1.1.................... moves to amend H.F. No. 577 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1

1.4STATE GOVERNMENT APPROPRIATIONS

1.5

Section 1. STATE GOVERNMENT APPROPRIATIONS.

1.6 The sums shown in the columns marked "Appropriations" are appropriated to the
1.7agencies and for the purposes specified in this article. The appropriations are from the
1.8general fund, or another named fund, and are available for the fiscal years indicated
1.9for each purpose. The figures "2012" and "2013" used in this article mean that the
1.10appropriations listed under them are available for the fiscal year ending June 30, 2012, or
1.11June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
1.12year 2013. "The biennium" is fiscal years 2012 and 2013.

`1.13`	APPROPRIATIONS
`1.14`	Available for the Year
`1.15`	Ending June 30
`1.16`		2012	2013

1.17

Sec. 2. LEGISLATURE

1.18

Subdivision 1.Total Appropriation

61,651,000

`1.19`	Appropriations by Fund
`1.20`		2012	2013
`1.21`	General	61,523,000	61,523,000
`1.22`	Health Care Access	128,000	128,000

1.23The amounts that may be spent for each
1.24purpose are specified in the following
1.25subdivisions.

1.26

Subd. 2.Senate

20,068,000

2.1

Subd. 3.House of Representatives

27,874,000

2.2

Subd. 4.Legislative Coordinating Commission

13,709,000

`2.3`	Appropriations by Fund
`2.4`	General	13,581,000	13,581,000
`2.5`	Health Care Access	128,000	128,000

2.6$10,000 each year from the general fund
2.7is for purposes of the legislators' forum,
2.8through which Minnesota legislators meet
2.9with counterparts from South Dakota, North
2.10Dakota, and Manitoba to discuss issues of
2.11mutual concern.

2.12
2.13

Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR

3,097,000

2.14(a) This appropriation is to fund the Office of
2.15the Governor and Lieutenant Governor.
2.16(b) By September 1 of each year, the
2.17commissioner of management and budget
2.18shall report to the chairs and ranking
2.19minority members of the senate State
2.20Government Budget Division and the
2.21house of representatives State Government
2.22Finance Division any personnel costs
2.23incurred by the Office of the Governor and
2.24Lieutenant Governor that were supported
2.25by appropriations to other agencies during
2.26the previous fiscal year. The Office of the
2.27Governor shall inform the chairs and ranking
2.28minority members of the divisions before
2.29initiating any interagency agreements.
2.30(c) During the biennium ending June 30,
2.312013, the Office of the Governor may not
2.32receive payments of more than $670,000
2.33each fiscal year from other executive
2.34agencies under Minnesota Statutes, section
3.115.53, to support personnel costs incurred
3.2by the office. Payments received under this
3.3paragraph must be deposited in a special
3.4revenue account. Money in the account is
3.5appropriated to the Office of the Governor.
3.6The authority in this paragraph supersedes
3.7other law enacted in 2011 that limits the
3.8ability of the office to enter into agreements
3.9relating to personnel costs with other
3.10executive branch agencies or prevents the use
3.11of appropriations made to other agencies for
3.12agreements with the office under Minnesota
3.13Statutes, section 15.53.

3.14

Sec. 4. STATE AUDITOR

7,964,000

3.15

Sec. 5. ATTORNEY GENERAL

21,712,000

`3.16`	Appropriations by Fund
`3.17`		2012	2013
`3.18`	General	19,433,000	19,433,000
`3.19` `3.20`	State Government Special Revenue	1,884,000	1,884,000
`3.21`	Environmental	145,000	145,000
`3.22`	Remediation	250,000	250,000

3.23Of this appropriation, $65,000 in the first
3.24year and $65,000 in the second year are
3.25from the general fund for transfer to the
3.26commissioner of public safety for a grant to
3.27the Minnesota County Attorneys Association
3.28for prosecutor and law enforcement training.

3.29

Sec. 6. SECRETARY OF STATE

5,193,000

3.30Any funds available in the account
3.31established in Minnesota Statutes, section
3.325.30, pursuant to the Help America Vote Act,
3.33are appropriated for the purposes and uses
3.34authorized by federal law.

4.1
4.2

Sec. 7. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD

653,000

4.3

Sec. 8. INVESTMENT BOARD

132,000

4.4

Sec. 9. ADMINISTRATIVE HEARINGS

7,614,000

7,484,000

`4.5`	Appropriations by Fund
`4.6`		2012	2013
`4.7`	General	364,000	234,000
`4.8` `4.9`	Workers' Compensation	7,250,000	7,250,000

4.10$130,000 in the first year is for the cost
4.11of considering complaints filed under
4.12Minnesota Statutes, section 211B.32. Until
4.13June 30, 2013, the chief administrative
4.14law judge may not make any assessment
4.15against a county or counties under Minnesota
4.16Statutes, section 211B.37. Any amount of
4.17this appropriation that remains unspent at
4.18the end of the biennium must be canceled
4.19to the general account of the state elections
4.20campaign fund. The base for fiscal year 2014
4.21is $130,000, to be available for the biennium,
4.22under the same terms.

4.23
4.24

Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY

4,636,000

4.25During the biennium ending June 30, 2013,
4.26the office must not charge fees to a public
4.27noncommercial educational television
4.28broadcast station for access to the state
4.29information infrastructure.

4.30

Sec. 11. ADMINISTRATION

4.31

Subdivision 1.Total Appropriation

18,023,000

5.1The amounts that may be spent for each
5.2purpose are specified in the following
5.3subdivisions.

5.4

Subd. 2.Government and Citizen Services

14,736,000

5.5

Subd. 3.Administrative Management Support

1,502,000

5.6

Subd. 4.Public Broadcasting

1,785,000

5.7(a) The appropriations under this section are
5.8to the commissioner of administration for the
5.9purposes specified.
5.10(b) $1,002,000 the first year and $1,002,000
5.11the second year are for matching grants for
5.12public television.
5.13(c) $190,000 the first year and $190,000
5.14the second year are for public television
5.15equipment grants. Equipment or matching
5.16grant allocations shall be made after
5.17considering the recommendations of the
5.18Minnesota Public Television Association.
5.19(d) $16,000 the first year and $16,000 the
5.20second year are for grants to the Twin Cities
5.21regional cable channel.
5.22(e) $278,000 the first year and $278,000 the
5.23second year are for community service grants
5.24to public educational radio stations.
5.25(f) $97,000 the first year and $97,000 the
5.26second year are for equipment grants to
5.27public educational radio stations.
5.28(g) The grants in paragraphs (e) and (f)
5.29must be allocated after considering the
5.30recommendations of the Association of
5.31Minnesota Public Educational Radio Stations
5.32under Minnesota Statutes, section 129D.14.
6.1(h) $202,000 the first year and $202,000
6.2the second year are for equipment grants to
6.3Minnesota Public Radio, Inc.
6.4(i) Any unencumbered balance remaining the
6.5first year for grants to public television or
6.6radio stations does not cancel and is available
6.7for the second year.

6.8
6.9
6.10

Sec. 12. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD

308,000

6.11
6.12

Sec. 13. MINNESOTA MANAGEMENT AND
BUDGET

16,727,000

6.13

Sec. 14. REVENUE

6.14

Subdivision 1.Total Appropriation

128,231,000

140,046,000

`6.15`	Appropriations by Fund
`6.16`		2012	2013
`6.17`	General	123,996,000	135,811,000
`6.18`	Health Care Access	1,749,000	1,749,000
`6.19` `6.20`	Highway User Tax Distribution	2,183,000	2,183,000
`6.21`	Environmental	303,000	303,000

6.22The amounts that may be spent for each
6.23purpose are specified in subdivisions 2 and 3.
6.24To the greatest extent possible, the
6.25commissioner must avoid making budget
6.26reductions to compliance activities.

6.27

Subd. 2.Tax System Management

104,991,000

116,806,000

`6.28`	Appropriations by Fund
`6.29`	General	100,756,000	112,571,000
`6.30`	Health Care Access	1,749,000	1,749,000
`6.31` `6.32`	Highway User Tax Distribution	2,183,000	2,183,000
`6.33`	Environmental	303,000	303,000

6.34

Subd. 3.Debt Collection Management

23,240,000

7.1

Sec. 15. GAMBLING CONTROL

2,740,000

7.2These appropriations are from the lawful
7.3gambling regulation account in the special
7.4revenue fund.

7.5

Sec. 16. RACING COMMISSION

899,000

7.6These appropriations are from the racing
7.7and card playing regulation accounts in the
7.8special revenue fund.

7.9

Sec. 17. AMATEUR SPORTS COMMISSION

235,000

7.10
7.11

Sec. 18. COUNCIL ON BLACK
MINNESOTANS

261,000

7.12
7.13

Sec. 19. COUNCIL ON CHICANO/LATINO
AFFAIRS

246,000

7.14
7.15

Sec. 20. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS

227,000

7.16

Sec. 21. INDIAN AFFAIRS COUNCIL

413,000

7.17

Sec. 22. EXPLORE MINNESOTA TOURISM

8,269,000

7.18(a) Of this amount, $12,000 each year is for a
7.19grant to the Upper Minnesota Film Office.
7.20(b)(1) To develop maximum private sector
7.21involvement in tourism, $500,000 the first
7.22year and $500,000 the second year must
7.23be matched by Explore Minnesota Tourism
7.24from nonstate sources. Each $1 of state
7.25incentive must be matched with $3 of private
7.26sector funding. Cash match is defined as
7.27revenue to the state or documented cash
7.28expenditures directly expended to support
7.29Explore Minnesota Tourism programs. Up
7.30to one-half of the private sector contribution
8.1may be in-kind or soft match. The incentive
8.2in the first year shall be based on fiscal
8.3year 2011 private sector contributions. The
8.4incentive in the second year will be based on
8.5fiscal year 2012 private sector contributions.
8.6This incentive is ongoing.
8.7(2) Funding for the marketing grants is
8.8available either year of the biennium.
8.9Unexpended grant funds from the first year
8.10are available in the second year.
8.11(3) Unexpended money from the general
8.12fund appropriations made under this section
8.13does not cancel but must be placed in a
8.14special marketing account for use by Explore
8.15Minnesota Tourism for additional marketing
8.16activities.
8.17(c) $325,000 the first year and $325,000 the
8.18second year are for the Minnesota Film and
8.19TV Board. The appropriation in each year
8.20is available only upon receipt by the board
8.21of $1 in matching contributions of money or
8.22in-kind contributions from nonstate sources
8.23for every $3 provided by this appropriation,
8.24except that each year up to $50,000 is
8.25available on July 1 even if the required
8.26matching contribution has not been received
8.27by that date.

8.28
8.29

Sec. 23. MINNESOTA HISTORICAL
SOCIETY

8.30

Subdivision 1.Total Appropriation

19,764,000

19,662,000

8.31The amounts that may be spent for each
8.32purpose are specified in the following
8.33subdivisions.

8.34

Subd. 2.Education and Outreach

11,109,000

9.1Notwithstanding Minnesota Statutes, section
9.2138.668, the Minnesota Historical Society
9.3may not charge a fee for its general tours at
9.4the Capitol, but may charge fees for special
9.5programs other than general tours.

9.6

Subd. 3.Preservation and Access

8,337,000

9.7

Subd. 4.Fiscal Agent

9.8

(a) Minnesota International Center

38,000

9.9

(b) Minnesota Air National Guard Museum

14,000

-0-

9.10

88,000

-0-

9.11

(d) Farmamerica

112,000

9.12(e) $66,000 the first year and $66,000 the
9.13second year are for a grant to the city of
9.14Eveleth to be used for the support of the
9.15Hockey Hall of Fame Museum provided
9.16that it continues to operate in the city. This
9.17grant is in addition to and must not be
9.18used to supplant funding under Minnesota
9.19Statutes, section 298.28, subdivision 9c. This
9.20appropriation is added to the society's budget
9.21base.

9.22

(f) Balances Forward

9.23Any unencumbered balance remaining in
9.24this subdivision the first year does not cancel
9.25but is available for the second year of the
9.26biennium.

9.27

Subd. 5.Fund Transfer

9.28The Minnesota Historical Society may
9.29reallocate funds appropriated in and between
9.30subdivisions 2 and 3 for any program
9.31purposes and the appropriations are available
9.32in either year of the biennium.

10.1

Sec. 24. BOARD OF THE ARTS

10.2

Subdivision 1.Total Appropriation

6,672,000

10.3The amounts that may be spent for each
10.4purpose are specified in the following
10.5subdivisions.

10.6

Subd. 2.Operations and Services

154,000

10.7

Subd. 3.Grants Program

4,265,000

10.8

Subd. 4.Regional Arts Councils

2,253,000

10.9
10.10

Sec. 25. MINNESOTA HUMANITIES
CENTER

225,000

10.11
10.12

Sec. 26. SCIENCE MUSEUM OF
MINNESOTA

1,009,000

10.13

Sec. 27. TORT CLAIMS

161,000

10.14These appropriations are to be spent by the
10.15commissioner of management and budget
10.16according to Minnesota Statutes, section
10.173.736, subdivision 7. If the appropriation for
10.18either year is insufficient, the appropriation
10.19for the other year is available for it.

10.20
10.21

Sec. 28. MINNESOTA STATE RETIREMENT
SYSTEM

10.22

Subdivision 1.Total Appropriation

472,000

481,000

10.23The amounts that may be spent for each
10.24purpose are specified in the following
10.25subdivisions.
10.26During the biennium ending June 30, 2013,
10.27payments for retirement allowances for
10.28former legislators and surviving spouses
10.29must be made from the legislators retirement
10.30fund created under Minnesota Statutes,
11.1section 3A.03, subdivision 3, and not from
11.2the general fund.

11.3

Subd. 2. Constitutional Officers

472,000

481,000

11.4Under Minnesota Statutes, section 352C.001,
11.5if an appropriation in this section for either
11.6year is insufficient, the appropriation for the
11.7other year is available for it.

11.8

Sec. 29. MERF DIVISION ACCOUNT

22,750,000

11.9These amounts are estimated to be needed
11.10under Minnesota Statutes, section 353.505.

11.11
11.12

Sec. 30. TEACHERS RETIREMENT
ASSOCIATION

15,454,000

11.13The amounts estimated to be needed are as
11.14follows:
11.15(a) Special direct state aid. $12,954,000 the
11.16first year and $12,954,000 the second year
11.17are for special direct state aid authorized
11.18under Minnesota Statutes, section 354A.12,
11.19subdivisions 3a and 3c.
11.20(b) Special direct state matching aid.
11.21$2,500,000 the first year and $2,500,000
11.22the second year are for special direct state
11.23matching aid authorized under Minnesota
11.24Statutes, section 354A.12, subdivision 3b.

11.25
11.26

Sec. 31. ST. PAUL TEACHERS
RETIREMENT FUND

2,827,000

11.27The amounts estimated to be needed for
11.28special direct state aid to first class city
11.29teachers retirement funds authorized under
11.30Minnesota Statutes, section 354A.12,
11.31subdivisions 3a and 3c.

12.1
12.2

Sec. 32. DULUTH TEACHERS
RETIREMENT FUND

346,000

12.3The amounts estimated to be needed for
12.4special direct state aid to first class city
12.5teachers retirement funds authorized under
12.6Minnesota Statutes, section 354A.12,
12.7subdivisions 3a and 3c.

12.8

Sec. 33. STATE LOTTERY

12.9Notwithstanding Minnesota Statutes, section
12.10349A.10, subdivision 3, the operating budget
12.11must not exceed $29,000,000 in fiscal year
12.122012 and $29,000,000 in fiscal year 2013.

12.13
12.14

Sec. 34. GENERAL CONTINGENT
ACCOUNTS

600,000

500,000

`12.15`	Appropriations by Fund
`12.16`		2012	2013
`12.17`	General	100,000	-0-
`12.18` `12.19`	State Government Special Revenue	400,000	400,000
`12.20` `12.21`	Workers' Compensation	100,000	100,000

12.22(a) The appropriations in this section
12.23may only be spent with the approval of
12.24the governor after consultation with the
12.25Legislative Advisory Commission pursuant
12.26to Minnesota Statutes, section 3.30.
12.27(b) If an appropriation in this section for
12.28either year is insufficient, the appropriation
12.29for the other year is available for it.
12.30(c) If a contingent account appropriation
12.31is made in one fiscal year, it should be
12.32considered a biennial appropriation.

12.33    Sec. 35. PROBLEM GAMBLING APPROPRIATION.
13.1$225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from
13.2the lottery prize fund to the Gambling Control Board for a grant to the state affiliate
13.3recognized by the National Council on Problem Gambling. The affiliate must provide
13.4services to increase public awareness of problem gambling, education and training for
13.5individuals and organizations providing effective treatment services to problem gamblers
13.6and their families, and research relating to problem gambling. These services must be
13.7complementary to and not duplicative of the services provided through the problem
13.8gambling program administered by the commissioner of human services. Of this
13.9appropriation, $50,000 in fiscal year 2012 and $50,000 in fiscal year 2013 are contingent
13.10on the contribution of nonstate matching funds. Matching funds may be either cash or
13.11qualifying in-kind contributions. The commissioner of management and budget may
13.12disburse the state portion of the matching funds in increments of $25,000 upon receipt
13.13of a commitment for an equal amount of matching nonstate funds. These are onetime
13.14appropriations.

13.15    Sec. 36. APPROPRIATION; REIMBURSEMENT OF RECOUNT COSTS.
13.16$322,000 is appropriated from the general fund to the secretary of state in fiscal year
13.172011 for the reimbursement of costs of recounts during the 2010 general election, to be
13.18paid to counties consistent with the cost survey of the counties previously conducted
13.19by the secretary of state and for reimbursement to the secretary of state costs in those
13.20recounts already paid by the secretary of state to the counties. This appropriation remains
13.21available until December 31, 2011.
13.22EFFECTIVE DATE.This section is effective the day following final enactment.

13.23    Sec. 37. SAVINGS; APPROPRIATION REDUCTIONS.
13.24(a) The commissioner of management and budget must reduce general fund
13.25appropriations to executive agencies for agency operations for the biennium ending
13.26June 30, 2013, by $94,875,000. The Minnesota State Colleges and Universities is not
13.27an executive agency for purposes of this section. To the greatest extent possible, these
13.28savings must come from the reforms, efficiencies, and cost-savings measures contained in
13.29this act, including:
13.30(1) reduction in the number of full-time equivalent employees;
13.31(2) salary freeze;
13.32(3) elimination of deputy and assistant commissioner positions;
13.33(4) consolidation of responsibilities for executive branch information technology
13.34systems;
14.1(5) efficiencies and cost savings in contracting; and
14.2(6) verification of dependent eligibility for state group insurance coverage.
14.3(b) The commissioner of management and budget must determine savings to funds
14.4other than the general funds resulting from the reforms, efficiencies, and cost-savings
14.5measures in this act. To the extent permitted by law, the commissioner must reduce
14.6appropriations from those other funds by the amount of those savings, and transfer the
14.7amount of the reductions to the general fund.

14.8    Sec. 38. ENTERPRISE REAL PROPERTY CONTRIBUTIONS.
14.9On or before June 1, 2011, the commissioner of administration shall determine
14.10the amount to be contributed by each executive agency to maintain the enterprise real
14.11property technology system for the fiscal years 2012 and 2013. On or before June 15,
14.122011, each executive agency shall enter into an agreement with the commissioner of
14.13administration setting forth the manner in which the executive agency shall make its
14.14contribution to the enterprise real property system, either from uncommitted fiscal year
14.152011 funds or by contributing from fiscal year 2012 and fiscal year 2013 funds to the real
14.16property enterprise system and services account to fund the total amount of $399,000 for
14.17the biennium. Funds contributed under this section must be credited to the enterprise real
14.18property technology system and services account.
14.19EFFECTIVE DATE.This section is effective the day following final enactment.

14.20ARTICLE 2

14.21MILITARY AFFAIRS AND VETERANS AFFAIRS

14.22

Section 1. APPROPRIATIONS.

14.23The sums shown in the columns marked "Appropriations" are appropriated to the
14.24agencies and for the purposes specified in this article. The appropriations are from the
14.25general fund and are available for the fiscal years indicated for each purpose. The figures
14.26"2012" and "2013" used in this article mean that the appropriations listed under them are
14.27available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The
14.28first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is
14.29fiscal years 2012 and 2013.

`14.30`	APPROPRIATIONS
`14.31`	Available for the Year
`14.32`	Ending June 30
`14.33`		2012	2013

15.1

Sec. 2. MILITARY AFFAIRS

15.2

Subdivision 1.Total Appropriation

22,371,000

19,371,000

15.3The amounts that may be spent for each
15.4purpose are specified in the following
15.5subdivisions.

15.6

Subd. 2.Maintenance of Training Facilities

6,660,000

15.7

Subd. 3.General Support

2,363,000

15.8

Subd. 4.Enlistment Incentives

13,348,000

10,348,000

15.9$3,000,000 the first year is for additional
15.10costs of enlistment incentives.
15.11If appropriations for either year of the
15.12biennium are insufficient, the appropriation
15.13from the other year is available. The
15.14appropriations for enlistment incentives are
15.15available until expended.

15.16

Sec. 3. VETERANS AFFAIRS

15.17

Subdivision 1.Total Appropriation

57,695,000

58,595,000

15.18The amounts that may be spent for each
15.19purpose are specified in the following
15.20subdivisions.

15.21

Subd. 2.Veterans Services

13,779,000

15.22$....... each year is for a grant to the
15.23Minnesota Assistance Council for Veterans.
15.24This appropriation is in addition to the
15.25existing agency base appropriation and must
15.26be added to the agency appropriation base
15.27for fiscal years 2014 and later.
15.28$100,000 each year is for the costs of
15.29administering the Minnesota GI Bill program
15.30under Minnesota Statutes, section 197.791.
16.1$353,000 each year is for grants to the
16.2following congressionally chartered veterans
16.3service organizations, as designated by the
16.4commissioner: Disabled American Veterans,
16.5Military Order of the Purple Heart, the
16.6American Legion, Veterans of Foreign Wars,
16.7Vietnam Veterans of America, AMVETS,
16.8and Paralyzed Veterans of America. This
16.9funding must be allocated in direct proportion
16.10to the funding currently being provided by
16.11the commissioner to these organizations.

16.12

Subd. 3.Veterans Homes

43,916,000

44,816,000

16.13Veterans Homes Special Revenue Account.
16.14The general fund appropriations made to
16.15the department may be transferred to a
16.16veterans homes special revenue account in
16.17the special revenue fund in the same manner
16.18as other receipts are deposited according
16.19to Minnesota Statutes, section 198.34, and
16.20are appropriated to the department for the
16.21operation of veterans homes facilities and
16.22programs.
16.23Fergus Falls Veterans Home. Of the
16.24general fund appropriation, $738,000 in
16.25fiscal year 2013 is for operation of a new
16.2621-bed specialty care/Alzheimer's unit at the
16.27Minnesota Veterans Home in Fergus Falls.
16.28Base funding for this program is $842,000 in
16.29fiscal years 2014 and 2015.
16.30Minneapolis Veterans Home. Of the
16.31general fund appropriation, $162,000 in
16.32fiscal year 2013 is for operation of a new
16.33adult day care program at the Minnesota
16.34Veterans Home in Minneapolis. Base
17.1funding for this program is $232,000 in fiscal
17.2years 2014 and 2015.
17.3Veterans Homes Service Redesign.
17.4$551,000 in fiscal year 2012 and $801,000 in
17.5fiscal year 2013, generated from additional
17.6nongeneral fund revenue and cost savings
17.7from operating efficiencies, are to be used to
17.8support the operational needs of the five state
17.9veterans homes.

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

17.11

Sec. 4. VETERANS HOMES

17.12Of the appropriation in Laws 2009, chapter
17.1394, article 3, section 2, subdivision 3, or from
17.14funds carried forward from fiscal year 2009:
17.15(1) ~~$1,000,000~~ $800,000 in fiscal year 2011
17.16is for operational expenses related to the
17.1721-bed addition at the Fergus Falls Veterans
17.18Home; and
17.19(2) ~~$113,000~~ $313,000 in fiscal year 2011 is
17.20for start-up expenses related to the opening of
17.21an adult daycare facility at the Minneapolis
17.22Veterans Home.
17.23An appropriation in this section that is
17.24unspent at the end of fiscal year 2011 carries
17.25forward and is available in fiscal year 2012.
17.26EFFECTIVE DATE.This section is effective the day following final enactment.

17.27 Sec. 5. REPEALER.
17.28Minnesota Statutes 2010, section 197.585, subdivision 5, is repealed.
17.29EFFECTIVE DATE.This section is effective the day following final enactment.

18.1ARTICLE 3

18.2STATE GOVERNMENT OPERATIONS

18.3    Section 1. Minnesota Statutes 2010, section 3.85, subdivision 3, is amended to read:
18.4    Subd. 3. Membership. The commission consists of ~~five~~ seven members of the
18.5senate appointed by the Subcommittee on Committees of the Committee on Rules and
18.6Administration and ~~five~~ seven members of the house of representatives appointed by
18.7the speaker. No more than five members from each chamber may be from the majority
18.8caucus in that chamber. Members shall be appointed at the commencement of each regular
18.9session of the legislature for a two-year term beginning January 16 of the first year of the
18.10regular session. Members continue to serve until their successors are appointed. Vacancies
18.11that occur while the legislature is in session shall be filled like regular appointments. If the
18.12legislature is not in session, senate vacancies shall be filled by the last Subcommittee on
18.13Committees of the senate Committee on Rules and Administration or other appointing
18.14authority designated by the senate rules, and house of representatives vacancies shall be
18.15filled by the last speaker of the house, or if the speaker is not available, by the last chair of
18.16the house of representatives Rules Committee.
18.17EFFECTIVE DATE.This section is effective the day following final enactment.
18.18Within ten days of the effective date of this section, the appointing authorities must
18.19appoint additional members to the commission, as required by this section.

18.20    Sec. 2. [3D.01] SHORT TITLE.
18.21This chapter may be cited as the "Minnesota Sunset Act."

18.22    Sec. 3. [3D.02] DEFINITIONS.
18.23    Subdivision 1. Scope. The definitions in this section apply to this chapter.
18.24    Subd. 2. Advisory committee. "Advisory committee" means a committee, council,
18.25commission, or other entity created under state law whose primary function is to advise
18.26a state agency.
18.27    Subd. 3. Commission. "Commission" means the Sunset Advisory Commission.
18.28    Subd. 4. State agency. "State agency" means an agency expressly made subject
18.29to this chapter.

18.30    Sec. 4. [3D.03] SUNSET ADVISORY COMMISSION.
18.31    Subdivision 1. Membership. (a) The Sunset Advisory Commission consists of 12
18.32members appointed as follows:
19.1(1) five senators and one public member, appointed according to the rules of the
19.2senate, with no more than three senators from the majority caucus; and
19.3(2) five members of the house of representatives and one public member, appointed
19.4by the speaker of the house, with no more than three of the house members from the
19.5majority caucus.
19.6(b) The first members of the Sunset Advisory Commission must be appointed before
19.7September 1, 2011, for terms ending the first Monday in January 2013.
19.8    Subd. 2. Public member restrictions. An individual is not eligible for appointment
19.9as a public member if the individual or the individual's spouse is:
19.10(1) regulated by a state agency that the commission will review during the term for
19.11which the individual would serve;
19.12(2) employed by, participates in the management of, or directly or indirectly has
19.13more than a ten percent interest in a business entity or other organization regulated by a
19.14state agency the commission will review during the term for which the individual would
19.15serve; or
19.16(3) required to register as a lobbyist under chapter 10A because of the person's
19.17activities for compensation on behalf of a profession or entity related to the operation of
19.18an agency under review.
19.19    Subd. 3. Removal. (a) It is a ground for removal of a public member from the
19.20commission if the member does not have the qualifications required by subdivision 2
19.21for appointment to the commission at the time of appointment or does not maintain the
19.22qualifications while serving on the commission. The validity of the commission's action is
19.23not affected by the fact that it was taken when a ground for removal of a public member
19.24from the commission existed.
19.25(b) Except as provided in paragraph (a), a public member may be removed only as
19.26provided in section 15.0575, subdivision 4.
19.27    Subd. 4. Terms. Legislative members serve at the pleasure of the appointing
19.28authority. Public members serve two-year terms expiring the first Monday in January of
19.29each odd-numbered year.
19.30    Subd. 5. Limits. Members are subject to the following restrictions:
19.31(1) after an individual serves four years on the commission, the individual is not
19.32eligible for appointment to another term or part of a term;
19.33(2) a legislative member who serves a full term may not be appointed to an
19.34immediately succeeding term; and
20.1(3) a public member may not serve consecutive terms, and, for purposes of this
20.2prohibition, a member is considered to have served a term only if the member has served
20.3more than one-half of the term.
20.4    Subd. 6. Appointments. Appointments must be made before the second Monday of
20.5January of each odd-numbered year.
20.6    Subd. 7. Legislative members. If a legislative member ceases to be a member
20.7of the legislative body from which the member was appointed, the member vacates
20.8membership on the commission.
20.9    Subd. 8. Vacancies. If a vacancy occurs, the appointing authority shall appoint a
20.10person to serve for the remainder of the unexpired term in the same manner as the original
20.11appointment.
20.12    Subd. 9. Officers. The commission shall have a chair and vice-chair as presiding
20.13officers.
20.14    Subd. 10. Quorum; voting. Seven members of the commission constitute a
20.15quorum. A final action or recommendation may not be made unless approved by a
20.16recorded vote of at least seven members. All other actions by the commission shall be
20.17decided by a majority of the members present and voting.
20.18    Subd. 11. Compensation. Each public member shall be reimbursed for expenses
20.19as provided in section 15.0575. Compensation for legislators is as determined by the
20.20members' legislative chamber.

20.21    Sec. 5. [3D.04] STAFF.
20.22The Legislative Coordinating Commission shall provide staff and administrative
20.23services for the commission.

20.24    Sec. 6. [3D.05] RULES.
20.25The commission may adopt rules necessary to carry out this chapter.

20.26    Sec. 7. [3D.06] AGENCY REPORT TO COMMISSION.
20.27Before September 1 of the odd-numbered year before the year in which a state
20.28agency is sunset, the agency commissioner shall report to the commission:
20.29(1) information regarding the application to the agency of the criteria in section
20.303D.10;
20.31(2) a priority-based budget for the agency;
20.32(3) an inventory of all boards, commissions, committees, and other entities related
20.33to the agency; and
21.1(4) any other information that the agency commissioner considers appropriate or that
21.2is requested by the commission.

21.3    Sec. 8. [3D.07] COMMISSION DUTIES.
21.4Before January 1 of the year in which a state agency subject to this chapter and its
21.5advisory committees are sunset, the commission shall:
21.6(1) review and take action necessary to verify the reports submitted by the agency;
21.7and
21.8(2) conduct a review of the agency based on the criteria provided in section 3D.10
21.9and prepare a written report.

21.10    Sec. 9. [3D.08] PUBLIC HEARINGS.
21.11Before February 1 of the year a state agency subject to this chapter and its advisory
21.12committees are sunset, the commission shall conduct public hearings concerning but not
21.13limited to the application to the agency of the criteria provided in section 3D.10.

21.14    Sec. 10. [3D.09] COMMISSION REPORT.
21.15By February 1 of each even-numbered year, the commission shall present to the
21.16legislature and the governor a report on the agencies and advisory committees reviewed.
21.17In the report the commission shall include:
21.18(1) its findings regarding the criteria prescribed by section 3D.10;
21.19(2) its recommendations based on the matters prescribed by section 3D.11; and
21.20(3) other information the commission considers necessary for a complete review
21.21of the agency.

21.22    Sec. 11. [3D.10] CRITERIA FOR REVIEW.
21.23The commission and its staff shall consider the following criteria in determining
21.24whether a public need exists for the continuation of a state agency or its advisory
21.25committees or for the performance of the functions of the agency or its advisory
21.26committees:
21.27(1) the efficiency and effectiveness with which the agency or the advisory committee
21.28operates;
21.29(2) an identification of the mission, goals, and objectives intended for the agency or
21.30advisory committee and of the problem or need that the agency or advisory committee
21.31was intended to address and the extent to which the mission, goals, and objectives have
21.32been achieved and the problem or need has been addressed;
22.1(3) an identification of any activities of the agency in addition to those granted by
22.2statute and of the authority for those activities and the extent to which those activities
22.3are needed;
22.4(4) an assessment of authority of the agency relating to fees, inspections,
22.5enforcement, and penalties;
22.6(5) whether less restrictive or alternative methods of performing any function that
22.7the agency performs could adequately protect or provide service to the public;
22.8(6) the extent to which the jurisdiction of the agency and the programs administered
22.9by the agency overlap or duplicate those of other agencies, the extent to which the agency
22.10coordinates with those agencies, and the extent to which the programs administered by the
22.11agency can be consolidated with the programs of other state agencies;
22.12(7) the promptness and effectiveness with which the agency addresses complaints
22.13concerning entities or other persons affected by the agency, including an assessment of the
22.14agency's administrative hearings process;
22.15(8) an assessment of the agency's rulemaking process and the extent to which the
22.16agency has encouraged participation by the public in making its rules and decisions and
22.17the extent to which the public participation has resulted in rules that benefit the public;
22.18(9) the extent to which the agency has complied with federal and state laws and
22.19applicable rules regarding equality of employment opportunity and the rights and privacy
22.20of individuals, and state law and applicable rules of any state agency regarding purchasing
22.21guidelines and programs for historically underutilized businesses;
22.22(10) the extent to which the agency issues and enforces rules relating to potential
22.23conflicts of interest of its employees;
22.24(11) the extent to which the agency complies with chapter 13 and follows records
22.25management practices that enable the agency to respond efficiently to requests for public
22.26information; and
22.27(12) the effect of federal intervention or loss of federal funds if the agency is
22.28abolished.

22.29    Sec. 12. [3D.11] RECOMMENDATIONS.
22.30(a) In its report on a state agency, the commission shall:
22.31(1) make recommendations on the abolition, continuation, or reorganization of each
22.32affected state agency and its advisory committees and on the need for the performance of
22.33the functions of the agency and its advisory committees;
23.1(2) make recommendations on the consolidation, transfer, or reorganization of
23.2programs within state agencies not under review when the programs duplicate functions
23.3performed in agencies under review; and
23.4(3) make recommendations to improve the operations of the agency, its policy body,
23.5and its advisory committees, including management recommendations that do not require
23.6a change in the agency's enabling statute.
23.7(b) The commission shall include the estimated fiscal impact of its recommendations
23.8and may recommend appropriation levels for certain programs to improve the operations
23.9of the state agency.
23.10(c) The commission shall have drafts of legislation prepared to carry out the
23.11commission's recommendations under this section, including legislation necessary
23.12to continue the existence of agencies that would otherwise sunset if the commission
23.13recommends continuation of an agency.
23.14(d) After the legislature acts on the report under section 3D.09, the commission shall
23.15present to the legislative auditor the commission's recommendations that do not require
23.16a statutory change to be put into effect. Subject to the legislative audit commission's
23.17approval, the legislative auditor may examine the recommendations and include as part
23.18of the next audit of the agency a report on whether the agency has implemented the
23.19recommendations and, if so, in what manner.

23.20    Sec. 13. [3D.12] MONITORING OF RECOMMENDATIONS.
23.21During each legislative session, the staff of the commission shall monitor legislation
23.22affecting agencies that have undergone sunset review and shall periodically report
23.23to the members of the commission on proposed changes that would modify prior
23.24recommendations of the commission.

23.25    Sec. 14. [3D.13] REVIEW OF ADVISORY COMMITTEES.
23.26An advisory committee, the primary function of which is to advise a particular state
23.27agency, is subject to sunset on the date set for sunset of the agency unless the advisory
23.28committee is expressly continued by law.

23.29    Sec. 15. [3D.14] CONTINUATION BY LAW.
23.30During the regular session immediately before the sunset of a state agency or an
23.31advisory committee that is subject to this chapter, the legislature may enact legislation
23.32to continue the agency or advisory committee for a period not to exceed 12 years. This
23.33chapter does not prohibit the legislature from:
24.1(1) terminating a state agency or advisory committee subject to this chapter at a date
24.2earlier than that provided in this chapter; or
24.3(2) considering any other legislation relative to a state agency or advisory committee
24.4subject to this chapter.

24.5    Sec. 16. [3D.15] PROCEDURE AFTER TERMINATION.
24.6    Subdivision 1. Termination. Unless otherwise provided by law:
24.7(1) if after sunset review a state agency is abolished, the agency may continue in
24.8existence until June 30 of the following year to conclude its business;
24.9(2) abolishment does not reduce or otherwise limit the powers and authority of the
24.10state agency during the concluding year;
24.11(3) a state agency is terminated and shall cease all activities at the expiration of
24.12the one-year period; and
24.13(4) all rules that have been adopted by the state agency expire at the expiration of
24.14the one-year period.
24.15    Subd. 2. Funds of abolished agency or advisory committee. (a) Any unobligated
24.16and unexpended appropriations of an abolished agency or advisory committee lapse on
24.17June 30 of the year after abolishment.
24.18(b) Except as provided by subdivision 4 or as otherwise provided by law, all money
24.19in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
24.20year after abolishment is transferred to the general fund. The part of the law dedicating
24.21the money to a specific fund of an abolished agency becomes void on June 30 of the year
24.22after abolishment.
24.23    Subd. 3. Property and records of abolished agency or advisory committee.
24.24Unless the governor designates an appropriate state agency as prescribed by subdivision 4,
24.25property and records in the custody of an abolished state agency or advisory committee
24.26on June 30 of the year after abolishment must be transferred to the commissioner of
24.27administration. If the governor designates an appropriate state agency, the property and
24.28records must be transferred to the designated state agency.
24.29    Subd. 4. Continuing obligations. (a) The legislature recognizes the state's
24.30continuing obligation to pay bonded indebtedness and all other obligations, including
24.31lease, contract, and other written obligations, incurred by a state agency or advisory
24.32committee abolished under this chapter, and this chapter does not impair or impede the
24.33payment of bonded indebtedness and all other obligations, including lease, contract, and
24.34other written obligations, in accordance with their terms. If an abolished state agency or
24.35advisory committee has outstanding bonded indebtedness or other outstanding obligations,
25.1including lease, contract, and other written obligations, the bonds and all other obligations,
25.2including lease, contract, and other written obligations, remain valid and enforceable in
25.3accordance with their terms and subject to all applicable terms and conditions of the laws
25.4and proceedings authorizing the bonds and all other obligations, including lease, contract,
25.5and other written obligations.
25.6(b) The governor shall designate an appropriate state agency that shall continue to
25.7carry out all covenants contained in the bonds and in all other obligations, including lease,
25.8contract, and other written obligations, and the proceedings authorizing them, including
25.9the issuance of bonds, and the performance of all other obligations, including lease,
25.10contract, and other written obligations, to complete the construction of projects or the
25.11performance of other obligations, including lease, contract, and other written obligations.
25.12(c) The designated state agency shall provide payment from the sources of payment
25.13of the bonds in accordance with the terms of the bonds and shall provide payment from
25.14the sources of payment of all other obligations, including lease, contract, and other written
25.15obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
25.16until the bonds and interest on the bonds are paid in full and all other obligations,
25.17including lease, contract, and other written obligations, are performed and paid in full.
25.18If the proceedings so provide, all funds established by laws or proceedings authorizing
25.19the bonds or authorizing other obligations, including lease, contract, and other written
25.20obligations, must remain with the comptroller or the previously designated trustees. If the
25.21proceedings do not provide that the funds remain with the comptroller or the previously
25.22designated trustees, the funds must be transferred to the designated state agency.

25.23    Sec. 17. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
25.24The commission may request the assistance of state agencies and officers. When
25.25assistance is requested, a state agency or officer shall assist the commission. In carrying
25.26out its functions under this chapter, the commission or its designated staff member may
25.27inspect the records, documents, and files of any state agency.

25.28    Sec. 18. [3D.17] RELOCATION OF EMPLOYEES.
25.29If an employee is displaced because a state agency or its advisory committee is
25.30abolished or reorganized, the state agency shall make a reasonable effort to relocate the
25.31displaced employee.

25.32    Sec. 19. [3D.18] SAVING PROVISION.
26.1Except as otherwise expressly provided, abolition of a state agency does not affect
26.2rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
26.3arose, or proceedings that were begun before the effective date of the abolition.

26.4    Sec. 20. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
26.5AGENCY.
26.6Each bill filed in a house of the legislature that would create a new state agency or
26.7a new advisory committee to a state agency shall be reviewed by the commission. The
26.8commission shall review the bill to determine if:
26.9(1) the proposed functions of the agency or committee could be administered by one
26.10or more existing state agencies or advisory committees;
26.11(2) the form of regulation, if any, proposed by the bill is the least restrictive form of
26.12regulation that will adequately protect the public;
26.13(3) the bill provides for adequate public input regarding any regulatory function
26.14proposed by the bill; and
26.15(4) the bill provides for adequate protection against conflicts of interest within
26.16the agency or committee.

26.17    Sec. 21. [3D.20] GIFTS AND GRANTS.
26.18The commission may accept gifts, grants, and donations from any organization
26.19described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding
26.20any activity under this chapter. All gifts, grants, and donations must be accepted in an
26.21open meeting by a majority of the voting members of the commission and reported in the
26.22public record of the commission with the name of the donor and purpose of the gift, grant,
26.23or donation. Money received under this section is appropriated to the commission.

26.24    Sec. 22. [3D.21] EXPIRATION.
26.25    Subdivision 1. Group 1. The following agencies are sunset and expire on June
26.2630, 2012: Department of Health, Department of Human Rights, Department of Human
26.27Services, all health-related licensing boards listed in section 214.01, Council on Affairs
26.28of Chicano/Latino People, Council on Black Minnesotans, Council on Asian-Pacific
26.29Minnesotans, Indian Affairs Council, Council on Disabilities, and all advisory groups
26.30associated with these agencies.
26.31    Subd. 2. Group 2. The following agencies are sunset and expire on June 30, 2014:
26.32Department of Education, Board of Teaching, Minnesota Office of Higher Education, and
26.33all advisory groups associated with these agencies.
27.1    Subd. 3. Group 3. The following agencies are sunset and expire on June 30, 2016:
27.2Department of Commerce, Department of Employment and Economic Development,
27.3Department of Labor and Industry, all non-health-related licensing boards listed in
27.4section 214.01 except as otherwise provided in this section, Explore Minnesota Tourism,
27.5Public Utilities Commission, Iron Range Resources and Rehabilitation Board, Bureau of
27.6Mediation Services, Combative Sports Commission, Amateur Sports Commission, and all
27.7advisory groups associated with these agencies.
27.8    Subd. 4. Group 4. The following agencies are sunset and expire on June 30, 2018:
27.9Department of Corrections, Department of Public Safety, Department of Transportation,
27.10Peace Officer Standards and Training Board, Corrections Ombudsman, and all advisory
27.11groups associated with these agencies.
27.12    Subd. 5. Group 5. The following agencies are sunset and expire on June 30, 2020:
27.13Department of Agriculture, Department of Natural Resources, Pollution Control Agency,
27.14Board of Animal Health, Board of Water and Soil Resources, and all advisory groups
27.15associated with these agencies.
27.16    Subd. 6. Group 6. The following agencies are sunset and expire on June 30, 2022:
27.17Department of Administration, Department of Management and Budget, Department of
27.18Military Affairs, Department of Revenue, Department of Veterans Affairs, Arts Board,
27.19Minnesota Zoo, Office of Administrative Hearings, Campaign Finance and Public
27.20Disclosure Board, Capitol Area Architectural and Planning Board, Office of Enterprise
27.21Technology, Minnesota Racing Commission, and all advisory groups associated with
27.22these agencies.
27.23    Subd. 7. Continuation. Following sunset review of an agency, the legislature may
27.24act within the same legislative session in which the sunset report was received on Sunset
27.25Advisory Commission recommendations to continue or reorganize the agency.
27.26    Subd. 8. Other groups. The commission may review, under the criteria in
27.27section 3D.10, and propose to the legislature an expiration date for any agency, board,
27.28commission, or program not listed in this section.

27.29    Sec. 23. Minnesota Statutes 2010, section 6.48, is amended to read:
27.306.48 EXAMINATION OF COUNTIES; COST, FEES.
27.31(a) All the powers and duties conferred and imposed upon the state auditor shall
27.32be exercised and performed by the state auditor in respect to the offices, institutions,
27.33public property, and improvements of several counties of the state. At least once in each
27.34year, if funds and personnel permit, the state auditor may visit, without previous notice,
27.35each county and make a thorough examination of all accounts and records relating to the
28.1receipt and disbursement of the public funds and the custody of the public funds and
28.2other property. If the audit is performed by a private certified public accountant, the state
28.3auditor may require additional information from the private certified public accountant as
28.4the state auditor deems in the public interest. The state auditor may accept the audit or
28.5make additional examinations as the state auditor deems to be in the public interest. The
28.6state auditor shall prescribe and install systems of accounts and financial reports that shall
28.7be uniform, so far as practicable, for the same class of offices. A copy of the report of
28.8such examination shall be filed and be subject to public inspection in the office of the state
28.9auditor and another copy in the office of the auditor of the county thus examined. The state
28.10auditor may accept the records and audit, or any part thereof, of the Department of Human
28.11Services in lieu of examination of the county social welfare funds, if such audit has been
28.12made within any period covered by the state auditor's audit of the other records of the
28.13county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
28.14in any office of such county, such report shall be filed with the county attorney of the
28.15county, and the county attorney shall institute such civil and criminal proceedings as the
28.16law and the protection of the public interests shall require.
28.17(b) The county receiving any examination shall pay to the state general fund,
28.18notwithstanding the provisions of section 16A.125, the total cost and expenses of such
28.19examinations, including the salaries paid to the examiners while actually engaged in
28.20making such examination. The state auditor on deeming it advisable may bill counties,
28.21having a population of 200,000 or over, monthly for services rendered and the officials
28.22responsible for approving and paying claims shall cause said bill to be promptly paid. The
28.23general fund shall be credited with all collections made for any such examinations.
28.24(c) Notwithstanding paragraph (a), a county may provide for an audit to be
28.25performed by a certified public accountant firm meeting the requirements of section
28.26326A.05. The audit performed under this paragraph must meet the standards and be in the
28.27form required by the state auditor. The state auditor may require additional information
28.28from the certified public accountant firm as the state auditor deems in the public interest,
28.29but the state auditor must accept the audit unless the state auditor determines that it does
28.30not meet recognized industry auditing standards or is not in the form required by the state
28.31auditor. A county audited by a certified public accountant firm cannot be required to pay
28.32to the state general fund any costs for state auditor services.

28.33    Sec. 24. Minnesota Statutes 2010, section 15.06, subdivision 8, is amended to read:
28.34    Subd. 8. Number of deputy commissioners; no assistant commissioners. ~~Unless~~
28.35~~specifically authorized by statute, other than section~~ ~~43A.08, subdivision 2~~ Except for
29.1the Department of Veterans Affairs, no department or agency specified in subdivision 1
29.2shall have more than one deputy commissioner. No department or agency specified in
29.3subdivision 1 may employ an assistant commissioner.

29.4    Sec. 25. [15.062] COST-EFFECTIVE PROVISION OF SERVICES.
29.5(a) The head or governing board of each state department or agency, including the
29.6Minnesota state colleges and universities, must carry out the agency's powers and duties
29.7in the most cost-effective manner possible. The agency head or governing board must
29.8determine if the most cost-effective manner of carrying out each of the agency's powers
29.9and duties is to hire state employees or to contract with outside sources.
29.10(b) If an agency decides to seek an outside vendor to perform work currently done
29.11by state employees, the agency must permit groups of state employees to compete for the
29.12business by submitting responses to the agency's solicitation documents. Notwithstanding
29.13section 16A.127 or any other law to the contrary, no statewide or agency indirect costs
29.14may be assessed to a group of agency employees with respect to work performed under
29.15a contract awarded to a group of employees under this section. This section supersedes
29.16any provision of law preventing a state agency from entering into a contract with a state
29.17employee.

29.18    Sec. 26. [15.76] SAVI PROGRAM.
29.19    Subdivision 1. Program established. The state agency value initiative (SAVI)
29.20program is established to encourage state agencies to identify cost-effective and efficiency
29.21measures in agency programs and operations that result in cost savings for the state. All
29.22state agencies, including Minnesota State Colleges and Universities, may participate in
29.23this program.
29.24    Subd. 2. Retained savings. (a) In order to encourage innovation and creative
29.25cost savings by state employees, upon approval of the commissioner of management
29.26and budget, 50 percent of any appropriations for agency operations that remain unspent
29.27at the end of a biennium because of unanticipated innovation, efficiencies, or creative
29.28cost-savings may be carried forward and retained by the agency to fund specific agency
29.29proposals or projects. Agencies choosing to spend retained savings funds must ensure that
29.30project expenditures do not create future obligations beyond the amounts available from
29.31the retained savings. The retained savings must be used only to fund projects that directly
29.32support the agency's mission. This section does not restrict authority granted by other law
29.33to carry forward money for a different period or for different purposes.
29.34(b) This section supersedes any contrary provision of section 16A.28.
30.1    Subd. 3. Special peer review panel; review process. (a) Each participating agency
30.2must organize a peer review panel that will determine which proposal or project receives
30.3funding from the SAVI program. The peer review panel must be comprised of department
30.4employees who are credited with cost-savings initiatives and department managers. The
30.5ratio between managers and department employees must be balanced.
30.6(b) An agency may spend money for a project recommended for funding by the
30.7peer review panel after:
30.8(1) the agency has posted notice of spending for the proposed project on the agency
30.9Web site for at least 30 days; and
30.10(2) the commissioner of management and budget has approved spending money
30.11from the SAVI account for the project.
30.12(c) Before approving a project, the commissioner of management and budget
30.13must submit the request to the Legislative Advisory Commission for its review and
30.14recommendation. Upon receiving a request from the commissioner, the Legislative
30.15Advisory Commission shall post notice of the request on a legislative Web site for at least
30.1630 days. Failure of the commission to make a recommendation within this 30-day period
30.17is considered a negative recommendation. A recommendation of the commission must be
30.18made at a meeting of the commission unless a written recommendation is signed by all
30.19the members entitled to vote on the item.
30.20    Subd. 4. SAVI-dedicated account. Each agency that participates in the SAVI
30.21program shall have a SAVI-dedicated account in the special revenue fund, or other
30.22appropriate fund as determined by the commissioner of management and budget, into
30.23which the agency's savings are deposited. The agency will manage and review projects
30.24that are funded from this account. Money in the account is appropriated to the participating
30.25agency for purposes authorized by this section.
30.26    Subd. 5. Expiration. This section expires June 30, 2018.
30.27EFFECTIVE DATE.This section is effective June 30, 2013, and first applies to
30.28funds to be carried forward from the biennium ending June 30, 2013, to the biennium
30.29beginning July 1, 2013.

30.30    Sec. 27. [15B.055] PUBLIC ACCESS TO PARKING SPACES.
30.31To provide the public with greater access to legislative proceedings, all parking
30.32spaces on Aurora Avenue in front of the Capitol building must be reserved for the public.
30.33Revenue derived from public parking in these spaces must be deposited in the general fund.

30.34    Sec. 28. Minnesota Statutes 2010, section 16A.10, subdivision 1a, is amended to read:
31.1    Subd. 1a. Purpose of performance data. Performance data shall be presented in
31.2the budget proposal to:
31.3(1) provide information so that the legislature can determine the extent to which
31.4state programs and activities are successful;
31.5(2) encourage agencies to develop clear and measurable goals and objectives for
31.6their programs and activities; and
31.7(3) strengthen accountability to Minnesotans by providing a record of state
31.8government's performance in providing effective and efficient services.

31.9    Sec. 29. Minnesota Statutes 2010, section 16A.10, subdivision 1b, is amended to read:
31.10    Subd. 1b. Performance data format. (a) As part of the budget proposal, agencies
31.11shall:
31.12(1) describe the goals and objectives of each agency program and activity; and
31.13(2) present performance data that measures the performance of programs and
31.14activities in meeting ~~program~~ goals and objectives.
31.15(b) Measures reported must be outcome-based and objective, and may include
31.16indicators of outputs, efficiency, ~~outcomes,~~ and other measures relevant to understanding
31.17each program and activity.
31.18(c) Agencies shall present as much historical information as needed to understand
31.19major trends and shall set targets for future performance issues ~~where feasible and~~
31.20~~appropriate~~. The information shall appropriately highlight agency performance issues that
31.21would assist legislative review and decision making.
31.22(d) For purposes of this subdivision, subdivision 1a, and section 16A.106, the terms
31.23"program" and "activity" are used in the same manner as the terms are used in state
31.24budgeting. However, the commissioner may authorize an agency to define these terms in a
31.25different manner if that allows for a more effective presentation of performance data.

31.26    Sec. 30. Minnesota Statutes 2010, section 16A.10, subdivision 1c, is amended to read:
31.27    Subd. 1c. Performance measures for change items. For each change item in the
31.28budget proposal requesting new or increased funding, the budget document must present
31.29proposed performance measures that can be used to determine if the new or increased
31.30funding is accomplishing its goals. To the extent possible, each budget change item
31.31must identify relevant Minnesota Milestones and other statewide goals and indicators
31.32related to the proposed initiative. ~~The commissioner must report to the Subcommittee on~~
31.33~~Government Accountability established under section~~ ~~3.885, subdivision 10, regarding the~~
32.1~~format to be used for the presentation and selection of Minnesota Milestones and other~~
32.2~~statewide goals and indicators.~~

32.3    Sec. 31. Minnesota Statutes 2010, section 16A.103, subdivision 1a, is amended to read:
32.4    Subd. 1a. Forecast parameters. The forecast must assume the continuation of
32.5current laws and reasonable estimates of projected growth in the national and state
32.6economies and affected populations. Revenue must be estimated for all sources provided
32.7for in current law. Expenditures must be estimated for all obligations imposed by law and
32.8those projected to occur as a result of variables outside the control of the legislature.
32.9Expenditures for the current biennium must be based on actual appropriations or, for
32.10forecasted programs, the amount needed to fund the formula in law. The base for
32.11expenditures projections for the next biennium is the amount appropriated in the second
32.12year of the current biennium, except as provided by other law, or, for forecasted programs,
32.13the amount needed to fund the formula in law. Expenditure estimates must not include an
32.14allowance for inflation.

32.15    Sec. 32. [16A.106] ZERO-BASED BUDGETING PRINCIPLES.
32.16(a) The detailed budget presented to the legislature must include:
32.17(1) a description of each budget activity for which the agency or entity receives
32.18an appropriation in the current biennium or for which the agency or entity requests an
32.19appropriation in the next biennium;
32.20(2) for each budget activity, three alternative funding levels or alternative ways of
32.21performing the budget activity, a summary of the priorities that would be accomplished
32.22within each level, and the additional increments of value that would be added by the
32.23higher funding levels compared to what would be accomplished if there were no funding
32.24for the activity; and
32.25(3) for each budget activity, performance data as specified in section 16A.10,
32.26subdivision 1b, the predicted effect of the three alternative funding levels on future
32.27performance, and also one or more measures of cost efficiency and effectiveness of
32.28program delivery, which must include comparisons to other states or entities with similar
32.29programs.
32.30(b) The commissioner's budget preparation guidelines and instructions must contain
32.31requirements, deadlines, and technical assistance to facilitate implementation of this
32.32section. After consultation with the legislative commission on planning and fiscal policy,
32.33the commissioner's instructions may establish parameters for the three alternative funding
32.34levels required in clause (3).
33.1(c) The governor's recommendations must prioritize the budget activities within an
33.2agency or program area. To the extent activities in more than one agency or program area
33.3are meeting the same goals, the recommendations must prioritize budget activities across
33.4agencies or programs with the same goals, and this prioritization must include agencies or
33.5programs not subject to zero-based budgeting principles that biennium.
33.6(d) Expenditures for debt service under section 16A.642, subdivision 10, are not
33.7subject to zero-based budgeting principles.
33.8EFFECTIVE DATE.(a) The zero-based budgeting principles in this section first
33.9apply to the following budget proposals for the biennium beginning July 1, 2013:
33.10(1) legislative branch;
33.11(2) judicial branch;
33.12(3) Minnesota State Colleges and Universities system; and
33.13(4) approximately half of expenditure programs in the executive branch, designated
33.14by the governor, in consultation with the chairs and lead minority members of the senate
33.15Finance Committee and the house of representatives Ways and Means Committee.
33.16(b) The zero-based budgeting principles in this section apply to all budget proposals
33.17for the biennium beginning July 1, 2015, and after.

33.18    Sec. 33. Minnesota Statutes 2010, section 16A.11, subdivision 3, is amended to read:
33.19    Subd. 3. Part two: detailed budget. (a) Part two of the budget, the detailed budget
33.20estimates both of expenditures and revenues, must contain any statements on the financial
33.21plan which the governor believes desirable or which may be required by the legislature.
33.22The detailed estimates shall include the governor's budget arranged in tabular form.
33.23(b) For programs designated for the zero-based budgeting principles under section
33.2416A.106, the budget must be prepared according to the requirements of that section.
33.25(c) For programs not designated for zero-based budgeting principles under section
33.2616A.106, tables listing expenditures for the next biennium must show the appropriation
33.27base for each year as defined in section 16A.103, subdivision 1c. ~~The appropriation base~~
33.28~~is the amount appropriated for the second year of the current biennium.~~ The tables must
33.29separately show any adjustments to the base required by current law or policies of the
33.30commissioner of management and budget. For forecasted programs, the tables must also
33.31show the amount of the forecast adjustments, based on the most recent forecast prepared
33.32by the commissioner of management and budget under section 16A.103. For all programs,
33.33the tables must show the amount of appropriation changes recommended by the governor,
33.34after adjustments to the base and forecast adjustments, and the total recommendation of
33.35the governor for that year.
34.1~~(c)~~ (d) The detailed estimates must include a separate line listing the total cost of
34.2professional and technical service contracts for the prior biennium and the projected costs
34.3of those contracts for the current and upcoming biennium. They must also include a
34.4summary of the personnel employed by the agency, reflected as full-time equivalent
34.5positions.
34.6~~(d)~~ (e) The detailed estimates for internal service funds must include the number of
34.7full-time equivalents by program; detail on any loans from the general fund, including
34.8dollar amounts by program; proposed investments in technology or equipment of $100,000
34.9or more; an explanation of any operating losses or increases in retained earnings; and a
34.10history of the rates that have been charged, with an explanation of any rate changes and
34.11the impact of the rate changes on affected agencies.

34.12    Sec. 34. Minnesota Statutes 2010, section 16A.28, subdivision 3, is amended to read:
34.13    Subd. 3. Lapse. Any portion of any appropriation not carried forward and remaining
34.14unexpended and unencumbered at the close of a fiscal year lapses to the fund from which
34.15it was originally appropriated. Except as provided in section 15.76, any appropriation
34.16amounts not carried forward and remaining unexpended and unencumbered at the close of
34.17a biennium lapse to the fund from which the appropriation was made.
34.18EFFECTIVE DATE.This section is effective June 30, 2013.

34.19    Sec. 35. [16A.90] EMPLOYEE GAINSHARING SYSTEM.
34.20The commissioner shall establish a program to provide onetime bonus compensation
34.21to state employees for efforts made to reduce the costs of operating state government or for
34.22ways of providing better or more efficient state services. The commissioner may make a
34.23onetime award to an employee or group of employees whose suggestion or involvement in
34.24a project is determined by the commissioner to have resulted in documented cost-savings
34.25to the state. The maximum award is ten percent of the documented savings in the
34.26first fiscal year in which the savings are realized. The award must be paid from the
34.27appropriation to which the savings accrued.

34.28    Sec. 36. [16A.93] MINNESOTA PAY FOR PERFORMANCE ACT.
34.29Sections 16A.93 to 16A.96 may be cited as the "Minnesota Pay for Performance
34.30Act of 2011."
34.31EFFECTIVE DATE.This section is effective the day following final enactment.

35.1    Sec. 37. [16A.94] PROGRAM.
35.2    Subdivision 1. Pilot program established. The commissioner shall implement a
35.3pilot program to demonstrate the feasibility and desirability of using state appropriation
35.4bonds to pay for certain services based on performance and outcomes for the people served.
35.5    Subd. 2. Oversight committee. (a) The commissioner shall appoint an oversight
35.6committee to:
35.7(1) identify criteria to select one or more services to be included in the pilot program;
35.8(2) identify the conditions of performance and desired outcomes for the people
35.9served by each service selected;
35.10(3) identify criteria to evaluate whether a service has met the performance
35.11conditions; and
35.12(4) provide any other advice or assistance requested by the commissioner.
35.13(b) The oversight committee must include the commissioners of the Departments
35.14of Human Services, Employment and Economic Development, and Administration, or
35.15their designees; a representative of a nonprofit organization that has participated in a
35.16pay-for-performance program; and any other person or organization that the commissioner
35.17determines would be of assistance in developing and implementing the pilot program.
35.18    Subd. 3. Contracts. The commissioner and the commissioner of the agency with
35.19a service to be provided through the pilot program shall enter into a contract with the
35.20selected provider. The contract must specify the service to be provided, the time frame in
35.21which it is to be provided, the outcome required for payment, and any other terms deemed
35.22necessary or convenient for implementation of the pilot program. The commissioner
35.23shall pay a provider that has met the terms and conditions of a contract with money
35.24appropriated to the commissioner from the special appropriation bond proceeds account
35.25established in section 16A.96. At a minimum, before the commissioner pays a provider,
35.26the commissioner must determine that the state's return on investment is positive.
35.27    Subd. 4. Return on investment calculation. The commissioner, in consultation
35.28with the oversight committee, must establish the method and data required for calculating
35.29the state's return on investment. The data at a minimum must include:
35.30(1) state income taxes and any other revenues collected in the year after the service
35.31was provided that would not have been collected without the service; and
35.32(2) costs avoided by the state by providing the service.
35.33A positive return on investment for the state will cover the state's costs in financing
35.34and administering the pilot program through documented increased state tax revenue
35.35or cost avoidance.
36.1    Subd. 5. Report to governor and legislature. The commissioner must report to the
36.2governor and legislative committees with jurisdiction over capital investment, finance, and
36.3ways and means, and the services included in the pilot program, by January 15 of each
36.4year following a year in which the pilot program is operating. The report must describe
36.5and discuss the criteria for selection and evaluation of services to be provided through
36.6the program, the net benefits to the state of the program, the state's return on investment,
36.7the cost of the services provided by other means in the most recent past, the time frame
36.8for payment for the services, and the timing and costs for sale and issuance of the bonds
36.9authorized in section 16A.96.
36.10EFFECTIVE DATE.This section is effective the day following final enactment.

36.11    Sec. 38. [16A.96] MINNESOTA PAY FOR PERFORMANCE PROGRAM;
36.12APPROPRIATION BONDS.
36.13    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
36.14section.
36.15(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
36.16payable during a biennium from one or more of the following sources:
36.17(1) money appropriated by law in any biennium for debt service due with respect
36.18to obligations described in subdivision 2, paragraph (b);
36.19(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
36.20(3) payments received for that purpose under agreements and ancillary arrangements
36.21described in subdivision 2, paragraph (d); and
36.22(4) investment earnings on amounts in clauses (1) to (3).
36.23(c) "Debt service" means the amount payable in any biennium of principal, premium,
36.24if any, and interest on appropriation bonds.
36.25    Subd. 2. Authority. (a) Subject to the limitations of this subdivision, the
36.26commissioner of management and budget may sell and issue appropriation bonds of the
36.27state under this section for the purposes of the Minnesota pay for performance program
36.28established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to
36.29a special appropriation bond proceeds account in the state treasury. Net income from
36.30investment of the proceeds, as estimated by the commissioner, must be credited to the
36.31special appropriation bond proceeds account.
36.32(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
36.33the commissioner, are necessary to provide sufficient funds for achieving the purposes
36.34authorized as provided under paragraph (a), and pay debt service, pay costs of issuance,
36.35make deposits to reserve funds, pay the costs of credit enhancement, or make payments
37.1under other agreements entered into under paragraph (d). The oversight committee
37.2appointed under section 16A.94 must establish limits on the amount of bonds issued
37.3and unpaid under this section. This limit does not apply to refunding bonds sold and
37.4issued under subdivision 4. In establishing this limit, the commissioner and the oversight
37.5committee must consult with the chairs and lead minority members of the legislative
37.6committees with jurisdiction over capital investment.
37.7(c) Appropriation bonds may be issued in one or more series on the terms and
37.8conditions the commissioner determines to be in the best interests of the state, but the term
37.9on any series of bonds may not exceed 20 years.
37.10(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
37.11time thereafter, so long as the appropriation bonds are outstanding, the commissioner
37.12may enter into agreements and ancillary arrangements relating to the appropriation
37.13bonds, including but not limited to trust indentures, liquidity facilities, remarketing or
37.14dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
37.15reimbursement agreements, indexing agreements, or interest exchange agreements. Any
37.16payments made or received according to the agreement or ancillary arrangement shall be
37.17made from or deposited as provided in the agreement or ancillary arrangement. The
37.18determination of the commissioner included in an interest exchange agreement that the
37.19agreement relates to an appropriation bond shall be conclusive.
37.20    Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form
37.21of bonds, notes, or other similar instruments, and in the manner provided in section
37.2216A.672. In the event that any provision of section 16A.672 conflicts with this section,
37.23this section shall control.
37.24(b) Every appropriation bond shall include a conspicuous statement of the limitation
37.25established in subdivision 6.
37.26(c) Appropriation bonds may be sold at either public or private sale upon such terms
37.27as the commissioner shall determine are not inconsistent with this section and may be sold
37.28at any price or percentage of par value. Any bid received may be rejected.
37.29(d) Appropriation bonds may bear interest at a fixed or variable rate.
37.30    Subd. 4. Refunding bonds. The commissioner from time to time may issue
37.31appropriation bonds for the purpose of refunding any appropriation bonds then
37.32outstanding, including the payment of any redemption premiums on the bonds, any
37.33interest accrued or to accrue to the redemption date, and costs related to the issuance
37.34and sale of the refunding bonds. The proceeds of any refunding bonds may, in the
37.35discretion of the commissioner, be applied to the purchase or payment at maturity of the
37.36appropriation bonds to be refunded, to the redemption of the outstanding bonds on any
38.1redemption date, or to pay interest on the refunding bonds and may, pending application,
38.2be placed in escrow to be applied to the purchase, payment, retirement, or redemption.
38.3Any escrowed proceeds, pending such use, may be invested and reinvested in obligations
38.4that are authorized investments under section 11A.24. The income earned or realized on
38.5the investment may also be applied to the payment of the bonds to be refunded or interest
38.6or premiums on the refunded bonds, or to pay interest on the refunding bonds. After
38.7the terms of the escrow have been fully satisfied, any balance of the proceeds and any
38.8investment income may be returned to the general fund or, if applicable, the appropriation
38.9bond proceeds account for use in any lawful manner. All refunding bonds issued under
38.10this subdivision must be prepared, executed, delivered, and secured by appropriations in
38.11the same manner as the bonds to be refunded.
38.12    Subd. 5. Appropriation bonds as legal investments. Any of the following entities
38.13may legally invest any sinking funds, money, or other funds belonging to them or under
38.14their control in any appropriation bonds issued under this section:
38.15(1) the state, the investment board, public officers, municipal corporations, political
38.16subdivisions, and public bodies;
38.17(2) banks and bankers, savings and loan associations, credit unions, trust companies,
38.18savings banks and institutions, investment companies, insurance companies, insurance
38.19associations, and other persons carrying on a banking or insurance business; and
38.20(3) personal representatives, guardians, trustees, and other fiduciaries.
38.21    Subd. 6. No full faith and credit; state not required to make appropriations.
38.22The appropriation bonds are not public debt of the state, and the full faith, credit, and
38.23taxing powers of the state are not pledged to the payment of the appropriation bonds or to
38.24any payment that the state agrees to make under this section. Appropriation bonds shall
38.25not be obligations paid directly, in whole or in part, from a tax of statewide application
38.26on any class of property, income, transaction, or privilege. Appropriation bonds shall be
38.27payable in each fiscal year only from amounts that the legislature may appropriate for debt
38.28service for any fiscal year, provided that nothing in this section shall be construed to
38.29require the state to appropriate funds sufficient to make debt service payments with respect
38.30to the bonds in any fiscal year.
38.31    Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds and
38.32interest credited to the special appropriation bond proceeds account are appropriated to the
38.33commissioner for payment of contract obligations under the pay for performance program,
38.34as permitted by state and federal law, and nonsalary expenses incurred in conjunction
38.35with the sale of the appropriation bonds.
39.1    Subd. 8. Appropriation for debt service. The amount needed to pay principal and
39.2interest on appropriation bonds issued under this section is appropriated each year to the
39.3commissioner from the general fund subject to the repeal, unallotment under section
39.416A.152, or cancellation otherwise pursuant to subdivision 6.
39.5EFFECTIVE DATE.This section is effective the day following final enactment.

39.6    Sec. 39. Minnesota Statutes 2010, section 16B.03, is amended to read:
39.716B.03 APPOINTMENTS.
39.8The commissioner is authorized to appoint staff, including ~~two~~ one deputy
39.9~~commissioners~~ commissioner, in accordance with chapter 43A.

39.10    Sec. 40. Minnesota Statutes 2010, section 16C.08, subdivision 2, is amended to read:
39.11    Subd. 2. Duties of contracting agency. (a) Before an agency may seek approval of
39.12a professional or technical services contract valued in excess of $5,000, it must provide
39.13the following:
39.14    (1) a description of how the proposed contract or amendment is necessary and
39.15reasonable to advance the statutory mission of the agency;
39.16    (2) a description of the agency's plan to notify firms or individuals who may be
39.17available to perform the services called for in the solicitation;
39.18    (3) a description of the performance measures or other tools, including accessibility
39.19measures if applicable, that will be used to monitor and evaluate contract performance; and
39.20    (4) an explanation detailing, if applicable, why this procurement is being pursued
39.21unilaterally by the agency and not as an enterprise procurement.
39.22    (b) In addition to paragraph (a), the agency must certify that:
39.23    ~~(1) no current state employee is able and available to perform the services called~~
39.24~~for by the contract;~~
39.25    ~~(2)~~ (1) the normal competitive bidding mechanisms will not provide for adequate
39.26performance of the services;
39.27    ~~(3)~~ (2) reasonable efforts will be made to publicize the availability of the contract
39.28to the public;
39.29    ~~(4)~~ (3) the agency will develop and implement a written plan providing for the
39.30assignment of specific agency personnel to manage the contract, including a monitoring
39.31and liaison function, the periodic review of interim reports or other indications of past
39.32performance, and the ultimate utilization of the final product of the services;
40.1    ~~(5)~~ (4) the agency will not allow the contractor to begin work before the contract is
40.2fully executed unless an exception under section 16C.05, subdivision 2a, has been granted
40.3by the commissioner and funds are fully encumbered;
40.4    ~~(6)~~ (5) the contract will not establish an employment relationship between the state
40.5or the agency and any persons performing under the contract; and
40.6    ~~(7)~~ (6) in the event the results of the contract work will be carried out or continued
40.7by state employees upon completion of the contract, the contractor is required to include
40.8state employees in development and training, to the extent necessary to ensure that after
40.9completion of the contract, state employees can perform any ongoing work related to the
40.10same function~~; and~~
40.11    ~~(8) the agency will not contract out its previously eliminated jobs for four years~~
40.12~~without first considering the same former employees who are on the seniority unit layoff~~
40.13~~list who meet the minimum qualifications determined by the agency~~.
40.14    (c) A contract establishes an employment relationship for purposes of paragraph (b),
40.15clause ~~(6)~~ (5), if, under federal laws governing the distinction between an employee and
40.16an independent contractor, a person would be considered an employee.

40.17    Sec. 41. Minnesota Statutes 2010, section 16C.09, is amended to read:
40.1816C.09 PROCEDURE FOR SERVICE CONTRACTS.
40.19(a) Before entering into or approving a service contract, the commissioner must
40.20determine, at least, that:
40.21~~(1) no current state employee is able and available to perform the services called~~
40.22~~for by the contract;~~
40.23~~(2)~~ (1) the work to be performed under the contract is necessary to the agency's
40.24achievement of its statutory responsibilities and there is statutory authority to enter into
40.25the contract;
40.26~~(3)~~ (2) the contract will not establish an employment relationship between the state
40.27or the agency and any persons performing under the contract;
40.28~~(4)~~ (3) the contractor and agents are not employees of the state, except as authorized
40.29in section 15.062;
40.30~~(5)~~ (4) the contracting agency has specified a satisfactory method of evaluating and
40.31using the results of the work to be performed; and
40.32~~(6)~~ (5) the combined contract and amendments will not exceed five years without
40.33specific, written approval by the commissioner according to established policy, procedures,
40.34and standards, or unless otherwise provided for by law. The term of the original contract
41.1must not exceed two years, unless the commissioner determines that a longer duration is
41.2in the best interest of the state.
41.3~~(b) For purposes of paragraph (a), clause (1), employees are available if qualified~~
41.4~~and:~~
41.5~~(1) are already doing the work in question; or~~
41.6~~(2) are on layoff status in classes that can do the work in question.~~
41.7~~An employee is not available if the employee is doing other work, is retired, or has decided~~
41.8~~not to do the work in question.~~
41.9~~(c)~~ (b) This section does not apply to an agency's use of inmates pursuant to sections
41.10241.20 to 241.23 or to an agency's use of persons required by a court to provide:
41.11(1) community service; or
41.12(2) conservation or maintenance services on lands under the jurisdiction and control
41.13of the state.

41.14    Sec. 42. [16D.20] FEDERAL OFFSET PROGRAM.
41.15(a) The commissioner may enter into an agreement with the United States Secretary
41.16of the Treasury to participate in an offset program authorized under United States Code,
41.17title 31, section 3716, for the collection of debts owed to state agencies. The agreement
41.18may provide for the United States to submit debts owed to federal agencies for offset
41.19against state payments, similar to the procedures for offsetting debts owed to state
41.20agencies from federal payments.
41.21(b) The commissioner shall reduce any state payment by the amount of any federal
41.22debt submitted in accordance with the agreement authorized by this section, and pay such
41.23amount to the appropriate federal official in accordance with the procedures specified
41.24in such agreement.
41.25(c) The commissioner may, by rule, establish a reasonable administrative fee to be
41.26charged to the debtor for the contingency fee-based processing of state payment offsets for
41.27the recovery of federal nontax debts or the contingency fee-based processing of federal
41.28payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
41.29and may be withheld from any refund, reimbursement, or other money held for the debtor.
41.30(d) An agreement under this section must not allow for offset of payments if the
41.31debt that would be subject to the offset is being contested or if the time for appealing the
41.32determination of the debt has not yet expired.
41.33EFFECTIVE DATE.This section is effective the day following final enactment. As
41.34soon as possible after that date, the commissioner must discuss an agreement authorized
41.35under this section with appropriate federal officials, and if an agreement is entered into,
42.1the commissioner must begin to implement it to collect debts owed to the state as soon as
42.2possible.

42.3    Sec. 43. Minnesota Statutes 2010, section 37.06, is amended to read:
42.437.06 SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
42.5The secretary shall keep a complete record of the proceedings of the annual meetings
42.6of the State Agricultural Society and all meetings of the board of managers and any
42.7committee of the board, keep all accounts of the society other than those kept by the
42.8treasurer of the society, and perform other duties as directed by the board of managers. On
42.9or before December 31 each year, the secretary shall report to the governor for the fiscal
42.10year ending October 31 all the proceedings of the society during the current year and its
42.11financial condition as appears from its books. This report must contain a full, detailed
42.12statement of all receipts and expenditures during the year.
42.13The books and accounts of the society for the fiscal year must be examined and
42.14audited annually by an independent auditor, either a private auditor or the legislative
42.15auditor. If the audit is conducted by the legislative auditor, the cost of the examination
42.16must be paid by the society to the state and credited to the general fund.
42.17A summary of this examination, certified by the ~~legislative~~ auditor, must be
42.18appended to the secretary's report, along with the ~~legislative~~ auditor's recommendations
42.19and the proceedings of the first annual meeting of the society held following the secretary's
42.20report, including addresses made at the meeting as directed by the board of managers. The
42.21summary, recommendations, and proceedings must be printed in the same manner as the
42.22reports of state officers. Copies of the report must be printed annually and distributed as
42.23follows: to each society or association entitled to membership in the society, to each
42.24newspaper in the state, and the remaining copies as directed by the board of managers.

42.25    Sec. 44. Minnesota Statutes 2010, section 43A.08, subdivision 1, is amended to read:
42.26     Subdivision 1. Unclassified positions. Unclassified positions are held by employees
42.27who are:
42.28     (1) chosen by election or appointed to fill an elective office;
42.29     (2) heads of agencies required by law to be appointed by the governor or other
42.30elective officers, and the executive or administrative heads of departments, bureaus,
42.31divisions, and institutions specifically established by law in the unclassified service;
42.32     (3) deputy ~~and assistant~~ agency heads and one confidential secretary in the agencies
42.33listed in ~~subdivision 1a and in the Office of Strategic and Long-Range Planning~~ section
42.3415.06, subdivision 1;
43.1     (4) the confidential secretary to each of the elective officers of this state and, for the
43.2secretary of state and state auditor, an additional deputy, clerk, or employee;
43.3     (5) intermittent help employed by the commissioner of public safety to assist in
43.4the issuance of vehicle licenses;
43.5     (6) employees in the offices of the governor and of the lieutenant governor and one
43.6confidential employee for the governor in the Office of the Adjutant General;
43.7     (7) employees of the Washington, D.C., office of the state of Minnesota;
43.8     (8) employees of the legislature and of legislative committees or commissions;
43.9provided that employees of the Legislative Audit Commission, except for the legislative
43.10auditor, the deputy legislative auditors, and their confidential secretaries, shall be
43.11employees in the classified service;
43.12     (9) presidents, vice-presidents, deans, other managers and professionals in
43.13academic and academic support programs, administrative or service faculty, teachers,
43.14research assistants, and student employees eligible under terms of the federal Economic
43.15Opportunity Act work study program in the Perpich Center for Arts Education and the
43.16Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance
43.17employees, or any professional or managerial employee performing duties in connection
43.18with the business administration of these institutions;
43.19     (10) officers and enlisted persons in the National Guard;
43.20     (11) attorneys, legal assistants, and three confidential employees appointed by the
43.21attorney general or employed with the attorney general's authorization;
43.22     (12) judges and all employees of the judicial branch, referees, receivers, jurors, and
43.23notaries public, except referees and adjusters employed by the Department of Labor
43.24and Industry;
43.25     (13) members of the State Patrol; provided that selection and appointment of State
43.26Patrol troopers must be made in accordance with applicable laws governing the classified
43.27service;
43.28     (14) examination monitors and intermittent training instructors employed by the
43.29Departments of Management and Budget and Commerce and by professional examining
43.30boards and intermittent staff employed by the technical colleges for the administration of
43.31practical skills tests and for the staging of instructional demonstrations;
43.32    (15) student workers;
43.33    (16) executive directors or executive secretaries appointed by and reporting to any
43.34policy-making board or commission established by statute;
43.35    (17) employees unclassified pursuant to other statutory authority;
44.1    (18) intermittent help employed by the commissioner of agriculture to perform
44.2duties relating to pesticides, fertilizer, and seed regulation;
44.3    (19) the administrators and the deputy administrators at the State Academies for the
44.4Deaf and the Blind; and
44.5    (20) chief executive officers in the Department of Human Services.

44.6    Sec. 45. Minnesota Statutes 2010, section 43A.20, is amended to read:
44.743A.20 PERFORMANCE APPRAISAL AND PAY.
44.8(a) The commissioner shall design and maintain a performance appraisal system
44.9under which each employee in the civil service in the executive branch shall be evaluated
44.10and counseled on work performance at least once a year. The performance appraisal
44.11system must include three components:
44.12(1) evaluation of the individual employee's performance relative to goals for that
44.13individual, which must constitute a majority of the overall determination of an employee's
44.14performance;
44.15(2) evaluation of the performance of the individual employee's program, defined by
44.16the agency head, toward meeting targeted outcomes for the program; and
44.17(3) evaluation of the performance of the entire agency toward meeting targeted
44.18outcomes for the agency.
44.19(b) Individual pay increases for all employees ~~not represented by an exclusive~~
44.20~~representative certified pursuant to chapter 179A~~ shall be based on the ~~evaluation~~
44.21evaluations required by paragraph (a) and other factors consistent with paragraph (a)
44.22that the commissioner negotiates in collective bargaining agreements or includes in the
44.23plans developed pursuant to section 43A.18. ~~Collective bargaining agreements entered~~
44.24~~into pursuant to chapter 179A may, and are encouraged to, provide for pay increases~~
44.25~~based on employee work performance.~~ An employee in the executive branch may not
44.26receive an increase in salary or wages based on cost of living or progression to another
44.27step or lane unless the employee's supervisor certifies that the employee's performance
44.28has been satisfactory.
44.29(c) This section does not apply to faculty and administrators in the Minnesota State
44.30Colleges and University system.
44.31(d) This section supersedes any conflicting provision of other law.
44.32EFFECTIVE DATE.This section is effective July 1, 2011. For employees covered
44.33by a collective bargaining agreement, this section applies to collective bargaining
44.34agreements entered into on or after that date.

45.1    Sec. 46. [43A.347] REDUCTION IN STATE WORK FORCE; EARLY
45.2RETIREMENT PROGRAM.
45.3    Subdivision 1. Required reduction. (a) The number of full-time equivalent
45.4employees employed in the executive branch, and the costs directly associated with
45.5employing those persons, must be reduced by at least 12 percent by June 30, 2013, and 15
45.6percent by June 30, 2015, and thereafter, compared to the number of full-time equivalent
45.7positions and the costs directly associated with those positions on January 1, 2011.
45.8(b) An appointing authority may use any or all of the following to achieve this
45.9requirement: attrition, a hard hiring freeze, early retirement incentives authorized in this
45.10section, restructuring of benefit or pension programs as authorized by other law, furloughs,
45.11and layoffs. The early retirement program in this section is enacted as a tool to assist in
45.12complying with the required 15 percent reduction.
45.13(c) For purposes of this section:
45.14(1) "costs directly associated" with employing people means the cost of salaries and
45.15benefits, including the costs of employer contributions to public pension plans; and
45.16(2) "executive branch" does not include the Minnesota State Colleges and
45.17Universities.
45.18    Subd. 2. Analysis. Before authorizing an early retirement under subdivision 3 or
45.194, the commissioner must perform analysis, including actuarial analysis, as necessary to
45.20determine the maximum number of employees to whom incentives will be offered, and the
45.21percentage of resulting savings estimated to be needed to pay pension funds to cover costs
45.22to the funds of the incentive in this section. The commissioner must use this analysis in
45.23determining how to best implement this section.
45.24    Subd. 3. Pension early retirement incentive. (a) The commissioner of management
45.25and budget may authorize an executive branch appointing authority to offer an early
45.26retirement incentive under this subdivision to an employee who upon retirement would be
45.27immediately eligible to receive an annuity from the public pension plan under which the
45.28employee is covered immediately before separation from state service. The commissioner
45.29may establish time periods during which the incentive may be offered and during which
45.30the incentive must be accepted, may establish limits on the number of employees to whom
45.31an appointing authority, or all appointing authorities collectively, may offer the incentive,
45.32and may establish other conditions for the incentive.
45.33(b) For an employee offered an incentive under this subdivision, for each full
45.34year of service credit that the employee has in a plan administered by the Minnesota
45.35State Retirement System, the Public Employees Retirement Association, or the Teachers
45.36Retirement Association, the employee must be granted an additional month of service
46.1credit in the plan under which the employee is covered immediately before separation
46.2from state service under this subdivision.
46.3(c) Upon request of an appointing authority considering offering an incentive under
46.4this subdivision, the executive director of the public pension plan in which an employee
46.5would be granted additional service credit under this subdivision must prepare an estimate
46.6of the present value of the additional service credit that would be granted to an employee
46.7under this subdivision. For each employee accepting an incentive under this subdivision,
46.8the appointing authority offering the incentive must pay the applicable public pension
46.9plan, from the first dollars of savings achieved through offering the incentive, the present
46.10value of the additional service credit granted to the employee, taking into account the date
46.11payment will be received from the appointing authority. The appointing authority must
46.12make this payment to the pension plan within one year of the date the employee accepting
46.13the incentive leaves state service.
46.14    Subd. 4. Insurance early retirement incentive. The commissioner of management
46.15and budget may authorize an executive appointing authority to offer the incentive
46.16originally offered under Laws 2010, chapter 337, to employees who retire from state
46.17service during periods that the commissioner specifies before June 30, 2015. The terms and
46.18conditions specified in Laws 2010, chapter 337, apply to an incentive offered under this
46.19subdivision, except for the dates specified in that law for accepting the incentive and for
46.20retiring, and except that the prohibition on reemployment or contracting is for the period
46.21specified in this section, instead of the shorter period specified in Laws 2010, chapter 337.
46.22    Subd. 5. Best practices. In implementing this section, the commissioner of
46.23management and budget and affected agencies shall utilize best practices as identified by
46.24other states that have implemented early retirement programs.
46.25    Subd. 6. Hiring freeze. To promote streamlined government and reduced costs,
46.26no state appointing authority may fill by outside hire a position vacated through state
46.27employee participation in an early retirement incentive under this section.
46.28    Subd. 7. Reemployment prohibition. An employee who receives an early
46.29retirement incentive under this section may not be reemployed with the state or enter into
46.30a contract with the state as a consultant for five years after termination.
46.31    Subd. 8. Savings. Savings resulting from implementation of this section, after
46.32any payments made under subdivisions 3 and 4, must cancel back to the fund in which
46.33the savings occurred.
46.34    Subd. 9. Not applicable to elected officials. A state elected official is not a state
46.35employee for purposes of this section.

47.1    Sec. 47. Minnesota Statutes 2010, section 45.013, is amended to read:
47.245.013 POWER TO APPOINT STAFF.
47.3The commissioner of commerce may appoint ~~four~~ one deputy ~~commissioners, four~~
47.4~~assistant commissioners, and an assistant to the commissioner. Those positions, as well as~~
47.5~~that of~~ and a confidential secretary~~, are~~ in the unclassified service. The commissioner may
47.6appoint other employees necessary to carry out the duties and responsibilities entrusted to
47.7the commissioner.

47.8    Sec. 48. Minnesota Statutes 2010, section 84.01, subdivision 3, is amended to read:
47.9    Subd. 3. Employees; delegation. ~~Subject to the provisions of Laws 1969, chapter~~
47.10~~1129, and to other applicable laws~~ The commissioner shall organize the department and
47.11employ ~~up to three assistant commissioners, each of whom shall serve at the pleasure of~~
47.12~~the commissioner in the unclassified service, one of whom shall have responsibility for~~
47.13~~coordinating and directing the planning of every division within the agency, and such other~~
47.14officers, employees, and agents as the commissioner may deem necessary to discharge the
47.15functions of the department, define the duties of such officers, employees, and agents and
47.16to delegate to them any of the commissioner's powers, duties, and responsibilities subject
47.17to the control of, and under the conditions prescribed by, the commissioner. Appointments
47.18to exercise delegated power shall be by written order filed with the secretary of state.

47.19    Sec. 49. Minnesota Statutes 2010, section 116.03, subdivision 1, is amended to read:
47.20    Subdivision 1. Office. (a) The office of commissioner of the Pollution Control
47.21Agency is created and is under the supervision and control of the commissioner, who is
47.22appointed by the governor under the provisions of section 15.06.
47.23(b) The commissioner may appoint a deputy commissioner ~~and assistant~~
47.24~~commissioners~~ who shall be in the unclassified service.
47.25(c) The commissioner shall make all decisions on behalf of the agency that are not
47.26required to be made by the agency under section 116.02.

47.27    Sec. 50. Minnesota Statutes 2010, section 116J.01, subdivision 5, is amended to read:
47.28    Subd. 5. Departmental organization. (a) The commissioner shall organize the
47.29department as provided in section 15.06.
47.30(b) The commissioner may establish divisions and offices within the department.
47.31~~The commissioner may employ four deputy commissioners in the unclassified service.~~
47.32(c) The commissioner shall:
48.1(1) employ assistants and other officers, employees, and agents that the commissioner
48.2considers necessary to discharge the functions of the commissioner's office;
48.3(2) define the duties of the officers, employees, and agents, and delegate to them any
48.4of the commissioner's powers, duties, and responsibilities, subject to the commissioner's
48.5control and under conditions prescribed by the commissioner.
48.6(d) The commissioner shall ensure that there are at least three employment and
48.7economic development officers in state offices in nonmetropolitan areas of the state who
48.8will work with local units of government on developing local employment and economic
48.9development.

48.10    Sec. 51. Minnesota Statutes 2010, section 116J.035, subdivision 4, is amended to read:
48.11    Subd. 4. Delegation of powers. The commissioner may delegate, in written orders
48.12filed with the secretary of state, any powers or duties subject to the commissioner's
48.13control to officers and employees in the department. Regardless of any other law, the
48.14commissioner may delegate the execution of specific contracts or specific types of
48.15contracts to the commissioner's ~~deputies, an assistant commissioner,~~ deputy or a program
48.16director if the delegation has been approved by the commissioner of administration and
48.17filed with the secretary of state.

48.18    Sec. 52. Minnesota Statutes 2010, section 174.02, subdivision 2, is amended to read:
48.19    Subd. 2. Unclassified positions. The commissioner may ~~establish four positions~~
48.20~~in the unclassified service at the~~ appoint a deputy ~~and assistant~~ commissioner~~, assistant~~
48.21~~to commissioner or~~ and a personal secretary ~~levels. No more than two of these positions~~
48.22~~shall be at the deputy commissioner level~~ in the unclassified service.

48.23    Sec. 53. Minnesota Statutes 2010, section 241.01, subdivision 2, is amended to read:
48.24    Subd. 2. ~~Deputies~~ Deputy. The commissioner of corrections may appoint and
48.25employ ~~no more than two~~ a deputy ~~commissioners~~ commissioner. The commissioner may
48.26also appoint a personal secretary, who shall serve at the commissioner's pleasure in the
48.27unclassified civil service.

48.28    Sec. 54. Laws 2010, chapter 361, article 3, section 8, is amended to read:
48.29    Sec. 8. USE OF CARRYFORWARD.
48.30The restrictions in Minnesota Statutes, section 16A.281, on the use of money carried
48.31forward from one biennium to another shall not apply to money the legislative auditor
48.32carried forward from the ~~previous~~ biennium ~~for use in fiscal years 2010 and 2011~~ ending
49.1June 30, 2009, or the biennium ending June 30, 2011. The legislative auditor may use the
49.2carry forward money for costs related to the conduct of audits related to funds authorized
49.3in the Minnesota Constitution, Article XI, section 15, and audits related to the institutions,
49.4offices, and functions of Minnesota State Colleges and Universities.
49.5EFFECTIVE DATE.This section is effective the day following final enactment.

49.6    Sec. 55. SALARY FREEZE.
49.7(a) Effective July 1, 2011, a state employee may not receive a salary or wage increase
49.8before July 1, 2013. This section prohibits any increases, including but not limited to:
49.9across-the-board increases; cost-of-living adjustments; increases based on longevity;
49.10step increases; increases in the form of lump-sum payments; increases in employer
49.11contributions to deferred compensation plans; or any other pay grade adjustments of any
49.12kind. This section does not prohibit an increase in the rate of salary and wages for an
49.13employee who is promoted or transferred to a position with greater responsibilities and
49.14with a higher salary or wage rate.
49.15(b) A state appointing authority may not enter into a collective bargaining agreement
49.16or implement a compensation plan that increases salary or wages in a manner prohibited
49.17by this section. Neither a state appointing authority nor an exclusive representative of state
49.18employees may request interest arbitration in relation to an increase in salary or wages that
49.19is prohibited by this section, and an arbitrator may not issue an award that would increase
49.20salary or wages in a manner prohibited by this section.
49.21EFFECTIVE DATE.Paragraph (b) is effective the day following final enactment.
49.22Paragraph (a) is effective June 30, 2011.

49.23    Sec. 56. STATE JOB CLASSIFICATIONS.
49.24The commissioner of management and budget shall report to the legislature by
49.25January 15, 2012, on a process to redesign and consolidate the job classification plan for
49.26executive branch employees, with a goal of assigning all classified positions to no more
49.27than 50 job families. The process must lead to development of a new job classification
49.28plan designed to enhance the ability of state agencies to flexibly manage their workforces
49.29to meet changing needs and demands of the agency, and to enhance the ability of state
49.30employees to transfer to other positions for which they are qualified. In developing this
49.31process, the commissioner must meet and confer with the exclusive representatives of each
49.32affected bargaining unit. The report to the legislature must identify implementation issues.

50.1    Sec. 57. DEPARTMENT OF REVENUE; REQUEST FOR PROPOSALS.
50.2(a) The commissioner of revenue shall issue a request for proposals for a contract to
50.3implement a system of tax analytics and business intelligence tools to enhance the state's
50.4tax collection process and revenues by improving the means of identifying candidates
50.5for audit and collection activities and prioritizing those activities to provide the highest
50.6returns on auditors' and collection agents' time. The request for proposals must require
50.7that the system recommended and implemented by the contractor:
50.8(1) leverage the Department of Revenue's existing data and other available data
50.9sources to build models that more effectively and efficiently identify accounts for audit
50.10review and collections;
50.11(2) leverage advanced analytical techniques and technology such as pattern
50.12detection, predictive modeling, clustering, outlier detection and link analysis to identify
50.13suspect accounts for audit review and collections;
50.14(3) leverage a variety of approaches and analytical techniques to rank accounts and
50.15improve the success rate and the return on investment of department employees engaged
50.16in audit activities;
50.17(4) leverage technology to make the audit process more sustainable and stable, even
50.18with turnover of department auditing staff;
50.19(5) provide optimization capabilities to more effectively prioritize collections and
50.20increase the efficiency of employees engaged in collections activities; and
50.21(6) incorporate mechanisms to decrease wrongful auditing and reduce interference
50.22with Minnesota taxpayers who are fully complying with the laws.
50.23(b) Based on reasonable responses to the request for proposals, the commissioner
50.24shall enter into a contract for the services specified in paragraph (a) by October 1, 2011.
50.25(c) Incorporating the system of tax analytics and business intelligence tools under
50.26the contract in this section, the commissioner of revenue shall identify and collect tax
50.27liabilities from individuals and businesses that currently do not pay all taxes owed.
50.28The commissioner may enter into additional contracts and retain up to five percent
50.29administrative costs as necessary to implement this section. A contract may incorporate a
50.30vendor financing option. This financing option may not make the vendor's compensation
50.31contingent on the amount collected as a result of an audit or an assessment determined
50.32by the vendor.
50.33(d) $11,504,000 for the fiscal year ending June 30, 2012, and $23,269,000 for
50.34the fiscal year ending June 30, 2013, are appropriated from the general fund to the
50.35commissioner of revenue for purposes of this section. This initiative is expected to result
50.36in new general fund revenues of $133,000,000 for the biennium ending June 30, 2013.
51.1(e) The commissioner of revenue must report to the chairs of the house of
51.2representatives Ways and Means and senate Finance Committees by March 1, 2012, and
51.3January 15, 2013, on collection of additional revenue under this section.
51.4(f)(1) If the commissioner of revenue determines that the initiative under this section
51.5will result in new general fund revenues of less than $133,000,000 for the biennium
51.6ending June 30, 2013, the commissioner must notify the commissioner of management
51.7and budget of the amount of new general fund revenues anticipated under this section.
51.8(2) Upon receiving a notice from the commissioner of revenue under clause (1), the
51.9commissioner of management and budget must reduce general fund appropriations to
51.10executive agencies for agency operations for the biennium ending June 30, 2013, by an
51.11amount equal to the difference between $133,000,000 and the amount of new general fund
51.12revenues anticipated by the commissioner of revenue under the notice in clause (1).
51.13EFFECTIVE DATE.This section is effective the day following final enactment.

51.14    Sec. 58. REVENUE FROM FEDERAL OFFSET PROGRAM.
51.15(a) It is expected that implementation of authority under Minnesota Statutes, section
51.1616D.20, will result in increased revenues to the general fund of at least $36,600,000
51.17during the biennium ending June 30, 2013. If the commissioner of revenue determines
51.18that implementation of Minnesota Statutes, section 16D.20, will result in new general
51.19fund revenues of less than $36,600,000 for the biennium ending June 30, 2013, the
51.20commissioner must notify the commissioner of management and budget of the amount of
51.21new general fund revenues anticipated under Minnesota Statutes, section 16D.20.
51.22(b) Upon receiving a notice from the commissioner of revenue under paragraph (a),
51.23the commissioner of management and budget must reduce general fund appropriations to
51.24executive agencies for agency operations for the biennium ending June 30, 2013, by an
51.25amount equal to the difference between $36,600,000 and the amount of new general fund
51.26revenues anticipated by the commissioner of revenue under the notice in paragraph (a).

51.27    Sec. 59. STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT
51.28ELIGIBILITY VERIFICATION AUDIT SERVICES.
51.29    Subdivision 1. Request for proposals. By September 1, 2011, the commissioner
51.30of management and budget shall issue a request for proposals for a contract to provide
51.31dependent eligibility verification audit services for state-paid hospital, medical, and dental
51.32benefits provided to participants in the state employee group insurance program and their
51.33dependents. The request for proposals must require that the vendor will:
52.1(1) conduct a document-model dependent eligibility verification audit of all plans
52.2offered under Minnesota Statutes, sections 43A.22 to 43A.31;
52.3(2) identify ineligible dependents covered by the plans and report those findings to
52.4the commissioner and third-party administrators of the state's employee health plans, as
52.5directed by the commissioner; and
52.6(3) implement a process for ongoing eligibility verification following the conclusion
52.7of the dependent eligibility verification audit required by this section.
52.8    Subd. 2. Additional vendor criteria. The request for proposals required by
52.9subdivision 1 must require the vendor to provide the following minimum capabilities and
52.10experience in performing the services described in subdivision 1:
52.11(1) a rules-based platform employing auto-adjudication for making objective
52.12eligibility determinations;
52.13(2) assigned eligibility advocates to assist employees through the verification
52.14process;
52.15(3) a formal claims and appeals process; and
52.16(4) experience in the performance of dependent eligibility verification audits for
52.17other states.
52.18    Subd. 3. Contract required. By January 1, 2012, the commissioner must enter
52.19into a contract for the services specified in subdivision 1. The contract must incorporate
52.20a performance-based vendor financing option that compensates the vendor based on the
52.21amount of savings generated by the work performed under the contract.

52.22    Sec. 60. REPEALER.
52.23Minnesota Statutes 2010, sections 16C.085; 43A.047; and 179A.23, are repealed.

52.24ARTICLE 4

52.25CONSOLIDATION OF INFORMATION TECHNOLOGY SERVICES

52.26    Section 1. Minnesota Statutes 2010, section 16B.99, is amended to read:
52.2716B.99 GEOSPATIAL INFORMATION OFFICE.
52.28    Subdivision 1. Creation. The Minnesota Geospatial Information Office is created
52.29under the supervision of the ~~commissioner of administration~~ chief geospatial information
52.30officer, who is appointed by the chief information officer.
52.31    Subd. 2. Responsibilities; authority. The office has authority to provide
52.32coordination, guidance, and leadership, and to plan the implementation of Minnesota's
52.33geospatial information technology. The office must identify, coordinate, and guide
53.1strategic investments in geospatial information technology systems, data, and services to
53.2ensure effective implementation and use of Geospatial Information Systems (GIS) by state
53.3agencies to maximize benefits for state government as an enterprise.
53.4    Subd. 3. Duties. The office must:
53.5(1) coordinate and guide the efficient and effective use of available federal,
53.6state, local, and public-private resources to develop statewide geospatial information
53.7technology, data, and services;
53.8(2) provide leadership and outreach, and ensure cooperation and coordination for all
53.9Geospatial Information Systems (GIS) functions in state and local government, including
53.10coordination between state agencies, intergovernment coordination between state and local
53.11units of government, and extragovernment coordination, which includes coordination with
53.12academic and other private and nonprofit sector GIS stakeholders;
53.13(3) review state agency and intergovernment geospatial technology, data, and
53.14services development efforts involving state or intergovernment funding, including federal
53.15funding;
53.16(4) provide information to the legislature regarding projects reviewed, and
53.17recommend projects for inclusion in the governor's budget under section 16A.11;
53.18(5) coordinate management of geospatial technology, data, and services between
53.19state and local governments;
53.20(6) provide coordination, leadership, and consultation to integrate government
53.21technology services with GIS infrastructure and GIS programs;
53.22(7) work to avoid or eliminate unnecessary duplication of existing GIS technology
53.23services and systems, including services provided by other public and private organizations
53.24while building on existing governmental infrastructures;
53.25(8) promote and coordinate consolidated geospatial technology, data, and services
53.26and shared geospatial Web services for state and local governments; and
53.27(9) promote and coordinate geospatial technology training, technical guidance, and
53.28project support for state and local governments.
53.29    Subd. 4. Duties of chief ~~geospatial~~ information officer. (a) In consultation with the
53.30state geospatial advisory council, the commissioner of administration, the commissioner
53.31of management and budget, and the ~~Minnesota~~ chief geospatial information officer, the
53.32chief ~~geospatial~~ information officer must identify when it is cost-effective for agencies to
53.33develop and use shared information and geospatial technology systems, data, and services.
53.34The chief ~~geospatial~~ information officer may require agencies to use shared information
53.35and geospatial technology systems, data, and services.
54.1(b) The chief ~~geospatial~~ information officer, in consultation with the state
54.2geospatial advisory council, must establish reimbursement rates in cooperation with the
54.3commissioner of management and budget to bill agencies and other governmental entities
54.4sufficient to cover the actual development, operation, maintenance, and administrative
54.5costs of the shared systems. The methodology for billing may include the use of
54.6interagency agreements, or other means as allowed by law.
54.7    Subd. 5. Fees. (a) The chief ~~geospatial~~ information officer must set fees under
54.8section 16A.1285 that reflect the actual cost of providing information products and
54.9services to clients. Fees collected must be deposited in the state treasury and credited to
54.10the Minnesota Geospatial Information Office revolving account. Money in the account
54.11is appropriated to the chief ~~geospatial~~ information officer for providing Geospatial
54.12Information Systems (GIS) consulting services, software, data, Web services, and map
54.13products on a cost-recovery basis, including the cost of services, supplies, material, labor,
54.14and equipment as well as the portion of the general support costs and statewide indirect
54.15costs of the office that is attributable to the delivery of these products and services. Money
54.16in the account must not be used for the general operation of the Minnesota Geospatial
54.17Information Office.
54.18(b) The chief ~~geospatial~~ information officer may require a state agency to make an
54.19advance payment to the revolving account sufficient to cover the agency's estimated
54.20obligation for a period of 60 days or more. If the revolving account is abolished or
54.21liquidated, the total net profit from the operation of the account must be distributed to the
54.22various funds from which purchases were made. For a given period of time, the amount of
54.23total net profit to be distributed to each fund must reflect the same ratio of total purchases
54.24attributable to each fund divided by the total purchases from all funds.
54.25    Subd. 6. Accountability. The chief geospatial information officer is appointed by
54.26the ~~commissioner of administration and must work closely with the~~ Minnesota chief
54.27information officer who shall advise on technology projects, standards, and services.
54.28    Subd. 7. Discretionary powers. The office may:
54.29(1) enter into contracts for goods or services with public or private organizations
54.30and charge fees for services it provides;
54.31(2) apply for, receive, and expend money from public agencies;
54.32(3) apply for, accept, and disburse grants and other aids from the federal government
54.33and other public or private sources;
54.34(4) enter into contracts with agencies of the federal government, local government
54.35units, the University of Minnesota and other educational institutions, and private persons
54.36and other nongovernment organizations as necessary to perform its statutory duties;
55.1(5) appoint committees and task forces to assist the office in carrying out its duties;
55.2(6) sponsor and conduct conferences and studies, collect and disseminate
55.3information, and issue reports relating to geospatial information and technology issues;
55.4(7) participate in the activities and conferences related to geospatial information
55.5and communications technology issues;
55.6(8) review the Geospatial Information Systems (GIS) technology infrastructure
55.7of regions of the state and cooperate with and make recommendations to the governor,
55.8legislature, state agencies, local governments, local technology development agencies,
55.9the federal government, private businesses, and individuals for the realization of GIS
55.10information and technology infrastructure development potential;
55.11(9) sponsor, support, and facilitate innovative and collaborative geospatial systems
55.12technology, data, and services projects; and
55.13(10) review and recommend alternative sourcing strategies for state geospatial
55.14information systems technology, data, and services.
55.15    Subd. 8. Geospatial advisory councils created. The chief ~~geospatial~~ information
55.16officer must establish a governance structure that includes advisory councils to provide
55.17recommendations for improving the operations and management of geospatial technology
55.18within state government and also on issues of importance to users of geospatial technology
55.19throughout the state.
55.20(a) A statewide geospatial advisory council must advise the Minnesota Geospatial
55.21Information Office regarding the improvement of services statewide through the
55.22coordinated, affordable, reliable, and effective use of geospatial technology. The
55.23~~commissioner of administration~~ chief information officer must appoint the members of the
55.24council. The members must represent a cross-section of organizations including counties,
55.25cities, universities, business, nonprofit organizations, federal agencies, and state agencies.
55.26No more than 20 percent of the members may be employees of a state agency. In addition,
55.27the chief geospatial information officer must be a nonvoting member.
55.28(b) A state government geospatial advisory council must advise the Minnesota
55.29Geospatial Information Office on issues concerning improving state government services
55.30through the coordinated, affordable, reliable, and effective use of geospatial technology.
55.31The ~~commissioner of administration~~ chief information officer must appoint the members
55.32of the council. The members must represent up to 15 state government agencies and
55.33constitutional offices, including the Office of Enterprise Technology and the Minnesota
55.34Geospatial Information Office. The council must be chaired by the chief geographic
55.35information officer. A representative of the statewide geospatial advisory council must
55.36serve as a nonvoting member.
56.1(c) Members of both the statewide geospatial advisory council and the state
56.2government advisory council must be recommended by a process that ensures that each
56.3member is designated to represent a clearly identified agency or interested party category
56.4and that complies with the state's open appointment process. Members shall serve a
56.5term of two years.
56.6(d) The Minnesota Geospatial Information Office must provide administrative
56.7support for both geospatial advisory councils.
56.8(e) This subdivision expires June 30, 2011.
56.9    ~~Subd. 9.~~ ~~Report to legislature.~~ ~~By January 15, 2010, the chief geospatial~~
56.10~~information officer must provide a report to the chairs and ranking minority members of~~
56.11~~the legislative committees with jurisdiction over the policy and budget for the office. The~~
56.12~~report must address all statutes that refer to the Minnesota Geospatial Information Office~~
56.13~~or land management information system and provide any necessary draft legislation to~~
56.14~~implement any recommendations.~~

56.15    Sec. 2. [16E.0151] RESPONSIBILITY FOR INFORMATION TECHNOLOGY
56.16SERVICES AND EQUIPMENT.
56.17(a) The chief information officer is responsible for providing or entering into
56.18managed services contracts for the provision of the following information technology
56.19systems and services to state agencies:
56.20(1) state data centers;
56.21(2) mainframes including system software;
56.22(3) servers including system software;
56.23(4) desktops including system software;
56.24(5) laptop computers including system software;
56.25(6) a data network including system software;
56.26(7) database, electronic mail, office systems, reporting, and other standard software
56.27tools;
56.28(8) business application software and related technical support services;
56.29(9) help desk for the components listed in clauses (1) to (8);
56.30(10) maintenance, problem resolution, and break-fix for the components listed in
56.31clauses (1) to (8); and
56.32(11) regular upgrades and replacement for the components listed in clauses (1) to (8).
56.33(b) All state agency employees whose work primarily involves functions specified in
56.34paragraph (a) are employees of the Office of Enterprise Technology. The chief information
57.1officer may assign employees of the office to perform work exclusively for another
57.2executive agency.
57.3(c) The chief information officer may allow a state agency to obtain services
57.4specified in paragraph (a) through a contract with an outside vendor when the value of an
57.5outside vendor contract can be demonstrated. Sections 16C.08, subdivision 2, paragraph
57.6(b), clause (1); 16C.09, paragraph (a), clause (1); and 43A.047 do not apply to these
57.7contracts with outside vendors. The chief information officer must require that agency
57.8contracts with outside vendors ensure that systems and services are compatible with
57.9standards established by the Office of Enterprise Technology.
57.10(d) In exercising authority under this section, the chief information officer
57.11must cooperate with the commissioner of administration on contracts for acquisition
57.12of information technology systems and services. The authority granted to the chief
57.13information officer does not limit the procurement, contract management, and contract
57.14review authority of the commissioner of administration under chapter 16C, including
57.15authority of the commissioner to enter into and manage cooperative purchasing
57.16agreements with other states.
57.17(e) The State Lottery and Statewide Radio Board are not state agencies for purposes
57.18of this section.

57.19    Sec. 3. [16E.036] ADVISORY COMMITTEE.
57.20(a) The Technology Advisory Committee is created to advise the chief information
57.21officer. The committee consists of six members appointed by the governor who are
57.22individuals actively involved in business planning for state executive branch agencies, and
57.23one member appointed by the governor to represent private businesses.
57.24(b) Membership terms, removal of members, and filling of vacancies are as provided
57.25in section 15.059. Members do not receive compensation or reimbursement for expenses.
57.26(c) The committee shall select a chair from its members. The chief information
57.27officer shall provide administrative support to the committee.
57.28(d) The committee shall advise the chief information officer on:
57.29(1) development and implementation of the state information technology strategic
57.30plan;
57.31(2) critical information technology initiatives for the state;
57.32(3) standards for state information architecture;
57.33(4) identification of business and technical needs of state agencies;
57.34(5) strategic information technology portfolio management, project prioritization,
57.35and investment decisions;
58.1(6) the office's performance measures and fees for service agreements with executive
58.2branch agencies;
58.3(7) management of the state enterprise technology revolving fund; and
58.4(8) the efficient and effective operation of the office.

58.5    Sec. 4. Minnesota Statutes 2010, section 16E.14, is amended by adding a subdivision
58.6to read:
58.7    Subd. 6. Technology improvement account. The technology improvement account
58.8is established as an account in the enterprise technology fund. Money in the account is
58.9appropriated to the chief information officer for the purpose of funding a project that will
58.10result in improvements in state information and telecommunications technology. The
58.11chief information officer may spend money from the account on behalf of a state agency
58.12or group of agencies or may transfer money in the account to a state agency or group of
58.13agencies only according to an agreement under which: (1) the chief information officer
58.14has determined that savings generated by the project to be funded from the account will
58.15exceed the cost of the project; and (2) the agency or agencies sponsoring the project have
58.16developed a plan for recouping the project costs to the fund.

58.17    Sec. 5. TRANSFERS.
58.18(a) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations
58.19relating to functions assigned to the chief information officer in Minnesota Statutes,
58.20section 16E.0151, are transferred to the Office of Enterprise Technology from all other
58.21state agencies, as defined in Minnesota Statutes, section 16E.03, subdivision 1, paragraph
58.22(e), effective July 1, 2011. By January 15, 2012, the chief information officer shall submit
58.23to the legislature any statutory changes needed to complete implementation of the transfer
58.24in this section.
58.25(b) Prior to the transfer mandated by paragraph (a), the chief information officer must
58.26enter into a service-level agreement with each state agency governing the provision of
58.27information technology systems and services in Minnesota Statutes, section 16E.0151. The
58.28agreements must specify the services to be provided and the charges for these services. As
58.29specified in Minnesota Statutes, section 16E.0151, an agency may choose to obtain these
58.30services from an outside vendor, rather than from the Office of Enterprise Technology.
58.31(c) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations
58.32relating to geospatial information systems are transferred from the commissioner of
58.33administration to the Office of Enterprise Technology.
59.1(d) Minnesota Statutes, section 15.039, applies to transfers in this section. Executive
59.2branch officials may use authority under Minnesota Statutes, section 16B.37, as necessary
59.3to implement this section.

59.4    Sec. 6. STUDY.
59.5The chief information officer in the Office of Enterprise Technology shall report
59.6to the chairs and ranking minority members of the house of representatives and senate
59.7committees with jurisdiction over state government finance by January 15, 2012, on
59.8the feasibility and desirability of the office entering into service-level agreements with
59.9the State Lottery and the Statewide Radio Board regarding provision of information
59.10technology systems and services to those entities.

59.11    Sec. 7. REVISOR'S INSTRUCTION.
59.12The revisor of statutes shall recodify Minnesota Statutes, section 16B.99, into
59.13Minnesota Statutes, chapter 16E."
59.14Delete the title and insert:

59.15"A bill for an act

59.16relating to state government finance; establishing the Sunset Advisory
59.17Commission; allowing counties to provide an audit performed by a certified
59.18public accountant firm; requiring state agencies to carry out agency duties in most
59.19cost-effective manner whether by employing state workers or contracting with
59.20outside sources; establishing the SAVI program for retained savings; increasing
59.21public parking in front of Capitol building; changing provision of performance
59.22data required in the budget proposal; implementing zero-based budgeting
59.23principals; implementing employee gainsharing system to suggest ways to
59.24reduce cost of government; implementing pay for performance pilot program and
59.25allowing bond sale for programs proposed; implementing federal offset program
59.26for collection of debts owed to state agencies; allowing for independent or private
59.27audit for the State Agriculture Society; removing assistant agency head positions;
59.28changing provisions for performance appraisal and pay; reducing state workforce;
59.29providing early retirement incentives; reducing deputy positions; modifying
59.30use of carryforward by the legislative auditor; continuing the employee salary
59.31freeze; requiring a job classification consolidation and report; requiring a request
59.32for proposals for system to enhance the state's audit and collection activities;
59.33requiring dependent eligibility verification audit services for state hospital,
59.34medical, and dental services; consolidating information technology services;
59.35requiring studies; appropriating money;amending Minnesota Statutes 2010,
59.36sections 3.85, subdivision 3; 6.48; 15.06, subdivision 8; 16A.10, subdivisions
59.371a, 1b, 1c; 16A.103, subdivision 1a; 16A.11, subdivision 3; 16A.28, subdivision
59.383; 16B.03; 16B.99; 16C.08, subdivision 2; 16C.09; 16E.14, by adding a
59.39subdivision; 37.06; 43A.08, subdivision 1; 43A.20; 45.013; 84.01, subdivision 3;
59.40116.03, subdivision 1; 116J.01, subdivision 5; 116J.035, subdivision 4; 174.02,
59.41subdivision 2; 241.01, subdivision 2; Laws 2010, chapter 215, article 6, section
59.424; Laws 2010, chapter 361, article 3, section 8; proposing coding for new law in
59.43Minnesota Statutes, chapters 15; 15B; 16A; 16D; 16E; 43A; proposing coding
59.44for new law as Minnesota Statutes, chapter 3D; repealing Minnesota Statutes
59.452010, sections 16C.085; 43A.047; 179A.23; 197.585, subdivision 5."