July 1, 2011. By January 15, 2012, 
66.31 	the chief information officer shall submit to the legislature any statutory changes needed 
66.32 	to complete implementation of the transfer in this section.
66.33 	(b) Prior to the transfer mandated by paragraph (a), the chief information officer 
66.34 	must enter into a service-level agreement with each state agency governing the provision 
67.1 	of information technology systems and services in Minnesota Statutes, section 16E.0151. 
67.2 	The agreements must specify the services to be provided and the charges for these 
67.3 	services. As specified in Minnesota Statutes, section 16E.0151, an agency may choose to 
67.4 	obtain these services from an outside vendor, rather than from the Office of Enterprise 
67.5 	Technology. Authority to enter into agreements under this paragraph is effective the day 
67.6 	following final enactment, with the resulting agreements effective July 1, 2011.
67.7 	(c) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations 
67.8 	relating to geospatial information systems are transferred from the commissioner of 
67.9 	administration to the Office of Enterprise Technology.
67.10 	(d) Minnesota Statutes, section 15.039, applies to transfers in this section. Executive 
67.11 	branch officials may use authority under Minnesota Statutes, section 16B.37, as necessary 
67.12 	to implement this section. 
67.13 	(e) The transfer of authority to the Office of Enterprise Technology in this article 
67.14 	does not require expansion or consolidation of office space, data centers, help desks, 
67.15 	or other systems. The chief information officer may implement expansion, relocation, 
67.16 	or consolidation to the extent feasible and desirable with existing resources, or to the 
67.17 	extent that savings resulting from the expansions or consolidations will pay for the costs 
67.18 	associated with these activities during the biennium ending June 30, 2013.
67.19 	(f) Expenses relating to transfer of functions and other implementation of sections 1 
67.20 	to 8 must be paid from the enterprise technology revolving fund.
67.21 	(g) The chief information officer must reduce the number of agency chief 
67.22 	information officer positions to 15 by December 31, 2011. The chief information officer, 
67.23 	in consultation with the commissioner of management and budget, must determine the 
67.24 	general fund savings resulting from elimination of each chief information officer position, 
67.25 	and the amount determined is transferred from the general fund appropriation to the 
67.26 	agency to the enterprise technology revolving fund.

67.27 	Sec. 7. STUDY.
 67.28 	The chief information officer in the Office of Enterprise Technology shall report 
67.29 	to the chairs and ranking minority members of the house of representatives and senate 
67.30 	committees with jurisdiction over state government finance by January 15, 2012, on 
67.31 	the feasibility and desirability of the office entering into service-level agreements with 
67.32 	the State Lottery and the Statewide Radio Board regarding provision of information 
67.33 	technology systems and services to those entities.

67.34 	Sec. 8. REVISOR'S INSTRUCTION.
 68.1 	The revisor of statutes shall recodify Minnesota Statutes, section 16B.99, into 
68.2 	Minnesota Statutes, chapter 16E.

68.3 	Sec. 9. EFFECTIVE DATE.
 68.4 	Sections 1 to 8 are effective July 1, 2011. However, the chief information officer 
68.5 	may phase in the transfer of functions required by sections 1 to 8 between July 1, 2011, 
68.6 	and July 1, 2012.