SF 2620

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/19/2010 01:50pm

A bill for an act
relating to state and local government; establishing the Commission on Service
Innovation; authorizing contiguous counties to establish a home rule charter
commission; reestablishing the Board of Innovation; imposing powers and duties
on the board; appropriating money; amending Minnesota Statutes 2008, section
3.971, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapters 3; 465; proposing coding for new law as Minnesota Statutes,
chapter 372A; repealing Minnesota Statutes 2008, section 6.80.

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

Section 1.

new text begin [3.9280] COMMISSION ON SERVICE INNOVATION.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Commission on Service Innovation is
established to provide the legislature and the Board of Innovation with a strategic plan to
reengineer the delivery of state and local government services, including the realignment
of service delivery by region and proximity, the use of new technologies, shared facilities,
centralized information technologies, and other means of improving efficiency.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The commission consists of 18 members, appointed
as follows:
new text end

new text begin (1) one representative of the Minnesota Chamber of Commerce;
new text end

new text begin (2) one representative of the Minnesota Business Partnership;
new text end

new text begin (3) one representative of the McKnight Foundation;
new text end

new text begin (4) one representative of the Wilder Foundation;
new text end

new text begin (5) one representative of the Bush Foundation;
new text end

new text begin (6) one representative of the Minnesota Council of Nonprofits;
new text end

new text begin (7) one representative of the Minnesota Association of Townships;
new text end

new text begin (8) one representative of the Association of Minnesota Counties;
new text end

new text begin (9) one representative of the League of Minnesota Cities;
new text end

new text begin (10) one representative of the University of Minnesota;
new text end

new text begin (11) one representative of the Minnesota State Colleges and Universities;
new text end

new text begin (12) one representative of the Minnesota Association of School Administrators;
new text end

new text begin (13) two representatives of the American Federation of State, County, and Municipal
Employees, including one from council 5 and one from council 65;
new text end

new text begin (14) one representative of the Minnesota Association of Professional Employees;
new text end

new text begin (15) one representative of the Service Employees International Union;
new text end

new text begin (16) one representative of the Minnesota High Tech Association; and
new text end

new text begin (17) the state chief information officer.
new text end

new text begin (b) The appointments required by this section must be completed by June 30,
2010. Appointing authorities shall notify the state chief information officer when making
their appointments. The members of the commission shall serve at the pleasure of the
appointing authorities.
new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin (a) Within two weeks after completion of the appointments
under subdivision 2, the state chief information officer shall convene the first meeting of
the commission. The state chief information officer shall provide meeting space for the
commission. The commission shall select co-chairpersons from its appointed membership
at the first meeting. Members of the legislature may attend the meetings of the commission
and participate as nonvoting members of the commission.
new text end

new text begin (b) The commission shall provide notice of its meetings to the public and to
interested members of the legislature. Meetings of the commission are subject to chapter
13D. The commission shall post all reports required under this section on the Legislative
Coordinating Commission Web site.
new text end

new text begin (c) The commission may solicit and receive private contributions. Money received
under this paragraph is deposited in a special revenue account and appropriated to the
commission for the purposes of this section. The commission may provide per diem
payments to voting members as determined by the commission from the appropriation
in this paragraph. No public money may be used to provide payment of per diems or
expenses for members of the commission. The commission may hire staff to assist the
commission in its work.
new text end

new text begin (d) The commission shall solicit and coordinate public input. The commission
must use its best efforts to maximize public involvement in the work of the commission,
including the use of best practices in social media. The commission may retain an expert
in the use of social media to assist in public outreach and involvement.
new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin (a) Beginning August 1, 2010, the commission shall publish
electronic monthly reports on its progress, including a description of upcoming agenda
items.
new text end

new text begin (b) By January 15 of each year, beginning in 2011, the commission shall report to
the chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over state government policy and finance regarding its work under this section
and to the Board of Innovation established under section 465.7902, with a strategic plan
containing findings and recommendations to improve state and local government delivery
of public services. The strategic plan must address:
new text end

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

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

new text begin (3) how service innovation will conserve substantial financial resources;
new text end

new text begin (4) a transition plan and governance structure that will facilitate high-quality
innovation and change in the future;
new text end

new text begin (5) how to improve public sector employee productivity;
new text end

new text begin (6) the security of individual data and government programs;
new text end

new text begin (7) data transparency and accountability;
new text end

new text begin (8) centralized and shared services; and
new text end

new text begin (9) data interoperability across jurisdictions.
new text end

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

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

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2012.
new text end

Sec. 2.

Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Recommendations to the Board of Innovation. new text end

new text begin The legislative auditor
may make recommendations to the Board of Innovation established under section
465.7902 that will assist the board in accomplishing its duties.
new text end

Sec. 3.

new text begin [372A.01] HOME RULE CHARTER FOR CONTIGUOUS COUNTIES.
new text end

new text begin Any two or more contiguous counties in the state may propose a county home rule
charter commission as provided in this chapter.
new text end

new text begin The county board of each contiguous county shall adopt a resolution to establish a
home rule charter commission for the counties. The resolution must name the contiguous
counties proposing to establish the charter commission.
new text end

Sec. 4.

new text begin [372A.02] CHARTER COMMISSION; NOMINATIONS AND
APPOINTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Publication. new text end

new text begin Within 30 days after the date of the resolution in section
372A.01, the county board of each county shall publish the resolution and a notice inviting
interested persons to apply to the county board of commissioners for consideration by the
county board and the joint legislative delegation for nomination to the charter commission.
The resolution and notice must be published at least once a week for two successive weeks
in a qualified newspaper of general circulation within each county. If one newspaper is a
qualified newspaper of general circulation for more than one county, those counties may
publish jointly. The county boards shall furnish copies of the applications to the members
of the joint legislative delegation.
new text end

new text begin Subd. 2. new text end

new text begin Nomination. new text end

new text begin (a) Within 60 days after the date of the resolution in section
372A.01, the county board of each county shall nominate 15 persons as candidates for
appointment to a charter commission to propose a charter to provide for the form of
county government for the counties. Three persons who reside in the district must be
nominated for each of the county commissioner districts in each county. Immediately
following selection of the nominees, the county board of each county shall submit the
nominations, together with the county board resolution, to the chief judge of the district
court with jurisdiction in the county.
new text end

new text begin (b) Within 75 days after the date of the resolution in section 372A.01, the joint
legislative delegation of each county shall nominate six persons who reside in the county
as candidates for appointment to a charter commission to propose a charter to provide for
the form of county government for the counties. The six persons must be nominated
without regard to county commissioner districts. Immediately following selection of the
nominees, the delegation shall submit the nominations to the chief judge of the district
court with jurisdiction in the county. For purposes of this section, "joint legislative
delegation" means all elected members of the house of representatives and senate
whose legislative district includes a portion of a county proposing a home rule charter
commission under section 372A.01.
new text end

new text begin Subd. 3. new text end

new text begin Appointment. new text end

new text begin Within 30 days after the last submission of nominations, the
chief judge shall appoint to the charter commission seven members for each county, one
appointee for each county commissioner district in each county, selected from those who
were nominated by county commissioner district, and two appointees from each county
who were nominated to serve from the county without regard to county commissioner
districts. The commission members must be qualified voters in the county from which
they are appointed. A person is not disqualified from serving on the charter commission
because the person holds an elective or appointive office. The appointing authority shall
fill any vacancies. Appointments must be filed with the board of county commissioners
of the county in which the appointee resides. An appointee must file an acceptance with
the board within ten days after notification of the appointment or be considered to have
declined the appointment.
new text end

Sec. 5.

new text begin [372A.03] CHARTER COMMISSION; TERMS; ADMINISTRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Chair; rules. new text end

new text begin The charter commission shall meet within 30 days
after the initial appointment, elect a chair from among the members, and establish rules,
including quorum requirements, for its operation and procedures.
new text end

new text begin Subd. 2. new text end

new text begin Expenses and administration. new text end

new text begin The members of the charter commission
receive no compensation except reimbursement for expenses actually incurred in the
course of their duties. The board of county commissioners of each county may make
appropriations to the charter commission to be used to employ research and clerical
assistance, for supplies, and to meet expenses considered necessary by the charter
commission. The charter commission may request and receive assistance from any county
official. If requested, a personnel director shall assist the charter commission to test and
hire employees. If requested, a county attorney shall provide legal services.
new text end

new text begin Subd. 3. new text end

new text begin Terms. new text end

new text begin Members of the charter commission hold office until a final report
has been made under section 372A.04.
new text end

Sec. 6.

new text begin [372A.04] CHARTER COMMISSION; POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Report to county boards. new text end

new text begin The charter commission shall deliver
to the board of county commissioners of each contiguous county either (1) its report
determining that the present form of county government is adequate for the county and
that a charter is not necessary or desirable, or (2) a draft of a proposed charter. The report
must be signed by a majority of the members of the charter commission.
new text end

new text begin Subd. 2. new text end

new text begin Contents of report. new text end

new text begin The proposed charter may provide for any form of
government consistent with the Constitution of the state of Minnesota. It may provide for
the establishment and administration of all departments of a county government and for
the regulation of all local county functions. It may abolish or consolidate any department
or agency. It must provide for present functions to be assumed by new elective or
appointive officers as provided in the charter and may provide for other powers consistent
with other law. It must provide methods of procedure in respect to the operation of the
government created and the duties of all officers. It must provide for a home rule charter
commission consistent with article XII, section 5, of the Constitution of the state of
Minnesota and may provide for alternative methods for amending or abandoning the
charter consistent with the Constitution. A county may be authorized to acquire by
gift, devise, purchase, or condemnation or sell or lease any property needed for the full
discharge of its duties and powers.
new text end

new text begin Subd. 3. new text end

new text begin Public hearings. new text end

new text begin The charter commission must hold at least one public
hearing on the report in each of the county commissioner districts. Based upon the
public hearings, the charter commission may revise the report. The revised report must
be signed by a majority of the members of the charter commission, and delivered to
the county boards.
new text end

Sec. 7.

new text begin [372A.05] ELECTION; BALLOT.
new text end

new text begin Subdivision 1. new text end

new text begin Procedure; notice. new text end

new text begin Upon delivery of the final proposed charter to the
board of county commissioners in each county, each board shall submit it to the voters in
that county at a general election. The notice of election must contain the complete charter
and must be published once a week for two successive weeks in a qualified newspaper
of general circulation within each county.
new text end

new text begin Subd. 2. new text end

new text begin Ballot form. new text end

new text begin The ballot must at least contain the following question
with additional descriptive language, approved by the secretary of state, that the charter
commission may include:
new text end

new text begin "Shall the proposed county charter be adopted?
new text end

	new text begin Yes . new text end
	new text begin No . " new text end

new text begin The voter shall place an "X" after one of the last two words to express the voter's choice.
new text end

Sec. 8.

new text begin [372A.06] ADOPTION OF CHARTER.
new text end

new text begin If a majority of the votes cast in a county on the proposition are in favor of the
proposed charter, it must be considered adopted for that county. The charter takes effect
two years after the election.
new text end

Sec. 9.

new text begin [372A.07] HOME RULE CHARTER COUNTY POWERS AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin General rule. new text end

new text begin Unless specifically provided otherwise in general laws
or statutes, the term "county" when used in Minnesota Statutes or any general legislative
act includes home rule charter counties organized under this chapter. In addition to powers
and duties granted or imposed under its charter, a home rule charter county has all the
powers granted a county by law and all of the duties imposed upon it by law. If a charter
provision conflicts with a general law, the requirements of the law prevail.
new text end

new text begin Subd. 2. new text end

new text begin County bonds and indebtedness. new text end

new text begin All general and special laws authorizing
a county to incur indebtedness or issue bonds are subject to the charter if the charter
provisions are not in conflict with general laws relating to indebtedness.
new text end

new text begin Subd. 3. new text end

new text begin Personnel exception. new text end

new text begin A home rule charter does not apply to personnel
matters relating to employees of a county, which continue to be governed by law.
new text end

Sec. 10.

new text begin [465.7901] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Agency. new text end

new text begin "Agency" means a department, agency, board, or other
instrumentality of state government that has jurisdiction over an administrative rule or
law from which a waiver is sought under section 465.7903. If no specific agency has
jurisdiction over such a law, "agency" refers to the attorney general.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin "Board" means the Board of Innovation established by section
465.7902.
new text end

new text begin Subd. 3. new text end

new text begin Council or Metropolitan Council. new text end

new text begin "Council" or "Metropolitan Council"
means the Metropolitan Council established by section 473.123.
new text end

new text begin Subd. 4. new text end

new text begin Local government unit. new text end

new text begin "Local government unit" means a county, home
rule charter or statutory city, school district, town, or special taxing district, except for
purposes of sections 465.81 to 465.86.
new text end

new text begin Subd. 5. new text end

new text begin Metropolitan agency. new text end

new text begin "Metropolitan agency" has the meaning given in
section 473.121, subdivision 5a.
new text end

new text begin Subd. 6. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" has the meaning given in section
473.121, subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Scope. new text end

new text begin As used in sections 465.7901 to 465.7905 and 465.805 to 465.86,
the terms defined in this section have the meanings given them.
new text end

Sec. 11.

new text begin [465.7902] BOARD OF INNOVATION.
new text end

new text begin Subdivision 1. new text end

new text begin Membership. new text end

new text begin (a) The Board of Innovation consists of 16 members,
appointed as follows:
new text end

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

new text begin (2) two members of the house of representatives, appointed by the speaker of the
house;
new text end

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

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

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

new text begin (6) two members with a background in academic research concerning system
redesign and delivery, including one member appointed by the chancellor of the Minnesota
State Colleges and Universities and one member appointed by the president of the
University of Minnesota;
new text end

new text begin (7) two members with experience in the leadership of nonprofit organizations,
appointed by the Minnesota Council of Nonprofits, including one member from an
organization with statewide membership, and one member from a human services
organization;
new text end

new text begin (8) two members with experience in foundation leadership, including one member
from a foundation making statewide grants appointed by the Minnesota Council on
Foundations;
new text end

new text begin (9) one member with experience as a leader of a for-profit corporation, appointed by
the Minnesota Chamber of Commerce; and
new text end

new text begin (10) two members appointed by the American Federation of State, County, and
Municipal Employees, including one from council 5 and one from council 65.
new text end

new text begin All members must have experience or interest in the work of system redesign or public
sector innovation. The legislative members serve as nonvoting members. A commissioner
serving on the board may designate an employee from the commissioner's agency to
serve as the commissioner's designee. A person registered as a lobbyist under chapter
10A may not be a member of the board.
new text end

new text begin (b) A board member may not vote on a determination under sections 465.7903 to
465.7905 if the members of the appointing authority for the member has a direct interest
in the determination.
new text end

new text begin Subd. 2. new text end

new text begin Duties of board. new text end

new text begin The board shall:
new text end

new text begin (1) accept applications from local government units and nonprofit organizations for
waivers of administrative rules and temporary, limited exemptions from enforcement of
procedural requirements in state law as provided in section 465.7903, and determine
whether to approve, modify, or reject the application;
new text end

new text begin (2) accept applications for grants to local government units and related organizations
proposing to design models or plans for innovative service delivery and management
as provided in section 465.7905 and determine whether to approve, modify, or reject
the application;
new text end

new text begin (3) accept applications from eligible local government units for service-sharing
grants as provided in section 465.805, and determine whether to approve, modify, or
reject the application;
new text end

new text begin (4) make recommendations to the chairs and ranking minority members of
the appropriate legislative committees for the authorization of pilot projects for
the implementation of innovative service delivery activities that require statutory
authorization;
new text end

new text begin (5) make recommendations to the chairs and ranking minority members of the
appropriate legislative committees regarding the elimination of state mandates that inhibit
local government efficiency, innovation, and cooperation by prescribing specific processes
for achieving a desired outcome;
new text end

new text begin (6) investigate and review the role of unfunded state mandates in intergovernmental
relations and assess their impact on state and local government objectives and
responsibilities;
new text end

new text begin (7) make recommendations to the governor and the chairs and ranking minority
members of the appropriate legislative committees regarding:
new text end

new text begin (i) allowing flexibility for local units of government in complying with specific
unfunded state mandates for which terms of compliance are unnecessarily rigid or
complex;
new text end

new text begin (ii) reconciling any two or more unfunded state mandates that impose contradictory
or inconsistent requirements;
new text end

new text begin (iii) terminating unfunded state mandates that are duplicative, obsolete, or lacking
in practical utility;
new text end

new text begin (iv) suspending, on a temporary basis, unfunded state mandates that are not vital
to public health and safety and that compound the fiscal difficulties of local units of
government, including recommendations for initiating the suspensions;
new text end

new text begin (v) consolidating or simplifying unfunded state mandates or the planning or
reporting requirements of the mandates, in order to reduce duplication and facilitate
compliance by local units of government with those mandates; and
new text end

new text begin (vi) establishing common state definitions or standards to be used by local units of
government in complying with unfunded state mandates that use different definitions or
standards for the same terms or principles;
new text end

new text begin (8) identify relevant unfunded state mandates;
new text end

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

new text begin (10) make recommendations on topics to the Legislative Audit Commission for
program evaluations that are likely to result in recommendations that will improve the
cost-effective delivery of government services; and
new text end

new text begin (11) review recommendations received from the Commission on Service Innovation.
new text end

new text begin The duties imposed under clauses (6) to (10) must be performed to the extent possible
given existing resources. Each recommendation under clause (7) must, to the extent
practicable, identify the specific unfunded state mandates to which the recommendation
applies. The commissioners or directors of state agencies responsible for the promulgation
or enforcement of the unfunded mandates addressed in clauses (5) to (10) shall assign staff
to assist the board in carrying out the board's duties under this section.
new text end

new text begin Subd. 3. new text end

new text begin Additional coordinating functions. new text end

new text begin The board may also:
new text end

new text begin (1) serve as a clearinghouse for existing ideas and information from community
leaders;
new text end

new text begin (2) provide a Web site where interested parties may share information and practices;
new text end

new text begin (3) receive recommendations from the legislative auditor concerning waivers and
other initiatives within the board's jurisdiction;
new text end

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

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

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

new text begin Subd. 4. new text end

new text begin Staff. new text end

new text begin The board shall hire an executive director, who serves as the state's
chief innovation officer. The board may hire other staff or consultants as necessary to
perform its duties.
new text end

new text begin Subd. 5. new text end

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

new text begin The terms, compensation, and
removal of members is governed by section 15.0575, unless otherwise provided. The
terms of legislative members of the board correspond with the term of the office held by
the member at the time of appointment.
new text end

Sec. 12.

new text begin [465.7903] RULE AND LAW WAIVER REQUESTS.
new text end

new text begin Subdivision 1. new text end

new text begin Generally. new text end

new text begin (a) Except as provided in paragraph (b), a local
government unit or a nonprofit organization may request the Board of Innovation to
grant a waiver from one or more administrative rules or a temporary, limited exemption
from enforcement of state procedural laws governing delivery of services by the local
government unit or nonprofit organization. Two or more local government units may
submit a joint application for a waiver or exemption under this section if they propose to
cooperate in providing a service or program that is subject to the rule or law. Before a
local unit of government may submit an application to the board, the governing body of
the local government unit must approve, in concept, the proposed waiver or exemption
at a meeting required to be public under chapter 13D. A waiver or exemption granted
to a nonprofit organization under this section applies to services provided to all of the
organization's clients.
new text end

new text begin (b) A school district that is granted a variance from rules of the commissioner of
education under section 122A.163 need not apply to the board for a waiver of those rules
under this section. A school district may not seek a waiver of rules under this section if
the commissioner of education has authority to grant a variance to the rules under section
122A.163. This paragraph does not preclude a school district from being included in a
cooperative effort with another local government unit under this section.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) A local government unit or nonprofit organization
requesting a waiver of a rule or exemption from enforcement of a law under this section
shall present a written application to the board. The application must include:
new text end

new text begin (1) identification of the service or program at issue;
new text end

new text begin (2) identification of the administrative rule or the law imposing a procedural
requirement with respect to which the waiver or exemption is sought; and
new text end

new text begin (3) a description of the improved service outcome sought, including an explanation
of the effect of the waiver or exemption in accomplishing that outcome.
new text end

new text begin (b) A local government unit submitting an application must provide a copy to the
exclusive representative certified under section 179A.12 to represent employees who
provide the service or program affected by the requested waiver or exemption.
new text end

new text begin Subd. 3. new text end

new text begin Review process. new text end

new text begin (a) Upon receipt of an application, the board shall
commence review of the application, as provided in this subdivision. The board shall
dismiss an application if it finds that the application proposes a waiver of rules or
exemption from enforcement of laws that would result in due process violations, violations
of federal law or the state or federal constitution, or the loss of services to people who
are entitled to them.
new text end

new text begin (b) The board shall determine whether a law from which an exemption for
enforcement is sought is a procedural law, specifying how a local government unit or
nonprofit organization is to achieve an outcome, rather than a substantive law prescribing
the outcome or otherwise establishing policy. In making its determination, the board shall
consider whether the law specifies such requirements as:
new text end

new text begin (1) who must deliver a service;
new text end

new text begin (2) where the service must be delivered;
new text end

new text begin (3) to whom and in what form reports regarding the service must be made; and
new text end

new text begin (4) how long or how often the service must be made available to a given recipient.
new text end

new text begin (c) If a member of the board also is a commissioner, a commissioner's designee, or
the state auditor, or is employed by an agency with jurisdiction over a rule or law affected
by an application, the member must not participate in the decision on the particular waiver
or exemption.
new text end

new text begin (d) If the application is submitted by a local government unit or a nonprofit
organization in the metropolitan area or the unit or nonprofit organization requests a
waiver of a rule or temporary, limited exemptions from enforcement of a procedural law
over which the Metropolitan Council or a metropolitan agency has jurisdiction, the board
shall also transmit a copy of the application to the council for review and comment. The
council shall report its comments to the board within 60 days of the date the application
was transmitted to the council. The council may point out any resources or technical
assistance it may be able to provide a local government unit or nonprofit organization
submitting a request under this section.
new text end

new text begin (e) Within 15 days after receipt of the application, the board shall transmit a copy of
it to the commissioner of each agency having jurisdiction over a rule or law from which
a waiver or exemption is sought. The agency may mail a notice that it has received an
application for a waiver or exemption to all persons who have registered with the agency
under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or
exemption is requested. If no agency has jurisdiction over the rule or law, the board
shall transmit a copy of the application to the attorney general. The agency shall inform
the board of its agreement with or objection to and grounds for objection to the waiver
or exemption request within 60 days of the date when the application was transmitted to
it. An agency's failure to respond under this paragraph is considered agreement to the
waiver or exemption. The board shall decide whether to grant a waiver or exemption at
its next regularly scheduled meeting following its receipt of an agency's response or the
end of the 60-day response period. If consideration of an application is not concluded at
that meeting, the matter may be carried over to the next meeting of the board. Interested
persons may submit written comments to the board on the waiver or exemption request up
to the time of its vote on the application.
new text end

new text begin (f) If the exclusive representative of the affected employees of the requesting local
government unit objects to the waiver or exemption request, it may inform the board of the
objection to and the grounds for the objection to the waiver or exemption request within
60 days of the receipt of the application.
new text end

new text begin Subd. 4. new text end

new text begin Hearing. new text end

new text begin If the agency or the exclusive representative does not agree with
the waiver or exemption request, the board shall set a date for a hearing on the application.
The hearing must be conducted informally at a meeting of the board. Persons representing
the local government unit shall present their request for the waiver or exemption, and
a representative from the agency shall explain the agency's objection to the waiver or
exemption. Members of the board may request additional information from either party.
The board may also request, either before or at the hearing, information or comments
from representatives of business, labor, local governments, state agencies, consultants,
and members of the public. If necessary, the hearing may be continued at a subsequent
board meeting. A waiver or exemption requires a majority vote of the board members.
The board may modify the terms of the waiver or exemption request in arriving at the
agreement required under subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Conditions of agreements. new text end

new text begin (a) If the board grants a request for a waiver
or exemption, the board and the entity making the request shall enter into an agreement
providing for the delivery of the service or program that is the subject of the application.
The agreement must specify desired outcomes and the means of measurement by which
the board will determine whether the outcomes specified in the agreement have been met.
The agreement must specify the duration of the waiver or exemption. The duration of a
waiver from an administrative rule may be for no less than two years and no more than
four years, subject to renewal if both parties agree. An exemption from enforcement of a
law terminates ten days after adjournment of the regular legislative session held during the
calendar year following the year when the exemption is granted, unless the legislature has
acted to extend or make permanent the exemption.
new text end

new text begin (b) If the board grants a waiver or exemption, it must report the waiver or exemption
to the legislature, including the chairs of the governmental operations and appropriate
policy committees in the house of representatives and senate, and the governor within
30 days.
new text end

new text begin (c) The board may reconsider or renegotiate the agreement if the rule or law affected
by the waiver or exemption is amended or repealed during the term of the original
agreement. A waiver of a rule under this section has the effect of a variance granted
by an agency under section 14.055, subdivision 4. The recipient of an exemption from
enforcement of a procedural requirement in state law under this section is exempt from
that law for the duration of the exemption. The board may require periodic reports from
the recipient, or conduct investigations of the service or program.
new text end

new text begin Subd. 6. new text end

new text begin Enforcement. new text end

new text begin If the board finds that the recipient of a waiver or an
exemption has failed to comply with the terms of the agreement under subdivision 5, it
may rescind the agreement. After an agreement is rescinded, the recipient is subject to the
rules and laws covered by the agreement.
new text end

new text begin Subd. 7. new text end

new text begin Access to data. new text end

new text begin If the recipient of a waiver or an exemption through a
cooperative program under this section gains access to data that is classified as not public,
the access to and use of the data for the recipient is governed by the same restrictions on
access to and use of the data that apply to the unit that collected, created, received, or
maintained the data.
new text end

Sec. 13.

new text begin [465.7904] WAIVERS OF STATE RULES; POLICIES.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin A state agency may apply to the board for a waiver
from: (1) an administrative rule or policy adopted by the commissioner of management
and budget that deals with the state personnel system; (2) an administrative rule or policy
of the commissioner of administration that deals with the state procurement system; or
(3) a policy of the commissioner of management and budget that deals with the state
accounting system. Two or more state agencies may submit a joint application. A waiver
application must identify the rule or policy at issue, and must describe the improved
outcome sought through the waiver.
new text end

new text begin Subd. 2. new text end

new text begin Review process. new text end

new text begin (a) The board shall review all applications submitted
under this section. The board shall dismiss an application if it finds that the application
proposes a waiver that would result in due process violations, violations of federal law
or the state or federal constitution, or the loss of services to people who are entitled to
them. If a proposed waiver would violate the terms of a collective bargaining agreement
effective under chapter 179A, the waiver is not effective without the consent of the
exclusive representative that is a party to the agreement. The board may approve a waiver
only if the board determines that if the waiver is granted: (1) services can be provided in a
more efficient or effective manner; and (2) services related to human resources must be
provided in a manner consistent with section 43A.01. In the case of a waiver from a policy
of the commissioner of management and budget, the board may approve the waiver only if
it determines that services will be provided in a more efficient or effective manner and that
state funds will be adequately accounted for and safeguarded in a manner that complies
with generally accepted government accounting principles.
new text end

new text begin (b) Within 15 days of receipt of the application, the board shall send a copy of the
application to: (1) the agency whose rule or policy is involved; and (2) all exclusive
representatives who represent employees of the agency requesting the waiver. The agency
whose rule or policy is involved may mail a copy of the application to all persons who
have registered with the agency under section 14.14, subdivision 1a.
new text end

new text begin (c) The agency whose rule or policy is involved or an exclusive representative shall
notify the board of its agreement with or objection to and grounds for objection to the
waiver within 60 days of the date when the application was transmitted to the agency or
the exclusive representative. An agency's or exclusive representative's failure to respond
under this paragraph is considered agreement to the waiver.
new text end

new text begin (d) If the agency or the exclusive representative objects to the waiver, the board
shall schedule a meeting at which the agency requesting the waiver may present its case
for the waiver and the objecting party may respond. The board shall decide whether
to grant a waiver at its next regularly scheduled meeting following its receipt of an
agency's response, or the end of the 60-day response period, whichever occurs first. If
consideration of an application is not concluded at the meeting, the matter may be carried
over to the next meeting of the board. Interested persons may submit written comments to
the board on the waiver request.
new text end

new text begin (e) If the board grants a request for a waiver, the board and the agency requesting the
waiver shall enter into an agreement relating to the outcomes desired as a result of the
waiver and the means of measurement to determine whether those outcomes have been
achieved with the waiver. The agreement must specify the duration of the waiver, which
must be for at least two years and not more than four years. If the board determines that an
agency that has received a waiver is failing to comply with the terms of the agreement, the
board may rescind the agreement.
new text end

new text begin Subd. 3. new text end

new text begin Board. new text end

new text begin For purposes of evaluating waiver requests involving rules or
policies of the commissioner of administration, the commissioner of administration may
not participate in the evaluation.
new text end

Sec. 14.

new text begin [465.7905] SERVICE BUDGET MANAGEMENT MODEL GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin One or more local units of government, an association
of local governments, the Metropolitan Council, a local unit of government acting in
conjunction with an organization or a state agency, an organization established by two
or more local units of government under a joint powers agreement, or a not-for-profit
organization may apply to the Board of Innovation for a grant to be used to develop
models for innovative service budget management. The application must specify a
nonstate funding source for 25 percent of the total cost of the proposal. The application to
the board must state what other sources of funding have been considered by the local units
of government to implement the project and explain why it is not possible to complete
the project without assistance from the board. The board may not award a grant if it
determines that the local units of government could complete the project without board
assistance or if it determines the applicant has not specified a nonstate funding source for
25 percent of the total cost. A copy of the application must be provided by the units to
the exclusive representatives certified under section 179A.12 to represent employees who
provide the service or program affected by the application.
new text end

new text begin Subd. 2. new text end

new text begin Proposals. new text end

new text begin Proposed models may provide options to local governments,
neighborhood or community organizations, other not-for-profit organizations, or
individuals to redesign and deliver services. In awarding grants under this section, the
board must consider whether the proposal:
new text end

new text begin (1) expands consumer choices and opportunities;
new text end

new text begin (2) shifts government toward an expanded role as a purchaser, rather than a provider,
of services;
new text end

new text begin (3) reduces administrative costs through statewide or regional contracting, or related
administrative efficiencies;
new text end

new text begin (4) reduces administrative costs through the accumulation of multiple related
services into a single contract with one provider, or related administrative efficiencies; and
new text end

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

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin A copy of the work product for which the grant was
provided must be furnished to the board upon completion, and the board may disseminate
it to other local units of government or interested groups. If the board finds that the model
was not completed or implemented according to the terms of the grant agreement, it may
require the grantee to repay all or a portion of the grant. The board shall award grants on
the basis of each qualified applicant's score under the scoring system in section 465.806.
The amount of a grant under this section may not exceed $250,000.
new text end

Sec. 15.

new text begin [465.805] INNOVATION CHALLENGE GRANTS.
new text end

new text begin Two or more local units of government; an association of local governments; a local
unit of government acting in conjunction with the Metropolitan Council, an organization,
or a state agency; or an organization established by two or more local units of government
under a joint powers agreement may apply to the Board of Innovation for a grant to be
used to meet the start-up costs of providing shared services or functions. Agreements
solely to make joint purchases are not sufficient to qualify under this section. The
application to the board must state what other sources of funding have been considered by
the local units of government to implement the project and explain why it is not possible
to complete the project without assistance from the board. The board may not award a
grant if it determines that the local units of government could complete the project without
board assistance. A copy of the application must be provided by the applicants to the
exclusive representatives certified under section 179A.12 to represent employees who
provide the service or program affected by the application.
new text end

new text begin The proposal must include plans fully to integrate a service or function provided
by two or more local government units. A copy of the work product for which the grant
was provided must be furnished to the board upon completion, and the board may
disseminate it to other local units of government or interested groups. If the board finds
that the grantee has failed to implement the plan according to the terms of the agreement,
it may require the grantee to repay all or a portion of the grant. The board shall award
grants on the basis of each qualified applicant's score under the scoring system in section
465.806. The amount of a grant under this section may not exceed $100,000. A grant may
be made under this section only if an amount equal to 25 percent of the grant amount
is provided by nonstate sources.
new text end

Sec. 16.

new text begin [465.806] SCORING SYSTEM.
new text end

new text begin In deciding whether to award a grant under section 465.7905 or 465.805, the board
shall use the following scoring system:
new text end

new text begin (1) Up to 15 points must be awarded to reflect the extent to which the application
demonstrates creative thinking, careful planning, cooperation, involvement of the clients
of the affected service, and commitment to assume risk.
new text end

new text begin (2) Up to 20 points must be awarded to reflect the extent to which the proposed
project is likely to improve the quality of the service and to have benefits for other local
governments.
new text end

new text begin (3) Up to 15 points must be awarded to reflect the extent to which the application's
budget provides sufficient detail, maximizes the use of state funds, documents the need
for financial assistance, commits to local financial support, and limits expenditures to
essential activities.
new text end

new text begin (4) Up to 20 points must be awarded to reflect the extent to which the application
reflects the statutory goal of the grant program.
new text end

new text begin (5) Up to 15 points must be awarded to reflect the merit of the proposed project and
the extent to which it warrants the state's financial participation.
new text end

new text begin (6) Up to five points must be awarded to reflect the cost to benefit ratio projected
for the proposed project.
new text end

new text begin (7) Up to five points must be awarded to reflect the number of government units
participating in the proposal.
new text end

new text begin (8) Up to five points must be awarded to reflect the minimum length of time the
application commits to implementation.
new text end

Sec. 17.

new text begin [465.807] REPAYMENT OF GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Repayment procedures. new text end

new text begin Without regard to whether a grant recipient
offered to repay the grant in its original application, as part of a grant awarded under
section 465.7905 or 465.805, the board may require the grant recipient to repay all or part
of the grant if the board determines the project funded by the grant resulted in an actual
savings for the participating local units of government. The grant agreement must specify
how the savings are to be determined and the period of time over which the savings will
be used to calculate a repayment requirement. The repayment of grant money under
this section must not exceed an amount equal to the total savings achieved through the
implementation of the project multiplied by the total amount of the grant divided by the
total budget for the project and may not exceed the total amount of the original grant.
new text end

new text begin Subd. 2. new text end

new text begin Bonus points. new text end

new text begin In addition to the points awarded to competitive grant
applications under section 465.806, the board shall award additional points to any
applicant that projects a potential cost savings through the implementation of its project
and offers to repay part or all of the grant under the formula in subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Use of repayment revenue. new text end

new text begin All grant money repaid to the board under this
section is appropriated to the board for additional grants authorized by sections 465.7905
and 465.805.
new text end

Sec. 18.

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

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

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

Sec. 19. new text begin REPEALER.
new text end

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

Sec. 20. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 19 are effective July 1, 2010, except that duties of the board under
Minnesota Statutes, section 465.7902, subdivision 2, clause (3), are effective July 1, 2011.
new text end