HF 2227

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:00am

A bill for an act
relating to local government; reestablishing the Board of Innovation; imposing
powers and duties on the board; appropriating money; amending Minnesota
Statutes 2008, section 3.971, by adding a subdivision; proposing coding for new
law in Minnesota Statutes, chapter 465.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Recommendations to the Board of Innovation. new text end

new text begin The legislative auditor
may make recommendations to the Board of Innovation established under section
465.7902 that will assist the board in accomplishing its duties.
new text end

Sec. 2.

new text begin [465.7901] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Agency. new text end

new text begin "Agency" means a department, agency, board, or other
instrumentality of state government that has jurisdiction over an administrative rule or
law from which a waiver is sought under section 465.7903. If no specific agency has
jurisdiction over such a law, "agency" refers to the attorney general.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Innovation established by section
465.7902.
new text end

new text begin Subd. 3. new text end

new text begin Council or Metropolitan Council. new text end

new text begin "Council" or "Metropolitan Council"
means the Metropolitan Council established by section 473.123.
new text end

new text begin Subd. 4. new text end

new text begin Local government unit. new text end

new text begin "Local government unit" means a county, home
rule charter or statutory city, school district, town, or special taxing district, except for
purposes of sections 465.81 to 465.86.
new text end

new text begin Subd. 5. new text end

new text begin Metropolitan agency. new text end

new text begin "Metropolitan agency" has the meaning given in
section 473.121, subdivision 5a.
new text end

new text begin Subd. 6. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" has the meaning given in section
473.121, subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Scope. new text end

new text begin As used in sections 465.7901 to 465.7906 and 465.805 to 465.86,
the terms defined in this section have the meanings given them.
new text end

Sec. 3.

new text begin [465.7902] BOARD OF INNOVATION.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Board of Innovation consists of 16 members,
appointed as follows:
new text end

new text begin (1) three members of the senate, appointed by the Subcommittee on Committees of
the Senate Committee on Rules and Administration;
new text end

new text begin (2) three members of the house of representatives, appointed by the speaker of
the house;
new text end

new text begin (3) the commissioner of finance;
new text end

new text begin (4) the commissioner of administration;
new text end

new text begin (5) the commissioner of employment and economic development;
new text end

new text begin (6) two members with a background in academic research concerning system
redesign and delivery, appointed by ...................;
new text end

new text begin (7) two members with experience in the leadership of nonprofit organizations,
appointed by ...................;
new text end

new text begin (8) two members with experience in foundation leadership, appointed by
...................; and
new text end

new text begin (9) one member with experience as a leader of a for-profit corporation.
new text end

new text begin The legislative members serve as nonvoting members. A commissioner serving on
the board may designate an employee from the commissioner's agency to serve as the
commissioner's designee.
new text end

new text begin Subd. 2. new text end

new text begin Duties of board. new text end

new text begin The board shall:
new text end

new text begin (1) accept applications from local government units and nonprofit organizations for
waivers of administrative rules and temporary, limited exemptions from enforcement of
procedural requirements in state law as provided in section 465.7903, and determine
whether to approve, modify, or reject the application;
new text end

new text begin (2) accept applications for grants to local government units and related organizations
proposing to design models or plans for innovative service delivery and management
as provided in section 465.7905 and determine whether to approve, modify, or reject
the application;
new text end

new text begin (3) accept applications from local government units for financial assistance to enable
them to plan for cooperative efforts as provided in section 465.7906, and determine
whether to approve, modify, or reject the application;
new text end

new text begin (4) accept applications from eligible local government units for service-sharing
grants as provided in section 465.805, and determine whether to approve, modify, or
reject the application;
new text end

new text begin (5) accept applications from counties, cities, and towns proposing to combine under
sections 465.81 to 465.86, and determine whether to approve or disapprove the application;
new text end

new text begin (6) make recommendations to the legislature for the authorization of pilot projects
for the implementation of innovative service delivery activities that require statutory
authorization;
new text end

new text begin (7) make recommendations to the legislature regarding the elimination of state
mandates that inhibit local government efficiency, innovation, and cooperation by
prescribing specific processes for achieving a desired outcome;
new text end

new text begin (8) investigate and review the role of unfunded state mandates in intergovernmental
relations and assess their impact on state and local government objectives and
responsibilities;
new text end

new text begin (9) make recommendations to the governor and the legislature regarding:
new text end

new text begin (i) allowing flexibility for local units of government in complying with specific
unfunded state mandates for which terms of compliance are unnecessarily rigid or
complex;
new text end

new text begin (ii) reconciling any two or more unfunded state mandates that impose contradictory
or inconsistent requirements;
new text end

new text begin (iii) terminating unfunded state mandates that are duplicative, obsolete, or lacking
in practical utility;
new text end

new text begin (iv) suspending, on a temporary basis, unfunded state mandates that are not vital
to public health and safety and that compound the fiscal difficulties of local units of
government, including recommendations for initiating the suspensions;
new text end

new text begin (v) consolidating or simplifying unfunded state mandates or the planning or
reporting requirements of the mandates, in order to reduce duplication and facilitate
compliance by local units of government with those mandates; and
new text end

new text begin (vi) establishing common state definitions or standards to be used by local units of
government in complying with unfunded state mandates that use different definitions or
standards for the same terms or principles;
new text end

new text begin (10) identify relevant unfunded state mandates;
new text end

new text begin (11) facilitate proposals for grants made by eligible applicants; and
new text end

new text begin (12) make recommendations on topics to the Legislative Audit Commission for
program evaluations that are likely to result in recommendations that will improve the
cost-effective delivery of government services.
new text end

new text begin The duties imposed under clauses (8) to (12) must be performed to the extent possible
given existing resources. Each recommendation under clause (9) must, to the extent
practicable, identify the specific unfunded state mandates to which the recommendation
applies. The commissioners or directors of state agencies responsible for the promulgation
or enforcement of the unfunded mandates addressed in clauses (7) to (12) shall assign staff
to assist the board in carrying out the board's duties under this section.
new text end

new text begin Subd. 3. new text end

new text begin Additional coordinating functions. new text end

new text begin The board may also:
new text end

new text begin (1) serve as a clearinghouse for existing ideas and information from community
leaders;
new text end

new text begin (2) provide a Web site where interested parties may share information and practices;
new text end

new text begin (3) receive recommendations from the legislative auditor concerning waivers and
other initiatives within the board's jurisdiction;
new text end

new text begin (4) conduct research concerning innovation in service delivery and local government
efficiency, innovation, and cooperation; and
new text end

new text begin (5) facilitate regional dialogue concerning successful innovation and collaboration.
new text end

new text begin Subd. 4. new text end

new text begin Staff. new text end

new text begin The board may hire staff or consultants as necessary to perform
its duties.
new text end

new text begin Subd. 5. new text end

new text begin Terms, compensation, and removal. new text end

new text begin The terms, compensation, and
removal of members is governed by section 15.0575, unless otherwise provided. The
terms of legislative members of the board correspond with the term of the office held by
the member at the time of appointment.
new text end

Sec. 4.

new text begin [465.7903] RULE AND LAW WAIVER REQUESTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin (a) Except as provided in paragraph (b), a local
government unit or a nonprofit organization may request the Board of Innovation to
grant a waiver from one or more administrative rules or a temporary, limited exemption
from enforcement of state procedural laws governing delivery of services by the local
government unit or nonprofit organization. Two or more local government units may
submit a joint application for a waiver or exemption under this section if they propose to
cooperate in providing a service or program that is subject to the rule or law. Before a
local unit of government may submit an application to the board, the governing body of
the local government unit must approve, in concept, the proposed waiver or exemption
at a meeting required to be public under chapter 13D. A waiver or exemption granted
to a nonprofit organization under this section applies to services provided to all of the
organization's clients.
new text end

new text begin (b) A school district that is granted a variance from rules of the commissioner of
education under section 122A.163 need not apply to the board for a waiver of those rules
under this section. A school district may not seek a waiver of rules under this section if
the commissioner of education has authority to grant a variance to the rules under section
122A.163. This paragraph does not preclude a school district from being included in a
cooperative effort with another local government unit under this section.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) A local government unit or nonprofit organization
requesting a waiver of a rule or exemption from enforcement of a law under this section
shall present a written application to the board. The application must include:
new text end

new text begin (1) identification of the service or program at issue;
new text end

new text begin (2) identification of the administrative rule or the law imposing a procedural
requirement with respect to which the waiver or exemption is sought; and
new text end

new text begin (3) a description of the improved service outcome sought, including an explanation
of the effect of the waiver or exemption in accomplishing that outcome.
new text end

new text begin (b) A local government unit submitting an application must provide a copy to the
exclusive representative certified under section 179A.12 to represent employees who
provide the service or program affected by the requested waiver or exemption.
new text end

new text begin Subd. 3. new text end

new text begin Review process. new text end

new text begin (a) Upon receipt of an application, the board shall
commence review of the application, as provided in this subdivision. The board shall
dismiss an application if it finds that the application proposes a waiver of rules or
exemption from enforcement of laws that would result in due process violations, violations
of federal law or the state or federal constitution, or the loss of services to people who
are entitled to them.
new text end

new text begin (b) The board shall determine whether a law from which an exemption for
enforcement is sought is a procedural law, specifying how a local government unit or
nonprofit organization is to achieve an outcome, rather than a substantive law prescribing
the outcome or otherwise establishing policy. In making its determination, the board shall
consider whether the law specifies such requirements as:
new text end

new text begin (1) who must deliver a service;
new text end

new text begin (2) where the service must be delivered;
new text end

new text begin (3) to whom and in what form reports regarding the service must be made; and
new text end

new text begin (4) how long or how often the service must be made available to a given recipient.
new text end

new text begin (c) If a member of the board also is a commissioner, a commissioner's designee, or
the state auditor, or is employed by an agency with jurisdiction over a rule or law affected
by an application, the member must not participate in the decision on the particular waiver
or exemption.
new text end

new text begin (d) If the application is submitted by a local government unit or a nonprofit
organization in the metropolitan area or the unit or nonprofit organization requests a
waiver of a rule or temporary, limited exemptions from enforcement of a procedural law
over which the Metropolitan Council or a metropolitan agency has jurisdiction, the board
shall also transmit a copy of the application to the council for review and comment. The
council shall report its comments to the board within 60 days of the date the application
was transmitted to the council. The council may point out any resources or technical
assistance it may be able to provide a local government unit or nonprofit organization
submitting a request under this section.
new text end

new text begin (e) Within 15 days after receipt of the application, the board shall transmit a copy of
it to the commissioner of each agency having jurisdiction over a rule or law from which
a waiver or exemption is sought. The agency may mail a notice that it has received an
application for a waiver or exemption to all persons who have registered with the agency
under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or
exemption is requested. If no agency has jurisdiction over the rule or law, the board
shall transmit a copy of the application to the attorney general. The agency shall inform
the board of its agreement with or objection to and grounds for objection to the waiver
or exemption request within 60 days of the date when the application was transmitted to
it. An agency's failure to respond under this paragraph is considered agreement to the
waiver or exemption. The board shall decide whether to grant a waiver or exemption at
its next regularly scheduled meeting following its receipt of an agency's response or the
end of the 60-day response period. If consideration of an application is not concluded at
that meeting, the matter may be carried over to the next meeting of the board. Interested
persons may submit written comments to the board on the waiver or exemption request up
to the time of its vote on the application.
new text end

new text begin (f) If the exclusive representative of the affected employees of the requesting local
government unit objects to the waiver or exemption request, it may inform the board of the
objection to and the grounds for the objection to the waiver or exemption request within
60 days of the receipt of the application.
new text end

new text begin Subd. 4. new text end

new text begin Hearing. new text end

new text begin If the agency or the exclusive representative does not agree with
the waiver or exemption request, the board shall set a date for a hearing on the application.
The hearing must be conducted informally at a meeting of the board. Persons representing
the local government unit shall present their request for the waiver or exemption, and
a representative from the agency shall explain the agency's objection to the waiver or
exemption. Members of the board may request additional information from either party.
The board may also request, either before or at the hearing, information or comments
from representatives of business, labor, local governments, state agencies, consultants,
and members of the public. If necessary, the hearing may be continued at a subsequent
board meeting. A waiver or exemption requires a majority vote of the board members.
The board may modify the terms of the waiver or exemption request in arriving at the
agreement required under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Conditions of agreements. new text end

new text begin (a) If the board grants a request for a waiver
or exemption, the board and the entity making the request shall enter into an agreement
providing for the delivery of the service or program that is the subject of the application.
The agreement must specify desired outcomes and the means of measurement by which
the board will determine whether the outcomes specified in the agreement have been met.
The agreement must specify the duration of the waiver or exemption. The duration of a
waiver from an administrative rule may be for no less than two years and no more than
four years, subject to renewal if both parties agree. An exemption from enforcement of a
law terminates ten days after adjournment of the regular legislative session held during the
calendar year following the year when the exemption is granted, unless the legislature has
acted to extend or make permanent the exemption.
new text end

new text begin (b) If the board grants a waiver or exemption, it must report the waiver or exemption
to the legislature, including the chairs of the governmental operations and appropriate
policy committees in the house of representatives and senate, and the governor within
30 days.
new text end

new text begin (c) The board may reconsider or renegotiate the agreement if the rule or law affected
by the waiver or exemption is amended or repealed during the term of the original
agreement. A waiver of a rule under this section has the effect of a variance granted
by an agency under section 14.05, subdivision 4. The recipient of an exemption from
enforcement of a procedural requirement in state law under this section is exempt from
that law for the duration of the exemption. The board may require periodic reports from
the recipient, or conduct investigations of the service or program.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement. new text end

new text begin If the board finds that the recipient of a waiver or an
exemption has failed to comply with the terms of the agreement under subdivision 5, it
may rescind the agreement. After an agreement is rescinded, the recipient is subject to the
rules and laws covered by the agreement.
new text end

new text begin Subd. 7. new text end

new text begin Access to data. new text end

new text begin If the recipient of a waiver or an exemption through a
cooperative program under this section gains access to data that is classified as not public,
the access to and use of the data for the recipient is governed by the same restrictions on
access to and use of the data that apply to the unit that collected, created, received, or
maintained the data.
new text end

Sec. 5.

new text begin [465.7904] WAIVERS OF STATE RULES; POLICIES.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin A state agency may apply to the board for a waiver
from: (1) an administrative rule or policy adopted by the commissioner of finance
that deals with the state personnel system; (2) an administrative rule or policy of the
commissioner of administration that deals with the state procurement system; or (3) a
policy of the commissioner of finance that deals with the state accounting system. Two or
more state agencies may submit a joint application. A waiver application must identify the
rule or policy at issue, and must describe the improved outcome sought through the waiver.
new text end

new text begin Subd. 2. new text end

new text begin Review process. new text end

new text begin (a) The board shall review all applications submitted
under this section. The board shall dismiss an application if it finds that the application
proposes a waiver that would result in due process violations, violations of federal law
or the state or federal constitution, or the loss of services to people who are entitled to
them. If a proposed waiver would violate the terms of a collective bargaining agreement
effective under chapter 179A, the waiver is not effective without the consent of the
exclusive representative that is a party to the agreement. The board may approve a waiver
only if the board determines that if the waiver is granted: (1) services can be provided in
a more efficient or effective manner; and (2) services related to human resources must
be provided in a manner consistent with section 43A.01. In the case of a waiver from
a policy of the commissioner of finance, the board may approve the waiver only if it
determines that services will be provided in a more efficient or effective manner and that
state funds will be adequately accounted for and safeguarded in a manner that complies
with generally accepted government accounting principles.
new text end

new text begin (b) Within 15 days of receipt of the application, the board shall send a copy of the
application to: (1) the agency whose rule or policy is involved; and (2) all exclusive
representatives who represent employees of the agency requesting the waiver. The agency
whose rule or policy is involved may mail a copy of the application to all persons who
have registered with the agency under section 14.14, subdivision 1a.
new text end

new text begin (c) The agency whose rule or policy is involved or an exclusive representative shall
notify the board of its agreement with or objection to and grounds for objection to the
waiver within 60 days of the date when the application was transmitted to the agency or
the exclusive representative. An agency's or exclusive representative's failure to respond
under this paragraph is considered agreement to the waiver.
new text end

new text begin (d) If the agency or the exclusive representative objects to the waiver, the board
shall schedule a meeting at which the agency requesting the waiver may present its case
for the waiver and the objecting party may respond. The board shall decide whether
to grant a waiver at its next regularly scheduled meeting following its receipt of an
agency's response, or the end of the 60-day response period, whichever occurs first. If
consideration of an application is not concluded at the meeting, the matter may be carried
over to the next meeting of the board. Interested persons may submit written comments to
the board on the waiver request.
new text end

new text begin (e) If the board grants a request for a waiver, the board and the agency requesting the
waiver shall enter into an agreement relating to the outcomes desired as a result of the
waiver and the means of measurement to determine whether those outcomes have been
achieved with the waiver. The agreement must specify the duration of the waiver, which
must be for at least two years and not more than four years. If the board determines that an
agency that has received a waiver is failing to comply with the terms of the agreement, the
board may rescind the agreement.
new text end

new text begin Subd. 3. new text end

new text begin Board. new text end

new text begin For purposes of evaluating waiver requests involving rules or
policies of the commissioner of administration, the commissioner of administration may
not participate in the evaluation.
new text end

Sec. 6.

new text begin [465.7905] SERVICE BUDGET MANAGEMENT MODEL GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin One or more local units of government, an association
of local governments, the Metropolitan Council, a local unit of government acting in
conjunction with an organization or a state agency, or an organization established by two
or more local units of government under a joint powers agreement may apply to the Board
of Innovation for a grant to be used to develop models for innovative service budget
management. The application must specify a nonstate funding source for 25 percent of the
total cost of the proposal. The application to the board must state what other sources of
funding have been considered by the local units of government to implement the project
and explain why it is not possible to complete the project without assistance from the
board. The board may not award a grant if it determines that the local units of government
could complete the project without board assistance or if it determines the applicant has
not specified a nonstate funding source for 25 percent of the total cost. A copy of the
application must be provided by the units to the exclusive representatives certified under
section 179A.12 to represent employees who provide the service or program affected
by the application.
new text end

new text begin Subd. 2. new text end

new text begin Proposals. new text end

new text begin Proposed models may provide options to local governments,
neighborhood or community organizations, or individuals to redesign and deliver services.
In awarding grants under this section, the board must consider whether the proposal:
new text end

new text begin (1) expands consumer choices and opportunities;
new text end

new text begin (2) shifts government toward an expanded role as a purchaser, rather than a provider,
of services;
new text end

new text begin (3) reduces administrative costs through statewide or regional contracting, or related
administrative efficiencies;
new text end

new text begin (4) reduces administrative costs through the accumulation of multiple related
services into a single contract with one provider, or related administrative efficiencies; and
new text end

new text begin (5) fosters entrepreneurial leadership in the public sector.
new text end

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin A copy of the work product for which the grant was
provided must be furnished to the board upon completion, and the board may disseminate
it to other local units of government or interested groups. If the board finds that the model
was not completed or implemented according to the terms of the grant agreement, it may
require the grantee to repay all or a portion of the grant. The board shall award grants on
the basis of each qualified applicant's score under the scoring system in section 465.806.
The amount of a grant under this section may not exceed $250,000.
new text end

Sec. 7.

new text begin [465.7906] COOPERATION PLANNING GRANTS.
new text end

new text begin Two or more local government units; an association of local governments; a local
unit of government acting in conjunction with the Metropolitan Council, an organization,
or a state agency; or an organization formed by two or more local units of government
under a joint powers agreement may apply to the Board of Innovation for a grant to be
used to develop a plan for intergovernmental cooperation in providing services. The
application to the board must state what other sources of funding have been considered by
the local units of government to implement the project and explain why it is not possible
to complete the project without assistance from the board. The board may not award a
grant if it determines that the local units of government could complete the project without
board assistance. A copy of the application must be submitted by the applicants to the
exclusive representatives certified under section 179A.12 to represent employees who
provide the service or program affected by the application.
new text end

new text begin The plan may include model contracts or agreements to be used to implement the
plan. A copy of the work product for which the grant was provided must be furnished
to the board upon completion, and the board may disseminate it to other local units
of government or interested groups. If the board finds that the grantee has failed to
implement the plan according to the terms of the agreement, it may require the grantee
to repay all or a portion of the grant. The board shall award grants on the basis of each
qualified applicant's score under the scoring system in section 465.806. The amount of a
grant under this section may not exceed $50,000.
new text end

Sec. 8.

new text begin [465.805] SERVICE SHARING GRANTS.
new text end

new text begin Two or more local units of government; an association of local governments; a local
unit of government acting in conjunction with the Metropolitan Council, an organization,
or a state agency; or an organization established by two or more local units of government
under a joint powers agreement may apply to the Board of Innovation for a grant to be
used to meet the start-up costs of providing shared services or functions. Agreements
solely to make joint purchases are not sufficient to qualify under this section. The
application to the board must state what other sources of funding have been considered by
the local units of government to implement the project and explain why it is not possible
to complete the project without assistance from the board. The board may not award a
grant if it determines that the local units of government could complete the project without
board assistance. A copy of the application must be provided by the applicants to the
exclusive representatives certified under section 179A.12 to represent employees who
provide the service or program affected by the application.
new text end

new text begin The proposal must include plans fully to integrate a service or function provided by
two or more local government units. A copy of the work product for which the grant was
provided must be furnished to the board upon completion, and the board may disseminate
it to other local units of government or interested groups. If the board finds that the grantee
has failed to implement the plan according to the terms of the agreement, it may require
the grantee to repay all or a portion of the grant. The board shall award grants on the basis
of each qualified applicant's score under the scoring system in section 465.806. The
amount of a grant under this section may not exceed $100,000.
new text end

Sec. 9.

new text begin [465.806] SCORING SYSTEM.
new text end

new text begin In deciding whether to award a grant under section 465.7905, 465.7906, or 465.805,
the board shall use the following scoring system:
new text end

new text begin (1) Up to 15 points must be awarded to reflect the extent to which the application
demonstrates creative thinking, careful planning, cooperation, involvement of the clients
of the affected service, and commitment to assume risk.
new text end

new text begin (2) Up to 20 points must be awarded to reflect the extent to which the proposed
project is likely to improve the quality of the service and to have benefits for other local
governments.
new text end

new text begin (3) Up to 15 points must be awarded to reflect the extent to which the application's
budget provides sufficient detail, maximizes the use of state funds, documents the need
for financial assistance, commits to local financial support, and limits expenditures to
essential activities.
new text end

new text begin (4) Up to 20 points must be awarded to reflect the extent to which the application
reflects the statutory goal of the grant program.
new text end

new text begin (5) Up to 15 points must be awarded to reflect the merit of the proposed project and
the extent to which it warrants the state's financial participation.
new text end

new text begin (6) Up to five points must be awarded to reflect the cost to benefit ratio projected
for the proposed project.
new text end

new text begin (7) Up to five points must be awarded to reflect the number of government units
participating in the proposal.
new text end

new text begin (8) Up to five points must be awarded to reflect the minimum length of time the
application commits to implementation.
new text end

Sec. 10.

new text begin [465.807] REPAYMENT OF GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Repayment procedures. new text end

new text begin Without regard to whether a grant recipient
offered to repay the grant in its original application, as part of a grant awarded under
section 465.7905, 465.7906, or 465.805, the board may require the grant recipient to repay
all or part of the grant if the board determines the project funded by the grant resulted in
an actual savings for the participating local units of government. The grant agreement
must specify how the savings are to be determined and the period of time over which the
savings will be used to calculate a repayment requirement. The repayment of grant money
under this section must not exceed an amount equal to the total savings achieved through
the implementation of the project multiplied by the total amount of the grant divided by
the total budget for the project and may not exceed the total amount of the original grant.
new text end

new text begin Subd. 2. new text end

new text begin Bonus points. new text end

new text begin In addition to the points awarded to competitive grant
applications under section 465.806, the board shall award additional points to any
applicant that projects a potential cost savings through the implementation of its project
and offers to repay part or all of the grant under the formula in subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Use of repayment revenue. new text end

new text begin All grant money repaid to the board under this
section is appropriated to the board for additional grants authorized by sections 465.7905,
465.7906, and 465.805.
new text end

Sec. 11.

new text begin [465.808] RECEIPTS; APPROPRIATION.
new text end

new text begin (a) The board may charge a fee for the use of services provided by the board's
staff. The receipts from fees charged under this section are deposited in a special revenue
account and appropriated to the board for services provided under sections 465.7901 to
465.808.
new text end

new text begin (b) The board may accept gifts and grants. Money received under this paragraph is
deposited in a special revenue account and appropriated to the board for services provided
under sections 465.7901 to 465.808.
new text end

Sec. 12. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund in fiscal year 2010 to the Board of
Innovation for start-up costs. This is a onetime appropriation.
new text end