1.1.................... moves to amend the first committee engrossment, (CES3134-1), to
1.2S.F. No. 3134, as follows:
1.3Page 1, after line 29, insert:

1.6Page 29, after line 9, insert:


1.9    Section 1. STRATEGIC PLAN REPORT.
1.10By January 15, 2011, the Minnesota Innovation and Research Council shall report to
1.11the governor and the chairs and ranking minority members of the legislative committees
1.12and divisions with jurisdiction over state government policy and finance with a strategic
1.13plan containing findings and recommendations to improve state and local government
1.14delivery of public services. The strategic plan must specify:
1.15(1) how to enhance the public involvement and input as the public uses state and
1.16local government services and public schools;
1.17(2) how technology can be leveraged to reduce costs and enhance quality;
1.18(3) how service innovation will increase value or results per dollar spent; and
1.19(4) the design for a platform that will facilitate high-quality innovation and evaluate
1.20state and local government structural redesign in the future.
1.21The strategic plan shall also provide a process to review and modify
1.22recommendations at regular intervals in the future based on specific results measured
1.23at regular intervals.
1.24The strategic plan shall also include any proposed legislation necessary to implement
1.25the council's recommendations.


2.3    Section 1. Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision
2.4to read:
2.5    Subd. 9. Recommendations to the Minnesota Innovation and Research Council.
2.6The legislative auditor may make recommendations to the Minnesota Innovation and
2.7Research Council established under section 465.7902 that will assist the council in
2.8accomplishing its duties.

2.9    Sec. 2. [465.7901] DEFINITIONS.
2.10    Subdivision 1. Agency. "Agency" means a department, agency, board, or other
2.11instrumentality of state government that has jurisdiction over an administrative rule or
2.12law from which a waiver is sought under section 465.7903. If no specific agency has
2.13jurisdiction over such a law, agency refers to the attorney general.
2.14    Subd. 2. Council. "Council" means the Minnesota Innovation and Research Council
2.15established by section 465.7902.
2.16    Subd. 3. Local government unit. "Local government unit" means a county, home
2.17rule charter or statutory city, school district, town, or special taxing district.
2.18    Subd. 4. Metropolitan agency. "Metropolitan agency" has the meaning given in
2.19section 473.121, subdivision 5a.
2.20    Subd. 5. Metropolitan area. "Metropolitan area" has the meaning given in section
2.21473.121, subdivision 2.
2.22    Subd. 6. Metropolitan Council. "Metropolitan Council" means the Metropolitan
2.23Council established by section 473.123.
2.24    Subd. 7. Scope. As used in sections 465.7901 to 465.7907 and 465.805 to 465.808,
2.25the terms defined in this section have the meanings given them.

2.27    Subdivision 1. Membership. The Minnesota Innovation and Research Council
2.28consists of 15 members, appointed as follows:
2.29(1) two members of the senate, appointed by the Subcommittee on Committees of
2.30the Senate Committee on Rules and Administration, one member of the majority caucus
2.31and one member of the largest minority caucus;
2.32(2) two members of the house of representatives, appointed by the speaker of the
2.33house, one member of the majority caucus and one member of the largest minority caucus;
2.34(3) the commissioner of management and budget;
3.1(4) the commissioner of administration;
3.2(5) the state chief information officer;
3.3(6) an administrative law judge appointed by the chief administrative law judge;
3.4(7) the state auditor;
3.5(8) two members with a background in academic research concerning system
3.6redesign and delivery, including one member appointed by the chancellor of the Minnesota
3.7State Colleges and Universities and one member appointed by the president of the
3.8University of Minnesota;
3.9(9) one member with experience in the leadership of nonprofit organizations,
3.10appointed by the Minnesota Council of Nonprofits;
3.11(10) one member with experience in foundation leadership appointed by the
3.12Minnesota Council on Foundations;
3.13(11) one member with experience as a leader of a for-profit corporation, appointed
3.14by the Minnesota Chamber of Commerce; and
3.15(12) one member representing public employees appointed by the American
3.16Federation of State, County and Municipal Employees.
3.17All members must have experience or interest in the work of system redesign or public
3.18sector innovation. The legislative members serve as nonvoting members. Only members
3.19designated in clauses (3) to (7) may vote on proposed rule or law waivers under section
3.20465.7903. A commissioner serving on the council may designate an employee from the
3.21commissioner's agency to serve as the commissioner's designee. A person registered as a
3.22lobbyist under chapter 10A may not be a member of the council.
3.23    Subd. 2. Duties of council. The council shall:
3.24(1) accept applications from local government units and nonprofit organizations for
3.25waivers of administrative rules and temporary, limited exemptions from enforcement of
3.26procedural requirements in state law as provided in section 465.7903, and determine
3.27whether to approve, modify, or reject the application;
3.28(2) accept applications for grants to local government units and related organizations
3.29proposing to design models or plans for innovative service delivery and management as
3.30provided in section 465.7905, and determine whether to approve, modify, or reject the
3.32(3) accept applications from eligible local government units for service-sharing
3.33grants as provided in section 465.7905, and determine whether to approve, modify,
3.34or reject the application;
4.1(4) make recommendations to the legislature for the authorization of pilot projects
4.2for the implementation of innovative service delivery activities that require statutory
4.4(5) make recommendations to the legislature regarding the elimination of state
4.5mandates that inhibit local government efficiency, innovation, and cooperation by
4.6prescribing specific processes for achieving a desired outcome;
4.7(6) investigate and review the role of unfunded state mandates in intergovernmental
4.8relations and assess their impact on state and local government objectives and
4.10(7) make recommendations to the governor and the legislature regarding:
4.11(i) allowing flexibility for local units of government in complying with specific
4.12unfunded state mandates for which terms of compliance are unnecessarily rigid or
4.14(ii) reconciling any two or more unfunded state mandates that impose contradictory
4.15or inconsistent requirements;
4.16(iii) terminating unfunded state mandates that are duplicative, obsolete, or lacking
4.17in practical utility;
4.18(iv) suspending, on a temporary basis, unfunded state mandates that are not vital
4.19to public health and safety and that compound the fiscal difficulties of local units of
4.20government, including recommendations for initiating the suspensions;
4.21(v) consolidating or simplifying unfunded state mandates or the planning or
4.22reporting requirements of the mandates, in order to reduce duplication and facilitate
4.23compliance by local units of government with those mandates; and
4.24(vi) establishing common state definitions or standards to be used by local units of
4.25government in complying with unfunded state mandates that use different definitions or
4.26standards for the same terms or principles;
4.27(8) identify relevant unfunded state mandates;
4.28(9) facilitate proposals for grants made by eligible applicants; and
4.29(10) make recommendations on topics to the Legislative Audit Commission for
4.30program evaluations that are likely to result in recommendations that will improve the
4.31cost-effective delivery of government services.
4.32The duties imposed under clauses (6) to (10) must be performed to the extent
4.33possible given existing resources. Each recommendation under clause (7) must, to
4.34the extent practicable, identify the specific unfunded state mandates to which the
4.35recommendation applies. The commissioners or directors of state agencies responsible for
5.1the promulgation or enforcement of the unfunded mandates addressed in clauses (5) to
5.2(10) shall assist the council in carrying out the council's duties under this section.
5.3    Subd. 3. Additional coordinating functions. The council may also:
5.4(1) serve as a clearinghouse for existing ideas and information from community
5.6(2) provide a Web site where interested parties may share information and practices;
5.7(3) receive recommendations from the legislative auditor concerning waivers and
5.8other initiatives within the council's jurisdiction;
5.9(4) conduct research concerning innovation in service delivery and local government
5.10efficiency, innovation, and cooperation;
5.11(5) facilitate regional dialogue concerning successful innovation and collaboration;
5.13(6) use its best efforts to maximize public involvement in its work, including the use
5.14of best practices in social media.
5.15    Subd. 4. Staff. The council shall hire an executive director who serves as the state's
5.16chief innovation officer. The council may hire other staff or consultants as necessary to
5.17perform its duties. The commissioner of administration must provide administrative
5.18support services to the council.
5.19    Subd. 5. Terms, compensation, and removal. Members serve at the pleasure of
5.20the appointing authority. Compensation of members is governed by section 15.0575,
5.21unless otherwise provided.

5.22    Sec. 4. [465.7903] RULE AND LAW WAIVER REQUESTS.
5.23    Subdivision 1. Generally. (a) Except as provided in paragraph (b), a local
5.24government unit or a nonprofit organization may request the Minnesota Innovation and
5.25Research Council to grant a waiver from one or more administrative rules or a temporary,
5.26limited exemption from enforcement of state procedural laws governing delivery of
5.27services by the local government unit or nonprofit organization. Two or more local
5.28government units may submit a joint application for a waiver or exemption under this
5.29section if they propose to cooperate in providing a service or program that is subject to the
5.30rule or law. Before a local unit of government may submit an application to the council,
5.31the governing body of the local government unit must approve, in concept, the proposed
5.32waiver or exemption at a meeting required to be public under chapter 13D. A waiver
5.33or exemption granted to a nonprofit organization under this section applies to services
5.34provided to all of the organization's clients.
6.1(b) A school district that is granted a variance from rules of the commissioner of
6.2education under section 122A.163 need not apply to the council for a waiver of those rules
6.3under this section. A school district may not seek a waiver of rules under this section if
6.4the commissioner of education has authority to grant a variance to the rules under section
6.5122A.163. This paragraph does not preclude a school district from being included in a
6.6cooperative effort with another local government unit under this section.
6.7    Subd. 2. Application. (a) A local government unit or nonprofit organization
6.8requesting a waiver of a rule or exemption from enforcement of a law under this section
6.9shall present a written application to the council. The application must include:
6.10(1) identification of the service or program at issue;
6.11(2) identification of the administrative rule or the law imposing a procedural
6.12requirement with respect to which the waiver or exemption is sought; and
6.13(3) a description of the improved service outcome sought, including an explanation
6.14of the effect of the waiver or exemption in accomplishing that outcome.
6.15(b) A local government unit submitting an application must provide a copy to the
6.16exclusive representative certified under section 179A.12 to represent employees who
6.17provide the service or program affected by the requested waiver or exemption.
6.18    Subd. 3. Review process. (a) Upon receipt of an application, the council shall
6.19commence review of the application, as provided in this subdivision. The council shall
6.20dismiss an application if it finds that the application proposes a waiver of rules or
6.21exemption from enforcement of laws that would result in due process violations, violations
6.22of federal law or the state or federal constitution, or the loss of services to people who
6.23are entitled to them. If the council does not dismiss an application, the council must
6.24publish notice in the State Register before it acts on the application. The notice must list
6.25the name of the local government unit or nonprofit organization requesting the waiver or
6.26exemption, the service or program at issue, and the rule or law with respect to which the
6.27waiver of exemption is sought.
6.28(b) The council shall determine whether a law from which an exemption for
6.29enforcement is sought is a procedural law, specifying how a local government unit or
6.30nonprofit organization is to achieve an outcome, rather than a substantive law prescribing
6.31the outcome or otherwise establishing policy. For the purposes of this section, "procedural
6.32law" does not include a statutory notice requirement. In making its determination, the
6.33council shall consider whether the law specifies such requirements as:
6.34(1) who must deliver a service;
6.35(2) where the service must be delivered;
6.36(3) to whom and in what form reports regarding the service must be made; and
7.1(4) how long or how often the service must be made available to a given recipient.
7.2(c) If a member of the council also is a commissioner, a commissioner's designee, or
7.3the state auditor, or is employed by an agency with jurisdiction over a rule or law affected
7.4by an application, the member must not participate in the decision on the particular waiver
7.5or exemption.
7.6(d) If the application is submitted by a local government unit or a nonprofit
7.7organization in the metropolitan area or the unit or nonprofit organization requests a
7.8waiver of a rule or temporary, limited exemptions from enforcement of a procedural
7.9law over which the Metropolitan Council or a metropolitan agency has jurisdiction, the
7.10council shall also transmit a copy of the application to the Metropolitan Council for
7.11review and comment. The Metropolitan Council shall report its comments to the council
7.12within 60 days of the date the application was transmitted to the Metropolitan Council.
7.13The Metropolitan Council may point out any resources or technical assistance it may be
7.14able to provide a local government unit or nonprofit organization submitting a request
7.15under this section.
7.16(e) Within 15 days after receipt of the application, the council shall transmit a copy
7.17of it to the commissioner of each agency having jurisdiction over a rule or law from which
7.18a waiver or exemption is sought. The agency may mail a notice that it has received an
7.19application for a waiver or exemption to all persons who have registered with the agency
7.20under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or
7.21exemption is requested. If no agency has jurisdiction over the rule or law, the council shall
7.22transmit a copy of the application to the attorney general. The agency shall inform the
7.23council of its agreement with or objection to and grounds for objection to the waiver or
7.24exemption request within 60 days of the date when the application was transmitted to it.
7.25An agency's failure to respond under this paragraph is considered agreement to the waiver
7.26or exemption. The council shall decide whether to grant a waiver or exemption at its next
7.27regularly scheduled meeting following its receipt of an agency's response or the end of
7.28the 60-day response period. If consideration of an application is not concluded at that
7.29meeting, the matter may be carried over to the next meeting of the council. Interested
7.30persons may submit written comments and requests to present oral comments to the
7.31council on the waiver or exemption request up to the time of its vote on the application.
7.32(f) If the exclusive representative of the affected employees of the requesting local
7.33government unit objects to the waiver or exemption request, it may inform the council
7.34of the objection to and the grounds for the objection to the waiver or exemption request
7.35within 60 days of the receipt of the application.
8.1    Subd. 4. Hearing. If the agency or the exclusive representative does not agree
8.2with the waiver or exemption request, the council shall set a date for a hearing on the
8.3application. The hearing must be conducted informally at a meeting of the council.
8.4Persons representing the local government unit shall present their request for the waiver or
8.5exemption, and a representative from the agency shall explain the agency's objection to the
8.6waiver or exemption. Members of the council may request additional information from
8.7either party. The council may also request, either before or at the hearing, information
8.8or comments from representatives of business, labor, local governments, state agencies,
8.9consultants, and members of the public. If a member of the public requests to present
8.10comments or information at the hearing, the council must permit the member of the
8.11public an opportunity to present the comments or information. If necessary, the hearing
8.12may be continued at a subsequent council meeting. A waiver or exemption requires a
8.13majority vote of the council members. The council may modify the terms of the waiver or
8.14exemption request in arriving at the agreement required under subdivision 5.
8.15    Subd. 5. Conditions of agreements. (a) If the council grants a request for a waiver
8.16or exemption, the council and the entity making the request shall enter into an agreement
8.17providing for the delivery of the service or program that is the subject of the application.
8.18The agreement must specify desired outcomes and the means of measurement by which
8.19the council will determine whether the outcomes specified in the agreement have been
8.20met. The agreement must specify the duration of the waiver or exemption. The duration of
8.21a waiver from an administrative rule may be for no less than two years and no more than
8.22four years, subject to renewal if both parties agree. An exemption from enforcement of a
8.23law terminates ten days after adjournment of the regular legislative session held during the
8.24calendar year following the year when the exemption is granted, unless the legislature has
8.25acted to extend or make permanent the exemption.
8.26(b) If the council grants a waiver or exemption, it must report the waiver or
8.27exemption to the legislature, including the chairs of the governmental operations and
8.28appropriate policy committees in the house of representatives and senate, and the governor
8.29within 30 days.
8.30(c) The council may reconsider or renegotiate the agreement if the rule or law
8.31affected by the waiver or exemption is amended or repealed during the term of the original
8.32agreement. A waiver of a rule under this section has the effect of a variance granted by
8.33an agency under section 14.055. The recipient of an exemption from enforcement of a
8.34procedural requirement in state law under this section is exempt from that law for the
8.35duration of the exemption. The council may require periodic reports from the recipient, or
8.36conduct investigations of the service or program.
9.1    Subd. 6. Enforcement. If the council finds that the recipient of a waiver or an
9.2exemption has failed to comply with the terms of the agreement under subdivision 5, it
9.3may rescind the agreement. After an agreement is rescinded, the recipient is subject to the
9.4rules and laws covered by the agreement.
9.5    Subd. 7. Access to data. If the recipient of a waiver or an exemption through a
9.6cooperative program under this section gains access to data that is classified as not public,
9.7the access to and use of the data for the recipient is governed by the same restrictions on
9.8access to and use of the data that apply to the unit that collected, created, received, or
9.9maintained the data.

9.10    Sec. 5. [465.7904] WAIVERS OF STATE RULES; POLICIES.
9.11    Subdivision 1. Application. A state agency may apply to the council for a waiver
9.13(1) an administrative rule or policy adopted by the commissioner of management
9.14and budget that deals with the state personnel system;
9.15(2) an administrative rule or policy of the commissioner of administration that
9.16deals with the state procurement system; or
9.17(3) a policy of the commissioner of management and budget that deals with the
9.18state accounting system.
9.19Two or more state agencies may submit a joint application. A waiver application
9.20must identify the rule or policy at issue, and must describe the improved outcome sought
9.21through the waiver.
9.22    Subd. 2. Review process. (a) The council shall review all applications submitted
9.23under this section. The council shall dismiss an application if it finds that the application
9.24proposes a waiver that would result in due process violations, violations of federal law
9.25or the state or federal constitution, or the loss of services to people who are entitled to
9.26them. If a proposed waiver would violate the terms of a collective bargaining agreement
9.27effective under chapter 179A, the waiver is not effective without the consent of the
9.28exclusive representative that is a party to the agreement. The council may approve a
9.29waiver only if the council determines that if the waiver is granted: (1) services can
9.30be provided in a more efficient or effective manner; and (2) services related to human
9.31resources must be provided in a manner consistent with section 43A.01. In the case of a
9.32waiver from a policy of the commissioner of management and budget, the council may
9.33approve the waiver only if it determines that services will be provided in a more efficient
9.34or effective manner and that state funds will be adequately accounted for and safeguarded
9.35in a manner that complies with generally accepted government accounting principles.
10.1(b) Within 15 days of receipt of the application, the council shall send a copy of the
10.2application to: (1) the agency whose rule or policy is involved; and (2) all exclusive
10.3representatives who represent employees of the agency requesting the waiver. The agency
10.4whose rule or policy is involved may mail a copy of the application to all persons who
10.5have registered with the agency under section 14.14, subdivision 1a.
10.6(c) The agency whose rule or policy is involved or an exclusive representative shall
10.7notify the council of its agreement with or objection to and grounds for objection to the
10.8waiver within 60 days of the date when the application was transmitted to the agency or
10.9the exclusive representative. An agency's or exclusive representative's failure to respond
10.10under this paragraph is considered agreement to the waiver.
10.11(d) If the agency or the exclusive representative objects to the waiver, the council
10.12shall schedule a meeting at which the agency requesting the waiver may present its case
10.13for the waiver and the objecting party may respond. The council shall decide whether
10.14to grant a waiver at its next regularly scheduled meeting following its receipt of an
10.15agency's response, or the end of the 60-day response period, whichever occurs first. If
10.16consideration of an application is not concluded at the meeting, the matter may be carried
10.17over to the next meeting of the council. Interested persons may submit written comments
10.18to the council on the waiver request.
10.19(e) If the council grants a request for a waiver, the council and the agency requesting
10.20the waiver shall enter into an agreement relating to the outcomes desired as a result of the
10.21waiver and the means of measurement to determine whether those outcomes have been
10.22achieved with the waiver. The agreement must specify the duration of the waiver, which
10.23must be for at least two years and not more than four years. If the council determines that
10.24an agency that has received a waiver is failing to comply with the terms of the agreement,
10.25the council may rescind the agreement.
10.26    Subd. 3. Participation. If a waiver request involves a rule or policy adopted by an
10.27official specified in section 465.7902, subdivision 1, clauses (3) to (7), that official may
10.28not participate in the evaluation of that waiver request.

10.29    Sec. 6. [465.7905] INNOVATION AND REDESIGN GRANTS.
10.30    Subdivision 1. Application. One or more local units of government, an association
10.31of local governments, the Metropolitan Council, a local unit of government acting in
10.32conjunction with an organization or a state agency, an organization established by two
10.33or more local units of government under a joint powers agreement, or a not-for-profit
10.34organization may apply to the Minnesota Innovation and Research Council for a grant
10.35to be used to: (1) develop models for service redesign; or (2) meet the start-up costs
11.1of providing shared services or functions. Agreements solely to make joint purchases
11.2do not qualify for grants. The application must specify a nonstate funding source for
11.325 percent of the total cost of the proposal. The application to the council must state
11.4what other sources of funding have been considered by the local units of government to
11.5implement the project and explain why it is not possible to complete the project without
11.6assistance from the council. The council may not award a grant if it determines that the
11.7local units of government could complete the project without council assistance or if it
11.8determines the applicant has not specified a nonstate funding source for 25 percent of
11.9the total cost. A copy of the application must be provided by the units to the exclusive
11.10representatives certified under section 179A.12 to represent employees who provide the
11.11service or program affected by the application.
11.12    Subd. 2. Proposals. (a) Proposed models for service redesign may provide options
11.13to local governments, neighborhood or community organizations, other not-for-profit
11.14organizations, or individuals to redesign service delivery. In awarding grants under this
11.15paragraph, the council must consider whether the proposal:
11.16(1) expands consumer choices and opportunities;
11.17(2) shifts government toward an expanded role as a purchaser, rather than a provider,
11.18of services;
11.19(3) reduces administrative costs through statewide or regional contracting, or related
11.20administrative efficiencies;
11.21(4) reduces administrative costs through the accumulation of multiple related
11.22services into a single contract with one provider, or related administrative efficiencies;
11.23(5) fosters entrepreneurial leadership in the public sector; and
11.24(6) increases value to the taxpayer or results per dollar spent.
11.25(b) A proposal for a grant for shared services or functions must include plans to
11.26fully integrate a service or function provided by two or more local government units.
11.27The proposal must include how value for the taxpayer or results per dollar spent will be
11.29    Subd. 3. Requirements. A copy of the work product for which the grant was
11.30provided must be furnished to the council upon completion, and the council may
11.31disseminate it to other local units of government or interested groups. If the council finds
11.32that the work was not completed or implemented according to the terms of the grant
11.33agreement, it may require the grantee to repay all or a portion of the grant. The council
11.34shall award grants on the basis of each qualified applicant's score under the scoring
11.35system in section 465.7906. The amount of a grant under subdivision 2, paragraph (a),
12.1may not exceed $250,000. The amount of a grant under subdivision 2, paragraph (b),
12.2may not exceed $100,000.

12.3    Sec. 7. [465.7906] SCORING SYSTEM.
12.4In deciding whether to award a grant under section 465.7905, the council shall
12.5use the following scoring system:
12.6(1) Up to 15 points must be awarded to reflect the extent to which the application
12.7demonstrates creative thinking, careful planning, cooperation, involvement of the clients
12.8of the affected service, and commitment to persist through challenges.
12.9(2) Up to 25 points must be awarded to reflect the extent to which the proposed
12.10project is likely to improve the quality of the service, increase value to the taxpayers or
12.11results per dollar spent, and to have benefits for other local governments.
12.12(3) Up to 15 points must be awarded to reflect the extent to which the application's
12.13budget provides sufficient detail, maximizes the use of state funds, documents the need
12.14for financial assistance, commits to local financial support, and limits expenditures to
12.15essential activities.
12.16(4) Up to 15 points must be awarded to reflect the extent to which the application
12.17reflects the statutory goal of the grant program.
12.18(5) Up to 15 points must be awarded to reflect the merit of the proposed project and
12.19the extent to which it warrants the state's financial participation.
12.20(6) Up to five points must be awarded to reflect the cost to benefit ratio projected
12.21for the proposed project.
12.22(7) Up to five points must be awarded to reflect the number of government units
12.23participating in the proposal.
12.24(8) Up to five points must be awarded to reflect the minimum length of time the
12.25application commits to implementation.

12.26    Sec. 8. [465.7907] REPAYMENT OF GRANTS.
12.27    Subdivision 1. Repayment procedures. Without regard to whether a grant recipient
12.28offered to repay the grant in its original application, as part of a grant awarded under
12.29section 465.7905, the council may require the grant recipient to repay all or part of the
12.30grant if the council determines the project funded by the grant resulted in an actual savings
12.31for the participating local units of government. The grant agreement must specify how the
12.32savings are to be determined and the period of time over which the savings will be used
12.33to calculate a repayment requirement. The repayment of grant money under this section
13.1must not exceed an amount equal to the total savings achieved through the implementation
13.2of the project.
13.3    Subd. 2. Bonus points. In addition to the points awarded to competitive grant
13.4applications under section 465.7906, the council shall award additional points to any
13.5applicant that projects a potential cost savings through the implementation of its project
13.6and offers to repay part or all of the grant under the formula in subdivision 1.
13.7    Subd. 3. Use of repayment revenue. All grant money repaid to the council under
13.8this section is appropriated to the council for additional grants authorized by section

13.10    Sec. 9. [465.805] POLICY INNOVATION AND RESEARCH.
13.11    Subdivision 1. Research topics. The council shall periodically select policy
13.12innovation topics suitable for review and analysis by a consortium of independent
13.13organizations. Topics may include general or specific functions of state government. The
13.14council shall give primary consideration to areas of concern where a comprehensive
13.15review and analysis of available research is likely to yield recommendations for policy
13.16changes that will provide significant efficiencies and improvements in the operation of
13.17state government and an increase in value to the taxpayer. Legislators and legislative
13.18committees may provide the council with recommendations for topics. The council shall
13.19make the final determination regarding the selection of topics under this section.
13.20    Subd. 2. Request for proposal process. (a) After making the determination of a
13.21research topic under subdivision 1, the council shall prepare a request for proposal relating
13.22to the topic that specifies:
13.23(1) the precise topic and scope of the research required for the report to the
13.25(2) the deadlines for the response to the request for proposal and for the subsequent
13.26report; and
13.27(3) any other restrictions or guidelines required by the commission.
13.28The council shall make the request for proposal publicly available and must
13.29review responses from any interested party. A group of individuals or organizations
13.30may submit a response. The council may encourage the development of a collaborative
13.31design lab containing a cross-section of researchers and public sector designers from
13.32various nonprofits, businesses, foundations, and education institutions to respond to the
13.33request for proposal.
14.1(b) After the deadline for submission of responses has expired, the council must hold
14.2a hearing to consider all submissions. The council shall consider the following factors in
14.3selecting a response to the request for proposal:
14.4(1) the experience and training of individuals and organizations who will prepare the
14.5report to the commission;
14.6(2) the reliability and credibility of individuals and organizations who will prepare
14.7the report;
14.8(3) the proposed method of research; and
14.9(4) the resources available for the preparation of the report.
14.10(c) After consideration and hearing of the responses to the request for proposal, the
14.11council may:
14.12(1) select a submission;
14.13(2) revise the original request for proposal and extend the deadline for responses; or
14.14(3) terminate the request for proposal process for the selected topic.
14.15The chief innovation officer shall periodically communicate with the researchers
14.16to make sure they are focused on answering the questions outlined in the request for
14.18    Subd. 3. Reports to council. The council shall hold a hearing to receive a report
14.19prepared under this section and shall ensure that the governor and the relevant committees
14.20in the legislature are provided with notice of the report and an opportunity to review the
14.21report, including an opportunity for additional hearings.

14.22    Sec. 10. [465.808] RECEIPTS; APPROPRIATION.
14.23(a) The council may charge a fee for the use of services provided by the council's
14.24staff. The receipts from fees charged under this section are deposited in a special revenue
14.25account and appropriated to the council for services provided under sections 465.7901 to
14.27(b) The council may accept gifts and grants. Money received under this paragraph
14.28is deposited in a special revenue account and appropriated to the council for services
14.29provided under sections 465.7901 to 465.808.

14.32    Subdivision 1. Report. The council shall report by January 15 each year to the
14.33governor and appropriate committees of the house of representatives and senate on its
14.34activities. The report shall include the amount of the council's net spending, the amount of
15.1savings and the increased outcomes to the taxpayer that was identified by the council, and
15.2the actual documented savings to state and local governments. Entities receiving grants
15.3or waivers from the council must document and verify savings to the taxpayer from the
15.4previous year's budgets.
15.5    Subd. 2. Savings and increased value. The council must make every effort to
15.6obtain $3 in savings and show increased value to the taxpayer for each net state dollar
15.7spent by the council.
15.8    Subd. 3. Innovative practices. The council shall promote and drive innovative
15.9practices and must make annual recommendations to the legislature. One or all of these
15.10recommendations may be in partnership with an individual, foundations, nonprofits, or
15.11businesses. The council may make endorsements of proposals of individuals, foundations,
15.12nonprofits, or businesses when making recommendations. The council must make annual
15.13recommendations to:
15.14(1) recommend at least $20 in savings and show increased outcomes to the taxpayer
15.15for each net state dollar spent by the council. These savings may be spread out over
15.16various budget items;
15.17(2) recommend policy changes that will quantifiably improve desired outcome
15.18attainment to the taxpayer as compared to dollars spent. This shall not be limited to
15.19efficiency but may also include developing new approaches to achieve desired outcomes;
15.20(3) highlight existing innovative practices or partnerships in the state; and
15.21(4) recommend innovative models, which may include state and local government
15.22structural redesign, from across the country to the legislature; highlight innovative
15.23practices from past or contemporary reports; recommend evidence-based service delivery
15.24methods for this state; or recommend theory-based working models of approaches to

15.26    Sec. 12. APPROPRIATIONS.
15.27$50,000 is appropriated from the general fund for the fiscal year ending June 30,
15.282011, to the Minnesota Innovation and Research Council for the following purposes:
15.29(1) operation and administration of the council;
15.30(2) grants for models for service redesign;
15.31(3) grants for shared services and functions;
15.32(4) policy innovation and research; and
15.33(5) the strategic plan report under article 1, section 1.
15.34The appropriations in this section are contingent on receiving a dollar-for-dollar
15.35match from private sources. This is a onetime appropriation.

16.1    Sec. 13. REPEALER.
16.2Minnesota Statutes 2008, section 6.80, is repealed."
16.3Renumber the articles in sequence and correct the internal references
16.4Amend the title accordingly