Article 1
State Government Appropriations
Section 1 [State Government Appropriations.] specifies the terms of the appropriations made in Article 1.
Section 2 [Legislature.] directly appropriates a total of approximately $123.4 million in the next biennium to the Legislature.
Section 3 [Governor and Lieutenant Governor.] directly appropriates approximately $5.7 million to the Office of Governor and Lieutenant Governor for the next biennium. Also authorizes the Governor to execute agreements with other executive agencies for up to $670,000 each fiscal year to support personnel costs incurred by the Governor’s office.
Section 4 [State Auditor.]
Directly appropriates approximately $14.5 million to the State Auditor for the next biennium.
Section 5 [Attorney General.] directly appropriates approximately $42.3 million to the Attorney General for the next biennium.
Section 6 [Secretary of State.] directly appropriates approximately $9.6 million to the Secretary of State for the next biennium.
Section 7 [Campaign Finance and Public Disclosure Board.] directly appropriates approximately $1.3 million to the Campaign Finance and Public Disclosure Board for the next biennium.
Section 8 [Investment Board.] directly appropriates approximately $278,000 to the State Board of Investment for the next biennium.
Section 9 [Administrative Hearings.] directly appropriates approximately $15.1 million to the Office of Administrative Hearings for the next biennium.
Section 10 [Office of Enterprise Technology.] directly appropriates approximately $9.2 million to the Office of Enterprise Technology for the next biennium.
Section 11 [Administration.] directly appropriates approximately $34.4 million to the Department of Administration for the next biennium.
Section 12 Capitol Area Architecture and Planning Board.] directly appropriates $650,000 to the CAAP board for the next biennium.
Section 13 [Minnesota Management and Budget.] directly appropriates approximately $33.8 million to the Department of Management and Budget for the next biennium.
Section 14 [Revenue.] directly appropriates approximately $249.4 million to the Department of Revenue for the next biennium.
Section 15 [Gambling Control.] directly appropriates approximately $5.4 million to the Gambling Control Board for the next biennium.
Section 16 [Racing Commission.] directly appropriates approximately $1.7 million to the Racing Commission for the next biennium.
Section 17 [Amateur Sports Commission.] directly appropriates $496,000 to the Amateur Sports Commission for the next biennium.
Section 18 [Explore Minnesota Tourism.] directly appropriates approximately $15.8 million to Explore Minnesota Tourism for the next biennium.
Section 19 [Minnesota Historical Society.] directly appropriates approximately $40.1 million to the Minnesota Historical Society for the next biennium.
Section 20 [Board of the Arts.] directly appropriates approximately $13.3 million to the Board of the Arts for the next biennium. This appropriation includes approximately $3.8 million for Regional Arts Councils.
Section 21 [Minnesota Humanities Center.] directly appropriates $1.8 million to the Minnesota Humanities Center for the next biennium. This appropriation includes slightly less than $1.4 million for total grants to the following councils: the Council on Black Minnesotans, the Council on Asian-Pacific Minnesotans, and the Council on the Affairs of Chicano-Latino People.
Section 22 [Minnesota Indian Affairs Council.] directly appropriates $844,000 to the Indian Affairs Council for the next biennium.
Section 23 [Public Facilities Authority.] directly appropriates $164,000 to the Public Facilities Authority for the next biennium.
Section 24 [Science Museum of Minnesota.] directly appropriates approximately $2.0 million to the Science Museum for the next biennium.
Section 25 [Tort Claims.] directly appropriates $362,000 for payment of potential tort claims against the state in the next biennium.
Section 26 [Minnesota State Retirement System.] directly appropriates approximately $6.3 million to the Minnesota State Retirement System in the next biennium.
Section 27 [MERF Division Account.] directly appropriates $45.5 million for the purposes of the Minneapolis Employees Retirement Fund division account of the Public Employees Retirement Association.
Section 28 [Teachers Retirement Association.] directly appropriates approximately $30.9 million to the Teachers Retirement Association in the next biennium for special state aid appropriated under existing law for the Teachers Retirement Association.
Section 29 [St. Paul Teachers Retirement Fund.] directly appropriates approximately $5.6 million to the St. Paul Teachers Retirement Fund in the next biennium for payments appropriated under existing law to the fund.
Section 30 [Duluth Teachers Retirement Fund.] directly appropriates $692,000 to the Duluth Teachers Retirement Fund in the next biennium for payment of pension benefits by the Duluth Teachers Retirement Fund.
Section 31 [State Lottery.] provides a limit of approximately $58 million on the statutory appropriation from the lottery fund for the operation of the State Lottery.
Section 32 [General Contingent Accounts.] directly appropriates $1.5 million to general contingent accounts for the next biennium.
Section 33 [Problem Gambling Appropriation.] directly appropriates $550,000 to the Gambling Control Board for a grant to a nonprofit to provide education and treatment services to problem gamblers in the next biennium.
Section 34 [Savings; Appropriation Reduction.] requires the Commissioner of Management and Budget to reduce general fund appropriations to executive and judicial branch agencies by $302,100,000 in the next biennium. To the extent possible, the commissioner must base the reductions on the amount of savings in the executive and judicial branch resulting from the changes in this bill, including state employee compensation and benefits, reductions in the number of full-time executive branch employees, elimination of deputy and assistant commissioner positions, and new operational efficiencies and cost savings obtained under contracts with vendors, and verification of state employee health insurance dependent eligibility. Also requires a similar reduction of the legislative appropriation by $6,709,000 to reflect the savings resulting from changes to the state employee health insurance plans contained in Article 3, section 34, of this bill.
Article 2
Military Affairs and Veterans Affairs
Section 1 [Appropriations.] specifies the terms of the appropriations made in Article 2.
Section 2 [Military Affairs.] directly appropriates approximately $41.7 million to the Department of Military Affairs for the next biennium.
Section 3 [Veterans Affairs.] directly appropriates approximately $116.3 million to the Department of Veterans Affairs for the next biennium, including appropriations for Veterans Homes.
Section 4 [Existing Appropriation for Veterans Homes.] redirects $200,000 of a $1,000,000 appropriation for the Fergus Falls Veterans Home that was previously made and extended to fiscal year 2011 to make $200,000 of the appropriation available in fiscal year 2012 for start-up costs at the Minneapolis Veterans Home adult day care center.
Section 5 [Higher Education Veterans Assistance Program.] repeals the statutory expiration for the program and makes the program permanent.
Article 3
State Government
Sections 1 to 21 [Minnesota Sunset Act] These sections establish a 12-member Sunset Advisory Commission and provide a schedule for the expiration of all major state agencies. The timeline for the sunset process is as follows:
· In September of each odd-numbered year, agencies included in the next expiration date are required to report to the commission.
· By January 1 of the even-numbered year when the agency is scheduled to sunset, the commission reviews the reports and the agency.
· Before February 1 of the year when the agency sunsets, the commission conducts public hearings and provides a report to the Legislature with its recommendations.
· The agencies and associated groups expire according to the prescribed schedule on June 30 of each even-numbered year.
Section 1 [Short Title.] provides that sections 1 to 21 of this chapter may be cited as the “Minnesota Sunset Act.”
Section 2 [Definitions.] defines terms used in sections 1 to 21, including the definition of advisory committee to mean any committee, council, commission, or other entity created by state law whose primary function is to advise a state agency.
Section 3 [Sunset Advisory Commission.] establishes a Sunset Advisory Commission with 12 members, including:
(1) five senators and one public member appointed under the Rules of the Senate, with no more than three Senators from the majority party; and
(2) five members of the House of Representatives and one public member appointed by the Speaker of the House, with no more than three of the House members from the majority caucus.
This section also places restrictions on public members, limitations on their length of service on the commission, and provides authority for reimbursement for expenses.
Section 4 [Staff.] directs the Legislative Coordinating Commission to provide staff and administration services for the Sunset Advisory Commission.
Section 5 [Rules.] authorizes the Sunset Advisory Commission to adopt rules to carry out the purposes of this chapter.
Section 6 [Agency Report to Commission.] requires a state agency that is scheduled for expiration to report to the Sunset Advisory Commission before September 1 in the year preceding the date the agency is scheduled for expiration.
Section 7 [Commission Duties.] requires the Sunset Advisory Commission to review agency reports submitted in the year before the agency is scheduled for expiration, and to conduct a review of the agency and prepare a written report before January 1 of the year when the agency is scheduled to expire.
Section 8 [Public Hearings.] requires the Sunset Advisory Commission to hold hearings concerning the criteria for review of a state agency before February 1 of the year when the agency is scheduled to expire.
Section 9 [Commission Report.] requires the Sunset Advisory Commission to provide a report to the Legislature and the Governor by February 1 of each year when an agency is scheduled for expiration.
Section 10 [Criteria for Review.] specifies the criteria for the Sunset Advisory Commission to consider in determining whether a public need exists for the continuation of a state agency or for the performance of any of the functions of the agency or its advisory committees.
Section 11 [Recommendations.] requires the Sunset Advisory Commission, when making its report concerning a state agency scheduled for expiration, to make specific recommendations concerning the continuation or reorganization of the agency and advisory committees, and to make recommendations concerning the consolidation, transfer, or reorganization of programs within agencies that are not under review if those agency programs duplicate the functions of agencies that are currently being reviewed. Requires the Sunset Advisory Commission to provide an estimate of the fiscal impact of its recommendations and to include draft legislation necessary to carry out the commission’s recommendations, including any legislation necessary to continue an agency that would otherwise sunset. Paragraph (d) authorizes the commission to present recommendations to the Legislative Auditor that do not require a statutory change. If the Legislative Audit Commission approves, the Legislative Auditor may examine the recommendations and provide a report.
Section 12 [Monitoring of Recommendations.] requires staff of the Sunset Advisory Commission to monitor all legislation affecting agencies that have undergone sunset review and to provide a report to the commission concerning proposed changes that would modify previous Sunset Advisory Commission recommendations.
Section 13 [Review of Advisory Committees.] includes advisory committees for particular state agencies that are scheduled for expiration within the sunset review provided for that agency, unless the advisory committee is expressly continued by law.
Section 14 [Continuation by Law.] authorizes the Legislature to enact legislation that will continue an agency or advisory committee for a period not to exceed 12 years after it is scheduled for expiration. Allows the Legislature to enact legislation that would terminate a state agency before the scheduled expiration date and to consider legislation relating to the agency.
Section 15 [Procedure after Termination.] provides a process to conclude the affairs of a state agency that has expired under the terms of this chapter. Within the end of the year following the expiration of the agency, all rules adopted by the agency expire. This section also specifies the disposition of funds, property, records, and continuing obligations of an agency that is abolished under this chapter.
Section 16 [Assistance of and Access to State Agencies.] authorizes the Sunset Advisory Commission to request the assistance of state agencies. Also authorizes the commission and staff to inspect agencies.
Section 17 [Relocation of State Employees.] requires a state agency that is abolished or reorganized to make reasonable efforts to relocate any displaced employees.
Section 18 [Saving Provision.] establishes that the abolition of a state agency does not affect any rights and duties that matured before the date of abolition.
Section 19 [Review of Proposed Legislation Creating an Agency.] requires the Sunset Advisory Commission to review any legislation introduced in either body of the Legislature that would create a new agency or new advisory committee under the criteria provided in this section.
Section 20 [Gifts and Grants.] authorizes the Sunset Advisory Commission to accept gifts, grants and donations from nonprofit organizations, and requires a reporting procedure for those gifts. Appropriates money received as gifts to the commission.
Section 21 [Expiration.] provides a schedule for the expiration and sunset review of all major state agencies beginning June 30, 2012, and continuing through June 30, 2022. Authorizes the commission to review and propose expiration dates for groups and programs that are not listed in this section.
Section 22 [Publicity Representatives and Legislative Liaisons.] prevents the use of any state appropriation for the salary or expenses of an individual serving as a liaison for the legislative affairs of a state agency.
Section 23 [Number of Deputy Commissioners.] together with sections 30, 32, 36, 37, 38, 39, 40, 41, and 42, this section:
(1) eliminates existing authorization in law for any state agency, except the Department of Veterans Affairs, to employ more than one deputy commissioner;
(2) eliminates the general authority in statute for agencies to employ assistant commissioners in the unclassified service; and
(3) eliminates authorization for specific agencies to employ more than one deputy and any assistant commissioners.
Section 24 [Zero-Based Budgeting; Purpose of Performance Data.] along with sections 25 to 29, creates a zero-based budgeting process for the state budget. This section requires budget information to include additional information regarding state agency activities and to provide measurable goals for agency programs and activities.
Section 25 [Performance Data Format.] requires additional detail in the Governor’s budget to describe goals and objectives for each agency program and activity, including outcome-based and objective indicators of agency activity.
Section 26 [Performance Measures for Change Items.] eliminates the existing requirements for the Commissioner of Management and Budget to report to the Subcommittee on Government Accountability concerning use of Minnesota Milestones, and other statewide goals and indicators.
Section 27 [Forecast Parameters.] requires that forecast expenditures for the current biennium must be based on actual appropriations or the amount needed to fund a formula in law. Provides that the base for forecasted expenditures in the next biennium is the amount appropriated in the second year of the current biennium, or the amount needed to fund the formula in law.
Section 28 [Zero-Based Budgeting Principles.] requires that approximately half of all state expenditure program budgets must be selected by the Governor and prepared using zero-based budgeting principles each biennium. Specifies that zero-based budgeting principles include:
(1) a description of each budget activity that is currently funded or for which the agency is requesting appropriation in the next biennium;
(2) for each budget activity, three alternative funding levels, including a summary of priorities accomplished within each level of funding, and the additional increments of value added by additional funding and the additional increments of value added by additional funding; and
(3) for each budget activity, performance data and the predicted effect of each of the three funding levels on future performance, and one or more measures of cost efficiency, including comparisons to other states with similar programs.
Also requires the Governor to prioritize budget activity within a agency or program area, and where activities in more than one agency attempt to meet the same goals, the prioritization must include other agencies and programs attempting to meet the same goals. The zero-based budget requirements in this section are made effective beginning July 1, 2013.
Section 29 [Detailed Budget.] provides conforming language to reflect the application of zero-based budgeting principles to approximately half of the state agencies in each biennium.
Section 30 [Department of Administration.] limits the Department of Administration to one deputy commissioner.
Section 31 [Federal Offset Program.] together with section 43, authorizes the Commissioner of Revenue to enter into a reciprocal agreement with the federal government under which the state would collect certain debts owed to federal agencies by offsetting the debts from state payments, and the federal government would do the same with respect to state debts and federal payments. This section authorizes the commissioner, by rule, to establish an administrative fee to be charged to debtors under this section. (Under existing Minnesota Statutes, section 16A.1283, this fee could not take effect until approved by law.)
Section 32 [Unclassified Positions.] eliminates the authority to employ assistant commissioners in the unclassified service.
Section 33 [Salary Freeze.] prevents all state employees from receiving a salary or wage increase in the next biennium.
Section 34 [SEGIP Conversion to HSA High-Deductible Health Care Plan.] directs that all state employees be provided with a health savings account-eligible high-deductible health plan. Specifies terms of coverage and state contributions to employee health care savings accounts ($1,500 for individuals and $2,500 for a family) and the state’s contributions to premium payments ($140 monthly for individuals and $411 monthly for families).
Section 35 [Reduction in State Work Force; Early Retirement Program.] requires a 15 percent reduction in the number of executive branch employees from a July 1, 2011, baseline by June 30, 2015, and a 15 percent reduction in the costs associated with those positions within the same timeframe. The bill would authorize the Commissioner of Management and Budget and executive branch appointing authorities to use a variety of options to accomplish this result, including attrition, a hiring freeze, pension and health incentive early retirement incentives, furloughs, and layoffs. This bill does not apply to the Minnesota State Colleges and Universities, state employees who are peace officers, the Department of Military Affairs, the Department of Veterans Affairs, employees of the Department of Corrections who spend at least 75 percent of their time in direct contact with inmates or patients, and the state patrol.
Section 36 [Department of Commerce.] eliminates existing authority for the Commissioner of Commerce to appoint four deputy commissioners and authorizes appointment of one deputy, and eliminates the authority for the agency to appoint an assistant commissioner in the unclassified service.
Section 37 [Department of Natural Resources.] eliminates the authority for the Commissioner of Natural Resources to employ up to three assistant commissioners.
Section 38 [Pollution Control Agency.] eliminates authority for the Commissioner of the Pollution Control Agency to employ assistant commissioners.
Sections 39 and 40 [Department of Employment and Economic Development.] eliminate existing authority for the Commissioner of the Department of Employment and Economic Development to employ four deputy commissioners in the unclassified service.
Section 41 [Department of Transportation.] eliminates authority for the Commissioner of Transportation to appoint assistant commissioners in the unclassified service.
Section 42 [Department of Corrections.] eliminates authority for the Commissioner of Corrections to appoint up to two deputy commissioners.
Section 43 [Federal Offset Program.] authorizes the Commissioner of Revenue to enter into a reciprocal agreement with the federal government under which the state would collect certain debts owed to federal agencies by offsetting the debts from state payments, and the federal government would do the same with respect to state debts and federal payments. This section authorizes the commissioner to charge a $20 administrative fee to debtors for each transaction under this section. This provision is intended to work together with section 31.
Section 44 [State Employee Group Insurance Plan Dependent Eligibility Verification Audit Services.] requires the Commissioner of Management and Budget to contract for a document-model dependent eligibility audit of dependents covered under the state employee group insurance plan.
Section 45 [State Building Efficiency.] requires the Commissioner of Administration to contract for consulting services to recommend efficiencies in the operation of state buildings.
Section 46 [Fleet Management Improvements.] requires the Commissioner of Administration to contract with a consultant to provide recommendations for increased efficiencies in the operation of the state vehicle fleet.
Section 47 [Tax Fraud Prevention and Detection.] requires the Commissioner of Administration to contract with a consultant to provide recommendations to prevent and detect tax fraud and increase delinquent tax revenue collection.
Section 48 [Strategic Sourcing Request for Proposals.] requires the Commissioner of Administration to contract for consulting services for improvements to the state’s strategic sourcing procurement system.
Section 49 [Estimated Revenue.] provides an estimate of $169,900,000 in expected new general fund revenues in the next biennium from the federal offset program changes in sections 31 and 43, and the tax fraud prevention and detection changes in section 47.
TSB/rdr
|