1.1 	A bill for an act
1.2 	relating to state government; designating community solutions grants for high 
1.3 	priority community issues; transferring money; establishing the Commission on 
1.4 	Innovation; requiring a report; appropriating money.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. COMMUNITY SOLUTIONS GRANTS.
 1.7 		Subdivision 1.Community solutions grant fund. A community solutions 
1.8 	grant fund is established within the Department of Administration, Office of Grants 
1.9 	Management to receive funds as provided for in subdivision 2.
1.10 		Subd. 2.Fund transfer. (a) Beginning in fiscal year 2010 and continuing through 
1.11 	fiscal year 2012, one percent of each state general fund grant made for the following 
1.12 	purposes: health, education, human services, environment, and public safety, shall be 
1.13 	transferred each year to the community solutions grant fund to be used for the purposes 
1.14 	in subdivision 3. The total amount of grant funds transferred each year shall not exceed 
1.15 	$25,000,000.
1.16 	(b) For fiscal year 2013 through fiscal year 2019, $40,000,000 is appropriated from 
1.17 	the general fund to the community solutions grant fund.
1.18 	(c) For the purposes of this subdivision, state grants do not include payments to local 
1.19 	governments under Minnesota Statutes, sections 477A.011 to 477A.014; education aids 
1.20 	under Minnesota Statutes, chapter 126C; or the Minnesota family investment program.
1.21 		Subd. 3.Grants. Each year beginning in fiscal year 2010, the Office of Grants 
1.22 	Management shall make grants from the community solutions grant fund to eligible 
1.23 	not-for-profit organizations to expand successful initiatives that have demonstrated 
1.24 	measurable, positive results in addressing high priority community issues. In determining 
2.1 	grant recipients, the Office of Grants Management shall consider whether there is potential 
2.2 	for the initiatives to be duplicated by others and for the programmatic approach to be 
2.3 	brought to regional or statewide scale. The Office of Grants Management shall designate 
2.4 	an evaluation team to accept grant applications, review and evaluate grant proposals, and 
2.5 	select grant proposals to receive funding each year. Grant recipients may only use the 
2.6 	funds to expand the programs that demonstrate measurable, positive results in addressing 
2.7 	high priority issues as identified in subdivision 4 and to replicate the programs using 
2.8 	other providers to serve other geographic areas or other populations. The Office of 
2.9 	Grants Management may supplement state resources for community solutions grants with 
2.10 	funding from other sources including the federal government, businesses, donations, 
2.11 	and other gifts.
2.12 		Subd. 4.Eligibility; high priority issues. To be eligible to receive a grant under 
2.13 	this section, an organization must be a not-for-profit entity under section 501(c)(3) of the 
2.14 	Internal Revenue Code of 1986, as amended, and be able to demonstrate past results in 
2.15 	improving measurable outcomes relating to one or more of the following high priority 
2.16 	issue areas:
2.17 	(1) education for economically disadvantaged students in public schools;
2.18 	(2) child and youth development;
2.19 	(3) reductions in poverty or increases in economic opportunity for economically 
2.20 	disadvantaged individuals;
2.21 	(4) reductions in homelessness;
2.22 	(5) health, including access to health care and health education;
2.23 	(6) resource conservation and environmental quality;
2.24 	(7) individual or community energy efficiency; or
2.25 	(8) reductions in crime.
2.26 		Subd. 5.Match required. Each dollar of state funds awarded under this section 
2.27 	must be matched by a grant recipient with nonstate funds on a dollar-for-dollar basis.
2.28 		Subd. 6.Terms of grants. Grants may be made for a period of up to five years. 
2.29 	Grant recipients must use no less than ten percent of the grant to duplicate the program 
2.30 	using other providers and to bring the programmatic approach to regional or statewide 
2.31 	scale. In awarding the grant, the Office of Grants Management must identify the specific 
2.32 	measures of accountability on which the grant recipient must report under subdivision 7.
2.33 		Subd. 7.Reporting. Grant recipients must report annually by February 1 each year 
2.34 	to the Office of Grants Management on how the grant funds have been spent and the 
2.35 	measurable results achieved to date including success in duplicating the programs using 
2.36 	other providers and bringing the programmatic approach to regional or statewide scale. 
3.1 	The Office of Grants Management must report to the legislature by March 15 of each year 
3.2 	on the number, type, and amount of grants awarded and the activities and outcomes of 
3.3 	the grant recipients.
3.4 		Subd. 8.Federal resources. Information regarding federal grant resources that may 
3.5 	be used for the purposes of this section must be made available by the Office of Grants 
3.6 	Management.

3.7 	EFFECTIVE DATE. This section is effective July 1, 2009, and sunsets on July 
3.8 	1, 2019.

3.9 	Sec. 2. INNOVATION COMMISSION.
 3.10 		Subdivision 1.Innovation commission. By October 1, 2009, the Office of Grants 
3.11 	Management shall establish the Commission on Innovation. The commission shall be 
3.12 	comprised of seven members appointed by the governor.
3.13 		Subd. 2.Duties; report. The Commission on Innovation shall study and make 
3.14 	recommendations on improving collaborative activities between the state, nonprofit 
3.15 	entities, and the private sector. The commission shall report its recommendation to the 
3.16 	legislature by January 15, 2011.
3.17 		Subd. 3.Appropriation. $200,000 is transferred in fiscal year 2010 only from the 
3.18 	community solutions fund to the commission for the study and report required by this 
3.19 	section. The appropriation is available until expended or until the commission expires.
3.20 		Subd. 4.Expiration. The commission sunsets 30 days after the required report in 
3.21 	subdivision 2 is delivered to the legislature.