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Jo Anne M. Zoff
State of Minnesota
S.F. No. 2874 - State Government Streamlining (Fourth Engrossment)
Author: Senator Lawrence Pogemiller
Prepared by: Darlene Sliwa, Senate Research (651/296-1890)
Date: April 21, 2010

Section 1 [Reorganization; Goals] provides the legislative findings that it is desirable to reorganize state services relating to business and employment to achieve several goals as specified.

Section 2 [Reorganization; Outcomes] specifies the outcomes that reorganization must achieve, including but not limited to: increased citizen access to pertinent, understandable information relating to business and employment; decentralization of the service delivery system combined with one-stop offering of related services; increased accountability by reducing the number of executive administrators reporting directly to the governor through a variety of strategies, including elimination of at least one state department and; increased development of businesses in emerging sectors, such as bioscience and other green-economy-related businesses.

Section 3 [Reorganization; Process], subdivision 1 (Working groups), paragraph (a) directs the Management Analysis Division of the Department of Management and Budget to provide facilitators to convene three working groups: (1) a working group consisting of ten to 15 persons from the Department of Employment and Economic Development (DEED) and the Department of Labor and Industry (DLI) who are members of a managerial plan; (2) a working group consisting of employees from DEED and DLI who are represented by exclusive representatives of employees of those agencies; and (3) a working group consisting of up to ten persons appointed by the Speaker of the House and up to ten persons appointed by the Senate Rules Committee from categories as specified.

Paragraph (b) directs each of the three working groups to meet separately to develop recommendations for a governmental structure to perform the functions and provide the services affected by section 5 in furtherance of the outcomes in section 2. Requires each group to complete its recommendations by October 1, 2010.

Subdivision 2 (Joint committee) directs each working group to select representatives to form a joint committee by September 1, 2010. Requires the joint committee to convene its first meeting by October 1, 2010, and to develop a recommendation. Specifies staffing. Requires the joint committee to submit its recommendation for reorganization to the Governor and the legislative committees with jurisdiction over state government and economic development by January 15, 2011.

Section 4 [Employee Participation Committee] requires the establishment of an employee participation committee by July 1, 2010, with membership as specified. Lists the duties of the committee and requires committee plans to be submitted by January 15, 2011, to the affected commissioners and to the chairs of the legislative committees with jurisdiction over state government.

Section 5 [Abolition of Agencies, Powers, and Duties] abolishes DEED and DLI. Provides that nothing in the section abrogates or modifies rights of affected employees under terms of an agreement between an exclusive bargaining representative and the state.

Section 6 [Budget for Next Biennium] specifies how the Governor must prepare the proposed budget for the biennium beginning July 1, 2011, with respect to the reorganization in section 5.

Section 7 [Managerial Position Reductions] directs the Commissioners of DEED and DLI to reduce the number of deputy commissioners, assistant commissioners, and certain unclassified positions in anticipation of the reorganization as specified.

Section 8 [Effective Date] provides that sections 1 to 4, 6, and 7 are effective the day following final enactment. Provides that section 5 is effective July 1, 2011, and specifies that the effective date of section 5, subdivision 1, is based on the assumption that the 2011 legislature will act on the recommendations made by the joint committee under section 4 and that legislation will be enacted transferring the responsibilities of DEED and DLI.


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