SF 31

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:09am

A bill for an act
relating to state government; streamlining state government; abolishing the
Department of Employment and Economic Development and the Department
of Labor and Industry; downsizing the Department of Commerce; establishing
a task force; requiring establishment of an employee participation committee
before agency restructuring; requiring reports.

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

Section 1. new text begin REORGANIZATION; GOALS.
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new text begin The legislature finds that it is desirable to reorganize state services relating to
business and employment to achieve the following goals:
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new text begin (1) sustainable economic development throughout all regions of the state and all
sectors of the economy to ensure the economic well-being of the state's residents;
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new text begin (2) growth of the economy of this state that consistently exceeds the national average;
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new text begin (3) improved delivery of services, including greater efficiency and transparency;
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new text begin (4) citizen participation in all relevant decision-making processes and at meaningful
points in the processes;
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new text begin (5) best position the state, its workforce, its business community, and its educational
system to meet the needs of a competitive, global, and dynamic economy;
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new text begin (6) optimal coordination between the state's postsecondary higher education
institutions and industry; and
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new text begin (7) streamline state government, including elimination of at least one state
department.
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Sec. 2. new text begin REORGANIZATION; OUTCOMES.
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new text begin Reorganization must achieve the following outcomes:
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new text begin (1) increased citizen access to pertinent, understandable information relating to
business and employment;
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new text begin (2) better citizen representation, access, and information through an office of public
information and advocacy;
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new text begin (3) decentralization of the service delivery system combined with one-stop offering
of related services for the benefit of citizens of the state as consumers of services and
as persons who are subject to regulation;
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new text begin (4) flattening the internal organization of the delivery system with processes designed
to encourage cooperation, consensus, and participation of management and workers;
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new text begin (5) the capacity to identify and capture cost savings where those savings can be made
without reducing the ability to implement the state's business and employment policy;
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new text begin (6) the flexibility to enable state and local governments to coordinate and cooperate
as well as identify and address existing and emerging business and employment issues of
state, national, and international import;
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new text begin (7) increased accountability by reducing the number of executive administrators
reporting directly to the governor through a variety of strategies, including elimination
of at least one state department;
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new text begin (8) a commitment to adequate staff development resources sufficient to implement
the reorganization;
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new text begin (9) increased consumer satisfaction with state services, including licensing and
compliance investigations;
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new text begin (10) increased employment, especially in high-wage industries projected to expand
in Minnesota;
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new text begin (11) reduction in labor shortages in high-wage industries;
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new text begin (12) increased business development support, including numbers of start-up
companies with survival rates beyond five years;
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new text begin (13) reduced workplace injuries; and
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new text begin (14) increased development of businesses in emerging sectors, such as bioscience
and other green-economy-related businesses.
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Sec. 3. new text begin TASK FORCE.
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new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) Within 60 days after the effective date of this
section, a facilitator provided by the management analysis division of the Department of
Management and Budget shall convene each of the following three groups:
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new text begin (1) a group consisting of ten to 15 persons from agencies listed in section 5 who are
members of the managerial plan established under Minnesota Statutes, section 43A.18,
subdivision 3, appointed by the governor within 30 days after the effective date of this
section;
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new text begin (2) a group consisting of employees from agencies listed in section 5 who are
represented by exclusive representatives, selected by the exclusive representatives of
employees of those agencies within 30 days after the effective date of this section;
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new text begin (3) a group consisting of up to ten persons appointed by the speaker of the house and
up to ten persons appointed by the Subcommittee on Committees of the Committee on
Rules and Administration of the senate, including at least one person appointed by each
appointing authority in each of the following categories:
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new text begin (i) a representative of labor unions;
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new text begin (ii) a representative of business;
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new text begin (iii) a representative of an institution of higher education with expertise in vocational
training;
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new text begin (iv) a representative of an institution of higher education with expertise in career
training;
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new text begin (v) an attorney experienced in workers' compensation law;
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new text begin (vi) a member of the financial consulting community; and
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new text begin (vii) a member of the employee placement community.
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new text begin Organizations, occupations, and industries described in this clause may submit the
names of persons they wish considered for appointment to the task force to the appointing
authorities. The appointing authorities under this clause must complete their appointments
within 30 days of the effective date of this section.
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new text begin (b) The management analysis division of the Department of Management and
Budget shall provide a facilitator for each group.
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new text begin Subd. 2. new text end

new text begin Activities. new text end

new text begin (a) Members of the task force established in subdivision 1 shall
serve as partners in changing the delivery of state services and the performance of state
functions. Each group of the task force shall initially meet separately to develop its own
recommendations for a governmental structure to perform the functions and provide
the services affected by section 5 in furtherance of the outcomes listed in section 2. A
facilitator shall assist each group. Each group must complete its recommendations by
October 1, 2011. By September 1, 2011, each group shall select from its membership
representatives to a joint committee, as follows:
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new text begin (1) two representatives from the group established by subdivision 1, clause (1);
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new text begin (2) three representatives from the group established by subdivision 1, clause (2); and
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new text begin (3) five representatives from the group established by subdivision 1, clause (3), who
must be private citizens.
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new text begin (b) The governor shall select one of the representatives designated in paragraph
(a), clauses (1) to (3), to convene the first meeting of the joint committee by October 1,
2011. The joint committee shall develop a recommendation for a governmental structure
to perform the functions and provide the services affected by section 5 in furtherance
of the goals and outcomes listed in sections 1 and 2, including ways to measure and
track performances on the outcomes established in section 2. The recommendation
must address ways to obtain input from local and regional governmental units in order
to achieve the coordinated and cooperative outcomes required by section 2. The speaker
of the house and the Subcommittee on Committees of the Committee on Rules and
Administration of the senate may provide legislative staff support to the joint committee
upon its request. A facilitator provided by the management analysis division shall chair
meetings of the joint committee and serve as a nonvoting member. The joint committee
shall submit its recommendation for reorganization to the governor and the legislature by
January 15, 2012.
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new text begin (c) The joint committee expires after submission of the report.
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Sec. 4. new text begin EMPLOYEE PARTICIPATION COMMITTEE.
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new text begin (a) By July 1, 2011, exclusive representatives of state employees and agency heads
shall establish a committee that includes representatives of state employees and employers
within each affected agency. Each exclusive representative of employees shall select a
committee member from each of its bargaining units in each affected agency. The head of
each agency shall select an employee member from each unit of employees not represented
by an exclusive representative. The agency head shall also appoint one or more committee
members to represent the agency. The number of members appointed by the agency head,
however, may not exceed the total number of members representing bargaining units.
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new text begin (b) The committee established under paragraph (a) shall:
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new text begin (1) identify tasks related to agency reorganization and adopt plans for addressing
those tasks;
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new text begin (2) identify other employer and employee issues related to reorganization and adopt
plans for addressing those issues;
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new text begin (3) adopt detailed plans for providing retraining for affected employees; and
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new text begin (4) guide the implementation of the reorganization.
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new text begin (c) The committee must submit a copy of its plans by January 15, 2012, to the
affected commissioners and to the chairs of the legislative committees with primary policy
jurisdiction over state government.
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new text begin (d) The committee expires after submission of the plans required under paragraph (c).
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Sec. 5. new text begin ABOLITION OF AGENCIES, POWERS, AND DUTIES.
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new text begin Subdivision 1. new text end

new text begin Agencies. new text end

new text begin The Departments of Employment and Economic
Development and Labor and Industry are abolished.
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new text begin Subd. 2. new text end

new text begin Powers and duties. new text end

new text begin The following powers and duties of the Department of
Commerce are abolished:
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new text begin (1) those related to the financial exam division; and
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new text begin (2) those related to the market insurance division.
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new text begin Subd. 3. new text end

new text begin Collective bargaining agreements. new text end

new text begin Nothing in this section abrogates
or modifies any rights of affected employees under terms of an agreement between an
exclusive bargaining representative and the state or one of its appointing authorities.
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Sec. 6. new text begin BUDGET FOR NEXT BIENNIUM.
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new text begin In preparing a proposed budget for the biennium beginning July 1, 2012, the
governor shall include an amount to cover the functions performed and services provided
by the agencies abolished in section 5, subdivision 1, and the functions abolished in
section 5, subdivision 2. The amount allocated for those functions and services must
be at least equal to the amount appropriated for those functions and services in fiscal
years 2011 and 2012, adjusted for inflation as measured by the Consumer Price Index
for Urban Wage Earners and Clerical Workers all items index published by the Bureau
of Labor Statistics of the United States Department of Labor. The budget must include
an amount for staff development according to Minnesota Statutes, section 43A.045, and
a substantial increase in overall expenditures for staff development. The budget may
not require the layoff of classified employees or unclassified employees covered by a
collective bargaining agreement except as provided in a plan negotiated under Minnesota
Statutes, chapter 179A, that provides options to layoff for employees who would be
affected. The governor's budget must be in conformance with any reorganization plan
enacted by the legislature in 2012 in response to the recommendation submitted by the
task force under section 3. If no reorganization plan is enacted in 2012, the governor's
budget must take into account the reorganization recommendations of the task force, as
well as any additional or alternative recommendations of the governor.
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Sec. 7. new text begin MANAGERIAL POSITION REDUCTIONS.
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new text begin The governor must reduce the number of deputy commissioners, assistant
commissioners, and positions designated as unclassified under authority of Minnesota
Statutes, section 43A.08, subdivision 1a, due to the reorganization prescribed by this act
by an amount that will generate savings to the general fund of $....... in the biennium
ending June 30, 2014, and $....... in the biennium ending June 30, 2016.
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Sec. 8. new text begin EFFECTIVE DATE.
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new text begin (a) Sections 1 to 4 and 6 are effective the day following final enactment.
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new text begin (b) Sections 5 and 7 are effective July 1, 2012.
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