1.1Senator .................... moves to amend S.F. No. 604 as follows:
1.2Delete everything after the enacting clause and insert:

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

$

..,...,000

$

..,...,000

1.18

Subdivision 1.Total Appropriation

$

..,...,000

$

..,...,000

1.19	Appropriations by Fund
1.20		2012	2013
1.21	General	..,...,000	..,...,000
1.22	Health Care Access	...,000	...,000

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

1.26

Subd. 2.Senate

..,...,000

..,...,000

1.27

Subd. 3.House of Representatives

..,...,000

..,...,000

1.28

Subd. 4.Legislative Coordinating Commission

..,...,000

..,...,000

1.29	Appropriations by Fund
1.30	General	..,...,000	..,...,000
1.31	Health Care Access	...,000	...,000

1.32 $...,000 the first year and $...,000 the second
1.33year are for the support of the Minnesota
2.1Sunset Advisory Commission established
2.2under Minnesota Statutes, chapter 3D.

2.3 2.4

Sec. 3. GOVERNOR AND LIEUTENANT GOVERNOR

$

.,...,000

$

.,...,000

2.5(a) By September 1 of each year, the
2.6commissioner of management and budget
2.7shall report to the chairs and ranking
2.8minority members of the senate State
2.9Government Innovation and Veterans Affairs
2.10Committee and the house of representatives
2.11State Government Finance Committee any
2.12personnel costs incurred by the Office of the
2.13Governor and Lieutenant Governor that were
2.14supported by appropriations to other agencies
2.15during the previous fiscal year. The Office
2.16of the Governor shall inform the chairs and
2.17ranking minority members of the committees
2.18before initiating any interagency agreements.
2.19(b) During the biennium ending June 30,
2.202013, the Office of the Governor may not
2.21receive payments of more than $...,000 each
2.22fiscal year from other executive agencies
2.23under Minnesota Statutes, section 15.53, to
2.24support personnel costs incurred by the office.
2.25Payments received under this paragraph must
2.26be deposited in a special revenue account.
2.27Money in the account is appropriated to the
2.28Office of the Governor. The authority in this
2.29paragraph supersedes other law enacted in
2.302011 that limits the ability of the office to
2.31enter into agreements relating to personnel
2.32costs with other executive branch agencies
2.33or prevents the use of appropriations made to
2.34other agencies for agreements with the office
2.35under Minnesota Statutes, section 15.53.

3.1

Sec. 4. STATE AUDITOR

$

.,...,000

$

.,...,000

3.2$...,000 of this appropriation each year is for
3.3the audit practice division.

3.4

Sec. 5. ATTORNEY GENERAL

$

..,...,000

$

..,...,000

3.5	Appropriations by Fund
3.6		2012	2013
3.7	General	..,...,000	..,...,000
3.8 3.9	State Government Special Revenue	.,...,000	.,...,000
3.10	Environmental	...,000	...,000
3.11	Remediation	...,000	...,000

3.12Of this appropriation, $65,000 in the first
3.13year and $65,000 in the second year is
3.14for transfer to the commissioner of public
3.15safety for a grant to the Minnesota County
3.16Attorneys Association for prosecutor and law
3.17enforcement training.

3.18

Sec. 6. SECRETARY OF STATE

$

.,...,000

$

.,...,000

3.19Any funds available in the account
3.20established in Minnesota Statutes, section
3.215.30, pursuant to the Help America Vote Act,
3.22are appropriated for the purposes and uses
3.23authorized by federal law.

3.24 3.25

Sec. 7. CAMPAIGN FINANCE AND PUBLIC DISCLOSURE BOARD

$

...,000

$

...,000

3.26

Sec. 8. INVESTMENT BOARD

$

...,000

$

...,000

3.27	Sec. 9. ADMINISTRATIVE HEARINGS			$	...,000	$	...,000

3.28	Appropriations by Fund
3.29		2012	2013
3.30	General	...,000	...,000
3.31 3.32	Workers' Compensation	.,...,000	.,...,000

4.1$130,000 in the first year is for the cost
4.2of considering complaints filed under
4.3Minnesota Statutes, section 211B.32. Until
4.4June 30, 2013, the chief administrative
4.5law judge may not make any assessment
4.6against a county or counties under Minnesota
4.7Statutes, section 211B.37. Any amount of
4.8this appropriation that remains unspent at
4.9the end of the biennium must be canceled
4.10to the general account of the state elections
4.11campaign fund. The base for fiscal year 2014
4.12is $130,000, to be available for the biennium,
4.13under the same terms.

4.14 4.15

Sec. 10. OFFICE OF ENTERPRISE TECHNOLOGY

$

.,...,000

$

.,...,000

4.16During the biennium ending June 30, 2013,
4.17the office must not charge fees to a public
4.18noncommercial educational television
4.19broadcast station for access to the state
4.20information infrastructure.

4.21

Sec. 11. ADMINISTRATION

4.22

Subdivision 1.Total Appropriation

$

..,...,000

$

..,...,000

4.23	Appropriations by Fund
4.24		2012	2013
4.25	General	..,...,000	..,...,000
4.26 4.27	Special Revenue Fund	...,000	...,000

4.28The amounts that may be spent for each
4.29purpose are specified in the following
4.30subdivisions.

4.31

Subd. 2.Government and Citizen Services

..,...,000

..,...,000

4.32	Appropriations by Fund
4.33	General	..,...,000	..,...,000
4.34 4.35	Special Revenue Fund	...,000	...,000

5.1 $..,000 the first year and $..,000 the second
5.2year are for the Council on Developmental
5.3Disabilities.
5.4 $.,...,000 the first year and $.,...,000 the
5.5second year are for office space costs of the
5.6legislature and veterans organizations, for
5.7ceremonial space, and for statutorily free
5.8space.
5.9The remaining balances in the: (1)
5.10resource recovery account; (2) office supply
5.11connections account; and (3) reduce savings
5.12monitoring system account are transferred to
5.13the general fund.

5.14

Subd. 3.Administrative Management Support

.,...,000

.,...,000

5.15

Subd. 4.Public Broadcasting

...,000

...,000

5.16(a) The appropriations under this section are
5.17to the commissioner of administration for the
5.18purposes specified.
5.19(b) $...,000 the first year and $...,000 the
5.20second year are for community service grants
5.21to public educational radio stations.
5.22(c) $...,000 the first year and $...,000 the
5.23second year are for equipment grants to
5.24public educational radio stations.
5.25(d) The grants in paragraphs (b) and (c)
5.26must be allocated after considering the
5.27recommendations of the Association of
5.28Minnesota Public Educational Radio Stations
5.29under Minnesota Statutes, section 129D.14.
5.30(e) Any unencumbered balance remaining
5.31the first year for grants to radio stations does
5.32not cancel and is available for the second
5.33year.

6.1 6.2 6.3

Sec. 12. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD

$

...,000

$

...,000

6.4 6.5

Sec. 13. MINNESOTA MANAGEMENT AND BUDGET

$

..,...,000

$

..,...,000

6.6$...,000 the first year and $...,000 the second
6.7year are for zero-based budgeting activities.
6.8$...,000 the first year and $...,000 the second
6.9year are for actuarial studies required for the
6.10early retirement incentives authorized under
6.11Minnesota Statutes, section 43A.347.

6.12

Sec. 14. REVENUE

6.13

Subdivision 1.Total Appropriation

$

...,...,000

$

...,...,000

6.14	Appropriations by Fund
6.15		2012	2013
6.16	General	...,...,000	...,...,000
6.17	Health Care Access	.,...,000	.,...,000
6.18 6.19	Highway User Tax Distribution	.,...,000	.,...,000
6.20	Environmental	...,000	...,000

6.21The amounts that may be spent for each
6.22purpose are specified in subdivisions 2 and 3.
6.23The commissioner must implement
6.24any reduction in funding by reducing
6.25administrative support functions before any
6.26reduction to compliance and enforcement
6.27programs.

6.28

Subd. 2.Tax System Management

...,...,000

...,...,000

6.29	Appropriations by Fund
6.30	General	...,...,000	...,...,000
6.31	Health Care Access	.,...,000	.,...,000
6.32 6.33	Highway User Tax Distribution	.,...,000	.,...,000
6.34	Environmental	...,000	...,000

6.35

Subd. 3.Debt Collection Management

..,...,000

..,...,000

7.1

Sec. 15. GAMBLING CONTROL

$

.,...,000

$

.,...,000

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

7.5

Sec. 16. RACING COMMISSION

$

...,000

$

...,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

$

...,000

$

...,000

7.10

Sec. 18. EXPLORE MINNESOTA TOURISM

$

..,...,000

$

..,...,000

7.11(a) Of this amount, $..,000 each year is for a
7.12grant to the Upper Minnesota Film Office.
7.13(b)(1) To develop maximum private sector
7.14involvement in tourism, $500,000 the first
7.15year and $500,000 the second year must
7.16be matched by Explore Minnesota Tourism
7.17from nonstate sources. Each $1 of state
7.18incentive must be matched with $3 of private
7.19sector funding. Cash match is defined as
7.20revenue to the state or documented cash
7.21expenditures directly expended to support
7.22Explore Minnesota Tourism programs. Up
7.23to one-half of the private sector contribution
7.24may be in-kind or soft match. The incentive
7.25in the first year shall be based on fiscal
7.26year 2011 private sector contributions. The
7.27incentive in the second year will be based on
7.28fiscal year 2012 private sector contributions.
7.29This incentive is ongoing.
7.30(2) Funding for the marketing grants is
7.31available either year of the biennium.
8.1Unexpended grant funds from the first year
8.2are available in the second year.
8.3(3) Unexpended money from the general
8.4fund appropriations made under this section
8.5does not cancel but must be placed in a
8.6special marketing account for use by Explore
8.7Minnesota Tourism for additional marketing
8.8activities.
8.9(c) ...,000 the first year and $...,000 the
8.10second year are for the Minnesota Film and
8.11TV Board. The appropriation in each year
8.12is available only upon receipt by the board
8.13of $1 in matching contributions of money or
8.14in-kind contributions from nonstate sources
8.15for every $3 provided by this appropriation,
8.16except that each year up to $50,000 is
8.17available on July 1 even if the required
8.18matching contribution has not been received
8.19by that date.

8.20 8.21

Sec. 19. MINNESOTA HISTORICAL SOCIETY

8.22

Subdivision 1.Total Appropriation

$

..,...,000

$

..,...,000

8.23The amounts that may be spent for each
8.24purpose are specified in the following
8.25subdivisions.

8.26

Subd. 2.Education and Outreach

..,...,000

..,...,000

8.27Notwithstanding Minnesota Statutes, section
8.28138.668, the Minnesota Historical Society
8.29may not charge a fee for its general tours at
8.30the Capitol, but may charge fees for special
8.31programs other than general tours.

8.32

Subd. 3.Preservation and Access

.,...,000

.,...,000

8.33

Subd. 4.Fiscal Agent

9.1

(a) Minnesota International Center

..,000

..,000

9.2

(b) Minnesota Air National Guard Museum

..,000

..,000

9.3

(c) Minnesota Military Museum

...,000

..,000

9.4

(d) Farmamerica

...,000

...,000

9.5

(e) Balances Forward

9.6Any unencumbered balance remaining in
9.7this subdivision the first year does not cancel
9.8but is available for the second year of the
9.9biennium.

9.10

Subd. 5.Fund Transfer

9.11The Minnesota Historical Society may
9.12reallocate funds appropriated in and between
9.13subdivisions 2 and 3 for any program
9.14purposes and the appropriations are available
9.15in either year of the biennium.

9.16

Sec. 20. BOARD OF THE ARTS

9.17

Subdivision 1.Total Appropriation

$

.,...,000

$

.,...,000

9.18The amounts that may be spent for each
9.19purpose are specified in the following
9.20subdivisions.

9.21

Subd. 2.Operations and Services

...,000

...,000

9.22

Subd. 3.Grants Program

.,...,000

.,...,000

9.23

Subd. 4.Regional Arts Councils

.,...,000

.,...,000

9.24 9.25

Sec. 21. MINNESOTA HUMANITIES CENTER

$

...,000

$

...,000

9.26$...,000 the first year and $...,000 the second
9.27year are for a grant to the Council on Black
9.28Minnesotans established under Minnesota
9.29Statutes, section 3.9225, for the duties of the
9.30council.
10.1$...,000 the first year and $...,000 the second
10.2year are for a grant to the Council on
10.3Asian-Pacific Minnesotans established under
10.4Minnesota Statutes, section 3.9226, for the
10.5duties of the council.
10.6$...,000 the first year and $...,000 the second
10.7year are for a grant to the Council on the
10.8Affairs of Chicano-Latino People established
10.9under Minnesota Statutes, section 3.9223, for
10.10the duties of the council.
10.11$...,000 the first year and $...,000 the
10.12second year are for a grant to the Indian
10.13Affairs Council established under Minnesota
10.14Statutes, section 3.922, for the duties of the
10.15council. The grant must include $...,000
10.16each year for a cultural resources specialist
10.17to assist the council with the duties assigned
10.18to it relating to Indian burial grounds under
10.19Minnesota Statutes, section 307.08.
10.20By January 15 of each year, each council
10.21receiving a grant under this section shall
10.22submit a report to the chairs and ranking
10.23minority members of the legislative
10.24committees with jurisdiction over the
10.25council. The report must describe the results
10.26obtained with the use of the grant, including
10.27a description and evaluation of how the
10.28council accomplished its statutory duties in
10.29the preceding year.

10.30

Sec. 22. PUBLIC FACILITIES AUTHORITY

$

..,000

$

..,000

10.31For the small community wastewater
10.32treatment program under Minnesota Statutes,
10.33chapter 446A.

11.1 11.2

Sec. 23. SCIENCE MUSEUM OF MINNESOTA

$

...,000

$

...,000

11.3

Sec. 24. TORT CLAIMS

$

...,000

$

...,000

11.4These appropriations are to be spent by
11.5the commissioner of finance according
11.6to Minnesota Statutes, section 3.736,
11.7subdivision 7. If the appropriation for either
11.8year is insufficient, the appropriation for the
11.9other year is available for it.

11.10 11.11

Sec. 25. MINNESOTA STATE RETIREMENT SYSTEM

11.12

Subdivision 1.Total Appropriation

$

.,...,000

$

.,...,000

11.13The amounts that may be spent for each
11.14purpose are specified in the following
11.15subdivisions.

11.16

Subd. 2.Legislators

.,...,000

.,...,000

11.17Under Minnesota Statutes, sections 3A.03,
11.18subdivision 2; 3A.04, subdivisions 3 and 4;
11.19and 3A.115.

11.20

Subd. 3. Constitutional Officers

...,000

...,000

11.21Under Minnesota Statutes, section 352C.001.
11.22If an appropriation in this section for either
11.23year is insufficient, the appropriation for the
11.24other year is available for it.

11.25

Sec. 26. MERF DIVISION ACCOUNT

$

.,...,000

$

.,...,000

11.26These amounts are estimated to be needed
11.27under Minnesota Statutes, section 353.505.

11.28 11.29

Sec. 27. TEACHERS RETIREMENT ASSOCIATION

$

..,...,000

$

..,...,000

12.1The amounts estimated to be needed are as
12.2follows:
12.3(a) Special direct state aid. $..,...,000 the
12.4first year and $...,...,000 the second year
12.5are for special direct state aid authorized
12.6under Minnesota Statutes, section 354A.12,
12.7subdivisions 3a and 3c.
12.8(b) Special direct state matching aid.
12.9$.,...,000 the first year and $.,...,000 the
12.10second year are for special direct state
12.11matching aid authorized under Minnesota
12.12Statutes, section 354A.12, subdivision 3b.

12.13 12.14

Sec. 28. ST. PAUL TEACHERS RETIREMENT FUND

$

.,...,000

$

.,...,000

12.15The amounts estimated to be needed for
12.16special direct state aid to first class city
12.17teachers retirement funds authorized under
12.18Minnesota Statutes, section 354A.12,
12.19subdivisions 3a and 3c.

12.20 12.21

Sec. 29. DULUTH TEACHERS RETIREMENT FUND

$

...,000

$

...,000

12.22The amounts estimated to be needed for
12.23special direct state aid to first class city
12.24teachers retirement funds authorized under
12.25Minnesota Statutes, section 354A.12,
12.26subdivisions 3a and 3c.

12.27

Sec. 30. STATE LOTTERY

12.28Notwithstanding Minnesota Statutes, section
12.29349A.10, subdivision 3, the operating budget
12.30must not exceed $..,...,000 in fiscal year 2012
12.31and $..,...,000 in fiscal year 2013.

13.1 13.2

Sec. 31. GENERAL CONTINGENT ACCOUNTS

$

.,...,000

$

...,000

13.3	Appropriations by Fund
13.4		2012	2013
13.5	General	.,...,000	.,...,000
13.6 13.7	State Government Special Revenue	...,000	...,000
13.8 13.9	Workers' Compensation	...,000	...,000

13.10(a) The appropriations in this section
13.11may only be spent with the approval of
13.12the governor after consultation with the
13.13Legislative Advisory Commission pursuant
13.14to Minnesota Statutes, section 3.30.
13.15(b) If an appropriation in this section for
13.16either year is insufficient, the appropriation
13.17for the other year is available for it.
13.18(c) If a contingent account appropriation
13.19is made in one fiscal year, it should be
13.20considered a biennial appropriation.

13.21    Sec. 32. PROBLEM GAMBLING APPROPRIATION.
13.22$225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from
13.23the lottery prize fund to the Gambling Control Board for a grant to the state affiliate
13.24recognized by the National Council on Problem Gambling. The affiliate must provide
13.25services to increase public awareness of problem gambling, education and training for
13.26individuals and organizations providing effective treatment services to problem gamblers
13.27and their families, and research relating to problem gambling. These services must be
13.28complimentary to and not duplicative of the services provided through the problem
13.29gambling program administered by the commissioner of human services.

13.30    Sec. 33. SAVINGS; APPROPRIATION REDUCTION.
13.31    Subdivision 1. Executive and judicial branch agencies. The commissioner of
13.32management and budget must reduce general fund appropriations to executive and judicial
13.33branch agencies for agency operations for the biennium ending June 30, 2013, by $.......
14.1To the greatest extent possible, these reductions must come from savings provided by the
14.2reforms, efficiencies, and cost-savings measures contained in this act, including:
14.3(1) reduction in the number of full-time equivalent employees;
14.4(2) salary and benefit changes;
14.5(3) elimination of deputy and assistant commissioner positions;
14.6(4) operational efficiencies and cost savings obtained under contracts with vendors;
14.7and
14.8(5) verification of dependent eligibility for state employee group insurance coverage.
14.9If operational efficiencies and cost savings obtained under contracts with vendors
14.10yield savings in dedicated funds other than those established in the state constitution or
14.11protected by federal law, the commissioner of management and budget may transfer
14.12the amount of savings to the general fund.
14.13    Subd. 2. Legislature. The commissioner of management and budget must reduce
14.14general fund appropriations to the legislature for the biennium ending June 30, 2013, by
14.15$....... To the greatest extent possible, these reductions must come from savings provided
14.16by the salary and benefit changes contained in this act.
14.17The commissioner must provide notice of proposed reductions under this subdivision
14.18to the Legislative Advisory Commission 30 days before the reductions take effect.

14.21

Section 1. MILITARY AFFAIRS APPROPRIATIONS.

14.22The sums shown in the columns marked "Appropriations" are appropriated to the
14.23agencies and for the purposes specified in this article. The appropriations are from the
14.24general fund and are available for the fiscal years indicated for each purpose. The figures
14.25"2012" and "2013" used in this article mean that the appropriations listed under them are
14.26available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The
14.27first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is
14.28fiscal years 2012 and 2013.

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

14.33

Sec. 2. MILITARY AFFAIRS

14.34

Subdivision 1.Total Appropriation

$

..,...,000

$

..,...,000

15.1The amounts that may be spent for each
15.2purpose are specified in the following
15.3subdivisions.

15.4

Subd. 2.Maintenance of Training Facilities

.,...,000

.,...,000

15.5

Subd. 3.General Support

.,...,000

.,...,000

15.6

Subd. 4.Enlistment Incentives

..,...,000

..,...,000

15.7$1,500,000 each year is for the National
15.8Guard's tuition reimbursement program. This
15.9is a onetime appropriation.
15.10If appropriations for either year of the
15.11biennium are insufficient, the appropriation
15.12from the other year is available. The
15.13appropriations for enlistment incentives are
15.14available until expended.

15.15

Sec. 3. VETERANS AFFAIRS

15.16

Subdivision 1.Total Appropriation

$

..,...,000

$

..,...,000

15.17	Appropriations by Fund
15.18		2012	2013
15.19	General	..,000,000	..,000,000
15.20	Special Revenue	...,000	...,000

15.21The amounts that may be spent for each
15.22purpose are specified in the following
15.23subdivisions.

15.24

Subd. 2.Veterans Services

..,...,000

..,...,000

15.25$100,000 in the first year is from the
15.26"Support Our Troops" account established
15.27under Minnesota Statutes, section 190.19,
15.28subdivision 2a, for a grant to the Minnesota
15.29Assistance Council for Veterans. This is a
15.30onetime appropriation.
15.31$...,000 each year is for the higher education
15.32veterans assistance program under Minnesota
16.1Statutes, section 197.585. This is a onetime
16.2appropriation.
16.3The amount appropriated from the general
16.4fund under Minnesota Statutes, section
16.5197.791, subdivision 6, to pay benefit
16.6amounts under Minnesota Statutes, section
16.7197.791, subdivision 5, must not exceed
16.8$...,000 the first year and $...,000 the second
16.9year.
16.10 $...,000 each year is for grants to the
16.11following congressionally chartered veterans
16.12service organizations, as designated by the
16.13commissioner: Disabled American Veterans,
16.14Military Order of the Purple Heart, the
16.15American Legion, Veterans of Foreign Wars,
16.16Vietnam Veterans of America, AMVETS,
16.17and Paralyzed Veterans of America. This
16.18funding must be allocated in direct proportion
16.19to the funding currently being provided by
16.20the commissioner to these organizations.

16.21

Subd. 3.Veterans Homes

..,...,000

..,...,000

16.22Veterans Homes Special Revenue Account.
16.23The general fund appropriations made to
16.24the department may be transferred to a
16.25veterans homes special revenue account in
16.26the special revenue fund in the same manner
16.27as other receipts are deposited according
16.28to Minnesota Statutes, section 198.34, and
16.29are appropriated to the department for the
16.30operation of veterans homes facilities and
16.31programs.

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

16.33

Sec. 4. VETERANS HOMES

17.1Of the appropriation in Laws 2009, chapter
17.294, article 3, section 2, subdivision 3, or from
17.3funds carried forward from fiscal year 2009:
17.4(1) $1,000,000 $800,000 in fiscal year 2011
17.5is for operational expenses related to the
17.621-bed addition at the Fergus Falls Veterans
17.7Home and $200,000 is for start-up costs at
17.8the Minneapolis adult day care center, and
17.9any money unspent at the end of fiscal year
17.102011 for either of these purposes carries
17.11forward and is available in fiscal year 2012;
17.12and
17.13(2) $113,000 in fiscal year 2011 is for start-up
17.14expenses related to the opening of an adult
17.15daycare day care facility at the Minneapolis
17.16Veterans Home.
17.17EFFECTIVE DATE.This section is effective the day following final enactment.

17.18    Sec. 5. REPEALER.
17.19Minnesota Statutes 2010, section 197.585, subdivision 5, is repealed.
17.20EFFECTIVE DATE.This section is effective the day following final enactment.


17.23    Section 1. [3D.01] SHORT TITLE.
17.24This chapter may be cited as the "Minnesota Sunset Act."

17.25    Sec. 2. [3D.02] DEFINITIONS.
17.26    Subdivision 1. Scope. The definitions in this section apply to this chapter.
17.27    Subd. 2. Advisory committee. "Advisory committee" means a committee, council,
17.28commission, or other entity created under state law whose primary function is to advise
17.29a state agency.
17.30    Subd. 3. Commission. "Commission" means the Sunset Advisory Commission.
17.31    Subd. 4. State agency. "State agency" means an agency expressly made subject
17.32to this chapter.

18.1    Sec. 3. [3D.03] SUNSET ADVISORY COMMISSION.
18.2    Subdivision 1. Membership. The Sunset Advisory Commission consists of 12
18.3members appointed as follows:
18.4(1) five senators and one public member, appointed according to the rules of the
18.5senate, with no more than three senators from the majority caucus; and
18.6(2) five members of the house of representatives and one public member, appointed
18.7by the speaker of the house, with no more than three of the house members from the
18.8majority caucus.
18.9    Subd. 2. Public member restrictions. An individual is not eligible for appointment
18.10as a public member if the individual or the individual's spouse is:
18.11(1) regulated by a state agency that the commission will review during the term for
18.12which the individual would serve;
18.13(2) employed by, participates in the management of, or directly or indirectly has
18.14more than a ten percent interest in a business entity or other organization regulated by a
18.15state agency the commission will review during the term for which the individual would
18.16serve; or
18.17(3) required to register as a lobbyist under chapter 10A because of the person's
18.18activities for compensation on behalf of a profession or entity related to the operation of
18.19an agency under review.
18.20    Subd. 3. Removal. (a) It is a ground for removal of a public member from the
18.21commission if the member does not have the qualifications required by subdivision 2
18.22for appointment to the commission at the time of appointment or does not maintain the
18.23qualifications while serving on the commission. The validity of the commission's action is
18.24not affected by the fact that it was taken when a ground for removal of a public member
18.25from the commission existed.
18.26(b) Except as provided in paragraph (a), a public member may be removed only as
18.27provided in section 15.0575, subdivision 4.
18.28    Subd. 4. Terms. Legislative members serve at the pleasure of the appointing
18.29authority. Public members serve two-year terms expiring the first Monday in January of
18.30each odd-numbered year.
18.31    Subd. 5. Limits. Members are subject to the following restrictions:
18.32(1) after an individual serves four years on the commission, the individual is not
18.33eligible for appointment to another term or part of a term;
18.34(2) a legislative member who serves a full term may not be appointed to an
18.35immediately succeeding term; and
19.1(3) a public member may not serve consecutive terms, and, for purposes of this
19.2prohibition, a member is considered to have served a term only if the member has served
19.3more than one-half of the term.
19.4    Subd. 6. Appointments. Appointments must be made before the first Monday of
19.5January of each odd-numbered year.
19.6    Subd. 7. Legislative members. If a legislative member ceases to be a member
19.7of the legislative body from which the member was appointed, the member vacates
19.8membership on the commission.
19.9    Subd. 8. Vacancies. If a vacancy occurs, the appointing authority shall appoint a
19.10person to serve for the remainder of the unexpired term in the same manner as the original
19.11appointment.
19.12    Subd. 9. Officers. The commission shall have a chair and vice-chair as presiding
19.13officers.
19.14    Subd. 10. Quorum; voting. Seven members of the commission constitute a
19.15quorum. A final action or recommendation may not be made unless approved by a
19.16recorded vote of at least seven members. All other actions by the commission shall be
19.17decided by a majority of the members present and voting.
19.18    Subd. 11. Compensation. Each public member shall be reimbursed for expenses
19.19as provided in section 15.0575. Compensation for legislators is as determined by the
19.20members' legislative chamber.

19.21    Sec. 4. [3D.04] STAFF.
19.22The Legislative Coordinating Commission shall provide staff and administrative
19.23services for the commission.

19.24    Sec. 5. [3D.05] RULES.
19.25The commission may adopt rules necessary to carry out this chapter.

19.26    Sec. 6. [3D.06] AGENCY REPORT TO COMMISSION.
19.27Before September 1 of the odd-numbered year before the year in which a state
19.28agency is sunset, the agency commissioner shall report to the commission:
19.29(1) information regarding the application to the agency of the criteria in section
19.303D.10;
19.31(2) a priority-based budget for the agency;
19.32(3) an inventory of all boards, commissions, committees, and other entities related
19.33to the agency; and
20.1(4) any other information that the agency commissioner considers appropriate or that
20.2is requested by the commission.

20.3    Sec. 7. [3D.07] COMMISSION DUTIES.
20.4Before January 1 of the year in which a state agency subject to this chapter and its
20.5advisory committees are sunset, the commission shall:
20.6(1) review and take action necessary to verify the reports submitted by the agency;
20.7and
20.8(2) conduct a review of the agency based on the criteria provided in section 3D.10
20.9and prepare a written report.

20.10    Sec. 8. [3D.08] PUBLIC HEARINGS.
20.11Before February 1 of the year a state agency subject to this chapter and its advisory
20.12committees are sunset, the commission shall conduct public hearings concerning but not
20.13limited to the application to the agency of the criteria provided in section 3D.10.

20.14    Sec. 9. [3D.09] COMMISSION REPORT.
20.15By February 1 of each even-numbered year, the commission shall present to the
20.16legislature and the governor a report on the agencies and advisory committees reviewed.
20.17In the report the commission shall include:
20.18(1) its findings regarding the criteria prescribed by section 3D.10;
20.19(2) its recommendations based on the matters prescribed by section 3D.11; and
20.20(3) other information the commission considers necessary for a complete review
20.21of the agency.

20.22    Sec. 10. [3D.10] CRITERIA FOR REVIEW.
20.23The commission and its staff shall consider the following criteria in determining
20.24whether a public need exists for the continuation of a state agency or its advisory
20.25committees or for the performance of the functions of the agency or its advisory
20.26committees:
20.27(1) the efficiency and effectiveness with which the agency or the advisory committee
20.28operates;
20.29(2) an identification of the mission, goals, and objectives intended for the agency or
20.30advisory committee and of the problem or need that the agency or advisory committee
20.31was intended to address and the extent to which the mission, goals, and objectives have
20.32been achieved and the problem or need has been addressed;
21.1(3) an identification of any activities of the agency in addition to those granted by
21.2statute and of the authority for those activities and the extent to which those activities
21.3are needed;
21.4(4) an assessment of authority of the agency relating to fees, inspections,
21.5enforcement, and penalties;
21.6(5) whether less restrictive or alternative methods of performing any function that
21.7the agency performs could adequately protect or provide service to the public;
21.8(6) the extent to which the jurisdiction of the agency and the programs administered
21.9by the agency overlap or duplicate those of other agencies, the extent to which the agency
21.10coordinates with those agencies, and the extent to which the programs administered by the
21.11agency can be consolidated with the programs of other state agencies;
21.12(7) the promptness and effectiveness with which the agency addresses complaints
21.13concerning entities or other persons affected by the agency, including an assessment of the
21.14agency's administrative hearings process;
21.15(8) an assessment of the agency's rulemaking process and the extent to which the
21.16agency has encouraged participation by the public in making its rules and decisions and
21.17the extent to which the public participation has resulted in rules that benefit the public;
21.18(9) the extent to which the agency has complied with federal and state laws and
21.19applicable rules regarding equality of employment opportunity and the rights and privacy
21.20of individuals, and state law and applicable rules of any state agency regarding purchasing
21.21guidelines and programs for historically underutilized businesses;
21.22(10) the extent to which the agency issues and enforces rules relating to potential
21.23conflicts of interest of its employees;
21.24(11) the extent to which the agency complies with chapter 13 and follows records
21.25management practices that enable the agency to respond efficiently to requests for public
21.26information; and
21.27(12) the effect of federal intervention or loss of federal funds if the agency is
21.28abolished.

21.29    Sec. 11. [3D.11] RECOMMENDATIONS.
21.30(a) In its report on a state agency, the commission shall:
21.31(1) make recommendations on the abolition, continuation, or reorganization of each
21.32affected state agency and its advisory committees and on the need for the performance of
21.33the functions of the agency and its advisory committees;
22.1(2) make recommendations on the consolidation, transfer, or reorganization of
22.2programs within state agencies not under review when the programs duplicate functions
22.3performed in agencies under review; and
22.4(3) make recommendations to improve the operations of the agency, its policy body,
22.5and its advisory committees, including management recommendations that do not require
22.6a change in the agency's enabling statute.
22.7(b) The commission shall include the estimated fiscal impact of its recommendations
22.8and may recommend appropriation levels for certain programs to improve the operations
22.9of the state agency.
22.10(c) The commission shall have drafts of legislation prepared to carry out the
22.11commission's recommendations under this section, including legislation necessary
22.12to continue the existence of agencies that would otherwise sunset if the commission
22.13recommends continuation of an agency.
22.14(d) After the legislature acts on the report under section 3D.09, the commission shall
22.15present to the legislative auditor the commission's recommendations that do not require
22.16a statutory change to be put into effect. Subject to the legislative audit commission's
22.17approval, the legislative auditor may examine the recommendations and include as part
22.18of the next audit of the agency a report on whether the agency has implemented the
22.19recommendations and, if so, in what manner.

22.20    Sec. 12. [3D.12] MONITORING OF RECOMMENDATIONS.
22.21During each legislative session, the staff of the commission shall monitor legislation
22.22affecting agencies that have undergone sunset review and shall periodically report
22.23to the members of the commission on proposed changes that would modify prior
22.24recommendations of the commission.

22.25    Sec. 13. [3D.13] REVIEW OF ADVISORY COMMITTEES.
22.26An advisory committee, the primary function of which is to advise a particular state
22.27agency, is subject to sunset on the date set for sunset of the agency unless the advisory
22.28committee is expressly continued by law.

22.29    Sec. 14. [3D.14] CONTINUATION BY LAW.
22.30During the regular session immediately before the sunset of a state agency or an
22.31advisory committee that is subject to this chapter, the legislature may enact legislation
22.32to continue the agency or advisory committee for a period not to exceed 12 years. This
22.33chapter does not prohibit the legislature from:
23.1(1) terminating a state agency or advisory committee subject to this chapter at a date
23.2earlier than that provided in this chapter; or
23.3(2) considering any other legislation relative to a state agency or advisory committee
23.4subject to this chapter.

23.5    Sec. 15. [3D.15] PROCEDURE AFTER TERMINATION.
23.6    Subdivision 1. Termination. Unless otherwise provided by law:
23.7(1) if after sunset review a state agency is abolished, the agency may continue in
23.8existence until June 30 of the following year to conclude its business;
23.9(2) abolishment does not reduce or otherwise limit the powers and authority of the
23.10state agency during the concluding year;
23.11(3) a state agency is terminated and shall cease all activities at the expiration of
23.12the one-year period; and
23.13(4) all rules that have been adopted by the state agency expire at the expiration of
23.14the one-year period.
23.15    Subd. 2. Funds of abolished agency or advisory committee. (a) Any unobligated
23.16and unexpended appropriations of an abolished agency or advisory committee lapse on
23.17June 30 of the year after abolishment.
23.18(b) Except as provided by subdivision 4 or as otherwise provided by law, all money
23.19in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
23.20year after abolishment is transferred to the general fund. The part of the law dedicating
23.21the money to a specific fund of an abolished agency becomes void on June 30 of the year
23.22after abolishment.
23.23    Subd. 3. Property and records of abolished agency or advisory committee.
23.24Unless the governor designates an appropriate state agency as prescribed by subdivision 4,
23.25property and records in the custody of an abolished state agency or advisory committee
23.26on June 30 of the year after abolishment must be transferred to the commissioner of
23.27administration. If the governor designates an appropriate state agency, the property and
23.28records must be transferred to the designated state agency.
23.29    Subd. 4. Continuing obligations. (a) The legislature recognizes the state's
23.30continuing obligation to pay bonded indebtedness and all other obligations, including
23.31lease, contract, and other written obligations, incurred by a state agency or advisory
23.32committee abolished under this chapter, and this chapter does not impair or impede the
23.33payment of bonded indebtedness and all other obligations, including lease, contract, and
23.34other written obligations, in accordance with their terms. If an abolished state agency or
23.35advisory committee has outstanding bonded indebtedness or other outstanding obligations,
24.1including lease, contract, and other written obligations, the bonds and all other obligations,
24.2including lease, contract, and other written obligations, remain valid and enforceable in
24.3accordance with their terms and subject to all applicable terms and conditions of the laws
24.4and proceedings authorizing the bonds and all other obligations, including lease, contract,
24.5and other written obligations.
24.6(b) The governor shall designate an appropriate state agency that shall continue to
24.7carry out all covenants contained in the bonds and in all other obligations, including lease,
24.8contract, and other written obligations, and the proceedings authorizing them, including
24.9the issuance of bonds, and the performance of all other obligations, including lease,
24.10contract, and other written obligations, to complete the construction of projects or the
24.11performance of other obligations, including lease, contract, and other written obligations.
24.12(c) The designated state agency shall provide payment from the sources of payment
24.13of the bonds in accordance with the terms of the bonds and shall provide payment from
24.14the sources of payment of all other obligations, including lease, contract, and other written
24.15obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
24.16until the bonds and interest on the bonds are paid in full and all other obligations,
24.17including lease, contract, and other written obligations, are performed and paid in full.
24.18If the proceedings so provide, all funds established by laws or proceedings authorizing
24.19the bonds or authorizing other obligations, including lease, contract, and other written
24.20obligations, must remain with the comptroller or the previously designated trustees. If the
24.21proceedings do not provide that the funds remain with the comptroller or the previously
24.22designated trustees, the funds must be transferred to the designated state agency.

24.23    Sec. 16. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
24.24The commission may request the assistance of state agencies and officers. When
24.25assistance is requested, a state agency or officer shall assist the commission. In carrying
24.26out its functions under this chapter, the commission or its designated staff member may
24.27inspect the records, documents, and files of any state agency.

24.28    Sec. 17. [3D.17] RELOCATION OF EMPLOYEES.
24.29If an employee is displaced because a state agency or its advisory committee is
24.30abolished or reorganized, the state agency shall make a reasonable effort to relocate the
24.31displaced employee.

24.32    Sec. 18. [3D.18] SAVING PROVISION.
25.1Except as otherwise expressly provided, abolition of a state agency does not affect
25.2rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
25.3arose, or proceedings that were begun before the effective date of the abolition.

25.4    Sec. 19. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
25.5AGENCY.
25.6Each bill filed in a house of the legislature that would create a new state agency or
25.7a new advisory committee to a state agency shall be reviewed by the commission. The
25.8commission shall review the bill to determine if:
25.9(1) the proposed functions of the agency or committee could be administered by one
25.10or more existing state agencies or advisory committees;
25.11(2) the form of regulation, if any, proposed by the bill is the least restrictive form of
25.12regulation that will adequately protect the public;
25.13(3) the bill provides for adequate public input regarding any regulatory function
25.14proposed by the bill; and
25.15(4) the bill provides for adequate protection against conflicts of interest within
25.16the agency or committee.

25.17    Sec. 20. [3D.20] GIFTS AND GRANTS.
25.18The commission may accept gifts, grants, and donations from any organization
25.19described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding
25.20any activity under this chapter. All gifts, grants, and donations must be accepted in an
25.21open meeting by a majority of the voting members of the commission and reported in the
25.22public record of the commission with the name of the donor and purpose of the gift, grant,
25.23or donation. Money received under this section is appropriated to the commission.

25.24    Sec. 21. [3D.21] EXPIRATION.
25.25    Subdivision 1. Group 1. The following agencies are sunset and expire on June
25.2630, 2012: Department of Health, Department of Human Rights, Department of Human
25.27Services, all health-related licensing boards listed in section 214.01, Council on Affairs
25.28of Chicano/Latino People, Council on Black Minnesotans, Council on Asian-Pacific
25.29Minnesotans, Indian Affairs Council, Council on Disabilities, and all advisory groups
25.30associated with these agencies.
25.31    Subd. 2. Group 2. The following agencies are sunset and expire on June 30, 2014:
25.32Department of Education, Board of Teaching, Minnesota Office of Higher Education, and
25.33all advisory groups associated with these agencies.
26.1    Subd. 3. Group 3. The following agencies are sunset and expire on June 30, 2016:
26.2Department of Commerce, Department of Employment and Economic Development,
26.3Department of Labor and Industry, all non-health-related licensing boards listed in
26.4section 214.01 except as otherwise provided in this section, Explore Minnesota Tourism,
26.5Public Utilities Commission, Iron Range Resources and Rehabilitation Board, Bureau of
26.6Mediation Services, Combative Sports Commission, Amateur Sports Commission, and all
26.7advisory groups associated with these agencies.
26.8    Subd. 4. Group 4. The following agencies are sunset and expire on June 30, 2018:
26.9Department of Corrections, Department of Public Safety, Department of Transportation,
26.10Peace Officer Standards and Training Board, Corrections Ombudsman, and all advisory
26.11groups associated with these agencies.
26.12    Subd. 5. Group 5. The following agencies are sunset and expire on June 30, 2020:
26.13Department of Agriculture, Department of Natural Resources, Pollution Control Agency,
26.14Board of Animal Health, Board of Water and Soil Resources, and all advisory groups
26.15associated with these agencies.
26.16    Subd. 6. Group 6. The following agencies are sunset and expire on June 30, 2022:
26.17Department of Administration, Department of Management and Budget, Department of
26.18Military Affairs, Department of Revenue, Department of Veterans Affairs, Arts Board,
26.19Minnesota Zoo, Office of Administrative Hearings, Campaign Finance and Public
26.20Disclosure Board, Capitol Area Architectural and Planning Board, Office of Enterprise
26.21Technology, Minnesota Racing Commission, and all advisory groups associated with
26.22these agencies.
26.23    Subd. 7. Continuation. Following sunset review of an agency, the legislature may
26.24act within the same legislative session in which the sunset report was received on Sunset
26.25Advisory Commission recommendations to continue or reorganize the agency.
26.26    Subd. 8. Other groups. The commission may review, under the criteria in
26.27section 3D.10, and propose to the legislature an expiration date for any agency, board,
26.28commission, or program not listed in this section.

26.29    Sec. 22. Minnesota Statutes 2010, section 15.057, is amended to read:
26.3015.057 PUBLICITY REPRESENTATIVES AND LEGISLATIVE LIAISONS.
26.31    Subdivision 1. Publicity representatives. No state department, bureau, or division,
26.32whether the same operates on funds appropriated or receipts or fees of any nature
26.33whatsoever, except the Department of Transportation, the Department of Employment
26.34and Economic Development, the Game and Fish Division, State Agricultural Society, and
26.35Explore Minnesota Tourism shall use any of such funds for the payment of the salary or
27.1expenses of a publicity representative. The head of any such department, bureau, or
27.2division shall be personally liable for funds used contrary to this provision. This section
27.3subdivision shall not be construed, however, as preventing any such department, bureau,
27.4or division from sending out any bulletins or other publicity required by any state law or
27.5necessary for the satisfactory conduct of the business for which such department, bureau,
27.6or division was created.
27.7    Subd. 2. Legislative liaisons. No state agency may use any money appropriated to
27.8it for the salary or expenses of an individual serving as a liaison for the legislative affairs
27.9of the agency. This subdivision does not prevent any employee of a state agency from
27.10providing information requested by legislators and providing testimony at legislative
27.11hearings.

27.12    Sec. 23. Minnesota Statutes 2010, section 15.06, subdivision 8, is amended to read:
27.13    Subd. 8. Number of deputy commissioners. Unless specifically authorized by
27.14statute, other than section 43A.08, subdivision 2 Except for the Department of Veterans
27.15Affairs, no department or agency specified in subdivision 1 shall have more than one
27.16deputy commissioner. No department or agency specified in subdivision 1 may employ an
27.17assistant commissioner.

27.18    Sec. 24. Minnesota Statutes 2010, section 16A.10, subdivision 1a, is amended to read:
27.19    Subd. 1a. Purpose of performance data. Performance data shall be presented in
27.20the budget proposal to:
27.21(1) provide information so that the legislature can determine the extent to which
27.22state programs and activities are successful;
27.23(2) encourage agencies to develop clear and measurable goals and objectives for
27.24their programs and activities; and
27.25(3) strengthen accountability to Minnesotans by providing a record of state
27.26government's performance in providing effective and efficient services.

27.27    Sec. 25. Minnesota Statutes 2010, section 16A.10, subdivision 1b, is amended to read:
27.28    Subd. 1b. Performance data format. (a) As part of the budget proposal, agencies
27.29shall:
27.30(1) describe the goals and objectives of each agency program and activity; and
27.31(2) present performance data that measures the performance of programs and
27.32activities in meeting program goals and objectives.
28.1(b) Measures reported must be outcome-based and objective, and may include
28.2indicators of outputs, efficiency, outcomes, and other measures relevant to understanding
28.3each program and activity.
28.4(c) Agencies shall present as much historical information as needed to understand
28.5major trends and shall set targets for future performance issues where feasible and
28.6appropriate. The information shall appropriately highlight agency performance issues that
28.7would assist legislative review and decision making.
28.8(d) For purposes of this subdivision, subdivision 1a, and section 16A.106, the terms
28.9"program" and "activity" are used in the same manner as the terms are used in state
28.10budgeting. However, the commissioner may authorize an agency to define these terms in a
28.11different manner if that allows for a more effective presentation of performance data.

28.12    Sec. 26. Minnesota Statutes 2010, section 16A.10, subdivision 1c, is amended to read:
28.13    Subd. 1c. Performance measures for change items. For each change item in the
28.14budget proposal requesting new or increased funding, the budget document must present
28.15proposed performance measures that can be used to determine if the new or increased
28.16funding is accomplishing its goals. To the extent possible, each budget change item
28.17must identify relevant Minnesota Milestones and other statewide goals and indicators
28.18related to the proposed initiative. The commissioner must report to the Subcommittee on
28.19Government Accountability established under section 3.885, subdivision 10, regarding the
28.20format to be used for the presentation and selection of Minnesota Milestones and other
28.21statewide goals and indicators.

28.22    Sec. 27. Minnesota Statutes 2010, section 16A.103, subdivision 1a, is amended to read:
28.23    Subd. 1a. Forecast parameters. The forecast must assume the continuation of
28.24current laws and reasonable estimates of projected growth in the national and state
28.25economies and affected populations. Revenue must be estimated for all sources provided
28.26for in current law. Expenditures must be estimated for all obligations imposed by law and
28.27those projected to occur as a result of variables outside the control of the legislature.
28.28Expenditures for the current biennium must be based on actual appropriations or, for
28.29forecasted programs, the amount needed to fund the formula in law. The base for
28.30expenditures projections for the next biennium is the amount appropriated in the second
28.31year of the current biennium, or, for forecasted programs, the amount needed to fund the
28.32formula in law. Expenditure estimates must not include an allowance for inflation.

28.33    Sec. 28. [16A.106] ZERO-BASED BUDGETING PRINCIPLES.
29.1    Subdivision 1. Determination. Each biennium, the proposed budget for
29.2approximately half of the expenditure programs, as selected according to subdivision 2,
29.3must be prepared using the principles of zero-based budgeting specified in subdivision
29.44. Programs that are not designated for one biennium must be designated for the next
29.5biennium. Budgets for the legislative and judicial branches and for the Minnesota State
29.6Colleges and Universities must be prepared using principles of zero-based budgeting
29.7for the biennium beginning July 1, 2013, and for bienniums beginning every four years
29.8after that. The budget for the University of Minnesota must be prepared using principles
29.9of zero-based budgeting for the biennium beginning July 1, 2015, and for bienniums
29.10beginning every four years after that.
29.11    Subd. 2. Governor's determination. The governor must designate the expenditure
29.12programs for a biennium that will be prepared using zero-based budgeting principles. In
29.13making the designation the governor, in consultation with the chairs and lead minority
29.14members of the Senate Finance Committee and the House Ways and Means Committee,
29.15must attempt to balance the number of expenditure budgets that will be prepared using
29.16zero-based budgeting principles and the number that will not for each legislative finance
29.17committee. All of the programs within an agency must be assigned to use zero-based
29.18budgeting principles in the same year.
29.19    Subd. 3. Exceptions. Expenditures for debt service under section 16A.642,
29.20Subdivision 10, are exempt from the zero-based budgeting principles under this section.
29.21    Subd. 4. Zero-based budgeting principles. (a) For each program and activity
29.22subject to zero-based budgeting principles for a biennium, the detailed budget presented
29.23to the legislature must include:
29.24(1) a description of each budget activity for which the agency or entity receives
29.25an appropriation in the current biennium or for which the agency or entity requests an
29.26appropriation in the next biennium;
29.27(2) for each budget activity, three alternative funding levels or alternative ways of
29.28performing the budget activity, a summary of the priorities that would be accomplished
29.29within each level, and the additional increments of value that would be added by the
29.30higher funding levels; and
29.31(3) for each budget activity, performance data as specified in section 16A.10,
29.32subdivision 1b, the predicted effect of the three alternative funding levels on future
29.33performance, and also one or more measures of cost efficiency and effectiveness of
29.34program delivery, which must include comparisons to other states or entities with similar
29.35programs.
30.1(b) The commissioner's budget preparation guidelines and instructions must contain
30.2requirements, deadlines, and technical assistance to facilitate implementation of this
30.3section. After consultation with the legislative commission on planning and fiscal policy,
30.4the commissioner's instructions may establish parameters for the three alternative funding
30.5levels required in clause (3).
30.6    Subd. 5. Prioritization. In presenting budget recommendations to the legislature for
30.7those programs using zero-based budgeting principles, the governor's recommendations
30.8must prioritize the budget activities within an agency or program area. To the extent
30.9activities in more than one agency or program area are meeting the same goals, the
30.10recommendations must prioritize budget activities across agencies or programs with
30.11the same goals, and this prioritization must include agencies or programs not subject to
30.12zero-based budgeting principles that biennium.
30.13EFFECTIVE DATE.This section is first effective for budgets proposed for the
30.14biennium beginning July 1, 2013.

30.15    Sec. 29. Minnesota Statutes 2010, section 16A.11, subdivision 3, is amended to read:
30.16    Subd. 3. Part two: detailed budget. (a) Part two of the budget, the detailed budget
30.17estimates both of expenditures and revenues, must contain any statements on the financial
30.18plan which the governor believes desirable or which may be required by the legislature.
30.19The detailed estimates shall include the governor's budget arranged in tabular form.
30.20(b) For programs designated for the zero-based budgeting principles under section
30.2116A.106, the budget must be prepared according to the requirements of that section.
30.22(c) For programs not designated for zero based budgeting principles under section
30.2316A.106, tables listing expenditures for the next biennium must show the appropriation
30.24base for each yearas defined in section 16A.103, subdivision 1c. The appropriation base
30.25is the amount appropriated for the second year of the current biennium. The tables must
30.26separately show any adjustments to the base required by current law or policies of the
30.27commissioner of management and budget. For forecasted programs, the tables must also
30.28show the amount of the forecast adjustments, based on the most recent forecast prepared
30.29by the commissioner of management and budget under section 16A.103. For all programs,
30.30the tables must show the amount of appropriation changes recommended by the governor,
30.31after adjustments to the base and forecast adjustments, and the total recommendation of
30.32the governor for that year.
30.33(c) (d) The detailed estimates must include a separate line listing the total cost of
30.34professional and technical service contracts for the prior biennium and the projected costs
30.35of those contracts for the current and upcoming biennium. They must also include a
31.1summary of the personnel employed by the agency, reflected as full-time equivalent
31.2positions.
31.3(d) (e) The detailed estimates for internal service funds must include the number of
31.4full-time equivalents by program; detail on any loans from the general fund, including
31.5dollar amounts by program; proposed investments in technology or equipment of $100,000
31.6or more; an explanation of any operating losses or increases in retained earnings; and a
31.7history of the rates that have been charged, with an explanation of any rate changes and
31.8the impact of the rate changes on affected agencies.

31.9    Sec. 30. Minnesota Statutes 2010, section 16B.03, is amended to read:
31.1016B.03 APPOINTMENTS.
31.11The commissioner is authorized to appoint staff, including two one deputy
31.12commissioners commissioner, in accordance with chapter 43A.

31.13    Sec. 31. [16D.20] FEDERAL OFFSET PROGRAM.
31.14(a) The commissioner may enter into an agreement with the United States Secretary
31.15of the Treasury to participate in an offset program authorized under United States Code,
31.16title 31, section 3716, for the collection of debts owed to state agencies. The agreement
31.17may provide for the United States to submit debts owed to federal agencies for offset
31.18against state payments, similar to the procedures for offsetting debts owed to state
31.19agencies from federal payments.
31.20(b) The commissioner shall reduce any state payment by the amount of any federal
31.21debt submitted in accordance with the agreement authorized by this section, and pay such
31.22amount to the appropriate federal official in accordance with the procedures specified
31.23in such agreement.
31.24(c) The commissioner may, by rule, establish a reasonable administrative fee to be
31.25charged to the debtor for the contingency fee-based procession of state payment offsets for
31.26the recovery of federal nontax debts or the contingency fee-based processing of federal
31.27payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
31.28and may be withheld from any refund, reimbursement, or other money held for the debtor.

31.29    Sec. 32. Minnesota Statutes 2010, section 43A.08, subdivision 1, is amended to read:
31.30     Subdivision 1. Unclassified positions. Unclassified positions are held by employees
31.31who are:
31.32     (1) chosen by election or appointed to fill an elective office;
32.1     (2) heads of agencies required by law to be appointed by the governor or other
32.2elective officers, and the executive or administrative heads of departments, bureaus,
32.3divisions, and institutions specifically established by law in the unclassified service;
32.4     (3) deputy and assistant agency heads and one confidential secretary in the agencies
32.5listed in subdivision 1a and in the Office of Strategic and Long-Range Planning section
32.615.06, subdivision 1;
32.7     (4) the confidential secretary to each of the elective officers of this state and, for the
32.8secretary of state and state auditor, an additional deputy, clerk, or employee;
32.9     (5) intermittent help employed by the commissioner of public safety to assist in
32.10the issuance of vehicle licenses;
32.11     (6) employees in the offices of the governor and of the lieutenant governor and one
32.12confidential employee for the governor in the Office of the Adjutant General;
32.13     (7) employees of the Washington, D.C., office of the state of Minnesota;
32.14     (8) employees of the legislature and of legislative committees or commissions;
32.15provided that employees of the Legislative Audit Commission, except for the legislative
32.16auditor, the deputy legislative auditors, and their confidential secretaries, shall be
32.17employees in the classified service;
32.18     (9) presidents, vice-presidents, deans, other managers and professionals in
32.19academic and academic support programs, administrative or service faculty, teachers,
32.20research assistants, and student employees eligible under terms of the federal Economic
32.21Opportunity Act work study program in the Perpich Center for Arts Education and the
32.22Minnesota State Colleges and Universities, but not the custodial, clerical, or maintenance
32.23employees, or any professional or managerial employee performing duties in connection
32.24with the business administration of these institutions;
32.25     (10) officers and enlisted persons in the National Guard;
32.26     (11) attorneys, legal assistants, and three confidential employees appointed by the
32.27attorney general or employed with the attorney general's authorization;
32.28     (12) judges and all employees of the judicial branch, referees, receivers, jurors, and
32.29notaries public, except referees and adjusters employed by the Department of Labor
32.30and Industry;
32.31     (13) members of the State Patrol; provided that selection and appointment of State
32.32Patrol troopers must be made in accordance with applicable laws governing the classified
32.33service;
32.34     (14) examination monitors and intermittent training instructors employed by the
32.35Departments of Management and Budget and Commerce and by professional examining
33.1boards and intermittent staff employed by the technical colleges for the administration of
33.2practical skills tests and for the staging of instructional demonstrations;
33.3    (15) student workers;
33.4    (16) executive directors or executive secretaries appointed by and reporting to any
33.5policy-making board or commission established by statute;
33.6    (17) employees unclassified pursuant to other statutory authority;
33.7    (18) intermittent help employed by the commissioner of agriculture to perform
33.8duties relating to pesticides, fertilizer, and seed regulation;
33.9    (19) the administrators and the deputy administrators at the State Academies for the
33.10Deaf and the Blind; and
33.11    (20) chief executive officers in the Department of Human Services.

33.12    Sec. 33. [43A.175] SALARY FREEZE.
33.13(a) Effective July 1, 2011, and until June 30, 2013, a state employee may not receive
33.14a salary or wage increase. This section prohibits any increases, including but not limited
33.15to: across-the-board increases; cost-of-living adjustments; increases based on longevity;
33.16step increases; increases in the form of lump-sum payments; increases in employer
33.17contributions to deferred compensation plans; or any other pay grade adjustments of
33.18any kind. For purposes of this section, "salary or wage" does not include employer
33.19contributions toward the cost of medical or dental insurance premiums, provided that
33.20employee contributions to the costs of medical or dental insurance premiums are not
33.21decreased. This section does not prohibit an increase in the rate of salary and wages for an
33.22employee who is promoted or transferred to a position with greater responsibilities and
33.23with a higher salary or wage rate.
33.24(b) A state appointing authority may not enter into a collective bargaining agreement
33.25or implement a compensation plan that increases salary or wages in a manner prohibited
33.26by this section. Neither a state appointing authority nor an exclusive representative of state
33.27employees may request interest arbitration in relation to an increase in salary or wages that
33.28is prohibited by this section, and an arbitrator may not issue an award that would increase
33.29salary or wages in a manner prohibited by this section.
33.30EFFECTIVE DATE.Paragraph (b) is effective the day following final enactment.
33.31Paragraph (a) is effective June 30, 2011.

33.32    Sec. 34. Minnesota Statutes 2010, section 43A.23, subdivision 1, is amended to read:
33.33    Subdivision 1. General. (a) The commissioner is authorized to request proposals
33.34or to negotiate and to enter into contracts with parties which in the judgment of the
34.1commissioner are best qualified to provide service to the benefit plans. Contracts entered
34.2into are not subject to the requirements of sections 16C.16 to 16C.19. The commissioner
34.3may negotiate premium rates and coverage. The commissioner shall consider the cost of
34.4the plans, conversion options relating to the contracts, service capabilities, character,
34.5financial position, and reputation of the carriers, and any other factors which the
34.6commissioner deems appropriate. Each benefit contract must be for a uniform term of at
34.7least one year, but may be made automatically renewable from term to term in the absence
34.8of notice of termination by either party. A carrier licensed under chapter 62A is exempt
34.9from the taxes imposed by chapter 297I on premiums paid to it by the state.
34.10    (b) All self-insured hospital and medical service products must comply with coverage
34.11mandates, data reporting, and consumer protection requirements applicable to the licensed
34.12carrier administering the product, had the product been insured, including chapters 62J,
34.1362M, and 62Q. Any self-insured products that limit coverage to a network of providers
34.14or provide different levels of coverage between network and nonnetwork providers shall
34.15comply with section 62D.123 and geographic access standards for health maintenance
34.16organizations adopted by the commissioner of health in rule under chapter 62D.
34.17    (c) Notwithstanding paragraph (b), a self-insured hospital and medical product
34.18offered under sections 43A.22 to 43A.30 is not required to extend dependent coverage to
34.19an eligible employee's unmarried child under the age of 25 to the full extent required under
34.20chapters 62A and 62L. Dependent coverage must, at a minimum, extend to an eligible
34.21employee's unmarried child who is under the age of 19 or an unmarried child under the
34.22age of 25 who is a full-time student. A person who is at least 19 years of age but who is
34.23under the age of 25 and who is not a full-time student must be permitted to be enrolled as
34.24a dependent of an eligible employee until age 25 if the person:
34.25(1) was a full-time student immediately prior to being ordered into active military
34.26service, as defined in section 190.05, subdivision 5b or 5c;
34.27(2) has been separated or discharged from active military service; and
34.28(3) would be eligible to enroll as a dependent of an eligible employee, except that
34.29the person is not a full-time student.
34.30The definition of "full-time student" for purposes of this paragraph includes any student
34.31who by reason of illness, injury, or physical or mental disability as documented by
34.32a physician is unable to carry what the educational institution considers a full-time
34.33course load so long as the student's course load is at least 60 percent of what otherwise
34.34is considered by the institution to be a full-time course load. Any notice regarding
34.35termination of coverage due to attainment of the limiting age must include information
34.36about this definition of "full-time student."
35.1    (d) Beginning January 1, 2010 2012, the health insurance benefit plans offered
35.2in the commissioner's plan under section 43A.18, subdivision 2, and the managerial
35.3plan under section 43A.18, subdivision 3, to state employees, including legislators and
35.4legislative staff, must include an option for a be HSA-eligible high-deductible health plan
35.5plans with a $5,000 annual deductible option that is compatible with the definition of a
35.6high-deductible health plan in section 223 of the United States Internal Revenue Code.
35.7The following provisions apply:
35.8(1) the in-network annual out-of-pocket maximum for each annual deductible shall
35.9be $10,000;
35.10(2) the employer shall make a $1,500 deposit to an individual HSA and $2,500 for a
35.11family and the deposit is dependent upon available biennial appropriation for this purpose;
35.12(3) the plans must cover in-network preventive care at 100 percent not subject to
35.13the deductible and, once the deductible has been met, cover other care with no further
35.14enrollee cost-sharing; and
35.15(4) all premium amounts for the high-deductible health plans shall be paid by the
35.16employee.

35.17    Sec. 35. Minnesota Statutes 2010, section 43A.316, subdivision 8, is amended to read:
35.18    Subd. 8. Continuation of coverage. (a) A former employee of an employer
35.19participating in the program who is receiving a public pension disability benefit or an
35.20annuity or has met the age and service requirements necessary to receive an annuity under
35.21chapter 353, 353C, 354, 354A, 356, 423, 423A, 424, or Minnesota Statutes 2008, chapter
35.22422A, and the former employee's dependents, are eligible to participate in the program.
35.23This participation is at the person's expense unless a collective bargaining agreement or
35.24personnel policy provides otherwise. Premiums for these participants must be established
35.25by the commissioner and the participants shall pay all premium amounts. The plans shall
35.26be high-deductible health insurance plans with a $5,000 deductible.
35.27The commissioner may provide policy exclusions for preexisting conditions
35.28only when there is a break in coverage between a participant's coverage under the
35.29employment-based group insurance program and the participant's coverage under this
35.30section. An employer shall notify an employee of the option to participate under this
35.31paragraph no later than the effective date of retirement. The retired employee or the
35.32employer of a participating group on behalf of a current or retired employee shall notify
35.33the commissioner within 30 days of the effective date of retirement of intent to participate
35.34in the program according to the rules established by the commissioner.
36.1(b) The spouse of a deceased employee or former employee may purchase the
36.2benefits provided at premiums established by the commissioner if the spouse was a
36.3dependent under the employee's or former employee's coverage under this section at the
36.4time of the death. The spouse remains eligible to participate in the program as long as
36.5the group that included the deceased employee or former employee participates in the
36.6program. Coverage under this clause must be coordinated with relevant insurance benefits
36.7provided through the federally sponsored Medicare program.
36.8(c) The program benefits must continue in the event of strike permitted by section
36.9179A.18 , if the exclusive representative chooses to have coverage continue and the
36.10employee pays the total monthly premiums when due.
36.11(d) A participant who discontinues coverage may not reenroll.
36.12Persons participating under these paragraphs shall make appropriate premium
36.13payments in the time and manner established by the commissioner.
36.14EFFECTIVE DATE.This section is effective the day following final enactment.

36.15    Sec. 36. [43A.347] REDUCTION IN STATE WORK FORCE; EARLY
36.16RETIREMENT PROGRAM.
36.17    Subdivision 1. Required reduction. (a) The number of full-time equivalent
36.18employees employed in the executive branch, and the costs directly associated with
36.19employing those persons, must be reduced by at least 15 percent by June 30, 2015, and
36.20thereafter, compared to the number of full-time equivalent positions and the costs directly
36.21associated with those positions on July 1, 2011.
36.22(b) An appointing authority may use any or all of the following to achieve this
36.23requirement: attrition, a hard hiring freeze, early retirement incentives authorized in this
36.24section, restructuring of benefit or pension programs as authorized by other law, furloughs,
36.25and layoffs. The early retirement program in this section is enacted as a tool to assist in
36.26complying with the required 15 percent reduction.
36.27(c) For purposes of this section:
36.28(1) "costs directly associated" with employing people means the cost of salaries and
36.29benefits, including the costs of employer contributions to public pension plans; and
36.30(2) "executive branch" does not include the Minnesota State Colleges and
36.31Universities, and the State Patrol.
36.32    Subd. 2. Analysis. Before authorizing an early retirement incentive under
36.33subdivision 3 or 4, the commissioner must perform analysis, including actuarial analysis,
36.34as necessary to determine the maximum number of employees to whom incentives will be
36.35offered, and the percentage of resulting savings estimated to be needed to pay pension
37.1funds to cover costs to the funds of the incentive in this section. The commissioner must
37.2use this analysis in determining how to best implement this section. The commissioner
37.3may contract with the director of the Minnesota State Retirement System for assistance in
37.4preparing the analysis required by this subdivision.
37.5    Subd. 3. Pension early retirement incentive. (a) The commissioner of management
37.6and budget may authorize an executive branch appointing authority to offer an early
37.7retirement incentive under this subdivision to an employee who upon retirement would be
37.8immediately eligible to receive an annuity from the public pension plan under which the
37.9employee is covered immediately before separation from state service. The commissioner
37.10may establish time periods during which the incentive may be offered and during which
37.11the incentive must be accepted, may establish limits on the number of employees to whom
37.12an appointing authority, or all appointing authorities collectively, may offer the incentive,
37.13and may establish other conditions for the incentive.
37.14(b) For an employee offered an incentive under this subdivision, for each full
37.15year of service credit that the employee has in a plan administered by the Minnesota
37.16State Retirement System, the Public Employees Retirement Association, or the Teachers
37.17Retirement Association, the employee must be granted an additional month of service
37.18credit in the plan under which the employee is covered immediately before separation
37.19from state service under this subdivision.
37.20(c) Upon request of an appointing authority considering offering an incentive under
37.21this subdivision, the executive director of the public pension plan in which an employee
37.22would be granted additional service credit under this subdivision must prepare an estimate
37.23of the present value of the additional service credit that would be granted to an employee
37.24under this subdivision. For each employee accepting an incentive under this subdivision,
37.25the appointing authority offering the incentive must pay the applicable public pension
37.26plan, from the first dollars of savings achieved through offering the incentive, the present
37.27value of the additional service credit granted to the employee, taking into account the date
37.28payment will be received from the appointing authority. The appointing authority must
37.29make this payment to the pension plan within one year of the date the employee accepting
37.30the incentive leaves state service.
37.31    Subd. 4. Insurance early retirement incentive. The commissioner of management
37.32and budget may authorize an executive appointing authority to offer the incentive
37.33originally offered under Laws 2010, chapter 337, to employees who retire from state
37.34service during periods that the commissioner specifies before June 30, 2015. The terms and
37.35conditions specified in Laws 2010, chapter 337, apply to an incentive offered under this
37.36subdivision, except for the dates specified in that law for accepting the incentive and for
38.1retiring, and except that the prohibition on reemployment or contracting is for the period
38.2specified in this section, instead of the shorter period specified in Laws 2010, chapter 337.
38.3    Subd. 5. Best practices. In implementing this section, the commissioner of
38.4management and budget and affected agencies shall utilize best practices as identified by
38.5other states that have implemented early retirement programs.
38.6    Subd. 6. Hiring freeze. To promote streamlined government and reduced costs,
38.7no state appointing authority may fill by outside hire a position vacated through state
38.8employee participation in an early retirement incentive under this section.
38.9    Subd. 7. Reemployment prohibition. An employee who receives an early
38.10retirement incentive under this section may not be reemployed with the state or enter into
38.11a contract with the state as a consultant for five years after termination.
38.12    Subd. 8. Savings. Savings resulting from implementation of this section, after
38.13any payments made under subdivisions 3 and 4, must cancel back to the fund in which
38.14the savings occurred.
38.15    Subd. 9. Not applicable to elected officials. A state elected official is not a state
38.16employee for purposes of this section.
38.17    Subd. 10. Application of Public Employment Labor Relations Act. Unilateral
38.18implementation of this section, including, but not limited to, the provision of an early
38.19retirement incentive by the appointing authority is not an unfair labor practice under
38.20chapter 179A.

38.21    Sec. 37. Minnesota Statutes 2010, section 45.013, is amended to read:
38.2245.013 POWER TO APPOINT STAFF.
38.23The commissioner of commerce may appoint four one deputy commissioners, four
38.24assistant commissioners, and an assistant to the commissioner. Those positions, as well as
38.25that of and a confidential secretary, are in the unclassified service. The commissioner may
38.26appoint other employees necessary to carry out the duties and responsibilities entrusted to
38.27the commissioner.

38.28    Sec. 38. Minnesota Statutes 2010, section 84.01, subdivision 3, is amended to read:
38.29    Subd. 3. Employees; delegation. Subject to the provisions of Laws 1969, chapter
38.301129, and to other applicable laws The commissioner shall organize the department and
38.31employ up to three assistant commissioners, each of whom shall serve at the pleasure of
38.32the commissioner in the unclassified service, one of whom shall have responsibility for
38.33coordinating and directing the planning of every division within the agency, and such other
38.34officers, employees, and agents as the commissioner may deem necessary to discharge the
39.1functions of the department, define the duties of such officers, employees, and agents and
39.2to delegate to them any of the commissioner's powers, duties, and responsibilities subject
39.3to the control of, and under the conditions prescribed by, the commissioner. Appointments
39.4to exercise delegated power shall be by written order filed with the secretary of state.

39.5    Sec. 39. Minnesota Statutes 2010, section 116.03, subdivision 1, is amended to read:
39.6    Subdivision 1. Office. (a) The office of commissioner of the Pollution Control
39.7Agency is created and is under the supervision and control of the commissioner, who is
39.8appointed by the governor under the provisions of section 15.06.
39.9(b) The commissioner may appoint a deputy commissioner and assistant
39.10commissioners who shall be in the unclassified service.
39.11(c) The commissioner shall make all decisions on behalf of the agency that are not
39.12required to be made by the agency under section 116.02.

39.13    Sec. 40. Minnesota Statutes 2010, section 116J.01, subdivision 5, is amended to read:
39.14    Subd. 5. Departmental organization. (a) The commissioner shall organize the
39.15department as provided in section 15.06.
39.16(b) The commissioner may establish divisions and offices within the department.
39.17The commissioner may employ four deputy commissioners in the unclassified service.
39.18(c) The commissioner shall:
39.19(1) employ assistants and other officers, employees, and agents that the commissioner
39.20considers necessary to discharge the functions of the commissioner's office;
39.21(2) define the duties of the officers, employees, and agents, and delegate to them any
39.22of the commissioner's powers, duties, and responsibilities, subject to the commissioner's
39.23control and under conditions prescribed by the commissioner.
39.24(d) The commissioner shall ensure that there are at least three employment and
39.25economic development officers in state offices in nonmetropolitan areas of the state who
39.26will work with local units of government on developing local employment and economic
39.27development.

39.28    Sec. 41. Minnesota Statutes 2010, section 116J.035, subdivision 4, is amended to read:
39.29    Subd. 4. Delegation of powers. The commissioner may delegate, in written orders
39.30filed with the secretary of state, any powers or duties subject to the commissioner's
39.31control to officers and employees in the department. Regardless of any other law, the
39.32commissioner may delegate the execution of specific contracts or specific types of
39.33contracts to the commissioner's deputies, an assistant commissioner, deputy or a program
40.1director if the delegation has been approved by the commissioner of administration and
40.2filed with the secretary of state.

40.3    Sec. 42. Minnesota Statutes 2010, section 174.02, subdivision 2, is amended to read:
40.4    Subd. 2. Unclassified positions. The commissioner may establish four positions
40.5in the unclassified service at the appoint a deputy and assistant commissioner, assistant
40.6to commissioner or and a personal secretary levels. No more than two of these positions
40.7shall be at the deputy commissioner level in the unclassified service.

40.8    Sec. 43. Minnesota Statutes 2010, section 241.01, subdivision 2, is amended to read:
40.9    Subd. 2. Deputies Deputy. The commissioner of corrections may appoint and
40.10employ no more than two a deputy commissioners commissioner. The commissioner may
40.11also appoint a personal secretary, who shall serve at the commissioner's pleasure in the
40.12unclassified civil service.

40.13    Sec. 44. STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT
40.14ELIGIBILITY VERIFICATION AUDIT SERVICES.
40.15    Subdivision 1. Request for proposals. By ......., 2011, the commissioner of
40.16management and budget shall issue a request for proposals for a contract to provide
40.17dependent eligibility verification audit services for state-paid hospital, medical, and dental
40.18benefits provided to state employees and their dependents. The request for proposals
40.19must require that the vendor will:
40.20(1) conduct a document-model dependent eligibility verification audit of all plans
40.21offered under Minnesota Statutes, sections 43A.22 to 43A.31;
40.22(2) identify ineligible dependents covered by the plans and report those findings to
40.23the commissioner and third-party administrators of the state's employee health plans, as
40.24directed by the commissioner; and
40.25(3) implement a process for ongoing eligibility verification following the conclusion
40.26of the dependent eligibility verification audit required by this section.
40.27    Subd. 2. Additional vendor criteria. The request for proposals required by
40.28subdivision 1 must require the vendor to provide the following minimum capabilities and
40.29experience in performing the services described in subdivision 1:
40.30(1) a rules-based platform employing auto-adjudication for making objective
40.31eligibility determinations;
41.1(2) assigned eligibility advocates to assist employees through the verification
41.2process;
41.3(3) a formal claims and appeals process; and
41.4(4) experience in the performance of dependent eligibility verification audits for
41.5other states.
41.6    Subd. 3. Contract required. By ......., 2011, the commissioner must enter into
41.7a contract for the services specified in subdivision 1. The contract must incorporate a
41.8performance-based vendor financing option that compensates the vendor based on the
41.9amount of savings generated by the work performed under the contract.
41.10    Subd. 4. Managerial policy. The commissioner's duties and responsibilities under
41.11this section are matters of inherent managerial policy under Minnesota Statutes, section
41.12179A.07, subdivision 1. The commissioner is under no obligation to meet and negotiate
41.13concerning duties and responsibilities assigned to the commissioner under this section.

41.14    Sec. 45. STATE BUILDING EFFICIENCY.
41.15    Subdivision 1. Request for proposals. By July 1, 2011, the commissioner
41.16of administration shall issue a request for proposals for a contract to provide
41.17recommendations for efficiencies in state building management to the commissioner. The
41.18request for proposals shall require the vendor to provide a system that will overlay existing
41.19building controls and instrumentation that influence energy consumption, including space,
41.20equipment and system performance, facility operations, and facility maintenance. The
41.21request for proposals shall require the vendor to provide a system that provides concurrent
41.22building monitoring, energy consumption optimization, space utilization, and equipment
41.23performance information.
41.24    Subd. 2. Open platform system with data analytics. The request for proposals
41.25must require the vendor to provide: (1) an open platform system with the capability to
41.26integrate and coordinate a variety of control systems, including their data, and the ability
41.27to manage all state buildings and their control systems; and (2) a system that uses data
41.28analytics to integrate corrective action notification and work order management.
41.29    Subd. 3. Proof of concept phase. The request for proposals shall require the
41.30selected vendor, at no cost to the state, to begin work on the contract by implementing
41.31its proposed system on one to three instrumented state buildings to demonstrate the
41.32savings provided by the system. The system provided by the vendor must be capable of
41.33application to all state-owned buildings.
42.1    Subd. 4. Full implementation and payment. The request for proposal must require
42.2the state to implement the system provided by the vendor in all buildings owned by the
42.3state if the work done under the requirements of subdivision 3 provides material savings to
42.4the state. After the full implementation of the system provided by the vendor, the vendor
42.5shall be paid by the state from the savings attributable to the work done by the vendor,
42.6according to the terms and performance measures negotiated in the contract.
42.7    Subd. 5. Selection of vendor. The commissioner of administration shall select a
42.8vendor from the responses to the request for proposal by September 1, 2011.
42.9    Subd. 6. Progress report. The commissioner shall provide a report describing the
42.10progress made under this section to the governor and the chairs and ranking minority
42.11members of the legislative committees with jurisdiction over the commissioner of
42.12administration by January 15, 2012. The report shall provide a dynamic scoring analysis
42.13of the work described in the report.

42.14    Sec. 46. FLEET MANAGEMENT IMPROVEMENTS.
42.15    Subdivision 1. Request for proposals. By July 1, 2011, the commissioner of
42.16administration shall issue a request for proposals to improve the procurement, allocation,
42.17control, energy efficiency, maintenance, and in-service life of state vehicles. The request
42.18for proposal shall require the vendor to provide a system for:
42.19(1) a life-cycle solution for vehicle management, covering all stages from
42.20procurement through disposal of state vehicles; and
42.21(2) the integration of data analytics to provide vehicle tracking, usage, and proactive
42.22maintenance management.
42.23    Subd. 2. Proof of concept phase. The request for proposals must specify that the
42.24vendor, at no cost to the state, must implement its system in one vehicle maintenance
42.25facility on a sample group of vehicles to demonstrate the cost-savings potential of the
42.26recommendations.
42.27    Subd. 3. Full implementation and payment. The request for proposal must require
42.28the state to implement the recommendations provided by the vendor if the work done
42.29under the requirements of subdivision 2 provides material savings to the state. After the
42.30full implementation of the system provided by the vendor, the vendor shall be paid by
42.31the state from the savings attributable to the work done by the vendor, according to the
42.32terms and performance measures negotiated in the contract.
43.1    Subd. 4. Selection of vendor. The commissioner of administration shall select a
43.2vendor from the responses to the request for proposal by September 1, 2011.
43.3    Subd. 5. Progress report. The commissioner shall provide a report describing the
43.4progress made under this section to the governor and the chairs and ranking minority
43.5members of the legislative committees with jurisdiction over the commissioner of
43.6administration by January 15, 2012. The report shall provide a dynamic scoring analysis
43.7of the work described in the report.

43.8    Sec. 47. TAX FRAUD PREVENTION AND DETECTION.
43.9    Subdivision 1. Request for proposals. By July 1, 2011, the commissioner of
43.10revenue shall issue a request for proposals to prevent and detect tax fraud and increase
43.11delinquent tax revenue collection. The request for proposals shall require the vendor to
43.12provide data analytics capabilities, including, but not limited to, predictive modeling
43.13techniques and other forms of advanced analytics that will integrate into the current tax
43.14processing system to detect compliance issues before tax return processing is completed,
43.15and optimization algorithms that will assist the commissioner in maximizing revenues
43.16collected with current levels of compliance staff.
43.17    Subd. 2. Proof of concept phase. The selected vendor, at no cost to the state, shall
43.18implement its recommendations on a subset of data provided by the commissioner to
43.19demonstrate the cost-savings potential of the recommendations.
43.20    Subd. 3. Data confidentiality. Data provided to the vendor by the commissioner for
43.21the proof of concept phase must have personal identifiers masked or removed in order to
43.22maintain confidentiality of information.
43.23    Subd. 4. Full implementation phase. The request for proposal must require the
43.24state to implement the recommendations provided by the vendor if the work done under
43.25the requirements of subdivision 2 provides material savings to the state. After the full
43.26implementation of the system provided by the vendor, the vendor shall be paid by the state
43.27from the savings attributable to the work done by the vendor, according to the terms and
43.28performance measures negotiated in the contract.
43.29    Subd. 5. Selection of vendor. The commissioner of administration shall select a
43.30vendor from the responses to the request for proposal by September 1, 2011.
43.31    Subd. 6. Progress report. The commissioner shall provide a report describing the
43.32progress made under this section to the governor and the chairs and ranking minority
44.1members of the legislative committees with jurisdiction over the commissioner of revenue
44.2by January 15, 2012. The report shall provide a dynamic scoring analysis of the work
44.3described in the report.

44.4    Sec. 48. STRATEGIC SOURCING REQUEST FOR PROPOSALS.
44.5    Subdivision 1. Request for proposals. By July 1, 2011, the commissioner
44.6of administration shall issue a request for proposals for a contract to provide
44.7recommendations for efficiencies in strategic sourcing to the commissioner. For the
44.8purposes of this section, "strategic sourcing" has the meaning given in Minnesota Statutes,
44.9section 16C.02, subdivision 20. The request for proposals shall require the vendor to
44.10provide recommendations for improvements to methods used by the commissioner
44.11to analyze and reduce spending on goods and services, including, but not limited to,
44.12spend analysis, product standardization, contract consolidation, negotiations, multiple
44.13jurisdiction purchasing alliances, reverse and forward auctions, life-cycle costing, and
44.14other techniques.
44.15    Subd. 2. Proof of concept phase. The request for proposal shall require the selected
44.16vendor, at no cost to the state, to begin work on the contract by assisting the commissioner
44.17in implementing its proposed solution on selected state procurement processes to
44.18demonstrate the savings provided by the recommendations. The system provided by the
44.19vendor must be capable of application to the state procurement system.
44.20    Subd. 3. Full implementation and payment. The request for proposal must require
44.21the state to implement the recommendations provided by the vendor in the entire state
44.22procurement system if the work done under the requirements of subdivision 2 provides
44.23material savings to the state. After the full implementation of the system provided by the
44.24vendor, the vendor shall be paid by the state from the savings attributable to the work done
44.25by the vendor, according to the terms and performance measures negotiated in the contract.
44.26    Subd. 4. Selection of vendor. The commissioner of administration shall select a
44.27vendor from the responses to the request for proposal by September 1, 2011.
44.28    Subd. 5. Progress report. The commissioner shall provide a report describing the
44.29progress made under this section to the governor and the chairs and ranking minority
44.30members of the legislative committees with jurisdiction over the commissioner of
44.31administration by January 15, 2012."
44.32Delete the title and insert:
45.1relating to state government; amending Minnesota Statutes 2010, sections 15.057;
45.215.06, subdivision 8; 16A.10, subdivisions 1a, 1b, 1c; 16A.103, subdivision 1a;
45.316A.11, subdivision 3; 16B.03; 43A.08, subdivision 1; 43A.23, subdivision 1;
45.443A.316, subdivision 8; 45.013; 84.01, subdivision 3; 116.03, subdivision 1;
45.5116J.01, subdivision 5; 116J.035, subdivision 4; 174.02, subdivision 2; 241.01,
45.6subdivision 2; Laws 2010, chapter 215, article 6, section 4; proposing coding
45.7for new law in Minnesota Statutes, chapters 16A; 16D; 43A; proposing coding
45.8for new law as Minnesota Statutes, chapter 3D; repealing Minnesota Statutes
45.92010, section 197.585, subdivision 5."