Minnesota Legislature
SF 1047A
Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 01/15/2013 08:29pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1047
1.3relating to state government financing; establishing the Sunset Advisory
1.4Commission; prohibiting legislative liaison positions in state agencies and
1.5departments; eliminating assistant commissioner positions and reducing deputy
1.6commissioner positions; changing provisions of performance data required
1.7in the budget proposal; requiring specific funding information for forecasted
1.8programs; implementing zero-based budgeting principles; implementing federal
1.9offset program for collection of debts owed to state agencies; providing a state
1.10employee salary freeze; providing an HSA-eligible high-deductible health plan
1.11for state employees; requiring a 15 percent reduction in the state workforce;
1.12requiring a verification audit for dependent eligibility for state employee health
1.13insurance; requiring a request for proposals for recommendations on state
1.14building efficiency, state vehicle management, tax fraud prevention, and strategic
1.15sourcing; requiring reports; appropriating money;amending Minnesota Statutes
1.162010, sections 15.057; 15.06, subdivision 8; 16A.10, subdivisions 1a, 1b, 1c;
1.1716A.103, subdivision 1a; 16A.11, subdivision 3; 16B.03; 43A.08, subdivision
1.181; 43A.23, subdivision 1; 45.013; 84.01, subdivision 3; 116.03, subdivision 1;
1.19116J.01, subdivision 5; 116J.035, subdivision 4; 174.02, subdivision 2; 241.01,
1.20subdivision 2; 270C.41; Laws 2010, chapter 215, article 6, section 4; proposing
1.21coding for new law in Minnesota Statutes, chapters 16A; 16D; 43A; proposing
1.22coding for new law as Minnesota Statutes, chapter 3D; repealing Minnesota
1.23Statutes 2010, section 197.585, subdivision 5.
1.24May 17, 2011
1.25The Honorable Michelle L. Fischbach
1.26President of the Senate
1.27The Honorable Kurt Zellers
1.28Speaker of the House of Representatives
1.29We, the undersigned conferees for S.F. No. 1047 report that we have agreed upon
1.30the items in dispute and recommend as follows:
1.31That the House recede from its amendments and that S.F. No. 1047 be further
1.32amended as follows:
1.33Delete everything after the enacting clause and insert:
2.4 The sums shown in the columns marked "Appropriations" are appropriated to the
2.5agencies and for the purposes specified in this article. The appropriations are from the
2.6general fund, or another named fund, and are available for the fiscal years indicated
2.7for each purpose. The figures "2012" and "2013" used in this article mean that the
2.8appropriations listed under them are available for the fiscal year ending June 30, 2012, or
2.9June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
2.10year 2013. "The biennium" is fiscal years 2012 and 2013.
2.21The amounts that may be spent for each
2.22purpose are specified in the following
2.23subdivisions.
2.26During the biennium ending June 30, 2013,
2.27any revenues received by the house of
2.28representatives from voluntary donations
2.29to support broadcast or print media are
2.30appropriated to the house of representatives.
3.1From its funds, $10,000 each year is for
3.2purposes of the legislators' forum, through
3.3which Minnesota legislators meet with
3.4counterparts from South Dakota, North
3.5Dakota, and Manitoba to discuss issues of
3.6mutual concern.
3.9(a) This appropriation is to fund the Office of
3.10the Governor and Lieutenant Governor.
3.11(b) By September 1 of each year, the
3.12commissioner of management and budget
3.13shall report to the chairs and ranking
3.14minority members of the senate State
3.15Government Innovation and Veterans Affairs
3.16Committee and the house of representatives
3.17State Government Finance Committee any
3.18personnel costs incurred by the Offices of the
3.19Governor and Lieutenant Governor that were
3.20supported by appropriations to other agencies
3.21during the previous fiscal year. The Office
3.22of the Governor shall inform the chairs and
3.23ranking minority members of the committees
3.24before initiating any interagency agreements.
3.25(c) During the biennium ending June 30,
3.262013, the Office of the Governor may not
3.27receive payments of more than $670,000 each
3.28fiscal year from other executive agencies
3.29under Minnesota Statutes, section 15.53, to
3.30support office costs incurred by the office.
3.31Payments received under this paragraph must
3.32be deposited in a special revenue account.
3.33Money in the account is appropriated to the
3.34Office of the Governor. The authority in
3.35this paragraph supersedes other law enacted
4.1in 2011 that limits the ability of the office
4.2to enter into agreements relating to office
4.3costs with other executive branch agencies
4.4or prevents the use of appropriations made to
4.5other agencies for agreements with the office
4.6under Minnesota Statutes, section 15.53.
4.16Of this appropriation, $65,000 in the first
4.17year and $65,000 in the second year are
4.18from the general fund for transfer to the
4.19commissioner of public safety for a grant to
4.20the Minnesota County Attorneys Association
4.21for prosecutor and law enforcement training.
4.23Any funds available in the account
4.24established in Minnesota Statutes, section
4.255.30, pursuant to the Help America Vote
4.26Act, after funds appropriated in other laws
4.27enacted during the 2011 regular session are
4.28allotted for purposes specified in those laws,
4.29are appropriated for the purposes and uses
4.30authorized by federal law.
5.7$130,000 in the first year is for the cost
5.8of considering complaints filed under
5.9Minnesota Statutes, section 211B.32. Until
5.10June 30, 2013, the chief administrative
5.11law judge may not make any assessment
5.12against a county or counties under Minnesota
5.13Statutes, section 211B.37. Any amount of
5.14this appropriation that remains unspent at
5.15the end of the biennium must be canceled
5.16to the general account of the state elections
5.17campaign fund. The base for fiscal year 2014
5.18is $130,000, to be available for the biennium,
5.19under the same terms.
5.22During the biennium ending June 30, 2013,
5.23the office must not charge fees to a public
5.24noncommercial educational television
5.25broadcast station for access to the state
5.26information infrastructure.
5.29The amounts that may be spent for each
5.30purpose are specified in the following
5.31subdivisions.
6.1$74,000 the first year and $74,000 the second
6.2year are for the Council on Developmental
6.3Disabilities.
6.4$8,158,000 the first year and $8,158,000
6.5the second year are for office space costs of
6.6the legislature and veterans organizations,
6.7ceremonial space, and statutorily free space.
6.10(a) The appropriations under this section are
6.11to the commissioner of administration for the
6.12purposes specified.
6.13(b) $1,002,000 the first year and $1,002,000
6.14the second year are for matching grants for
6.15public television.
6.16(c) $190,000 the first year and $190,000
6.17the second year are for public television
6.18equipment grants. Equipment or matching
6.19grant allocations shall be made after
6.20considering the recommendations of the
6.21Minnesota Public Television Association.
6.22(d) $264,000 the first year and $264,000 the
6.23second year are for community service grants
6.24to public educational radio stations.
6.25(e) $92,000 the first year and $92,000 the
6.26second year are for equipment grants to
6.27public educational radio stations.
6.28(f) The grants in paragraphs (d) and (e)
6.29must be allocated after considering the
6.30recommendations of the Association of
6.31Minnesota Public Educational Radio Stations
6.32under Minnesota Statutes, section 129D.14.
7.1(g) $77,000 the first year and $77,000 the
7.2second year are for grants to Minnesota
7.3Public Radio, Inc., for upgrades to
7.4Minnesota's Emergency Alert and AMBER
7.5Alert Systems.
7.6(h) Any unencumbered balance remaining
7.7the first year for grants to public television or
7.8radio stations does not cancel and is available
7.9for the second year.
7.24The amounts that may be spent for each
7.25purpose are specified in subdivisions 2 and 3.
7.26The commissioner must implement
7.27any reduction in funding by reducing
7.28administrative support functions before any
7.29reduction to compliance and enforcement
7.30programs.
8.6These appropriations are from the lawful
8.7gambling regulation account in the special
8.8revenue fund.
8.10These appropriations are from the racing
8.11and card playing regulation accounts in the
8.12special revenue fund.
8.15(a) Of this amount, $12,000 each year is for a
8.16grant to the Upper Minnesota Film Office.
8.17(b)(1) To develop maximum private sector
8.18involvement in tourism, $500,000 the first
8.19year and $500,000 the second year must
8.20be matched by Explore Minnesota Tourism
8.21from nonstate sources. Each $1 of state
8.22incentive must be matched with $3 of private
8.23sector funding. Cash match is defined as
8.24revenue to the state or documented cash
8.25expenditures directly expended to support
8.26Explore Minnesota Tourism programs. Up
8.27to one-half of the private sector contribution
8.28may be in-kind or soft match. The incentive
8.29in the first year shall be based on fiscal
8.30year 2011 private sector contributions. The
8.31incentive in the second year will be based on
9.1fiscal year 2012 private sector contributions.
9.2This incentive is ongoing.
9.3(2) Funding for the marketing grants is
9.4available either year of the biennium.
9.5Unexpended grant funds from the first year
9.6are available in the second year.
9.7(3) Unexpended money from the general
9.8fund appropriations made under this section
9.9does not cancel but must be placed in a
9.10special marketing account for use by Explore
9.11Minnesota Tourism for additional marketing
9.12activities.
9.13(c) $325,000 the first year and $325,000 the
9.14second year are for the Minnesota Film and
9.15TV Board. The appropriation in each year
9.16is available only upon receipt by the board
9.17of $1 in matching contributions of money or
9.18in-kind contributions from nonstate sources
9.19for every $3 provided by this appropriation,
9.20except that each year up to $50,000 is
9.21available on July 1 even if the required
9.22matching contribution has not been received
9.23by that date.
9.24(d) $100,000 the first year is for a grant to the
9.25Minnesota Film and TV Board for the film
9.26jobs production program under Minnesota
9.27Statutes, section 116U.26. This appropriation
9.28is available until expended.
9.32The amounts that may be spent for each
9.33purpose are specified in the following
9.34subdivisions.
10.2Notwithstanding Minnesota Statutes, section
10.3138.668, the Minnesota Historical Society
10.4may not charge a fee for its general tours at
10.5the Capitol, but may charge fees for special
10.6programs other than general tours.
10.15Any unencumbered balance remaining in
10.16this subdivision the first year does not cancel
10.17but is available for the second year of the
10.18biennium.
10.20The Minnesota Historical Society may
10.21reallocate funds appropriated in and between
10.22subdivisions 2 and 3 for any program
10.23purposes and the appropriations are available
10.24in either year of the biennium.
10.27The amounts that may be spent for each
10.28purpose are specified in the following
10.29subdivisions.
11.4Any unencumbered balance remaining in this
11.5section the first year does not cancel, but is
11.6available for the second year of the biennium.
11.16Of this appropriation $167,000 each year is
11.17for a cultural resources specialist to assist the
11.18council with the duties assigned to it relating
11.19to Indian burial grounds under Minnesota
11.20Statutes, section 307.08.
11.24These appropriations are to be spent by the
11.25commissioner of management and budget
11.26according to Minnesota Statutes, section
11.273.736, subdivision 7. If the appropriation for
11.28either year is insufficient, the appropriation
11.29for the other year is available for it.
12.4The amounts that may be spent for each
12.5purpose are specified in the following
12.6subdivisions.
12.7During the biennium ending June 30, 2013,
12.8payments for retirement allowances for
12.9former legislators and surviving spouses
12.10must be made from the legislators retirement
12.11fund created under Minnesota Statutes,
12.12section 3A.03, subdivision 3, and not from
12.13the general fund.
12.15Under Minnesota Statutes, section 352C.001,
12.16if an appropriation in this section for either
12.17year is insufficient, the appropriation for the
12.18other year is available for it.
12.20These amounts are estimated to be needed
12.21under Minnesota Statutes, section 353.505.
12.24The amounts estimated to be needed are as
12.25follows:
12.26(a) Special direct state aid. $12,954,000 the
12.27first year and $12,954,000 the second year
12.28are for special direct state aid authorized
12.29under Minnesota Statutes, section 354A.12,
12.30subdivisions 3a and 3c.
12.31(b) Special direct state matching aid.
12.32$2,500,000 the first year and $2,500,000
13.1the second year are for special direct state
13.2matching aid authorized under Minnesota
13.3Statutes, section 354A.12, subdivision 3b.
13.6The amounts estimated to be needed for
13.7special direct state aid to first class city
13.8teachers retirement funds authorized under
13.9Minnesota Statutes, section354A.12 ,
13.10subdivisions 3a and 3c.
13.13The amounts estimated to be needed for
13.14special direct state aid to first class city
13.15teachers retirement funds authorized under
13.16Minnesota Statutes, section354A.12 ,
13.17subdivisions 3a and 3c.
13.19Notwithstanding Minnesota Statutes, section
13.20349A.10 , subdivision 3, the operating budget
13.21must not exceed $29,000,000 in fiscal year
13.222012 and $29,000,000 in fiscal year 2013.
13.32(a) The appropriations in this section
13.33may only be spent with the approval of
13.34the governor after consultation with the
14.1Legislative Advisory Commission pursuant
14.2to Minnesota Statutes, section 3.30.
14.3(b) If an appropriation in this section for
14.4either year is insufficient, the appropriation
14.5for the other year is available for it.
14.6(c) If a contingent account appropriation
14.7is made in one fiscal year, it should be
14.8considered a biennial appropriation.
14.9 Sec. 35. Laws 2009, chapter 101, article 2, section 106, is amended to read:
14.10 Sec. 106. ENTERPRISE REAL PROPERTY CONTRIBUTIONS.
14.11On or before June 1, 2009, the commissioner of administration shall determine the
14.12amount to be contributed by each executive agency to maintain the enterprise real property
14.13technology system for the fiscal year 2010 and fiscal year 2011 biennium. On or before
14.14June 15, 2009, each executive agency shall enter into an agreement with the commissioner
14.15of administration setting forth the manner in which the executive agency shall make its
14.16contribution to the enterprise real property system, either from uncommitted fiscal year
14.172009 funds or by contributing from fiscal year 2010 and fiscal year 2011 funds to the real
14.18property enterprise system and services account to fund the total amount of $399,000 for
14.19the biennium. Funds will be available for the enterprise real property technology project
14.20until June 30, 2013. Funds contributed under this section must be credited to the enterprise
14.21real property technology system and services account.
14.22EFFECTIVE DATE.This section is effective the day following final enactment.
14.23 Sec. 36. PROBLEM GAMBLING APPROPRIATION.
14.24$225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from
14.25the lottery prize fund to the Gambling Control Board for a grant to the state affiliate
14.26recognized by the National Council on Problem Gambling. The affiliate must provide
14.27services to increase public awareness of problem gambling, education and training for
14.28individuals and organizations providing effective treatment services to problem gamblers
14.29and their families, and research relating to problem gambling. These services must be
14.30complementary to and not duplicative of the services provided through the problem
14.31gambling program administered by the commissioner of human services. Of this
14.32appropriation, $50,000 in fiscal year 2012 and $50,000 in fiscal year 2013 are contingent
14.33on the contribution of nonstate matching funds. Matching funds may be either cash or
15.1qualifying in-kind contributions. The commissioner of management and budget may
15.2disburse the state portion of the matching funds in increments of $25,000 upon receipt
15.3of a commitment for an equal amount of matching nonstate funds. These are onetime
15.4appropriations.
15.5 Sec. 37. APPROPRIATION; REIMBURSEMENT OF RECOUNT COSTS.
15.6$322,000 is appropriated from the general fund to the secretary of state in fiscal year
15.72011 for the reimbursement of costs of recounts during the 2010 general election, to be
15.8paid to counties consistent with the cost survey of the counties previously conducted
15.9by the secretary of state and for reimbursement to the secretary of state costs in those
15.10recounts already paid by the secretary of state to the counties. This appropriation remains
15.11available until December 31, 2011.
15.12EFFECTIVE DATE.This section is effective the day following final enactment.
15.13 Sec. 38. APPROPRIATION; PAYMENT OF LEGAL FEES.
15.14$148,375 is appropriated from the general fund to the secretary of state in fiscal
15.15year 2011 for the payment of legal fees imposed by the United States District Court,
15.16District of Minnesota, in the case of American Broadcasting Companies, Inc. et al v.
15.17Mark Ritchie et al. (Case 08-cv-5285-MJD-AJB). This appropriation remains available
15.18until June 30, 2013.
15.19EFFECTIVE DATE.This section is effective the day following final enactment.
15.20 Sec. 39. SAVINGS; APPROPRIATION REDUCTION FOR EXECUTIVE
15.21AGENCIES.
15.22The commissioner of management and budget must reduce general fund
15.23appropriations to executive agencies, including constitutional offices, for agency
15.24operations for the biennium ending June 30, 2013, by $94,875,000. The Minnesota State
15.25Colleges and Universities is not an executive agency for purposes of this section. The
15.26commissioner must not reduce appropriations to the Department of Veterans Affairs or the
15.27Department of Military Affairs except to the extent the commissioner determines there
15.28are savings directly attributable to items specified in clauses (2), (4), (5), and (6). To
15.29the greatest extent possible, these reductions must come from savings provided by the
15.30reforms, efficiencies, and cost-savings measures contained in this act, including:
15.31(1) reduction in the number of full-time equivalent employees;
15.32(2) salary and benefit changes;
16.1(3) elimination of deputy and assistant commissioner positions;
16.2(4) consolidation of responsibilities for executive branch information technology
16.3systems;
16.4(5) operational efficiencies and cost savings obtained under contracts with vendors;
16.5and
16.6(6) verification of dependent eligibility for state employee group insurance coverage.
16.7If operational efficiencies and cost savings obtained under contracts with vendors
16.8yield savings in dedicated funds other than those established in the state constitution or
16.9protected by federal law, the commissioner of management and budget may transfer
16.10the amount of savings to the general fund. Reductions made in 2013 must be reflected
16.11as reductions in agency base budgets for fiscal years 2014 and 2015. The commissioner
16.12of management and budget must report to the chairs and ranking minority members of
16.13the senate Finance Committee and the house of representatives Ways and Means and
16.14Finance Committees regarding the amount of reductions in spending by each agency
16.15under this section.
16.16 Sec. 40. REPORTS.
16.17By January 15, 2012, and January 15, 2013, the Minnesota Humanities Commission,
16.18Council on Black Minnesotans, Council on Asian-Pacific Minnesotans, Council on Affairs
16.19of Chicano/Latino People, and Indian Affairs Council must each report to the chairs
16.20and ranking minority members of the legislative committees with jurisdiction over the
16.21groups. The reports must describe the results obtained with the appropriations in this act,
16.22including a description and evaluation of how the groups accomplished their statutory
16.23duties in the preceding year.
16.27The sums shown in the columns marked "Appropriations" are appropriated to the
16.28agencies and for the purposes specified in this article. The appropriations are from the
16.29general fund and are available for the fiscal years indicated for each purpose. The figures
16.30"2012" and "2013" used in this article mean that the appropriations listed under them are
16.31available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The
16.32first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is
16.33fiscal years 2012 and 2013.
17.7The amounts that may be spent for each
17.8purpose are specified in the following
17.9subdivisions.
17.13$3,000,000 the first year is for additional
17.14costs of enlistment incentives.
17.15If appropriations for either year of the
17.16biennium are insufficient, the appropriation
17.17from the other year is available. The
17.18appropriations for enlistment incentives are
17.19available until expended.
17.26The amounts that may be spent for each
17.27purpose are specified in the following
17.28subdivisions.
18.1$100,000 in the first year is from the
18.2"Support Our Troops" account established
18.3under Minnesota Statutes, section 190.19,
18.4subdivision 2a, for a grant to the Minnesota
18.5Assistance Council for Veterans. This is a
18.6onetime appropriation.
18.7$945,000 each year is for the higher
18.8education veterans assistance program under
18.9Minnesota Statutes, section 197.585.
18.10$100,000 each year is for the costs of
18.11administering the Minnesota GI Bill program
18.12under Minnesota Statutes, section 197.791.
18.13$353,000 each year is for grants to the
18.14following congressionally chartered veterans
18.15service organizations, as designated by the
18.16commissioner: Disabled American Veterans,
18.17Military Order of the Purple Heart, the
18.18American Legion, Veterans of Foreign Wars,
18.19Vietnam Veterans of America, AMVETS,
18.20and Paralyzed Veterans of America. This
18.21funding must be allocated in direct proportion
18.22to the funding currently being provided by
18.23the commissioner to these organizations.
18.25Veterans Homes Special Revenue Account.
18.26The general fund appropriations made to
18.27the department may be transferred to a
18.28veterans homes special revenue account in
18.29the special revenue fund in the same manner
18.30as other receipts are deposited according
18.31to Minnesota Statutes, section 198.34, and
18.32are appropriated to the department for the
18.33operation of veterans homes facilities and
18.34programs.
19.1Fergus Falls Veterans Home. Of the
19.2general fund appropriation, $738,000 in
19.3fiscal year 2013 is for operation of a new
19.421-bed specialty care/Alzheimer's unit at the
19.5Minnesota Veterans Home in Fergus Falls.
19.6Base funding for this program is $842,000 in
19.7fiscal years 2014 and 2015.
19.8Minneapolis Veterans Home. Of the
19.9general fund appropriation, $162,000 in
19.10fiscal year 2013 is for operation of a new
19.11adult day care program at the Minnesota
19.12Veterans Home in Minneapolis. Base
19.13funding for this program is $232,000 in fiscal
19.14years 2014 and 2015.
19.15Veterans Homes Service Redesign.
19.16$551,000 in fiscal year 2012 and $801,000 in
19.17fiscal year 2013, generated from additional
19.18nongeneral fund revenue and cost savings
19.19from operating efficiencies, are to be used to
19.20support the operational needs of the five state
19.21veterans homes.
19.22 Sec. 4. Laws 2010, chapter 215, article 6, section 4, is amended to read:
19.24Of the appropriation in Laws 2009, chapter
19.2594, article 3, section 2, subdivision 3, or from
19.26funds carried forward from fiscal year 2009:
19.27(1)$1,000,000 $800,000 in fiscal year 2011
19.28is for operational expenses related to the
19.2921-bed addition at the Fergus Falls Veterans
19.30Home; and
19.31(2)$113,000 $313,000 in fiscal year 2011 is
19.32for start-up expenses related to the opening of
20.1an adult daycare facility at the Minneapolis
20.2Veterans Home.
20.3An appropriation in this section that is
20.4unspent at the end of fiscal year 2011 carries
20.5forward and is available in fiscal year 2012.
20.6EFFECTIVE DATE.This section is effective the day following final enactment.
20.7 Sec. 5. REPEALER.
20.8Minnesota Statutes 2010, section 197.585, subdivision 5, is repealed.
20.9EFFECTIVE DATE.This section is effective the day following final enactment.
20.12 Section 1. Minnesota Statutes 2010, section 3.85, subdivision 3, is amended to read:
20.13 Subd. 3. Membership. The commission consists offive seven members of the
20.14senate appointed by the Subcommittee on Committees of the Committee on Rules and
20.15Administration andfive seven members of the house of representatives appointed by
20.16the speaker. No more than five members from each chamber may be from the majority
20.17caucus in that chamber. Members shall be appointed at the commencement of each regular
20.18session of the legislature for a two-year term beginning January 16 of the first year of the
20.19regular session. Members continue to serve until their successors are appointed. Vacancies
20.20that occur while the legislature is in session shall be filled like regular appointments. If the
20.21legislature is not in session, senate vacancies shall be filled by the last Subcommittee on
20.22Committees of the senate Committee on Rules and Administration or other appointing
20.23authority designated by the senate rules, and house of representatives vacancies shall be
20.24filled by the last speaker of the house, or if the speaker is not available, by the last chair of
20.25the house of representatives Rules Committee.
20.26EFFECTIVE DATE.This section is effective January 16, 2013.
20.27 Sec. 2. [3D.01] SHORT TITLE.
20.28This chapter may be cited as the "Minnesota Sunset Act."
20.29 Sec. 3. [3D.02] DEFINITIONS.
20.30 Subdivision 1. Scope. The definitions in this section apply to this chapter.
21.1 Subd. 2. Advisory committee. "Advisory committee" means a committee, council,
21.2commission, or other entity created under state law whose primary function is to advise
21.3a state agency.
21.4 Subd. 3. Commission. "Commission" means the Sunset Advisory Commission.
21.5 Subd. 4. State agency. "State agency" means an agency expressly made subject
21.6to this chapter.
21.7 Sec. 4. [3D.03] SUNSET ADVISORY COMMISSION.
21.8 Subdivision 1. Membership. (a) The Sunset Advisory Commission consists of 12
21.9members appointed as follows:
21.10(1) five senators and one public member, appointed according to the rules of the
21.11senate, with no more than three senators from the majority caucus; and
21.12(2) five members of the house of representatives and one public member, appointed
21.13by the speaker of the house, with no more than three of the house of representatives
21.14members from the majority caucus.
21.15(b) The first members of the Sunset Advisory Commission must be appointed before
21.16September 1, 2011, for terms ending the first Monday in January 2013.
21.17 Subd. 2. Public member restrictions. An individual is not eligible for appointment
21.18as a public member if the individual or the individual's spouse is:
21.19(1) regulated by a state agency that the commission will review during the term for
21.20which the individual would serve;
21.21(2) employed by, participates in the management of, or directly or indirectly has
21.22more than a ten percent interest in a business entity or other organization regulated by a
21.23state agency the commission will review during the term for which the individual would
21.24serve; or
21.25(3) required to register as a lobbyist under chapter 10A because of the person's
21.26activities for compensation on behalf of a profession or entity related to the operation of
21.27an agency under review.
21.28 Subd. 3. Removal. (a) It is a ground for removal of a public member from the
21.29commission if the member does not have the qualifications required by subdivision 2
21.30for appointment to the commission at the time of appointment or does not maintain the
21.31qualifications while serving on the commission. The validity of the commission's action is
21.32not affected by the fact that it was taken when a ground for removal of a public member
21.33from the commission existed.
21.34(b) Except as provided in paragraph (a), a public member may be removed only as
21.35provided in section 15.0575, subdivision 4.
22.1 Subd. 4. Terms. Legislative members serve at the pleasure of the appointing
22.2authority. Public members serve two-year terms expiring the first Monday in January of
22.3each odd-numbered year.
22.4 Subd. 5. Limits. Members are subject to the following restrictions:
22.5(1) after an individual serves four years on the commission, the individual is not
22.6eligible for appointment to another term or part of a term;
22.7(2) a legislative member who serves a full term may not be appointed to an
22.8immediately succeeding term; and
22.9(3) a public member may not serve consecutive terms, and, for purposes of this
22.10prohibition, a member is considered to have served a term only if the member has served
22.11more than one-half of the term.
22.12 Subd. 6. Appointments. Appointments must be made before the second Monday of
22.13January of each odd-numbered year.
22.14 Subd. 7. Legislative members. If a legislative member ceases to be a member
22.15of the legislative body from which the member was appointed, the member vacates
22.16membership on the commission.
22.17 Subd. 8. Vacancies. If a vacancy occurs, the appointing authority shall appoint a
22.18person to serve for the remainder of the unexpired term in the same manner as the original
22.19appointment.
22.20 Subd. 9. Officers. The commission shall have a chair and vice-chair as presiding
22.21officers.
22.22 Subd. 10. Quorum; voting. Seven members of the commission constitute a
22.23quorum. A final action or recommendation may not be made unless approved by a
22.24recorded vote of at least seven members. All other actions by the commission shall be
22.25decided by a majority of the members present and voting.
22.26 Subd. 11. Compensation. Each public member shall be reimbursed for expenses
22.27as provided in section 15.0575. Compensation for legislators is as determined by the
22.28members' legislative chamber.
22.29 Sec. 5. [3D.04] STAFF.
22.30The Legislative Coordinating Commission shall provide staff and administrative
22.31services for the commission.
22.32 Sec. 6. [3D.05] RULES.
22.33The commission may adopt rules necessary to carry out this chapter.
23.1 Sec. 7. [3D.06] AGENCY REPORT TO COMMISSION.
23.2Before September 1 of the odd-numbered year before the year in which a state
23.3agency is sunset, the agency commissioner shall report to the commission:
23.4(1) information regarding the application to the agency of the criteria in section
23.53D.10;
23.6(2) a priority-based budget for the agency;
23.7(3) an inventory of all boards, commissions, committees, and other entities related
23.8to the agency; and
23.9(4) any other information that the agency commissioner considers appropriate or that
23.10is requested by the commission.
23.11 Sec. 8. [3D.07] COMMISSION DUTIES.
23.12Before January 1 of the year in which a state agency subject to this chapter and its
23.13advisory committees are sunset, the commission shall:
23.14(1) review and take action necessary to verify the reports submitted by the agency;
23.15and
23.16(2) conduct a review of the agency based on the criteria provided in section 3D.10
23.17and prepare a written report.
23.18 Sec. 9. [3D.08] PUBLIC HEARINGS.
23.19Before February 1 of the year a state agency subject to this chapter and its advisory
23.20committees are sunset, the commission shall conduct public hearings concerning but not
23.21limited to the application to the agency of the criteria provided in section 3D.10.
23.22 Sec. 10. [3D.09] COMMISSION REPORT.
23.23By February 1 of each even-numbered year, the commission shall present to the
23.24legislature and the governor a report on the agencies and advisory committees reviewed.
23.25In the report the commission shall include:
23.26(1) its findings regarding the criteria prescribed by section 3D.10;
23.27(2) its recommendations based on the matters prescribed by section 3D.11; and
23.28(3) other information the commission considers necessary for a complete review
23.29of the agency.
23.30 Sec. 11. [3D.10] CRITERIA FOR REVIEW.
23.31The commission and its staff shall consider the following criteria in determining
23.32whether a public need exists for the continuation of a state agency or its advisory
24.1committees or for the performance of the functions of the agency or its advisory
24.2committees:
24.3(1) the efficiency and effectiveness with which the agency or the advisory committee
24.4operates;
24.5(2) an identification of the mission, goals, and objectives intended for the agency or
24.6advisory committee and of the problem or need that the agency or advisory committee
24.7was intended to address and the extent to which the mission, goals, and objectives have
24.8been achieved and the problem or need has been addressed;
24.9(3) an identification of any activities of the agency in addition to those granted by
24.10statute and of the authority for those activities and the extent to which those activities
24.11are needed;
24.12(4) an assessment of authority of the agency relating to fees, inspections,
24.13enforcement, and penalties;
24.14(5) whether less restrictive or alternative methods of performing any function that
24.15the agency performs could adequately protect or provide service to the public;
24.16(6) the extent to which the jurisdiction of the agency and the programs administered
24.17by the agency overlap or duplicate those of other agencies, the extent to which the agency
24.18coordinates with those agencies, and the extent to which the programs administered by the
24.19agency can be consolidated with the programs of other state agencies;
24.20(7) the promptness and effectiveness with which the agency addresses complaints
24.21concerning entities or other persons affected by the agency, including an assessment of the
24.22agency's administrative hearings process;
24.23(8) an assessment of the agency's rulemaking process and the extent to which the
24.24agency has encouraged participation by the public in making its rules and decisions and
24.25the extent to which the public participation has resulted in rules that benefit the public;
24.26(9) the extent to which the agency has complied with federal and state laws and
24.27applicable rules regarding equality of employment opportunity and the rights and privacy
24.28of individuals, and state law and applicable rules of any state agency regarding purchasing
24.29guidelines and programs for historically underutilized businesses;
24.30(10) the extent to which the agency issues and enforces rules relating to potential
24.31conflicts of interest of its employees;
24.32(11) the extent to which the agency complies with chapter 13 and follows records
24.33management practices that enable the agency to respond efficiently to requests for public
24.34information; and
24.35(12) the effect of federal intervention or loss of federal funds if the agency is
24.36abolished.
25.1 Sec. 12. [3D.11] RECOMMENDATIONS.
25.2(a) In its report on a state agency, the commission shall:
25.3(1) make recommendations on the abolition, continuation, or reorganization of each
25.4affected state agency and its advisory committees and on the need for the performance of
25.5the functions of the agency and its advisory committees;
25.6(2) make recommendations on the consolidation, transfer, or reorganization of
25.7programs within state agencies not under review when the programs duplicate functions
25.8performed in agencies under review; and
25.9(3) make recommendations to improve the operations of the agency, its policy body,
25.10and its advisory committees, including management recommendations that do not require
25.11a change in the agency's enabling statute.
25.12(b) The commission shall include the estimated fiscal impact of its recommendations
25.13and may recommend appropriation levels for certain programs to improve the operations
25.14of the state agency.
25.15(c) The commission shall have drafts of legislation prepared to carry out the
25.16commission's recommendations under this section, including legislation necessary
25.17to continue the existence of agencies that would otherwise sunset if the commission
25.18recommends continuation of an agency.
25.19(d) After the legislature acts on the report under section 3D.09, the commission shall
25.20present to the legislative auditor the commission's recommendations that do not require
25.21a statutory change to be put into effect. Subject to the legislative audit commission's
25.22approval, the legislative auditor may examine the recommendations and include as part
25.23of the next audit of the agency a report on whether the agency has implemented the
25.24recommendations and, if so, in what manner.
25.25 Sec. 13. [3D.12] MONITORING OF RECOMMENDATIONS.
25.26During each legislative session, the staff of the commission shall monitor legislation
25.27affecting agencies that have undergone sunset review and shall periodically report
25.28to the members of the commission on proposed changes that would modify prior
25.29recommendations of the commission.
25.30 Sec. 14. [3D.13] REVIEW OF ADVISORY COMMITTEES.
25.31An advisory committee, the primary function of which is to advise a particular state
25.32agency, is subject to sunset on the date set for sunset of the agency unless the advisory
25.33committee is expressly continued by law.
26.1 Sec. 15. [3D.14] CONTINUATION BY LAW.
26.2During the regular session immediately before the sunset of a state agency or an
26.3advisory committee that is subject to this chapter, the legislature may enact legislation
26.4to continue the agency or advisory committee for a period not to exceed 12 years. This
26.5chapter does not prohibit the legislature from:
26.6(1) terminating a state agency or advisory committee subject to this chapter at a date
26.7earlier than that provided in this chapter; or
26.8(2) considering any other legislation relative to a state agency or advisory committee
26.9subject to this chapter.
26.10 Sec. 16. [3D.15] PROCEDURE AFTER TERMINATION.
26.11 Subdivision 1. Termination. Unless otherwise provided by law:
26.12(1) if after sunset review a state agency is abolished, the agency may continue in
26.13existence until June 30 of the following year to conclude its business;
26.14(2) abolishment does not reduce or otherwise limit the powers and authority of the
26.15state agency during the concluding year;
26.16(3) a state agency is terminated and shall cease all activities at the expiration of
26.17the one-year period; and
26.18(4) all rules that have been adopted by the state agency expire at the expiration of
26.19the one-year period.
26.20 Subd. 2. Funds of abolished agency or advisory committee. (a) Any unobligated
26.21and unexpended appropriations of an abolished agency or advisory committee lapse on
26.22June 30 of the year after abolishment.
26.23(b) Except as provided by subdivision 4 or as otherwise provided by law, all money
26.24in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
26.25year after abolishment is transferred to the general fund. The part of the law dedicating
26.26the money to a specific fund of an abolished agency becomes void on June 30 of the year
26.27after abolishment.
26.28 Subd. 3. Property and records of abolished agency or advisory committee.
26.29Unless the governor designates an appropriate state agency as prescribed by subdivision 4,
26.30property and records in the custody of an abolished state agency or advisory committee
26.31on June 30 of the year after abolishment must be transferred to the commissioner of
26.32administration. If the governor designates an appropriate state agency, the property and
26.33records must be transferred to the designated state agency.
26.34 Subd. 4. Continuing obligations. (a) The legislature recognizes the state's
26.35continuing obligation to pay bonded indebtedness and all other obligations, including
27.1lease, contract, and other written obligations, incurred by a state agency or advisory
27.2committee abolished under this chapter, and this chapter does not impair or impede the
27.3payment of bonded indebtedness and all other obligations, including lease, contract, and
27.4other written obligations, in accordance with their terms. If an abolished state agency or
27.5advisory committee has outstanding bonded indebtedness or other outstanding obligations,
27.6including lease, contract, and other written obligations, the bonds and all other obligations,
27.7including lease, contract, and other written obligations, remain valid and enforceable in
27.8accordance with their terms and subject to all applicable terms and conditions of the laws
27.9and proceedings authorizing the bonds and all other obligations, including lease, contract,
27.10and other written obligations.
27.11(b) The governor shall designate an appropriate state agency that shall continue to
27.12carry out all covenants contained in the bonds and in all other obligations, including lease,
27.13contract, and other written obligations, and the proceedings authorizing them, including
27.14the issuance of bonds, and the performance of all other obligations, including lease,
27.15contract, and other written obligations, to complete the construction of projects or the
27.16performance of other obligations, including lease, contract, and other written obligations.
27.17(c) The designated state agency shall provide payment from the sources of payment
27.18of the bonds in accordance with the terms of the bonds and shall provide payment from
27.19the sources of payment of all other obligations, including lease, contract, and other written
27.20obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
27.21until the bonds and interest on the bonds are paid in full and all other obligations,
27.22including lease, contract, and other written obligations, are performed and paid in full.
27.23If the proceedings so provide, all funds established by laws or proceedings authorizing
27.24the bonds or authorizing other obligations, including lease, contract, and other written
27.25obligations, must remain with the comptroller or the previously designated trustees. If the
27.26proceedings do not provide that the funds remain with the comptroller or the previously
27.27designated trustees, the funds must be transferred to the designated state agency.
27.28 Sec. 17. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
27.29The commission may request the assistance of state agencies and officers. When
27.30assistance is requested, a state agency or officer shall assist the commission. In carrying
27.31out its functions under this chapter, the commission or its designated staff member may
27.32inspect the records, documents, and files of any state agency.
27.33 Sec. 18. [3D.17] RELOCATION OF EMPLOYEES.
28.1If an employee is displaced because a state agency or its advisory committee is
28.2abolished or reorganized, the state agency shall make a reasonable effort to relocate the
28.3displaced employee.
28.4 Sec. 19. [3D.18] SAVING PROVISION.
28.5Except as otherwise expressly provided, abolition of a state agency does not affect
28.6rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
28.7arose, or proceedings that were begun before the effective date of the abolition.
28.8 Sec. 20. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
28.9AGENCY.
28.10Each bill filed in a house of the legislature that would create a new state agency or
28.11a new advisory committee to a state agency shall be reviewed by the commission. The
28.12commission shall review the bill to determine if:
28.13(1) the proposed functions of the agency or committee could be administered by one
28.14or more existing state agencies or advisory committees;
28.15(2) the form of regulation, if any, proposed by the bill is the least restrictive form of
28.16regulation that will adequately protect the public;
28.17(3) the bill provides for adequate public input regarding any regulatory function
28.18proposed by the bill; and
28.19(4) the bill provides for adequate protection against conflicts of interest within
28.20the agency or committee.
28.21 Sec. 21. [3D.20] GIFTS AND GRANTS.
28.22The commission may accept gifts, grants, and donations from any organization
28.23described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding
28.24any activity under this chapter. All gifts, grants, and donations must be accepted in an
28.25open meeting by a majority of the voting members of the commission and reported in the
28.26public record of the commission with the name of the donor and purpose of the gift, grant,
28.27or donation. Money received under this section is appropriated to the commission.
28.28 Sec. 22. [3D.21] EXPIRATION.
28.29 Subdivision 1. Group 1. The following agencies are sunset and expire on June
28.3030, 2012: Department of Health, Department of Human Rights, Department of Human
28.31Services, all health-related licensing boards listed in section 214.01, Council on Affairs
28.32of Chicano/Latino People, Council on Black Minnesotans, Council on Asian-Pacific
29.1Minnesotans, Indian Affairs Council, Council on Disabilities, and all advisory groups
29.2associated with these agencies.
29.3 Subd. 2. Group 2. The following agencies are sunset and expire on June 30, 2014:
29.4Department of Education, Board of Teaching, Minnesota Office of Higher Education, and
29.5all advisory groups associated with these agencies.
29.6 Subd. 3. Group 3. The following agencies are sunset and expire on June 30, 2016:
29.7Department of Commerce, Department of Employment and Economic Development,
29.8Department of Labor and Industry, all non-health-related licensing boards listed in
29.9section 214.01 except as otherwise provided in this section, Explore Minnesota Tourism,
29.10Public Utilities Commission, Iron Range Resources and Rehabilitation Board, Bureau of
29.11Mediation Services, Combative Sports Commission, Amateur Sports Commission, and all
29.12advisory groups associated with these agencies.
29.13 Subd. 4. Group 4. The following agencies are sunset and expire on June 30, 2018:
29.14Department of Corrections, Department of Public Safety, Department of Transportation,
29.15Peace Officer Standards and Training Board, Corrections Ombudsman, and all advisory
29.16groups associated with these agencies.
29.17 Subd. 5. Group 5. The following agencies are sunset and expire on June 30, 2020:
29.18Department of Agriculture, Department of Natural Resources, Pollution Control Agency,
29.19Board of Animal Health, Board of Water and Soil Resources, and all advisory groups
29.20associated with these agencies.
29.21 Subd. 6. Group 6. The following agencies are sunset and expire on June 30, 2022:
29.22Department of Administration, Department of Management and Budget, Department of
29.23Military Affairs, Department of Revenue, Department of Veterans Affairs, Arts Board,
29.24Minnesota Zoo, Office of Administrative Hearings, Campaign Finance and Public
29.25Disclosure Board, Capitol Area Architectural and Planning Board, Office of Enterprise
29.26Technology, Minnesota Racing Commission, and all advisory groups associated with
29.27these agencies.
29.28 Subd. 7. Continuation. Following sunset review of an agency, the legislature may
29.29act within the same legislative session in which the sunset report was received on Sunset
29.30Advisory Commission recommendations to continue or reorganize the agency.
29.31 Subd. 8. Other groups. The commission may review, under the criteria in
29.32section 3D.10, and propose to the legislature an expiration date for any agency, board,
29.33commission, or program not listed in this section.
29.34 Sec. 23. Minnesota Statutes 2010, section 6.48, is amended to read:
29.356.48 EXAMINATION OF COUNTIES; COST, FEES.
30.1(a) All the powers and duties conferred and imposed upon the state auditor shall
30.2be exercised and performed by the state auditor in respect to the offices, institutions,
30.3public property, and improvements of several counties of the state. At least once in each
30.4year, if funds and personnel permit, the state auditor may visit, without previous notice,
30.5each county and make a thorough examination of all accounts and records relating to the
30.6receipt and disbursement of the public funds and the custody of the public funds and
30.7other property. If the audit is performed by a private certified public accountant, the state
30.8auditor may require additional information from the private certified public accountant as
30.9the state auditor deems in the public interest. The state auditor may accept the audit or
30.10make additional examinations as the state auditor deems to be in the public interest. The
30.11state auditor shall prescribe and install systems of accounts and financial reports that shall
30.12be uniform, so far as practicable, for the same class of offices. A copy of the report of
30.13such examination shall be filed and be subject to public inspection in the office of the state
30.14auditor and another copy in the office of the auditor of the county thus examined. The state
30.15auditor may accept the records and audit, or any part thereof, of the Department of Human
30.16Services in lieu of examination of the county social welfare funds, if such audit has been
30.17made within any period covered by the state auditor's audit of the other records of the
30.18county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
30.19in any office of such county, such report shall be filed with the county attorney of the
30.20county, and the county attorney shall institute such civil and criminal proceedings as the
30.21law and the protection of the public interests shall require.
30.22(b) The county receiving any examination shall pay to the state general fund,
30.23notwithstanding the provisions of section16A.125 , the total cost and expenses of such
30.24examinations, including the salaries paid to the examiners while actually engaged in
30.25making such examination. The state auditor on deeming it advisable may bill counties,
30.26having a population of 200,000 or over, monthly for services rendered and the officials
30.27responsible for approving and paying claims shall cause said bill to be promptly paid. The
30.28general fund shall be credited with all collections made for any such examinations.
30.29(c) Notwithstanding paragraph (a), a county may provide for an audit to be performed
30.30by a certified public accountant firm meeting the requirements of section 326A.05.
30.31A county must notify the state auditor before August 1 of the even-numbered year
30.32immediately preceding the year in which the county intends to have an audit performed by
30.33a certified public accounting firm. A county currently using a certified public accounting
30.34firm must notify the state auditor before August 1 of the even-numbered year immediately
30.35preceding the year in which the county intends for the state auditor to audit the county.
30.36The audit performed under this paragraph must meet the standards and be in the form
31.1required by the state auditor. The state auditor may require additional information from
31.2the certified public accountant firm as the state auditor deems in the public interest, but the
31.3state auditor must accept the audit unless the state auditor determines that it does not meet
31.4recognized industry auditing standards or is not in the form required by the state auditor.
31.5 Sec. 24. Minnesota Statutes 2010, section 15.057, is amended to read:
31.615.057 PUBLICITY REPRESENTATIVES AND LEGISLATIVE LIAISONS.
31.7 Subdivision 1. Publicity representatives. No state department, bureau, or division,
31.8whether the same operates on funds appropriated or receipts or fees of any nature
31.9whatsoever, except the Department of Transportation, the Department of Employment
31.10and Economic Development, the Game and Fish Division, State Agricultural Society, and
31.11Explore Minnesota Tourism shall use any of such funds for the payment of the salary or
31.12expenses of a publicity representative. The head of any such department, bureau, or
31.13division shall be personally liable for funds used contrary to this provision. Thissection
31.14subdivision shall not be construed, however, as preventing any such department, bureau,
31.15or division from sending out any bulletins or other publicity required by any state law or
31.16necessary for the satisfactory conduct of the business for which such department, bureau,
31.17or division was created.
31.18 Subd. 2. Legislative liaisons. No state agency may use any money appropriated to
31.19it for the salary or expenses of an individual serving as a liaison for the legislative affairs
31.20of the agency. This subdivision does not prevent any employee of a state agency from
31.21providing information requested by legislators and providing testimony at legislative
31.22hearings.
31.23 Sec. 25. Minnesota Statutes 2010, section 15.06, subdivision 8, is amended to read:
31.24 Subd. 8. Number of deputy commissioners; no assistant commissioners.Unless
31.25specifically authorized by statute, other than section
43A.08, subdivision 2
31.26Department of Veterans Affairs, no department or agency specified in subdivision 1 shall
31.27have more than one deputy commissioner. Except for the Department of Veterans Affairs,
31.28no department or agency specified in subdivision 1 may employ an assistant commissioner.
31.29 Sec. 26. [15.062] EMPLOYEE COMPETITION FOR STATE BUSINESS.
31.30If an agency decides to seek an outside vendor to perform work currently done by
31.31state employees, the agency must permit groups of state employees to compete for the
31.32business by submitting responses to the agency's solicitation documents. Notwithstanding
31.33section 16A.127 or any other law to the contrary, no statewide or agency indirect costs
32.1may be assessed to a group of agency employees with respect to work performed under
32.2a contract awarded to a group of employees under this section. This section supersedes
32.3any provision of law preventing a state agency from entering into a contract with a state
32.4employee.
32.5 Sec. 27. [15.76] SAVI PROGRAM.
32.6 Subdivision 1. Program established. The state agency value initiative (SAVI)
32.7program is established to encourage state agencies to identify cost-effective and efficiency
32.8measures in agency programs and operations that result in cost savings for the state. All
32.9state agencies, including Minnesota State Colleges and Universities, may participate in
32.10this program.
32.11 Subd. 2. Retained savings. (a) In order to encourage innovation and creative
32.12cost savings by state employees, upon approval of the commissioner of management
32.13and budget, 50 percent of any appropriations for agency operations that remain unspent
32.14at the end of a biennium because of unanticipated innovation, efficiencies, or creative
32.15cost-savings may be carried forward and retained by the agency to fund specific agency
32.16proposals or projects. Agencies choosing to spend retained savings funds must ensure that
32.17project expenditures do not create future obligations beyond the amounts available from
32.18the retained savings. The retained savings must be used only to fund projects that directly
32.19support the agency's mission. This section does not restrict authority granted by other law
32.20to carry forward money for a different period or for different purposes.
32.21(b) This section supersedes any contrary provision of section 16A.28.
32.22 Subd. 3. Special peer review panel; review process. (a) Each participating agency
32.23must organize a peer review panel that will determine which proposal or project receives
32.24funding from the SAVI program. The peer review panel must be comprised of department
32.25employees who are credited with cost-savings initiatives and department managers. The
32.26ratio between managers and department employees must be balanced.
32.27(b) An agency may spend money for a project recommended for funding by the
32.28peer review panel after:
32.29(1) the agency has posted notice of spending for the proposed project on the agency
32.30Web site for at least 30 days; and
32.31(2) the commissioner of management and budget has approved spending money
32.32from the SAVI account for the project.
32.33(c) Before approving a project, the commissioner of management and budget
32.34must submit the request to the Legislative Advisory Commission for its review and
32.35recommendation. Upon receiving a request from the commissioner, the Legislative
33.1Advisory Commission shall post notice of the request on a legislative Web site for at least
33.230 days. Failure of the commission to make a recommendation within this 30-day period
33.3is considered a negative recommendation. A recommendation of the commission must be
33.4made at a meeting of the commission unless a written recommendation is signed by all
33.5the members entitled to vote on the item.
33.6 Subd. 4. SAVI-dedicated account. Each agency that participates in the SAVI
33.7program shall have a SAVI-dedicated account in the special revenue fund, or other
33.8appropriate fund as determined by the commissioner of management and budget, into
33.9which the agency's savings are deposited. The agency will manage and review projects
33.10that are funded from this account. Money in the account is appropriated to the participating
33.11agency for purposes authorized by this section.
33.12 Subd. 5. Expiration. This section expires June 30, 2018.
33.13EFFECTIVE DATE.This section is effective June 30, 2013, and first applies to
33.14funds to be carried forward from the biennium ending June 30, 2013, to the biennium
33.15beginning July 1, 2013.
33.16 Sec. 28. Minnesota Statutes 2010, section 16A.10, subdivision 1a, is amended to read:
33.17 Subd. 1a. Purpose of performance data. Performance data shall be presented in
33.18the budget proposal to:
33.19(1) provide information so that the legislature can determine the extent to which
33.20state programs and activities are successful;
33.21(2) encourage agencies to develop clear and measurable goals and objectives for
33.22their programs and activities; and
33.23(3) strengthen accountability to Minnesotans by providing a record of state
33.24government's performance in providing effective and efficient services.
33.25 Sec. 29. Minnesota Statutes 2010, section 16A.10, subdivision 1b, is amended to read:
33.26 Subd. 1b. Performance data format. (a) As part of the budget proposal, agencies
33.27shall:
33.28(1) describe the goals and objectives of each agency program and activity; and
33.29(2) present performance data that measures the performance of programs and
33.30activities in meetingprogram goals and objectives.
33.31(b) Measures reported must be outcome-based and objective, and may include
33.32indicators of outputs, efficiency,outcomes, and other measures relevant to understanding
33.33each program and activity.
34.1(c) Agencies shall present as much historical information as needed to understand
34.2major trends and shall set targets for future performance issueswhere feasible and
34.3appropriate. The information shall appropriately highlight agency performance issues that
34.4would assist legislative review and decision making.
34.5(d) For purposes of this subdivision, subdivision 1a, and section 16A.106, the terms
34.6"program" and "activity" are used in the same manner as the terms are used in state
34.7budgeting. However, the commissioner may authorize an agency to define these terms in a
34.8different manner if that allows for a more effective presentation of performance data.
34.9 Sec. 30. Minnesota Statutes 2010, section 16A.10, subdivision 1c, is amended to read:
34.10 Subd. 1c. Performance measures for change items. For each change item in the
34.11budget proposal requesting new or increased funding, the budget document must present
34.12proposed performance measures that can be used to determine if the new or increased
34.13funding is accomplishing its goals. To the extent possible, each budget change item
34.14must identify relevant Minnesota Milestones and other statewide goals and indicators
34.15related to the proposed initiative.The commissioner must report to the Subcommittee on
34.16Government Accountability established under section
3.885, subdivision 10, regarding the
34.17format to be used for the presentation and selection of Minnesota Milestones and other
34.18statewide goals and indicators.
34.19 Sec. 31. Minnesota Statutes 2010, section 16A.103, subdivision 1a, is amended to read:
34.20 Subd. 1a. Forecast parameters. The forecast must assume the continuation of
34.21current laws and reasonable estimates of projected growth in the national and state
34.22economies and affected populations. Revenue must be estimated for all sources provided
34.23for in current law. Expenditures must be estimated for all obligations imposed by law and
34.24those projected to occur as a result of variables outside the control of the legislature.
34.25Expenditures for the current biennium must be based on actual appropriations or, for
34.26forecasted programs, the amount needed to fund the formula in law. The base for
34.27expenditures projections for the next biennium is the amount appropriated in the second
34.28year of the current biennium, except as provided by other law, or, for forecasted programs,
34.29the amount needed to fund the formula in law. Expenditure estimates must not include an
34.30allowance for inflation.
34.31 Sec. 32. [16A.106] ZERO-BASED BUDGETING PRINCIPLES.
34.32(a) The detailed budget presented to the legislature must include:
35.1(1) a description of each budget activity for which the agency or entity receives
35.2an appropriation in the current biennium or for which the agency or entity requests an
35.3appropriation in the next biennium;
35.4(2) for each budget activity, three alternative funding levels or alternative ways of
35.5performing the budget activity, at least one of which is less than the previous biennium's
35.6actual expenditures for that budget activity, a summary of the priorities that would be
35.7accomplished within each level compared to a zero budget, and the additional increments
35.8of value that would be added by the higher funding levels compared to what would be
35.9accomplished if there were no funding for the activity; and
35.10(3) for each budget activity, performance data as specified in section 16A.10,
35.11subdivision 1b, the predicted effect of the three alternative funding levels on future
35.12performance, and also one or more measures of cost efficiency and effectiveness of
35.13program delivery, which must include comparisons to other states or entities with similar
35.14programs.
35.15(b) The commissioner's budget preparation guidelines and instructions must contain
35.16requirements, deadlines, and technical assistance to facilitate implementation of this
35.17section. After consultation with the legislative commission on planning and fiscal policy,
35.18the commissioner's instructions may establish parameters for the three alternative funding
35.19levels required in paragraph (a), clause (3).
35.20(c) The governor's recommendations must prioritize the budget activities within an
35.21agency or program area. To the extent activities in more than one agency or program area
35.22are meeting the same goals, the recommendations must prioritize budget activities across
35.23agencies or programs with the same goals, and this prioritization must include agencies or
35.24programs not subject to zero-based budgeting principles that biennium.
35.25(d) Expenditures for debt service under section 16A.641, subdivision 10, are not
35.26subject to zero-based budgeting principles.
35.27EFFECTIVE DATE.(a) The zero-based budgeting principles in this section first
35.28apply to the following budget proposals for the biennium beginning July 1, 2013:
35.29(1) legislative branch;
35.30(2) judicial branch;
35.31(3) Minnesota State Colleges and Universities system; and
35.32(4) approximately half of expenditure programs in the executive branch, designated
35.33by the governor, in consultation with the chairs and lead minority members of the senate
35.34Finance Committee and the house of representatives Ways and Means Committee.
35.35(b) The zero-based budgeting principles in this section apply to all budget proposals
35.36for the biennium beginning July 1, 2015, and after.
36.1 Sec. 33. Minnesota Statutes 2010, section 16A.11, subdivision 3, is amended to read:
36.2 Subd. 3. Part two: detailed budget. (a) Part two of the budget, the detailed budget
36.3estimates both of expenditures and revenues, must contain any statements on the financial
36.4plan which the governor believes desirable or which may be required by the legislature.
36.5The detailed estimates shall include the governor's budget arranged in tabular form.
36.6(b) For programs designated for the zero-based budgeting principles under section
36.716A.106, the budget must be prepared according to the requirements of that section.
36.8(c) For programs not designated for zero-based budgeting principles under section
36.916A.106, tables listing expenditures for the next biennium must show the appropriation
36.10base for each year as defined in section 16A.103, subdivision 1c.The appropriation base
36.11is the amount appropriated for the second year of the current biennium. The tables must
36.12separately show any adjustments to the base required by current law or policies of the
36.13commissioner of management and budget. For forecasted programs, the tables must also
36.14show the amount of the forecast adjustments, based on the most recent forecast prepared
36.15by the commissioner of management and budget under section16A.103 . For all programs,
36.16the tables must show the amount of appropriation changes recommended by the governor,
36.17after adjustments to the base and forecast adjustments, and the total recommendation of
36.18the governor for that year.
36.19(c) (d) The detailed estimates must include a separate line listing the total cost of
36.20professional and technical service contracts for the prior biennium and the projected costs
36.21of those contracts for the current and upcoming biennium. They must also include a
36.22summary of the personnel employed by the agency, reflected as full-time equivalent
36.23positions.
36.24(d) (e) The detailed estimates for internal service funds must include the number of
36.25full-time equivalents by program; detail on any loans from the general fund, including
36.26dollar amounts by program; proposed investments in technology or equipment of $100,000
36.27or more; an explanation of any operating losses or increases in retained earnings; and a
36.28history of the rates that have been charged, with an explanation of any rate changes and
36.29the impact of the rate changes on affected agencies.
36.30 Sec. 34. Minnesota Statutes 2010, section 16A.28, subdivision 3, is amended to read:
36.31 Subd. 3. Lapse. Any portion of any appropriation not carried forward and remaining
36.32unexpended and unencumbered at the close of a fiscal year lapses to the fund from which
36.33it was originally appropriated. Except as provided in section 15.76, any appropriation
36.34amounts not carried forward and remaining unexpended and unencumbered at the close of
36.35a biennium lapse to the fund from which the appropriation was made.
37.1EFFECTIVE DATE.This section is effective June 30, 2013.
37.2 Sec. 35. [16A.90] EMPLOYEE GAINSHARING SYSTEM.
37.3The commissioner shall establish a program to provide onetime bonus compensation
37.4to state employees for efforts made to reduce the costs of operating state government or for
37.5ways of providing better or more efficient state services. The commissioner may make a
37.6onetime award to an employee or group of employees whose suggestion or involvement in
37.7a project is determined by the commissioner to have resulted in documented cost-savings
37.8to the state. The maximum award is ten percent of the documented savings in the
37.9first fiscal year in which the savings are realized. The award must be paid from the
37.10appropriation to which the savings accrued.
37.11 Sec. 36. [16A.93] MINNESOTA PAY FOR PERFORMANCE ACT.
37.12Sections 16A.93 to 16A.96 may be cited as the "Minnesota Pay for Performance
37.13Act of 2011."
37.14EFFECTIVE DATE.This section is effective the day following final enactment.
37.15 Sec. 37. [16A.94] PROGRAM.
37.16 Subdivision 1. Pilot program established. The commissioner shall implement a
37.17pilot program to demonstrate the feasibility and desirability of using state appropriation
37.18bonds to pay for certain services based on performance and outcomes for the people served.
37.19 Subd. 2. Oversight committee. (a) The commissioner shall appoint an oversight
37.20committee to:
37.21(1) identify criteria to select one or more services to be included in the pilot program;
37.22(2) identify the conditions of performance and desired outcomes for the people
37.23served by each service selected;
37.24(3) identify criteria to evaluate whether a service has met the performance
37.25conditions; and
37.26(4) provide any other advice or assistance requested by the commissioner.
37.27(b) The oversight committee must include the commissioners of the Departments
37.28of Human Services, Employment and Economic Development, and Administration, or
37.29their designees; a representative of a nonprofit organization that has participated in a
37.30pay-for-performance program; and any other person or organization that the commissioner
37.31determines would be of assistance in developing and implementing the pilot program.
37.32 Subd. 3. Contracts. The commissioner and the commissioner of the agency with
37.33a service to be provided through the pilot program shall enter into a contract with the
38.1selected provider. The contract must specify the service to be provided, the time frame in
38.2which it is to be provided, the outcome required for payment, and any other terms deemed
38.3necessary or convenient for implementation of the pilot program. The commissioner
38.4shall pay a provider that has met the terms and conditions of a contract with money
38.5appropriated to the commissioner from the special appropriation bond proceeds account
38.6established in section 16A.96. At a minimum, before the commissioner pays a provider,
38.7the commissioner must determine that the state's return on investment is positive.
38.8 Subd. 4. Return on investment calculation. The commissioner, in consultation
38.9with the oversight committee, must establish the method and data required for calculating
38.10the state's return on investment. The data at a minimum must include:
38.11(1) state income taxes and any other revenues collected in the year after the service
38.12was provided that would not have been collected without the service; and
38.13(2) costs avoided by the state by providing the service.
38.14A positive return on investment for the state will cover the state's costs in financing
38.15and administering the pilot program through documented increased state tax revenue
38.16or cost avoidance.
38.17 Subd. 5. Report to governor and legislature. The commissioner must report to the
38.18governor and legislative committees with jurisdiction over capital investment, finance, and
38.19ways and means, and the services included in the pilot program, by January 15 of each
38.20year following a year in which the pilot program is operating. The report must describe
38.21and discuss the criteria for selection and evaluation of services to be provided through
38.22the program, the net benefits to the state of the program, the state's return on investment,
38.23the cost of the services provided by other means in the most recent past, the time frame
38.24for payment for the services, and the timing and costs for sale and issuance of the bonds
38.25authorized in section 16A.96.
38.26EFFECTIVE DATE.This section is effective the day following final enactment.
38.27 Sec. 38. [16A.96] MINNESOTA PAY FOR PERFORMANCE PROGRAM;
38.28APPROPRIATION BONDS.
38.29 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
38.30section.
38.31(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
38.32payable during a biennium from one or more of the following sources:
38.33(1) money appropriated by law in any biennium for debt service due with respect
38.34to obligations described in subdivision 2, paragraph (b);
38.35(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
39.1(3) payments received for that purpose under agreements and ancillary arrangements
39.2described in subdivision 2, paragraph (d); and
39.3(4) investment earnings on amounts in clauses (1) to (3).
39.4(c) "Debt service" means the amount payable in any biennium of principal, premium,
39.5if any, and interest on appropriation bonds.
39.6 Subd. 2. Authority. (a) Subject to the limitations of this subdivision, the
39.7commissioner of management and budget may sell and issue appropriation bonds of the
39.8state under this section for the purposes of the Minnesota pay for performance program
39.9established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to
39.10a special appropriation bond proceeds account in the state treasury. Net income from
39.11investment of the proceeds, as estimated by the commissioner, must be credited to the
39.12special appropriation bond proceeds account.
39.13(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
39.14the commissioner, are necessary to provide sufficient funds for achieving the purposes
39.15authorized as provided under paragraph (a), and pay debt service, pay costs of issuance,
39.16make deposits to reserve funds, pay the costs of credit enhancement, or make payments
39.17under other agreements entered into under paragraph (d); provided, however, that bonds
39.18issued and unpaid shall not exceed $20,000,000 in principal amount, excluding refunding
39.19bonds sold and issued under subdivision 4. During the biennium ending June 30, 2013,
39.20the commissioner may sell and issue bonds only in an amount that the commissioner
39.21determines will result in principal and interest payments less than the amount of savings to
39.22be generated through pay-for-performance contracts under section 16A.94. For programs
39.23achieving savings under a pay-for-performance contract, the commissioner must reduce
39.24general fund appropriations by at least the amount of principal and interest payments on
39.25bonds issued under this section.
39.26(c) Appropriation bonds may be issued in one or more series on the terms and
39.27conditions the commissioner determines to be in the best interests of the state, but the term
39.28on any series of bonds may not exceed 20 years.
39.29(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
39.30time thereafter, so long as the appropriation bonds are outstanding, the commissioner
39.31may enter into agreements and ancillary arrangements relating to the appropriation
39.32bonds, including but not limited to trust indentures, liquidity facilities, remarketing or
39.33dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
39.34reimbursement agreements, indexing agreements, or interest exchange agreements. Any
39.35payments made or received according to the agreement or ancillary arrangement shall be
39.36made from or deposited as provided in the agreement or ancillary arrangement. The
40.1determination of the commissioner included in an interest exchange agreement that the
40.2agreement relates to an appropriation bond shall be conclusive.
40.3 Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form
40.4of bonds, notes, or other similar instruments, and in the manner provided in section
40.516A.672. In the event that any provision of section 16A.672 conflicts with this section,
40.6this section shall control.
40.7(b) Every appropriation bond shall include a conspicuous statement of the limitation
40.8established in subdivision 6.
40.9(c) Appropriation bonds may be sold at either public or private sale upon such terms
40.10as the commissioner shall determine are not inconsistent with this section and may be sold
40.11at any price or percentage of par value. Any bid received may be rejected.
40.12(d) Appropriation bonds may bear interest at a fixed or variable rate.
40.13 Subd. 4. Refunding bonds. The commissioner from time to time may issue
40.14appropriation bonds for the purpose of refunding any appropriation bonds then
40.15outstanding, including the payment of any redemption premiums on the bonds, any
40.16interest accrued or to accrue to the redemption date, and costs related to the issuance
40.17and sale of the refunding bonds. The proceeds of any refunding bonds may, in the
40.18discretion of the commissioner, be applied to the purchase or payment at maturity of the
40.19appropriation bonds to be refunded, to the redemption of the outstanding bonds on any
40.20redemption date, or to pay interest on the refunding bonds and may, pending application,
40.21be placed in escrow to be applied to the purchase, payment, retirement, or redemption.
40.22Any escrowed proceeds, pending such use, may be invested and reinvested in obligations
40.23that are authorized investments under section 11A.24. The income earned or realized on
40.24the investment may also be applied to the payment of the bonds to be refunded or interest
40.25or premiums on the refunded bonds, or to pay interest on the refunding bonds. After
40.26the terms of the escrow have been fully satisfied, any balance of the proceeds and any
40.27investment income may be returned to the general fund or, if applicable, the appropriation
40.28bond proceeds account for use in any lawful manner. All refunding bonds issued under
40.29this subdivision must be prepared, executed, delivered, and secured by appropriations in
40.30the same manner as the bonds to be refunded.
40.31 Subd. 5. Appropriation bonds as legal investments. Any of the following entities
40.32may legally invest any sinking funds, money, or other funds belonging to them or under
40.33their control in any appropriation bonds issued under this section:
40.34(1) the state, the investment board, public officers, municipal corporations, political
40.35subdivisions, and public bodies;
41.1(2) banks and bankers, savings and loan associations, credit unions, trust companies,
41.2savings banks and institutions, investment companies, insurance companies, insurance
41.3associations, and other persons carrying on a banking or insurance business; and
41.4(3) personal representatives, guardians, trustees, and other fiduciaries.
41.5 Subd. 6. No full faith and credit; state not required to make appropriations.
41.6The appropriation bonds are not public debt of the state, and the full faith, credit, and
41.7taxing powers of the state are not pledged to the payment of the appropriation bonds or to
41.8any payment that the state agrees to make under this section. Appropriation bonds shall
41.9not be obligations paid directly, in whole or in part, from a tax of statewide application
41.10on any class of property, income, transaction, or privilege. Appropriation bonds shall be
41.11payable in each fiscal year only from amounts that the legislature may appropriate for debt
41.12service for any fiscal year, provided that nothing in this section shall be construed to
41.13require the state to appropriate funds sufficient to make debt service payments with respect
41.14to the bonds in any fiscal year.
41.15 Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds and
41.16interest credited to the special appropriation bond proceeds account are appropriated to the
41.17commissioner for payment of contract obligations under the pay for performance program,
41.18as permitted by state and federal law, and nonsalary expenses incurred in conjunction
41.19with the sale of the appropriation bonds.
41.20 Subd. 8. Appropriation for debt service. The amount needed to pay principal and
41.21interest on appropriation bonds issued under this section is appropriated each year to the
41.22commissioner from the general fund subject to the repeal, unallotment under section
41.2316A.152, or cancellation otherwise pursuant to subdivision 6.
41.24EFFECTIVE DATE.This section is effective the day following final enactment.
41.25 Sec. 39. Minnesota Statutes 2010, section 16B.03, is amended to read:
41.2616B.03 APPOINTMENTS.
41.27The commissioner is authorized to appoint staff, includingtwo one deputy
41.28commissioners commissioner, in accordance with chapter 43A.
41.29 Sec. 40. [16C.075] E-VERIFY.
41.30A contract for services valued in excess of $50,000 must require certification from
41.31the vendor and any subcontractors that, as of the date services on behalf of the state of
41.32Minnesota will be performed, the vendor and all subcontractors have implemented or are
41.33in the process of implementing the federal E-Verify program for all newly hired employees
42.1in the United States who will perform work on behalf of the state of Minnesota. This
42.2section does not apply to contracts entered into by the State Board of Investment.
42.3EFFECTIVE DATE.This section is effective July 1, 2011, and applies to contracts
42.4entered into on or after that date.
42.5 Sec. 41. Minnesota Statutes 2010, section 16C.08, subdivision 2, is amended to read:
42.6 Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of
42.7a professional or technical services contract valued in excess of $5,000, it must provide
42.8the following:
42.9 (1) a description of how the proposed contract or amendment is necessary and
42.10reasonable to advance the statutory mission of the agency;
42.11 (2) a description of the agency's plan to notify firms or individuals who may be
42.12available to perform the services called for in the solicitation;
42.13 (3) a description of the performance measures or other tools, including accessibility
42.14measures if applicable, that will be used to monitor and evaluate contract performance; and
42.15 (4) an explanation detailing, if applicable, why this procurement is being pursued
42.16unilaterally by the agency and not as an enterprise procurement.
42.17 (b) In addition to paragraph (a), the agency must certify that:
42.18(1) no current state employee is able and available to perform the services called
42.19for by the contract;
42.20(2) (1) the normal competitive bidding mechanisms will not provide for adequate
42.21performance of the services;
42.22(3) (2) reasonable efforts will be made to publicize the availability of the contract
42.23to the public;
42.24(4) (3) the agency will develop and implement a written plan providing for the
42.25assignment of specific agency personnel to manage the contract, including a monitoring
42.26and liaison function, the periodic review of interim reports or other indications of past
42.27performance, and the ultimate utilization of the final product of the services;
42.28(5) (4) the agency will not allow the contractor to begin work before the contract is
42.29fully executed unless an exception under section16C.05, subdivision 2a , has been granted
42.30by the commissioner and funds are fully encumbered;
42.31(6) (5) the contract will not establish an employment relationship between the state
42.32or the agency and any persons performing under the contract; and
42.33(7) (6) in the event the results of the contract work will be carried out or continued
42.34by state employees upon completion of the contract, the contractor is required to include
42.35state employees in development and training, to the extent necessary to ensure that after
43.1completion of the contract, state employees can perform any ongoing work related to the
43.2same function; and
43.3(8) the agency will not contract out its previously eliminated jobs for four years
43.4without first considering the same former employees who are on the seniority unit layoff
43.5list who meet the minimum qualifications determined by the agency.
43.6 (c) A contract establishes an employment relationship for purposes of paragraph (b),
43.7clause(6) (5), if, under federal laws governing the distinction between an employee and
43.8an independent contractor, a person would be considered an employee.
43.9 Sec. 42. [16C.082] CONTRACTS FOR TAX-RELATED ACTIVITIES.
43.10An agency may not enter into a contract for tax fraud prevention or detection, or
43.11tax audit-related activities, that compensates a vendor based on a percentage of taxes
43.12assessed or collected.
43.13EFFECTIVE DATE.This section is effective the day following final enactment
43.14and applies to contracts entered into on or after that date.
43.15 Sec. 43. Minnesota Statutes 2010, section 16C.09, is amended to read:
43.1616C.09 PROCEDURE FOR SERVICE CONTRACTS.
43.17(a) Before entering into or approving a service contract, the commissioner must
43.18determine, at least, that:
43.19(1) no current state employee is able and available to perform the services called
43.20for by the contract;
43.21(2) (1) the work to be performed under the contract is necessary to the agency's
43.22achievement of its statutory responsibilities and there is statutory authority to enter into
43.23the contract;
43.24(3) (2) the contract will not establish an employment relationship between the state
43.25or the agency and any persons performing under the contract;
43.26(4) (3) the contractor and agents are not employees of the state, except as authorized
43.27in section 15.062;
43.28(5) (4) the contracting agency has specified a satisfactory method of evaluating and
43.29using the results of the work to be performed; and
43.30(6) (5) the combined contract and amendments will not exceed five years without
43.31specific, written approval by the commissioner according to established policy, procedures,
43.32and standards, or unless otherwise provided for by law. The term of the original contract
44.1must not exceed two years, unless the commissioner determines that a longer duration is
44.2in the best interest of the state.
44.3(b) For purposes of paragraph (a), clause (1), employees are available if qualified
44.4and:
44.5(1) are already doing the work in question; or
44.6(2) are on layoff status in classes that can do the work in question.
44.7An employee is not available if the employee is doing other work, is retired, or has decided
44.8not to do the work in question.
44.9(c) (b) This section does not apply to an agency's use of inmates pursuant to sections
44.10241.20
to
241.23 or to an agency's use of persons required by a court to provide:
44.11(1) community service; or
44.12(2) conservation or maintenance services on lands under the jurisdiction and control
44.13of the state.
44.14 Sec. 44. [16D.18] RECIPROCAL AGREEMENT.
44.15(a) The commissioner is authorized to enter into agreements with the federal
44.16Department of the Treasury that provide for offsetting state payments against federal
44.17nontax obligations. Except as provided in paragraph (d), the commissioner may charge a
44.18fee of $20 per transaction for such offsets and may collect this offset fee from the debtor
44.19by deducting it from the state payment. The agreement may provide for offsetting federal
44.20payments, as authorized by federal law, against state tax and nontax obligations, and
44.21collecting the offset cost from the debtor. The agreement shall provide that the federal
44.22Department of the Treasury may deduct a fee from each administrative offset and state
44.23payment offset. Setoffs to collect state and other entity obligations under chapters 16D,
44.24270A, 270C, and any other provision of Minnesota Statutes occur before a state payment
44.25offset. For purposes of this paragraph "administrative offset" is any offset of federal
44.26payments to collect state debts and "state payment offset" is any offset of state payments
44.27to collect federal nontax debts.
44.28(b) A debt is eligible for offset under this program if notice of intent to offset the
44.29debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if
44.30required by federal law or an agreement with the federal Department of the Treasury.
44.31When there is an agreement for scheduled payments on an account, the debtor must be
44.32sent this notice each time an additional debt is claimed.
44.33(c) The debtor shall have the time period required for notice under paragraph (b) to
44.34contest the offset. An agreement under this section must not allow for offset of payments
44.35if the debt that would be subject to the offset is being contested or if the time for appealing
45.1the determination of the debt has not yet expired. The treasury offset program agreement
45.2entered into by the state must not require federal agencies to provide different due process
45.3than the requirements under Code of Federal Regulations, title 31, section 285.6.
45.4(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner
45.5enters into a contingency fee agreement with a nonstate vendor to provide assistance
45.6under this section, the commissioner may charge a debtor a fee for the processing of state
45.7payment offsets for the recovery of federal nontax debts or the processing of federal
45.8payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
45.9and may be withheld from any refund, reimbursement, or other money held for the debtor.
45.10The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply
45.11to fees charged under this paragraph.
45.12EFFECTIVE DATE.This section is effective the day following final enactment. As
45.13soon as possible after that date, the commissioner must discuss an agreement authorized
45.14under this section with appropriate federal officials, and if an agreement is entered into,
45.15the commissioner must begin to implement it to collect debts owed to the state as soon as
45.16possible.
45.17 Sec. 45. Minnesota Statutes 2010, section 37.06, is amended to read:
45.1837.06 SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
45.19The secretary shall keep a complete record of the proceedings of the annual meetings
45.20of the State Agricultural Society and all meetings of the board of managers and any
45.21committee of the board, keep all accounts of the society other than those kept by the
45.22treasurer of the society, and perform other duties as directed by the board of managers. On
45.23or before December 31 each year, the secretary shall report to the governor for the fiscal
45.24year ending October 31 all the proceedings of the society during the current year and its
45.25financial condition as appears from its books. This report must contain a full, detailed
45.26statement of all receipts and expenditures during the year.
45.27The books and accounts of the society for the fiscal year must be examined and
45.28audited annually by an independent auditor, either a private auditor or the legislative
45.29auditor. If the audit is conducted by the legislative auditor, the cost of the examination
45.30must be paid by the society to the state and credited to the general fund.
45.31A summary of this examination, certified by thelegislative auditor, must be
45.32appended to the secretary's report, along with thelegislative auditor's recommendations
45.33and the proceedings of the first annual meeting of the society held following the secretary's
45.34report, including addresses made at the meeting as directed by the board of managers. The
46.1summary, recommendations, and proceedings must be printed in the same manner as the
46.2reports of state officers. Copies of the report must be printed annually and distributed as
46.3follows: to each society or association entitled to membership in the society, to each
46.4newspaper in the state, and the remaining copies as directed by the board of managers.
46.5 Sec. 46. Minnesota Statutes 2010, section 43A.08, subdivision 1, is amended to read:
46.6 Subdivision 1. Unclassified positions. Unclassified positions are held by employees
46.7who are:
46.8 (1) chosen by election or appointed to fill an elective office;
46.9 (2) heads of agencies required by law to be appointed by the governor or other
46.10elective officers, and the executive or administrative heads of departments, bureaus,
46.11divisions, and institutions specifically established by law in the unclassified service;
46.12 (3) deputyand assistant agency heads and one confidential secretary in the agencies
46.13listed insubdivision 1a and in the Office of Strategic and Long-Range Planning section
46.1415.06, subdivision 1;
46.15 (4) the confidential secretary to each of the elective officers of this state and, for the
46.16secretary of state and state auditor, an additional deputy, clerk, or employee;
46.17 (5) intermittent help employed by the commissioner of public safety to assist in
46.18the issuance of vehicle licenses;
46.19 (6) employees in the offices of the governor and of the lieutenant governor and one
46.20confidential employee for the governor in the Office of the Adjutant General;
46.21 (7) employees of the Washington, D.C., office of the state of Minnesota;
46.22 (8) employees of the legislature and of legislative committees or commissions;
46.23provided that employees of the Legislative Audit Commission, except for the legislative
46.24auditor, the deputy legislative auditors, and their confidential secretaries, shall be
46.25employees in the classified service;
46.26 (9) presidents, vice-presidents, deans, other managers and professionals in
46.27academic and academic support programs, administrative or service faculty, teachers,
46.28research assistants, and student employees eligible under terms of the federal Economic
46.29Opportunity Act work study program in the Perpich Center for Arts Education and the
46.30Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance
46.31employees, or any professional or managerial employee performing duties in connection
46.32with the business administration of these institutions;
46.33 (10) officers and enlisted persons in the National Guard;
46.34 (11) attorneys, legal assistants, and three confidential employees appointed by the
46.35attorney general or employed with the attorney general's authorization;
47.1 (12) judges and all employees of the judicial branch, referees, receivers, jurors, and
47.2notaries public, except referees and adjusters employed by the Department of Labor
47.3and Industry;
47.4 (13) members of the State Patrol; provided that selection and appointment of State
47.5Patrol troopers must be made in accordance with applicable laws governing the classified
47.6service;
47.7 (14) examination monitors and intermittent training instructors employed by the
47.8Departments of Management and Budget and Commerce and by professional examining
47.9boards and intermittent staff employed by the technical colleges for the administration of
47.10practical skills tests and for the staging of instructional demonstrations;
47.11 (15) student workers;
47.12 (16) executive directors or executive secretaries appointed by and reporting to any
47.13policy-making board or commission established by statute;
47.14 (17) employees unclassified pursuant to other statutory authority;
47.15 (18) intermittent help employed by the commissioner of agriculture to perform
47.16duties relating to pesticides, fertilizer, and seed regulation;
47.17 (19) the administrators and the deputy administrators at the State Academies for the
47.18Deaf and the Blind; and
47.19 (20) chief executive officers in the Department of Human Services.
47.20 Sec. 47. Minnesota Statutes 2010, section 43A.20, is amended to read:
47.2143A.20 PERFORMANCE APPRAISAL AND PAY.
47.22(a) The commissioner shall design and maintain a performance appraisal system
47.23under which each employee in the civil service in the executive branch shall be evaluated
47.24and counseled on work performance at least once a year. The performance appraisal
47.25system must include three components:
47.26(1) evaluation of the individual employee's performance relative to goals for that
47.27individual, which must constitute a majority of the overall determination of an employee's
47.28performance;
47.29(2) evaluation of the performance of the individual employee's program, defined by
47.30the agency head, toward meeting targeted outcomes for the program; and
47.31(3) evaluation of the performance of the entire agency toward meeting targeted
47.32outcomes for the agency.
47.33(b) Individual pay increases for all employeesnot represented by an exclusive
47.34representative certified pursuant to chapter 179A shall be based on the evaluation
47.35evaluations required by paragraph (a) and other factors consistent with paragraph (a)
48.1that the commissioner negotiates in collective bargaining agreements or includes in the
48.2plans developed pursuant to section43A.18 . Collective bargaining agreements entered
48.3into pursuant to chapter 179A may, and are encouraged to, provide for pay increases
48.4based on employee work performance. An employee in the executive branch may not
48.5receive an increase in salary or wages based on cost of living or progression to another
48.6step or lane unless the employee's supervisor certifies that the employee's performance
48.7has been satisfactory.
48.8(c) This section does not apply to faculty and administrators in the Minnesota State
48.9Colleges and University system.
48.10(d) This section supersedes any conflicting provision of other law.
48.11EFFECTIVE DATE.This section is effective July 1, 2011. For employees covered
48.12by a collective bargaining agreement, this section applies to collective bargaining
48.13agreements entered into on or after that date.
48.14 Sec. 48. [43A.347] REDUCTION IN STATE WORK FORCE.
48.15 Subdivision 1. Required reduction. (a) The number of full-time equivalent
48.16employees employed in the executive branch, and the costs directly associated with
48.17employing those persons, must be reduced by at least 15 percent by June 30, 2015, and
48.18thereafter, compared to the number of full-time equivalent positions and the costs directly
48.19associated with those positions on January 1, 2011.
48.20(b) An appointing authority may use any or all of the following to achieve this
48.21requirement: attrition, a hard hiring freeze, furloughs, and layoffs.
48.22(c) For purposes of this section:
48.23(1) "costs directly associated" with employing people means the cost of salaries and
48.24benefits, including the costs of employer contributions to public pension plans; and
48.25(2) "executive branch" does not include the Minnesota State Colleges and
48.26Universities, the Department of Military Affairs, or the Department of Veterans Affairs.
48.27 Subd. 2. Savings. Savings resulting from implementation of this section must
48.28cancel back to the fund in which the savings occurred.
48.29 Subd. 3. Application of Public Employment Labor Relations Act. Unilateral
48.30implementation of this section is not an unfair labor practice under chapter 179A.
48.31 Sec. 49. Minnesota Statutes 2010, section 45.013, is amended to read:
48.3245.013 POWER TO APPOINT STAFF.
49.1The commissioner of commerce may appointfour one deputy commissioners, four
49.2assistant commissioners, and an assistant to the commissioner. Those positions, as well as
49.3that of and a confidential secretary, are in the unclassified service. The commissioner may
49.4appoint other employees necessary to carry out the duties and responsibilities entrusted to
49.5the commissioner.
49.6 Sec. 50. Minnesota Statutes 2010, section 84.01, subdivision 3, is amended to read:
49.7 Subd. 3. Employees; delegation.Subject to the provisions of Laws 1969, chapter
49.81129, and to other applicable laws The commissioner shall organize the department and
49.9employup to three assistant commissioners, each of whom shall serve at the pleasure of
49.10the commissioner in the unclassified service, one of whom shall have responsibility for
49.11coordinating and directing the planning of every division within the agency, and such other
49.12officers, employees, and agents as the commissioner may deem necessary to discharge the
49.13functions of the department, define the duties of such officers, employees, and agents and
49.14to delegate to them any of the commissioner's powers, duties, and responsibilities subject
49.15to the control of, and under the conditions prescribed by, the commissioner. Appointments
49.16to exercise delegated power shall be by written order filed with the secretary of state.
49.17 Sec. 51. Minnesota Statutes 2010, section 116.03, subdivision 1, is amended to read:
49.18 Subdivision 1. Office. (a) The office of commissioner of the Pollution Control
49.19Agency is created and is under the supervision and control of the commissioner, who is
49.20appointed by the governor under the provisions of section15.06 .
49.21(b) The commissioner may appoint a deputy commissionerand assistant
49.22commissioners who shall be in the unclassified service.
49.23(c) The commissioner shall make all decisions on behalf of the agency that are not
49.24required to be made by the agency under section116.02 .
49.25 Sec. 52. Minnesota Statutes 2010, section 116J.01, subdivision 5, is amended to read:
49.26 Subd. 5. Departmental organization. (a) The commissioner shall organize the
49.27department as provided in section15.06 .
49.28(b) The commissioner may establish divisions and offices within the department.
49.29The commissioner may employ four deputy commissioners in the unclassified service.
49.30(c) The commissioner shall:
49.31(1) employ assistants and other officers, employees, and agents that the commissioner
49.32considers necessary to discharge the functions of the commissioner's office;
50.1(2) define the duties of the officers, employees, and agents, and delegate to them any
50.2of the commissioner's powers, duties, and responsibilities, subject to the commissioner's
50.3control and under conditions prescribed by the commissioner.
50.4(d) The commissioner shall ensure that there are at least three employment and
50.5economic development officers in state offices in nonmetropolitan areas of the state who
50.6will work with local units of government on developing local employment and economic
50.7development.
50.8 Sec. 53. Minnesota Statutes 2010, section 116J.035, subdivision 4, is amended to read:
50.9 Subd. 4. Delegation of powers. The commissioner may delegate, in written orders
50.10filed with the secretary of state, any powers or duties subject to the commissioner's
50.11control to officers and employees in the department. Regardless of any other law, the
50.12commissioner may delegate the execution of specific contracts or specific types of
50.13contracts to the commissioner'sdeputies, an assistant commissioner, deputy or a program
50.14director if the delegation has been approved by the commissioner of administration and
50.15filed with the secretary of state.
50.16 Sec. 54. Minnesota Statutes 2010, section 161.1419, subdivision 8, is amended to read:
50.17 Subd. 8. Expiration. The commission expires on June 30,2012 2016.
50.18 Sec. 55. Minnesota Statutes 2010, section 174.02, subdivision 2, is amended to read:
50.19 Subd. 2. Unclassified positions. The commissioner mayestablish four positions
50.20in the unclassified service at the appoint a deputy and assistant commissioner, assistant
50.21to commissioner or and a personal secretary levels. No more than two of these positions
50.22shall be at the deputy commissioner level in the unclassified service.
50.23 Sec. 56. Minnesota Statutes 2010, section 241.01, subdivision 2, is amended to read:
50.24 Subd. 2.Deputies Deputy. The commissioner of corrections may appoint and
50.25employno more than two a deputy commissioners commissioner. The commissioner may
50.26also appoint a personal secretary, who shall serve at the commissioner's pleasure in the
50.27unclassified civil service.
50.28 Sec. 57. Minnesota Statutes 2010, section 270C.41, is amended to read:
50.29270C.41AGREEMENT WITH INTERNAL REVENUE SERVICE
50.30AGREEMENTS WITH FEDERAL GOVERNMENT.
51.1 Subdivision 1. Agreement with Internal Revenue Service. Pursuant to section
51.2270B.12
, the commissioner may enter into an agreement with the Internal Revenue
51.3Service to identify taxpayers who have refunds due from the department and liabilities
51.4owing to the Internal Revenue Service. In accordance with the procedures established in
51.5the agreement, the Internal Revenue Service may levy against the refunds to be paid by
51.6the department. For each refund levied upon, the commissioner shall first deduct from
51.7the refund a fee of $20, and then remit the refund or the amount of the levy, whichever
51.8is less, to the Internal Revenue Service. The proceeds of fees shall be deposited into the
51.9Department of Revenue recapture revolving fund under section270A.07, subdivision 1 .
51.10 Subd. 2. Reciprocal offset agreements. (a) The commissioner is authorized
51.11to enter into agreements with the federal Department of the Treasury that provide for
51.12offsetting state payments against federal nontax obligations. Except as provided in
51.13paragraph (d), the commissioner may charge a fee of $20 per transaction for such offsets
51.14and may collect this offset fee from the debtor by deducting it from the state payment.
51.15The agreement may provide for offsetting federal payments, as authorized by federal law,
51.16against state tax and nontax obligations, and collecting the offset cost from the debtor.
51.17The agreement shall provide that the federal Department of the Treasury may deduct a
51.18fee from each administrative offset and state payment offset. Setoffs to collect state and
51.19other entity obligations under chapters 16D, 270A, 270C, and any other provision of
51.20Minnesota Statutes, occur before a state payment offset. For purposes of this paragraph
51.21"administrative offset" is any offset of federal payments to collect state debts and "state
51.22payment offset" is any offset of state payments to collect federal nontax debts.
51.23(b) A debt is eligible for offset under this program if notice of intent to offset the
51.24debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if
51.25required by federal law or an agreement with the federal Department of the Treasury.
51.26When there is an agreement for scheduled payments on an account, the debtor must be
51.27sent this notice each time an additional debt is claimed.
51.28(c) The debtor shall have the time period required for notice under paragraph (b) to
51.29contest the offset. An agreement under this section must not allow for offset of payments
51.30if the debt that would be subject to the offset is being contested or if the time for appealing
51.31the determination of the debt has not yet expired. The treasury offset program agreement
51.32entered into by the state must not require federal agencies to provide different due process
51.33than the requirements under Code of Federal Regulations, title 31, section 285.6.
51.34(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner
51.35enters into a contingency fee agreement with a nonstate vendor to provide assistance
51.36under this section, the commissioner may charge a debtor a fee for the processing of state
52.1payment offsets for the recovery of federal nontax debts or the processing of federal
52.2payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
52.3and may be withheld from any refund, reimbursement, or other money held for the debtor.
52.4The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply
52.5to fees charged under this paragraph.
52.6EFFECTIVE DATE.This section is effective the day following final enactment. As
52.7soon as possible after that date, the commissioner must discuss an agreement authorized
52.8under this section with appropriate federal officials, and if an agreement is entered into,
52.9the commissioner must begin to implement it to collect debts owed to the state as soon as
52.10possible.
52.11 Sec. 58. Minnesota Statutes 2010, section 270C.545, is amended to read:
52.12270C.545 FEDERAL TAX REFUND OFFSET FEES; TIME LIMIT FOR
52.13SUBMITTING CLAIMS FOR OFFSET.
52.14For If fees are charged by the Department of the Treasury of the United States for
52.15the offset of federal tax refundsthat or the offset of federal payments and these fees are
52.16deducted from the refund or the federal payment amounts remitted to the commissioner,
52.17then the unpaid debts of the taxpayers whose refunds or federal payments are being
52.18offset to satisfy the debts are reduced only by the actual amount of the refund payments
52.19or federal payments received by the commissioner. Notwithstanding any other provision
52.20of law to the contrary, a claim for the offset of a federal tax refund must be submitted to
52.21the Department of the Treasury of the United States within ten years after the date of the
52.22assessment of the tax owed by the taxpayer whose refund is to be offset to satisfy the
52.23debt. For court debts referred to the commissioner under section16D.04 , subdivision 2,
52.24paragraph (a), the federal refund offset fees are deducted as provided in this section, but
52.25the ten-year time limit prescribed in this section for tax debts does not apply.
52.26 Sec. 59. Minnesota Statutes 2010, section 471.697, subdivision 2, is amended to read:
52.27 Subd. 2. First class city audits.The state auditor shall continue to audit cities of the
52.28first class pursuant to Notwithstanding section
6.49 , a city of the first class may provide for
52.29an audit to be performed by a certified public accountant firm meeting the requirements
52.30of section 326A.05. The audit performed by a certified public accountant must meet the
52.31standards and be in the form required by the state auditor. The state auditor may require
52.32additional information from the certified public accountant firm as the state auditor deems
53.1in the public interest, but the state auditor must accept the audit unless the state auditor
53.2determines that it does not meet recognized industry auditing standards.
53.3 Sec. 60. Laws 2010, chapter 361, article 3, section 8, is amended to read:
53.4 Sec. 8. USE OF CARRYFORWARD.
53.5The restrictions in Minnesota Statutes, section16A.281 , on the use of money carried
53.6forward from one biennium to another shall not apply to money the legislative auditor
53.7carried forward from theprevious biennium for use in fiscal years 2010 and 2011 ending
53.8June 30, 2009, or the biennium ending June 30, 2011. The legislative auditor may use the
53.9carry forward money for costs related to the conduct of audits related to funds authorized
53.10in the Minnesota Constitution, Article XI, section 15, and audits related to the institutions,
53.11offices, and functions of the Minnesota State Colleges and Universities.
53.12EFFECTIVE DATE.This section is effective the day following final enactment.
53.13 Sec. 61. STATE BUILDING EFFICIENCY.
53.14 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner
53.15of administration shall issue a request for proposals for a contract to provide
53.16recommendations for efficiencies in state building management to the commissioner. The
53.17request for proposals shall require the vendor to provide a system that will overlay existing
53.18building controls and instrumentation that influence energy consumption, including space,
53.19equipment and system performance, facility operations, and facility maintenance. The
53.20request for proposals shall require the vendor to provide a system that provides concurrent
53.21building monitoring, energy consumption optimization, space utilization, and equipment
53.22performance information.
53.23 Subd. 2. Standards-based platform system with data analytics. The request for
53.24proposals must require the vendor to provide: (1) a standards-based platform system with
53.25the capability to integrate and coordinate a variety of control systems, including their data,
53.26and the ability to manage all state buildings and their control systems; and (2) a system that
53.27uses data analytics to integrate corrective action notification and work order management.
53.28 Subd. 3. Proof of concept phase. The request for proposals shall require the
53.29selected vendor, at no cost to the state, to begin work on the contract by implementing
53.30its proposed system on one to three instrumented state buildings to demonstrate the
53.31savings provided by the system. The system provided by the vendor must be capable of
53.32application to all instrumented state-owned buildings. During this proof of concept phase,
54.1the vendor and the state must agree on how savings during the full implementation phase
54.2will be defined, measured, and verified, to ensure that the contract will provide the highest
54.3possible return on investment to the state.
54.4 Subd. 4. Full implementation and payment. The request for proposal must
54.5require the state to implement the system provided by the vendor in all instrumented
54.6buildings owned by the state if the state and the vendor have agreed on how savings
54.7will be defined, measured, and verified, and the work done under the requirements of
54.8subdivision 3 provides material savings to the state. After the full implementation of the
54.9system provided by the vendor, the vendor shall be paid by the state from the savings
54.10attributable to the work done by the vendor, according to the terms and performance
54.11measures negotiated in the contract.
54.12 Subd. 5. Selection of vendor. The commissioner of administration shall select a
54.13vendor from the responses to the request for proposal by September 1, 2011.
54.14 Subd. 6. Progress report. The commissioner shall provide a report describing the
54.15progress made under this section to the governor and the chairs and ranking minority
54.16members of the legislative committees with jurisdiction over the commissioner of
54.17administration by January 15, 2012. The report shall provide a dynamic scoring analysis
54.18of the work described in the report.
54.19 Sec. 62. FLEET MANAGEMENT IMPROVEMENTS.
54.20 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner of
54.21administration shall issue a request for proposals to improve the procurement, allocation,
54.22control, energy efficiency, maintenance, and in-service life of state vehicles. The request
54.23for proposal shall require the vendor to provide a system for:
54.24(1) a life-cycle solution for vehicle management, covering all stages from
54.25procurement through disposal of state vehicles; and
54.26(2) the integration of data analytics to provide vehicle tracking, usage, and proactive
54.27maintenance management.
54.28 Subd. 2. Proof of concept phase. The request for proposals must specify that the
54.29vendor, at no cost to the state, must implement its system in one vehicle maintenance
54.30facility on a sample group of vehicles to demonstrate the cost-savings potential of the
54.31recommendations. During this proof of concept phase, the vendor and the state must
54.32agree on how savings during the full implementation phase will be defined, measured,
55.1and verified, to ensure that the contract will provide the highest possible return on
55.2investment to the state.
55.3 Subd. 3. Full implementation and payment. The request for proposal must require
55.4the state to implement the recommendations provided by the vendor if the state and the
55.5vendor have agreed on how savings will be defined, measured, and verified, and the work
55.6done under the requirements of subdivision 2 provides material savings to the state. After
55.7the full implementation of the system provided by the vendor, the vendor shall be paid by
55.8the state from the savings attributable to the work done by the vendor, according to the
55.9terms and performance measures negotiated in the contract.
55.10 Subd. 4. Selection of vendor. The commissioner of administration shall select a
55.11vendor from the responses to the request for proposal by September 1, 2011.
55.12 Subd. 5. Progress report. The commissioner shall provide a report describing the
55.13progress made under this section to the governor and the chairs and ranking minority
55.14members of the legislative committees with jurisdiction over the commissioner of
55.15administration by January 15, 2012. The report shall provide a dynamic scoring analysis
55.16of the work described in the report.
55.17 Sec. 63. SALARY FREEZE.
55.18(a) Effective July 1, 2011, and until June 30, 2013, a state employee may not receive
55.19a salary or wage increase. This section prohibits any increases, including but not limited
55.20to: across-the-board increases; cost-of-living adjustments; increases based on longevity;
55.21step increases; increases in the form of lump-sum payments; increases in employer
55.22contributions to deferred compensation plans; or any other pay grade adjustments of
55.23any kind. For purposes of this section, "salary or wage" does not include employer
55.24contributions toward the cost of medical or dental insurance premiums, provided that
55.25employee contributions to the costs of medical or dental insurance premiums are not
55.26decreased. This section does not prohibit an increase in the rate of salary and wages for an
55.27employee who is promoted or transferred to a position with greater responsibilities and
55.28with a higher salary or wage rate. For purposes of this section, state employee means an
55.29employee as defined in Minnesota Statutes, section 43A.02, subdivision 21, but does not
55.30include faculty or administrators in the Minnesota State Colleges and Universities system.
55.31(b) A state appointing authority may not enter into a collective bargaining agreement
55.32or implement a compensation plan that increases salary or wages in a manner prohibited
55.33by this section. Neither a state appointing authority nor an exclusive representative of state
55.34employees may request interest arbitration in relation to an increase in salary or wages that
56.1is prohibited by this section, and an arbitrator may not issue an award that would increase
56.2salary or wages in a manner prohibited by this section.
56.3(c) This section supersedes Minnesota Statutes, section 179A.20, subdivision 6, or
56.4other law, to the extent those laws would authorize an increase prohibited by this section.
56.5EFFECTIVE DATE.Paragraph (b) is effective the day following final enactment.
56.6Paragraphs (a) and (c) are effective June 30, 2011.
56.7 Sec. 64. STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE
56.8INCENTIVE PROGRAM.
56.9The commissioner of management and budget may develop and implement a
56.10program that creates an incentive for efficient use by state employees of State Employee
56.11Group Insurance Program (SEGIP). The program may reward employees covered by
56.12SEGIP as a group if per capita employee health care costs paid by SEGIP for a calendar
56.13year prove to be less than estimated by the commissioner prior to the beginning of the
56.14calendar year. The reward may consist of payments of one-half of the cost-savings into
56.15the employees' health reimbursement accounts, to be made no later than June 30 of the
56.16following calendar year.
56.17 Sec. 65. STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT
56.18ELIGIBILITY VERIFICATION AUDIT SERVICES.
56.19 Subdivision 1. Request for proposals. By August 1, 2011, the commissioner of
56.20management and budget shall issue a request for proposals for a contract to provide
56.21dependent eligibility verification audit services for state-paid hospital, medical, and dental
56.22benefits provided to participants in the state employee group insurance program and their
56.23dependents. The request for proposals must require that the vendor will:
56.24(1) conduct a document-model dependent eligibility verification audit of all plans
56.25offered under Minnesota Statutes, sections 43A.22 to 43A.31;
56.26(2) identify ineligible dependents covered by the plans and report those findings to
56.27the commissioner and third-party administrators of the state's employee health plans, as
56.28directed by the commissioner; and
56.29(3) implement a process for ongoing eligibility verification following the conclusion
56.30of the dependent eligibility verification audit required by this section.
56.31 Subd. 2. Additional vendor criteria. The request for proposals required by
56.32subdivision 1 must require the vendor to provide the following minimum capabilities and
56.33experience in performing the services described in subdivision 1:
57.1(1) a rules-based process for making objective eligibility determinations;
57.2(2) assigned eligibility advocates to assist employees through the verification
57.3process;
57.4(3) a formal claims and appeals process; and
57.5(4) experience in the performance of dependent eligibility verification audits.
57.6 Subd. 3. Contract required. By November 1, 2011, the commissioner must enter
57.7into a contract for the services specified in subdivision 1. The contract must incorporate
57.8a performance-based vendor financing option that compensates the vendor based on the
57.9amount of savings generated by the work performed under the contract.
57.10 Sec. 66. SEGIP SAVINGS.
57.11The commissioner of management and budget must negotiate and implement
57.12changes to the state employee group insurance program that will result in reduced general
57.13fund contributions from state employers subject to appropriation reductions under article
57.141, section 39, of at least $90,009,000 during the biennium ending June 30, 2013.
57.15 Sec. 67. TAX FRAUD PREVENTION AND DETECTION.
57.16 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner of
57.17revenue shall issue a request for proposals to prevent and detect tax fraud and increase
57.18delinquent tax revenue collection. The request for proposals shall require the vendor to
57.19provide data analytics capabilities, including, but not limited to, predictive modeling
57.20techniques and other forms of advanced analytics that will integrate into the current tax
57.21processing system to detect compliance issues before tax return processing is completed,
57.22and optimization algorithms that will assist the commissioner in maximizing revenues
57.23collected with current levels of compliance staff.
57.24 Subd. 2. Proof of concept phase. The selected vendor, at no cost to the state, shall
57.25implement its recommendations on a subset of data provided by the commissioner to
57.26demonstrate the cost-savings potential of the recommendations.
57.27 Subd. 3. Data. Data provided to the vendor by the commissioner for the proof of
57.28concept phase must not include not public data, as defined in section 13.02, subdivision 8a.
57.29 Subd. 4. Full implementation phase. The request for proposal must require the
57.30state to implement the recommendations provided by the vendor if the work done under
57.31the requirements of subdivision 2 provides material savings to the state. After the full
57.32implementation of the system provided by the vendor, the vendor shall be paid by the state
58.1from the savings attributable to the work done by the vendor, according to the terms and
58.2performance measures negotiated in the contract. The contract shall not compensate the
58.3vendor based on a percentage of taxes assessed or collected.
58.4 Subd. 5. Selection of vendor. The commissioner of administration shall select a
58.5vendor from the responses to the request for proposal by September 1, 2011.
58.6 Subd. 6. Progress report. The commissioner shall provide a report describing the
58.7progress made under this section to the governor and the chairs and ranking minority
58.8members of the legislative committees with jurisdiction over the commissioner of revenue
58.9and data practices by January 15, 2012. The report shall provide a dynamic scoring
58.10analysis of the work described in the report and address data access and privacy issues
58.11involved in implementation of the system.
58.12EFFECTIVE DATE.This section is effective the day following final enactment.
58.13 Sec. 68. STRATEGIC SOURCING REQUEST FOR PROPOSALS.
58.14 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner
58.15of administration shall issue a request for proposals for a contract to provide
58.16recommendations for efficiencies in strategic sourcing to the commissioner. For the
58.17purposes of this section, "strategic sourcing" has the meaning given in Minnesota Statutes,
58.18section 16C.02, subdivision 20. The request for proposals shall require the vendor to
58.19provide recommendations for improvements to methods used by the commissioner
58.20to analyze and reduce spending on goods and services, including, but not limited to,
58.21spend analysis, product standardization, contract consolidation, negotiations, multiple
58.22jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and
58.23other techniques.
58.24 Subd. 2. Proof of concept phase. The request for proposal shall require the selected
58.25vendor, at no cost to the state, to begin work on the contract by assisting the commissioner
58.26in implementing its proposed solution on selected state procurement processes to
58.27demonstrate the savings provided by the recommendations. The system provided by the
58.28vendor must be capable of application to the state procurement system.
58.29 Subd. 3. Full implementation and payment. The request for proposal must require
58.30the state to implement the recommendations provided by the vendor in the entire state
58.31procurement system if the work done under the requirements of subdivision 2 provides
58.32material savings to the state. After the full implementation of the system provided by the
59.1vendor, the vendor shall be paid by the state from the savings attributable to the work done
59.2by the vendor, according to the terms and performance measures negotiated in the contract.
59.3 Subd. 4. Selection of vendor. The commissioner of administration shall select,
59.4from qualified respondents, a vendor from the responses to the request for proposal by
59.5September 1, 2011.
59.6 Subd. 5. Progress report. The commissioner shall provide a report describing the
59.7progress made under this section to the governor and the chairs and ranking minority
59.8members of the legislative committees with jurisdiction over the commissioner of
59.9administration by January 15, 2012.
59.10 Sec. 69. STATE JOB CLASSIFICATIONS.
59.11The commissioner of management and budget shall report to the legislature by
59.12January 15, 2012, on a process to redesign and consolidate the job classification plan for
59.13executive branch employees, with a goal of assigning all classified positions to no more
59.14than 50 job families. The process must lead to development of a new job classification
59.15plan designed to enhance the ability of state agencies to flexibly manage their workforces
59.16to meet changing needs and demands of the agency, and to enhance the ability of state
59.17employees to transfer to other positions for which they are qualified. In developing this
59.18process, the commissioner must meet and confer with the exclusive representatives of each
59.19affected bargaining unit. The report to the legislature must identify implementation issues.
59.20 Sec. 70. HELP AMERICA VOTE ACT.
59.21(a) If the secretary of state determines that this state is otherwise eligible to receive
59.22an additional requirements payment of federal money under the Help America Vote Act,
59.23Public Law 107-252, the secretary must certify to the commissioner of management and
59.24budget the amount, if any, needed to meet the matching requirement of section 253(b)(5)
59.25of the Help America Vote Act. In the certification, the secretary shall specify the portion
59.26of the match that should be taken from an unencumbered general fund appropriation to
59.27the Office of the Secretary of State not designated for a different purpose. Upon receipt
59.28of that certification, or as soon as an unencumbered general fund appropriation becomes
59.29available, whichever occurs later, the commissioner must transfer the specified amount
59.30to the Help America Vote Act account. Funds under the Help America Vote Act may be
59.31spent only following legislative approval.
59.32(b) This section expires on June 30, 2013.
59.33EFFECTIVE DATE.This section is effective the day following final enactment.
60.1 Sec. 71. ESTIMATED REVENUE.
60.2The initiatives in sections 44, 57, 58, and 67 are expected to result in new general
60.3fund revenues of $169,900,000 for the biennium ending June 30, 2013.
60.4 Sec. 72. REPEALER.
60.5Minnesota Statutes 2010, sections 16C.085; 43A.047; and 179A.23, are repealed.
60.8 Section 1. Minnesota Statutes 2010, section 16B.99, is amended to read:
60.916B.99 GEOSPATIAL INFORMATION OFFICE.
60.10 Subdivision 1. Creation. The Minnesota Geospatial Information Office is created
60.11under the supervision of thecommissioner of administration chief geospatial information
60.12officer, who is appointed by the chief information officer.
60.13 Subd. 2. Responsibilities; authority. The office has authority to provide
60.14coordination, guidance, and leadership, and to plan the implementation of Minnesota's
60.15geospatial information technology. The office must identify, coordinate, and guide
60.16strategic investments in geospatial information technology systems, data, and services to
60.17ensure effective implementation and use of Geospatial Information Systems (GIS) by state
60.18agencies to maximize benefits for state government as an enterprise.
60.19 Subd. 3. Duties. The office must:
60.20(1) coordinate and guide the efficient and effective use of available federal,
60.21state, local, and public-private resources to develop statewide geospatial information
60.22technology, data, and services;
60.23(2) provide leadership and outreach, and ensure cooperation and coordination for all
60.24Geospatial Information Systems (GIS) functions in state and local government, including
60.25coordination between state agencies, intergovernment coordination between state and local
60.26units of government, and extragovernment coordination, which includes coordination with
60.27academic and other private and nonprofit sector GIS stakeholders;
60.28(3) review state agency and intergovernment geospatial technology, data, and
60.29services development efforts involving state or intergovernment funding, including federal
60.30funding;
60.31(4) provide information to the legislature regarding projects reviewed, and
60.32recommend projects for inclusion in the governor's budget under section16A.11 ;
60.33(5) coordinate management of geospatial technology, data, and services between
60.34state and local governments;
61.1(6) provide coordination, leadership, and consultation to integrate government
61.2technology services with GIS infrastructure and GIS programs;
61.3(7) work to avoid or eliminate unnecessary duplication of existing GIS technology
61.4services and systems, including services provided by other public and private organizations
61.5while building on existing governmental infrastructures;
61.6(8) promote and coordinate consolidated geospatial technology, data, and services
61.7and shared geospatial Web services for state and local governments; and
61.8(9) promote and coordinate geospatial technology training, technical guidance, and
61.9project support for state and local governments.
61.10 Subd. 4. Duties of chiefgeospatial information officer. (a) In consultation with the
61.11state geospatial advisory council, the commissioner of administration, the commissioner
61.12of management and budget, and theMinnesota chief geospatial information officer, the
61.13chiefgeospatial information officer must identify when it is cost-effective for agencies to
61.14develop and use shared information and geospatial technology systems, data, and services.
61.15The chiefgeospatial information officer may require agencies to use shared information
61.16and geospatial technology systems, data, and services.
61.17(b) The chiefgeospatial information officer, in consultation with the state
61.18geospatial advisory council, must establish reimbursement rates in cooperation with the
61.19commissioner of management and budget to bill agencies and other governmental entities
61.20sufficient to cover the actual development, operation, maintenance, and administrative
61.21costs of the shared systems. The methodology for billing may include the use of
61.22interagency agreements, or other means as allowed by law.
61.23 Subd. 5. Fees. (a) The chiefgeospatial information officer must set fees under
61.24section16A.1285 that reflect the actual cost of providing information products and
61.25services to clients. Fees collected must be deposited in the state treasury and credited to
61.26the Minnesota Geospatial Information Office revolving account. Money in the account
61.27is appropriated to the chiefgeospatial information officer for providing Geospatial
61.28Information Systems (GIS) consulting services, software, data, Web services, and map
61.29products on a cost-recovery basis, including the cost of services, supplies, material, labor,
61.30and equipment as well as the portion of the general support costs and statewide indirect
61.31costs of the office that is attributable to the delivery of these products and services. Money
61.32in the account must not be used for the general operation of the Minnesota Geospatial
61.33Information Office.
61.34(b) The chiefgeospatial information officer may require a state agency to make an
61.35advance payment to the revolving account sufficient to cover the agency's estimated
61.36obligation for a period of 60 days or more. If the revolving account is abolished or
62.1liquidated, the total net profit from the operation of the account must be distributed to the
62.2various funds from which purchases were made. For a given period of time, the amount of
62.3total net profit to be distributed to each fund must reflect the same ratio of total purchases
62.4attributable to each fund divided by the total purchases from all funds.
62.5 Subd. 6. Accountability. The chief geospatial information officer is appointed by
62.6thecommissioner of administration and must work closely with the Minnesota chief
62.7information officer who shall advise on technology projects, standards, and services.
62.8 Subd. 7. Discretionary powers. The office may:
62.9(1) enter into contracts for goods or services with public or private organizations
62.10and charge fees for services it provides;
62.11(2) apply for, receive, and expend money from public agencies;
62.12(3) apply for, accept, and disburse grants and other aids from the federal government
62.13and other public or private sources;
62.14(4) enter into contracts with agencies of the federal government, local government
62.15units, the University of Minnesota and other educational institutions, and private persons
62.16and other nongovernment organizations as necessary to perform its statutory duties;
62.17(5) appoint committees and task forces to assist the office in carrying out its duties;
62.18(6) sponsor and conduct conferences and studies, collect and disseminate
62.19information, and issue reports relating to geospatial information and technology issues;
62.20(7) participate in the activities and conferences related to geospatial information
62.21and communications technology issues;
62.22(8) review the Geospatial Information Systems (GIS) technology infrastructure
62.23of regions of the state and cooperate with and make recommendations to the governor,
62.24legislature, state agencies, local governments, local technology development agencies,
62.25the federal government, private businesses, and individuals for the realization of GIS
62.26information and technology infrastructure development potential;
62.27(9) sponsor, support, and facilitate innovative and collaborative geospatial systems
62.28technology, data, and services projects; and
62.29(10) review and recommend alternative sourcing strategies for state geospatial
62.30information systems technology, data, and services.
62.31 Subd. 8. Geospatial advisory councils created. The chiefgeospatial information
62.32officer must establish a governance structure that includes advisory councils to provide
62.33recommendations for improving the operations and management of geospatial technology
62.34within state government and also on issues of importance to users of geospatial technology
62.35throughout the state.
63.1(a) A statewide geospatial advisory council must advise the Minnesota Geospatial
63.2Information Office regarding the improvement of services statewide through the
63.3coordinated, affordable, reliable, and effective use of geospatial technology. The
63.4commissioner of administration chief information officer must appoint the members of the
63.5council. The members must represent a cross-section of organizations including counties,
63.6cities, universities, business, nonprofit organizations, federal agencies, and state agencies.
63.7No more than 20 percent of the members may be employees of a state agency. In addition,
63.8the chief geospatial information officer must be a nonvoting member.
63.9(b) A state government geospatial advisory council must advise the Minnesota
63.10Geospatial Information Office on issues concerning improving state government services
63.11through the coordinated, affordable, reliable, and effective use of geospatial technology.
63.12Thecommissioner of administration chief information officer must appoint the members
63.13of the council. The members must represent up to 15 state government agencies and
63.14constitutional offices, including the Office of Enterprise Technology and the Minnesota
63.15Geospatial Information Office. The council must be chaired by the chief geographic
63.16information officer. A representative of the statewide geospatial advisory council must
63.17serve as a nonvoting member.
63.18(c) Members of both the statewide geospatial advisory council and the state
63.19government advisory council must be recommended by a process that ensures that each
63.20member is designated to represent a clearly identified agency or interested party category
63.21and that complies with the state's open appointment process. Members shall serve a
63.22term of two years.
63.23(d) The Minnesota Geospatial Information Office must provide administrative
63.24support for both geospatial advisory councils.
63.25(e) This subdivision expires June 30, 2011.
63.26Subd. 9. Report to legislature. By January 15, 2010, the chief geospatial
63.27information officer must provide a report to the chairs and ranking minority members of
63.28the legislative committees with jurisdiction over the policy and budget for the office. The
63.29report must address all statutes that refer to the Minnesota Geospatial Information Office
63.30or land management information system and provide any necessary draft legislation to
63.31implement any recommendations.
63.32 Sec. 2. [16E.0151] RESPONSIBILITY FOR INFORMATION TECHNOLOGY
63.33SERVICES AND EQUIPMENT.
64.1(a) The chief information officer is responsible for providing or entering into
64.2managed services contracts for the provision of the following information technology
64.3systems and services to state agencies:
64.4(1) state data centers;
64.5(2) mainframes including system software;
64.6(3) servers including system software;
64.7(4) desktops including system software;
64.8(5) laptop computers including system software;
64.9(6) a data network including system software;
64.10(7) database, electronic mail, office systems, reporting, and other standard software
64.11tools;
64.12(8) business application software and related technical support services;
64.13(9) help desk for the components listed in clauses (1) to (8);
64.14(10) maintenance, problem resolution, and break-fix for the components listed in
64.15clauses (1) to (8);
64.16(11) regular upgrades and replacement for the components listed in clauses (1)
64.17to (8); and
64.18(12) network-connected output devices.
64.19(b) All state agency employees whose work primarily involves functions specified
64.20in paragraph (a) are employees of the Office of Enterprise Technology. This includes
64.21employees who directly perform the functions in paragraph (a), as well as employees
64.22whose work primarily involves managing, supervising, or providing administrative
64.23services or support services to employees who directly perform these functions. The
64.24chief information officer may assign employees of the office to perform work exclusively
64.25for another state agency.
64.26(c) The chief information officer may allow a state agency to obtain services
64.27specified in paragraph (a) through a contract with an outside vendor when the chief
64.28information officer and the agency head agree that a contract would provide best value,
64.29as defined in section 16C.02, under the service-level agreement. The chief information
64.30officer must require that agency contracts with outside vendors ensure that systems and
64.31services are compatible with standards established by the Office of Enterprise Technology.
64.32(d) In exercising authority under this section, the chief information officer
64.33must cooperate with the commissioner of administration on contracts for acquisition
64.34of information technology systems and services. The authority granted to the chief
64.35information officer does not limit the procurement, contract management, and contract
64.36review authority of the commissioner of administration under chapter 16C, including
65.1authority of the commissioner to enter into and manage cooperative purchasing
65.2agreements with other states.
65.3(e) The Minnesota State Retirement System, the Public Employees Retirement
65.4Association, the Teachers Retirement Association, the State Board of Investment, the
65.5Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide
65.6Radio Board are not state agencies for purposes of this section.
65.7 Sec. 3. [16E.036] ADVISORY COMMITTEE.
65.8(a) The Technology Advisory Committee is created to advise the chief information
65.9officer. The committee consists of six members appointed by the governor who are
65.10individuals actively involved in business planning for state executive branch agencies,
65.11one county member designated by the Association of Minnesota Counties, one member
65.12appointed by the governor as a representative of a union that represents state information
65.13technology employees, and one member appointed by the governor to represent private
65.14businesses.
65.15(b) Membership terms, removal of members, and filling of vacancies are as provided
65.16in section 15.059. Members do not receive compensation or reimbursement for expenses.
65.17(c) The committee shall select a chair from its members. The chief information
65.18officer shall provide administrative support to the committee.
65.19(d) The committee shall advise the chief information officer on:
65.20(1) development and implementation of the state information technology strategic
65.21plan;
65.22(2) critical information technology initiatives for the state;
65.23(3) standards for state information architecture;
65.24(4) identification of business and technical needs of state agencies;
65.25(5) strategic information technology portfolio management, project prioritization,
65.26and investment decisions;
65.27(6) the office's performance measures and fees for service agreements with executive
65.28branch agencies;
65.29(7) management of the state enterprise technology revolving fund; and
65.30(8) the efficient and effective operation of the office.
65.31 Sec. 4. Minnesota Statutes 2010, section 16E.14, is amended by adding a subdivision
65.32to read:
65.33 Subd. 6. Technology improvement account. The technology improvement account
65.34is established as an account in the enterprise technology fund. Money in the account is
66.1appropriated to the chief information officer for the purpose of funding a project that will
66.2result in improvements in state information and telecommunications technology. The
66.3chief information officer may spend money from the account on behalf of a state agency
66.4or group of agencies or may transfer money in the account to a state agency or group of
66.5agencies only according to an agreement under which: (1) the chief information officer
66.6has determined that savings generated by the project to be funded from the account will
66.7exceed the cost of the project; and (2) the agency or agencies sponsoring the project have
66.8developed a plan for recouping the project costs to the fund.
66.9 Sec. 5. [16E.145] INFORMATION TECHNOLOGY APPROPRIATION.
66.10An appropriation for a state agency information and telecommunications technology
66.11project must be made to the chief information officer. The chief information officer must
66.12manage and disburse the appropriation on behalf of the sponsoring state agency. Any
66.13appropriation for an information and telecommunications technology project made to a
66.14state agency other than the Office of Enterprise Technology is transferred to the chief
66.15information officer.
66.16EFFECTIVE DATE.This section is effective July 1, 2011, and applies to
66.17appropriations made before or after that date. The remainder of any appropriation subject
66.18to this section made before July 1, 2011, is transferred to the chief information officer on
66.19July 1, 2011. Ten percent of the unspent and unencumbered appropriations made before
66.20June 30, 2011, that would not otherwise cancel on June 30, 2011, that are transferred to
66.21the chief information officer, may be used for expenses relating to the transfer of functions
66.22under sections 1 to 8.
66.23 Sec. 6. TRANSFERS; TRANSITION.
66.24(a) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations
66.25relating to functions assigned to the chief information officer in Minnesota Statutes,
66.26section 16E.0151, are transferred to the Office of Enterprise Technology from all other
66.27state agencies, as defined in Minnesota Statutes, section 16E.03, subdivision 1, paragraph
66.28(e), effective July 1, 2011. All reporting relationships associated with the transferred
66.29powers, duties, responsibilities, assets, personnel, and unexpended appropriations are also
66.30transferred to the Office of Enterprise Technology on July 1, 2011. By January 15, 2012,
66.31the chief information officer shall submit to the legislature any statutory changes needed
66.32to complete implementation of the transfer in this section.
66.33(b) Prior to the transfer mandated by paragraph (a), the chief information officer
66.34must enter into a service-level agreement with each state agency governing the provision
67.1of information technology systems and services in Minnesota Statutes, section 16E.0151.
67.2The agreements must specify the services to be provided and the charges for these
67.3services. As specified in Minnesota Statutes, section 16E.0151, an agency may choose to
67.4obtain these services from an outside vendor, rather than from the Office of Enterprise
67.5Technology. Authority to enter into agreements under this paragraph is effective the day
67.6following final enactment, with the resulting agreements effective July 1, 2011.
67.7(c) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations
67.8relating to geospatial information systems are transferred from the commissioner of
67.9administration to the Office of Enterprise Technology.
67.10(d) Minnesota Statutes, section 15.039, applies to transfers in this section. Executive
67.11branch officials may use authority under Minnesota Statutes, section 16B.37, as necessary
67.12to implement this section.
67.13(e) The transfer of authority to the Office of Enterprise Technology in this article
67.14does not require expansion or consolidation of office space, data centers, help desks,
67.15or other systems. The chief information officer may implement expansion, relocation,
67.16or consolidation to the extent feasible and desirable with existing resources, or to the
67.17extent that savings resulting from the expansions or consolidations will pay for the costs
67.18associated with these activities during the biennium ending June 30, 2013.
67.19(f) Expenses relating to transfer of functions and other implementation of sections 1
67.20to 8 must be paid from the enterprise technology revolving fund.
67.21(g) The chief information officer must reduce the number of agency chief
67.22information officer positions to 15 by December 31, 2011. The chief information officer,
67.23in consultation with the commissioner of management and budget, must determine the
67.24general fund savings resulting from elimination of each chief information officer position,
67.25and the amount determined is transferred from the general fund appropriation to the
67.26agency to the enterprise technology revolving fund.
67.27 Sec. 7. STUDY.
67.28The chief information officer in the Office of Enterprise Technology shall report
67.29to the chairs and ranking minority members of the house of representatives and senate
67.30committees with jurisdiction over state government finance by January 15, 2012, on
67.31the feasibility and desirability of the office entering into service-level agreements with
67.32the State Lottery and the Statewide Radio Board regarding provision of information
67.33technology systems and services to those entities.
67.34 Sec. 8. REVISOR'S INSTRUCTION.
68.1The revisor of statutes shall recodify Minnesota Statutes, section 16B.99, into
68.2Minnesota Statutes, chapter 16E.
68.3 Sec. 9. EFFECTIVE DATE.
68.4Sections 1 to 8 are effective July 1, 2011. However, the chief information officer
68.5may phase in the transfer of functions required by sections 1 to 8 between July 1, 2011,
68.6and July 1, 2012."
68.7Delete the title and insert:
68.9relating to state government operations; reducing general fund appropriations
68.10to executive agencies; requiring contributions to enterprise real property
68.11technology system; establishing the Sunset Advisory Commission; allowing
68.12counties and cities to use a certified public accountant for audits; prohibiting
68.13legislative liaisons; eliminating assistant commissioner positions and reducing
68.14deputy commissioner positions; allowing state employees to compete for state
68.15business; establishing the SAVI program; changing provisions of performance
68.16data required in the budget proposal; requiring specific funding information for
68.17forecasted programs; implementing zero-based budgeting principles; establishing
68.18employee gainsharing program; establishing the Minnesota Pay for Performance
68.19Act; permitting selling and issuing appropriations bonds; establishing e-verify
68.20program for vendors and subcontractors; placing limitation on contracts for
68.21tax-related activities; changing procedures for service contracts; extending
68.22expiration date for Mississippi River Parkway Commission; implementing
68.23federal offset program for collection of debts owed to state agencies; changing
68.24provisions for performance appraisal system; requiring reduction in state work
68.25force; allowing reciprocal offset agreements with the federal government;
68.26requiring a request for proposals for recommendations on state building
68.27efficiency, state vehicle management, tax fraud prevention, and strategic
68.28sourcing; continuing state employee salary freeze; implementing state employee
68.29efficient use of health care incentive program; requiring a verification audit
68.30for dependent eligibility for state employee health insurance; requiring state
68.31job classification redesign; determining funds for Help America Vote Act;
68.32estimating new general fund revenues; consolidating information technology
68.33services; requiring reports; appropriating money;amending Minnesota Statutes
68.342010, sections 3.85, subdivision 3; 6.48; 15.057; 15.06, subdivision 8; 16A.10,
68.35subdivisions 1a, 1b, 1c; 16A.103, subdivision 1a; 16A.11, subdivision 3;
68.3616A.28, subdivision 3; 16B.03; 16B.99; 16C.08, subdivision 2; 16C.09;
68.3716E.14, by adding a subdivision; 37.06; 43A.08, subdivision 1; 43A.20;
68.3845.013; 84.01, subdivision 3; 116.03, subdivision 1; 116J.01, subdivision
68.395; 116J.035, subdivision 4; 161.1419, subdivision 8; 174.02, subdivision 2;
68.40241.01, subdivision 2; 270C.41; 270C.545; 471.697, subdivision 2; Laws 2009,
68.41chapter 101, article 2, section 106; Laws 2010, chapter 215, article 6, section 4;
68.42Laws 2010, chapter 361, article 3, section 8; proposing coding for new law in
68.43Minnesota Statutes, chapters 15; 16A; 16C; 16D; 16E; 43A; proposing coding
68.44for new law as Minnesota Statutes, chapter 3D; repealing Minnesota Statutes
68.452010, sections 16C.085; 43A.047; 179A.23; 197.585, subdivision 5."
1.3relating to state government financing; establishing the Sunset Advisory
1.4Commission; prohibiting legislative liaison positions in state agencies and
1.5departments; eliminating assistant commissioner positions and reducing deputy
1.6commissioner positions; changing provisions of performance data required
1.7in the budget proposal; requiring specific funding information for forecasted
1.8programs; implementing zero-based budgeting principles; implementing federal
1.9offset program for collection of debts owed to state agencies; providing a state
1.10employee salary freeze; providing an HSA-eligible high-deductible health plan
1.11for state employees; requiring a 15 percent reduction in the state workforce;
1.12requiring a verification audit for dependent eligibility for state employee health
1.13insurance; requiring a request for proposals for recommendations on state
1.14building efficiency, state vehicle management, tax fraud prevention, and strategic
1.15sourcing; requiring reports; appropriating money;amending Minnesota Statutes
1.162010, sections 15.057; 15.06, subdivision 8; 16A.10, subdivisions 1a, 1b, 1c;
1.1716A.103, subdivision 1a; 16A.11, subdivision 3; 16B.03; 43A.08, subdivision
1.181; 43A.23, subdivision 1; 45.013; 84.01, subdivision 3; 116.03, subdivision 1;
1.19116J.01, subdivision 5; 116J.035, subdivision 4; 174.02, subdivision 2; 241.01,
1.20subdivision 2; 270C.41; Laws 2010, chapter 215, article 6, section 4; proposing
1.21coding for new law in Minnesota Statutes, chapters 16A; 16D; 43A; proposing
1.22coding for new law as Minnesota Statutes, chapter 3D; repealing Minnesota
1.23Statutes 2010, section 197.585, subdivision 5.
1.24May 17, 2011
1.25The Honorable Michelle L. Fischbach
1.26President of the Senate
1.27The Honorable Kurt Zellers
1.28Speaker of the House of Representatives
1.29We, the undersigned conferees for S.F. No. 1047 report that we have agreed upon
1.30the items in dispute and recommend as follows:
1.31That the House recede from its amendments and that S.F. No. 1047 be further
1.32amended as follows:
1.33Delete everything after the enacting clause and insert:
| 2.3 |
Section 1. STATE GOVERNMENT APPROPRIATIONS. |
||||||
2.5agencies and for the purposes specified in this article. The appropriations are from the
2.6general fund, or another named fund, and are available for the fiscal years indicated
2.7for each purpose. The figures "2012" and "2013" used in this article mean that the
2.8appropriations listed under them are available for the fiscal year ending June 30, 2012, or
2.9June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
2.10year 2013. "The biennium" is fiscal years 2012 and 2013.
| 2.11 |
APPROPRIATIONS |
||||||
| 2.12 |
Available for the Year |
||||||
| 2.13 |
Ending June 30 |
||||||
| 2.14 |
2012 |
2013 |
|||||
| 2.15 |
Sec. 2. LEGISLATURE |
||||||
| 2.16 |
Subdivision 1.Total Appropriation |
$ |
63,070,000 |
$ |
63,070,000 |
||
| 2.17 |
Appropriations by Fund |
||
| 2.18 |
2012 |
2013 |
|
| 2.19 |
General |
62,942,000 |
62,942,000 |
| 2.20 |
Health Care Access |
128,000 |
128,000 |
2.22purpose are specified in the following
2.23subdivisions.
| 2.24 |
Subd. 2.Senate |
20,733,000 |
20,733,000 |
||||
| 2.25 |
Subd. 3.House of Representatives |
27,874,000 |
27,874,000 |
||||
2.27any revenues received by the house of
2.28representatives from voluntary donations
2.29to support broadcast or print media are
2.30appropriated to the house of representatives.
| 2.31 |
Subd. 4.Legislative Coordinating Commission |
14,463,000 |
14,463,000 |
||||
| 2.32 |
Appropriations by Fund |
||
| 2.33 |
General |
14,335,000 |
14,335,000 |
| 2.34 |
Health Care Access |
128,000 |
128,000 |
3.2purposes of the legislators' forum, through
3.3which Minnesota legislators meet with
3.4counterparts from South Dakota, North
3.5Dakota, and Manitoba to discuss issues of
3.6mutual concern.
| 3.7 3.8 |
Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR |
$ |
3,027,000 |
$ |
3,027,000 |
||
3.10the Governor and Lieutenant Governor.
3.11(b) By September 1 of each year, the
3.12commissioner of management and budget
3.13shall report to the chairs and ranking
3.14minority members of the senate State
3.15Government Innovation and Veterans Affairs
3.16Committee and the house of representatives
3.17State Government Finance Committee any
3.18personnel costs incurred by the Offices of the
3.19Governor and Lieutenant Governor that were
3.20supported by appropriations to other agencies
3.21during the previous fiscal year. The Office
3.22of the Governor shall inform the chairs and
3.23ranking minority members of the committees
3.24before initiating any interagency agreements.
3.25(c) During the biennium ending June 30,
3.262013, the Office of the Governor may not
3.27receive payments of more than $670,000 each
3.28fiscal year from other executive agencies
3.29under Minnesota Statutes, section 15.53, to
3.30support office costs incurred by the office.
3.31Payments received under this paragraph must
3.32be deposited in a special revenue account.
3.33Money in the account is appropriated to the
3.34Office of the Governor. The authority in
3.35this paragraph supersedes other law enacted
4.1in 2011 that limits the ability of the office
4.2to enter into agreements relating to office
4.3costs with other executive branch agencies
4.4or prevents the use of appropriations made to
4.5other agencies for agreements with the office
4.6under Minnesota Statutes, section 15.53.
| 4.7 |
Sec. 4. STATE AUDITOR |
$ |
8,008,000 |
$ |
8,008,000 |
||
| 4.8 |
Sec. 5. ATTORNEY GENERAL |
$ |
21,819,000 |
$ |
21,819,000 |
||
4.17year and $65,000 in the second year are
4.18from the general fund for transfer to the
4.19commissioner of public safety for a grant to
4.20the Minnesota County Attorneys Association
4.21for prosecutor and law enforcement training.
| 4.22 |
Sec. 6. SECRETARY OF STATE |
$ |
5,206,000 |
$ |
5,206,000 |
||
4.24established in Minnesota Statutes, section
4.255.30, pursuant to the Help America Vote
4.26Act, after funds appropriated in other laws
4.27enacted during the 2011 regular session are
4.28allotted for purposes specified in those laws,
4.29are appropriated for the purposes and uses
4.30authorized by federal law.
| 4.31 4.32 |
Sec. 7. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD |
$ |
689,000 |
$ |
689,000 |
||
| 4.33 |
Sec. 8. INVESTMENT BOARD |
$ |
139,000 |
$ |
139,000 |
||
| 5.1 |
Sec. 9. ADMINISTRATIVE HEARINGS |
$ |
7,627,000 |
$ |
7,504,000 |
||
| 5.2 |
Appropriations by Fund |
||
| 5.3 |
2012 |
2013 |
|
| 5.4 |
General |
377,000 |
254,000 |
| 5.5 5.6 |
Workers' Compensation |
7,250,000 |
7,250,000 |
5.8of considering complaints filed under
5.9Minnesota Statutes, section 211B.32. Until
5.10June 30, 2013, the chief administrative
5.11law judge may not make any assessment
5.12against a county or counties under Minnesota
5.13Statutes, section 211B.37. Any amount of
5.14this appropriation that remains unspent at
5.15the end of the biennium must be canceled
5.16to the general account of the state elections
5.17campaign fund. The base for fiscal year 2014
5.18is $130,000, to be available for the biennium,
5.19under the same terms.
| 5.20 5.21 |
Sec. 10. OFFICE OF ENTERPRISE TECHNOLOGY |
$ |
4,636,000 |
$ |
4,636,000 |
||
5.23the office must not charge fees to a public
5.24noncommercial educational television
5.25broadcast station for access to the state
5.26information infrastructure.
| 5.27 |
Sec. 11. ADMINISTRATION |
||||||
| 5.28 |
Subdivision 1.Total Appropriation |
$ |
17,789,000 |
$ |
17,789,000 |
||
5.30purpose are specified in the following
5.31subdivisions.
| 5.32 |
Subd. 2.Government and Citizen Services |
14,670,000 |
14,670,000 |
||||
6.2year are for the Council on Developmental
6.3Disabilities.
6.4$8,158,000 the first year and $8,158,000
6.5the second year are for office space costs of
6.6the legislature and veterans organizations,
6.7ceremonial space, and statutorily free space.
| 6.8 |
Subd. 3.Administrative Management Support |
1,494,000 |
1,494,000 |
||||
| 6.9 |
Subd. 4.Public Broadcasting |
1,625,000 |
1,625,000 |
||||
6.11to the commissioner of administration for the
6.12purposes specified.
6.13(b) $1,002,000 the first year and $1,002,000
6.14the second year are for matching grants for
6.15public television.
6.16(c) $190,000 the first year and $190,000
6.17the second year are for public television
6.18equipment grants. Equipment or matching
6.19grant allocations shall be made after
6.20considering the recommendations of the
6.21Minnesota Public Television Association.
6.22(d) $264,000 the first year and $264,000 the
6.23second year are for community service grants
6.24to public educational radio stations.
6.25(e) $92,000 the first year and $92,000 the
6.26second year are for equipment grants to
6.27public educational radio stations.
6.28(f) The grants in paragraphs (d) and (e)
6.29must be allocated after considering the
6.30recommendations of the Association of
6.31Minnesota Public Educational Radio Stations
6.32under Minnesota Statutes, section 129D.14.
7.1(g) $77,000 the first year and $77,000 the
7.2second year are for grants to Minnesota
7.3Public Radio, Inc., for upgrades to
7.4Minnesota's Emergency Alert and AMBER
7.5Alert Systems.
7.6(h) Any unencumbered balance remaining
7.7the first year for grants to public television or
7.8radio stations does not cancel and is available
7.9for the second year.
| 7.10 7.11 7.12 |
Sec. 12. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD |
$ |
325,000 |
$ |
325,000 |
||
| 7.13 7.14 |
Sec. 13. MINNESOTA MANAGEMENT AND BUDGET |
$ |
17,225,000 |
$ |
17,225,000 |
||
| 7.15 |
Sec. 14. REVENUE |
||||||
| 7.16 |
Subdivision 1.Total Appropriation |
$ |
129,963,000 |
$ |
130,013,000 |
||
7.25purpose are specified in subdivisions 2 and 3.
7.26The commissioner must implement
7.27any reduction in funding by reducing
7.28administrative support functions before any
7.29reduction to compliance and enforcement
7.30programs.
| 7.31 |
Subd. 2.Tax System Management |
103,992,000 |
104,042,000 |
||||
| 7.32 |
Appropriations by Fund |
||
| 7.33 |
General |
99,757,000 |
99,807,000 |
| 7.34 |
Health Care Access |
1,749,000 |
1,749,000 |
| 8.1 8.2 |
Highway User Tax Distribution |
2,183,000 |
2,183,000 |
| 8.3 |
Environmental |
303,000 |
303,000 |
| 8.4 |
Subd. 3.Debt Collection Management |
25,971,000 |
25,971,000 |
||||
| 8.5 |
Sec. 15. GAMBLING CONTROL |
$ |
2,740,000 |
$ |
2,740,000 |
||
8.7gambling regulation account in the special
8.8revenue fund.
| 8.9 |
Sec. 16. RACING COMMISSION |
$ |
899,000 |
$ |
899,000 |
||
8.11and card playing regulation accounts in the
8.12special revenue fund.
| 8.13 |
Sec. 17. AMATEUR SPORTS COMMISSION |
$ |
248,000 |
$ |
248,000 |
||
| 8.14 |
Sec. 18. EXPLORE MINNESOTA TOURISM |
$ |
8,369,000 |
$ |
8,269,000 |
||
8.16grant to the Upper Minnesota Film Office.
8.17(b)(1) To develop maximum private sector
8.18involvement in tourism, $500,000 the first
8.19year and $500,000 the second year must
8.20be matched by Explore Minnesota Tourism
8.21from nonstate sources. Each $1 of state
8.22incentive must be matched with $3 of private
8.23sector funding. Cash match is defined as
8.24revenue to the state or documented cash
8.25expenditures directly expended to support
8.26Explore Minnesota Tourism programs. Up
8.27to one-half of the private sector contribution
8.28may be in-kind or soft match. The incentive
8.29in the first year shall be based on fiscal
8.30year 2011 private sector contributions. The
8.31incentive in the second year will be based on
9.1fiscal year 2012 private sector contributions.
9.2This incentive is ongoing.
9.3(2) Funding for the marketing grants is
9.4available either year of the biennium.
9.5Unexpended grant funds from the first year
9.6are available in the second year.
9.7(3) Unexpended money from the general
9.8fund appropriations made under this section
9.9does not cancel but must be placed in a
9.10special marketing account for use by Explore
9.11Minnesota Tourism for additional marketing
9.12activities.
9.13(c) $325,000 the first year and $325,000 the
9.14second year are for the Minnesota Film and
9.15TV Board. The appropriation in each year
9.16is available only upon receipt by the board
9.17of $1 in matching contributions of money or
9.18in-kind contributions from nonstate sources
9.19for every $3 provided by this appropriation,
9.20except that each year up to $50,000 is
9.21available on July 1 even if the required
9.22matching contribution has not been received
9.23by that date.
9.24(d) $100,000 the first year is for a grant to the
9.25Minnesota Film and TV Board for the film
9.26jobs production program under Minnesota
9.27Statutes, section 116U.26. This appropriation
9.28is available until expended.
| 9.29 9.30 |
Sec. 19. MINNESOTA HISTORICAL SOCIETY |
||||||
| 9.31 |
Subdivision 1.Total Appropriation |
$ |
20,141,000 |
$ |
20,037,000 |
||
9.33purpose are specified in the following
9.34subdivisions.
| 10.1 |
Subd. 2.Education and Outreach |
11,336,000 |
11,336,000 |
||||
10.3138.668, the Minnesota Historical Society
10.4may not charge a fee for its general tours at
10.5the Capitol, but may charge fees for special
10.6programs other than general tours.
| 10.7 |
Subd. 3.Preservation and Access |
8,479,000 |
8,479,000 |
||||
| 10.8 |
Subd. 4.Fiscal Agent |
||||||
| 10.9 |
(a) Minnesota International Center |
39,000 |
39,000 |
||||
| 10.10 |
(b) Minnesota Air National Guard Museum |
14,000 |
-0- |
||||
| 10.11 |
(c) Minnesota Military Museum |
90,000 |
-0- |
||||
| 10.12 |
(d) Farmamerica |
115,000 |
115,000 |
||||
| 10.13 |
(e) Hockey Hall of Fame |
68,000 |
68,000 |
||||
| 10.14 |
(f) Balances Forward |
||||||
10.16this subdivision the first year does not cancel
10.17but is available for the second year of the
10.18biennium.
| 10.19 |
Subd. 5.Fund Transfer |
||||||
10.21reallocate funds appropriated in and between
10.22subdivisions 2 and 3 for any program
10.23purposes and the appropriations are available
10.24in either year of the biennium.
| 10.25 |
Sec. 20. BOARD OF THE ARTS |
||||||
| 10.26 |
Subdivision 1.Total Appropriation |
$ |
7,089,000 |
$ |
7,089,000 |
||
10.28purpose are specified in the following
10.29subdivisions.
| 10.30 |
Subd. 2.Operations and Services |
536,000 |
536,000 |
||||
| 11.1 |
Subd. 3.Grants Program |
4,533,000 |
4,533,000 |
||||
| 11.2 |
Subd. 4.Regional Arts Councils |
2,020,000 |
2,020,000 |
||||
| 11.3 |
Subd. 5.Unencumbered balance available |
||||||
11.5section the first year does not cancel, but is
11.6available for the second year of the biennium.
| 11.7 11.8 |
Sec. 21. MINNESOTA HUMANITIES CENTER |
$ |
225,000 |
$ |
225,000 |
||
| 11.9 11.10 |
Sec. 22. COUNCIL ON BLACK MINNESOTANS |
$ |
246,000 |
$ |
246,000 |
||
| 11.11 11.12 |
Sec. 23. COUNCIL ON ASIAN-PACIFIC MINNESOTANS |
$ |
214,000 |
$ |
214,000 |
||
| 11.13 11.14 |
Sec. 24. COUNCIL ON AFFAIRS OF CHICANO/LATINO PEOPLE |
$ |
231,000 |
$ |
231,000 |
||
| 11.15 |
Sec. 25. INDIAN AFFAIRS COUNCIL |
$ |
422,000 |
$ |
422,000 |
||
11.17for a cultural resources specialist to assist the
11.18council with the duties assigned to it relating
11.19to Indian burial grounds under Minnesota
11.20Statutes, section 307.08.
| 11.21 11.22 |
Sec. 26. SCIENCE MUSEUM OF MINNESOTA |
$ |
1,009,000 |
$ |
1,009,000 |
||
| 11.23 |
Sec. 27. TORT CLAIMS |
$ |
161,000 |
$ |
161,000 |
||
11.25commissioner of management and budget
11.26according to Minnesota Statutes, section
11.273.736, subdivision 7. If the appropriation for
11.28either year is insufficient, the appropriation
11.29for the other year is available for it.
| 12.1 12.2 |
Sec. 28. MINNESOTA STATE RETIREMENT SYSTEM |
||||||
| 12.3 |
Subdivision 1.Total Appropriation |
$ |
472,000 |
$ |
481,000 |
||
12.5purpose are specified in the following
12.6subdivisions.
12.7During the biennium ending June 30, 2013,
12.8payments for retirement allowances for
12.9former legislators and surviving spouses
12.10must be made from the legislators retirement
12.11fund created under Minnesota Statutes,
12.12section 3A.03, subdivision 3, and not from
12.13the general fund.
| 12.14 |
Subd. 2. Constitutional Officers |
472,000 |
481,000 |
||||
12.16if an appropriation in this section for either
12.17year is insufficient, the appropriation for the
12.18other year is available for it.
| 12.19 |
Sec. 29. MERF DIVISION ACCOUNT |
$ |
22,750,000 |
$ |
22,750,000 |
||
12.21under Minnesota Statutes, section 353.505.
| 12.22 12.23 |
Sec. 30. TEACHERS RETIREMENT ASSOCIATION |
$ |
15,454,000 |
$ |
15,454,000 |
||
12.25follows:
12.26(a) Special direct state aid. $12,954,000 the
12.27first year and $12,954,000 the second year
12.28are for special direct state aid authorized
12.29under Minnesota Statutes, section 354A.12,
12.30subdivisions 3a and 3c.
12.31(b) Special direct state matching aid.
12.32$2,500,000 the first year and $2,500,000
13.1the second year are for special direct state
13.2matching aid authorized under Minnesota
13.3Statutes, section 354A.12, subdivision 3b.
| 13.4 13.5 |
Sec. 31. ST. PAUL TEACHERS RETIREMENT FUND |
$ |
2,827,000 |
$ |
2,827,000 |
||
13.7special direct state aid to first class city
13.8teachers retirement funds authorized under
13.9Minnesota Statutes, section
13.10subdivisions 3a and 3c.
| 13.11 13.12 |
Sec. 32. DULUTH TEACHERS RETIREMENT FUND |
$ |
346,000 |
$ |
346,000 |
||
13.14special direct state aid to first class city
13.15teachers retirement funds authorized under
13.16Minnesota Statutes, section
13.17subdivisions 3a and 3c.
| 13.18 |
Sec. 33. STATE LOTTERY |
||||||
13.20
13.21must not exceed $29,000,000 in fiscal year
13.222012 and $29,000,000 in fiscal year 2013.
| 13.23 13.24 |
Sec. 34. GENERAL CONTINGENT ACCOUNTS |
$ |
600,000 |
$ |
500,000 |
||
| 13.25 |
Appropriations by Fund |
||
| 13.26 |
2012 |
2013 |
|
| 13.27 |
General |
100,000 |
-0- |
| 13.28 13.29 |
State Government Special Revenue |
400,000 |
400,000 |
| 13.30 13.31 |
Workers' Compensation |
100,000 |
100,000 |
13.33may only be spent with the approval of
13.34the governor after consultation with the
14.1Legislative Advisory Commission pursuant
14.2to Minnesota Statutes, section 3.30.
14.3(b) If an appropriation in this section for
14.4either year is insufficient, the appropriation
14.5for the other year is available for it.
14.6(c) If a contingent account appropriation
14.7is made in one fiscal year, it should be
14.8considered a biennial appropriation.
14.9 Sec. 35. Laws 2009, chapter 101, article 2, section 106, is amended to read:
14.10 Sec. 106. ENTERPRISE REAL PROPERTY CONTRIBUTIONS.
14.11On or before June 1, 2009, the commissioner of administration shall determine the
14.12amount to be contributed by each executive agency to maintain the enterprise real property
14.13technology system for the fiscal year 2010 and fiscal year 2011 biennium. On or before
14.14June 15, 2009, each executive agency shall enter into an agreement with the commissioner
14.15of administration setting forth the manner in which the executive agency shall make its
14.16contribution to the enterprise real property system, either from uncommitted fiscal year
14.172009 funds or by contributing from fiscal year 2010 and fiscal year 2011 funds to the real
14.18property enterprise system and services account to fund the total amount of $399,000 for
14.19the biennium. Funds will be available for the enterprise real property technology project
14.20until June 30, 2013. Funds contributed under this section must be credited to the enterprise
14.21real property technology system and services account.
14.22EFFECTIVE DATE.This section is effective the day following final enactment.
14.23 Sec. 36. PROBLEM GAMBLING APPROPRIATION.
14.24$225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from
14.25the lottery prize fund to the Gambling Control Board for a grant to the state affiliate
14.26recognized by the National Council on Problem Gambling. The affiliate must provide
14.27services to increase public awareness of problem gambling, education and training for
14.28individuals and organizations providing effective treatment services to problem gamblers
14.29and their families, and research relating to problem gambling. These services must be
14.30complementary to and not duplicative of the services provided through the problem
14.31gambling program administered by the commissioner of human services. Of this
14.32appropriation, $50,000 in fiscal year 2012 and $50,000 in fiscal year 2013 are contingent
14.33on the contribution of nonstate matching funds. Matching funds may be either cash or
15.1qualifying in-kind contributions. The commissioner of management and budget may
15.2disburse the state portion of the matching funds in increments of $25,000 upon receipt
15.3of a commitment for an equal amount of matching nonstate funds. These are onetime
15.4appropriations.
15.5 Sec. 37. APPROPRIATION; REIMBURSEMENT OF RECOUNT COSTS.
15.6$322,000 is appropriated from the general fund to the secretary of state in fiscal year
15.72011 for the reimbursement of costs of recounts during the 2010 general election, to be
15.8paid to counties consistent with the cost survey of the counties previously conducted
15.9by the secretary of state and for reimbursement to the secretary of state costs in those
15.10recounts already paid by the secretary of state to the counties. This appropriation remains
15.11available until December 31, 2011.
15.12EFFECTIVE DATE.This section is effective the day following final enactment.
15.13 Sec. 38. APPROPRIATION; PAYMENT OF LEGAL FEES.
15.14$148,375 is appropriated from the general fund to the secretary of state in fiscal
15.15year 2011 for the payment of legal fees imposed by the United States District Court,
15.16District of Minnesota, in the case of American Broadcasting Companies, Inc. et al v.
15.17Mark Ritchie et al. (Case 08-cv-5285-MJD-AJB). This appropriation remains available
15.18until June 30, 2013.
15.19EFFECTIVE DATE.This section is effective the day following final enactment.
15.20 Sec. 39. SAVINGS; APPROPRIATION REDUCTION FOR EXECUTIVE
15.21AGENCIES.
15.22The commissioner of management and budget must reduce general fund
15.23appropriations to executive agencies, including constitutional offices, for agency
15.24operations for the biennium ending June 30, 2013, by $94,875,000. The Minnesota State
15.25Colleges and Universities is not an executive agency for purposes of this section. The
15.26commissioner must not reduce appropriations to the Department of Veterans Affairs or the
15.27Department of Military Affairs except to the extent the commissioner determines there
15.28are savings directly attributable to items specified in clauses (2), (4), (5), and (6). To
15.29the greatest extent possible, these reductions must come from savings provided by the
15.30reforms, efficiencies, and cost-savings measures contained in this act, including:
15.31(1) reduction in the number of full-time equivalent employees;
15.32(2) salary and benefit changes;
16.1(3) elimination of deputy and assistant commissioner positions;
16.2(4) consolidation of responsibilities for executive branch information technology
16.3systems;
16.4(5) operational efficiencies and cost savings obtained under contracts with vendors;
16.5and
16.6(6) verification of dependent eligibility for state employee group insurance coverage.
16.7If operational efficiencies and cost savings obtained under contracts with vendors
16.8yield savings in dedicated funds other than those established in the state constitution or
16.9protected by federal law, the commissioner of management and budget may transfer
16.10the amount of savings to the general fund. Reductions made in 2013 must be reflected
16.11as reductions in agency base budgets for fiscal years 2014 and 2015. The commissioner
16.12of management and budget must report to the chairs and ranking minority members of
16.13the senate Finance Committee and the house of representatives Ways and Means and
16.14Finance Committees regarding the amount of reductions in spending by each agency
16.15under this section.
16.16 Sec. 40. REPORTS.
16.17By January 15, 2012, and January 15, 2013, the Minnesota Humanities Commission,
16.18Council on Black Minnesotans, Council on Asian-Pacific Minnesotans, Council on Affairs
16.19of Chicano/Latino People, and Indian Affairs Council must each report to the chairs
16.20and ranking minority members of the legislative committees with jurisdiction over the
16.21groups. The reports must describe the results obtained with the appropriations in this act,
16.22including a description and evaluation of how the groups accomplished their statutory
16.23duties in the preceding year.
| 16.26 |
Section 1. APPROPRIATIONS. |
||||||
16.28agencies and for the purposes specified in this article. The appropriations are from the
16.29general fund and are available for the fiscal years indicated for each purpose. The figures
16.30"2012" and "2013" used in this article mean that the appropriations listed under them are
16.31available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The
16.32first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is
16.33fiscal years 2012 and 2013.
| 17.1 |
APPROPRIATIONS |
||||||
| 17.2 |
Available for the Year |
||||||
| 17.3 |
Ending June 30 |
||||||
| 17.4 |
2012 |
2013 |
|||||
| 17.5 |
Sec. 2. MILITARY AFFAIRS |
||||||
| 17.6 |
Subdivision 1.Total Appropriation |
$ |
22,371,000 |
$ |
19,371,000 |
||
17.8purpose are specified in the following
17.9subdivisions.
| 17.10 |
Subd. 2.Maintenance of Training Facilities |
6,660,000 |
6,660,000 |
||||
| 17.11 |
Subd. 3.General Support |
2,363,000 |
2,363,000 |
||||
| 17.12 |
Subd. 4.Enlistment Incentives |
13,348,000 |
10,348,000 |
||||
17.14costs of enlistment incentives.
17.15If appropriations for either year of the
17.16biennium are insufficient, the appropriation
17.17from the other year is available. The
17.18appropriations for enlistment incentives are
17.19available until expended.
| 17.20 |
Sec. 3. VETERANS AFFAIRS |
||||||
| 17.21 |
Subdivision 1.Total Appropriation |
$ |
57,795,000 |
$ |
58,595,000 |
||
| 17.22 |
Appropriations by Fund |
||
| 17.23 |
2012 |
2013 |
|
| 17.24 |
General |
57,695,000 |
58,595,000 |
| 17.25 |
Special Revenue |
100,000 |
-0- |
17.27purpose are specified in the following
17.28subdivisions.
| 17.29 |
Subd. 2.Veterans Services |
13,879,000 |
13,779,000 |
||||
| 17.30 |
Appropriations by Fund |
||
| 17.31 |
2012 |
2013 |
|
| 17.32 |
General |
13,779,000 |
13,779,000 |
| 17.33 |
Special Revenue |
100,000 |
-0- |
18.2"Support Our Troops" account established
18.3under Minnesota Statutes, section 190.19,
18.4subdivision 2a, for a grant to the Minnesota
18.5Assistance Council for Veterans. This is a
18.6onetime appropriation.
18.7$945,000 each year is for the higher
18.8education veterans assistance program under
18.9Minnesota Statutes, section 197.585.
18.10$100,000 each year is for the costs of
18.11administering the Minnesota GI Bill program
18.12under Minnesota Statutes, section 197.791.
18.13$353,000 each year is for grants to the
18.14following congressionally chartered veterans
18.15service organizations, as designated by the
18.16commissioner: Disabled American Veterans,
18.17Military Order of the Purple Heart, the
18.18American Legion, Veterans of Foreign Wars,
18.19Vietnam Veterans of America, AMVETS,
18.20and Paralyzed Veterans of America. This
18.21funding must be allocated in direct proportion
18.22to the funding currently being provided by
18.23the commissioner to these organizations.
| 18.24 |
Subd. 3.Veterans Homes |
43,916,000 |
44,816,000 |
||||
18.26The general fund appropriations made to
18.27the department may be transferred to a
18.28veterans homes special revenue account in
18.29the special revenue fund in the same manner
18.30as other receipts are deposited according
18.31to Minnesota Statutes, section 198.34, and
18.32are appropriated to the department for the
18.33operation of veterans homes facilities and
18.34programs.
19.1Fergus Falls Veterans Home. Of the
19.2general fund appropriation, $738,000 in
19.3fiscal year 2013 is for operation of a new
19.421-bed specialty care/Alzheimer's unit at the
19.5Minnesota Veterans Home in Fergus Falls.
19.6Base funding for this program is $842,000 in
19.7fiscal years 2014 and 2015.
19.8Minneapolis Veterans Home. Of the
19.9general fund appropriation, $162,000 in
19.10fiscal year 2013 is for operation of a new
19.11adult day care program at the Minnesota
19.12Veterans Home in Minneapolis. Base
19.13funding for this program is $232,000 in fiscal
19.14years 2014 and 2015.
19.15Veterans Homes Service Redesign.
19.16$551,000 in fiscal year 2012 and $801,000 in
19.17fiscal year 2013, generated from additional
19.18nongeneral fund revenue and cost savings
19.19from operating efficiencies, are to be used to
19.20support the operational needs of the five state
19.21veterans homes.
19.22 Sec. 4. Laws 2010, chapter 215, article 6, section 4, is amended to read:
| 19.23 |
Sec. 4. VETERANS HOMES |
||||||
19.2594, article 3, section 2, subdivision 3, or from
19.26funds carried forward from fiscal year 2009:
19.27(1)
19.28is for operational expenses related to the
19.2921-bed addition at the Fergus Falls Veterans
19.30Home; and
19.31(2)
19.32for start-up expenses related to the opening of
20.1an adult daycare facility at the Minneapolis
20.2Veterans Home.
20.3An appropriation in this section that is
20.4unspent at the end of fiscal year 2011 carries
20.5forward and is available in fiscal year 2012.
20.6EFFECTIVE DATE.This section is effective the day following final enactment.
20.7 Sec. 5. REPEALER.
20.8Minnesota Statutes 2010, section 197.585, subdivision 5, is repealed.
20.9EFFECTIVE DATE.This section is effective the day following final enactment.
20.12 Section 1. Minnesota Statutes 2010, section 3.85, subdivision 3, is amended to read:
20.13 Subd. 3. Membership. The commission consists of
20.14senate appointed by the Subcommittee on Committees of the Committee on Rules and
20.15Administration and
20.16the speaker. No more than five members from each chamber may be from the majority
20.17caucus in that chamber. Members shall be appointed at the commencement of each regular
20.18session of the legislature for a two-year term beginning January 16 of the first year of the
20.19regular session. Members continue to serve until their successors are appointed. Vacancies
20.20that occur while the legislature is in session shall be filled like regular appointments. If the
20.21legislature is not in session, senate vacancies shall be filled by the last Subcommittee on
20.22Committees of the senate Committee on Rules and Administration or other appointing
20.23authority designated by the senate rules, and house of representatives vacancies shall be
20.24filled by the last speaker of the house, or if the speaker is not available, by the last chair of
20.25the house of representatives Rules Committee.
20.26EFFECTIVE DATE.This section is effective January 16, 2013.
20.27 Sec. 2. [3D.01] SHORT TITLE.
20.28This chapter may be cited as the "Minnesota Sunset Act."
20.29 Sec. 3. [3D.02] DEFINITIONS.
20.30 Subdivision 1. Scope. The definitions in this section apply to this chapter.
21.1 Subd. 2. Advisory committee. "Advisory committee" means a committee, council,
21.2commission, or other entity created under state law whose primary function is to advise
21.3a state agency.
21.4 Subd. 3. Commission. "Commission" means the Sunset Advisory Commission.
21.5 Subd. 4. State agency. "State agency" means an agency expressly made subject
21.6to this chapter.
21.7 Sec. 4. [3D.03] SUNSET ADVISORY COMMISSION.
21.8 Subdivision 1. Membership. (a) The Sunset Advisory Commission consists of 12
21.9members appointed as follows:
21.10(1) five senators and one public member, appointed according to the rules of the
21.11senate, with no more than three senators from the majority caucus; and
21.12(2) five members of the house of representatives and one public member, appointed
21.13by the speaker of the house, with no more than three of the house of representatives
21.14members from the majority caucus.
21.15(b) The first members of the Sunset Advisory Commission must be appointed before
21.16September 1, 2011, for terms ending the first Monday in January 2013.
21.17 Subd. 2. Public member restrictions. An individual is not eligible for appointment
21.18as a public member if the individual or the individual's spouse is:
21.19(1) regulated by a state agency that the commission will review during the term for
21.20which the individual would serve;
21.21(2) employed by, participates in the management of, or directly or indirectly has
21.22more than a ten percent interest in a business entity or other organization regulated by a
21.23state agency the commission will review during the term for which the individual would
21.24serve; or
21.25(3) required to register as a lobbyist under chapter 10A because of the person's
21.26activities for compensation on behalf of a profession or entity related to the operation of
21.27an agency under review.
21.28 Subd. 3. Removal. (a) It is a ground for removal of a public member from the
21.29commission if the member does not have the qualifications required by subdivision 2
21.30for appointment to the commission at the time of appointment or does not maintain the
21.31qualifications while serving on the commission. The validity of the commission's action is
21.32not affected by the fact that it was taken when a ground for removal of a public member
21.33from the commission existed.
21.34(b) Except as provided in paragraph (a), a public member may be removed only as
21.35provided in section 15.0575, subdivision 4.
22.1 Subd. 4. Terms. Legislative members serve at the pleasure of the appointing
22.2authority. Public members serve two-year terms expiring the first Monday in January of
22.3each odd-numbered year.
22.4 Subd. 5. Limits. Members are subject to the following restrictions:
22.5(1) after an individual serves four years on the commission, the individual is not
22.6eligible for appointment to another term or part of a term;
22.7(2) a legislative member who serves a full term may not be appointed to an
22.8immediately succeeding term; and
22.9(3) a public member may not serve consecutive terms, and, for purposes of this
22.10prohibition, a member is considered to have served a term only if the member has served
22.11more than one-half of the term.
22.12 Subd. 6. Appointments. Appointments must be made before the second Monday of
22.13January of each odd-numbered year.
22.14 Subd. 7. Legislative members. If a legislative member ceases to be a member
22.15of the legislative body from which the member was appointed, the member vacates
22.16membership on the commission.
22.17 Subd. 8. Vacancies. If a vacancy occurs, the appointing authority shall appoint a
22.18person to serve for the remainder of the unexpired term in the same manner as the original
22.19appointment.
22.20 Subd. 9. Officers. The commission shall have a chair and vice-chair as presiding
22.21officers.
22.22 Subd. 10. Quorum; voting. Seven members of the commission constitute a
22.23quorum. A final action or recommendation may not be made unless approved by a
22.24recorded vote of at least seven members. All other actions by the commission shall be
22.25decided by a majority of the members present and voting.
22.26 Subd. 11. Compensation. Each public member shall be reimbursed for expenses
22.27as provided in section 15.0575. Compensation for legislators is as determined by the
22.28members' legislative chamber.
22.29 Sec. 5. [3D.04] STAFF.
22.30The Legislative Coordinating Commission shall provide staff and administrative
22.31services for the commission.
22.32 Sec. 6. [3D.05] RULES.
22.33The commission may adopt rules necessary to carry out this chapter.
23.1 Sec. 7. [3D.06] AGENCY REPORT TO COMMISSION.
23.2Before September 1 of the odd-numbered year before the year in which a state
23.3agency is sunset, the agency commissioner shall report to the commission:
23.4(1) information regarding the application to the agency of the criteria in section
23.53D.10;
23.6(2) a priority-based budget for the agency;
23.7(3) an inventory of all boards, commissions, committees, and other entities related
23.8to the agency; and
23.9(4) any other information that the agency commissioner considers appropriate or that
23.10is requested by the commission.
23.11 Sec. 8. [3D.07] COMMISSION DUTIES.
23.12Before January 1 of the year in which a state agency subject to this chapter and its
23.13advisory committees are sunset, the commission shall:
23.14(1) review and take action necessary to verify the reports submitted by the agency;
23.15and
23.16(2) conduct a review of the agency based on the criteria provided in section 3D.10
23.17and prepare a written report.
23.18 Sec. 9. [3D.08] PUBLIC HEARINGS.
23.19Before February 1 of the year a state agency subject to this chapter and its advisory
23.20committees are sunset, the commission shall conduct public hearings concerning but not
23.21limited to the application to the agency of the criteria provided in section 3D.10.
23.22 Sec. 10. [3D.09] COMMISSION REPORT.
23.23By February 1 of each even-numbered year, the commission shall present to the
23.24legislature and the governor a report on the agencies and advisory committees reviewed.
23.25In the report the commission shall include:
23.26(1) its findings regarding the criteria prescribed by section 3D.10;
23.27(2) its recommendations based on the matters prescribed by section 3D.11; and
23.28(3) other information the commission considers necessary for a complete review
23.29of the agency.
23.30 Sec. 11. [3D.10] CRITERIA FOR REVIEW.
23.31The commission and its staff shall consider the following criteria in determining
23.32whether a public need exists for the continuation of a state agency or its advisory
24.1committees or for the performance of the functions of the agency or its advisory
24.2committees:
24.3(1) the efficiency and effectiveness with which the agency or the advisory committee
24.4operates;
24.5(2) an identification of the mission, goals, and objectives intended for the agency or
24.6advisory committee and of the problem or need that the agency or advisory committee
24.7was intended to address and the extent to which the mission, goals, and objectives have
24.8been achieved and the problem or need has been addressed;
24.9(3) an identification of any activities of the agency in addition to those granted by
24.10statute and of the authority for those activities and the extent to which those activities
24.11are needed;
24.12(4) an assessment of authority of the agency relating to fees, inspections,
24.13enforcement, and penalties;
24.14(5) whether less restrictive or alternative methods of performing any function that
24.15the agency performs could adequately protect or provide service to the public;
24.16(6) the extent to which the jurisdiction of the agency and the programs administered
24.17by the agency overlap or duplicate those of other agencies, the extent to which the agency
24.18coordinates with those agencies, and the extent to which the programs administered by the
24.19agency can be consolidated with the programs of other state agencies;
24.20(7) the promptness and effectiveness with which the agency addresses complaints
24.21concerning entities or other persons affected by the agency, including an assessment of the
24.22agency's administrative hearings process;
24.23(8) an assessment of the agency's rulemaking process and the extent to which the
24.24agency has encouraged participation by the public in making its rules and decisions and
24.25the extent to which the public participation has resulted in rules that benefit the public;
24.26(9) the extent to which the agency has complied with federal and state laws and
24.27applicable rules regarding equality of employment opportunity and the rights and privacy
24.28of individuals, and state law and applicable rules of any state agency regarding purchasing
24.29guidelines and programs for historically underutilized businesses;
24.30(10) the extent to which the agency issues and enforces rules relating to potential
24.31conflicts of interest of its employees;
24.32(11) the extent to which the agency complies with chapter 13 and follows records
24.33management practices that enable the agency to respond efficiently to requests for public
24.34information; and
24.35(12) the effect of federal intervention or loss of federal funds if the agency is
24.36abolished.
25.1 Sec. 12. [3D.11] RECOMMENDATIONS.
25.2(a) In its report on a state agency, the commission shall:
25.3(1) make recommendations on the abolition, continuation, or reorganization of each
25.4affected state agency and its advisory committees and on the need for the performance of
25.5the functions of the agency and its advisory committees;
25.6(2) make recommendations on the consolidation, transfer, or reorganization of
25.7programs within state agencies not under review when the programs duplicate functions
25.8performed in agencies under review; and
25.9(3) make recommendations to improve the operations of the agency, its policy body,
25.10and its advisory committees, including management recommendations that do not require
25.11a change in the agency's enabling statute.
25.12(b) The commission shall include the estimated fiscal impact of its recommendations
25.13and may recommend appropriation levels for certain programs to improve the operations
25.14of the state agency.
25.15(c) The commission shall have drafts of legislation prepared to carry out the
25.16commission's recommendations under this section, including legislation necessary
25.17to continue the existence of agencies that would otherwise sunset if the commission
25.18recommends continuation of an agency.
25.19(d) After the legislature acts on the report under section 3D.09, the commission shall
25.20present to the legislative auditor the commission's recommendations that do not require
25.21a statutory change to be put into effect. Subject to the legislative audit commission's
25.22approval, the legislative auditor may examine the recommendations and include as part
25.23of the next audit of the agency a report on whether the agency has implemented the
25.24recommendations and, if so, in what manner.
25.25 Sec. 13. [3D.12] MONITORING OF RECOMMENDATIONS.
25.26During each legislative session, the staff of the commission shall monitor legislation
25.27affecting agencies that have undergone sunset review and shall periodically report
25.28to the members of the commission on proposed changes that would modify prior
25.29recommendations of the commission.
25.30 Sec. 14. [3D.13] REVIEW OF ADVISORY COMMITTEES.
25.31An advisory committee, the primary function of which is to advise a particular state
25.32agency, is subject to sunset on the date set for sunset of the agency unless the advisory
25.33committee is expressly continued by law.
26.1 Sec. 15. [3D.14] CONTINUATION BY LAW.
26.2During the regular session immediately before the sunset of a state agency or an
26.3advisory committee that is subject to this chapter, the legislature may enact legislation
26.4to continue the agency or advisory committee for a period not to exceed 12 years. This
26.5chapter does not prohibit the legislature from:
26.6(1) terminating a state agency or advisory committee subject to this chapter at a date
26.7earlier than that provided in this chapter; or
26.8(2) considering any other legislation relative to a state agency or advisory committee
26.9subject to this chapter.
26.10 Sec. 16. [3D.15] PROCEDURE AFTER TERMINATION.
26.11 Subdivision 1. Termination. Unless otherwise provided by law:
26.12(1) if after sunset review a state agency is abolished, the agency may continue in
26.13existence until June 30 of the following year to conclude its business;
26.14(2) abolishment does not reduce or otherwise limit the powers and authority of the
26.15state agency during the concluding year;
26.16(3) a state agency is terminated and shall cease all activities at the expiration of
26.17the one-year period; and
26.18(4) all rules that have been adopted by the state agency expire at the expiration of
26.19the one-year period.
26.20 Subd. 2. Funds of abolished agency or advisory committee. (a) Any unobligated
26.21and unexpended appropriations of an abolished agency or advisory committee lapse on
26.22June 30 of the year after abolishment.
26.23(b) Except as provided by subdivision 4 or as otherwise provided by law, all money
26.24in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
26.25year after abolishment is transferred to the general fund. The part of the law dedicating
26.26the money to a specific fund of an abolished agency becomes void on June 30 of the year
26.27after abolishment.
26.28 Subd. 3. Property and records of abolished agency or advisory committee.
26.29Unless the governor designates an appropriate state agency as prescribed by subdivision 4,
26.30property and records in the custody of an abolished state agency or advisory committee
26.31on June 30 of the year after abolishment must be transferred to the commissioner of
26.32administration. If the governor designates an appropriate state agency, the property and
26.33records must be transferred to the designated state agency.
26.34 Subd. 4. Continuing obligations. (a) The legislature recognizes the state's
26.35continuing obligation to pay bonded indebtedness and all other obligations, including
27.1lease, contract, and other written obligations, incurred by a state agency or advisory
27.2committee abolished under this chapter, and this chapter does not impair or impede the
27.3payment of bonded indebtedness and all other obligations, including lease, contract, and
27.4other written obligations, in accordance with their terms. If an abolished state agency or
27.5advisory committee has outstanding bonded indebtedness or other outstanding obligations,
27.6including lease, contract, and other written obligations, the bonds and all other obligations,
27.7including lease, contract, and other written obligations, remain valid and enforceable in
27.8accordance with their terms and subject to all applicable terms and conditions of the laws
27.9and proceedings authorizing the bonds and all other obligations, including lease, contract,
27.10and other written obligations.
27.11(b) The governor shall designate an appropriate state agency that shall continue to
27.12carry out all covenants contained in the bonds and in all other obligations, including lease,
27.13contract, and other written obligations, and the proceedings authorizing them, including
27.14the issuance of bonds, and the performance of all other obligations, including lease,
27.15contract, and other written obligations, to complete the construction of projects or the
27.16performance of other obligations, including lease, contract, and other written obligations.
27.17(c) The designated state agency shall provide payment from the sources of payment
27.18of the bonds in accordance with the terms of the bonds and shall provide payment from
27.19the sources of payment of all other obligations, including lease, contract, and other written
27.20obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
27.21until the bonds and interest on the bonds are paid in full and all other obligations,
27.22including lease, contract, and other written obligations, are performed and paid in full.
27.23If the proceedings so provide, all funds established by laws or proceedings authorizing
27.24the bonds or authorizing other obligations, including lease, contract, and other written
27.25obligations, must remain with the comptroller or the previously designated trustees. If the
27.26proceedings do not provide that the funds remain with the comptroller or the previously
27.27designated trustees, the funds must be transferred to the designated state agency.
27.28 Sec. 17. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
27.29The commission may request the assistance of state agencies and officers. When
27.30assistance is requested, a state agency or officer shall assist the commission. In carrying
27.31out its functions under this chapter, the commission or its designated staff member may
27.32inspect the records, documents, and files of any state agency.
27.33 Sec. 18. [3D.17] RELOCATION OF EMPLOYEES.
28.1If an employee is displaced because a state agency or its advisory committee is
28.2abolished or reorganized, the state agency shall make a reasonable effort to relocate the
28.3displaced employee.
28.4 Sec. 19. [3D.18] SAVING PROVISION.
28.5Except as otherwise expressly provided, abolition of a state agency does not affect
28.6rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
28.7arose, or proceedings that were begun before the effective date of the abolition.
28.8 Sec. 20. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
28.9AGENCY.
28.10Each bill filed in a house of the legislature that would create a new state agency or
28.11a new advisory committee to a state agency shall be reviewed by the commission. The
28.12commission shall review the bill to determine if:
28.13(1) the proposed functions of the agency or committee could be administered by one
28.14or more existing state agencies or advisory committees;
28.15(2) the form of regulation, if any, proposed by the bill is the least restrictive form of
28.16regulation that will adequately protect the public;
28.17(3) the bill provides for adequate public input regarding any regulatory function
28.18proposed by the bill; and
28.19(4) the bill provides for adequate protection against conflicts of interest within
28.20the agency or committee.
28.21 Sec. 21. [3D.20] GIFTS AND GRANTS.
28.22The commission may accept gifts, grants, and donations from any organization
28.23described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding
28.24any activity under this chapter. All gifts, grants, and donations must be accepted in an
28.25open meeting by a majority of the voting members of the commission and reported in the
28.26public record of the commission with the name of the donor and purpose of the gift, grant,
28.27or donation. Money received under this section is appropriated to the commission.
28.28 Sec. 22. [3D.21] EXPIRATION.
28.29 Subdivision 1. Group 1. The following agencies are sunset and expire on June
28.3030, 2012: Department of Health, Department of Human Rights, Department of Human
28.31Services, all health-related licensing boards listed in section 214.01, Council on Affairs
28.32of Chicano/Latino People, Council on Black Minnesotans, Council on Asian-Pacific
29.1Minnesotans, Indian Affairs Council, Council on Disabilities, and all advisory groups
29.2associated with these agencies.
29.3 Subd. 2. Group 2. The following agencies are sunset and expire on June 30, 2014:
29.4Department of Education, Board of Teaching, Minnesota Office of Higher Education, and
29.5all advisory groups associated with these agencies.
29.6 Subd. 3. Group 3. The following agencies are sunset and expire on June 30, 2016:
29.7Department of Commerce, Department of Employment and Economic Development,
29.8Department of Labor and Industry, all non-health-related licensing boards listed in
29.9section 214.01 except as otherwise provided in this section, Explore Minnesota Tourism,
29.10Public Utilities Commission, Iron Range Resources and Rehabilitation Board, Bureau of
29.11Mediation Services, Combative Sports Commission, Amateur Sports Commission, and all
29.12advisory groups associated with these agencies.
29.13 Subd. 4. Group 4. The following agencies are sunset and expire on June 30, 2018:
29.14Department of Corrections, Department of Public Safety, Department of Transportation,
29.15Peace Officer Standards and Training Board, Corrections Ombudsman, and all advisory
29.16groups associated with these agencies.
29.17 Subd. 5. Group 5. The following agencies are sunset and expire on June 30, 2020:
29.18Department of Agriculture, Department of Natural Resources, Pollution Control Agency,
29.19Board of Animal Health, Board of Water and Soil Resources, and all advisory groups
29.20associated with these agencies.
29.21 Subd. 6. Group 6. The following agencies are sunset and expire on June 30, 2022:
29.22Department of Administration, Department of Management and Budget, Department of
29.23Military Affairs, Department of Revenue, Department of Veterans Affairs, Arts Board,
29.24Minnesota Zoo, Office of Administrative Hearings, Campaign Finance and Public
29.25Disclosure Board, Capitol Area Architectural and Planning Board, Office of Enterprise
29.26Technology, Minnesota Racing Commission, and all advisory groups associated with
29.27these agencies.
29.28 Subd. 7. Continuation. Following sunset review of an agency, the legislature may
29.29act within the same legislative session in which the sunset report was received on Sunset
29.30Advisory Commission recommendations to continue or reorganize the agency.
29.31 Subd. 8. Other groups. The commission may review, under the criteria in
29.32section 3D.10, and propose to the legislature an expiration date for any agency, board,
29.33commission, or program not listed in this section.
29.34 Sec. 23. Minnesota Statutes 2010, section 6.48, is amended to read:
29.356.48 EXAMINATION OF COUNTIES; COST, FEES.
30.1(a) All the powers and duties conferred and imposed upon the state auditor shall
30.2be exercised and performed by the state auditor in respect to the offices, institutions,
30.3public property, and improvements of several counties of the state. At least once in each
30.4year, if funds and personnel permit, the state auditor may visit, without previous notice,
30.5each county and make a thorough examination of all accounts and records relating to the
30.6receipt and disbursement of the public funds and the custody of the public funds and
30.7other property. If the audit is performed by a private certified public accountant, the state
30.8auditor may require additional information from the private certified public accountant as
30.9the state auditor deems in the public interest. The state auditor may accept the audit or
30.10make additional examinations as the state auditor deems to be in the public interest. The
30.11state auditor shall prescribe and install systems of accounts and financial reports that shall
30.12be uniform, so far as practicable, for the same class of offices. A copy of the report of
30.13such examination shall be filed and be subject to public inspection in the office of the state
30.14auditor and another copy in the office of the auditor of the county thus examined. The state
30.15auditor may accept the records and audit, or any part thereof, of the Department of Human
30.16Services in lieu of examination of the county social welfare funds, if such audit has been
30.17made within any period covered by the state auditor's audit of the other records of the
30.18county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
30.19in any office of such county, such report shall be filed with the county attorney of the
30.20county, and the county attorney shall institute such civil and criminal proceedings as the
30.21law and the protection of the public interests shall require.
30.22(b) The county receiving any examination shall pay to the state general fund,
30.23notwithstanding the provisions of section
30.24examinations, including the salaries paid to the examiners while actually engaged in
30.25making such examination. The state auditor on deeming it advisable may bill counties,
30.26having a population of 200,000 or over, monthly for services rendered and the officials
30.27responsible for approving and paying claims shall cause said bill to be promptly paid. The
30.28general fund shall be credited with all collections made for any such examinations.
30.29(c) Notwithstanding paragraph (a), a county may provide for an audit to be performed
30.30by a certified public accountant firm meeting the requirements of section 326A.05.
30.31A county must notify the state auditor before August 1 of the even-numbered year
30.32immediately preceding the year in which the county intends to have an audit performed by
30.33a certified public accounting firm. A county currently using a certified public accounting
30.34firm must notify the state auditor before August 1 of the even-numbered year immediately
30.35preceding the year in which the county intends for the state auditor to audit the county.
30.36The audit performed under this paragraph must meet the standards and be in the form
31.1required by the state auditor. The state auditor may require additional information from
31.2the certified public accountant firm as the state auditor deems in the public interest, but the
31.3state auditor must accept the audit unless the state auditor determines that it does not meet
31.4recognized industry auditing standards or is not in the form required by the state auditor.
31.5 Sec. 24. Minnesota Statutes 2010, section 15.057, is amended to read:
31.615.057 PUBLICITY REPRESENTATIVES AND LEGISLATIVE LIAISONS.
31.7 Subdivision 1. Publicity representatives. No state department, bureau, or division,
31.8whether the same operates on funds appropriated or receipts or fees of any nature
31.9whatsoever, except the Department of Transportation, the Department of Employment
31.10and Economic Development, the Game and Fish Division, State Agricultural Society, and
31.11Explore Minnesota Tourism shall use any of such funds for the payment of the salary or
31.12expenses of a publicity representative. The head of any such department, bureau, or
31.13division shall be personally liable for funds used contrary to this provision. This
31.14subdivision shall not be construed, however, as preventing any such department, bureau,
31.15or division from sending out any bulletins or other publicity required by any state law or
31.16necessary for the satisfactory conduct of the business for which such department, bureau,
31.17or division was created.
31.18 Subd. 2. Legislative liaisons. No state agency may use any money appropriated to
31.19it for the salary or expenses of an individual serving as a liaison for the legislative affairs
31.20of the agency. This subdivision does not prevent any employee of a state agency from
31.21providing information requested by legislators and providing testimony at legislative
31.22hearings.
31.23 Sec. 25. Minnesota Statutes 2010, section 15.06, subdivision 8, is amended to read:
31.24 Subd. 8. Number of deputy commissioners; no assistant commissioners.
31.25
31.26Department of Veterans Affairs, no department or agency specified in subdivision 1 shall
31.27have more than one deputy commissioner. Except for the Department of Veterans Affairs,
31.28no department or agency specified in subdivision 1 may employ an assistant commissioner.
31.29 Sec. 26. [15.062] EMPLOYEE COMPETITION FOR STATE BUSINESS.
31.30If an agency decides to seek an outside vendor to perform work currently done by
31.31state employees, the agency must permit groups of state employees to compete for the
31.32business by submitting responses to the agency's solicitation documents. Notwithstanding
31.33section 16A.127 or any other law to the contrary, no statewide or agency indirect costs
32.1may be assessed to a group of agency employees with respect to work performed under
32.2a contract awarded to a group of employees under this section. This section supersedes
32.3any provision of law preventing a state agency from entering into a contract with a state
32.4employee.
32.5 Sec. 27. [15.76] SAVI PROGRAM.
32.6 Subdivision 1. Program established. The state agency value initiative (SAVI)
32.7program is established to encourage state agencies to identify cost-effective and efficiency
32.8measures in agency programs and operations that result in cost savings for the state. All
32.9state agencies, including Minnesota State Colleges and Universities, may participate in
32.10this program.
32.11 Subd. 2. Retained savings. (a) In order to encourage innovation and creative
32.12cost savings by state employees, upon approval of the commissioner of management
32.13and budget, 50 percent of any appropriations for agency operations that remain unspent
32.14at the end of a biennium because of unanticipated innovation, efficiencies, or creative
32.15cost-savings may be carried forward and retained by the agency to fund specific agency
32.16proposals or projects. Agencies choosing to spend retained savings funds must ensure that
32.17project expenditures do not create future obligations beyond the amounts available from
32.18the retained savings. The retained savings must be used only to fund projects that directly
32.19support the agency's mission. This section does not restrict authority granted by other law
32.20to carry forward money for a different period or for different purposes.
32.21(b) This section supersedes any contrary provision of section 16A.28.
32.22 Subd. 3. Special peer review panel; review process. (a) Each participating agency
32.23must organize a peer review panel that will determine which proposal or project receives
32.24funding from the SAVI program. The peer review panel must be comprised of department
32.25employees who are credited with cost-savings initiatives and department managers. The
32.26ratio between managers and department employees must be balanced.
32.27(b) An agency may spend money for a project recommended for funding by the
32.28peer review panel after:
32.29(1) the agency has posted notice of spending for the proposed project on the agency
32.30Web site for at least 30 days; and
32.31(2) the commissioner of management and budget has approved spending money
32.32from the SAVI account for the project.
32.33(c) Before approving a project, the commissioner of management and budget
32.34must submit the request to the Legislative Advisory Commission for its review and
32.35recommendation. Upon receiving a request from the commissioner, the Legislative
33.1Advisory Commission shall post notice of the request on a legislative Web site for at least
33.230 days. Failure of the commission to make a recommendation within this 30-day period
33.3is considered a negative recommendation. A recommendation of the commission must be
33.4made at a meeting of the commission unless a written recommendation is signed by all
33.5the members entitled to vote on the item.
33.6 Subd. 4. SAVI-dedicated account. Each agency that participates in the SAVI
33.7program shall have a SAVI-dedicated account in the special revenue fund, or other
33.8appropriate fund as determined by the commissioner of management and budget, into
33.9which the agency's savings are deposited. The agency will manage and review projects
33.10that are funded from this account. Money in the account is appropriated to the participating
33.11agency for purposes authorized by this section.
33.12 Subd. 5. Expiration. This section expires June 30, 2018.
33.13EFFECTIVE DATE.This section is effective June 30, 2013, and first applies to
33.14funds to be carried forward from the biennium ending June 30, 2013, to the biennium
33.15beginning July 1, 2013.
33.16 Sec. 28. Minnesota Statutes 2010, section 16A.10, subdivision 1a, is amended to read:
33.17 Subd. 1a. Purpose of performance data. Performance data shall be presented in
33.18the budget proposal to:
33.19(1) provide information so that the legislature can determine the extent to which
33.20state programs and activities are successful;
33.21(2) encourage agencies to develop clear and measurable goals and objectives for
33.22their programs and activities; and
33.23(3) strengthen accountability to Minnesotans by providing a record of state
33.24government's performance in providing effective and efficient services.
33.25 Sec. 29. Minnesota Statutes 2010, section 16A.10, subdivision 1b, is amended to read:
33.26 Subd. 1b. Performance data format. (a) As part of the budget proposal, agencies
33.27shall:
33.28(1) describe the goals and objectives of each agency program and activity; and
33.29(2) present performance data that measures the performance of programs and
33.30activities in meeting
33.31(b) Measures reported must be outcome-based and objective, and may include
33.32indicators of outputs, efficiency,
33.33each program and activity.
34.1(c) Agencies shall present as much historical information as needed to understand
34.2major trends and shall set targets for future performance issues
34.3
34.4would assist legislative review and decision making.
34.5(d) For purposes of this subdivision, subdivision 1a, and section 16A.106, the terms
34.6"program" and "activity" are used in the same manner as the terms are used in state
34.7budgeting. However, the commissioner may authorize an agency to define these terms in a
34.8different manner if that allows for a more effective presentation of performance data.
34.9 Sec. 30. Minnesota Statutes 2010, section 16A.10, subdivision 1c, is amended to read:
34.10 Subd. 1c. Performance measures for change items. For each change item in the
34.11budget proposal requesting new or increased funding, the budget document must present
34.12proposed performance measures that can be used to determine if the new or increased
34.13funding is accomplishing its goals. To the extent possible, each budget change item
34.14must identify relevant Minnesota Milestones and other statewide goals and indicators
34.15related to the proposed initiative.
34.16
34.17
34.18
34.19 Sec. 31. Minnesota Statutes 2010, section 16A.103, subdivision 1a, is amended to read:
34.20 Subd. 1a. Forecast parameters. The forecast must assume the continuation of
34.21current laws and reasonable estimates of projected growth in the national and state
34.22economies and affected populations. Revenue must be estimated for all sources provided
34.23for in current law. Expenditures must be estimated for all obligations imposed by law and
34.24those projected to occur as a result of variables outside the control of the legislature.
34.25Expenditures for the current biennium must be based on actual appropriations or, for
34.26forecasted programs, the amount needed to fund the formula in law. The base for
34.27expenditures projections for the next biennium is the amount appropriated in the second
34.28year of the current biennium, except as provided by other law, or, for forecasted programs,
34.29the amount needed to fund the formula in law. Expenditure estimates must not include an
34.30allowance for inflation.
34.31 Sec. 32. [16A.106] ZERO-BASED BUDGETING PRINCIPLES.
34.32(a) The detailed budget presented to the legislature must include:
35.1(1) a description of each budget activity for which the agency or entity receives
35.2an appropriation in the current biennium or for which the agency or entity requests an
35.3appropriation in the next biennium;
35.4(2) for each budget activity, three alternative funding levels or alternative ways of
35.5performing the budget activity, at least one of which is less than the previous biennium's
35.6actual expenditures for that budget activity, a summary of the priorities that would be
35.7accomplished within each level compared to a zero budget, and the additional increments
35.8of value that would be added by the higher funding levels compared to what would be
35.9accomplished if there were no funding for the activity; and
35.10(3) for each budget activity, performance data as specified in section 16A.10,
35.11subdivision 1b, the predicted effect of the three alternative funding levels on future
35.12performance, and also one or more measures of cost efficiency and effectiveness of
35.13program delivery, which must include comparisons to other states or entities with similar
35.14programs.
35.15(b) The commissioner's budget preparation guidelines and instructions must contain
35.16requirements, deadlines, and technical assistance to facilitate implementation of this
35.17section. After consultation with the legislative commission on planning and fiscal policy,
35.18the commissioner's instructions may establish parameters for the three alternative funding
35.19levels required in paragraph (a), clause (3).
35.20(c) The governor's recommendations must prioritize the budget activities within an
35.21agency or program area. To the extent activities in more than one agency or program area
35.22are meeting the same goals, the recommendations must prioritize budget activities across
35.23agencies or programs with the same goals, and this prioritization must include agencies or
35.24programs not subject to zero-based budgeting principles that biennium.
35.25(d) Expenditures for debt service under section 16A.641, subdivision 10, are not
35.26subject to zero-based budgeting principles.
35.27EFFECTIVE DATE.(a) The zero-based budgeting principles in this section first
35.28apply to the following budget proposals for the biennium beginning July 1, 2013:
35.29(1) legislative branch;
35.30(2) judicial branch;
35.31(3) Minnesota State Colleges and Universities system; and
35.32(4) approximately half of expenditure programs in the executive branch, designated
35.33by the governor, in consultation with the chairs and lead minority members of the senate
35.34Finance Committee and the house of representatives Ways and Means Committee.
35.35(b) The zero-based budgeting principles in this section apply to all budget proposals
35.36for the biennium beginning July 1, 2015, and after.
36.1 Sec. 33. Minnesota Statutes 2010, section 16A.11, subdivision 3, is amended to read:
36.2 Subd. 3. Part two: detailed budget. (a) Part two of the budget, the detailed budget
36.3estimates both of expenditures and revenues, must contain any statements on the financial
36.4plan which the governor believes desirable or which may be required by the legislature.
36.5The detailed estimates shall include the governor's budget arranged in tabular form.
36.6(b) For programs designated for the zero-based budgeting principles under section
36.716A.106, the budget must be prepared according to the requirements of that section.
36.8(c) For programs not designated for zero-based budgeting principles under section
36.916A.106, tables listing expenditures for the next biennium must show the appropriation
36.10base for each year as defined in section 16A.103, subdivision 1c.
36.11
36.12separately show any adjustments to the base required by current law or policies of the
36.13commissioner of management and budget. For forecasted programs, the tables must also
36.14show the amount of the forecast adjustments, based on the most recent forecast prepared
36.15by the commissioner of management and budget under section
36.16the tables must show the amount of appropriation changes recommended by the governor,
36.17after adjustments to the base and forecast adjustments, and the total recommendation of
36.18the governor for that year.
36.19
36.20professional and technical service contracts for the prior biennium and the projected costs
36.21of those contracts for the current and upcoming biennium. They must also include a
36.22summary of the personnel employed by the agency, reflected as full-time equivalent
36.23positions.
36.24
36.25full-time equivalents by program; detail on any loans from the general fund, including
36.26dollar amounts by program; proposed investments in technology or equipment of $100,000
36.27or more; an explanation of any operating losses or increases in retained earnings; and a
36.28history of the rates that have been charged, with an explanation of any rate changes and
36.29the impact of the rate changes on affected agencies.
36.30 Sec. 34. Minnesota Statutes 2010, section 16A.28, subdivision 3, is amended to read:
36.31 Subd. 3. Lapse. Any portion of any appropriation not carried forward and remaining
36.32unexpended and unencumbered at the close of a fiscal year lapses to the fund from which
36.33it was originally appropriated. Except as provided in section 15.76, any appropriation
36.34amounts not carried forward and remaining unexpended and unencumbered at the close of
36.35a biennium lapse to the fund from which the appropriation was made.
37.1EFFECTIVE DATE.This section is effective June 30, 2013.
37.2 Sec. 35. [16A.90] EMPLOYEE GAINSHARING SYSTEM.
37.3The commissioner shall establish a program to provide onetime bonus compensation
37.4to state employees for efforts made to reduce the costs of operating state government or for
37.5ways of providing better or more efficient state services. The commissioner may make a
37.6onetime award to an employee or group of employees whose suggestion or involvement in
37.7a project is determined by the commissioner to have resulted in documented cost-savings
37.8to the state. The maximum award is ten percent of the documented savings in the
37.9first fiscal year in which the savings are realized. The award must be paid from the
37.10appropriation to which the savings accrued.
37.11 Sec. 36. [16A.93] MINNESOTA PAY FOR PERFORMANCE ACT.
37.12Sections 16A.93 to 16A.96 may be cited as the "Minnesota Pay for Performance
37.13Act of 2011."
37.14EFFECTIVE DATE.This section is effective the day following final enactment.
37.15 Sec. 37. [16A.94] PROGRAM.
37.16 Subdivision 1. Pilot program established. The commissioner shall implement a
37.17pilot program to demonstrate the feasibility and desirability of using state appropriation
37.18bonds to pay for certain services based on performance and outcomes for the people served.
37.19 Subd. 2. Oversight committee. (a) The commissioner shall appoint an oversight
37.20committee to:
37.21(1) identify criteria to select one or more services to be included in the pilot program;
37.22(2) identify the conditions of performance and desired outcomes for the people
37.23served by each service selected;
37.24(3) identify criteria to evaluate whether a service has met the performance
37.25conditions; and
37.26(4) provide any other advice or assistance requested by the commissioner.
37.27(b) The oversight committee must include the commissioners of the Departments
37.28of Human Services, Employment and Economic Development, and Administration, or
37.29their designees; a representative of a nonprofit organization that has participated in a
37.30pay-for-performance program; and any other person or organization that the commissioner
37.31determines would be of assistance in developing and implementing the pilot program.
37.32 Subd. 3. Contracts. The commissioner and the commissioner of the agency with
37.33a service to be provided through the pilot program shall enter into a contract with the
38.1selected provider. The contract must specify the service to be provided, the time frame in
38.2which it is to be provided, the outcome required for payment, and any other terms deemed
38.3necessary or convenient for implementation of the pilot program. The commissioner
38.4shall pay a provider that has met the terms and conditions of a contract with money
38.5appropriated to the commissioner from the special appropriation bond proceeds account
38.6established in section 16A.96. At a minimum, before the commissioner pays a provider,
38.7the commissioner must determine that the state's return on investment is positive.
38.8 Subd. 4. Return on investment calculation. The commissioner, in consultation
38.9with the oversight committee, must establish the method and data required for calculating
38.10the state's return on investment. The data at a minimum must include:
38.11(1) state income taxes and any other revenues collected in the year after the service
38.12was provided that would not have been collected without the service; and
38.13(2) costs avoided by the state by providing the service.
38.14A positive return on investment for the state will cover the state's costs in financing
38.15and administering the pilot program through documented increased state tax revenue
38.16or cost avoidance.
38.17 Subd. 5. Report to governor and legislature. The commissioner must report to the
38.18governor and legislative committees with jurisdiction over capital investment, finance, and
38.19ways and means, and the services included in the pilot program, by January 15 of each
38.20year following a year in which the pilot program is operating. The report must describe
38.21and discuss the criteria for selection and evaluation of services to be provided through
38.22the program, the net benefits to the state of the program, the state's return on investment,
38.23the cost of the services provided by other means in the most recent past, the time frame
38.24for payment for the services, and the timing and costs for sale and issuance of the bonds
38.25authorized in section 16A.96.
38.26EFFECTIVE DATE.This section is effective the day following final enactment.
38.27 Sec. 38. [16A.96] MINNESOTA PAY FOR PERFORMANCE PROGRAM;
38.28APPROPRIATION BONDS.
38.29 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
38.30section.
38.31(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
38.32payable during a biennium from one or more of the following sources:
38.33(1) money appropriated by law in any biennium for debt service due with respect
38.34to obligations described in subdivision 2, paragraph (b);
38.35(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
39.1(3) payments received for that purpose under agreements and ancillary arrangements
39.2described in subdivision 2, paragraph (d); and
39.3(4) investment earnings on amounts in clauses (1) to (3).
39.4(c) "Debt service" means the amount payable in any biennium of principal, premium,
39.5if any, and interest on appropriation bonds.
39.6 Subd. 2. Authority. (a) Subject to the limitations of this subdivision, the
39.7commissioner of management and budget may sell and issue appropriation bonds of the
39.8state under this section for the purposes of the Minnesota pay for performance program
39.9established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to
39.10a special appropriation bond proceeds account in the state treasury. Net income from
39.11investment of the proceeds, as estimated by the commissioner, must be credited to the
39.12special appropriation bond proceeds account.
39.13(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
39.14the commissioner, are necessary to provide sufficient funds for achieving the purposes
39.15authorized as provided under paragraph (a), and pay debt service, pay costs of issuance,
39.16make deposits to reserve funds, pay the costs of credit enhancement, or make payments
39.17under other agreements entered into under paragraph (d); provided, however, that bonds
39.18issued and unpaid shall not exceed $20,000,000 in principal amount, excluding refunding
39.19bonds sold and issued under subdivision 4. During the biennium ending June 30, 2013,
39.20the commissioner may sell and issue bonds only in an amount that the commissioner
39.21determines will result in principal and interest payments less than the amount of savings to
39.22be generated through pay-for-performance contracts under section 16A.94. For programs
39.23achieving savings under a pay-for-performance contract, the commissioner must reduce
39.24general fund appropriations by at least the amount of principal and interest payments on
39.25bonds issued under this section.
39.26(c) Appropriation bonds may be issued in one or more series on the terms and
39.27conditions the commissioner determines to be in the best interests of the state, but the term
39.28on any series of bonds may not exceed 20 years.
39.29(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
39.30time thereafter, so long as the appropriation bonds are outstanding, the commissioner
39.31may enter into agreements and ancillary arrangements relating to the appropriation
39.32bonds, including but not limited to trust indentures, liquidity facilities, remarketing or
39.33dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
39.34reimbursement agreements, indexing agreements, or interest exchange agreements. Any
39.35payments made or received according to the agreement or ancillary arrangement shall be
39.36made from or deposited as provided in the agreement or ancillary arrangement. The
40.1determination of the commissioner included in an interest exchange agreement that the
40.2agreement relates to an appropriation bond shall be conclusive.
40.3 Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form
40.4of bonds, notes, or other similar instruments, and in the manner provided in section
40.516A.672. In the event that any provision of section 16A.672 conflicts with this section,
40.6this section shall control.
40.7(b) Every appropriation bond shall include a conspicuous statement of the limitation
40.8established in subdivision 6.
40.9(c) Appropriation bonds may be sold at either public or private sale upon such terms
40.10as the commissioner shall determine are not inconsistent with this section and may be sold
40.11at any price or percentage of par value. Any bid received may be rejected.
40.12(d) Appropriation bonds may bear interest at a fixed or variable rate.
40.13 Subd. 4. Refunding bonds. The commissioner from time to time may issue
40.14appropriation bonds for the purpose of refunding any appropriation bonds then
40.15outstanding, including the payment of any redemption premiums on the bonds, any
40.16interest accrued or to accrue to the redemption date, and costs related to the issuance
40.17and sale of the refunding bonds. The proceeds of any refunding bonds may, in the
40.18discretion of the commissioner, be applied to the purchase or payment at maturity of the
40.19appropriation bonds to be refunded, to the redemption of the outstanding bonds on any
40.20redemption date, or to pay interest on the refunding bonds and may, pending application,
40.21be placed in escrow to be applied to the purchase, payment, retirement, or redemption.
40.22Any escrowed proceeds, pending such use, may be invested and reinvested in obligations
40.23that are authorized investments under section 11A.24. The income earned or realized on
40.24the investment may also be applied to the payment of the bonds to be refunded or interest
40.25or premiums on the refunded bonds, or to pay interest on the refunding bonds. After
40.26the terms of the escrow have been fully satisfied, any balance of the proceeds and any
40.27investment income may be returned to the general fund or, if applicable, the appropriation
40.28bond proceeds account for use in any lawful manner. All refunding bonds issued under
40.29this subdivision must be prepared, executed, delivered, and secured by appropriations in
40.30the same manner as the bonds to be refunded.
40.31 Subd. 5. Appropriation bonds as legal investments. Any of the following entities
40.32may legally invest any sinking funds, money, or other funds belonging to them or under
40.33their control in any appropriation bonds issued under this section:
40.34(1) the state, the investment board, public officers, municipal corporations, political
40.35subdivisions, and public bodies;
41.1(2) banks and bankers, savings and loan associations, credit unions, trust companies,
41.2savings banks and institutions, investment companies, insurance companies, insurance
41.3associations, and other persons carrying on a banking or insurance business; and
41.4(3) personal representatives, guardians, trustees, and other fiduciaries.
41.5 Subd. 6. No full faith and credit; state not required to make appropriations.
41.6The appropriation bonds are not public debt of the state, and the full faith, credit, and
41.7taxing powers of the state are not pledged to the payment of the appropriation bonds or to
41.8any payment that the state agrees to make under this section. Appropriation bonds shall
41.9not be obligations paid directly, in whole or in part, from a tax of statewide application
41.10on any class of property, income, transaction, or privilege. Appropriation bonds shall be
41.11payable in each fiscal year only from amounts that the legislature may appropriate for debt
41.12service for any fiscal year, provided that nothing in this section shall be construed to
41.13require the state to appropriate funds sufficient to make debt service payments with respect
41.14to the bonds in any fiscal year.
41.15 Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds and
41.16interest credited to the special appropriation bond proceeds account are appropriated to the
41.17commissioner for payment of contract obligations under the pay for performance program,
41.18as permitted by state and federal law, and nonsalary expenses incurred in conjunction
41.19with the sale of the appropriation bonds.
41.20 Subd. 8. Appropriation for debt service. The amount needed to pay principal and
41.21interest on appropriation bonds issued under this section is appropriated each year to the
41.22commissioner from the general fund subject to the repeal, unallotment under section
41.2316A.152, or cancellation otherwise pursuant to subdivision 6.
41.24EFFECTIVE DATE.This section is effective the day following final enactment.
41.25 Sec. 39. Minnesota Statutes 2010, section 16B.03, is amended to read:
41.2616B.03 APPOINTMENTS.
41.27The commissioner is authorized to appoint staff, including
41.28
41.29 Sec. 40. [16C.075] E-VERIFY.
41.30A contract for services valued in excess of $50,000 must require certification from
41.31the vendor and any subcontractors that, as of the date services on behalf of the state of
41.32Minnesota will be performed, the vendor and all subcontractors have implemented or are
41.33in the process of implementing the federal E-Verify program for all newly hired employees
42.1in the United States who will perform work on behalf of the state of Minnesota. This
42.2section does not apply to contracts entered into by the State Board of Investment.
42.3EFFECTIVE DATE.This section is effective July 1, 2011, and applies to contracts
42.4entered into on or after that date.
42.5 Sec. 41. Minnesota Statutes 2010, section 16C.08, subdivision 2, is amended to read:
42.6 Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of
42.7a professional or technical services contract valued in excess of $5,000, it must provide
42.8the following:
42.9 (1) a description of how the proposed contract or amendment is necessary and
42.10reasonable to advance the statutory mission of the agency;
42.11 (2) a description of the agency's plan to notify firms or individuals who may be
42.12available to perform the services called for in the solicitation;
42.13 (3) a description of the performance measures or other tools, including accessibility
42.14measures if applicable, that will be used to monitor and evaluate contract performance; and
42.15 (4) an explanation detailing, if applicable, why this procurement is being pursued
42.16unilaterally by the agency and not as an enterprise procurement.
42.17 (b) In addition to paragraph (a), the agency must certify that:
42.18
42.19
42.20
42.21performance of the services;
42.22
42.23to the public;
42.24
42.25assignment of specific agency personnel to manage the contract, including a monitoring
42.26and liaison function, the periodic review of interim reports or other indications of past
42.27performance, and the ultimate utilization of the final product of the services;
42.28
42.29fully executed unless an exception under section
42.30by the commissioner and funds are fully encumbered;
42.31
42.32or the agency and any persons performing under the contract; and
42.33
42.34by state employees upon completion of the contract, the contractor is required to include
42.35state employees in development and training, to the extent necessary to ensure that after
43.1completion of the contract, state employees can perform any ongoing work related to the
43.2same function
43.3
43.4
43.5
43.6 (c) A contract establishes an employment relationship for purposes of paragraph (b),
43.7clause
43.8an independent contractor, a person would be considered an employee.
43.9 Sec. 42. [16C.082] CONTRACTS FOR TAX-RELATED ACTIVITIES.
43.10An agency may not enter into a contract for tax fraud prevention or detection, or
43.11tax audit-related activities, that compensates a vendor based on a percentage of taxes
43.12assessed or collected.
43.13EFFECTIVE DATE.This section is effective the day following final enactment
43.14and applies to contracts entered into on or after that date.
43.15 Sec. 43. Minnesota Statutes 2010, section 16C.09, is amended to read:
43.1616C.09 PROCEDURE FOR SERVICE CONTRACTS.
43.17(a) Before entering into or approving a service contract, the commissioner must
43.18determine, at least, that:
43.19
43.20
43.21
43.22achievement of its statutory responsibilities and there is statutory authority to enter into
43.23the contract;
43.24
43.25or the agency and any persons performing under the contract;
43.26
43.27in section 15.062;
43.28
43.29using the results of the work to be performed; and
43.30
43.31specific, written approval by the commissioner according to established policy, procedures,
43.32and standards, or unless otherwise provided for by law. The term of the original contract
44.1must not exceed two years, unless the commissioner determines that a longer duration is
44.2in the best interest of the state.
44.3
44.4
44.5
44.6
44.7
44.8
44.9
44.11(1) community service; or
44.12(2) conservation or maintenance services on lands under the jurisdiction and control
44.13of the state.
44.14 Sec. 44. [16D.18] RECIPROCAL AGREEMENT.
44.15(a) The commissioner is authorized to enter into agreements with the federal
44.16Department of the Treasury that provide for offsetting state payments against federal
44.17nontax obligations. Except as provided in paragraph (d), the commissioner may charge a
44.18fee of $20 per transaction for such offsets and may collect this offset fee from the debtor
44.19by deducting it from the state payment. The agreement may provide for offsetting federal
44.20payments, as authorized by federal law, against state tax and nontax obligations, and
44.21collecting the offset cost from the debtor. The agreement shall provide that the federal
44.22Department of the Treasury may deduct a fee from each administrative offset and state
44.23payment offset. Setoffs to collect state and other entity obligations under chapters 16D,
44.24270A, 270C, and any other provision of Minnesota Statutes occur before a state payment
44.25offset. For purposes of this paragraph "administrative offset" is any offset of federal
44.26payments to collect state debts and "state payment offset" is any offset of state payments
44.27to collect federal nontax debts.
44.28(b) A debt is eligible for offset under this program if notice of intent to offset the
44.29debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if
44.30required by federal law or an agreement with the federal Department of the Treasury.
44.31When there is an agreement for scheduled payments on an account, the debtor must be
44.32sent this notice each time an additional debt is claimed.
44.33(c) The debtor shall have the time period required for notice under paragraph (b) to
44.34contest the offset. An agreement under this section must not allow for offset of payments
44.35if the debt that would be subject to the offset is being contested or if the time for appealing
45.1the determination of the debt has not yet expired. The treasury offset program agreement
45.2entered into by the state must not require federal agencies to provide different due process
45.3than the requirements under Code of Federal Regulations, title 31, section 285.6.
45.4(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner
45.5enters into a contingency fee agreement with a nonstate vendor to provide assistance
45.6under this section, the commissioner may charge a debtor a fee for the processing of state
45.7payment offsets for the recovery of federal nontax debts or the processing of federal
45.8payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
45.9and may be withheld from any refund, reimbursement, or other money held for the debtor.
45.10The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply
45.11to fees charged under this paragraph.
45.12EFFECTIVE DATE.This section is effective the day following final enactment. As
45.13soon as possible after that date, the commissioner must discuss an agreement authorized
45.14under this section with appropriate federal officials, and if an agreement is entered into,
45.15the commissioner must begin to implement it to collect debts owed to the state as soon as
45.16possible.
45.17 Sec. 45. Minnesota Statutes 2010, section 37.06, is amended to read:
45.1837.06 SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
45.19The secretary shall keep a complete record of the proceedings of the annual meetings
45.20of the State Agricultural Society and all meetings of the board of managers and any
45.21committee of the board, keep all accounts of the society other than those kept by the
45.22treasurer of the society, and perform other duties as directed by the board of managers. On
45.23or before December 31 each year, the secretary shall report to the governor for the fiscal
45.24year ending October 31 all the proceedings of the society during the current year and its
45.25financial condition as appears from its books. This report must contain a full, detailed
45.26statement of all receipts and expenditures during the year.
45.27The books and accounts of the society for the fiscal year must be examined and
45.28audited annually by an independent auditor, either a private auditor or the legislative
45.29auditor. If the audit is conducted by the legislative auditor, the cost of the examination
45.30must be paid by the society to the state and credited to the general fund.
45.31A summary of this examination, certified by the
45.32appended to the secretary's report, along with the
45.33and the proceedings of the first annual meeting of the society held following the secretary's
45.34report, including addresses made at the meeting as directed by the board of managers. The
46.1summary, recommendations, and proceedings must be printed in the same manner as the
46.2reports of state officers. Copies of the report must be printed annually and distributed as
46.3follows: to each society or association entitled to membership in the society, to each
46.4newspaper in the state, and the remaining copies as directed by the board of managers.
46.5 Sec. 46. Minnesota Statutes 2010, section 43A.08, subdivision 1, is amended to read:
46.6 Subdivision 1. Unclassified positions. Unclassified positions are held by employees
46.7who are:
46.8 (1) chosen by election or appointed to fill an elective office;
46.9 (2) heads of agencies required by law to be appointed by the governor or other
46.10elective officers, and the executive or administrative heads of departments, bureaus,
46.11divisions, and institutions specifically established by law in the unclassified service;
46.12 (3) deputy
46.13listed in
46.1415.06, subdivision 1;
46.15 (4) the confidential secretary to each of the elective officers of this state and, for the
46.16secretary of state and state auditor, an additional deputy, clerk, or employee;
46.17 (5) intermittent help employed by the commissioner of public safety to assist in
46.18the issuance of vehicle licenses;
46.19 (6) employees in the offices of the governor and of the lieutenant governor and one
46.20confidential employee for the governor in the Office of the Adjutant General;
46.21 (7) employees of the Washington, D.C., office of the state of Minnesota;
46.22 (8) employees of the legislature and of legislative committees or commissions;
46.23provided that employees of the Legislative Audit Commission, except for the legislative
46.24auditor, the deputy legislative auditors, and their confidential secretaries, shall be
46.25employees in the classified service;
46.26 (9) presidents, vice-presidents, deans, other managers and professionals in
46.27academic and academic support programs, administrative or service faculty, teachers,
46.28research assistants, and student employees eligible under terms of the federal Economic
46.29Opportunity Act work study program in the Perpich Center for Arts Education and the
46.30Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance
46.31employees, or any professional or managerial employee performing duties in connection
46.32with the business administration of these institutions;
46.33 (10) officers and enlisted persons in the National Guard;
46.34 (11) attorneys, legal assistants, and three confidential employees appointed by the
46.35attorney general or employed with the attorney general's authorization;
47.1 (12) judges and all employees of the judicial branch, referees, receivers, jurors, and
47.2notaries public, except referees and adjusters employed by the Department of Labor
47.3and Industry;
47.4 (13) members of the State Patrol; provided that selection and appointment of State
47.5Patrol troopers must be made in accordance with applicable laws governing the classified
47.6service;
47.7 (14) examination monitors and intermittent training instructors employed by the
47.8Departments of Management and Budget and Commerce and by professional examining
47.9boards and intermittent staff employed by the technical colleges for the administration of
47.10practical skills tests and for the staging of instructional demonstrations;
47.11 (15) student workers;
47.12 (16) executive directors or executive secretaries appointed by and reporting to any
47.13policy-making board or commission established by statute;
47.14 (17) employees unclassified pursuant to other statutory authority;
47.15 (18) intermittent help employed by the commissioner of agriculture to perform
47.16duties relating to pesticides, fertilizer, and seed regulation;
47.17 (19) the administrators and the deputy administrators at the State Academies for the
47.18Deaf and the Blind; and
47.19 (20) chief executive officers in the Department of Human Services.
47.20 Sec. 47. Minnesota Statutes 2010, section 43A.20, is amended to read:
47.2143A.20 PERFORMANCE APPRAISAL AND PAY.
47.22(a) The commissioner shall design and maintain a performance appraisal system
47.23under which each employee in the civil service in the executive branch shall be evaluated
47.24and counseled on work performance at least once a year. The performance appraisal
47.25system must include three components:
47.26(1) evaluation of the individual employee's performance relative to goals for that
47.27individual, which must constitute a majority of the overall determination of an employee's
47.28performance;
47.29(2) evaluation of the performance of the individual employee's program, defined by
47.30the agency head, toward meeting targeted outcomes for the program; and
47.31(3) evaluation of the performance of the entire agency toward meeting targeted
47.32outcomes for the agency.
47.33(b) Individual pay increases for all employees
47.34
47.35evaluations required by paragraph (a) and other factors consistent with paragraph (a)
48.1that the commissioner negotiates in collective bargaining agreements or includes in the
48.2plans developed pursuant to section
48.3
48.4
48.5receive an increase in salary or wages based on cost of living or progression to another
48.6step or lane unless the employee's supervisor certifies that the employee's performance
48.7has been satisfactory.
48.8(c) This section does not apply to faculty and administrators in the Minnesota State
48.9Colleges and University system.
48.10(d) This section supersedes any conflicting provision of other law.
48.11EFFECTIVE DATE.This section is effective July 1, 2011. For employees covered
48.12by a collective bargaining agreement, this section applies to collective bargaining
48.13agreements entered into on or after that date.
48.14 Sec. 48. [43A.347] REDUCTION IN STATE WORK FORCE.
48.15 Subdivision 1. Required reduction. (a) The number of full-time equivalent
48.16employees employed in the executive branch, and the costs directly associated with
48.17employing those persons, must be reduced by at least 15 percent by June 30, 2015, and
48.18thereafter, compared to the number of full-time equivalent positions and the costs directly
48.19associated with those positions on January 1, 2011.
48.20(b) An appointing authority may use any or all of the following to achieve this
48.21requirement: attrition, a hard hiring freeze, furloughs, and layoffs.
48.22(c) For purposes of this section:
48.23(1) "costs directly associated" with employing people means the cost of salaries and
48.24benefits, including the costs of employer contributions to public pension plans; and
48.25(2) "executive branch" does not include the Minnesota State Colleges and
48.26Universities, the Department of Military Affairs, or the Department of Veterans Affairs.
48.27 Subd. 2. Savings. Savings resulting from implementation of this section must
48.28cancel back to the fund in which the savings occurred.
48.29 Subd. 3. Application of Public Employment Labor Relations Act. Unilateral
48.30implementation of this section is not an unfair labor practice under chapter 179A.
48.31 Sec. 49. Minnesota Statutes 2010, section 45.013, is amended to read:
48.3245.013 POWER TO APPOINT STAFF.
49.1The commissioner of commerce may appoint
49.2
49.3
49.4appoint other employees necessary to carry out the duties and responsibilities entrusted to
49.5the commissioner.
49.6 Sec. 50. Minnesota Statutes 2010, section 84.01, subdivision 3, is amended to read:
49.7 Subd. 3. Employees; delegation.
49.8
49.9employ
49.10
49.11
49.12officers, employees, and agents as the commissioner may deem necessary to discharge the
49.13functions of the department, define the duties of such officers, employees, and agents and
49.14to delegate to them any of the commissioner's powers, duties, and responsibilities subject
49.15to the control of, and under the conditions prescribed by, the commissioner. Appointments
49.16to exercise delegated power shall be by written order filed with the secretary of state.
49.17 Sec. 51. Minnesota Statutes 2010, section 116.03, subdivision 1, is amended to read:
49.18 Subdivision 1. Office. (a) The office of commissioner of the Pollution Control
49.19Agency is created and is under the supervision and control of the commissioner, who is
49.20appointed by the governor under the provisions of section
49.21(b) The commissioner may appoint a deputy commissioner
49.22
49.23(c) The commissioner shall make all decisions on behalf of the agency that are not
49.24required to be made by the agency under section
49.25 Sec. 52. Minnesota Statutes 2010, section 116J.01, subdivision 5, is amended to read:
49.26 Subd. 5. Departmental organization. (a) The commissioner shall organize the
49.27department as provided in section
49.28(b) The commissioner may establish divisions and offices within the department.
49.29
49.30(c) The commissioner shall:
49.31(1) employ assistants and other officers, employees, and agents that the commissioner
49.32considers necessary to discharge the functions of the commissioner's office;
50.1(2) define the duties of the officers, employees, and agents, and delegate to them any
50.2of the commissioner's powers, duties, and responsibilities, subject to the commissioner's
50.3control and under conditions prescribed by the commissioner.
50.4(d) The commissioner shall ensure that there are at least three employment and
50.5economic development officers in state offices in nonmetropolitan areas of the state who
50.6will work with local units of government on developing local employment and economic
50.7development.
50.8 Sec. 53. Minnesota Statutes 2010, section 116J.035, subdivision 4, is amended to read:
50.9 Subd. 4. Delegation of powers. The commissioner may delegate, in written orders
50.10filed with the secretary of state, any powers or duties subject to the commissioner's
50.11control to officers and employees in the department. Regardless of any other law, the
50.12commissioner may delegate the execution of specific contracts or specific types of
50.13contracts to the commissioner's
50.14director if the delegation has been approved by the commissioner of administration and
50.15filed with the secretary of state.
50.16 Sec. 54. Minnesota Statutes 2010, section 161.1419, subdivision 8, is amended to read:
50.17 Subd. 8. Expiration. The commission expires on June 30,
50.18 Sec. 55. Minnesota Statutes 2010, section 174.02, subdivision 2, is amended to read:
50.19 Subd. 2. Unclassified positions. The commissioner may
50.20
50.21
50.22
50.23 Sec. 56. Minnesota Statutes 2010, section 241.01, subdivision 2, is amended to read:
50.24 Subd. 2.
50.25employ
50.26also appoint a personal secretary, who shall serve at the commissioner's pleasure in the
50.27unclassified civil service.
50.28 Sec. 57. Minnesota Statutes 2010, section 270C.41, is amended to read:
50.29270C.41
50.30AGREEMENTS WITH FEDERAL GOVERNMENT.
51.1 Subdivision 1. Agreement with Internal Revenue Service. Pursuant to section
51.3Service to identify taxpayers who have refunds due from the department and liabilities
51.4owing to the Internal Revenue Service. In accordance with the procedures established in
51.5the agreement, the Internal Revenue Service may levy against the refunds to be paid by
51.6the department. For each refund levied upon, the commissioner shall first deduct from
51.7the refund a fee of $20, and then remit the refund or the amount of the levy, whichever
51.8is less, to the Internal Revenue Service. The proceeds of fees shall be deposited into the
51.9Department of Revenue recapture revolving fund under section
51.10 Subd. 2. Reciprocal offset agreements. (a) The commissioner is authorized
51.11to enter into agreements with the federal Department of the Treasury that provide for
51.12offsetting state payments against federal nontax obligations. Except as provided in
51.13paragraph (d), the commissioner may charge a fee of $20 per transaction for such offsets
51.14and may collect this offset fee from the debtor by deducting it from the state payment.
51.15The agreement may provide for offsetting federal payments, as authorized by federal law,
51.16against state tax and nontax obligations, and collecting the offset cost from the debtor.
51.17The agreement shall provide that the federal Department of the Treasury may deduct a
51.18fee from each administrative offset and state payment offset. Setoffs to collect state and
51.19other entity obligations under chapters 16D, 270A, 270C, and any other provision of
51.20Minnesota Statutes, occur before a state payment offset. For purposes of this paragraph
51.21"administrative offset" is any offset of federal payments to collect state debts and "state
51.22payment offset" is any offset of state payments to collect federal nontax debts.
51.23(b) A debt is eligible for offset under this program if notice of intent to offset the
51.24debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if
51.25required by federal law or an agreement with the federal Department of the Treasury.
51.26When there is an agreement for scheduled payments on an account, the debtor must be
51.27sent this notice each time an additional debt is claimed.
51.28(c) The debtor shall have the time period required for notice under paragraph (b) to
51.29contest the offset. An agreement under this section must not allow for offset of payments
51.30if the debt that would be subject to the offset is being contested or if the time for appealing
51.31the determination of the debt has not yet expired. The treasury offset program agreement
51.32entered into by the state must not require federal agencies to provide different due process
51.33than the requirements under Code of Federal Regulations, title 31, section 285.6.
51.34(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner
51.35enters into a contingency fee agreement with a nonstate vendor to provide assistance
51.36under this section, the commissioner may charge a debtor a fee for the processing of state
52.1payment offsets for the recovery of federal nontax debts or the processing of federal
52.2payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
52.3and may be withheld from any refund, reimbursement, or other money held for the debtor.
52.4The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply
52.5to fees charged under this paragraph.
52.6EFFECTIVE DATE.This section is effective the day following final enactment. As
52.7soon as possible after that date, the commissioner must discuss an agreement authorized
52.8under this section with appropriate federal officials, and if an agreement is entered into,
52.9the commissioner must begin to implement it to collect debts owed to the state as soon as
52.10possible.
52.11 Sec. 58. Minnesota Statutes 2010, section 270C.545, is amended to read:
52.12270C.545 FEDERAL TAX REFUND OFFSET FEES; TIME LIMIT FOR
52.13SUBMITTING CLAIMS FOR OFFSET.
52.14
52.15the offset of federal tax refunds
52.16deducted from the refund or the federal payment amounts remitted to the commissioner,
52.17then the unpaid debts of the taxpayers whose refunds or federal payments are being
52.18offset to satisfy the debts are reduced only by the actual amount of the refund payments
52.19or federal payments received by the commissioner. Notwithstanding any other provision
52.20of law to the contrary, a claim for the offset of a federal tax refund must be submitted to
52.21the Department of the Treasury of the United States within ten years after the date of the
52.22assessment of the tax owed by the taxpayer whose refund is to be offset to satisfy the
52.23debt. For court debts referred to the commissioner under section
52.24paragraph (a), the federal refund offset fees are deducted as provided in this section, but
52.25the ten-year time limit prescribed in this section for tax debts does not apply.
52.26 Sec. 59. Minnesota Statutes 2010, section 471.697, subdivision 2, is amended to read:
52.27 Subd. 2. First class city audits.
52.28
52.29an audit to be performed by a certified public accountant firm meeting the requirements
52.30of section 326A.05. The audit performed by a certified public accountant must meet the
52.31standards and be in the form required by the state auditor. The state auditor may require
52.32additional information from the certified public accountant firm as the state auditor deems
53.1in the public interest, but the state auditor must accept the audit unless the state auditor
53.2determines that it does not meet recognized industry auditing standards.
53.3 Sec. 60. Laws 2010, chapter 361, article 3, section 8, is amended to read:
53.4 Sec. 8. USE OF CARRYFORWARD.
53.5The restrictions in Minnesota Statutes, section
53.6forward from one biennium to another shall not apply to money the legislative auditor
53.7carried forward from the
53.8June 30, 2009, or the biennium ending June 30, 2011. The legislative auditor may use the
53.9carry forward money for costs related to the conduct of audits related to funds authorized
53.10in the Minnesota Constitution, Article XI, section 15, and audits related to the institutions,
53.11offices, and functions of the Minnesota State Colleges and Universities.
53.12EFFECTIVE DATE.This section is effective the day following final enactment.
53.13 Sec. 61. STATE BUILDING EFFICIENCY.
53.14 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner
53.15of administration shall issue a request for proposals for a contract to provide
53.16recommendations for efficiencies in state building management to the commissioner. The
53.17request for proposals shall require the vendor to provide a system that will overlay existing
53.18building controls and instrumentation that influence energy consumption, including space,
53.19equipment and system performance, facility operations, and facility maintenance. The
53.20request for proposals shall require the vendor to provide a system that provides concurrent
53.21building monitoring, energy consumption optimization, space utilization, and equipment
53.22performance information.
53.23 Subd. 2. Standards-based platform system with data analytics. The request for
53.24proposals must require the vendor to provide: (1) a standards-based platform system with
53.25the capability to integrate and coordinate a variety of control systems, including their data,
53.26and the ability to manage all state buildings and their control systems; and (2) a system that
53.27uses data analytics to integrate corrective action notification and work order management.
53.28 Subd. 3. Proof of concept phase. The request for proposals shall require the
53.29selected vendor, at no cost to the state, to begin work on the contract by implementing
53.30its proposed system on one to three instrumented state buildings to demonstrate the
53.31savings provided by the system. The system provided by the vendor must be capable of
53.32application to all instrumented state-owned buildings. During this proof of concept phase,
54.1the vendor and the state must agree on how savings during the full implementation phase
54.2will be defined, measured, and verified, to ensure that the contract will provide the highest
54.3possible return on investment to the state.
54.4 Subd. 4. Full implementation and payment. The request for proposal must
54.5require the state to implement the system provided by the vendor in all instrumented
54.6buildings owned by the state if the state and the vendor have agreed on how savings
54.7will be defined, measured, and verified, and the work done under the requirements of
54.8subdivision 3 provides material savings to the state. After the full implementation of the
54.9system provided by the vendor, the vendor shall be paid by the state from the savings
54.10attributable to the work done by the vendor, according to the terms and performance
54.11measures negotiated in the contract.
54.12 Subd. 5. Selection of vendor. The commissioner of administration shall select a
54.13vendor from the responses to the request for proposal by September 1, 2011.
54.14 Subd. 6. Progress report. The commissioner shall provide a report describing the
54.15progress made under this section to the governor and the chairs and ranking minority
54.16members of the legislative committees with jurisdiction over the commissioner of
54.17administration by January 15, 2012. The report shall provide a dynamic scoring analysis
54.18of the work described in the report.
54.19 Sec. 62. FLEET MANAGEMENT IMPROVEMENTS.
54.20 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner of
54.21administration shall issue a request for proposals to improve the procurement, allocation,
54.22control, energy efficiency, maintenance, and in-service life of state vehicles. The request
54.23for proposal shall require the vendor to provide a system for:
54.24(1) a life-cycle solution for vehicle management, covering all stages from
54.25procurement through disposal of state vehicles; and
54.26(2) the integration of data analytics to provide vehicle tracking, usage, and proactive
54.27maintenance management.
54.28 Subd. 2. Proof of concept phase. The request for proposals must specify that the
54.29vendor, at no cost to the state, must implement its system in one vehicle maintenance
54.30facility on a sample group of vehicles to demonstrate the cost-savings potential of the
54.31recommendations. During this proof of concept phase, the vendor and the state must
54.32agree on how savings during the full implementation phase will be defined, measured,
55.1and verified, to ensure that the contract will provide the highest possible return on
55.2investment to the state.
55.3 Subd. 3. Full implementation and payment. The request for proposal must require
55.4the state to implement the recommendations provided by the vendor if the state and the
55.5vendor have agreed on how savings will be defined, measured, and verified, and the work
55.6done under the requirements of subdivision 2 provides material savings to the state. After
55.7the full implementation of the system provided by the vendor, the vendor shall be paid by
55.8the state from the savings attributable to the work done by the vendor, according to the
55.9terms and performance measures negotiated in the contract.
55.10 Subd. 4. Selection of vendor. The commissioner of administration shall select a
55.11vendor from the responses to the request for proposal by September 1, 2011.
55.12 Subd. 5. Progress report. The commissioner shall provide a report describing the
55.13progress made under this section to the governor and the chairs and ranking minority
55.14members of the legislative committees with jurisdiction over the commissioner of
55.15administration by January 15, 2012. The report shall provide a dynamic scoring analysis
55.16of the work described in the report.
55.17 Sec. 63. SALARY FREEZE.
55.18(a) Effective July 1, 2011, and until June 30, 2013, a state employee may not receive
55.19a salary or wage increase. This section prohibits any increases, including but not limited
55.20to: across-the-board increases; cost-of-living adjustments; increases based on longevity;
55.21step increases; increases in the form of lump-sum payments; increases in employer
55.22contributions to deferred compensation plans; or any other pay grade adjustments of
55.23any kind. For purposes of this section, "salary or wage" does not include employer
55.24contributions toward the cost of medical or dental insurance premiums, provided that
55.25employee contributions to the costs of medical or dental insurance premiums are not
55.26decreased. This section does not prohibit an increase in the rate of salary and wages for an
55.27employee who is promoted or transferred to a position with greater responsibilities and
55.28with a higher salary or wage rate. For purposes of this section, state employee means an
55.29employee as defined in Minnesota Statutes, section 43A.02, subdivision 21, but does not
55.30include faculty or administrators in the Minnesota State Colleges and Universities system.
55.31(b) A state appointing authority may not enter into a collective bargaining agreement
55.32or implement a compensation plan that increases salary or wages in a manner prohibited
55.33by this section. Neither a state appointing authority nor an exclusive representative of state
55.34employees may request interest arbitration in relation to an increase in salary or wages that
56.1is prohibited by this section, and an arbitrator may not issue an award that would increase
56.2salary or wages in a manner prohibited by this section.
56.3(c) This section supersedes Minnesota Statutes, section 179A.20, subdivision 6, or
56.4other law, to the extent those laws would authorize an increase prohibited by this section.
56.5EFFECTIVE DATE.Paragraph (b) is effective the day following final enactment.
56.6Paragraphs (a) and (c) are effective June 30, 2011.
56.7 Sec. 64. STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE
56.8INCENTIVE PROGRAM.
56.9The commissioner of management and budget may develop and implement a
56.10program that creates an incentive for efficient use by state employees of State Employee
56.11Group Insurance Program (SEGIP). The program may reward employees covered by
56.12SEGIP as a group if per capita employee health care costs paid by SEGIP for a calendar
56.13year prove to be less than estimated by the commissioner prior to the beginning of the
56.14calendar year. The reward may consist of payments of one-half of the cost-savings into
56.15the employees' health reimbursement accounts, to be made no later than June 30 of the
56.16following calendar year.
56.17 Sec. 65. STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT
56.18ELIGIBILITY VERIFICATION AUDIT SERVICES.
56.19 Subdivision 1. Request for proposals. By August 1, 2011, the commissioner of
56.20management and budget shall issue a request for proposals for a contract to provide
56.21dependent eligibility verification audit services for state-paid hospital, medical, and dental
56.22benefits provided to participants in the state employee group insurance program and their
56.23dependents. The request for proposals must require that the vendor will:
56.24(1) conduct a document-model dependent eligibility verification audit of all plans
56.25offered under Minnesota Statutes, sections 43A.22 to 43A.31;
56.26(2) identify ineligible dependents covered by the plans and report those findings to
56.27the commissioner and third-party administrators of the state's employee health plans, as
56.28directed by the commissioner; and
56.29(3) implement a process for ongoing eligibility verification following the conclusion
56.30of the dependent eligibility verification audit required by this section.
56.31 Subd. 2. Additional vendor criteria. The request for proposals required by
56.32subdivision 1 must require the vendor to provide the following minimum capabilities and
56.33experience in performing the services described in subdivision 1:
57.1(1) a rules-based process for making objective eligibility determinations;
57.2(2) assigned eligibility advocates to assist employees through the verification
57.3process;
57.4(3) a formal claims and appeals process; and
57.5(4) experience in the performance of dependent eligibility verification audits.
57.6 Subd. 3. Contract required. By November 1, 2011, the commissioner must enter
57.7into a contract for the services specified in subdivision 1. The contract must incorporate
57.8a performance-based vendor financing option that compensates the vendor based on the
57.9amount of savings generated by the work performed under the contract.
57.10 Sec. 66. SEGIP SAVINGS.
57.11The commissioner of management and budget must negotiate and implement
57.12changes to the state employee group insurance program that will result in reduced general
57.13fund contributions from state employers subject to appropriation reductions under article
57.141, section 39, of at least $90,009,000 during the biennium ending June 30, 2013.
57.15 Sec. 67. TAX FRAUD PREVENTION AND DETECTION.
57.16 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner of
57.17revenue shall issue a request for proposals to prevent and detect tax fraud and increase
57.18delinquent tax revenue collection. The request for proposals shall require the vendor to
57.19provide data analytics capabilities, including, but not limited to, predictive modeling
57.20techniques and other forms of advanced analytics that will integrate into the current tax
57.21processing system to detect compliance issues before tax return processing is completed,
57.22and optimization algorithms that will assist the commissioner in maximizing revenues
57.23collected with current levels of compliance staff.
57.24 Subd. 2. Proof of concept phase. The selected vendor, at no cost to the state, shall
57.25implement its recommendations on a subset of data provided by the commissioner to
57.26demonstrate the cost-savings potential of the recommendations.
57.27 Subd. 3. Data. Data provided to the vendor by the commissioner for the proof of
57.28concept phase must not include not public data, as defined in section 13.02, subdivision 8a.
57.29 Subd. 4. Full implementation phase. The request for proposal must require the
57.30state to implement the recommendations provided by the vendor if the work done under
57.31the requirements of subdivision 2 provides material savings to the state. After the full
57.32implementation of the system provided by the vendor, the vendor shall be paid by the state
58.1from the savings attributable to the work done by the vendor, according to the terms and
58.2performance measures negotiated in the contract. The contract shall not compensate the
58.3vendor based on a percentage of taxes assessed or collected.
58.4 Subd. 5. Selection of vendor. The commissioner of administration shall select a
58.5vendor from the responses to the request for proposal by September 1, 2011.
58.6 Subd. 6. Progress report. The commissioner shall provide a report describing the
58.7progress made under this section to the governor and the chairs and ranking minority
58.8members of the legislative committees with jurisdiction over the commissioner of revenue
58.9and data practices by January 15, 2012. The report shall provide a dynamic scoring
58.10analysis of the work described in the report and address data access and privacy issues
58.11involved in implementation of the system.
58.12EFFECTIVE DATE.This section is effective the day following final enactment.
58.13 Sec. 68. STRATEGIC SOURCING REQUEST FOR PROPOSALS.
58.14 Subdivision 1. Request for proposals. By July 1, 2011, the commissioner
58.15of administration shall issue a request for proposals for a contract to provide
58.16recommendations for efficiencies in strategic sourcing to the commissioner. For the
58.17purposes of this section, "strategic sourcing" has the meaning given in Minnesota Statutes,
58.18section 16C.02, subdivision 20. The request for proposals shall require the vendor to
58.19provide recommendations for improvements to methods used by the commissioner
58.20to analyze and reduce spending on goods and services, including, but not limited to,
58.21spend analysis, product standardization, contract consolidation, negotiations, multiple
58.22jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and
58.23other techniques.
58.24 Subd. 2. Proof of concept phase. The request for proposal shall require the selected
58.25vendor, at no cost to the state, to begin work on the contract by assisting the commissioner
58.26in implementing its proposed solution on selected state procurement processes to
58.27demonstrate the savings provided by the recommendations. The system provided by the
58.28vendor must be capable of application to the state procurement system.
58.29 Subd. 3. Full implementation and payment. The request for proposal must require
58.30the state to implement the recommendations provided by the vendor in the entire state
58.31procurement system if the work done under the requirements of subdivision 2 provides
58.32material savings to the state. After the full implementation of the system provided by the
59.1vendor, the vendor shall be paid by the state from the savings attributable to the work done
59.2by the vendor, according to the terms and performance measures negotiated in the contract.
59.3 Subd. 4. Selection of vendor. The commissioner of administration shall select,
59.4from qualified respondents, a vendor from the responses to the request for proposal by
59.5September 1, 2011.
59.6 Subd. 5. Progress report. The commissioner shall provide a report describing the
59.7progress made under this section to the governor and the chairs and ranking minority
59.8members of the legislative committees with jurisdiction over the commissioner of
59.9administration by January 15, 2012.
59.10 Sec. 69. STATE JOB CLASSIFICATIONS.
59.11The commissioner of management and budget shall report to the legislature by
59.12January 15, 2012, on a process to redesign and consolidate the job classification plan for
59.13executive branch employees, with a goal of assigning all classified positions to no more
59.14than 50 job families. The process must lead to development of a new job classification
59.15plan designed to enhance the ability of state agencies to flexibly manage their workforces
59.16to meet changing needs and demands of the agency, and to enhance the ability of state
59.17employees to transfer to other positions for which they are qualified. In developing this
59.18process, the commissioner must meet and confer with the exclusive representatives of each
59.19affected bargaining unit. The report to the legislature must identify implementation issues.
59.20 Sec. 70. HELP AMERICA VOTE ACT.
59.21(a) If the secretary of state determines that this state is otherwise eligible to receive
59.22an additional requirements payment of federal money under the Help America Vote Act,
59.23Public Law 107-252, the secretary must certify to the commissioner of management and
59.24budget the amount, if any, needed to meet the matching requirement of section 253(b)(5)
59.25of the Help America Vote Act. In the certification, the secretary shall specify the portion
59.26of the match that should be taken from an unencumbered general fund appropriation to
59.27the Office of the Secretary of State not designated for a different purpose. Upon receipt
59.28of that certification, or as soon as an unencumbered general fund appropriation becomes
59.29available, whichever occurs later, the commissioner must transfer the specified amount
59.30to the Help America Vote Act account. Funds under the Help America Vote Act may be
59.31spent only following legislative approval.
59.32(b) This section expires on June 30, 2013.
59.33EFFECTIVE DATE.This section is effective the day following final enactment.
60.1 Sec. 71. ESTIMATED REVENUE.
60.2The initiatives in sections 44, 57, 58, and 67 are expected to result in new general
60.3fund revenues of $169,900,000 for the biennium ending June 30, 2013.
60.4 Sec. 72. REPEALER.
60.5Minnesota Statutes 2010, sections 16C.085; 43A.047; and 179A.23, are repealed.
60.8 Section 1. Minnesota Statutes 2010, section 16B.99, is amended to read:
60.916B.99 GEOSPATIAL INFORMATION OFFICE.
60.10 Subdivision 1. Creation. The Minnesota Geospatial Information Office is created
60.11under the supervision of the
60.12officer, who is appointed by the chief information officer.
60.13 Subd. 2. Responsibilities; authority. The office has authority to provide
60.14coordination, guidance, and leadership, and to plan the implementation of Minnesota's
60.15geospatial information technology. The office must identify, coordinate, and guide
60.16strategic investments in geospatial information technology systems, data, and services to
60.17ensure effective implementation and use of Geospatial Information Systems (GIS) by state
60.18agencies to maximize benefits for state government as an enterprise.
60.19 Subd. 3. Duties. The office must:
60.20(1) coordinate and guide the efficient and effective use of available federal,
60.21state, local, and public-private resources to develop statewide geospatial information
60.22technology, data, and services;
60.23(2) provide leadership and outreach, and ensure cooperation and coordination for all
60.24Geospatial Information Systems (GIS) functions in state and local government, including
60.25coordination between state agencies, intergovernment coordination between state and local
60.26units of government, and extragovernment coordination, which includes coordination with
60.27academic and other private and nonprofit sector GIS stakeholders;
60.28(3) review state agency and intergovernment geospatial technology, data, and
60.29services development efforts involving state or intergovernment funding, including federal
60.30funding;
60.31(4) provide information to the legislature regarding projects reviewed, and
60.32recommend projects for inclusion in the governor's budget under section
60.33(5) coordinate management of geospatial technology, data, and services between
60.34state and local governments;
61.1(6) provide coordination, leadership, and consultation to integrate government
61.2technology services with GIS infrastructure and GIS programs;
61.3(7) work to avoid or eliminate unnecessary duplication of existing GIS technology
61.4services and systems, including services provided by other public and private organizations
61.5while building on existing governmental infrastructures;
61.6(8) promote and coordinate consolidated geospatial technology, data, and services
61.7and shared geospatial Web services for state and local governments; and
61.8(9) promote and coordinate geospatial technology training, technical guidance, and
61.9project support for state and local governments.
61.10 Subd. 4. Duties of chief
61.11state geospatial advisory council, the commissioner of administration, the commissioner
61.12of management and budget, and the
61.13chief
61.14develop and use shared information and geospatial technology systems, data, and services.
61.15The chief
61.16and geospatial technology systems, data, and services.
61.17(b) The chief
61.18geospatial advisory council, must establish reimbursement rates in cooperation with the
61.19commissioner of management and budget to bill agencies and other governmental entities
61.20sufficient to cover the actual development, operation, maintenance, and administrative
61.21costs of the shared systems. The methodology for billing may include the use of
61.22interagency agreements, or other means as allowed by law.
61.23 Subd. 5. Fees. (a) The chief
61.24section
61.25services to clients. Fees collected must be deposited in the state treasury and credited to
61.26the Minnesota Geospatial Information Office revolving account. Money in the account
61.27is appropriated to the chief
61.28Information Systems (GIS) consulting services, software, data, Web services, and map
61.29products on a cost-recovery basis, including the cost of services, supplies, material, labor,
61.30and equipment as well as the portion of the general support costs and statewide indirect
61.31costs of the office that is attributable to the delivery of these products and services. Money
61.32in the account must not be used for the general operation of the Minnesota Geospatial
61.33Information Office.
61.34(b) The chief
61.35advance payment to the revolving account sufficient to cover the agency's estimated
61.36obligation for a period of 60 days or more. If the revolving account is abolished or
62.1liquidated, the total net profit from the operation of the account must be distributed to the
62.2various funds from which purchases were made. For a given period of time, the amount of
62.3total net profit to be distributed to each fund must reflect the same ratio of total purchases
62.4attributable to each fund divided by the total purchases from all funds.
62.5 Subd. 6. Accountability. The chief geospatial information officer is appointed by
62.6the
62.7information officer who shall advise on technology projects, standards, and services.
62.8 Subd. 7. Discretionary powers. The office may:
62.9(1) enter into contracts for goods or services with public or private organizations
62.10and charge fees for services it provides;
62.11(2) apply for, receive, and expend money from public agencies;
62.12(3) apply for, accept, and disburse grants and other aids from the federal government
62.13and other public or private sources;
62.14(4) enter into contracts with agencies of the federal government, local government
62.15units, the University of Minnesota and other educational institutions, and private persons
62.16and other nongovernment organizations as necessary to perform its statutory duties;
62.17(5) appoint committees and task forces to assist the office in carrying out its duties;
62.18(6) sponsor and conduct conferences and studies, collect and disseminate
62.19information, and issue reports relating to geospatial information and technology issues;
62.20(7) participate in the activities and conferences related to geospatial information
62.21and communications technology issues;
62.22(8) review the Geospatial Information Systems (GIS) technology infrastructure
62.23of regions of the state and cooperate with and make recommendations to the governor,
62.24legislature, state agencies, local governments, local technology development agencies,
62.25the federal government, private businesses, and individuals for the realization of GIS
62.26information and technology infrastructure development potential;
62.27(9) sponsor, support, and facilitate innovative and collaborative geospatial systems
62.28technology, data, and services projects; and
62.29(10) review and recommend alternative sourcing strategies for state geospatial
62.30information systems technology, data, and services.
62.31 Subd. 8. Geospatial advisory councils created. The chief
62.32officer must establish a governance structure that includes advisory councils to provide
62.33recommendations for improving the operations and management of geospatial technology
62.34within state government and also on issues of importance to users of geospatial technology
62.35throughout the state.
63.1(a) A statewide geospatial advisory council must advise the Minnesota Geospatial
63.2Information Office regarding the improvement of services statewide through the
63.3coordinated, affordable, reliable, and effective use of geospatial technology. The
63.4
63.5council. The members must represent a cross-section of organizations including counties,
63.6cities, universities, business, nonprofit organizations, federal agencies, and state agencies.
63.7No more than 20 percent of the members may be employees of a state agency. In addition,
63.8the chief geospatial information officer must be a nonvoting member.
63.9(b) A state government geospatial advisory council must advise the Minnesota
63.10Geospatial Information Office on issues concerning improving state government services
63.11through the coordinated, affordable, reliable, and effective use of geospatial technology.
63.12The
63.13of the council. The members must represent up to 15 state government agencies and
63.14constitutional offices, including the Office of Enterprise Technology and the Minnesota
63.15Geospatial Information Office. The council must be chaired by the chief geographic
63.16information officer. A representative of the statewide geospatial advisory council must
63.17serve as a nonvoting member.
63.18(c) Members of both the statewide geospatial advisory council and the state
63.19government advisory council must be recommended by a process that ensures that each
63.20member is designated to represent a clearly identified agency or interested party category
63.21and that complies with the state's open appointment process. Members shall serve a
63.22term of two years.
63.23(d) The Minnesota Geospatial Information Office must provide administrative
63.24support for both geospatial advisory councils.
63.25(e) This subdivision expires June 30, 2011.
63.26
63.27
63.28
63.29
63.30
63.31
63.32 Sec. 2. [16E.0151] RESPONSIBILITY FOR INFORMATION TECHNOLOGY
63.33SERVICES AND EQUIPMENT.
64.1(a) The chief information officer is responsible for providing or entering into
64.2managed services contracts for the provision of the following information technology
64.3systems and services to state agencies:
64.4(1) state data centers;
64.5(2) mainframes including system software;
64.6(3) servers including system software;
64.7(4) desktops including system software;
64.8(5) laptop computers including system software;
64.9(6) a data network including system software;
64.10(7) database, electronic mail, office systems, reporting, and other standard software
64.11tools;
64.12(8) business application software and related technical support services;
64.13(9) help desk for the components listed in clauses (1) to (8);
64.14(10) maintenance, problem resolution, and break-fix for the components listed in
64.15clauses (1) to (8);
64.16(11) regular upgrades and replacement for the components listed in clauses (1)
64.17to (8); and
64.18(12) network-connected output devices.
64.19(b) All state agency employees whose work primarily involves functions specified
64.20in paragraph (a) are employees of the Office of Enterprise Technology. This includes
64.21employees who directly perform the functions in paragraph (a), as well as employees
64.22whose work primarily involves managing, supervising, or providing administrative
64.23services or support services to employees who directly perform these functions. The
64.24chief information officer may assign employees of the office to perform work exclusively
64.25for another state agency.
64.26(c) The chief information officer may allow a state agency to obtain services
64.27specified in paragraph (a) through a contract with an outside vendor when the chief
64.28information officer and the agency head agree that a contract would provide best value,
64.29as defined in section 16C.02, under the service-level agreement. The chief information
64.30officer must require that agency contracts with outside vendors ensure that systems and
64.31services are compatible with standards established by the Office of Enterprise Technology.
64.32(d) In exercising authority under this section, the chief information officer
64.33must cooperate with the commissioner of administration on contracts for acquisition
64.34of information technology systems and services. The authority granted to the chief
64.35information officer does not limit the procurement, contract management, and contract
64.36review authority of the commissioner of administration under chapter 16C, including
65.1authority of the commissioner to enter into and manage cooperative purchasing
65.2agreements with other states.
65.3(e) The Minnesota State Retirement System, the Public Employees Retirement
65.4Association, the Teachers Retirement Association, the State Board of Investment, the
65.5Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide
65.6Radio Board are not state agencies for purposes of this section.
65.7 Sec. 3. [16E.036] ADVISORY COMMITTEE.
65.8(a) The Technology Advisory Committee is created to advise the chief information
65.9officer. The committee consists of six members appointed by the governor who are
65.10individuals actively involved in business planning for state executive branch agencies,
65.11one county member designated by the Association of Minnesota Counties, one member
65.12appointed by the governor as a representative of a union that represents state information
65.13technology employees, and one member appointed by the governor to represent private
65.14businesses.
65.15(b) Membership terms, removal of members, and filling of vacancies are as provided
65.16in section 15.059. Members do not receive compensation or reimbursement for expenses.
65.17(c) The committee shall select a chair from its members. The chief information
65.18officer shall provide administrative support to the committee.
65.19(d) The committee shall advise the chief information officer on:
65.20(1) development and implementation of the state information technology strategic
65.21plan;
65.22(2) critical information technology initiatives for the state;
65.23(3) standards for state information architecture;
65.24(4) identification of business and technical needs of state agencies;
65.25(5) strategic information technology portfolio management, project prioritization,
65.26and investment decisions;
65.27(6) the office's performance measures and fees for service agreements with executive
65.28branch agencies;
65.29(7) management of the state enterprise technology revolving fund; and
65.30(8) the efficient and effective operation of the office.
65.31 Sec. 4. Minnesota Statutes 2010, section 16E.14, is amended by adding a subdivision
65.32to read:
65.33 Subd. 6. Technology improvement account. The technology improvement account
65.34is established as an account in the enterprise technology fund. Money in the account is
66.1appropriated to the chief information officer for the purpose of funding a project that will
66.2result in improvements in state information and telecommunications technology. The
66.3chief information officer may spend money from the account on behalf of a state agency
66.4or group of agencies or may transfer money in the account to a state agency or group of
66.5agencies only according to an agreement under which: (1) the chief information officer
66.6has determined that savings generated by the project to be funded from the account will
66.7exceed the cost of the project; and (2) the agency or agencies sponsoring the project have
66.8developed a plan for recouping the project costs to the fund.
66.9 Sec. 5. [16E.145] INFORMATION TECHNOLOGY APPROPRIATION.
66.10An appropriation for a state agency information and telecommunications technology
66.11project must be made to the chief information officer. The chief information officer must
66.12manage and disburse the appropriation on behalf of the sponsoring state agency. Any
66.13appropriation for an information and telecommunications technology project made to a
66.14state agency other than the Office of Enterprise Technology is transferred to the chief
66.15information officer.
66.16EFFECTIVE DATE.This section is effective July 1, 2011, and applies to
66.17appropriations made before or after that date. The remainder of any appropriation subject
66.18to this section made before July 1, 2011, is transferred to the chief information officer on
66.19July 1, 2011. Ten percent of the unspent and unencumbered appropriations made before
66.20June 30, 2011, that would not otherwise cancel on June 30, 2011, that are transferred to
66.21the chief information officer, may be used for expenses relating to the transfer of functions
66.22under sections 1 to 8.
66.23 Sec. 6. TRANSFERS; TRANSITION.
66.24(a) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations
66.25relating to functions assigned to the chief information officer in Minnesota Statutes,
66.26section 16E.0151, are transferred to the Office of Enterprise Technology from all other
66.27state agencies, as defined in Minnesota Statutes, section 16E.03, subdivision 1, paragraph
66.28(e), effective July 1, 2011. All reporting relationships associated with the transferred
66.29powers, duties, responsibilities, assets, personnel, and unexpended appropriations are also
66.30transferred to the Office of Enterprise Technology on July 1, 2011. By January 15, 2012,
66.31the chief information officer shall submit to the legislature any statutory changes needed
66.32to complete implementation of the transfer in this section.
66.33(b) Prior to the transfer mandated by paragraph (a), the chief information officer
66.34must enter into a service-level agreement with each state agency governing the provision
67.1of information technology systems and services in Minnesota Statutes, section 16E.0151.
67.2The agreements must specify the services to be provided and the charges for these
67.3services. As specified in Minnesota Statutes, section 16E.0151, an agency may choose to
67.4obtain these services from an outside vendor, rather than from the Office of Enterprise
67.5Technology. Authority to enter into agreements under this paragraph is effective the day
67.6following final enactment, with the resulting agreements effective July 1, 2011.
67.7(c) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations
67.8relating to geospatial information systems are transferred from the commissioner of
67.9administration to the Office of Enterprise Technology.
67.10(d) Minnesota Statutes, section 15.039, applies to transfers in this section. Executive
67.11branch officials may use authority under Minnesota Statutes, section 16B.37, as necessary
67.12to implement this section.
67.13(e) The transfer of authority to the Office of Enterprise Technology in this article
67.14does not require expansion or consolidation of office space, data centers, help desks,
67.15or other systems. The chief information officer may implement expansion, relocation,
67.16or consolidation to the extent feasible and desirable with existing resources, or to the
67.17extent that savings resulting from the expansions or consolidations will pay for the costs
67.18associated with these activities during the biennium ending June 30, 2013.
67.19(f) Expenses relating to transfer of functions and other implementation of sections 1
67.20to 8 must be paid from the enterprise technology revolving fund.
67.21(g) The chief information officer must reduce the number of agency chief
67.22information officer positions to 15 by December 31, 2011. The chief information officer,
67.23in consultation with the commissioner of management and budget, must determine the
67.24general fund savings resulting from elimination of each chief information officer position,
67.25and the amount determined is transferred from the general fund appropriation to the
67.26agency to the enterprise technology revolving fund.
67.27 Sec. 7. STUDY.
67.28The chief information officer in the Office of Enterprise Technology shall report
67.29to the chairs and ranking minority members of the house of representatives and senate
67.30committees with jurisdiction over state government finance by January 15, 2012, on
67.31the feasibility and desirability of the office entering into service-level agreements with
67.32the State Lottery and the Statewide Radio Board regarding provision of information
67.33technology systems and services to those entities.
67.34 Sec. 8. REVISOR'S INSTRUCTION.
68.1The revisor of statutes shall recodify Minnesota Statutes, section 16B.99, into
68.2Minnesota Statutes, chapter 16E.
68.3 Sec. 9. EFFECTIVE DATE.
68.4Sections 1 to 8 are effective July 1, 2011. However, the chief information officer
68.5may phase in the transfer of functions required by sections 1 to 8 between July 1, 2011,
68.6and July 1, 2012."
68.7Delete the title and insert:
68.9relating to state government operations; reducing general fund appropriations
68.10to executive agencies; requiring contributions to enterprise real property
68.11technology system; establishing the Sunset Advisory Commission; allowing
68.12counties and cities to use a certified public accountant for audits; prohibiting
68.13legislative liaisons; eliminating assistant commissioner positions and reducing
68.14deputy commissioner positions; allowing state employees to compete for state
68.15business; establishing the SAVI program; changing provisions of performance
68.16data required in the budget proposal; requiring specific funding information for
68.17forecasted programs; implementing zero-based budgeting principles; establishing
68.18employee gainsharing program; establishing the Minnesota Pay for Performance
68.19Act; permitting selling and issuing appropriations bonds; establishing e-verify
68.20program for vendors and subcontractors; placing limitation on contracts for
68.21tax-related activities; changing procedures for service contracts; extending
68.22expiration date for Mississippi River Parkway Commission; implementing
68.23federal offset program for collection of debts owed to state agencies; changing
68.24provisions for performance appraisal system; requiring reduction in state work
68.25force; allowing reciprocal offset agreements with the federal government;
68.26requiring a request for proposals for recommendations on state building
68.27efficiency, state vehicle management, tax fraud prevention, and strategic
68.28sourcing; continuing state employee salary freeze; implementing state employee
68.29efficient use of health care incentive program; requiring a verification audit
68.30for dependent eligibility for state employee health insurance; requiring state
68.31job classification redesign; determining funds for Help America Vote Act;
68.32estimating new general fund revenues; consolidating information technology
68.33services; requiring reports; appropriating money;amending Minnesota Statutes
68.342010, sections 3.85, subdivision 3; 6.48; 15.057; 15.06, subdivision 8; 16A.10,
68.35subdivisions 1a, 1b, 1c; 16A.103, subdivision 1a; 16A.11, subdivision 3;
68.3616A.28, subdivision 3; 16B.03; 16B.99; 16C.08, subdivision 2; 16C.09;
68.3716E.14, by adding a subdivision; 37.06; 43A.08, subdivision 1; 43A.20;
68.3845.013; 84.01, subdivision 3; 116.03, subdivision 1; 116J.01, subdivision
68.395; 116J.035, subdivision 4; 161.1419, subdivision 8; 174.02, subdivision 2;
68.40241.01, subdivision 2; 270C.41; 270C.545; 471.697, subdivision 2; Laws 2009,
68.41chapter 101, article 2, section 106; Laws 2010, chapter 215, article 6, section 4;
68.42Laws 2010, chapter 361, article 3, section 8; proposing coding for new law in
68.43Minnesota Statutes, chapters 15; 16A; 16C; 16D; 16E; 43A; proposing coding
68.44for new law as Minnesota Statutes, chapter 3D; repealing Minnesota Statutes
68.452010, sections 16C.085; 43A.047; 179A.23; 197.585, subdivision 5."