SF 1047

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/30/2011 04:31pm

A bill for an act
relating to state government financing; establishing the Sunset Advisory
Commission; prohibiting legislative liaison positions in state agencies and
departments; eliminating assistant commissioner positions and reducing deputy
commissioner positions; changing provisions of performance data required
in the budget proposal; requiring specific funding information for forecasted
programs; implementing zero-based budgeting principles; implementing federal
offset program for collection of debts owed to state agencies; providing a state
employee salary freeze; providing an HSA-eligible high-deductible health plan
for state employees; requiring a 15 percent reduction in the state workforce;
requiring a verification audit for dependent eligibility for state employee health
insurance; requiring a request for proposals for recommendations on state
building efficiency, state vehicle management, tax fraud prevention, and strategic
sourcing; requiring reports; appropriating money; amending Minnesota Statutes
2010, sections 15.057; 15.06, subdivision 8; 16A.10, subdivisions 1a, 1b, 1c;
16A.103, subdivision 1a; 16A.11, subdivision 3; 16B.03; 43A.08, subdivision
1; 43A.23, subdivision 1; 45.013; 84.01, subdivision 3; 116.03, subdivision 1;
116J.01, subdivision 5; 116J.035, subdivision 4; 174.02, subdivision 2; 241.01,
subdivision 2; 270C.41; Laws 2010, chapter 215, article 6, section 4; proposing
coding for new law in Minnesota Statutes, chapters 16A; 16D; 43A; proposing
coding for new law as Minnesota Statutes, chapter 3D; repealing Minnesota
Statutes 2010, section 197.585, subdivision 5.

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

ARTICLE 1

STATE GOVERNMENT APPROPRIATIONS

Section 1. new text begin STATE GOVERNMENT APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2012" and "2013" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2012, or
June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
year 2013. "The biennium" is fiscal years 2012 and 2013.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2012 new text end		new text begin 2013 new text end

Sec. 2. new text begin LEGISLATURE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 61,732,000 new text end

new text begin $ new text end

new text begin 61,732,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 61,554,000 new text end	new text begin 61,554,000 new text end
new text begin Health Care Access new text end	new text begin 178,000 new text end	new text begin 178,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Senate new text end

new text begin 20,733,000 new text end

new text begin 20,733,000 new text end

new text begin Subd. 3. new text end new text begin House of Representatives new text end

new text begin 27,874,000 new text end

new text begin 27,874,000 new text end

new text begin Subd. 4. new text end new text begin Legislative Coordinating Commission new text end

new text begin 13,125,000 new text end

new text begin 13,125,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 12,947,000 new text end	new text begin 12,947,000 new text end
new text begin Health Care Access new text end	new text begin 178,000 new text end	new text begin 178,000 new text end

new text begin $120,000 the first year and $120,000 the
second year are for the support of the
Minnesota Sunset Advisory Commission
established under Minnesota Statutes,
chapter 3D.
new text end

Sec. 3. new text begin GOVERNOR AND LIEUTENANT GOVERNOR new text end

new text begin $ new text end

new text begin 2,859,000 new text end

new text begin $ new text end

new text begin 2,859,000 new text end

new text begin (a) By September 1 of each year, the
commissioner of management and budget
shall report to the chairs and ranking
minority members of the senate State
Government Innovation and Veterans Affairs
Committee and the house of representatives
State Government Finance Committee any
personnel costs incurred by the Offices of the
Governor and Lieutenant Governor that were
supported by appropriations to other agencies
during the previous fiscal year. The Office
of the Governor shall inform the chairs and
ranking minority members of the committees
before initiating any interagency agreements.
new text end

new text begin (b) During the biennium ending June 30,
2013, the Office of the Governor may not
receive payments of more than $670,000
each fiscal year from other executive
agencies under Minnesota Statutes, section
15.53, to support personnel costs incurred
by the office. Payments received under this
paragraph must be deposited in a special
revenue account. Money in the account is
appropriated to the Office of the Governor.
The authority in this paragraph supersedes
other law enacted in 2011 that limits the
ability of the office to enter into agreements
relating to personnel costs with other
executive branch agencies or prevents the use
of appropriations made to other agencies for
agreements with the office under Minnesota
Statutes, section 15.53.
new text end

Sec. 4. new text begin STATE AUDITOR new text end

new text begin $ new text end

new text begin 7,280,000 new text end

new text begin $ new text end

new text begin 7,280,000 new text end

new text begin $5,138,000 of this appropriation each year is
for the Audit Practice Division.
new text end

Sec. 5. new text begin ATTORNEY GENERAL new text end

new text begin $ new text end

new text begin 21,152,000 new text end

new text begin $ new text end

new text begin 21,152,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 18,873,000 new text end	new text begin 18,873,000 new text end
new text begin State Government Special Revenue new text end	new text begin 1,884,000 new text end	new text begin 1,884,000 new text end
new text begin Environmental new text end	new text begin 145,000 new text end	new text begin 145,000 new text end
new text begin Remediation new text end	new text begin 250,000 new text end	new text begin 250,000 new text end

new text begin Of this appropriation, $65,000 in the first
year and $65,000 in the second year is
for transfer to the commissioner of public
safety for a grant to the Minnesota County
Attorneys Association for prosecutor and law
enforcement training.
new text end

Sec. 6. new text begin SECRETARY OF STATE new text end

new text begin $ new text end

new text begin 4,810,000 new text end

new text begin $ new text end

new text begin 4,810,000 new text end

new text begin Any funds available in the account
established in Minnesota Statutes, section
5.30, pursuant to the Help America Vote Act,
are appropriated for the purposes and uses
authorized by federal law.
new text end

Sec. 7. new text begin CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD new text end

new text begin $ new text end

new text begin 689,000 new text end

new text begin $ new text end

new text begin 689,000 new text end

Sec. 8. new text begin INVESTMENT BOARD new text end

new text begin $ new text end

new text begin 139,000 new text end

new text begin $ new text end

new text begin 139,000 new text end

Sec. 9. new text begin ADMINISTRATIVE HEARINGS new text end

new text begin $ new text end

new text begin 7,634,000 new text end

new text begin $ new text end

new text begin 7,504,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 384,000 new text end	new text begin 254,000 new text end
new text begin Workers' Compensation new text end	new text begin 7,250,000 new text end	new text begin 7,250,000 new text end

new text begin $130,000 in the first year is for the cost
of considering complaints filed under
Minnesota Statutes, section 211B.32. Until
June 30, 2013, the chief administrative
law judge may not make any assessment
against a county or counties under Minnesota
Statutes, section 211B.37. Any amount of
this appropriation that remains unspent at
the end of the biennium must be canceled
to the general account of the state elections
campaign fund. The base for fiscal year 2014
is $130,000, to be available for the biennium,
under the same terms.
new text end

Sec. 10. new text begin OFFICE OF ENTERPRISE TECHNOLOGY new text end

new text begin $ new text end

new text begin 4,635,000 new text end

new text begin $ new text end

new text begin 4,635,000 new text end

new text begin During the biennium ending June 30, 2013,
the office must not charge fees to a public
noncommercial educational television
broadcast station for access to the state
information infrastructure.
new text end

Sec. 11. new text begin ADMINISTRATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 17,245,000 new text end

new text begin $ new text end

new text begin 17,245,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Government and Citizen Services new text end

new text begin 14,310,000 new text end

new text begin 14,310,000 new text end

new text begin $74,000 the first year and $74,000 the second
year are for the Council on Developmental
Disabilities.
new text end

new text begin $8,158,000 the first year and $8,158,000
the second year are for office space costs of
the legislature and veterans organizations,
ceremonial space, and statutorily free space.
new text end

new text begin The remaining balances in the: (1)
resource recovery account; (2) office supply
connections account; and (3) reduce savings
monitoring system account are transferred to
the general fund.
new text end

new text begin Subd. 3. new text end new text begin Administrative Management Support new text end

new text begin 1,460,000 new text end

new text begin 1,460,000 new text end

new text begin Subd. 4. new text end new text begin Public Broadcasting new text end

new text begin 1,475,000 new text end

new text begin 1,475,000 new text end

new text begin (a) The appropriations under this section are
to the commissioner of administration for the
purposes specified.
new text end

new text begin (b) $890,000 the first year and $890,000
the second year are for matching grants for
public television.
new text end

new text begin (c) $152,000 the first year and $152,000
the second year are for public television
equipment grants. Equipment or matching
grant allocations shall be made after
considering the recommendations of the
Minnesota Public Television Association.
new text end

new text begin (d) $264,000 the first year and $264,000 the
second year are for community service grants
to public educational radio stations.
new text end

new text begin (e) $92,000 the first year and $92,000 the
second year are for equipment grants to
public educational radio stations.
new text end

new text begin (f) The grants in paragraphs (d) and (e)
must be allocated after considering the
recommendations of the Association of
Minnesota Public Educational Radio Stations
under Minnesota Statutes, section 129D.14.
new text end

new text begin (g) $77,000 the first year and $77,000 the
second year are for grants to Minnesota
Public Radio, Inc., for upgrades to
Minnesota's Emergency Alert and AMBER
Alert Systems.
new text end

new text begin (h) Any unencumbered balance remaining
the first year for grants to public television
and radio stations does not cancel and is
available for the second year.
new text end

Sec. 12. new text begin CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD new text end

new text begin $ new text end

new text begin 325,000 new text end

new text begin $ new text end

new text begin 325,000 new text end

Sec. 13. new text begin MINNESOTA MANAGEMENT AND BUDGET new text end

new text begin $ new text end

new text begin 17,073,000 new text end

new text begin $ new text end

new text begin 16,823,000 new text end

new text begin $600,000 the first year and $600,000 the
second year are for zero-based budgeting
activities.
new text end

new text begin $250,000 the first year is for actuarial studies
required for the early retirement incentives
authorized under Minnesota Statutes, section
43A.347. This is a onetime appropriation.
new text end

Sec. 14. new text begin REVENUE new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 124,716,000 new text end

new text begin $ new text end

new text begin 124,766,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 120,481,000 new text end	new text begin 120,531,000 new text end
new text begin Health Care Access new text end	new text begin 1,749,000 new text end	new text begin 1,749,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,183,000 new text end	new text begin 2,183,000 new text end
new text begin Environmental new text end	new text begin 303,000 new text end	new text begin 303,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in subdivisions 2 and 3.
new text end

new text begin The commissioner must implement
any reduction in funding by reducing
administrative support functions before any
reduction to compliance and enforcement
programs.
new text end

new text begin Subd. 2. new text end new text begin Tax System Management new text end

new text begin 98,742,000 new text end

new text begin 98,742,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 94,507,000 new text end	new text begin 94,557,000 new text end
new text begin Health Care Access new text end	new text begin 1,749,000 new text end	new text begin 1,749,000 new text end
new text begin Highway User Tax Distribution new text end	new text begin 2,183,000 new text end	new text begin 2,183,000 new text end
new text begin Environmental new text end	new text begin 303,000 new text end	new text begin 303,000 new text end

new text begin Subd. 3. new text end new text begin Debt Collection Management new text end

new text begin 25,974,000 new text end

new text begin 25,974,000 new text end

Sec. 15. new text begin GAMBLING CONTROL new text end

new text begin $ new text end

new text begin 2,740,000 new text end

new text begin $ new text end

new text begin 2,740,000 new text end

new text begin These appropriations are from the lawful
gambling regulation account in the special
revenue fund.
new text end

Sec. 16. new text begin RACING COMMISSION new text end

new text begin $ new text end

new text begin 899,000 new text end

new text begin $ new text end

new text begin 899,000 new text end

new text begin These appropriations are from the racing
and card playing regulation accounts in the
special revenue fund.
new text end

Sec. 17. new text begin AMATEUR SPORTS COMMISSION new text end

new text begin $ new text end

new text begin 248,000 new text end

new text begin $ new text end

new text begin 248,000 new text end

Sec. 18. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin 7,909,000 new text end

new text begin $ new text end

new text begin 7,809,000 new text end

new text begin (a) Of this amount, $10,000 each year is for a
grant to the Upper Minnesota Film Office.
new text end

new text begin (b)(1) To develop maximum private sector
involvement in tourism, $500,000 the first
year and $500,000 the second year must
be matched by Explore Minnesota Tourism
from nonstate sources. Each $1 of state
incentive must be matched with $3 of private
sector funding. Cash match is defined as
revenue to the state or documented cash
expenditures directly expended to support
Explore Minnesota Tourism programs. Up
to one-half of the private sector contribution
may be in-kind or soft match. The incentive
in the first year shall be based on fiscal
year 2011 private sector contributions. The
incentive in the second year will be based on
fiscal year 2012 private sector contributions.
This incentive is ongoing.
new text end

new text begin (2) Funding for the marketing grants is
available either year of the biennium.
Unexpended grant funds from the first year
are available in the second year.
new text end

new text begin (3) Unexpended money from the general
fund appropriations made under this section
does not cancel but must be placed in a
special marketing account for use by Explore
Minnesota Tourism for additional marketing
activities.
new text end

new text begin (c) $276,000 the first year and $276,000 the
second year are for the Minnesota Film and
TV Board. The appropriation in each year
is available only upon receipt by the board
of $1 in matching contributions of money or
in-kind contributions from nonstate sources
for every $3 provided by this appropriation,
except that each year up to $50,000 is
available on July 1 even if the required
matching contribution has not been received
by that date.
new text end

new text begin (d) $100,000 the first year is for a grant to the
Minnesota Film and TV Board for the film
jobs production program under Minnesota
Statutes, section 116U.26. This appropriation
is available until expended.
new text end

Sec. 19. new text begin MINNESOTA HISTORICAL SOCIETY new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 20,141,000 new text end

new text begin $ new text end

new text begin 20,037,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Education and Outreach new text end

new text begin 11,336,000 new text end

new text begin 11,336,000 new text end

new text begin Notwithstanding Minnesota Statutes, section
138.668, the Minnesota Historical Society
may not charge a fee for its general tours at
the Capitol, but may charge fees for special
programs other than general tours.
new text end

new text begin Subd. 3. new text end new text begin Preservation and Access new text end

new text begin 8,479,000 new text end

new text begin 8,479,000 new text end

new text begin Subd. 4. new text end new text begin Fiscal Agent new text end

new text begin (a) Minnesota International Center new text end

new text begin 39,000 new text end

new text begin 39,000 new text end

new text begin (b) Minnesota Air National Guard Museum new text end

new text begin 14,000 new text end

new text begin -0- new text end

new text begin (c) Minnesota Military Museum new text end

new text begin 90,000 new text end

new text begin -0- new text end

new text begin (d) Farmamerica new text end

new text begin 115,000 new text end

new text begin 115,000 new text end

new text begin (e) Hockey Hall of Fame new text end

new text begin 68,000 new text end

new text begin 68,000 new text end

new text begin (f) Balances Forward new text end

new text begin Any unencumbered balance remaining in
this subdivision the first year does not cancel
but is available for the second year of the
biennium.
new text end

new text begin Subd. 5. new text end new text begin Fund Transfer new text end

new text begin The Minnesota Historical Society may
reallocate funds appropriated in and between
subdivisions 2 and 3 for any program
purposes and the appropriations are available
in either year of the biennium.
new text end

Sec. 20. new text begin BOARD OF THE ARTS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 6,672,000 new text end

new text begin $ new text end

new text begin 6,672,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Services new text end

new text begin 504,000 new text end

new text begin 504,000 new text end

new text begin Subd. 3. new text end new text begin Grants Program new text end

new text begin 4,266,000 new text end

new text begin 4,266,000 new text end

new text begin Subd. 4. new text end new text begin Regional Arts Councils new text end

new text begin 1,902,000 new text end

new text begin 1,902,000 new text end

Sec. 21. new text begin MINNESOTA HUMANITIES CENTER new text end

new text begin $ new text end

new text begin 928,000 new text end

new text begin $ new text end

new text begin 928,000 new text end

new text begin $246,000 the first year and $246,000 the
second year are for a grant to the Council
on Black Minnesotans established under
Minnesota Statutes, section 3.9225, for the
duties of the council.
new text end

new text begin $214,000 the first year and $214,000 the
second year are for a grant to the Council on
Asian-Pacific Minnesotans established under
Minnesota Statutes, section 3.9226, for the
duties of the council.
new text end

new text begin $231,000 the first year and $231,000 the
second year are for a grant to the Council
on the Affairs of Chicano/Latino People
established under Minnesota Statutes, section
3.9223, for the duties of the council.
new text end

new text begin By January 15 of each year, each council
receiving a grant under this section shall
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over the
council. The report must describe the results
obtained with the use of the grant, including
a description and evaluation of how the
council accomplished its statutory duties in
the preceding year.
new text end

Sec. 22. new text begin Minnesota Indian Affairs Council new text end

new text begin $ new text end

new text begin 422,000 new text end

new text begin $ new text end

new text begin 422,000 new text end

new text begin Of this appropriation $167,000 each year is
for a cultural resources specialist to assist the
council with the duties assigned to it relating
to Indian burial grounds under Minnesota
Statutes, section 307.08.
new text end

Sec. 23. new text begin PUBLIC FACILITIES AUTHORITY new text end

new text begin $ new text end

new text begin 82,000 new text end

new text begin $ new text end

new text begin 82,000 new text end

new text begin For the small community wastewater
treatment program under Minnesota Statutes,
chapter 446A.
new text end

Sec. 24. new text begin SCIENCE MUSEUM OF MINNESOTA new text end

new text begin $ new text end

new text begin 1,009,000 new text end

new text begin $ new text end

new text begin 1,009,000 new text end

Sec. 25. new text begin TORT CLAIMS new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin $ new text end

new text begin 161,000 new text end

new text begin These appropriations are to be spent by the
commissioner of management and budget
according to Minnesota Statutes, section
3.736, subdivision 7. If the appropriation for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

Sec. 26. new text begin MINNESOTA STATE RETIREMENT SYSTEM new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 3,122,000 new text end

new text begin $ new text end

new text begin 3,185,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Legislators new text end

new text begin 2,650,000 new text end

new text begin 2,704,000 new text end

new text begin Under Minnesota Statutes, sections 3A.03,
subdivision 2; 3A.04, subdivisions 3 and 4;
and 3A.115.
new text end

new text begin Subd. 3. new text end new text begin Constitutional Officers new text end

new text begin 472,000 new text end

new text begin 481,000 new text end

new text begin Under Minnesota Statutes, section 352C.001.
new text end

new text begin If an appropriation in this section for either
year is insufficient, the appropriation for the
other year is available for it.
new text end

Sec. 27. new text begin MERF DIVISION ACCOUNT new text end

new text begin $ new text end

new text begin 22,750,000 new text end

new text begin $ new text end

new text begin 22,750,000 new text end

new text begin These amounts are estimated to be needed
under Minnesota Statutes, section 353.505.
new text end

Sec. 28. new text begin TEACHERS RETIREMENT ASSOCIATION new text end

new text begin $ new text end

new text begin 15,454,000 new text end

new text begin $ new text end

new text begin 15,454,000 new text end

new text begin The amounts estimated to be needed are as
follows:
new text end

new text begin (a) Special direct state aid. $12,954,000 the
first year and $12,954,000 the second year
are for special direct state aid authorized
under Minnesota Statutes, section 354A.12,
subdivisions 3a and 3c.
new text end

new text begin (b) Special direct state matching aid.
$2,500,000 the first year and $2,500,000
the second year are for special direct state
matching aid authorized under Minnesota
Statutes, section 354A.12, subdivision 3b.
new text end

Sec. 29. new text begin ST. PAUL TEACHERS RETIREMENT FUND new text end

new text begin $ new text end

new text begin 2,827,000 new text end

new text begin $ new text end

new text begin 2,827,000 new text end

new text begin The amounts estimated to be needed for
special direct state aid to first class city
teachers retirement funds authorized under
Minnesota Statutes, section 354A.12,
subdivisions 3a and 3c.
new text end

Sec. 30. new text begin DULUTH TEACHERS RETIREMENT FUND new text end

new text begin $ new text end

new text begin 346,000 new text end

new text begin $ new text end

new text begin 346,000 new text end

new text begin The amounts estimated to be needed for
special direct state aid to first class city
teachers retirement funds authorized under
Minnesota Statutes, section 354A.12,
subdivisions 3a and 3c.
new text end

Sec. 31. new text begin STATE LOTTERY new text end

new text begin Notwithstanding Minnesota Statutes, section
349A.10, subdivision 3, the operating budget
must not exceed $29,000,000 in fiscal year
2012 and $29,000,000 in fiscal year 2013.
new text end

Sec. 32. new text begin GENERAL CONTINGENT ACCOUNTS new text end

new text begin $ new text end

new text begin 1,000,000 new text end

new text begin $ new text end

new text begin 500,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 500,000 new text end	new text begin -0- new text end
new text begin State Government Special Revenue new text end	new text begin 400,000 new text end	new text begin 400,000 new text end
new text begin Workers' Compensation new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

new text begin (a) The appropriations in this section
may only be spent with the approval of
the governor after consultation with the
Legislative Advisory Commission pursuant
to Minnesota Statutes, section 3.30.
new text end

new text begin (b) If an appropriation in this section for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin (c) If a contingent account appropriation
is made in one fiscal year, it should be
considered a biennial appropriation.
new text end

Sec. 33. new text begin PROBLEM GAMBLING APPROPRIATION.
new text end

new text begin $225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from
the lottery prize fund to the Gambling Control Board for a grant to the state affiliate
recognized by the National Council on Problem Gambling. The affiliate must provide
services to increase public awareness of problem gambling, education and training for
individuals and organizations providing effective treatment services to problem gamblers
and their families, and research relating to problem gambling. These services must be
complimentary to and not duplicative of the services provided through the problem
gambling program administered by the commissioner of human services.
new text end

Sec. 34. new text begin SAVINGS; APPROPRIATION REDUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Executive and judicial branch agencies. new text end

new text begin The commissioner of
management and budget must reduce general fund appropriations to executive and
judicial branch agencies for agency operations for the biennium ending June 30, 2013,
by $302,100,000. To the greatest extent possible, these reductions must come from
savings provided by the reforms, efficiencies, and cost-savings measures contained in
this act, including:
new text end

new text begin (1) reduction in the number of full-time equivalent employees;
new text end

new text begin (2) salary and benefit changes;
new text end

new text begin (3) elimination of deputy and assistant commissioner positions;
new text end

new text begin (4) operational efficiencies and cost savings obtained under contracts with vendors;
and
new text end

new text begin (5) verification of dependent eligibility for state employee group insurance coverage.
new text end

new text begin If operational efficiencies and cost savings obtained under contracts with vendors
yield savings in dedicated funds other than those established in the state constitution or
protected by federal law, the commissioner of management and budget may transfer
the amount of savings to the general fund. Reductions made in 2013 must be reflected
as reductions in agency base budgets for fiscal years 2014 and 2015. The commissioner
of management and budget must report to the chairs and ranking minority members of
the senate Finance Committee and the house of representatives Ways and Means and
Finance Committees regarding the amount of reductions in spending by each agency
under this section.
new text end

new text begin Subd. 2. new text end

new text begin Legislature. new text end

new text begin The commissioner of management and budget must reduce
general fund appropriations to the legislature for the biennium ending June 30, 2013, by
$6,709,000. To the greatest extent possible, these reductions must come from savings
provided by the salary and benefit changes contained in this act.
new text end

new text begin The commissioner must provide notice of proposed reductions under this subdivision
to the Legislative Advisory Commission 30 days before the reductions take effect.
new text end

ARTICLE 2

MILITARY AFFAIRS AND VETERANS AFFAIRS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund and are available for the fiscal years indicated for each purpose. The figures
"2012" and "2013" used in this article mean that the appropriations listed under them are
available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The
first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is
fiscal years 2012 and 2013.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2012 new text end		new text begin 2013 new text end

Sec. 2. new text begin MILITARY AFFAIRS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 20,871,000 new text end

new text begin $ new text end

new text begin 20,871,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Maintenance of Training Facilities new text end

new text begin 6,660,000 new text end

new text begin 6,660,000 new text end

new text begin Subd. 3. new text end new text begin General Support new text end

new text begin 2,363,000 new text end

new text begin 2,363,000 new text end

new text begin Subd. 4. new text end new text begin Enlistment Incentives new text end

new text begin 11,848,000 new text end

new text begin 11,848,000 new text end

new text begin $1,500,000 each year is for the National
Guard's tuition reimbursement program. This
is a onetime appropriation.
new text end

new text begin If appropriations for either year of the
biennium are insufficient, the appropriation
from the other year is available. The
appropriations for enlistment incentives are
available until expended.
new text end

Sec. 3. new text begin VETERANS AFFAIRS new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 57,795,000 new text end

new text begin $ new text end

new text begin 58,595,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 57,695,000 new text end	new text begin 58,595,000 new text end
new text begin Special Revenue new text end	new text begin 100,000 new text end	new text begin -0- new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Veterans Services new text end

new text begin 13,879,000 new text end

new text begin 13,779,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 13,779,000 new text end	new text begin 13,779,000 new text end
new text begin Special Revenue new text end	new text begin 100,000 new text end	new text begin -0- new text end

new text begin $100,000 in the first year is from the
"Support Our Troops" account established
under Minnesota Statutes, section 190.19,
subdivision 2a, for a grant to the Minnesota
Assistance Council for Veterans. This is a
onetime appropriation.
new text end

new text begin $945,000 each year is for the higher
education veterans assistance program under
Minnesota Statutes, section 197.585. This is
a onetime appropriation.
new text end

new text begin The amount appropriated from the general
fund under Minnesota Statutes, section
197.791, subdivision 6, to pay benefit
amounts under Minnesota Statutes, section
197.791, subdivision 5, must not exceed
$794,000 the first year and $864,000 the
second year. If the appropriation under
Minnesota Statutes, section 197.791,
subdivision 6, is insufficient for either year
of the biennium, the appropriation from the
other year is available for it.
new text end

new text begin $353,000 each year is for grants to the
following congressionally chartered veterans
service organizations, as designated by the
commissioner: Disabled American Veterans,
Military Order of the Purple Heart, the
American Legion, Veterans of Foreign Wars,
Vietnam Veterans of America, AMVETS,
and Paralyzed Veterans of America. This
funding must be allocated in direct proportion
to the funding currently being provided by
the commissioner to these organizations.
new text end

new text begin Subd. 3. new text end new text begin Veterans Homes new text end

new text begin 43,916,000 new text end

new text begin 44,816,000 new text end

new text begin Veterans Homes Special Revenue Account.
The general fund appropriations made to
the department may be transferred to a
veterans homes special revenue account in
the special revenue fund in the same manner
as other receipts are deposited according
to Minnesota Statutes, section 198.34, and
are appropriated to the department for the
operation of veterans homes facilities and
programs.
new text end

Sec. 4.

Laws 2010, chapter 215, article 6, section 4, is amended to read:

Sec. 4. VETERANS HOMES

Of the appropriation in Laws 2009, chapter
94, article 3, section 2, subdivision 3, or from
funds carried forward from fiscal year 2009:

(1) deleted text begin $1,000,000 deleted text end new text begin $800,000 new text end in fiscal year 2011
is for operational expenses related to the
21-bed addition at the Fergus Falls Veterans
Home new text begin and $200,000 is for start-up costs at
the Minneapolis adult day care center, and
any money unspent at the end of fiscal year
2011 for either of these purposes carries
forward and is available in fiscal year 2012 new text end ;
and

(2) $113,000 in fiscal year 2011 is for start-up
expenses related to the opening of an adult
deleted text begin daycare deleted text end new text begin day care new text end facility at the Minneapolis
Veterans Home.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 197.585, subdivision 5, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 3

STATE GOVERNMENT

Section 1.

new text begin [3D.01] SHORT TITLE.
new text end

new text begin This chapter may be cited as the "Minnesota Sunset Act."
new text end

Sec. 2.

new text begin [3D.02] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin The definitions in this section apply to this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Advisory committee. new text end

new text begin "Advisory committee" means a committee, council,
commission, or other entity created under state law whose primary function is to advise
a state agency.
new text end

new text begin Subd. 3. new text end

new text begin Commission. new text end

new text begin "Commission" means the Sunset Advisory Commission.
new text end

new text begin Subd. 4. new text end

new text begin State agency. new text end

new text begin "State agency" means an agency expressly made subject
to this chapter.
new text end

Sec. 3.

new text begin [3D.03] SUNSET ADVISORY COMMISSION.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin The Sunset Advisory Commission consists of 12
members appointed as follows:
new text end

new text begin (1) five senators and one public member, appointed according to the rules of the
senate, with no more than three senators from the majority caucus; and
new text end

new text begin (2) five members of the house of representatives and one public member, appointed
by the speaker of the house, with no more than three of the house of representatives
members from the majority caucus.
new text end

new text begin Subd. 2. new text end

new text begin Public member restrictions. new text end

new text begin An individual is not eligible for appointment
as a public member if the individual or the individual's spouse is:
new text end

new text begin (1) regulated by a state agency that the commission will review during the term for
which the individual would serve;
new text end

new text begin (2) employed by, participates in the management of, or directly or indirectly has
more than a ten percent interest in a business entity or other organization regulated by a
state agency the commission will review during the term for which the individual would
serve; or
new text end

new text begin (3) required to register as a lobbyist under chapter 10A because of the person's
activities for compensation on behalf of a profession or entity related to the operation of
an agency under review.
new text end

new text begin Subd. 3. new text end

new text begin Removal. new text end

new text begin (a) It is a ground for removal of a public member from the
commission if the member does not have the qualifications required by subdivision 2
for appointment to the commission at the time of appointment or does not maintain the
qualifications while serving on the commission. The validity of the commission's action is
not affected by the fact that it was taken when a ground for removal of a public member
from the commission existed.
new text end

new text begin (b) Except as provided in paragraph (a), a public member may be removed only as
provided in section 15.0575, subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Terms. new text end

new text begin Legislative members serve at the pleasure of the appointing
authority. Public members serve two-year terms expiring the first Monday in January of
each odd-numbered year.
new text end

new text begin Subd. 5. new text end

new text begin Limits. new text end

new text begin Members are subject to the following restrictions:
new text end

new text begin (1) after an individual serves four years on the commission, the individual is not
eligible for appointment to another term or part of a term;
new text end

new text begin (2) a legislative member who serves a full term may not be appointed to an
immediately succeeding term; and
new text end

new text begin (3) a public member may not serve consecutive terms, and, for purposes of this
prohibition, a member is considered to have served a term only if the member has served
more than one-half of the term.
new text end

new text begin Subd. 6. new text end

new text begin Appointments. new text end

new text begin Appointments must be made before the first Monday in
January of each odd-numbered year.
new text end

new text begin Subd. 7. new text end

new text begin Legislative members. new text end

new text begin If a legislative member ceases to be a member
of the legislative body from which the member was appointed, the member vacates
membership on the commission.
new text end

new text begin Subd. 8. new text end

new text begin Vacancies. new text end

new text begin If a vacancy occurs, the appointing authority shall appoint a
person to serve for the remainder of the unexpired term in the same manner as the original
appointment.
new text end

new text begin Subd. 9. new text end

new text begin Officers. new text end

new text begin The commission shall have a chair and vice-chair as presiding
officers.
new text end

new text begin Subd. 10. new text end

new text begin Quorum; voting. new text end

new text begin Seven members of the commission constitute a
quorum. A final action or recommendation may not be made unless approved by a
recorded vote of at least seven members. All other actions by the commission shall be
decided by a majority of the members present and voting.
new text end

new text begin Subd. 11. new text end

new text begin Compensation. new text end

new text begin Each public member shall be reimbursed for expenses
as provided in section 15.0575. Compensation for legislators is as determined by the
members' legislative chamber.
new text end

Sec. 4.

new text begin [3D.04] STAFF.
new text end

new text begin The Legislative Coordinating Commission shall provide staff and administrative
services for the commission.
new text end

Sec. 5.

new text begin [3D.05] RULES.
new text end

new text begin The commission may adopt rules necessary to carry out this chapter.
new text end

Sec. 6.

new text begin [3D.06] AGENCY REPORT TO COMMISSION.
new text end

new text begin Before September 1 of the odd-numbered year before the year in which a state
agency is sunset, the agency commissioner shall report to the commission:
new text end

new text begin (1) information regarding the application to the agency of the criteria in section
3D.10;
new text end

new text begin (2) a priority-based budget for the agency;
new text end

new text begin (3) an inventory of all boards, commissions, committees, and other entities related
to the agency; and
new text end

new text begin (4) any other information that the agency commissioner considers appropriate or that
is requested by the commission.
new text end

Sec. 7.

new text begin [3D.07] COMMISSION DUTIES.
new text end

new text begin Before January 1 of the year in which a state agency subject to this chapter and its
advisory committees are sunset, the commission shall:
new text end

new text begin (1) review and take action necessary to verify the reports submitted by the agency;
and
new text end

new text begin (2) conduct a review of the agency based on the criteria provided in section 3D.10
and prepare a written report.
new text end

Sec. 8.

new text begin [3D.08] PUBLIC HEARINGS.
new text end

new text begin Before February 1 of the year a state agency subject to this chapter and its advisory
committees are sunset, the commission shall conduct public hearings concerning but not
limited to the application to the agency of the criteria provided in section 3D.10.
new text end

Sec. 9.

new text begin [3D.09] COMMISSION REPORT.
new text end

new text begin By February 1 of each even-numbered year, the commission shall present to the
legislature and the governor a report on the agencies and advisory committees reviewed.
In the report the commission shall include:
new text end

new text begin (1) its findings regarding the criteria prescribed by section 3D.10;
new text end

new text begin (2) its recommendations based on the matters prescribed by section 3D.11; and
new text end

new text begin (3) other information the commission considers necessary for a complete review
of the agency.
new text end

Sec. 10.

new text begin [3D.10] CRITERIA FOR REVIEW.
new text end

new text begin The commission and its staff shall consider the following criteria in determining
whether a public need exists for the continuation of a state agency or its advisory
committees or for the performance of the functions of the agency or its advisory
committees:
new text end

new text begin (1) the efficiency and effectiveness with which the agency or the advisory committee
operates;
new text end

new text begin (2) an identification of the mission, goals, and objectives intended for the agency or
advisory committee and of the problem or need that the agency or advisory committee
was intended to address and the extent to which the mission, goals, and objectives have
been achieved and the problem or need has been addressed;
new text end

new text begin (3) an identification of any activities of the agency in addition to those granted by
statute and of the authority for those activities and the extent to which those activities
are needed;
new text end

new text begin (4) an assessment of authority of the agency relating to fees, inspections,
enforcement, and penalties;
new text end

new text begin (5) whether less restrictive or alternative methods of performing any function that
the agency performs could adequately protect or provide service to the public;
new text end

new text begin (6) the extent to which the jurisdiction of the agency and the programs administered
by the agency overlap or duplicate those of other agencies, the extent to which the agency
coordinates with those agencies, and the extent to which the programs administered by the
agency can be consolidated with the programs of other state agencies;
new text end

new text begin (7) the promptness and effectiveness with which the agency addresses complaints
concerning entities or other persons affected by the agency, including an assessment of the
agency's administrative hearings process;
new text end

new text begin (8) an assessment of the agency's rulemaking process and the extent to which the
agency has encouraged participation by the public in making its rules and decisions and
the extent to which the public participation has resulted in rules that benefit the public;
new text end

new text begin (9) the extent to which the agency has complied with federal and state laws and
applicable rules regarding equality of employment opportunity and the rights and privacy
of individuals, and state law and applicable rules of any state agency regarding purchasing
guidelines and programs for historically underutilized businesses;
new text end

new text begin (10) the extent to which the agency issues and enforces rules relating to potential
conflicts of interest of its employees;
new text end

new text begin (11) the extent to which the agency complies with chapter 13 and follows records
management practices that enable the agency to respond efficiently to requests for public
information; and
new text end

new text begin (12) the effect of federal intervention or loss of federal funds if the agency is
abolished.
new text end

Sec. 11.

new text begin [3D.11] RECOMMENDATIONS.
new text end

new text begin (a) In its report on a state agency, the commission shall:
new text end

new text begin (1) make recommendations on the abolition, continuation, or reorganization of each
affected state agency and its advisory committees and on the need for the performance of
the functions of the agency and its advisory committees;
new text end

new text begin (2) make recommendations on the consolidation, transfer, or reorganization of
programs within state agencies not under review when the programs duplicate functions
performed in agencies under review; and
new text end

new text begin (3) make recommendations to improve the operations of the agency, its policy body,
and its advisory committees, including management recommendations that do not require
a change in the agency's enabling statute.
new text end

new text begin (b) The commission shall include the estimated fiscal impact of its recommendations
and may recommend appropriation levels for certain programs to improve the operations
of the state agency.
new text end

new text begin (c) The commission shall have drafts of legislation prepared to carry out the
commission's recommendations under this section, including legislation necessary
to continue the existence of agencies that would otherwise sunset if the commission
recommends continuation of an agency.
new text end

new text begin (d) After the legislature acts on the report under section 3D.09, the commission shall
present to the legislative auditor the commission's recommendations that do not require
a statutory change to be put into effect. Subject to the legislative audit commission's
approval, the legislative auditor may examine the recommendations and include as part
of the next audit of the agency a report on whether the agency has implemented the
recommendations and, if so, in what manner.
new text end

Sec. 12.

new text begin [3D.12] MONITORING OF RECOMMENDATIONS.
new text end

new text begin During each legislative session, the staff of the commission shall monitor legislation
affecting agencies that have undergone sunset review and shall periodically report
to the members of the commission on proposed changes that would modify prior
recommendations of the commission.
new text end

Sec. 13.

new text begin [3D.13] REVIEW OF ADVISORY COMMITTEES.
new text end

new text begin An advisory committee, the primary function of which is to advise a particular state
agency, is subject to sunset on the date set for sunset of the agency unless the advisory
committee is expressly continued by law.
new text end

Sec. 14.

new text begin [3D.14] CONTINUATION BY LAW.
new text end

new text begin During the regular session immediately before the sunset of a state agency or an
advisory committee that is subject to this chapter, the legislature may enact legislation
to continue the agency or advisory committee for a period not to exceed 12 years. This
chapter does not prohibit the legislature from:
new text end

new text begin (1) terminating a state agency or advisory committee subject to this chapter at a date
earlier than that provided in this chapter; or
new text end

new text begin (2) considering any other legislation relative to a state agency or advisory committee
subject to this chapter.
new text end

Sec. 15.

new text begin [3D.15] PROCEDURE AFTER TERMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Termination. new text end

new text begin Unless otherwise provided by law:
new text end

new text begin (1) if after sunset review a state agency is abolished, the agency may continue in
existence until June 30 of the following year to conclude its business;
new text end

new text begin (2) abolishment does not reduce or otherwise limit the powers and authority of the
state agency during the concluding year;
new text end

new text begin (3) a state agency is terminated and shall cease all activities at the expiration of
the one-year period; and
new text end

new text begin (4) all rules that have been adopted by the state agency expire at the expiration of
the one-year period.
new text end

new text begin Subd. 2. new text end

new text begin Funds of abolished agency or advisory committee. new text end

new text begin (a) Any unobligated
and unexpended appropriations of an abolished agency or advisory committee lapse on
June 30 of the year after abolishment.
new text end

new text begin (b) Except as provided by subdivision 4 or as otherwise provided by law, all money
in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
year after abolishment is transferred to the general fund. The part of the law dedicating
the money to a specific fund of an abolished agency becomes void on June 30 of the year
after abolishment.
new text end

new text begin Subd. 3. new text end

new text begin Property and records of abolished agency or advisory committee.
new text end

new text begin Unless the governor designates an appropriate state agency as prescribed by subdivision 4,
property and records in the custody of an abolished state agency or advisory committee
on June 30 of the year after abolishment must be transferred to the commissioner of
administration. If the governor designates an appropriate state agency, the property and
records must be transferred to the designated state agency.
new text end

new text begin Subd. 4. new text end

new text begin Continuing obligations. new text end

new text begin (a) The legislature recognizes the state's
continuing obligation to pay bonded indebtedness and all other obligations, including
lease, contract, and other written obligations, incurred by a state agency or advisory
committee abolished under this chapter, and this chapter does not impair or impede the
payment of bonded indebtedness and all other obligations, including lease, contract, and
other written obligations, in accordance with their terms. If an abolished state agency or
advisory committee has outstanding bonded indebtedness or other outstanding obligations,
including lease, contract, and other written obligations, the bonds and all other obligations,
including lease, contract, and other written obligations, remain valid and enforceable in
accordance with their terms and subject to all applicable terms and conditions of the laws
and proceedings authorizing the bonds and all other obligations, including lease, contract,
and other written obligations.
new text end

new text begin (b) The governor shall designate an appropriate state agency that shall continue to
carry out all covenants contained in the bonds and in all other obligations, including lease,
contract, and other written obligations, and the proceedings authorizing them, including
the issuance of bonds, and the performance of all other obligations, including lease,
contract, and other written obligations, to complete the construction of projects or the
performance of other obligations, including lease, contract, and other written obligations.
new text end

new text begin (c) The designated state agency shall provide payment from the sources of payment
of the bonds in accordance with the terms of the bonds and shall provide payment from
the sources of payment of all other obligations, including lease, contract, and other written
obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
until the bonds and interest on the bonds are paid in full and all other obligations,
including lease, contract, and other written obligations, are performed and paid in full.
If the proceedings so provide, all funds established by laws or proceedings authorizing
the bonds or authorizing other obligations, including lease, contract, and other written
obligations, must remain with the comptroller or the previously designated trustees. If the
proceedings do not provide that the funds remain with the comptroller or the previously
designated trustees, the funds must be transferred to the designated state agency.
new text end

Sec. 16.

new text begin [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
new text end

new text begin The commission may request the assistance of state agencies and officers. When
assistance is requested, a state agency or officer shall assist the commission. In carrying
out its functions under this chapter, the commission or its designated staff member may
inspect the records, documents, and files of any state agency.
new text end

Sec. 17.

new text begin [3D.17] RELOCATION OF EMPLOYEES.
new text end

new text begin If an employee is displaced because a state agency or its advisory committee is
abolished or reorganized, the state agency shall make a reasonable effort to relocate the
displaced employee.
new text end

Sec. 18.

new text begin [3D.18] SAVING PROVISION.
new text end

new text begin Except as otherwise expressly provided, abolition of a state agency does not affect
rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
arose, or proceedings begun before the effective date of the abolition.
new text end

Sec. 19.

new text begin [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
AGENCY.
new text end

new text begin Each bill filed in a house of the legislature that would create a new state agency or
a new advisory committee to a state agency shall be reviewed by the commission. The
commission shall review the bill to determine if:
new text end

new text begin (1) the proposed functions of the agency or committee could be administered by one
or more existing state agencies or advisory committees;
new text end

new text begin (2) the form of regulation, if any, proposed by the bill is the least restrictive form of
regulation that will adequately protect the public;
new text end

new text begin (3) the bill provides for adequate public input regarding any regulatory function
proposed by the bill; and
new text end

new text begin (4) the bill provides for adequate protection against conflicts of interest within
the agency or committee.
new text end

Sec. 20.

new text begin [3D.20] GIFTS AND GRANTS.
new text end

new text begin The commission may accept gifts, grants, and donations from any organization
described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding
any activity under this chapter. All gifts, grants, and donations must be accepted in an
open meeting by a majority of the voting members of the commission and reported in the
public record of the commission with the name of the donor and purpose of the gift, grant,
or donation. Money received under this section is appropriated to the commission.
new text end

Sec. 21.

new text begin [3D.21] EXPIRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Group 1. new text end

new text begin The following agencies are sunset and expire on June
30, 2012: Department of Health, Department of Human Rights, Department of Human
Services, all health-related licensing boards listed in section 214.01, Council on Affairs
of Chicano/Latino People, Council on Black Minnesotans, Council on Asian-Pacific
Minnesotans, Indian Affairs Council, Council on Disabilities, and all advisory groups
associated with these agencies.
new text end

new text begin Subd. 2. new text end

new text begin Group 2. new text end

new text begin The following agencies are sunset and expire on June 30, 2014:
Department of Education, Board of Teaching, Minnesota Office of Higher Education, and
all advisory groups associated with these agencies.
new text end

new text begin Subd. 3. new text end

new text begin Group 3. new text end

new text begin The following agencies are sunset and expire on June 30, 2016:
Department of Commerce, Department of Employment and Economic Development,
Department of Labor and Industry, all non-health-related licensing boards listed in
section 214.01 except as otherwise provided in this section, Explore Minnesota Tourism,
Public Utilities Commission, Iron Range Resources and Rehabilitation Board, Bureau of
Mediation Services, Combative Sports Commission, Amateur Sports Commission, and all
advisory groups associated with these agencies.
new text end

new text begin Subd. 4. new text end

new text begin Group 4. new text end

new text begin The following agencies are sunset and expire on June 30, 2018:
Department of Corrections, Department of Public Safety, Department of Transportation,
Peace Officer Standards and Training Board, Corrections Ombudsman, and all advisory
groups associated with these agencies.
new text end

new text begin Subd. 5. new text end

new text begin Group 5. new text end

new text begin The following agencies are sunset and expire on June 30, 2020:
Department of Agriculture, Department of Natural Resources, Pollution Control Agency,
Board of Animal Health, Board of Water and Soil Resources, and all advisory groups
associated with these agencies.
new text end

new text begin Subd. 6. new text end

new text begin Group 6. new text end

new text begin The following agencies are sunset and expire on June 30, 2022:
Department of Administration, Department of Management and Budget, Department of
Military Affairs, Department of Revenue, Department of Veterans Affairs, Arts Board,
Minnesota Zoo, Office of Administrative Hearings, Campaign Finance and Public
Disclosure Board, Capitol Area Architectural and Planning Board, Office of Enterprise
Technology, Minnesota Racing Commission, and all advisory groups associated with
these agencies.
new text end

new text begin Subd. 7. new text end

new text begin Continuation. new text end

new text begin Following sunset review of an agency, the legislature may
act within the same legislative session in which the sunset report was received on Sunset
Advisory Commission recommendations to continue or reorganize the agency.
new text end

new text begin Subd. 8. new text end

new text begin Other groups. new text end

new text begin The commission may review, under the criteria in
section 3D.10, and propose to the legislature an expiration date for any agency, board,
commission, or program not listed in this section.
new text end

Sec. 22.

Minnesota Statutes 2010, section 15.057, is amended to read:

15.057 PUBLICITY REPRESENTATIVES new text begin AND LEGISLATIVE LIAISONS new text end .

new text begin Subdivision 1. new text end

new text begin Publicity representatives. new text end

No state department, bureau, or division,
whether the same operates on funds appropriated or receipts or fees of any nature
whatsoever, except the Department of Transportation, the Department of Employment
and Economic Development, the Game and Fish Division, State Agricultural Society, and
Explore Minnesota Tourism shall use any of such funds for the payment of the salary or
expenses of a publicity representative. The head of any such department, bureau, or
division shall be personally liable for funds used contrary to this provision. This deleted text begin section deleted text end new text begin
subdivision new text end shall not be construed, however, as preventing any such department, bureau,
or division from sending out any bulletins or other publicity required by any state law or
necessary for the satisfactory conduct of the business for which such department, bureau,
or division was created.

new text begin Subd. 2. new text end

new text begin Legislative liaisons. new text end

new text begin No state agency may use any money appropriated to
it for the salary or expenses of an individual serving as a liaison for the legislative affairs
of the agency. This subdivision does not prevent any employee of a state agency from
providing information requested by legislators and providing testimony at legislative
hearings.
new text end

Sec. 23.

Minnesota Statutes 2010, section 15.06, subdivision 8, is amended to read:

Subd. 8.

Number of deputy commissioners.

deleted text begin Unless specifically authorized by
statute, other than section 43A.08, subdivision 2 deleted text end new text begin Except for the Department of Veterans
Affairs new text end , no department or agency specified in subdivision 1 shall have more than one
deputy commissioner. new text begin No department or agency specified in subdivision 1 may employ an
assistant commissioner. new text end

Sec. 24.

Minnesota Statutes 2010, section 16A.10, subdivision 1a, is amended to read:

Subd. 1a.

Purpose of performance data.

Performance data shall be presented in
the budget proposal to:

(1) provide information so that the legislature can determine the extent to which
state programs new text begin and activities new text end are successful;

(2) encourage agencies to develop clear new text begin and measurable new text end goals and objectives for
their programs new text begin and activities new text end ; and

(3) strengthen accountability to Minnesotans by providing a record of state
government's performance in providing effective and efficient services.

Sec. 25.

Minnesota Statutes 2010, section 16A.10, subdivision 1b, is amended to read:

Subd. 1b.

Performance data format.

new text begin (a) As part of the budget proposal, new text end agencies
shall new text begin :
new text end

new text begin (1) describe the goals and objectives of each agency program and activity; and
new text end

new text begin (2) new text end present performance data that measures the performance of programs new text begin and
activities new text end in meeting deleted text begin program deleted text end goals and objectives.

new text begin (b) new text end Measures reported new text begin must be outcome-based and objective, and new text end may include
indicators of outputs, efficiency, deleted text begin outcomes, deleted text end and other measures relevant to understanding
each program new text begin and activity new text end .

new text begin (c) new text end Agencies shall present as much historical information as needed to understand
major trends and shall set targets for future performance issues deleted text begin where feasible and
appropriate deleted text end . The information shall appropriately highlight agency performance issues that
would assist legislative review and decision making.

new text begin (d) For purposes of this subdivision, subdivision 1a, and section 16A.106, the terms
"program" and "activity" are used in the same manner as the terms are used in state
budgeting. However, the commissioner may authorize an agency to define these terms in a
different manner if that allows for a more effective presentation of performance data.
new text end

Sec. 26.

Minnesota Statutes 2010, section 16A.10, subdivision 1c, is amended to read:

Subd. 1c.

Performance measures for change items.

For each change item in the
budget proposal requesting new or increased funding, the budget document must present
proposed performance measures that can be used to determine if the new or increased
funding is accomplishing its goals. To the extent possible, each budget change item
must identify relevant Minnesota Milestones and other statewide goals and indicators
related to the proposed initiative. deleted text begin The commissioner must report to the Subcommittee on
Government Accountability established under section 3.885, subdivision 10, regarding the
format to be used for the presentation and selection of Minnesota Milestones and other
statewide goals and indicators.
deleted text end

Sec. 27.

Minnesota Statutes 2010, section 16A.103, subdivision 1a, is amended to read:

Subd. 1a.

Forecast parameters.

The forecast must assume the continuation of
current laws and reasonable estimates of projected growth in the national and state
economies and affected populations. Revenue must be estimated for all sources provided
for in current law. Expenditures must be estimated for all obligations imposed by law and
those projected to occur as a result of variables outside the control of the legislature.
new text begin Expenditures for the current biennium must be based on actual appropriations or, for
forecasted programs, the amount needed to fund the formula in law. The base for
expenditures projections for the next biennium is the amount appropriated in the second
year of the current biennium, or, for forecasted programs, the amount needed to fund the
formula in law. new text end Expenditure estimates must not include an allowance for inflation.

Sec. 28.

new text begin [16A.106] ZERO-BASED BUDGETING PRINCIPLES.
new text end

new text begin Subdivision 1. new text end

new text begin Determination. new text end

new text begin Each biennium, the proposed budget for
approximately one-half of the expenditure programs, as selected according to subdivision
2, must be prepared using the principles of zero-based budgeting specified in subdivision
4. Programs that are not designated for one biennium must be designated for the next
biennium. Budgets for the legislative and judicial branches and for the Minnesota State
Colleges and Universities must be prepared using principles of zero-based budgeting
for the biennium beginning July 1, 2013, and for bienniums beginning every four years
after that. The budget for the University of Minnesota must be prepared using principles
of zero-based budgeting for the biennium beginning July 1, 2015, and for bienniums
beginning every four years after that.
new text end

new text begin Subd. 2. new text end

new text begin Governor's determination. new text end

new text begin The governor must designate the expenditure
programs for a biennium that will be prepared using zero-based budgeting principles. In
making the designation the governor, in consultation with the chairs and lead minority
members of the senate Finance Committee and the house of representatives Ways and
Means Committee, must attempt to balance the number of expenditure budgets that will
be prepared using zero-based budgeting principles and the number that will not for each
legislative finance committee. All of the programs within an agency must be assigned
to use zero-based budgeting principles in the same year.
new text end

new text begin Subd. 3. new text end

new text begin Exceptions. new text end

new text begin Expenditures for debt service under section 16A.641,
subdivision 10, are exempt from the zero-based budgeting principles under this section.
new text end

new text begin Subd. 4. new text end

new text begin Zero-based budgeting principles. new text end

new text begin (a) For each program and activity
subject to zero-based budgeting principles for a biennium, the detailed budget presented
to the legislature must include:
new text end

new text begin (1) a description of each budget activity for which the agency or entity receives
an appropriation in the current biennium or for which the agency or entity requests an
appropriation in the next biennium;
new text end

new text begin (2) for each budget activity, three alternative funding levels or alternative ways of
performing the budget activity, a summary of the priorities that would be accomplished
within each level, and the additional increments of value that would be added by the
higher funding levels; and
new text end

new text begin (3) for each budget activity, performance data as specified in section 16A.10,
subdivision 1b, the predicted effect of the three alternative funding levels on future
performance, and also one or more measures of cost efficiency and effectiveness of
program delivery, which must include comparisons to other states or entities with similar
programs.
new text end

new text begin (b) The commissioner's budget preparation guidelines and instructions must contain
requirements, deadlines, and technical assistance to facilitate implementation of this
section. After consultation with the legislative commission on planning and fiscal policy,
the commissioner's instructions may establish parameters for the three alternative funding
levels required in paragraph (a), clause (3).
new text end

new text begin Subd. 5. new text end

new text begin Prioritization. new text end

new text begin In presenting budget recommendations to the legislature for
those programs using zero-based budgeting principles, the governor's recommendations
must prioritize the budget activities within an agency or program area. To the extent
activities in more than one agency or program area are meeting the same goals, the
recommendations must prioritize budget activities across agencies or programs with
the same goals, and this prioritization must include agencies or programs not subject to
zero-based budgeting principles that biennium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for budgets proposed for the
biennium beginning July 1, 2013.
new text end

Sec. 29.

Minnesota Statutes 2010, section 16A.11, subdivision 3, is amended to read:

Subd. 3.

Part two: detailed budget.

(a) Part two of the budget, the detailed budget
estimates both of expenditures and revenues, must contain any statements on the financial
plan which the governor believes desirable or which may be required by the legislature.
The detailed estimates shall include the governor's budget arranged in tabular form.

(b) new text begin For programs designated for the zero-based budgeting principles under section
16A.106, the budget must be prepared according to the requirements of that section.
new text end

new text begin (c) For programs not designated for zero-based budgeting principles under section
16A.106, new text end tables listing expenditures for the next biennium must show the appropriation
base for each year new text begin as defined in section 16A.103, subdivision 1c new text end . deleted text begin The appropriation base
is the amount appropriated for the second year of the current biennium. deleted text end The tables must
separately show any adjustments to the base required by current law or policies of the
commissioner of management and budget. For forecasted programs, the tables must also
show the amount of the forecast adjustments, based on the most recent forecast prepared
by the commissioner of management and budget under section 16A.103. For all programs,
the tables must show the amount of appropriation changes recommended by the governor,
after adjustments to the base and forecast adjustments, and the total recommendation of
the governor for that year.

deleted text begin (c) deleted text end new text begin (d) new text end The detailed estimates must include a separate line listing the total cost of
professional and technical service contracts for the prior biennium and the projected costs
of those contracts for the current and upcoming biennium. They must also include a
summary of the personnel employed by the agency, reflected as full-time equivalent
positions.

deleted text begin (d) deleted text end new text begin (e) new text end The detailed estimates for internal service funds must include the number of
full-time equivalents by program; detail on any loans from the general fund, including
dollar amounts by program; proposed investments in technology or equipment of $100,000
or more; an explanation of any operating losses or increases in retained earnings; and a
history of the rates that have been charged, with an explanation of any rate changes and
the impact of the rate changes on affected agencies.

Sec. 30.

Minnesota Statutes 2010, section 16B.03, is amended to read:

16B.03 APPOINTMENTS.

The commissioner is authorized to appoint staff, including deleted text begin two deleted text end new text begin one new text end deputy
deleted text begin commissioners deleted text end new text begin commissioner new text end , in accordance with chapter 43A.

Sec. 31.

new text begin [16D.20] FEDERAL OFFSET PROGRAM.
new text end

new text begin (a) The commissioner may enter into an agreement with the United States Secretary
of the Treasury to participate in an offset program authorized under United States Code,
title 31, section 3716, for the collection of debts owed to state agencies. The agreement
may provide for the United States to submit debts owed to federal agencies for offset
against state payments, similar to the procedures for offsetting debts owed to state
agencies from federal payments.
new text end

new text begin (b) The commissioner shall reduce any state payment by the amount of any federal
debt submitted in accordance with the agreement authorized by this section, and pay such
amount to the appropriate federal official in accordance with the procedures specified
in such agreement.
new text end

new text begin (c) The commissioner may, by rule, establish a reasonable administrative fee to be
charged to the debtor for the contingency fee-based procession of state payment offsets for
the recovery of federal nontax debts or the contingency fee-based processing of federal
payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
and may be withheld from any refund, reimbursement, or other money held for the debtor.
new text end

Sec. 32.

Minnesota Statutes 2010, section 43A.08, subdivision 1, is amended to read:

Subdivision 1.

Unclassified positions.

Unclassified positions are held by employees
who are:

(1) chosen by election or appointed to fill an elective office;

(2) heads of agencies required by law to be appointed by the governor or other
elective officers, and the executive or administrative heads of departments, bureaus,
divisions, and institutions specifically established by law in the unclassified service;

(3) deputy deleted text begin and assistant deleted text end agency heads and one confidential secretary in the agencies
listed in deleted text begin subdivision 1a and in the Office of Strategic and Long-Range Planning deleted text end new text begin section
15.06, subdivision 1 new text end ;

(4) the confidential secretary to each of the elective officers of this state and, for the
secretary of state and state auditor, an additional deputy, clerk, or employee;

(5) intermittent help employed by the commissioner of public safety to assist in
the issuance of vehicle licenses;

(6) employees in the offices of the governor and of the lieutenant governor and one
confidential employee for the governor in the Office of the Adjutant General;

(7) employees of the Washington, D.C., office of the state of Minnesota;

(8) employees of the legislature and of legislative committees or commissions;
provided that employees of the Legislative Audit Commission, except for the legislative
auditor, the deputy legislative auditors, and their confidential secretaries, shall be
employees in the classified service;

(9) presidents, vice-presidents, deans, other managers and professionals in
academic and academic support programs, administrative or service faculty, teachers,
research assistants, and student employees eligible under terms of the federal Economic
Opportunity Act work study program in the Perpich Center for Arts Education and the
Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance
employees, or any professional or managerial employee performing duties in connection
with the business administration of these institutions;

(10) officers and enlisted persons in the National Guard;

(11) attorneys, legal assistants, and three confidential employees appointed by the
attorney general or employed with the attorney general's authorization;

(12) judges and all employees of the judicial branch, referees, receivers, jurors, and
notaries public, except referees and adjusters employed by the Department of Labor
and Industry;

(13) members of the State Patrol; provided that selection and appointment of State
Patrol troopers must be made in accordance with applicable laws governing the classified
service;

(14) examination monitors and intermittent training instructors employed by the
Departments of Management and Budget and Commerce and by professional examining
boards and intermittent staff employed by the technical colleges for the administration of
practical skills tests and for the staging of instructional demonstrations;

(15) student workers;

(16) executive directors or executive secretaries appointed by and reporting to any
policy-making board or commission established by statute;

(17) employees unclassified pursuant to other statutory authority;

(18) intermittent help employed by the commissioner of agriculture to perform
duties relating to pesticides, fertilizer, and seed regulation;

(19) the administrators and the deputy administrators at the State Academies for the
Deaf and the Blind; and

(20) chief executive officers in the Department of Human Services.

Sec. 33.

new text begin [43A.175] SALARY FREEZE.
new text end

new text begin (a) Effective July 1, 2011, and until June 30, 2013, a state employee may not receive
a salary or wage increase. This section prohibits any increases, including but not limited
to: across-the-board increases; cost-of-living adjustments; increases based on longevity;
step increases; increases in the form of lump-sum payments; increases in employer
contributions to deferred compensation plans; or any other pay grade adjustments of
any kind. For purposes of this section, "salary or wage" does not include employer
contributions toward the cost of medical or dental insurance premiums, provided that
employee contributions to the costs of medical or dental insurance premiums are not
decreased. This section does not prohibit an increase in the rate of salary and wages for an
employee who is promoted or transferred to a position with greater responsibilities and
with a higher salary or wage rate.
new text end

new text begin (b) A state appointing authority may not enter into a collective bargaining agreement
or implement a compensation plan that increases salary or wages in a manner prohibited
by this section. Neither a state appointing authority nor an exclusive representative of state
employees may request interest arbitration in relation to an increase in salary or wages that
is prohibited by this section, and an arbitrator may not issue an award that would increase
salary or wages in a manner prohibited by this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (b) is effective the day following final enactment.
Paragraph (a) is effective June 30, 2011.
new text end

Sec. 34.

Minnesota Statutes 2010, section 43A.23, subdivision 1, is amended to read:

Subdivision 1.

General.

(a) The commissioner is authorized to request proposals
or to negotiate and to enter into contracts with parties which in the judgment of the
commissioner are best qualified to provide service to the benefit plans. Contracts entered
into are not subject to the requirements of sections 16C.16 to 16C.19. The commissioner
may negotiate premium rates and coverage. The commissioner shall consider the cost of
the plans, conversion options relating to the contracts, service capabilities, character,
financial position, and reputation of the carriers, and any other factors which the
commissioner deems appropriate. Each benefit contract must be for a uniform term of at
least one year, but may be made automatically renewable from term to term in the absence
of notice of termination by either party. A carrier licensed under chapter 62A is exempt
from the taxes imposed by chapter 297I on premiums paid to it by the state.

(b) All self-insured hospital and medical service products must comply with coverage
mandates, data reporting, and consumer protection requirements applicable to the licensed
carrier administering the product, had the product been insured, including chapters 62J,
62M, and 62Q. Any self-insured products that limit coverage to a network of providers
or provide different levels of coverage between network and nonnetwork providers shall
comply with section 62D.123 and geographic access standards for health maintenance
organizations adopted by the commissioner of health in rule under chapter 62D.

(c) Notwithstanding paragraph (b), a self-insured hospital and medical product
offered under sections 43A.22 to 43A.30 is not required to extend dependent coverage to
an eligible employee's unmarried child under the age of 25 to the full extent required under
chapters 62A and 62L. Dependent coverage must, at a minimum, extend to an eligible
employee's unmarried child who is under the age of 19 or an unmarried child under the
age of 25 who is a full-time student. A person who is at least 19 years of age but who is
under the age of 25 and who is not a full-time student must be permitted to be enrolled as
a dependent of an eligible employee until age 25 if the person:

(1) was a full-time student immediately prior to being ordered into active military
service, as defined in section 190.05, subdivision 5b or 5c;

(2) has been separated or discharged from active military service; and

(3) would be eligible to enroll as a dependent of an eligible employee, except that
the person is not a full-time student.

The definition of "full-time student" for purposes of this paragraph includes any student
who by reason of illness, injury, or physical or mental disability as documented by
a physician is unable to carry what the educational institution considers a full-time
course load so long as the student's course load is at least 60 percent of what otherwise
is considered by the institution to be a full-time course load. Any notice regarding
termination of coverage due to attainment of the limiting age must include information
about this definition of "full-time student."

(d) Beginning January 1, deleted text begin 2010 deleted text end new text begin 2012 new text end , the health insurance benefit plans offered deleted text begin in the
commissioner's plan under section 43A.18, subdivision 2, and the managerial plan under
section 43A.18, subdivision 3, deleted text end new text begin to state employees, including legislators and legislative
staff, new text end must deleted text begin include an option for a deleted text end new text begin be a health savings account-eligible high-deductible new text end
health plan that is compatible with the definition of a high-deductible health plan in section
223 of the United States Internal Revenue Code. new text begin The following provisions apply:
new text end

new text begin (1) the employer shall deposit $1,500 to an individual health savings account
and $2,500 to a family health savings account and the deposit is dependent upon the
availability of a biennial appropriation for this purpose;
new text end

new text begin (2) the high-deductible health plan shall have a deductible of $2,500 for individual
and $5,000 for family coverage, with 20 percent enrollee cost-sharing thereafter until
maximum out-of-pocket amounts of $3,500 for an individual or $6,500 for a family are
reached; and
new text end

new text begin (3) $140 of the monthly premium amount for individual coverage shall be paid by
the employer, and $411 of the monthly premium amount for family coverage shall be
paid by the employer. The deposits and payments under this paragraph are subject to the
availability of an appropriation for this purpose.
new text end

Sec. 35.

new text begin [43A.347] REDUCTION IN STATE WORK FORCE; EARLY
RETIREMENT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Required reduction. new text end

new text begin (a) The number of full-time equivalent
employees employed in the executive branch, and the costs directly associated with
employing those persons, must be reduced by at least 15 percent by June 30, 2015, and
thereafter, compared to the number of full-time equivalent positions and the costs directly
associated with those positions on July 1, 2011.
new text end

new text begin (b) An appointing authority may use any or all of the following to achieve this
requirement: attrition, a hard hiring freeze, early retirement incentives authorized in this
section, restructuring of benefit or pension programs as authorized by other law, furloughs,
and layoffs. The early retirement program in this section is enacted as a tool to assist in
complying with the required 15 percent reduction.
new text end

new text begin (c) For purposes of this section:
new text end

new text begin (1) "costs directly associated" with employing people means the cost of salaries and
benefits, including the costs of employer contributions to public pension plans; and
new text end

new text begin (2) "executive branch" does not include the Minnesota State Colleges and
Universities, peace officers licensed under chapter 626, the Department of Military
Affairs, the Department of Veterans Affairs, employees of the Department of Corrections
who spend at least 75 percent of their time in direct contact with inmates or patients,
and the State Patrol.
new text end

new text begin Subd. 2. new text end

new text begin Analysis. new text end

new text begin Before authorizing an early retirement incentive under
subdivision 3 or 4, the commissioner must perform analysis, including actuarial analysis,
as necessary to determine the maximum number of employees to whom incentives will be
offered, and the percentage of resulting savings estimated to be needed to pay pension
funds to cover costs to the funds of the incentives in this section. The commissioner must
use this analysis in determining how to best implement this section. The commissioner
may contract with the director of the Minnesota State Retirement System for assistance in
preparing the analysis required by this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Pension early retirement incentive. new text end

new text begin (a) The commissioner of management
and budget may authorize an executive branch appointing authority to offer an early
retirement incentive under this subdivision to an employee who upon retirement would be
immediately eligible to receive an annuity from the public pension plan under which the
employee is covered immediately before separation from state service. The commissioner
may establish time periods during which the incentive may be offered and during which
the incentive must be accepted, may establish limits on the number of employees to whom
an appointing authority, or all appointing authorities collectively, may offer the incentive,
and may establish other conditions for the incentive.
new text end

new text begin (b) For an employee offered an incentive under this subdivision, for each full
year of service credit that the employee has in a plan administered by the Minnesota
State Retirement System, the Public Employees Retirement Association, or the Teachers
Retirement Association, the employee must be granted an additional month of service
credit in the plan under which the employee is covered immediately before separation
from state service under this subdivision.
new text end

new text begin (c) Upon request of an appointing authority considering offering an incentive under
this subdivision, the executive director of the public pension plan in which an employee
would be granted additional service credit under this subdivision must prepare an estimate
of the present value of the additional service credit that would be granted to an employee
under this subdivision. For each employee accepting an incentive under this subdivision,
the appointing authority offering the incentive must pay the applicable public pension
plan, from the first dollars of savings achieved through offering the incentive, the present
value of the additional service credit granted to the employee, taking into account the date
payment will be received from the appointing authority. The appointing authority must
make this payment to the pension plan within one year of the date the employee accepting
the incentive leaves state service.
new text end

new text begin Subd. 4. new text end

new text begin Insurance early retirement incentive. new text end

new text begin The commissioner of management
and budget may authorize an executive appointing authority to offer the incentive
originally offered under Laws 2010, chapter 337, to employees who retire from state
service during periods that the commissioner specifies before June 30, 2015. The terms and
conditions specified in Laws 2010, chapter 337, apply to an incentive offered under this
subdivision, except for the dates specified in that law for accepting the incentive and for
retiring, and except that the prohibition on reemployment or contracting is for the period
specified in this section, instead of the shorter period specified in Laws 2010, chapter 337.
new text end

new text begin Subd. 5. new text end

new text begin Best practices. new text end

new text begin In implementing this section, the commissioner of
management and budget and affected agencies shall utilize best practices as identified by
other states that have implemented early retirement programs.
new text end

new text begin Subd. 6. new text end

new text begin Hiring freeze. new text end

new text begin To promote streamlined government and reduced costs,
no state appointing authority may fill by outside hire a position vacated through state
employee participation in an early retirement incentive under this section.
new text end

new text begin Subd. 7. new text end

new text begin Reemployment prohibition. new text end

new text begin An employee who receives an early
retirement incentive under this section may not be reemployed with the state or enter into
a contract with the state as a consultant for five years after termination.
new text end

new text begin Subd. 8. new text end

new text begin Savings. new text end

new text begin Savings resulting from implementation of this section, after
any payments made under subdivisions 3 and 4, must cancel back to the fund in which
the savings occurred.
new text end

new text begin Subd. 9. new text end

new text begin Not applicable to elected officials. new text end

new text begin A state elected official is not a state
employee for purposes of this section.
new text end

new text begin Subd. 10. new text end

new text begin Application of Public Employment Labor Relations Act. new text end

new text begin Unilateral
implementation of this section, including, but not limited to, the provision of an early
retirement incentive by the appointing authority, is not an unfair labor practice under
chapter 179A.
new text end

Sec. 36.

Minnesota Statutes 2010, section 45.013, is amended to read:

45.013 POWER TO APPOINT STAFF.

The commissioner of commerce may appoint deleted text begin four deleted text end new text begin one new text end deputy deleted text begin commissioners, four
assistant commissioners, and an assistant to the commissioner. Those positions, as well as
that of deleted text end new text begin and new text end a confidential secretary deleted text begin , are deleted text end new text begin in the new text end unclassified new text begin service new text end . The commissioner may
appoint other employees necessary to carry out the duties and responsibilities entrusted to
the commissioner.

Sec. 37.

Minnesota Statutes 2010, section 84.01, subdivision 3, is amended to read:

Subd. 3.

Employees; delegation.

deleted text begin Subject to the provisions of Laws 1969, chapter
1129, and to other applicable laws deleted text end The commissioner shall organize the department and
employ deleted text begin up to three assistant commissioners, each of whom shall serve at the pleasure of
the commissioner in the unclassified service, one of whom shall have responsibility for
coordinating and directing the planning of every division within the agency, and such other deleted text end
officers, employees, and agents as the commissioner may deem necessary to discharge the
functions of the department, define the duties of such officers, employees, and agents and
to delegate to them any of the commissioner's powers, duties, and responsibilities subject
to the control of, and under the conditions prescribed by, the commissioner. Appointments
to exercise delegated power shall be by written order filed with the secretary of state.

Sec. 38.

Minnesota Statutes 2010, section 116.03, subdivision 1, is amended to read:

Subdivision 1.

Office.

(a) The office of commissioner of the Pollution Control
Agency is created and is under the supervision and control of the commissioner, who is
appointed by the governor under the provisions of section 15.06.

(b) The commissioner may appoint a deputy commissioner deleted text begin and assistant
commissioners deleted text end who shall be in the unclassified service.

(c) The commissioner shall make all decisions on behalf of the agency that are not
required to be made by the agency under section 116.02.

Sec. 39.

Minnesota Statutes 2010, section 116J.01, subdivision 5, is amended to read:

Subd. 5.

Departmental organization.

(a) The commissioner shall organize the
department as provided in section 15.06.

(b) The commissioner may establish divisions and offices within the department.
deleted text begin The commissioner may employ four deputy commissioners in the unclassified service.
deleted text end

(c) The commissioner shall:

(1) employ assistants and other officers, employees, and agents that the commissioner
considers necessary to discharge the functions of the commissioner's office;

(2) define the duties of the officers, employees, and agents, and delegate to them any
of the commissioner's powers, duties, and responsibilities, subject to the commissioner's
control and under conditions prescribed by the commissioner.

(d) The commissioner shall ensure that there are at least three employment and
economic development officers in state offices in nonmetropolitan areas of the state who
will work with local units of government on developing local employment and economic
development.

Sec. 40.

Minnesota Statutes 2010, section 116J.035, subdivision 4, is amended to read:

Subd. 4.

Delegation of powers.

The commissioner may delegate, in written orders
filed with the secretary of state, any powers or duties subject to the commissioner's
control to officers and employees in the department. Regardless of any other law, the
commissioner may delegate the execution of specific contracts or specific types of
contracts to the commissioner's deleted text begin deputies, an assistant commissioner, deleted text end new text begin deputy new text end or a program
director if the delegation has been approved by the commissioner of administration and
filed with the secretary of state.

Sec. 41.

Minnesota Statutes 2010, section 174.02, subdivision 2, is amended to read:

Subd. 2.

Unclassified positions.

The commissioner may deleted text begin establish four positions
in the unclassified service at the deleted text end new text begin appoint a new text end deputy deleted text begin and assistant deleted text end commissioner deleted text begin , assistant
to commissioner or deleted text end new text begin and a new text end personal secretary deleted text begin levels. No more than two of these positions
shall be at the deputy commissioner level deleted text end new text begin in the unclassified service new text end .

Sec. 42.

Minnesota Statutes 2010, section 241.01, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Deputies deleted text end new text begin Deputy new text end .

The commissioner of corrections may appoint and
employ deleted text begin no more than two deleted text end new text begin a new text end deputy deleted text begin commissioners deleted text end new text begin commissioner new text end . The commissioner may
also appoint a personal secretary, who shall serve at the commissioner's pleasure in the
unclassified civil service.

Sec. 43.

Minnesota Statutes 2010, section 270C.41, is amended to read:

270C.41 AGREEMENT WITH deleted text begin INTERNAL REVENUE SERVICE deleted text end new text begin FEDERAL
GOVERNMENT new text end .

new text begin Subdivision 1. new text end

new text begin Agreement with Internal Revenue Service. new text end

Pursuant to section
270B.12, the commissioner may enter into an agreement with the Internal Revenue
Service to identify taxpayers who have refunds due from the department and liabilities
owing to the Internal Revenue Service. In accordance with the procedures established in
the agreement, the Internal Revenue Service may levy against the refunds to be paid by
the department. For each refund levied upon, the commissioner shall first deduct from
the refund a fee of $20, and then remit the refund or the amount of the levy, whichever
is less, to the Internal Revenue Service. The proceeds of fees shall be deposited into the
Department of Revenue recapture revolving fund under section 270A.07, subdivision 1.

new text begin Subd. 2. new text end

new text begin Reciprocal offset agreements. new text end

new text begin The commissioner is authorized to enter
into agreements with the federal Department of the Treasury that provide for offsetting
state payments against federal nontax obligations. The commissioner may charge a fee
of $20 per transaction for the offsets and may collect this offset fee from the debtor by
deducting it from the state payment. The agreement may provide for offsetting federal
payments as authorized by federal law against state tax and nontax obligations, and
collecting the offset cost from the debtor. The agreement shall provide that the federal
Department of the Treasury may deduct a fee from each administrative offset and state
payment offset. Setoffs to collect state and other entity obligations under chapters 16D,
270A, 270C, and any other provision of Minnesota Statutes occur before a state payment
offset. For purposes of this paragraph, "administrative offset" is any offset of federal
payments to collect state debts, and "state payment offset" is any offset of state payments
to collect federal nontax debts.
new text end

Sec. 44. new text begin STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT
ELIGIBILITY VERIFICATION AUDIT SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Request for proposals. new text end

new text begin By July 1, 2011, the commissioner of
management and budget shall issue a request for proposals for a contract to provide
dependent eligibility verification audit services for state-paid hospital, medical, and dental
benefits provided to state employees and their dependents. The request for proposals
must require that the vendor will:
new text end

new text begin (1) conduct a document-model dependent eligibility verification audit of all plans
offered under Minnesota Statutes, sections 43A.22 to 43A.31;
new text end

new text begin (2) identify ineligible dependents covered by the plans and report those findings to
the commissioner and third-party administrators of the state's employee health plans, as
directed by the commissioner; and
new text end

new text begin (3) implement a process for ongoing eligibility verification following the conclusion
of the dependent eligibility verification audit required by this section.
new text end

new text begin Subd. 2. new text end

new text begin Additional vendor criteria. new text end

new text begin The request for proposals required by
subdivision 1 must require the vendor to provide the following minimum capabilities and
experience in performing the services described in subdivision 1:
new text end

new text begin (1) a rules-based platform employing auto-adjudication for making objective
eligibility determinations;
new text end

new text begin (2) assigned eligibility advocates to assist employees through the verification
process;
new text end

new text begin (3) a formal claims and appeals process; and
new text end

new text begin (4) experience in the performance of dependent eligibility verification audits for
other states.
new text end

new text begin Subd. 3. new text end

new text begin Contract required. new text end

new text begin By September 1, 2011, the commissioner must enter
into a contract for the services specified in subdivision 1. The contract must incorporate
a performance-based vendor financing option that compensates the vendor based on the
amount of savings generated by the work performed under the contract.
new text end

new text begin Subd. 4. new text end

new text begin Managerial policy. new text end

new text begin The commissioner's duties and responsibilities under
this section are matters of inherent managerial policy under Minnesota Statutes, section
179A.07, subdivision 1. The commissioner is under no obligation to meet and negotiate
concerning duties and responsibilities assigned to the commissioner under this section.
new text end

Sec. 45. new text begin STATE BUILDING EFFICIENCY.
new text end

new text begin Subdivision 1. new text end

new text begin Request for proposals. new text end

new text begin By July 1, 2011, the commissioner
of administration shall issue a request for proposals for a contract to provide
recommendations for efficiencies in state building management to the commissioner. The
request for proposals shall require the vendor to provide a system that will overlay existing
building controls and instrumentation that influence energy consumption, including space,
equipment and system performance, facility operations, and facility maintenance. The
request for proposals shall require the vendor to provide a system that provides concurrent
building monitoring, energy consumption optimization, space utilization, and equipment
performance information.
new text end

new text begin Subd. 2. new text end

new text begin Open platform system with data analytics. new text end

new text begin The request for proposals
must require the vendor to provide: (1) an open platform system with the capability to
integrate and coordinate a variety of control systems, including their data, and the ability
to manage all state buildings and their control systems; and (2) a system that uses data
analytics to integrate corrective action notification and work order management.
new text end

new text begin Subd. 3. new text end

new text begin Proof of concept phase. new text end

new text begin The request for proposals shall require the
selected vendor, at no cost to the state, to begin work on the contract by implementing
its proposed system on one to three instrumented state buildings to demonstrate the
savings provided by the system. The system provided by the vendor must be capable of
application to all state-owned buildings.
new text end

new text begin Subd. 4. new text end

new text begin Full implementation and payment. new text end

new text begin The request for proposal must require
the state to implement the system provided by the vendor in all buildings owned by the
state if the work done under the requirements of subdivision 3 provides material savings to
the state. After the full implementation of the system provided by the vendor, the vendor
shall be paid by the state from the savings attributable to the work done by the vendor,
according to the terms and performance measures negotiated in the contract.
new text end

new text begin Subd. 5. new text end

new text begin Selection of vendor. new text end

new text begin The commissioner of administration shall select a
vendor from the responses to the request for proposal by September 1, 2011.
new text end

new text begin Subd. 6. new text end

new text begin Progress report. new text end

new text begin The commissioner shall provide a report describing the
progress made under this section to the governor and the chairs and ranking minority
members of the legislative committees with jurisdiction over the commissioner of
administration by January 15, 2012. The report shall provide a dynamic scoring analysis
of the work described in the report.
new text end

Sec. 46. new text begin FLEET MANAGEMENT IMPROVEMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Request for proposals. new text end

new text begin By July 1, 2011, the commissioner of
administration shall issue a request for proposals to improve the procurement, allocation,
control, energy efficiency, maintenance, and in-service life of state vehicles. The request
for proposal shall require the vendor to provide a system for:
new text end

new text begin (1) a life-cycle solution for vehicle management, covering all stages from
procurement through disposal of state vehicles; and
new text end

new text begin (2) the integration of data analytics to provide vehicle tracking, usage, and proactive
maintenance management.
new text end

new text begin Subd. 2. new text end

new text begin Proof of concept phase. new text end

new text begin The request for proposals must specify that the
vendor, at no cost to the state, must implement its system in one vehicle maintenance
facility on a sample group of vehicles to demonstrate the cost-savings potential of the
recommendations.
new text end

new text begin Subd. 3. new text end

new text begin Full implementation and payment. new text end

new text begin The request for proposal must require
the state to implement the recommendations provided by the vendor if the work done
under the requirements of subdivision 2 provides material savings to the state. After the
full implementation of the system provided by the vendor, the vendor shall be paid by
the state from the savings attributable to the work done by the vendor, according to the
terms and performance measures negotiated in the contract.
new text end

new text begin Subd. 4. new text end

new text begin Selection of vendor. new text end

new text begin The commissioner of administration shall select a
vendor from the responses to the request for proposal by September 1, 2011.
new text end

new text begin Subd. 5. new text end

new text begin Progress report. new text end

new text begin The commissioner shall provide a report describing the
progress made under this section to the governor and the chairs and ranking minority
members of the legislative committees with jurisdiction over the commissioner of
administration by January 15, 2012. The report shall provide a dynamic scoring analysis
of the work described in the report.
new text end

Sec. 47. new text begin TAX FRAUD PREVENTION AND DETECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Request for proposals. new text end

new text begin By July 1, 2011, the commissioner of
revenue shall issue a request for proposals to prevent and detect tax fraud and increase
delinquent tax revenue collection. The request for proposals shall require the vendor to
provide data analytics capabilities, including, but not limited to, predictive modeling
techniques and other forms of advanced analytics that will integrate into the current tax
processing system to detect compliance issues before tax return processing is completed,
and optimization algorithms that will assist the commissioner in maximizing revenues
collected with current levels of compliance staff.
new text end

new text begin Subd. 2. new text end

new text begin Proof of concept phase. new text end

new text begin The selected vendor, at no cost to the state, shall
implement its recommendations on a subset of data provided by the commissioner to
demonstrate the cost-savings potential of the recommendations.
new text end

new text begin Subd. 3. new text end

new text begin Data. new text end

new text begin Data provided to the vendor by the commissioner for the proof of
concept phase must not include not public data, as defined in section 13.02, subdivision 8a.
new text end

new text begin Subd. 4. new text end

new text begin Full implementation phase. new text end

new text begin The request for proposal must require the
state to implement the recommendations provided by the vendor if the work done under
the requirements of subdivision 2 provides material savings to the state. After the full
implementation of the system provided by the vendor, the vendor shall be paid by the state
from the savings attributable to the work done by the vendor, according to the terms and
performance measures negotiated in the contract.
new text end

new text begin Subd. 5. new text end

new text begin Selection of vendor. new text end

new text begin The commissioner of administration shall select a
vendor from the responses to the request for proposal by September 1, 2011.
new text end

new text begin Subd. 6. new text end

new text begin Progress report. new text end

new text begin The commissioner shall provide a report describing the
progress made under this section to the governor and the chairs and ranking minority
members of the legislative committees with jurisdiction over the commissioner of revenue
and data practices by January 15, 2012. The report shall provide a dynamic scoring
analysis of the work described in the report and address data access and privacy issues
involved in implementation of the system.
new text end

Sec. 48. new text begin STRATEGIC SOURCING REQUEST FOR PROPOSALS.
new text end

new text begin Subdivision 1. new text end

new text begin Request for proposals. new text end

new text begin By July 1, 2011, the commissioner
of administration shall issue a request for proposals for a contract to provide
recommendations for efficiencies in strategic sourcing to the commissioner. For the
purposes of this section, "strategic sourcing" has the meaning given in Minnesota Statutes,
section 16C.02, subdivision 20. The request for proposals shall require the vendor to
provide recommendations for improvements to methods used by the commissioner
to analyze and reduce spending on goods and services, including, but not limited to,
spend analysis, product standardization, contract consolidation, negotiations, multiple
jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and
other techniques.
new text end

new text begin Subd. 2. new text end

new text begin Proof of concept phase. new text end

new text begin The request for proposal shall require the selected
vendor, at no cost to the state, to begin work on the contract by assisting the commissioner
in implementing its proposed solution on selected state procurement processes to
demonstrate the savings provided by the recommendations. The system provided by the
vendor must be capable of application to the state procurement system.
new text end

new text begin Subd. 3. new text end

new text begin Full implementation and payment. new text end

new text begin The request for proposal must require
the state to implement the recommendations provided by the vendor in the entire state
procurement system if the work done under the requirements of subdivision 2 provides
material savings to the state. After the full implementation of the system provided by the
vendor, the vendor shall be paid by the state from the savings attributable to the work done
by the vendor, according to the terms and performance measures negotiated in the contract.
new text end

new text begin Subd. 4. new text end

new text begin Selection of vendor. new text end

new text begin The commissioner of administration shall select a
vendor from the responses to the request for proposal by September 1, 2011.
new text end

new text begin Subd. 5. new text end

new text begin Progress report. new text end

new text begin The commissioner shall provide a report describing the
progress made under this section to the governor and the chairs and ranking minority
members of the legislative committees with jurisdiction over the commissioner of
administration by January 15, 2012.
new text end

Sec. 49. new text begin ESTIMATED REVENUE.
new text end

new text begin The initiatives in sections 31, 47, and 48 are expected to result in new general fund
revenues of $169,900,000 for the biennium ending June 30, 2013.
new text end