HF 87

as introduced - 92nd Legislature (2021 - 2022) Posted on 01/14/2021 02:20pm

A bill for an act
relating to state government; establishing the SAVI program for state agencies to
encourage innovation and cost savings; amending Minnesota Statutes 2020, section
16A.28, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter
15.

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

Section 1.

new text begin [15.761] SAVI PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The state agency value initiative (SAVI) program
is established to encourage state agencies to identify cost-effective and efficiency measures
in agency programs and operations that result in cost savings for the state. All state agencies,
including Minnesota State Colleges and Universities, may participate in this program.
new text end

new text begin Subd. 2. new text end

new text begin Retained savings. new text end

new text begin (a) In order to encourage innovation and creative cost savings
by state employees, upon approval of the commissioner of management and budget, 50
percent of any appropriations for agency operations that remain unspent at the end of a
biennium because of unanticipated innovation, efficiencies, or creative cost-savings may
be carried forward and retained by the agency to fund specific agency proposals or projects.
Agencies choosing to spend retained savings funds must ensure that project expenditures
do not create future obligations beyond the amounts available from the retained savings.
The retained savings must be used only to fund projects that directly support the agency's
mission. This section does not restrict authority granted by other law to carry forward money
for a different period or for different purposes.
new text end

new text begin (b) This section supersedes any contrary provision of section 16A.28.
new text end

new text begin Subd. 3. new text end

new text begin Special peer review panel; review process. new text end

new text begin (a) Each participating agency
must organize a peer review panel that will determine which proposal or project receives
funding from the SAVI program. The peer review panel must be comprised of department
employees who are credited with cost-savings initiatives and department managers. The
ratio between managers and department employees must be balanced.
new text end

new text begin (b) An agency may spend money for a project recommended for funding by the peer
review panel after:
new text end

new text begin (1) the agency has posted notice of spending for the proposed project on the agency
website for at least 30 days; and
new text end

new text begin (2) the commissioner of management and budget has approved spending money from
the SAVI account for the project.
new text end

new text begin (c) Before approving a project, the commissioner of management and budget must submit
the request to the Legislative Advisory Commission for its review and recommendation.
Upon receiving a request from the commissioner, the Legislative Advisory Commission
shall post notice of the request on a legislative website for at least 30 days. Failure of the
commission to make a recommendation within this 30-day period is considered a negative
recommendation. A recommendation of the commission must be made at a meeting of the
commission unless a written recommendation is signed by all the members entitled to vote
on the item.
new text end

new text begin Subd. 4. new text end

new text begin SAVI-dedicated account. new text end

new text begin Each agency that participates in the SAVI program
shall have a SAVI-dedicated account in the special revenue fund, or other appropriate fund
as determined by the commissioner of management and budget, into which the agency's
savings are deposited. The agency will manage and review projects that are funded from
this account. Money in the account is appropriated to the participating agency for purposes
authorized by this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2022, and first applies to funds
to be carried forward from the biennium ending June 30, 2022, to the biennium beginning
July 1, 2022.
new text end

Sec. 2.

Minnesota Statutes 2020, section 16A.28, subdivision 3, is amended to read:

Subd. 3.

Lapse.

Any portion of any appropriation not carried forward and remaining
unexpended and unencumbered at the close of a fiscal year lapses to the fund from which
it was originally appropriated. new text begin Except as provided in section 15.761, new text end any appropriation
amounts not carried forward and remaining unexpended and unencumbered at the close of
a biennium lapse to the fund from which the appropriation was made.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2022.
new text end