Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

SF 2874

4th Engrossment - 86th Legislature (2009 - 2010) Posted on 04/22/2010 07:46am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 4th Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7
1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34
2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24
4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11
5.12 5.13 5.14 5.15 5.16 5.17
5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32
5.33 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8
6.9 6.10 6.11 6.12 6.13 6.14

A bill for an act
relating to state government operations; streamlining state government;
abolishing the Department of Employment and Economic Development and the
Department of Labor and Industry; establishing a process to reorganize delivery
of their services and performance of their functions; requiring establishment of an
employee participation committee before agency restructuring; requiring reports.

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

Section 1. new text begin REORGANIZATION; GOALS.
new text end

new text begin The legislature finds that it is desirable to reorganize state services relating to
business and employment to achieve the following goals:
new text end

new text begin (1) sustainable economic development throughout all regions of the state and all
sectors of the economy to ensure the economic well-being of the state's residents;
new text end

new text begin (2) growth of the economy of this state that consistently exceeds the national average;
new text end

new text begin (3) improved delivery of services, including greater efficiency and transparency;
new text end

new text begin (4) citizen participation in all relevant decision-making processes and at meaningful
points in the processes;
new text end

new text begin (5) best position the state, its workforce, its business community, and its educational
system to meet the needs of a competitive, global, and dynamic economy;
new text end

new text begin (6) optimal coordination between the state's postsecondary higher education
institutions and industry;
new text end

new text begin (7) streamline state government, including elimination of at least one state
department; and
new text end

new text begin (8) increased productivity of the work force given the expected shortage of labor to
remain competitive and successful in the world economy.
new text end

Sec. 2. new text begin REORGANIZATION; OUTCOMES.
new text end

new text begin Reorganization must achieve the following outcomes:
new text end

new text begin (1) increased citizen access to pertinent, understandable information relating to
business and employment;
new text end

new text begin (2) better citizen representation, access, and information through an office of public
information and advocacy;
new text end

new text begin (3) decentralization of the service delivery system combined with one-stop offering
of related services for the benefit of citizens of the state as consumers of services and
as persons who are subject to regulation;
new text end

new text begin (4) flattening the internal organization of the delivery system with processes designed
to encourage cooperation, consensus, and participation of management and workers;
new text end

new text begin (5) the capacity to identify and capture cost savings where those savings can be made
without reducing the ability to implement the state's business and employment policy;
new text end

new text begin (6) the flexibility to enable state and local governments to coordinate and cooperate
as well as identify and address existing and emerging business and employment issues of
state, national, and international import;
new text end

new text begin (7) an increased use of performance-based employment measures to ensure the
effective use of state dollars;
new text end

new text begin (8) increased accountability by reducing the number of executive administrators
reporting directly to the governor through a variety of strategies, including elimination
of at least one state department;
new text end

new text begin (9) a commitment to adequate staff development resources sufficient to implement
the reorganization;
new text end

new text begin (10) increased consumer satisfaction with state services, including licensing and
compliance investigations;
new text end

new text begin (11) increased employment, especially in high-wage industries projected to expand
in Minnesota;
new text end

new text begin (12) reduction in labor shortages in high-wage industries;
new text end

new text begin (13) increased business development support, including numbers of start-up
companies with survival rates beyond five years;
new text end

new text begin (14) reduced workplace injuries;
new text end

new text begin (15) increased development of businesses in emerging sectors, such as bioscience
and other green-economy-related businesses; and
new text end

new text begin (16) appropriate use of priority-based budgeting.
new text end

Sec. 3. new text begin REORGANIZATION; PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Working groups. new text end

new text begin (a) Within 60 days after the effective date of
this section, the Management Analysis Division of the Department of Management and
Budget shall provide a facilitator or facilitators who shall convene each of the following
working groups:
new text end

new text begin (1) a working group consisting of ten to 15 persons from agencies listed in section 5
who are members of the managerial plan established under Minnesota Statutes, section
43A.18, subdivision 3, appointed by the governor within 30 days after the effective date
of this section;
new text end

new text begin (2) a working group consisting of employees from agencies listed in section 5 who
are represented by exclusive representatives, selected by the exclusive representatives of
employees of those agencies within 30 days after the effective date of this section;
new text end

new text begin (3) a working group consisting of up to ten persons appointed by the speaker of
the house and up to ten persons appointed by the Subcommittee on Committees of the
Committee on Rules and Administration of the senate, including at least one person
appointed by each appointing authority in each of the following categories:
new text end

new text begin (i) a representative of labor unions;
new text end

new text begin (ii) a representative of business;
new text end

new text begin (iii) a representative of an institution of higher education with expertise in vocational
training;
new text end

new text begin (iv) a representative of an institution of higher education with expertise in career
training;
new text end

new text begin (v) an attorney experienced in workers' compensation law;
new text end

new text begin (vi) a member of the financial consulting community;
new text end

new text begin (vii) a member of the employee placement community; and
new text end

new text begin (viii) a representative of a provider of employment services to disabled workers.
new text end

new text begin Organizations, occupations, and industries described in clause (3) may submit
the names of persons they wish considered for appointment to a working group to the
appointing authorities. The appointing authorities under this clause must complete their
appointments within 30 days after the effective date of this section.
new text end

new text begin (b) Members of the working groups established in paragraph (a) shall serve as
partners in changing the delivery of state services and the performance of state functions.
Each working group shall initially meet separately to develop its own recommendations
for a governmental structure to perform the functions and provide the services affected by
section 5 in furtherance of the outcomes listed in section 2. A facilitator shall assist each
group. Each group must complete its recommendations by October 1, 2010.
new text end

new text begin Subd. 2. new text end

new text begin Joint committee. new text end

new text begin (a) By September 1, 2010, each working group shall
select from its membership representatives to a joint committee, as follows:
new text end

new text begin (1) two representatives from the working group established by subdivision 1,
paragraph (a), clause (1);
new text end

new text begin (2) three representatives from the working group established by subdivision 1,
paragraph (a), clause (2); and
new text end

new text begin (3) five representatives from the working group established by subdivision 1,
paragraph (a), clause (3), who must be private citizens.
new text end

new text begin (b) The facilitator or facilitators shall convene the first meeting of the joint
committee by October 1, 2010. The joint committee shall develop a recommendation for
a governmental structure to perform the functions and provide the services affected by
section 5 in furtherance of the goals and outcomes listed in sections 1 and 2, including
ways to measure and track performances on the outcomes established in section 2. The
recommendation must address ways to obtain input from local and regional governmental
units in order to achieve the coordinated and cooperative outcomes required by section
2. The speaker of the house and the Subcommittee on Committees of the Committee on
Rules and Administration of the senate may provide legislative staff support to the joint
committee upon its request. A facilitator provided by the management analysis division
shall chair meetings of the joint committee and serve as a nonvoting member. The joint
committee shall submit its recommendation for reorganization, including draft legislation,
to the governor and the chairs and ranking minority members of the legislative committees
and divisions with jurisdiction over state government and economic development policy
and finance by January 15, 2011.
new text end

new text begin (c) The joint committee expires after submission of the report.
new text end

Sec. 4. new text begin EMPLOYEE PARTICIPATION COMMITTEE.
new text end

new text begin (a) By July 1, 2010, exclusive representatives of state employees and agency heads
of the agencies listed in section 5 shall establish a committee that includes representatives
of state employees and employers within each affected agency. Members of the committee
may also serve as members of the working groups created by section 3. Each exclusive
representative of employees shall select a committee member from each of its bargaining
units in each affected agency. The head of each agency shall select an employee member
from each unit of employees not represented by an exclusive representative. The agency
head shall also appoint one or more committee members to represent the agency. The
number of members appointed by the agency head, however, may not exceed the total
number of members representing bargaining units.
new text end

new text begin (b) The committee established under paragraph (a) shall:
new text end

new text begin (1) identify tasks related to agency reorganization and adopt plans for addressing
those tasks;
new text end

new text begin (2) identify other employer and employee issues related to reorganization and adopt
plans for addressing those issues;
new text end

new text begin (3) adopt detailed plans for providing retraining for affected employees; and
new text end

new text begin (4) guide the implementation of the reorganization.
new text end

new text begin (c) The committee must submit a copy of its plans by January 15, 2011, to the
affected commissioners and to the chairs and ranking minority members of the legislative
committees with primary policy jurisdiction over state government.
new text end

new text begin (d) The committee expires after submission of the plans required under paragraph (c).
new text end

Sec. 5. new text begin ABOLITION OF AGENCIES, POWERS, AND DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Agencies. new text end

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

new text begin Subd. 2. new text end

new text begin Collective bargaining agreements. new text end

new text begin Nothing in this section abrogates
or modifies any rights of affected employees under terms of an agreement between an
exclusive bargaining representative and the state or one of its appointing authorities.
new text end

Sec. 6. new text begin BUDGET FOR NEXT BIENNIUM.
new text end

new text begin In preparing a proposed budget for the biennium beginning July 1, 2011, the
governor shall include an amount to cover the functions performed and services provided
by the agencies abolished in section 5, subdivision 1. The amount allocated for those
functions and services must be at least equal to the amount appropriated for those
functions and services in fiscal years 2010 and 2011, adjusted for inflation as measured by
the Consumer Price Index for Urban Wage Earners and Clerical Workers all items index
published by the Bureau of Labor Statistics of the United States Department of Labor. The
budget must include an amount for staff development according to Minnesota Statutes,
section 43A.045, and a substantial increase in overall expenditures for staff development.
The budget must not require the layoff of classified employees or unclassified employees
covered by a collective bargaining agreement except as provided in a plan negotiated
under Minnesota Statutes, chapter 179A, that provides options to layoff for employees
who would be affected. The governor's budget proposal must give due consideration to
the reorganization recommendations submitted by the joint committee under section 3.
new text end

Sec. 7. new text begin MANAGERIAL POSITION REDUCTIONS.
new text end

new text begin In anticipation of the reorganization required by this article, the commissioners of
employment and economic development and labor and industry must reduce the number of
deputy commissioners, assistant commissioners, and positions designated as unclassified
under authority of Minnesota Statutes, section 43A.08, subdivision 1a. The amount of
money saved in fiscal year 2011 due to the position reductions must be at least sufficient to
offset any costs of the reorganization in fiscal year 2011. Any additional savings due to
the position reductions must be redirected to other purposes within the reorganized agency
so that the net cost to the state of the reorganization is zero.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin (a) Sections 1 to 4, 6, and 7 are effective the day following final enactment.
new text end

new text begin (b) Section 5 is effective July 1, 2011. The effective date of section 5, subdivision 1,
is based on the assumption that the 2011 legislature will act on the recommendations made
by the joint committee under section 4 and that legislation will be enacted transferring the
responsibilities of the agencies abolished in section 5, subdivision 1.
new text end