HF 2227

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 05/10/2010 09:58am

A bill for an act
relating to local government; establishing Minnesota Innovation and Research
Council; imposing powers and duties of council; appropriating money; amending
Minnesota Statutes 2008, section 3.971, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 465; repealing Minnesota
Statutes 2008, section 6.80.

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

ARTICLE 1

STRATEGIC PLAN

Section 1. new text begin STRATEGIC PLAN REPORT.
new text end

new text begin By January 15, 2011, the Minnesota Innovation and Research Council shall report to
the governor and the chairs and ranking minority members of the legislative committees
and divisions with jurisdiction over state government policy and finance with a strategic
plan containing findings and recommendations to improve state and local government
delivery of public services. The strategic plan must specify:
new text end

new text begin (1) how to enhance the public involvement and input as the public uses state and
local government services and public schools;
new text end

new text begin (2) how technology can be leveraged to reduce costs and enhance quality;
new text end

new text begin (3) how service innovation will increase value or results per dollar spent; and
new text end

new text begin (4) the design for a platform that will facilitate high-quality innovation and evaluate
state and local government structural redesign in the future.
new text end

new text begin The strategic plan shall also provide a process to review and modify
recommendations at regular intervals in the future based on specific results measured
at regular intervals.
new text end

new text begin The strategic plan shall also include any proposed legislation necessary to implement
the council's recommendations.
new text end

ARTICLE 2

MINNESOTA INNOVATION AND RESEARCH COUNCIL

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 Minnesota Innovation and Research Council.
new text end

new text begin The legislative auditor may make recommendations to the Minnesota Innovation and
Research Council established under section 465.7902 that will assist the council 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 Council. new text end

new text begin "Council" means the Minnesota Innovation and Research Council
established by section 465.7902.
new text end

new text begin Subd. 3. 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.
new text end

new text begin Subd. 4. 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. 5. 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. 6. new text end

new text begin Metropolitan Council. new text end

new text begin "Metropolitan Council" means the Metropolitan
Council established by section 473.123.
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 465.7907 and 465.805 to 465.808,
the terms defined in this section have the meanings given them.
new text end

Sec. 3.

new text begin [465.7902] MINNESOTA INNOVATION AND RESEARCH COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Minnesota Innovation and Research Council
consists of 15 members, appointed as follows:
new text end

new text begin (1) two members of the senate, appointed by the Subcommittee on Committees of
the Senate Committee on Rules and Administration, one member of the majority caucus
and one member of the largest minority caucus;
new text end

new text begin (2) two members of the house of representatives, appointed by the speaker of the
house, one member of the majority caucus and one member of the largest minority caucus;
new text end

new text begin (3) the commissioner of management and budget;
new text end

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

new text begin (5) the state chief information officer;
new text end

new text begin (6) an administrative law judge appointed by the chief administrative law judge;
new text end

new text begin (7) the state auditor;
new text end

new text begin (8) two members with a background in academic research concerning system
redesign and delivery, including one member appointed by the chancellor of the Minnesota
State Colleges and Universities and one member appointed by the president of the
University of Minnesota;
new text end

new text begin (9) one member with experience in the leadership of nonprofit organizations,
appointed by the Minnesota Council of Nonprofits;
new text end

new text begin (10) one member with experience in foundation leadership appointed by the
Minnesota Council on Foundations;
new text end

new text begin (11) one member with experience as a leader of a for-profit corporation, appointed
by the Minnesota Chamber of Commerce; and
new text end

new text begin (12) one member representing public employees appointed by the American
Federation of State, County and Municipal Employees.
new text end

new text begin All members must have experience or interest in the work of system redesign or public
sector innovation. The legislative members serve as nonvoting members. Only members
designated in clauses (3) to (7) may vote on proposed rule or law waivers under section
465.7903. A commissioner serving on the council may designate an employee from the
commissioner's agency to serve as the commissioner's designee. A person registered as a
lobbyist under chapter 10A may not be a member of the council.
new text end

new text begin Subd. 2. new text end

new text begin Duties of council. new text end

new text begin The council 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 eligible local government units for service-sharing
grants as provided in section 465.7905, and determine whether to approve, modify,
or reject the application;
new text end

new text begin (4) 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 (5) 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 (6) 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 (7) 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 (8) identify relevant unfunded state mandates;
new text end

new text begin (9) facilitate proposals for grants made by eligible applicants; and
new text end

new text begin (10) 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 (6) to (10) must be performed to the extent
possible given existing resources. Each recommendation under clause (7) 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 (5) to
(10) shall assist the council in carrying out the council'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 council 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 council's jurisdiction;
new text end

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

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

new text begin (6) use its best efforts to maximize public involvement in its work, including the use
of best practices in social media.
new text end

new text begin Subd. 4. new text end

new text begin Staff. new text end

new text begin The council shall hire an executive director who serves as the state's
chief innovation officer. The council may hire other staff or consultants as necessary to
perform its duties. The commissioner of administration must provide administrative
support services to the council.
new text end

new text begin Subd. 5. new text end

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

new text begin Members serve at the pleasure of
the appointing authority. Compensation of members is governed by section 15.0575,
unless otherwise provided.
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 Minnesota Innovation and
Research Council 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 council,
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 council 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 council. 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 council shall
commence review of the application, as provided in this subdivision. The council 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. If the council does not dismiss an application, the council must
publish notice in the State Register before it acts on the application. The notice must list
the name of the local government unit or nonprofit organization requesting the waiver or
exemption, the service or program at issue, and the rule or law with respect to which the
waiver of exemption is sought.
new text end

new text begin (b) The council 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. For the purposes of this section, "procedural
law" does not include a statutory notice requirement. In making its determination, the
council 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 council 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
council shall also transmit a copy of the application to the Metropolitan Council for
review and comment. The Metropolitan Council shall report its comments to the council
within 60 days of the date the application was transmitted to the Metropolitan Council.
The Metropolitan 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 council 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 council shall
transmit a copy of the application to the attorney general. The agency shall inform the
council 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 council 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 council. Interested
persons may submit written comments and requests to present oral comments to the
council 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 council
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 council shall set a date for a hearing on the
application. The hearing must be conducted informally at a meeting of the council.
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 council may request additional information from
either party. The council 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 a member of the public requests to present
comments or information at the hearing, the council must permit the member of the
public an opportunity to present the comments or information. If necessary, the hearing
may be continued at a subsequent council meeting. A waiver or exemption requires a
majority vote of the council members. The council 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 council grants a request for a waiver
or exemption, the council 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 council 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 council 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 council 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 14.055. 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 council 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 council 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 council for a waiver
from:
new text end

new text begin (1) an administrative rule or policy adopted by the commissioner of management
and budget that deals with the state personnel system;
new text end

new text begin (2) an administrative rule or policy of the commissioner of administration that
deals with the state procurement system; or
new text end

new text begin (3) a policy of the commissioner of management and budget that deals with the
state accounting system.
new text end

new text begin 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 council shall review all applications submitted
under this section. The council 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 council may approve a
waiver only if the council 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 management and budget, the council 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 council 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 council 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 council
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 council 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 council. Interested persons may submit written comments
to the council on the waiver request.
new text end

new text begin (e) If the council grants a request for a waiver, the council 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 council determines that
an agency that has received a waiver is failing to comply with the terms of the agreement,
the council may rescind the agreement.
new text end

new text begin Subd. 3. new text end

new text begin Participation. new text end

new text begin If a waiver request involves a rule or policy adopted by an
official specified in section 465.7902, subdivision 1, clauses (3) to (7), that official may
not participate in the evaluation of that waiver request.
new text end

Sec. 6.

new text begin [465.7905] INNOVATION AND REDESIGN 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, an organization established by two
or more local units of government under a joint powers agreement, or a not-for-profit
organization may apply to the Minnesota Innovation and Research Council for a grant
to be used to: (1) develop models for service redesign; or (2) meet the start-up costs
of providing shared services or functions. Agreements solely to make joint purchases
do not qualify for grants. The application must specify a nonstate funding source for
25 percent of the total cost of the proposal. The application to the council 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 council. The council may not award a grant if it determines that the
local units of government could complete the project without council 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 (a) Proposed models for service redesign may provide options
to local governments, neighborhood or community organizations, other not-for-profit
organizations, or individuals to redesign service delivery. In awarding grants under this
paragraph, the council 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;
new text end

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

new text begin (6) increases value to the taxpayer or results per dollar spent.
new text end

new text begin (b) A proposal for a grant for shared services or functions must include plans to
fully integrate a service or function provided by two or more local government units.
The proposal must include how value for the taxpayer or results per dollar spent will be
impacted.
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 council upon completion, and the council may
disseminate it to other local units of government or interested groups. If the council finds
that the work 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 council
shall award grants on the basis of each qualified applicant's score under the scoring
system in section 465.7906. The amount of a grant under subdivision 2, paragraph (a),
may not exceed $250,000. The amount of a grant under subdivision 2, paragraph (b),
may not exceed $100,000.
new text end

Sec. 7.

new text begin [465.7906] SCORING SYSTEM.
new text end

new text begin In deciding whether to award a grant under section 465.7905, the council 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 persist through challenges.
new text end

new text begin (2) Up to 25 points must be awarded to reflect the extent to which the proposed
project is likely to improve the quality of the service, increase value to the taxpayers or
results per dollar spent, 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 15 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. 8.

new text begin [465.7907] 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, the council may require the grant recipient to repay all or part of the
grant if the council 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.
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 465.7906, the council 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 council under
this section is appropriated to the council for additional grants authorized by section
465.7905.
new text end

Sec. 9.

new text begin [465.805] POLICY INNOVATION AND RESEARCH.
new text end

new text begin Subdivision 1. new text end

new text begin Research topics. new text end

new text begin The council shall periodically select policy
innovation topics suitable for review and analysis by a consortium of independent
organizations. Topics may include general or specific functions of state government. The
council shall give primary consideration to areas of concern where a comprehensive
review and analysis of available research is likely to yield recommendations for policy
changes that will provide significant efficiencies and improvements in the operation of
state government and an increase in value to the taxpayer. Legislators and legislative
committees may provide the council with recommendations for topics. The council shall
make the final determination regarding the selection of topics under this section.
new text end

new text begin Subd. 2. new text end

new text begin Request for proposal process. new text end

new text begin (a) After making the determination of a
research topic under subdivision 1, the council shall prepare a request for proposal relating
to the topic that specifies:
new text end

new text begin (1) the precise topic and scope of the research required for the report to the
commission;
new text end

new text begin (2) the deadlines for the response to the request for proposal and for the subsequent
report; and
new text end

new text begin (3) any other restrictions or guidelines required by the commission.
new text end

new text begin The council shall make the request for proposal publicly available and must
review responses from any interested party. A group of individuals or organizations
may submit a response. The council may encourage the development of a collaborative
design lab containing a cross-section of researchers and public sector designers from
various nonprofits, businesses, foundations, and education institutions to respond to the
request for proposal.
new text end

new text begin (b) After the deadline for submission of responses has expired, the council must hold
a hearing to consider all submissions. The council shall consider the following factors in
selecting a response to the request for proposal:
new text end

new text begin (1) the experience and training of individuals and organizations who will prepare the
report to the commission;
new text end

new text begin (2) the reliability and credibility of individuals and organizations who will prepare
the report;
new text end

new text begin (3) the proposed method of research; and
new text end

new text begin (4) the resources available for the preparation of the report.
new text end

new text begin (c) After consideration and hearing of the responses to the request for proposal, the
council may:
new text end

new text begin (1) select a submission;
new text end

new text begin (2) revise the original request for proposal and extend the deadline for responses; or
new text end

new text begin (3) terminate the request for proposal process for the selected topic.
new text end

new text begin The chief innovation officer shall periodically communicate with the researchers
to make sure they are focused on answering the questions outlined in the request for
proposals.
new text end

new text begin Subd. 3. new text end

new text begin Reports to council. new text end

new text begin The council shall hold a hearing to receive a report
prepared under this section and shall ensure that the governor and the relevant committees
in the legislature are provided with notice of the report and an opportunity to review the
report, including an opportunity for additional hearings.
new text end

Sec. 10.

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

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

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

Sec. 11.

new text begin [465.809] GUARANTEEING INCREASED VALUE TO THE
TAXPAYER.
new text end

new text begin Subdivision 1. new text end

new text begin Report. new text end

new text begin The council shall report by January 15 each year to the
governor and appropriate committees of the house of representatives and senate on its
activities. The report shall include the amount of the council's net spending, the amount of
savings and the increased outcomes to the taxpayer that was identified by the council, and
the actual documented savings to state and local governments. Entities receiving grants
or waivers from the council must document and verify savings to the taxpayer from the
previous year's budgets.
new text end

new text begin Subd. 2. new text end

new text begin Savings and increased value. new text end

new text begin The council must make every effort to
obtain $3 in savings and show increased value to the taxpayer for each net state dollar
spent by the council.
new text end

new text begin Subd. 3. new text end

new text begin Innovative practices. new text end

new text begin The council shall promote and drive innovative
practices and must make annual recommendations to the legislature. One or all of these
recommendations may be in partnership with an individual, foundations, nonprofits, or
businesses. The council may make endorsements of proposals of individuals, foundations,
nonprofits, or businesses when making recommendations. The council must make annual
recommendations to:
new text end

new text begin (1) recommend at least $20 in savings and show increased outcomes to the taxpayer
for each net state dollar spent by the council. These savings may be spread out over
various budget items;
new text end

new text begin (2) recommend policy changes that will quantifiably improve desired outcome
attainment to the taxpayer as compared to dollars spent. This shall not be limited to
efficiency but may also include developing new approaches to achieve desired outcomes;
new text end

new text begin (3) highlight existing innovative practices or partnerships in the state; and
new text end

new text begin (4) recommend innovative models, which may include state and local government
structural redesign, from across the country to the legislature; highlight innovative
practices from past or contemporary reports; recommend evidence-based service delivery
methods for this state; or recommend theory-based working models of approaches to
policy.
new text end

Sec. 12. new text begin APPROPRIATIONS.
new text end

new text begin $50,000 is appropriated from the general fund for the fiscal year ending June 30,
2011, to the Minnesota Innovation and Research Council for the following purposes:
new text end

new text begin (1) operation and administration of the council;
new text end

new text begin (2) grants for models for service redesign;
new text end

new text begin (3) grants for shared services and functions;
new text end

new text begin (4) policy innovation and research; and
new text end

new text begin (5) the strategic plan report under article 1, section 1.
new text end

new text begin The appropriations in this section are contingent on receiving a dollar-for-dollar
match from private sources. This is a onetime appropriation.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 6.80, new text end new text begin is repealed.
new text end