Bill Text: MN HF27 | 2011 | 87th Legislature 1st Special | Introduced


Bill Title: State Government Finance bill.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2011-07-19 - House: Introduction and first reading [HF27 Detail]

Download: Minnesota-2011-HF27-Introduced.html

1.1A bill for an act
1.2relating to state government operations; requiring appropriation reductions
1.3for executive agencies due to savings established; requiring a tax compliance
1.4program for tax assessment and collection; allowing adjustments for end of
1.5session budgetary analysis; changing the number of members on Legislative
1.6Commission on Pensions and Retirements; establishing the sunset advisory
1.7commission and Minnesota Pay-For-Performance Act; permitting issuing
1.8and selling appropriations bonds; allowing certain cities to use a certified
1.9public accountant for audits; establishing an employee gainsharing program;
1.10establishing e-verify program for vendors and subcontractors; implementing
1.11federal offset program for collection of debts owed to state agencies; permitting
1.12state agriculture society to use either a private auditor or legislative auditor;
1.13allowing the legislative auditor to carry forward certain funds; requiring a request
1.14for proposals for recommendations on state building efficiency, state vehicle
1.15management, and strategic sourcing; implementing state employee efficient
1.16use of health care incentive program; requiring dependent verification for state
1.17employee insurance coverage; requiring state job classification and performance
1.18appraisal system redesign; determining funds for Help America Vote Act;
1.19providing for employee pension service credit during government shutdown;
1.20extending a wholesale retailer's alcohol permit and identification card for a
1.21certain period; waiving racing day requirements during government shutdown;
1.22consolidating information technology services; limiting appropriations to settle
1.23claims arising out of government shutdown; requiring reports; making certain
1.24appropriation changes; appropriating money; amending Minnesota Statutes
1.252010, sections 3.85, subdivision 3; 6.49; 16A.1286, subdivision 2; 16B.99, as
1.26amended; 16E.04, subdivision 2; 37.06; 161.1419, subdivision 8; 270C.41;
1.27270C.545; 471.697, subdivision 2; Laws 2009, chapter 101, article 2, section
1.28106; Laws 2010, chapter 215, article 6, section 4; Laws 2010, chapter 361, article
1.293, section 8; proposing coding for new law in Minnesota Statutes, chapters 16A;
1.3016C; 16D; 16E; proposing coding for new law as Minnesota Statutes, chapter
1.313D; repealing Minnesota Statutes 2010, section 197.585, subdivision 5.
1.32BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1ARTICLE 1
2.2STATE GOVERNMENT APPROPRIATIONS

2.3
Section 1. STATE GOVERNMENT APPROPRIATIONS.
2.4    The sums shown in the columns marked "Appropriations" are appropriated to the
2.5agencies and for the purposes specified in this article. The appropriations are from the
2.6general fund, or another named fund, and are available for the fiscal years indicated
2.7for each purpose. The figures "2012" and "2013" used in this article mean that the
2.8appropriations listed under them are available for the fiscal year ending June 30, 2012, or
2.9June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
2.10year 2013. "The biennium" is fiscal years 2012 and 2013.
2.11
APPROPRIATIONS
2.12
Available for the Year
2.13
Ending June 30
2.14
2012
2013

2.15
Sec. 2. LEGISLATURE
2.16
Subdivision 1.Total Appropriation
$
63,070,000
$
63,070,000
2.17
Appropriations by Fund
2.18
2012
2013
2.19
General
62,942,000
62,942,000
2.20
Health Care Access
128,000
128,000
2.21The amounts that may be spent for each
2.22purpose are specified in the following
2.23subdivisions.
2.24
Subd. 2.Senate
20,733,000
20,733,000
2.25
Subd. 3.House of Representatives
27,874,000
27,874,000
2.26During the biennium ending June 30, 2013,
2.27any revenues received by the house of
2.28representatives from voluntary donations
2.29to support broadcast or print media are
2.30appropriated to the house of representatives.
2.31
Subd. 4.Legislative Coordinating Commission
14,463,000
14,463,000
2.32
Appropriations by Fund
2.33
General
14,335,000
14,335,000
2.34
Health Care Access
128,000
128,000
3.1From its funds, $10,000 each year is for
3.2purposes of the legislators' forum, through
3.3which Minnesota legislators meet with
3.4counterparts from South Dakota, North
3.5Dakota, and Manitoba to discuss issues of
3.6mutual concern.

3.7
3.8
Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR
$
3,195,000
$
3,195,000
3.9(a) This appropriation is to fund the Office of
3.10the Governor and Lieutenant Governor.
3.11(b) By September 1 of each year, the
3.12commissioner of management and budget
3.13shall report to the chairs and ranking
3.14minority members of the senate State
3.15Government Innovation and Veterans Affairs
3.16Committee and the house of representatives
3.17State Government Finance Committee any
3.18personnel costs incurred by the Offices of the
3.19Governor and Lieutenant Governor that were
3.20supported by appropriations to other agencies
3.21during the previous fiscal year. The Office
3.22of the Governor shall inform the chairs and
3.23ranking minority members of the committees
3.24before initiating any interagency agreements.
3.25(c) During the biennium ending June 30,
3.262013, the Office of the Governor may not
3.27receive payments of more than $720,000
3.28each fiscal year from other executive
3.29agencies under Minnesota Statutes, section
3.3015.53, to support office costs, not including
3.31the residence groundskeeper, incurred by
3.32the office. Payments received under this
3.33paragraph must be deposited in a special
3.34revenue account. Money in the account is
3.35appropriated to the Office of the Governor.
4.1The authority in this paragraph supersedes
4.2other law enacted in 2011 that limits the
4.3ability of the office to enter into agreements
4.4relating to office costs with other executive
4.5branch agencies or prevents the use of
4.6appropriations made to other agencies for
4.7agreements with the office under Minnesota
4.8Statutes, section 15.53.

4.9
Sec. 4. STATE AUDITOR
$
8,645,000
$
8,645,000
4.10The auditor must report to the legislature
4.11by January 15, 2012, and January 15, 2013,
4.12on counties' satisfaction with the timeliness,
4.13quality, and cost of the auditor's work. The
4.14report must be based on a survey of county
4.15audit clients, and the survey responses must
4.16be made available to the public.

4.17
Sec. 5. ATTORNEY GENERAL
$
23,373,000
$
23,373,000
4.18
Appropriations by Fund
4.19
2012
2013
4.20
General
21,094,000
21,094,000
4.21
4.22
State Government
Special Revenue
1,884,000
1,884,000
4.23
Environmental
145,000
145,000
4.24
Remediation
250,000
250,000
4.25Of this appropriation, $65,000 in the first
4.26year and $65,000 in the second year are
4.27from the general fund for transfer to the
4.28commissioner of public safety for a grant to
4.29the Minnesota County Attorneys Association
4.30for prosecutor and law enforcement training.

4.31
Sec. 6. SECRETARY OF STATE
$
5,474,000
$
5,474,000
4.32$1,240,000 for the biennium ending June
4.3330, 2013, from the account established in
4.34Minnesota Statutes, section 5.30, pursuant to
5.1the Help America Vote Act, is appropriated
5.2for the purposes and uses authorized by
5.3federal law.
5.4In addition, any funds provided by the United
5.5States Department of Health and Human
5.6Services pursuant to the Help America Vote
5.7Act, sections 261 to 265, are appropriated to
5.8provide grants to make voting and polling
5.9places accessible to voters with disabilities.

5.10
5.11
Sec. 7. CAMPAIGN FINANCE AND PUBLIC
DISCLOSURE BOARD
$
689,000
$
689,000

5.12
Sec. 8. INVESTMENT BOARD
$
139,000
$
139,000

5.13
Sec. 9. ADMINISTRATIVE HEARINGS
$
7,634,000
$
7,504,000
5.14
Appropriations by Fund
5.15
2012
2013
5.16
General
384,000
254,000
5.17
5.18
Workers'
Compensation
7,250,000
7,250,000
5.19$130,000 in the first year is for the cost
5.20of considering complaints filed under
5.21Minnesota Statutes, section 211B.32. Until
5.22June 30, 2013, the chief administrative
5.23law judge may not make any assessment
5.24against a county or counties under Minnesota
5.25Statutes, section 211B.37. Any amount of
5.26this appropriation that remains unspent at
5.27the end of the biennium must be canceled
5.28to the general account of the state elections
5.29campaign fund. The base for fiscal year 2014
5.30is $130,000, to be available for the biennium,
5.31under the same terms.

5.32
5.33
Sec. 10. OFFICE OF ENTERPRISE
TECHNOLOGY
$
5,181,000
$
5,181,000
6.1During the biennium ending June 30, 2013,
6.2the Office of Enterprise Technology must
6.3not charge fees to a public noncommercial
6.4educational television broadcast station
6.5eligible for funding under Minnesota
6.6Statutes, chapter 129D, for access to the
6.7state broadcast infrastructure. If the access
6.8fees not charged to public noncommercial
6.9educational television broadcast stations total
6.10more than $400,000 for the biennium, the
6.11office may charge for access fees in excess
6.12of these amounts.

6.13
Sec. 11. ADMINISTRATION
6.14
Subdivision 1.Total Appropriation
$
19,764,000
$
19,764,000
6.15The amounts that may be spent for each
6.16purpose are specified in the following
6.17subdivisions.
6.18
Subd. 2.Government and Citizen Services
16,339,000
16,339,000
6.19$74,000 the first year and $74,000 the second
6.20year are for the Council on Developmental
6.21Disabilities.
6.22$8,158,000 the first year and $8,158,000
6.23the second year are for office space costs of
6.24the legislature and veterans organizations,
6.25ceremonial space, and statutorily free space.
6.26
Subd. 3.Administrative Management Support
1,632,000
1,632,000
6.27
Subd. 4.Public Broadcasting
1,793,000
1,793,000
6.28(a) The appropriations under this section are
6.29to the commissioner of administration for the
6.30purposes specified.
6.31(b) $1,057,000 the first year and $1,057,000
6.32the second year are for matching grants for
6.33public television.
7.1(c) $190,000 the first year and $190,000
7.2the second year are for public television
7.3equipment grants. Equipment or matching
7.4grant allocations shall be made after
7.5considering the recommendations of the
7.6Minnesota Public Television Association.
7.7(d) $264,000 the first year and $264,000 the
7.8second year are for community service grants
7.9to public educational radio stations.
7.10(e) $92,000 the first year and $92,000 the
7.11second year are for equipment grants to
7.12public educational radio stations.
7.13(f) The grants in paragraphs (d) and (e)
7.14must be allocated after considering the
7.15recommendations of the Association of
7.16Minnesota Public Educational Radio Stations
7.17under Minnesota Statutes, section 129D.14.
7.18(g) $190,000 the first year and $190,000
7.19the second year are for equipment grants
7.20to Minnesota Public Radio, Inc., including
7.21upgrades to Minnesota's Emergency Alert
7.22and AMBER Alert Systems.
7.23(h) Any unencumbered balance remaining
7.24the first year for grants to public television or
7.25radio stations does not cancel and is available
7.26for the second year.

7.27
7.28
7.29
Sec. 12. CAPITOL AREA
ARCHITECTURAL AND PLANNING
BOARD
$
325,000
$
325,000

7.30
7.31
Sec. 13. MINNESOTA MANAGEMENT AND
BUDGET
$
18,257,000
$
18,257,000
7.32$75,000 each year is for duties under the
7.33Pay-for-Performance Act.

8.1
Sec. 14. REVENUE
8.2
Subdivision 1.Total Appropriation
$
139,650,000
$
142,917,000
8.3
Appropriations by Fund
8.4
2012
2013
8.5
General
135,415,000
138,682,000
8.6
Health Care Access
1,749,000
1,749,000
8.7
8.8
Highway User Tax
Distribution
2,183,000
2,183,000
8.9
Environmental
303,000
303,000
8.10The amounts that may be spent for each
8.11purpose are specified in subdivisions 2 and 3.
8.12$5,251,000 for the fiscal year ending June
8.1330, 2012, and $8,468,000 for the fiscal year
8.14ending June 30, 2013, are for purposes of the
8.15tax compliance, tax analytics and business
8.16intelligence tools in section 39. At least
8.17$1,700,000 of the amount appropriated in
8.18the first year is for tax analytics and business
8.19intelligence tools.
8.20The commissioner must implement
8.21any reduction in funding by reducing
8.22administrative support functions before any
8.23reduction to compliance and enforcement
8.24programs.
8.25
Subd. 2.Tax System Management
112,309,000
115,576,000
8.26
Appropriations by Fund
8.27
General
108,074,000
111,341,000
8.28
Health Care Access
1,749,000
1,749,000
8.29
8.30
Highway User Tax
Distribution
2,183,000
2,183,000
8.31
Environmental
303,000
303,000
8.32
Subd. 3.Debt Collection Management
27,341,000
27,341,000

8.33
Sec. 15. GAMBLING CONTROL
$
2,740,000
$
2,740,000
9.1These appropriations are from the lawful
9.2gambling regulation account in the special
9.3revenue fund.

9.4
Sec. 16. RACING COMMISSION
$
899,000
$
899,000
9.5These appropriations are from the racing
9.6and card playing regulation accounts in the
9.7special revenue fund.

9.8
Sec. 17. AMATEUR SPORTS COMMISSION
$
248,000
$
248,000

9.9
Sec. 18. EXPLORE MINNESOTA TOURISM
$
8,729,000
$
8,729,000
9.10(a) Of this amount, $12,000 each year is for a
9.11grant to the Upper Minnesota Film Office.
9.12(b)(1) To develop maximum private sector
9.13involvement in tourism, $500,000 the first
9.14year and $500,000 the second year must
9.15be matched by Explore Minnesota Tourism
9.16from nonstate sources. Each $1 of state
9.17incentive must be matched with $3 of private
9.18sector funding. Cash match is defined as
9.19revenue to the state or documented cash
9.20expenditures directly expended to support
9.21Explore Minnesota Tourism programs. Up
9.22to one-half of the private sector contribution
9.23may be in-kind or soft match. The incentive
9.24in the first year shall be based on fiscal
9.25year 2011 private sector contributions. The
9.26incentive in the second year will be based on
9.27fiscal year 2012 private sector contributions.
9.28This incentive is ongoing.
9.29(2) Funding for the marketing grants is
9.30available either year of the biennium.
9.31Unexpended grant funds from the first year
9.32are available in the second year.
10.1(3) Unexpended money from the general
10.2fund appropriations made under this section
10.3does not cancel but must be placed in a
10.4special marketing account for use by Explore
10.5Minnesota Tourism for additional marketing
10.6activities.
10.7(c) $325,000 the first year and $325,000 the
10.8second year are for the Minnesota Film and
10.9TV Board. The appropriation in each year
10.10is available only upon receipt by the board
10.11of $1 in matching contributions of money or
10.12in-kind contributions from nonstate sources
10.13for every $3 provided by this appropriation,
10.14except that each year up to $50,000 is
10.15available on July 1 even if the required
10.16matching contribution has not been received
10.17by that date.

10.18
10.19
Sec. 19. MINNESOTA HISTORICAL
SOCIETY
10.20
Subdivision 1.Total Appropriation
$
20,737,000
$
20,633,000
10.21The amounts that may be spent for each
10.22purpose are specified in the following
10.23subdivisions.
10.24
Subd. 2.Education and Outreach
11,668,000
11,668,000
10.25Notwithstanding Minnesota Statutes, section
10.26138.668, the Minnesota Historical Society
10.27may not charge a fee for its general tours at
10.28the Capitol, but may charge fees for special
10.29programs other than general tours.
10.30
Subd. 3.Preservation and Access
8,743,000
8,743,000
10.31
Subd. 4.Fiscal Agent
10.32
(a) Minnesota International Center
39,000
39,000
10.33
(b) Minnesota Air National Guard Museum
14,000
-0-
11.1
(c) Minnesota Military Museum
90,000
-0-
11.2
(d) Farmamerica
115,000
115,000
11.3
(e) Hockey Hall of Fame
68,000
68,000
11.4
(f) Balances Forward
11.5Any unencumbered balance remaining in
11.6this subdivision the first year does not cancel
11.7but is available for the second year of the
11.8biennium.
11.9
Subd. 5.Fund Transfer
11.10The Minnesota Historical Society may
11.11reallocate funds appropriated in and between
11.12subdivisions 2 and 3 for any program
11.13purposes and the appropriations are available
11.14in either year of the biennium.

11.15
Sec. 20. BOARD OF THE ARTS
11.16
Subdivision 1.Total Appropriation
$
7,506,000
$
7,506,000
11.17The amounts that may be spent for each
11.18purpose are specified in the following
11.19subdivisions.
11.20
Subd. 2.Operations and Services
567,000
567,000
11.21
Subd. 3.Grants Program
4,800,000
4,800,000
11.22
Subd. 4.Regional Arts Councils
2,139,000
2,139,000
11.23
Subd. 5.Unencumbered balance available
11.24Any unencumbered balance remaining in this
11.25section the first year does not cancel, but is
11.26available for the second year of the biennium.

11.27
11.28
Sec. 21. MINNESOTA HUMANITIES
CENTER
$
237,000
$
237,000

11.29
11.30
Sec. 22. COUNCIL ON BLACK
MINNESOTANS
$
292,000
$
292,000

12.1
12.2
Sec. 23. COUNCIL ON ASIAN-PACIFIC
MINNESOTANS
$
254,000
$
254,000

12.3
12.4
Sec. 24. COUNCIL ON AFFAIRS OF
CHICANO/LATINO PEOPLE
$
275,000
$
275,000

12.5
Sec. 25. INDIAN AFFAIRS COUNCIL
$
462,000
$
462,000
12.6Of this appropriation $167,000 each year is
12.7for a cultural resources specialist to assist the
12.8council with the duties assigned to it relating
12.9to Indian burial grounds under Minnesota
12.10Statutes, section 307.08.

12.11
12.12
Sec. 26. SCIENCE MUSEUM OF
MINNESOTA
$
1,068,000
$
1,068,000

12.13
Sec. 27. TORT CLAIMS
$
161,000
$
161,000
12.14These appropriations are to be spent by the
12.15commissioner of management and budget
12.16according to Minnesota Statutes, section
12.173.736, subdivision 7. If the appropriation for
12.18either year is insufficient, the appropriation
12.19for the other year is available for it.

12.20
12.21
Sec. 28. MINNESOTA STATE RETIREMENT
SYSTEM
12.22
Subdivision 1.Total Appropriation
$
3,122,000
$
2,712,000
12.23The amounts that may be spent for each
12.24purpose are specified in the following
12.25subdivisions.
12.26
Subd. 2.Legislators
2,650,000
2,231,000
12.27During the biennium ending June 30, 2013,
12.28up to $4,881,000 may be paid from the
12.29general fund for retirement allowances
12.30for former legislators and their surviving
12.31spouse. Any remaining costs must be paid
12.32from the legislators retirement fund created
13.1under Minnesota Statutes, section 3A.03,
13.2subdivision 3.
13.3
Subd. 3. Constitutional Officers
472,000
481,000
13.4Under Minnesota Statutes, section 352C.001,
13.5if an appropriation in this section for either
13.6year is insufficient, the appropriation for the
13.7other year is available for it.

13.8
Sec. 29. MERF DIVISION ACCOUNT
$
22,750,000
$
22,750,000
13.9These amounts are estimated to be needed
13.10under Minnesota Statutes, section 353.505.

13.11
13.12
Sec. 30. TEACHERS RETIREMENT
ASSOCIATION
$
15,454,000
$
15,454,000
13.13The amounts estimated to be needed are as
13.14follows:
13.15(a) Special direct state aid. $12,954,000 the
13.16first year and $12,954,000 the second year
13.17are for special direct state aid authorized
13.18under Minnesota Statutes, section 354A.12,
13.19subdivisions 3a and 3c.
13.20(b) Special direct state matching aid.
13.21$2,500,000 the first year and $2,500,000
13.22the second year are for special direct state
13.23matching aid authorized under Minnesota
13.24Statutes, section 354A.12, subdivision 3b.

13.25
13.26
Sec. 31. ST. PAUL TEACHERS
RETIREMENT FUND
$
2,827,000
$
2,827,000
13.27The amounts estimated to be needed for
13.28special direct state aid to first class city
13.29teachers retirement funds authorized under
13.30Minnesota Statutes, section 354A.12,
13.31subdivisions 3a and 3c.

14.1
14.2
Sec. 32. DULUTH TEACHERS
RETIREMENT FUND
$
346,000
$
346,000
14.3The amounts estimated to be needed for
14.4special direct state aid to first class city
14.5teachers retirement funds authorized under
14.6Minnesota Statutes, section 354A.12,
14.7subdivisions 3a and 3c.

14.8
Sec. 33. STATE LOTTERY
14.9Notwithstanding Minnesota Statutes, section
14.10349A.10, subdivision 3, the operating budget
14.11must not exceed $29,000,000 in fiscal year
14.122012 and $29,000,000 in fiscal year 2013.

14.13
14.14
Sec. 34. GENERAL CONTINGENT
ACCOUNTS
$
1,000,000
$
500,000
14.15
Appropriations by Fund
14.16
2012
2013
14.17
General
500,000
-0-
14.18
14.19
State Government
Special Revenue
400,000
400,000
14.20
14.21
Workers'
Compensation
100,000
100,000
14.22(a) The appropriations in this section
14.23may only be spent with the approval of
14.24the governor after consultation with the
14.25Legislative Advisory Commission pursuant
14.26to Minnesota Statutes, section 3.30.
14.27(b) If an appropriation in this section for
14.28either year is insufficient, the appropriation
14.29for the other year is available for it.
14.30(c) If a contingent account appropriation
14.31is made in one fiscal year, it should be
14.32considered a biennial appropriation.

14.33    Sec. 35. Laws 2009, chapter 101, article 2, section 106, is amended to read:
14.34    Sec. 106. ENTERPRISE REAL PROPERTY CONTRIBUTIONS.
15.1On or before June 1, 2009, the commissioner of administration shall determine the
15.2amount to be contributed by each executive agency to maintain the enterprise real property
15.3technology system for the fiscal year 2010 and fiscal year 2011 biennium. On or before
15.4June 15, 2009, each executive agency shall enter into an agreement with the commissioner
15.5of administration setting forth the manner in which the executive agency shall make its
15.6contribution to the enterprise real property system, either from uncommitted fiscal year
15.72009 funds or by contributing from fiscal year 2010 and fiscal year 2011 funds to the real
15.8property enterprise system and services account to fund the total amount of $399,000 for
15.9the biennium. Funds will be available for the enterprise real property technology project
15.10until June 30, 2013. Funds contributed under this section must be credited to the enterprise
15.11real property technology system and services account.
15.12EFFECTIVE DATE.This section is effective the day following final enactment.

15.13    Sec. 36. PROBLEM GAMBLING APPROPRIATION.
15.14$225,000 in fiscal year 2012 and $225,000 in fiscal year 2013 are appropriated from
15.15the lottery prize fund to the Gambling Control Board for a grant to the state affiliate
15.16recognized by the National Council on Problem Gambling. The affiliate must provide
15.17services to increase public awareness of problem gambling, education and training for
15.18individuals and organizations providing effective treatment services to problem gamblers
15.19and their families, and research relating to problem gambling. These services must be
15.20complementary to and not duplicative of the services provided through the problem
15.21gambling program administered by the commissioner of human services. Of this
15.22appropriation, $50,000 in fiscal year 2012 and $50,000 in fiscal year 2013 are contingent
15.23on the contribution of nonstate matching funds. Matching funds may be either cash or
15.24qualifying in-kind contributions. The commissioner of management and budget may
15.25disburse the state portion of the matching funds in increments of $25,000 upon receipt
15.26of a commitment for an equal amount of matching nonstate funds. These are onetime
15.27appropriations.

15.28    Sec. 37. SAVINGS; APPROPRIATION REDUCTION FOR EXECUTIVE
15.29AGENCIES.
15.30    Subdivision 1. SEGIP dependent eligibility. The commissioner of management
15.31and budget must reduce general fund appropriations to executive agencies, including
15.32constitutional offices, for agency operations for the biennium ending June 30, 2013, by
15.33$1,726,000 due to savings from verification of dependent eligibility for state employee
16.1group insurance coverage. The Minnesota State Colleges and Universities is not an
16.2executive agency for purposes of this subdivision.
16.3If savings obtained through verification of dependent eligibility for state employee
16.4group insurance coverage yield savings in nongeneral funds other than those established
16.5in the state constitution or protected by federal law, the commissioner of management and
16.6budget may transfer the amount of savings to the general fund. The amount transferred
16.7to the general fund from other funds reduces the required general fund reduction in this
16.8section. Reductions made in 2013 must be reflected as reductions in agency base budgets
16.9for fiscal years 2014 and 2015. The commissioner of management and budget must report
16.10to the chairs and ranking minority members of the senate Finance Committee and the
16.11house of representatives Ways and Means Committee regarding the amount of reductions
16.12in spending by each agency under this subdivision.
16.13    Subd. 2. Savings from other reforms. If the commissioner of management and
16.14budget determines that during the biennium ending June 30, 2013, the reforms in this
16.15act other than verification of dependent eligibility result in cost savings to nongeneral
16.16funds other than those established in the state constitution or protected by federal law,
16.17the commissioner may transfer the amount of the savings to the general fund. The
16.18commissioner must report to the chairs and ranking minority members of the senate
16.19Finance Committee and the house of representatives Ways and Means Committee
16.20regarding transfers under this subdivision.

16.21    Sec. 38. REPORTS.
16.22By January 15, 2012, and January 15, 2013, the Minnesota Humanities Commission,
16.23Council on Black Minnesotans, Council on Asian-Pacific Minnesotans, Council on Affairs
16.24of Chicano/Latino People, and Indian Affairs Council must each report to the chairs
16.25and ranking minority members of the legislative committees with jurisdiction over the
16.26groups. The reports must describe the results obtained with the appropriations in this act,
16.27including a description and evaluation of how the groups accomplished their statutory
16.28duties in the preceding year.

16.29    Sec. 39. TAX COMPLIANCE; TAX ANALYTICS AND BUSINESS
16.30INTELLIGENCE TOOLS.
16.31    Subdivision 1. Program activities. (a) The commissioner of revenue is authorized
16.32to implement a program of tax compliance including the use of advanced tax analytics
16.33and business intelligence tools to enhance tax assessment and collection by improving
16.34the means to identify taxpayers that should be subject to audit and collection activities
17.1and by prioritizing those activities to provide a higher rate of return on the activities of
17.2Department of Revenue employees.
17.3(b) To implement the program authorized by this section, the commissioner of
17.4revenue may enter into contracts as the commissioner deems necessary to obtain or create
17.5tax analytics and business intelligence tools.
17.6(c) Any contract entered into under this section is subject to Minnesota Statutes,
17.7section 16C.082.
17.8    Subd. 2. Implementation. To implement the program authorized by this section,
17.9the commissioner of revenue may hire employees as the commissioner deems necessary.
17.10The commissioner of revenue shall manage the number of full-time equivalent employees
17.11of the Department of Revenue so that by the end of fiscal year 2015 any new employees
17.12hired to carry out the program authorized by this section will be matched by a reduction in
17.13the total number of full-time equivalent employees by the end of fiscal year 2015.
17.14    Subd. 3. New general fund revenues. The program implemented by this section is
17.15expected to result in new general fund revenues of $82,314,000 for the biennium ending
17.16June 30, 2013.
17.17    Subd. 4. Legislative report. The commissioner of revenue shall report to the
17.18chairs of the house ways and means and senate finance committees by July 1, 2012, and
17.19January 15, 2013, on the collection of new general fund revenues under the program
17.20authorized by this section.
17.21EFFECTIVE DATE.This section is effective the day following final enactment.

17.22    Sec. 40. END-OF-SESSION BUDGETARY ESTIMATES.
17.23If, in preparation of end-of-session fund statements following the 2011 first special
17.24session, the commissioner of management and budget determines the impact of the
17.25enacted fiscal years 2012-2013 omnibus appropriation bills result in a projected negative
17.26general fund unrestricted budgetary balance for the biennium ending June 30, 2013, the
17.27commissioner shall reduce the general fund cash flow account in Minnesota Statutes,
17.28section 16A.152, by an amount sufficient to balance biennial resources and expenditures
17.29after notifying the chairs of the house Ways And Means Committee and the senate
17.30Finance Committee.

17.31ARTICLE 2
17.32MILITARY AFFAIRS AND VETERANS AFFAIRS

17.33
Section 1. APPROPRIATIONS.
18.1The sums shown in the columns marked "Appropriations" are appropriated to the
18.2agencies and for the purposes specified in this article. The appropriations are from the
18.3general fund and are available for the fiscal years indicated for each purpose. The figures
18.4"2012" and "2013" used in this article mean that the appropriations listed under them are
18.5available for the fiscal year ending June 30, 2012, or June 30, 2013, respectively. "The
18.6first year" is fiscal year 2012. "The second year" is fiscal year 2013. "The biennium" is
18.7fiscal years 2012 and 2013.
18.8
APPROPRIATIONS
18.9
Available for the Year
18.10
Ending June 30
18.11
2012
2013

18.12
Sec. 2. MILITARY AFFAIRS
18.13
Subdivision 1.Total Appropriation
$
22,371,000
$
19,371,000
18.14The amounts that may be spent for each
18.15purpose are specified in the following
18.16subdivisions.
18.17
Subd. 2.Maintenance of Training Facilities
6,660,000
6,660,000
18.18
Subd. 3.General Support
2,363,000
2,363,000
18.19
Subd. 4.Enlistment Incentives
13,348,000
10,348,000
18.20$3,000,000 the first year is for additional
18.21costs of enlistment incentives.
18.22If appropriations for either year of the
18.23biennium are insufficient, the appropriation
18.24from the other year is available. The
18.25appropriations for enlistment incentives are
18.26available until expended.

18.27
Sec. 3. VETERANS AFFAIRS
18.28
Subdivision 1.Total Appropriation
$
57,795,000
$
58,595,000
18.29
Appropriations by Fund
18.30
2012
2013
18.31
General
57,695,000
58,595,000
18.32
Special Revenue
100,000
-0-
19.1The amounts that may be spent for each
19.2purpose are specified in the following
19.3subdivisions.
19.4
Subd. 2.Veterans Services
13,879,000
13,779,000
19.5
Appropriations by Fund
19.6
2012
2013
19.7
General
13,779,000
13,779,000
19.8
Special Revenue
100,000
-0-
19.9$100,000 in the first year is from the
19.10"Support Our Troops" account established
19.11under Minnesota Statutes, section 190.19,
19.12subdivision 2a, for a grant to the Minnesota
19.13Assistance Council for Veterans. This is a
19.14onetime appropriation.
19.15$945,000 each year is for the higher
19.16education veterans assistance program under
19.17Minnesota Statutes, section 197.585.
19.18$100,000 each year is for the costs of
19.19administering the Minnesota GI Bill program
19.20under Minnesota Statutes, section 197.791.
19.21$353,000 each year is for grants to the
19.22following congressionally chartered veterans
19.23service organizations, as designated by the
19.24commissioner: Disabled American Veterans,
19.25Military Order of the Purple Heart, the
19.26American Legion, Veterans of Foreign Wars,
19.27Vietnam Veterans of America, AMVETS,
19.28and Paralyzed Veterans of America. This
19.29funding must be allocated in direct proportion
19.30to the funding currently being provided by
19.31the commissioner to these organizations.
19.32
Subd. 3.Veterans Homes
43,916,000
44,816,000
19.33Veterans Homes Special Revenue Account.
19.34The general fund appropriations made to
19.35the department may be transferred to a
20.1veterans homes special revenue account in
20.2the special revenue fund in the same manner
20.3as other receipts are deposited according
20.4to Minnesota Statutes, section 198.34, and
20.5are appropriated to the department for the
20.6operation of veterans homes facilities and
20.7programs.
20.8Fergus Falls Veterans Home. Of the
20.9general fund appropriation, $738,000 in
20.10fiscal year 2013 is for operation of a new
20.1121-bed specialty care/Alzheimer's unit at the
20.12Minnesota Veterans Home in Fergus Falls.
20.13Base funding for this program is $842,000 in
20.14fiscal years 2014 and 2015.
20.15Minneapolis Veterans Home. Of the
20.16general fund appropriation, $162,000 in
20.17fiscal year 2013 is for operation of a new
20.18adult day care program at the Minnesota
20.19Veterans Home in Minneapolis. Base
20.20funding for this program is $232,000 in fiscal
20.21years 2014 and 2015.
20.22Veterans Homes Service Redesign.
20.23$551,000 in fiscal year 2012 and $801,000 in
20.24fiscal year 2013, generated from additional
20.25nongeneral fund revenue and cost savings
20.26from operating efficiencies, are to be used to
20.27support the operational needs of the five state
20.28veterans homes.

20.29    Sec. 4. Laws 2010, chapter 215, article 6, section 4, is amended to read:
20.30
Sec. 4. VETERANS HOMES
20.31Of the appropriation in Laws 2009, chapter
20.3294, article 3, section 2, subdivision 3, or from
20.33funds carried forward from fiscal year 2009:
21.1(1) $1,000,000 $800,000 in fiscal year 2011
21.2is for operational expenses related to the
21.321-bed addition at the Fergus Falls Veterans
21.4Home; and
21.5(2) $113,000 $313,000 in fiscal year 2011 is
21.6for start-up expenses related to the opening of
21.7an adult daycare facility at the Minneapolis
21.8Veterans Home.
21.9An appropriation in this section that is
21.10unspent at the end of fiscal year 2011 carries
21.11forward and is available in fiscal year 2012.

21.12    Sec. 5. REPEALER.
21.13Minnesota Statutes 2010, section 197.585, subdivision 5, is repealed.
21.14EFFECTIVE DATE.This section is effective the day following final enactment.

21.15ARTICLE 3
21.16STATE GOVERNMENT OPERATIONS

21.17    Section 1. Minnesota Statutes 2010, section 3.85, subdivision 3, is amended to read:
21.18    Subd. 3. Membership. The commission consists of five seven members of the
21.19senate appointed by the Subcommittee on Committees of the Committee on Rules and
21.20Administration and five seven members of the house of representatives appointed by
21.21the speaker. No more than five members from each chamber may be from the majority
21.22caucus in that chamber. Members shall be appointed at the commencement of each regular
21.23session of the legislature for a two-year term beginning January 16 of the first year of the
21.24regular session. Members continue to serve until their successors are appointed. Vacancies
21.25that occur while the legislature is in session shall be filled like regular appointments. If the
21.26legislature is not in session, senate vacancies shall be filled by the last Subcommittee on
21.27Committees of the senate Committee on Rules and Administration or other appointing
21.28authority designated by the senate rules, and house of representatives vacancies shall be
21.29filled by the last speaker of the house, or if the speaker is not available, by the last chair of
21.30the house of representatives Rules Committee.
21.31EFFECTIVE DATE.This section is effective January 16, 2013.

22.1    Sec. 2. [3D.01] SHORT TITLE.
22.2This chapter may be cited as the "Minnesota Sunset Act."

22.3    Sec. 3. [3D.02] DEFINITIONS.
22.4    Subdivision 1. Scope. The definitions in this section apply to this chapter.
22.5    Subd. 2. Advisory committee. "Advisory committee" means a committee, council,
22.6commission, or other entity created under state law whose primary function is to advise
22.7a state agency.
22.8    Subd. 3. Commission. "Commission" means the Sunset Advisory Commission.
22.9    Subd. 4. State agency. "State agency" means an agency expressly made subject
22.10to this chapter.

22.11    Sec. 4. [3D.03] SUNSET ADVISORY COMMISSION.
22.12    Subdivision 1. Membership. (a) The Sunset Advisory Commission consists of 12
22.13members appointed as follows:
22.14(1) four senators, appointed according to the rules of the senate, with no more than
22.15three senators from the majority caucus;
22.16(2) four members of the house of representatives, appointed by the speaker of the
22.17house, with no more than three of the house of representatives members from the majority
22.18caucus; and
22.19(3) four members appointed by the governor.
22.20(b) The first members of the Sunset Advisory Commission must be appointed before
22.21September 1, 2011, for terms ending the first Monday in January 2013.
22.22    Subd. 2. Public member restrictions. An individual is eligible for appointment by
22.23the governor if the individual or the individual's spouse is not:
22.24(1) regulated by a state agency that the commission will review during the term for
22.25which the individual would serve;
22.26(2) employed by, participates in the management of, or directly or indirectly has
22.27more than a ten percent interest in a business entity or other organization regulated by a
22.28state agency the commission will review during the term for which the individual would
22.29serve; or
22.30(3) required to register as a lobbyist under chapter 10A because of the person's
22.31activities for compensation on behalf of a profession or entity related to the operation of
22.32an agency under review.
22.33    Subd. 3. Removal. It is a ground for removal of a governor's appointee from the
22.34commission if the member is not qualified as required by subdivision 2 for appointment
23.1to the commission at the time of appointment or does not maintain the qualifications
23.2while serving on the commission. The validity of the commission's action is not affected
23.3by the fact that it was taken when a ground for removal of a governor's appointee from
23.4the commission existed.
23.5    Subd. 4. Terms. Legislative members serve at the pleasure of the appointing
23.6authority. Governor's appointees serve two-year terms expiring the first Monday in
23.7January of each odd-numbered year and may be removed at the pleasure of the governor.
23.8    Subd. 5. Limits. Members are subject to the following restrictions:
23.9(1) after an individual serves four years on the commission, the individual is not
23.10eligible for appointment to another term or part of a term;
23.11(2) a legislative member who serves a full term may not be appointed to an
23.12immediately succeeding term; and
23.13(3) a governor's appointee may not serve consecutive terms, and, for purposes of this
23.14prohibition, a member is considered to have served a term only if the member has served
23.15more than one-half of the term.
23.16    Subd. 6. Appointments. Appointments must be made before the second Monday of
23.17January of each odd-numbered year.
23.18    Subd. 7. Legislative members. If a legislative member ceases to be a member
23.19of the legislative body from which the member was appointed, the member vacates
23.20membership on the commission.
23.21    Subd. 8. Vacancies. If a vacancy occurs, the appointing authority shall appoint a
23.22person to serve for the remainder of the unexpired term in the same manner as the original
23.23appointment.
23.24    Subd. 9. Officers. The commission shall have a chair and vice-chair as presiding
23.25officers.
23.26    Subd. 10. Quorum; voting. Seven members of the commission constitute a
23.27quorum. A final action or recommendation may not be made unless approved by a
23.28recorded vote of at least seven members. All other actions by the commission shall be
23.29decided by a majority of the members present and voting.

23.30    Sec. 5. [3D.04] STAFF.
23.31The Legislative Coordinating Commission shall provide staff and administrative
23.32services for the commission.

23.33    Sec. 6. [3D.05] RULES.
23.34The commission may adopt rules necessary to carry out this chapter.

24.1    Sec. 7. [3D.06] AGENCY REPORT TO COMMISSION.
24.2Before September 1 of the odd-numbered year before the year in which a state agency
24.3is subject to sunset review, the agency commissioner shall report to the commission:
24.4(1) information regarding the application to the agency of the criteria in section
24.53D.10;
24.6(2) a priority-based budget for the agency;
24.7(3) an inventory of all boards, commissions, committees, and other entities related
24.8to the agency; and
24.9(4) any other information that the agency commissioner considers appropriate or that
24.10is requested by the commission.
24.11The September 1 deadline in this section does not apply in 2011.

24.12    Sec. 8. [3D.07] COMMISSION DUTIES.
24.13Before January 1 of the year in which a state agency subject to this chapter and its
24.14advisory committees are subject to sunset review, the commission shall:
24.15(1) review and take action necessary to verify the reports submitted by the agency;
24.16and
24.17(2) conduct a review of the agency based on the criteria provided in section 3D.10
24.18and prepare a written report.

24.19    Sec. 9. [3D.08] PUBLIC HEARINGS.
24.20Before February 1 of the year a state agency subject to this chapter and its advisory
24.21committees are subject to sunset review, the commission shall conduct public hearings
24.22concerning but not limited to the application to the agency of the criteria provided in
24.23section 3D.10.

24.24    Sec. 10. [3D.09] COMMISSION REPORT.
24.25By February 1 of each even-numbered year, the commission shall present to the
24.26legislature and the governor a report on the agencies and advisory committees reviewed.
24.27In the report the commission shall include:
24.28(1) its findings regarding the criteria prescribed by section 3D.10;
24.29(2) its recommendations based on the matters prescribed by section 3D.11; and
24.30(3) other information the commission considers necessary for a complete review
24.31of the agency.

24.32    Sec. 11. [3D.10] CRITERIA FOR REVIEW.
25.1The commission and its staff shall consider the following criteria in determining
25.2whether a public need exists for the continuation of a state agency or its advisory
25.3committees or for the performance of the functions of the agency or its advisory
25.4committees:
25.5(1) the efficiency and effectiveness with which the agency or the advisory committee
25.6operates;
25.7(2) an identification of the mission, goals, and objectives intended for the agency or
25.8advisory committee and of the problem or need that the agency or advisory committee
25.9was intended to address and the extent to which the mission, goals, and objectives have
25.10been achieved and the problem or need has been addressed;
25.11(3) an identification of any activities of the agency in addition to those granted by
25.12statute and of the authority for those activities and the extent to which those activities
25.13are needed;
25.14(4) an assessment of authority of the agency relating to fees, inspections,
25.15enforcement, and penalties;
25.16(5) whether less restrictive or alternative methods of performing any function that
25.17the agency performs could adequately protect or provide service to the public;
25.18(6) the extent to which the jurisdiction of the agency and the programs administered
25.19by the agency overlap or duplicate those of other agencies, the extent to which the agency
25.20coordinates with those agencies, and the extent to which the programs administered by the
25.21agency can be consolidated with the programs of other state agencies;
25.22(7) the promptness and effectiveness with which the agency addresses complaints
25.23concerning entities or other persons affected by the agency, including an assessment of the
25.24agency's administrative hearings process;
25.25(8) an assessment of the agency's rulemaking process and the extent to which the
25.26agency has encouraged participation by the public in making its rules and decisions and
25.27the extent to which the public participation has resulted in rules that benefit the public;
25.28(9) the extent to which the agency has complied with federal and state laws and
25.29applicable rules regarding equality of employment opportunity and the rights and privacy
25.30of individuals, and state law and applicable rules of any state agency regarding purchasing
25.31guidelines and programs for historically underutilized businesses;
25.32(10) the extent to which the agency issues and enforces rules relating to potential
25.33conflicts of interest of its employees;
25.34(11) the extent to which the agency complies with chapter 13 and follows records
25.35management practices that enable the agency to respond efficiently to requests for public
25.36information; and
26.1(12) the effect of federal intervention or loss of federal funds if the agency is
26.2abolished.

26.3    Sec. 12. [3D.11] RECOMMENDATIONS.
26.4(a) In its report on a state agency, the commission shall:
26.5(1) make recommendations on the abolition, continuation, or reorganization of each
26.6affected state agency and its advisory committees and on the need for the performance of
26.7the functions of the agency and its advisory committees;
26.8(2) make recommendations on the consolidation, transfer, or reorganization of
26.9programs within state agencies not under review when the programs duplicate functions
26.10performed in agencies under review; and
26.11(3) make recommendations to improve the operations of the agency, its policy body,
26.12and its advisory committees, including management recommendations that do not require
26.13a change in the agency's enabling statute.
26.14(b) The commission shall include the estimated fiscal impact of its recommendations
26.15and may recommend appropriation levels for certain programs to improve the operations
26.16of the state agency.
26.17(c) The commission shall have drafts of legislation prepared to carry out the
26.18commission's recommendations under this section, including legislation necessary
26.19to continue the existence of agencies that would otherwise sunset if the commission
26.20recommends continuation of an agency.
26.21(d) After the legislature acts on the report under section 3D.09, the commission shall
26.22present to the legislative auditor the commission's recommendations that do not require
26.23a statutory change to be put into effect. Subject to the legislative audit commission's
26.24approval, the legislative auditor may examine the recommendations and include as part
26.25of the next audit of the agency a report on whether the agency has implemented the
26.26recommendations and, if so, in what manner.

26.27    Sec. 13. [3D.12] MONITORING OF RECOMMENDATIONS.
26.28During each legislative session, the staff of the commission shall monitor legislation
26.29affecting agencies that have undergone sunset review and shall periodically report
26.30to the members of the commission on proposed changes that would modify prior
26.31recommendations of the commission.

26.32    Sec. 14. [3D.13] REVIEW OF ADVISORY COMMITTEES.
27.1An advisory committee, the primary function of which is to advise a particular state
27.2agency, is subject to sunset on the date set for sunset review of the agency unless the
27.3advisory committee is expressly continued by law.

27.4    Sec. 15. [3D.14] CONTINUATION BY LAW.
27.5(a) The following departments and agencies must be reviewed according to the
27.6schedule in section 3D.21, but do not expire according to that schedule, unless another law
27.7is enacted providing that the entity does expire:
27.8(1) a department or agency listed in section 15.01, or section 15.06, subdivision 1
27.9or 1a; and
27.10(2) the Office of Higher Education, Explore Minnesota Tourism, and the Public
27.11Utilities Commission.
27.12(b) During the regular session immediately before the sunset of a state agency or an
27.13advisory committee that expires under section 3D.21, the legislature may enact legislation
27.14to continue the agency or advisory committee for a period not to exceed 12 years. This
27.15chapter does not prohibit the legislature from:
27.16(1) terminating a state agency or advisory committee subject to this chapter at a date
27.17earlier than that provided in this chapter; or
27.18(2) considering any other legislation relative to a state agency or advisory committee
27.19subject to this chapter.

27.20    Sec. 16. [3D.15] PROCEDURE AFTER TERMINATION.
27.21    Subdivision 1. Termination. Unless otherwise provided by law:
27.22(1) if after sunset review a state agency is abolished, the agency may continue in
27.23existence until June 30 of the following year to conclude its business;
27.24(2) abolishment does not reduce or otherwise limit the powers and authority of the
27.25state agency during the concluding year; and
27.26(3) a state agency is terminated and shall cease all activities at the expiration of
27.27the one-year period.
27.28    Subd. 2. Funds of abolished agency or advisory committee. (a) Except as
27.29provided by other law, any unobligated and unexpended appropriations of an abolished
27.30agency or advisory committee lapse on June 30 of the year after abolishment.
27.31(b) Except as provided by subdivision 4 or as otherwise provided by law, all money
27.32in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
27.33year after abolishment is transferred to the general fund. The part of the law dedicating
28.1the money to a specific fund of an abolished agency becomes void on June 30 of the year
28.2after abolishment.
28.3(c) If an appropriation exists in law for the functions or obligations transferred in
28.4subdivision 3 or 4, that appropriation is transferred to the commissioner of administration
28.5for the purposes of those subdivisions.
28.6    Subd. 3. Property, rules, and functions of an abolished agency. (a) Unless the
28.7governor designates an appropriate state agency as prescribed by subdivision 4, property
28.8and records in the custody of an abolished state agency or advisory committee on June 30
28.9of the year after abolishment must be transferred to the commissioner of administration.
28.10If the governor designates an appropriate state agency, the property and records must be
28.11transferred to the designated state agency.
28.12(b) Unless otherwise provided by law, statutory duties of an abolished state agency
28.13are transferred to the commissioner of administration, and section 16B.38 applies. All
28.14rules adopted by the abolished agency remain effective and shall be enforced by the
28.15commissioner of administration, and rulemaking authority of the abolished agency is
28.16transferred to the commissioner of administration. The commissioner of administration
28.17may use authority under section 16B.37 to transfer duties of an abolished agency that have
28.18been transferred to the commissioner of administration. Transfers under section 16B.37
28.19are effective upon filing with the secretary of state, even if a reorganization order transfers
28.20all or substantially all of the powers or duties of a department.
28.21    Subd. 4. Continuing obligations. (a) The legislature recognizes the state's
28.22continuing obligation to pay bonded indebtedness and all other obligations, including
28.23lease, contract, and other written obligations, incurred by a state agency or advisory
28.24committee abolished under this chapter, and this chapter does not impair or impede the
28.25payment of bonded indebtedness and all other obligations, including lease, contract, and
28.26other written obligations, in accordance with their terms. If an abolished state agency or
28.27advisory committee has outstanding bonded indebtedness or other outstanding obligations,
28.28including lease, contract, and other written obligations, the bonds and all other obligations,
28.29including lease, contract, and other written obligations, remain valid and enforceable in
28.30accordance with their terms and subject to all applicable terms and conditions of the laws
28.31and proceedings authorizing the bonds and all other obligations, including lease, contract,
28.32and other written obligations.
28.33(b) The governor shall designate an appropriate state agency that shall continue to
28.34carry out all covenants contained in the bonds and in all other obligations, including lease,
28.35contract, and other written obligations, and the proceedings authorizing them, including
28.36the issuance of bonds, and the performance of all other obligations, including lease,
29.1contract, and other written obligations, to complete the construction of projects or the
29.2performance of other obligations, including lease, contract, and other written obligations.
29.3(c) The designated state agency shall provide payment from the sources of payment
29.4of the bonds in accordance with the terms of the bonds and shall provide payment from
29.5the sources of payment of all other obligations, including lease, contract, and other written
29.6obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
29.7until the bonds and interest on the bonds are paid in full and all other obligations,
29.8including lease, contract, and other written obligations, are performed and paid in full.
29.9If the proceedings so provide, all funds established by laws or proceedings authorizing
29.10the bonds or authorizing other obligations, including lease, contract, and other written
29.11obligations, must remain with the comptroller or the previously designated trustees. If the
29.12proceedings do not provide that the funds remain with the comptroller or the previously
29.13designated trustees, the funds must be transferred to the designated state agency.

29.14    Sec. 17. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
29.15The commission may request the assistance of state agencies and officers. When
29.16assistance is requested, a state agency or officer shall assist the commission. In carrying
29.17out its functions under this chapter, the commission or its designated staff member may
29.18inspect the records, documents, and files of any state agency.

29.19    Sec. 18. [3D.17] RELOCATION OF EMPLOYEES.
29.20If an employee is displaced because a state agency or its advisory committee is
29.21abolished or reorganized, the state agency shall make a reasonable effort to relocate the
29.22displaced employee.

29.23    Sec. 19. [3D.18] SAVING PROVISION.
29.24Except as otherwise expressly provided, abolition of a state agency does not affect
29.25rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
29.26arose, or proceedings that were begun before the effective date of the abolition.

29.27    Sec. 20. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
29.28AGENCY.
29.29Each bill filed in a house of the legislature that would create a new state agency or
29.30a new advisory committee to a state agency shall be reviewed by the commission. The
29.31commission shall review the bill to determine if:
30.1(1) the proposed functions of the agency or committee could be administered by one
30.2or more existing state agencies or advisory committees;
30.3(2) the form of regulation, if any, proposed by the bill is the least restrictive form of
30.4regulation that will adequately protect the public;
30.5(3) the bill provides for adequate public input regarding any regulatory function
30.6proposed by the bill; and
30.7(4) the bill provides for adequate protection against conflicts of interest within
30.8the agency or committee.

30.9    Sec. 21. [3D.20] GIFTS AND GRANTS.
30.10The commission may accept gifts, grants, and donations from any organization
30.11described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding
30.12any activity under this chapter. All gifts, grants, and donations must be accepted in an
30.13open meeting by a majority of the voting members of the commission and reported in the
30.14public record of the commission with the name of the donor and purpose of the gift, grant,
30.15or donation. Money received under this section is appropriated to the commission.

30.16    Sec. 22. [3D.21] SUNSET REVIEW.
30.17    Subdivision 1. Group 1. The following agencies are sunset and, except as provided
30.18in section 3D.14, expire on June 30, 2012: Capitol Area Architectural and Planning Board,
30.19Amateur Sports Commission, Combative Sports Commission, all health-related licensing
30.20boards listed in section 214.01, Council on Affairs of Chicano/Latino People, Council
30.21on Black Minnesotans, Council on Asian-Pacific Minnesotans, Indian Affairs Council,
30.22Council on Disabilities, and all advisory groups associated with these agencies.
30.23    Subd. 2. Group 2. The following agencies are sunset and, except as provided in
30.24section 3D.14, expire on June 30, 2014: Department of Health, Department of Human
30.25Services, Department of Human Rights, Department of Education, Board of Teaching,
30.26Minnesota Office of Higher Education, and all advisory groups associated with these
30.27agencies.
30.28    Subd. 3. Group 3. The following agencies are sunset and, except as provided
30.29in section 3D.14, expire on June 30, 2016: Department of Commerce, Department
30.30of Employment and Economic Development, Department of Labor and Industry, all
30.31non-health-related licensing boards listed in section 214.01 except as otherwise provided
30.32in this section, Explore Minnesota Tourism, Public Utilities Commission, Iron Range
30.33Resources and Rehabilitation Board, Bureau of Mediation Services, and all advisory
30.34groups associated with these agencies.
31.1    Subd. 4. Group 4. The following agencies are sunset and, except as provided in
31.2section 3D.14, expire on June 30, 2018: Department of Corrections, Department of Public
31.3Safety, Department of Transportation, Peace Officer Standards and Training Board, and all
31.4advisory groups associated with these agencies.
31.5    Subd. 5. Group 5. The following agencies are sunset and, except as provided
31.6in section 3D.14, expire on June 30, 2020: Department of Agriculture, Department of
31.7Natural Resources, Pollution Control Agency, Board of Animal Health, Board of Water
31.8and Soil Resources, and all advisory groups associated with these agencies.
31.9    Subd. 6. Group 6. The following agencies are sunset and, except as provided in
31.10section 3D.14, expire on June 30, 2022: Department of Administration, Department
31.11of Management and Budget, Department of Military Affairs, Department of Revenue,
31.12Department of Veterans Affairs, Arts Board, Minnesota Zoo, Office of Administrative
31.13Hearings, Campaign Finance and Public Disclosure Board, Office of Enterprise
31.14Technology, Minnesota Racing Commission, and all advisory groups associated with
31.15these agencies.
31.16    Subd. 7. Continuation. Following sunset review of an agency, the legislature may
31.17act within the same legislative session in which the sunset report was received on Sunset
31.18Advisory Commission recommendations to continue or reorganize the agency.
31.19    Subd. 8. Other groups. The commission may review, under the criteria in
31.20section 3D.10, and propose to the legislature an expiration date for any agency, board,
31.21commission, or program not listed in this section.

31.22    Sec. 23. Minnesota Statutes 2010, section 6.49, is amended to read:
31.236.49 CITIES OF FIRST CLASS.
31.24All powers and duties conferred and imposed upon the state auditor with respect to
31.25state and county officers, institutions, property, and improvements are hereby extended to
31.26cities of the first class. Copies of the written report of the state auditor on the financial
31.27condition and accounts of such city shall be filed in the state auditor's office, with the
31.28mayor, city council, and city comptroller thereof, and with the city commissioners, if such
31.29city have such officers. If such report disclose malfeasance, misfeasance, or nonfeasance
31.30in office, copies thereof shall be filed with the city attorney thereof and with the county
31.31attorney of the county in which such city is located, and these officials of the law shall
31.32institute such proceedings, civil or criminal, as the law and the public interest require.
31.33The state auditor shall bill said cities monthly for services rendered, including any
31.34examination, and the officials responsible for approving and paying claims shall cause
31.35said bill to be promptly paid.
32.1A city that first became a city of the first class after 2009 may provide for an audit to
32.2be performed by a certified public accountant firm meeting the requirements of section
32.3326A.05 instead of having an audit performed by the state auditor. An audit performed
32.4under this paragraph must meet the standards and be in the form required by the state
32.5auditor. The state auditor may require additional information from the certified public
32.6accountant firm that the state auditor deems in the public interest, but the state auditor
32.7must accept the audit unless the state auditor determines that it does not meet recognized
32.8industry auditing standards or is not in the form required by the state auditor.

32.9    Sec. 24. Minnesota Statutes 2010, section 16A.1286, subdivision 2, is amended to read:
32.10    Subd. 2. Billing procedures. The commissioner may bill up to $7,520,000
32.11$10,000,000 in each fiscal year for statewide systems services provided to state agencies,
32.12judicial branch agencies, the University of Minnesota, the Minnesota State Colleges
32.13and Universities, and other entities. Each agency shall transfer from agency operating
32.14appropriations to the statewide systems account the amount billed by the commissioner.
32.15Billing policies and procedures related to statewide systems services must be developed
32.16by the commissioner in consultation with the commissioners of management and budget
32.17and administration, the University of Minnesota, and the Minnesota State Colleges and
32.18Universities.
32.19EFFECTIVE DATE.This section is effective July 1, 2013.

32.20    Sec. 25. [16A.90] EMPLOYEE GAINSHARING SYSTEM.
32.21The commissioner shall establish a program to provide onetime bonus compensation
32.22to state employees for efforts made to reduce the costs of operating state government or for
32.23ways of providing better or more efficient state services. The commissioner may authorize
32.24an executive branch appointing authority to make a onetime award to an employee or
32.25group of employees whose suggestion or involvement in a project is determined by the
32.26commissioner to have resulted in documented cost-savings to the state. Before authorizing
32.27awards under this section, the commissioner shall establish guidelines for the program
32.28including but not limited to:
32.29(1) the maximum award is ten percent of the documented savings in the first fiscal
32.30year in which the savings are realized up to $1,000 per individual or $2,500 per group
32.31of employees;
32.32(2) the award must be paid from the appropriation to which the savings accrued; and
32.33(3) employees whose primary job responsibility is to identify cost savings or ways
32.34of providing better or more efficient state services are generally not eligible for bonus
33.1compensation under this section except in extraordinary circumstances as defined by
33.2the commissioner.

33.3    Sec. 26. [16A.93] MINNESOTA PAY-FOR-PERFORMANCE ACT.
33.4Sections 16A.93 to 16A.96 may be cited as the "Minnesota Pay-for-Performance
33.5Act of 2011."
33.6EFFECTIVE DATE.This section is effective the day following final enactment.

33.7    Sec. 27. [16A.94] PAY-FOR-PERFORMANCE PROGRAM.
33.8    Subdivision 1. Pilot program established. The commissioner shall implement a
33.9pilot program to demonstrate the feasibility and desirability of using state appropriation
33.10bonds to pay for certain services based on performance and outcomes for the people served.
33.11    Subd. 2. Oversight committee. (a) The commissioner shall appoint an oversight
33.12committee to:
33.13(1) identify criteria to select one or more services to be included in the pilot program;
33.14(2) identify the conditions of performance and desired outcomes for the people
33.15served by each service selected;
33.16(3) identify criteria to evaluate whether a service has met the performance
33.17conditions; and
33.18(4) provide any other advice or assistance requested by the commissioner.
33.19(b) The oversight committee must include the commissioners of the Departments of
33.20Human Services, Employment and Economic Development, and Administration, or their
33.21designees; a representative of a nonprofit organization with experience in performance
33.22contracting; and any other person or organization that the commissioner determines would
33.23be of assistance in developing and implementing the pilot program.
33.24    Subd. 3. Contracts. The commissioner and the commissioner of the agency with a
33.25service to be provided through the pilot program may enter into a pay-for-performance
33.26contract with a provider that meets the criteria identified by the oversight committee.
33.27The contract must specify the service to be provided, the time frame in which it is to be
33.28provided, the outcome required for payment, and any other terms deemed necessary
33.29or convenient for implementation of the pilot program. The commissioner shall pay a
33.30provider that has met the terms and conditions of a contract with money appropriated to the
33.31commissioner from the special appropriation bond proceeds account established in section
33.3216A.96. At a minimum, before the commissioner pays a provider, the commissioner must
33.33determine that the provider has met the return on investment criteria in subdivision 4.
34.1    Subd. 4. Return on investment calculation. The commissioner, in consultation
34.2with the oversight committee, must establish the method and data required for calculating
34.3the state's return on investment. The data at a minimum must include:
34.4(1) state income taxes and any other revenues collected in the year after the service
34.5was provided that would not have been collected without the service; and
34.6(2) costs avoided by the state by providing the service.
34.7Prior to entering into a contract under subdivision 3, the commissioner in
34.8consultation with the oversight committee must determine that the services provided under
34.9the contract will yield a positive return on investment for the state that will cover the
34.10estimated state costs in financing and administering the pilot program through documented
34.11increased state tax revenue or cost avoidance.
34.12    Subd. 5. Report to governor and legislature. The commissioner must report to the
34.13governor and legislative committees with jurisdiction over capital investment, finance, and
34.14ways and means, and the services included in the pilot program, by January 15 of each
34.15year following a year in which the pilot program is operating. The report must describe
34.16and discuss the criteria for selection and evaluation of services to be provided through
34.17the program, the net benefits to the state of the program, the state's return on investment,
34.18the cost of the services provided by other means in the most recent past, the time frame
34.19for payment for the services, and the timing and costs for sale and issuance of the bonds
34.20authorized in section 16A.96.
34.21EFFECTIVE DATE.This section is effective the day following final enactment.

34.22    Sec. 28. [16A.96] MINNESOTA PAY-FOR-PERFORMANCE PROGRAM;
34.23APPROPRIATION BONDS.
34.24    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
34.25section.
34.26(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
34.27payable during a biennium from one or more of the following sources:
34.28(1) money appropriated by law in any biennium for debt service due with respect
34.29to obligations described in subdivision 2, paragraph (b);
34.30(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
34.31(3) payments received for that purpose under agreements and ancillary arrangements
34.32described in subdivision 2, paragraph (d); and
34.33(4) investment earnings on amounts in clauses (1) to (3).
34.34(c) "Debt service" means the amount payable in any biennium of principal, premium,
34.35if any, and interest on appropriation bonds.
35.1    Subd. 2. Authority. (a) Subject to the limitations of this subdivision, the
35.2commissioner of management and budget may sell and issue appropriation bonds of the
35.3state under this section for the purposes of the Minnesota pay-for-performance program
35.4established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to
35.5a special appropriation bond proceeds account in the state treasury. Net income from
35.6investment of the proceeds, as estimated by the commissioner, must be credited to the
35.7special appropriation bond proceeds account.
35.8(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
35.9the commissioner, are necessary to provide sufficient funds for achieving the purposes
35.10authorized as provided under paragraph (a), and pay debt service, pay costs of issuance,
35.11make deposits to reserve funds, pay the costs of credit enhancement, or make payments
35.12under other agreements entered into under paragraph (d); provided, however, that bonds
35.13issued and unpaid shall not exceed $10,000,000 in principal amount, excluding refunding
35.14bonds sold and issued under subdivision 4. During the biennium ending June 30, 2013,
35.15the commissioner may sell and issue bonds only in an amount that the commissioner
35.16determines will result in principal and interest payments less than the amount of savings to
35.17be generated through pay-for-performance contracts under section 16A.94. For programs
35.18achieving savings under a pay-for-performance contract, the commissioner must reduce
35.19general fund appropriations by at least the amount of principal and interest payments on
35.20bonds issued under this section.
35.21(c) Appropriation bonds may be issued in one or more series on the terms and
35.22conditions the commissioner determines to be in the best interests of the state, but the term
35.23on any series of bonds may not exceed 20 years.
35.24(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
35.25time thereafter, so long as the appropriation bonds are outstanding, the commissioner
35.26may enter into agreements and ancillary arrangements relating to the appropriation
35.27bonds, including but not limited to trust indentures, liquidity facilities, remarketing or
35.28dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
35.29reimbursement agreements, indexing agreements, or interest exchange agreements. Any
35.30payments made or received according to the agreement or ancillary arrangement shall be
35.31made from or deposited as provided in the agreement or ancillary arrangement. The
35.32determination of the commissioner included in an interest exchange agreement that the
35.33agreement relates to an appropriation bond shall be conclusive.
35.34    Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form
35.35of bonds, notes, or other similar instruments, and in the manner provided in section
36.116A.672. In the event that any provision of section 16A.672 conflicts with this section,
36.2this section shall control.
36.3(b) Every appropriation bond shall include a conspicuous statement of the limitation
36.4established in subdivision 6.
36.5(c) Appropriation bonds may be sold at either public or private sale upon such terms
36.6as the commissioner shall determine are not inconsistent with this section and may be sold
36.7at any price or percentage of par value. Any bid received may be rejected.
36.8(d) Appropriation bonds may bear interest at a fixed or variable rate.
36.9    Subd. 4. Refunding bonds. The commissioner from time to time may issue
36.10appropriation bonds for the purpose of refunding any appropriation bonds then
36.11outstanding, including the payment of any redemption premiums on the bonds, any
36.12interest accrued or to accrue to the redemption date, and costs related to the issuance
36.13and sale of the refunding bonds. The proceeds of any refunding bonds may, in the
36.14discretion of the commissioner, be applied to the purchase or payment at maturity of the
36.15appropriation bonds to be refunded, to the redemption of the outstanding bonds on any
36.16redemption date, or to pay interest on the refunding bonds and may, pending application,
36.17be placed in escrow to be applied to the purchase, payment, retirement, or redemption.
36.18Any escrowed proceeds, pending such use, may be invested and reinvested in obligations
36.19that are authorized investments under section 11A.24. The income earned or realized on
36.20the investment may also be applied to the payment of the bonds to be refunded or interest
36.21or premiums on the refunded bonds, or to pay interest on the refunding bonds. After
36.22the terms of the escrow have been fully satisfied, any balance of the proceeds and any
36.23investment income may be returned to the general fund or, if applicable, the appropriation
36.24bond proceeds account for use in any lawful manner. All refunding bonds issued under
36.25this subdivision must be prepared, executed, delivered, and secured by appropriations in
36.26the same manner as the bonds to be refunded.
36.27    Subd. 5. Appropriation bonds as legal investments. Any of the following entities
36.28may legally invest any sinking funds, money, or other funds belonging to them or under
36.29their control in any appropriation bonds issued under this section:
36.30(1) the state, the investment board, public officers, municipal corporations, political
36.31subdivisions, and public bodies;
36.32(2) banks and bankers, savings and loan associations, credit unions, trust companies,
36.33savings banks and institutions, investment companies, insurance companies, insurance
36.34associations, and other persons carrying on a banking or insurance business; and
36.35(3) personal representatives, guardians, trustees, and other fiduciaries.
37.1    Subd. 6. No full faith and credit; state not required to make appropriations.
37.2The appropriation bonds are not public debt of the state, and the full faith, credit, and
37.3taxing powers of the state are not pledged to the payment of the appropriation bonds or to
37.4any payment that the state agrees to make under this section. Appropriation bonds shall
37.5not be obligations paid directly, in whole or in part, from a tax of statewide application
37.6on any class of property, income, transaction, or privilege. Appropriation bonds shall be
37.7payable in each fiscal year only from amounts that the legislature may appropriate for debt
37.8service for any fiscal year, provided that nothing in this section shall be construed to
37.9require the state to appropriate funds sufficient to make debt service payments with respect
37.10to the bonds in any fiscal year.
37.11    Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds and
37.12interest credited to the special appropriation bond proceeds account are appropriated to
37.13the commissioner for payment of contract obligations under the pay-for-performance
37.14program, as permitted by state and federal law, reasonable administrative costs of the
37.15program that are directly attributable to the program, issuance costs, and nonsalary
37.16expenses incurred in conjunction with the sale of the appropriation bonds.
37.17    Subd. 8. Appropriation for debt service. The amount needed to pay principal and
37.18interest on appropriation bonds issued under this section is appropriated each year to the
37.19commissioner from the general fund subject to the repeal, unallotment under section
37.2016A.152, or cancellation otherwise pursuant to subdivision 6.
37.21    Subd. 9. Administrative costs. The commissioner may accept donations from
37.22private sources to defray administrative costs under this section. Amounts received are
37.23appropriated to the commissioner.
37.24EFFECTIVE DATE.This section is effective the day following final enactment.

37.25    Sec. 29. [16C.075] E-VERIFY.
37.26A contract for services valued in excess of $50,000 must require certification from
37.27the vendor and any subcontractors that, as of the date services on behalf of the state of
37.28Minnesota will be performed, the vendor and all subcontractors have implemented or are
37.29in the process of implementing the federal E-Verify program for all newly hired employees
37.30in the United States who will perform work on behalf of the state of Minnesota. This
37.31section does not apply to contracts entered into by the State Board of Investment.
37.32EFFECTIVE DATE.This section is effective the day following final enactment,
37.33and applies to contracts entered into on or after that date.

38.1    Sec. 30. [16D.18] RECIPROCAL AGREEMENT.
38.2(a) The commissioner is authorized to enter into agreements with the federal
38.3Department of the Treasury that provide for offsetting state payments against federal
38.4nontax obligations. Except as provided in paragraph (d), the commissioner may charge a
38.5fee of $20 per transaction for such offsets and may collect this offset fee from the debtor
38.6by deducting it from the state payment. The agreement may provide for offsetting federal
38.7payments, as authorized by federal law, against state tax and nontax obligations, and
38.8collecting the offset cost from the debtor. The agreement shall provide that the federal
38.9Department of the Treasury may deduct a fee from each administrative offset and state
38.10payment offset. Setoffs to collect state and other entity obligations under chapters 16D,
38.11270A, 270C, and any other provision of Minnesota Statutes occur before a state payment
38.12offset. For purposes of this paragraph "administrative offset" is any offset of federal
38.13payments to collect state debts and "state payment offset" is any offset of state payments
38.14to collect federal nontax debts.
38.15(b) A debt is eligible for offset under this program if notice of intent to offset the
38.16debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if
38.17required by federal law or an agreement with the federal Department of the Treasury.
38.18When there is an agreement for scheduled payments on an account, the debtor must be
38.19sent this notice each time an additional debt is claimed.
38.20(c) The debtor shall have the time period required for notice under paragraph (b) to
38.21contest the offset. An agreement under this section must not allow for offset of payments
38.22if the debt that would be subject to the offset is being contested or if the time for appealing
38.23the determination of the debt has not yet expired. The treasury offset program agreement
38.24entered into by the state must not require federal agencies to provide different due process
38.25than the requirements under Code of Federal Regulations, title 31, section 285.6.
38.26(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner
38.27enters into a contingency fee agreement with a nonstate vendor to provide assistance
38.28under this section, the commissioner may charge a debtor a fee for the processing of state
38.29payment offsets for the recovery of federal nontax debts or the processing of federal
38.30payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
38.31and may be withheld from any refund, reimbursement, or other money held for the debtor.
38.32The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply
38.33to fees charged under this paragraph.
38.34EFFECTIVE DATE.This section is effective the day following final enactment. As
38.35soon as possible after that date, the commissioner must discuss an agreement authorized
38.36under this section with appropriate federal officials, and if an agreement is entered into,
39.1the commissioner must begin to implement it to collect debts owed to the state as soon as
39.2possible.

39.3    Sec. 31. Minnesota Statutes 2010, section 37.06, is amended to read:
39.437.06 SECRETARY; LEGISLATIVE AUDITOR; DUTIES; REPORT.
39.5The secretary shall keep a complete record of the proceedings of the annual meetings
39.6of the State Agricultural Society and all meetings of the board of managers and any
39.7committee of the board, keep all accounts of the society other than those kept by the
39.8treasurer of the society, and perform other duties as directed by the board of managers. On
39.9or before December 31 each year, the secretary shall report to the governor for the fiscal
39.10year ending October 31 all the proceedings of the society during the current year and its
39.11financial condition as appears from its books. This report must contain a full, detailed
39.12statement of all receipts and expenditures during the year.
39.13The books and accounts of the society for the fiscal year must be examined and
39.14audited annually by an independent auditor, either a private auditor or the legislative
39.15auditor. If the audit is conducted by the legislative auditor, the cost of the examination
39.16must be paid by the society to the state and credited to the general fund.
39.17A summary of this examination, certified by the legislative auditor, must be
39.18appended to the secretary's report, along with the legislative auditor's recommendations
39.19and the proceedings of the first annual meeting of the society held following the secretary's
39.20report, including addresses made at the meeting as directed by the board of managers. The
39.21summary, recommendations, and proceedings must be printed in the same manner as the
39.22reports of state officers. Copies of the report must be printed annually and distributed as
39.23follows: to each society or association entitled to membership in the society, to each
39.24newspaper in the state, and the remaining copies as directed by the board of managers.

39.25    Sec. 32. Minnesota Statutes 2010, section 161.1419, subdivision 8, is amended to read:
39.26    Subd. 8. Expiration. The commission expires on June 30, 2012 2016.

39.27    Sec. 33. Minnesota Statutes 2010, section 270C.41, is amended to read:
39.28270C.41 AGREEMENT WITH INTERNAL REVENUE SERVICE
39.29AGREEMENTS WITH FEDERAL GOVERNMENT.
39.30    Subdivision 1. Agreement with Internal Revenue Service. Pursuant to section
39.31270B.12 , the commissioner may enter into an agreement with the Internal Revenue
39.32Service to identify taxpayers who have refunds due from the department and liabilities
39.33owing to the Internal Revenue Service. In accordance with the procedures established in
40.1the agreement, the Internal Revenue Service may levy against the refunds to be paid by
40.2the department. For each refund levied upon, the commissioner shall first deduct from
40.3the refund a fee of $20, and then remit the refund or the amount of the levy, whichever
40.4is less, to the Internal Revenue Service. The proceeds of fees shall be deposited into the
40.5Department of Revenue recapture revolving fund under section 270A.07, subdivision 1.
40.6    Subd. 2. Reciprocal offset agreements. (a) The commissioner is authorized
40.7to enter into agreements with the federal Department of the Treasury that provide for
40.8offsetting state payments against federal nontax obligations. Except as provided in
40.9paragraph (d), the commissioner may charge a fee of $20 per transaction for such offsets
40.10and may collect this offset fee from the debtor by deducting it from the state payment.
40.11The agreement may provide for offsetting federal payments, as authorized by federal law,
40.12against state tax and nontax obligations, and collecting the offset cost from the debtor.
40.13The agreement shall provide that the federal Department of the Treasury may deduct a
40.14fee from each administrative offset and state payment offset. Setoffs to collect state and
40.15other entity obligations under chapters 16D, 270A, 270C, and any other provision of
40.16Minnesota Statutes, occur before a state payment offset. For purposes of this paragraph
40.17"administrative offset" is any offset of federal payments to collect state debts and "state
40.18payment offset" is any offset of state payments to collect federal nontax debts.
40.19(b) A debt is eligible for offset under this program if notice of intent to offset the
40.20debt is sent at least 60 days prior to filing an offset claim or a shorter period of time, if
40.21required by federal law or an agreement with the federal Department of the Treasury.
40.22When there is an agreement for scheduled payments on an account, the debtor must be
40.23sent this notice each time an additional debt is claimed.
40.24(c) The debtor shall have the time period required for notice under paragraph (b) to
40.25contest the offset. An agreement under this section must not allow for offset of payments
40.26if the debt that would be subject to the offset is being contested or if the time for appealing
40.27the determination of the debt has not yet expired. The treasury offset program agreement
40.28entered into by the state must not require federal agencies to provide different due process
40.29than the requirements under Code of Federal Regulations, title 31, section 285.6.
40.30(d) Notwithstanding the fee authorized under paragraph (a), if the commissioner
40.31enters into a contingency fee agreement with a nonstate vendor to provide assistance
40.32under this section, the commissioner may charge a debtor a fee for the processing of state
40.33payment offsets for the recovery of federal nontax debts or the processing of federal
40.34payment offsets for the recovery of state tax and nontax debt. The fee is a separate debt
40.35and may be withheld from any refund, reimbursement, or other money held for the debtor.
41.1The fee may not exceed 15 percent of the original debt. Section 16A.1283 does not apply
41.2to fees charged under this paragraph.
41.3EFFECTIVE DATE.This section is effective the day following final enactment. As
41.4soon as possible after that date, the commissioner must discuss an agreement authorized
41.5under this section with appropriate federal officials, and if an agreement is entered into,
41.6the commissioner must begin to implement it to collect debts owed to the state as soon as
41.7possible.

41.8    Sec. 34. Minnesota Statutes 2010, section 270C.545, is amended to read:
41.9270C.545 FEDERAL TAX REFUND OFFSET FEES; TIME LIMIT FOR
41.10SUBMITTING CLAIMS FOR OFFSET.
41.11For If fees are charged by the Department of the Treasury of the United States for
41.12the offset of federal tax refunds that or the offset of federal payments and these fees are
41.13deducted from the refund or the federal payment amounts remitted to the commissioner,
41.14then the unpaid debts of the taxpayers whose refunds or federal payments are being
41.15offset to satisfy the debts are reduced only by the actual amount of the refund payments
41.16or federal payments received by the commissioner. Notwithstanding any other provision
41.17of law to the contrary, a claim for the offset of a federal tax refund must be submitted to
41.18the Department of the Treasury of the United States within ten years after the date of the
41.19assessment of the tax owed by the taxpayer whose refund is to be offset to satisfy the
41.20debt. For court debts referred to the commissioner under section 16D.04, subdivision 2,
41.21paragraph (a), the federal refund offset fees are deducted as provided in this section, but
41.22the ten-year time limit prescribed in this section for tax debts does not apply.

41.23    Sec. 35. Minnesota Statutes 2010, section 471.697, subdivision 2, is amended to read:
41.24    Subd. 2. First class city audits. The state auditor shall continue to audit cities of
41.25the first class pursuant to section 6.49, subject to the authority in section 6.49 for certain
41.26cities of the first class to have audits performed by a certified public accountant firm
.

41.27    Sec. 36. Laws 2010, chapter 361, article 3, section 8, is amended to read:
41.28    Sec. 8. USE OF CARRYFORWARD.
41.29The restrictions in Minnesota Statutes, section 16A.281, on the use of money carried
41.30forward from one biennium to another shall not apply to money the legislative auditor
41.31carried forward from the previous biennium for use in fiscal years 2010 and 2011 ending
41.32June 30, 2009, or the biennium ending June 30, 2011. The legislative auditor may use the
42.1carry forward money for costs related to the conduct of audits related to funds authorized
42.2in the Minnesota Constitution, Article XI, section 15, and audits related to the institutions,
42.3offices, and functions of the Minnesota State Colleges and Universities.
42.4EFFECTIVE DATE.This section is effective the day following final enactment.

42.5    Sec. 37. STATE BUILDING EFFICIENCY.
42.6    Subdivision 1. Request for proposals. By September 1, 2011, the commissioner of
42.7administration shall issue one or more requests for proposals for a contract or contracts to
42.8provide services or systems that promote efficiencies in state building management. The
42.9requests for proposals shall include requirements that maximize the use of data analytics
42.10to influence energy consumption, including equipment and system performance, facility
42.11operations, and facility maintenance. To the extent applicable to the solicitation, and if
42.12determined by the commissioner to be in the best interest of the state, the request for
42.13proposals shall require the vendor or vendors to provide a system that provides concurrent
42.14building monitoring, energy consumption optimization, and equipment performance
42.15information.
42.16    Subd. 2. Standards-based platform system with data analytics. To the extent
42.17applicable to the solicitation, and if determined by the commissioner to be in the best
42.18interest of the state, the request for proposals must require the vendor or vendors to
42.19provide: (1) a standards-based platform system with the capability to integrate and
42.20coordinate a variety of control systems, including their data, and the ability to manage
42.21all state buildings and their control systems; and (2) a system that uses data analytics to
42.22integrate corrective action notification and work order management.
42.23    Subd. 3. Proof of concept phase. To the extent applicable to the solicitation, and
42.24if determined by the commissioner to be in the best interest of the state, the request for
42.25proposals shall require the selected vendor or vendors, at no cost to the state, to conduct a
42.26proof of concept phase to demonstrate savings provided by the proposed solution. Prior to
42.27execution of any contract for implementation of a proposed solution, a vendor and the
42.28state must agree on how savings during a full implementation phase would be defined,
42.29measured, and verified, to ensure that the contract will provide the highest possible return
42.30on investment to the state.
42.31    Subd. 4. Contingency fee authorized. Contracts entered into pursuant to this
42.32section may be paid for by the state from the savings attributable to the work done by the
42.33vendor, according to the terms and performance measures negotiated in the contract.
42.34    Subd. 5. Selection of vendor. The commissioner of administration shall select
42.35a vendor from the responses to the request for proposal by January 1, 2012, if the
43.1commissioner determines proceeding with a contract or contracts is in the best interest of
43.2the state.
43.3    Subd. 6. 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. 38. FLEET MANAGEMENT IMPROVEMENTS.
43.9    Subdivision 1. Request for proposals. By September 1, 2011, the commissioner of
43.10administration shall issue a request for proposals to improve the procurement, allocation,
43.11control, energy efficiency, maintenance, and in-service life of state vehicles. The request
43.12for proposal may include recommendations and solutions that address:
43.13(1) a life-cycle solution for vehicle management, covering all stages from
43.14procurement through disposal of state vehicles; and
43.15(2) the integration of data analytics to provide vehicle tracking, usage, and proactive
43.16maintenance management.
43.17    Subd. 2. Proof of concept phase. The request for proposals shall reserve the right
43.18of the state to require a proof of concept phase to demonstrate the cost-savings potential of
43.19the recommendations and solutions proposed. During a proof of concept phase, the vendor
43.20and the state must agree on how savings would be defined, measured, and verified, to
43.21ensure that the contract will provide the highest possible return on investment to the state.
43.22    Subd. 3. Contingency fee authorized. Contracts entered into pursuant to this
43.23section may be paid by the state from the savings attributable to the work done by the
43.24vendor, according to the terms and performance measures negotiated in the contract.
43.25    Subd. 4. Selection of vendor. The commissioner of administration shall select
43.26a vendor from the responses to the request for proposal by January 1, 2012, if the
43.27commissioner determines proceeding with a contract or contracts is in the best interests of
43.28the state.
43.29    Subd. 5. Progress report. The commissioner shall provide a report describing the
43.30progress made under this section to the governor and the chairs and ranking minority
43.31members of the legislative committees with jurisdiction over the commissioner of
43.32administration by January 15, 2012. The report shall provide a dynamic scoring analysis
43.33of the work described in the report.

44.1    Sec. 39. STATE EMPLOYEE EFFICIENT USE OF HEALTH CARE
44.2INCENTIVE PROGRAM.
44.3The commissioner of management and budget may develop and implement a
44.4program that creates an incentive for efficient use by state employees of State Employee
44.5Group Insurance Program (SEGIP). The program may reward employees covered by
44.6SEGIP as a group if per capita employee health care costs paid by SEGIP for a calendar
44.7year prove to be less than estimated by the commissioner prior to the beginning of the
44.8calendar year. The reward may consist of payments of one-half of the cost-savings into
44.9the employees' health reimbursement accounts, to be made no later than June 30 of the
44.10following calendar year.

44.11    Sec. 40. STATE EMPLOYEE GROUP INSURANCE PLAN DEPENDENT
44.12ELIGIBILITY VERIFICATION AUDIT SERVICES.
44.13    Subdivision 1. Request for proposals. By October 1, 2011, the commissioner
44.14of management and budget shall issue a request for proposals for a contract to provide
44.15dependent eligibility verification audit services for state-paid hospital, medical, and dental
44.16benefits provided to participants in the state employee group insurance program and their
44.17dependents. The request for proposals must require that the vendor will:
44.18(1) conduct a document-model dependent eligibility verification audit of all plans
44.19offered under Minnesota Statutes, sections 43A.22 to 43A.31;
44.20(2) identify ineligible dependents covered by the plans and report those findings to
44.21the commissioner and third-party administrators of the state's employee health plans, as
44.22directed by the commissioner; and
44.23(3) implement a process for ongoing eligibility verification following the conclusion
44.24of the dependent eligibility verification audit required by this section.
44.25    Subd. 2. Additional vendor criteria. The request for proposals required by
44.26subdivision 1 must require the vendor to provide the following minimum capabilities and
44.27experience in performing the services described in subdivision 1:
44.28(1) a rules-based process for making objective eligibility determinations;
44.29(2) assigned eligibility advocates to assist employees through the verification
44.30process;
44.31(3) a formal claims and appeals process; and
44.32(4) experience in the performance of dependent eligibility verification audits.
44.33    Subd. 3. Contract required. By January 1, 2012, the commissioner must enter
44.34into a contract for the services specified in subdivision 1. The contract may incorporate
45.1a performance-based vendor financing option that compensates the vendor based on the
45.2amount of savings generated by the work performed under the contract.

45.3    Sec. 41. STRATEGIC SOURCING REQUEST FOR PROPOSALS.
45.4    Subdivision 1. Request for proposals. By September 1, 2011, the commissioner
45.5of administration shall issue a request for proposals for a contract to promote the use
45.6of data analytics to promote efficiencies in strategic sourcing. For the purposes of
45.7this section, "strategic sourcing" has the meaning given in Minnesota Statutes, section
45.816C.02, subdivision 20. The request for proposals may require the vendor to provide
45.9recommendations for improvements to methods used by the commissioner to analyze and
45.10reduce spending on goods and services, including, but not limited to, spend analysis,
45.11product standardization, contract consolidation, negotiations, multiple jurisdiction
45.12purchasing alliances, reverse and forward auctions, life-cycle costing, and other
45.13techniques.
45.14    Subd. 2. Proof of concept phase. The request for proposal shall reserve the right of
45.15the state to require a proof of concept phase, at no cost to the state, to demonstrate the
45.16savings provided by the recommendations.
45.17    Subd. 3. Contingency fee authorized. Contracts entered into pursuant to this
45.18section may be paid for by the state from the savings attributable to the work done by the
45.19vendor, according to the terms and performance measures negotiated in the contract.
45.20    Subd. 4. Selection of vendor. The commissioner of administration shall select,
45.21from qualified respondents, a vendor or vendors from the responses to the request for
45.22proposal by January 1, 2012, if the commissioner determines proceeding with a contract
45.23or contracts is in the best interests of the state.
45.24    Subd. 5. Progress report. The commissioner shall provide a report describing the
45.25progress made under this section to the governor and the chairs and ranking minority
45.26members of the legislative committees with jurisdiction over the commissioner of
45.27administration by January 15, 2012.

45.28    Sec. 42. STATE JOB CLASSIFICATIONS.
45.29The commissioner of management and budget shall report to the legislature by
45.30January 15, 2012, on a process to redesign and consolidate the job classification plan for
45.31executive branch employees, with a goal of assigning all classified positions to no more
45.32than 50 job families. The process must lead to development of a new job classification
45.33plan designed to enhance the ability of state agencies to flexibly manage their workforces
45.34to meet changing needs and demands of the agency, and to enhance the ability of state
46.1employees to transfer to other positions for which they are qualified. In developing this
46.2process, the commissioner must meet and confer with the exclusive representatives of each
46.3affected bargaining unit. The report to the legislature must identify implementation issues.

46.4    Sec. 43. HELP AMERICA VOTE ACT.
46.5(a) If the secretary of state determines that this state is otherwise eligible to receive
46.6an additional requirements payment of federal money under the Help America Vote Act,
46.7Public Law 107-252, the secretary must certify to the commissioner of management and
46.8budget the amount, if any, needed to meet the matching requirement of section 253(b)(5)
46.9of the Help America Vote Act. In the certification, the secretary shall specify the portion
46.10of the match that should be taken from an unencumbered general fund appropriation to
46.11the Office of the Secretary of State not designated for a different purpose. Upon receipt
46.12of that certification, or as soon as an unencumbered general fund appropriation becomes
46.13available, whichever occurs later, the commissioner must transfer the specified amount
46.14to the Help America Vote Act account. Funds under the Help America Vote Act may be
46.15spent only following legislative approval.
46.16(b) This section expires on June 30, 2013.
46.17EFFECTIVE DATE.This section is effective the day following final enactment.

46.18    Sec. 44. PERFORMANCE APPRAISAL SYSTEM REPORT.
46.19The commissioner of management and budget must report to the legislature by
46.20January 15, 2012 on a plan for redesign and implementation of the performance appraisal
46.21system for executive branch employees. The redesigned system must include three
46.22components:
46.23(1) evaluation of the individual employee's performance relative to goals for that
46.24individual, which must constitute a majority of the overall determination of an employee's
46.25performance;
46.26(2) evaluation of the performance of individual employee's program, defined by the
46.27agency head, toward meeting targeted outcomes for the program; and
46.28(3) evaluation of the performance of the entire agency toward meeting targeted
46.29outcomes for the agency.
46.30The redesigned system under the report must provide that an employee may not
46.31receive an increase in salary or wages based on progression to another step or lane unless
46.32the employee's supervisor certifies that the employee's performance has been satisfactory.

46.33    Sec. 45. SERVICE CREDIT AND CREDITED SALARY.
47.1A state employee as defined in Minnesota Statutes, chapter 43A or 352, who was
47.2laid off or placed on unpaid leave during July 2011 and accepts recall during July 2011
47.3shall receive service credit and credited salary in a retirement plan as if the employee had
47.4actually been employed during the period of layoff or unpaid leave during July 2011.
47.5EFFECTIVE DATE.This section is effective the day following final enactment
47.6and is retroactive to July 1, 2011.

47.7    Sec. 46. FTE REPORT.
47.8The commissioner of management and budget must report to the legislature on
47.9July 31, 2012, and July 31, 2013, on the reduction in the number of full-time equivalent
47.10executive branch employees as of June 30, 2012, and June 30, 2013, compared to the
47.11number on June 30, 2011. Each report must list the number of full-time equivalent
47.12employees in each executive agency.

47.13    Sec. 47. BUYER'S CARD; TEMPORARY EXTENSION.
47.14A retailer whose retailer card authorized under Minnesota Rules, part 7515.0210,
47.15subpart 3, has expired between June 15, 2011, and July 25, 2011, may purchase alcohol
47.16using an expired card, and a licensed Minnesota wholesaler may accept a card as
47.17legitimate until July 31, 2011.
47.18EFFECTIVE DATE.This section is effective the day following final enactment.

47.19    Sec. 48. RACING DAYS LOST DUE TO SHUTDOWN.
47.20The Minnesota Racing Commission shall waive racing days requirements in
47.21Minnesota Statutes, chapter 240, including those in Minnesota Statutes, section 240.30,
47.22for the 2011 racing season, to the extent the commission determines a racetrack was
47.23unable to meet racing days requirements due to the July 2011 state government shutdown.
47.24EFFECTIVE DATE.This section is effective the day following final enactment.

47.25    Sec. 49. WAIVER OF LATE FEES.
47.26Notwithstanding any law to the contrary, a state agency may waive a late fee or
47.27penalty in connection with issuance or renewal of a license, permit, or registration
47.28document issued by the agency, if the agency determines that the lateness was due in
47.29whole or in part to agency operations being affected by the state government shutdown
47.30in July 2011.

48.1ARTICLE 4
48.2CONSOLIDATION OF INFORMATION TECHNOLOGY SERVICES

48.3    Section 1. Minnesota Statutes 2010, section 16B.99, as amended by Laws 2011, chapter
48.468, sections 1 and 2, is amended to read:
48.516B.99 GEOSPATIAL INFORMATION OFFICE.
48.6    Subdivision 1. Creation. The Minnesota Geospatial Information Office is created
48.7under the supervision of the commissioner of administration chief geospatial information
48.8officer, who is appointed by the chief information officer.
48.9    Subd. 2. Responsibilities; authority. The office has authority to provide
48.10coordination, guidance, and leadership, and to plan the implementation of Minnesota's
48.11geospatial information technology. The office must identify, coordinate, and guide
48.12strategic investments in geospatial information technology systems, data, and services to
48.13ensure effective implementation and use of Geospatial Information Systems (GIS) by state
48.14agencies to maximize benefits for state government as an enterprise.
48.15    Subd. 3. Duties. The office must:
48.16(1) coordinate and guide the efficient and effective use of available federal,
48.17state, local, and public-private resources to develop statewide geospatial information
48.18technology, data, and services;
48.19(2) provide leadership and outreach, and ensure cooperation and coordination for all
48.20Geospatial Information Systems (GIS) functions in state and local government, including
48.21coordination between state agencies, intergovernment coordination between state and local
48.22units of government, and extragovernment coordination, which includes coordination with
48.23academic and other private and nonprofit sector GIS stakeholders;
48.24(3) review state agency and intergovernment geospatial technology, data, and
48.25services development efforts involving state or intergovernment funding, including federal
48.26funding;
48.27(4) provide information to the legislature regarding projects reviewed, and
48.28recommend projects for inclusion in the governor's budget under section 16A.11;
48.29(5) coordinate management of geospatial technology, data, and services between
48.30state and local governments;
48.31(6) provide coordination, leadership, and consultation to integrate government
48.32technology services with GIS infrastructure and GIS programs;
48.33(7) work to avoid or eliminate unnecessary duplication of existing GIS technology
48.34services and systems, including services provided by other public and private organizations
48.35while building on existing governmental infrastructures;
49.1(8) promote and coordinate consolidated geospatial technology, data, and services
49.2and shared geospatial Web services for state and local governments; and
49.3(9) promote and coordinate geospatial technology training, technical guidance, and
49.4project support for state and local governments.
49.5    Subd. 4. Duties of chief geospatial information officer. (a) In consultation with the
49.6state geospatial advisory council, the commissioner of administration, the commissioner
49.7of management and budget, and the Minnesota chief geospatial information officer, the
49.8chief geospatial information officer must identify when it is cost-effective for agencies to
49.9develop and use shared information and geospatial technology systems, data, and services.
49.10The chief geospatial information officer may require agencies to use shared information
49.11and geospatial technology systems, data, and services.
49.12(b) The chief geospatial information officer, in consultation with the state
49.13geospatial advisory council, must establish reimbursement rates in cooperation with the
49.14commissioner of management and budget to bill agencies and other governmental entities
49.15sufficient to cover the actual development, operation, maintenance, and administrative
49.16costs of the shared systems. The methodology for billing may include the use of
49.17interagency agreements, or other means as allowed by law.
49.18    Subd. 5. Fees. (a) The chief geospatial information officer must set fees under
49.19section 16A.1285 that reflect the actual cost of providing information products and
49.20services to clients. Fees collected must be deposited in the state treasury and credited to
49.21the Minnesota Geospatial Information Office revolving account. Money in the account
49.22is appropriated to the chief geospatial information officer for providing Geospatial
49.23Information Systems (GIS) consulting services, software, data, Web services, and map
49.24products on a cost-recovery basis, including the cost of services, supplies, material, labor,
49.25and equipment as well as the portion of the general support costs and statewide indirect
49.26costs of the office that is attributable to the delivery of these products and services. Money
49.27in the account must not be used for the general operation of the Minnesota Geospatial
49.28Information Office.
49.29(b) The chief geospatial information officer may require a state agency to make an
49.30advance payment to the revolving account sufficient to cover the agency's estimated
49.31obligation for a period of 60 days or more. If the revolving account is abolished or
49.32liquidated, the total net profit from the operation of the account must be distributed to the
49.33various funds from which purchases were made. For a given period of time, the amount of
49.34total net profit to be distributed to each fund must reflect the same ratio of total purchases
49.35attributable to each fund divided by the total purchases from all funds.
50.1    Subd. 6. Accountability. The chief geospatial information officer is appointed by
50.2the commissioner of administration and must work closely with the Minnesota chief
50.3information officer who shall advise on technology projects, standards, and services.
50.4    Subd. 7. Discretionary powers. The office may:
50.5(1) enter into contracts for goods or services with public or private organizations
50.6and charge fees for services it provides;
50.7(2) apply for, receive, and expend money from public agencies;
50.8(3) apply for, accept, and disburse grants and other aids from the federal government
50.9and other public or private sources;
50.10(4) enter into contracts with agencies of the federal government, local government
50.11units, the University of Minnesota and other educational institutions, and private persons
50.12and other nongovernment organizations as necessary to perform its statutory duties;
50.13(5) appoint committees and task forces to assist the office in carrying out its duties;
50.14(6) sponsor and conduct conferences and studies, collect and disseminate
50.15information, and issue reports relating to geospatial information and technology issues;
50.16(7) participate in the activities and conferences related to geospatial information
50.17and communications technology issues;
50.18(8) review the Geospatial Information Systems (GIS) technology infrastructure
50.19of regions of the state and cooperate with and make recommendations to the governor,
50.20legislature, state agencies, local governments, local technology development agencies,
50.21the federal government, private businesses, and individuals for the realization of GIS
50.22information and technology infrastructure development potential;
50.23(9) sponsor, support, and facilitate innovative and collaborative geospatial systems
50.24technology, data, and services projects; and
50.25(10) review and recommend alternative sourcing strategies for state geospatial
50.26information systems technology, data, and services.
50.27    Subd. 8. Geospatial advisory councils created. The chief geospatial information
50.28officer must establish a governance structure that includes advisory councils to provide
50.29recommendations for improving the operations and management of geospatial technology
50.30within state government and also on issues of importance to users of geospatial technology
50.31throughout the state.
50.32(a) A statewide geospatial advisory council must advise the Minnesota Geospatial
50.33Information Office regarding the improvement of services statewide through the
50.34coordinated, affordable, reliable, and effective use of geospatial technology. The
50.35commissioner of administration chief information officer must appoint the members of the
50.36council. The members must represent a cross-section of organizations including counties,
51.1cities, universities, business, nonprofit organizations, federal agencies, tribal governments,
51.2and state agencies. No more than 20 percent of the members may be employees of a state
51.3agency. In addition, the chief geospatial information officer must be a nonvoting member.
51.4(b) A state government geospatial advisory council must advise the Minnesota
51.5Geospatial Information Office on issues concerning improving state government services
51.6through the coordinated, affordable, reliable, and effective use of geospatial technology.
51.7The commissioner of administration chief information officer must designate up to 15
51.8state government agencies and constitutional offices, including the Office of Enterprise
51.9Technology and the Minnesota Geospatial Information Office, to be represented on the
51.10council. The council must be chaired by the chief geographic information officer. A
51.11representative of the statewide geospatial advisory council must serve as a nonvoting
51.12member.
51.13(c) Members of both the statewide geospatial advisory council and the state
51.14government advisory council must be recommended by a process that ensures that
51.15each member is designated to represent a clearly identified agency or interested party
51.16category. Members of the statewide geospatial advisory council must be selected in
51.17compliance with the state's open appointment process. Members of the state government
51.18geospatial advisory council must be appointed by the heads of their respective agencies or
51.19constitutional offices. One member of the state government geospatial advisory council
51.20must be appointed by the Legislative Coordinating Commission. Members shall serve a
51.21term of two years.
51.22(d) The Minnesota Geospatial Information Office must provide administrative
51.23support for both geospatial advisory councils.
51.24(e) This subdivision expires June 30, 2015.
51.25Subdivision 9 repealed by Laws 2011, chapter 68, section 2.

51.26    Sec. 2. [16E.0151] RESPONSIBILITY FOR INFORMATION TECHNOLOGY
51.27SERVICES AND EQUIPMENT.
51.28(a) The chief information officer is responsible for providing or entering into
51.29managed services contracts for the provision, improvement, and development of the
51.30following information technology systems and services to state agencies:
51.31(1) state data centers;
51.32(2) mainframes including system software;
51.33(3) servers including system software;
51.34(4) desktops including system software;
51.35(5) laptop computers including system software;
52.1(6) a data network including system software;
52.2(7) database, electronic mail, office systems, reporting, and other standard software
52.3tools;
52.4(8) business application software and related technical support services;
52.5(9) help desk for the components listed in clauses (1) to (8);
52.6(10) maintenance, problem resolution, and break-fix for the components listed in
52.7clauses (1) to (8);
52.8(11) regular upgrades and replacement for the components listed in clauses (1)
52.9to (8); and
52.10(12) network-connected output devices.
52.11(b) All state agency employees whose work primarily involves functions specified
52.12in paragraph (a) are employees of the Office of Enterprise Technology. This includes
52.13employees who directly perform the functions in paragraph (a), as well as employees
52.14whose work primarily involves managing, supervising, or providing administrative
52.15services or support services to employees who directly perform these functions. The
52.16chief information officer may assign employees of the office to perform work exclusively
52.17for another state agency.
52.18(c) Subject to sections 16C.08 and 16C.09, the chief information officer may allow
52.19a state agency to obtain services specified in paragraph (a) through a contract with an
52.20outside vendor when the chief information officer and the agency head agree that a
52.21contract would provide best value, as defined in section 16C.02, under the service-level
52.22agreement. The chief information officer must require that agency contracts with outside
52.23vendors ensure that systems and services are compatible with standards established by the
52.24Office of Enterprise Technology.
52.25(d) The Minnesota State Retirement System, the Public Employees Retirement
52.26Association, the Teachers Retirement Association, the State Board of Investment, the
52.27Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide
52.28Radio Board are not state agencies for purposes of this section.
52.29EFFECTIVE DATE.This section is effective October 1, 2011.

52.30    Sec. 3. [16E.036] ADVISORY COMMITTEE.
52.31(a) The Technology Advisory Committee is created to advise the chief information
52.32officer. The committee consists of six members appointed by the governor who are
52.33individuals actively involved in business planning for state executive branch agencies,
52.34one county member designated by the Association of Minnesota Counties, one member
52.35appointed by the governor as a representative of a union that represents state information
53.1technology employees, and one member appointed by the governor to represent private
53.2businesses.
53.3(b) Membership terms, removal of members, and filling of vacancies are as provided
53.4in section 15.059. Members do not receive compensation or reimbursement for expenses.
53.5(c) The committee shall select a chair from its members. The chief information
53.6officer shall provide administrative support to the committee.
53.7(d) The committee shall advise the chief information officer on:
53.8(1) development and implementation of the state information technology strategic
53.9plan;
53.10(2) critical information technology initiatives for the state;
53.11(3) standards for state information architecture;
53.12(4) identification of business and technical needs of state agencies;
53.13(5) strategic information technology portfolio management, project prioritization,
53.14and investment decisions;
53.15(6) the office's performance measures and fees for service agreements with executive
53.16branch agencies;
53.17(7) management of the state enterprise technology revolving fund; and
53.18(8) the efficient and effective operation of the office.

53.19    Sec. 4. Minnesota Statutes 2010, section 16E.04, subdivision 2, is amended to read:
53.20    Subd. 2. Responsibilities. (a) In addition to other activities prescribed by law, the
53.21office shall carry out the duties set out in this subdivision.
53.22    (b) The office shall develop and establish a state information architecture to ensure:
53.23(1) that state agency development and purchase of information and communications
53.24systems, equipment, and services is designed to ensure that individual agency information
53.25systems complement and do not needlessly duplicate or conflict with the systems of other
53.26agencies; and
53.27(2) enhanced public access to data can be provided consistent with standards
53.28developed under section 16E.05, subdivision 4.
53.29When state agencies have need for the same or similar public data, the chief information
53.30officer, in coordination with the affected agencies, shall manage the most efficient and
53.31cost-effective method of producing and storing data for or sharing data between those
53.32agencies. The development of this information architecture must include the establishment
53.33of standards and guidelines to be followed by state agencies. The office shall ensure
53.34compliance with the architecture.
54.1    (c) The office shall assist, in cooperation with state agencies in the planning and
54.2management, plan and manage the development and improvement of information
54.3systems so that an individual information system reflects and supports the state agency's
54.4mission and the state's requirements and functions. The office shall review and
54.5approve agency technology plans to ensure consistency with enterprise information
54.6and telecommunications technology strategy. By January 15 of each year, the chief
54.7information officer must report to the chairs and the ranking minority members of
54.8the legislative committees and divisions with jurisdiction over the office regarding the
54.9assistance provided under this paragraph. The report must include a listing of agencies
54.10that have developed or are developing plans under this paragraph.
54.11    (d) The office shall review and approve agency requests for funding for the
54.12development or purchase of information systems equipment or software before the
54.13requests may be included in the governor's budget.
54.14    (e) The office shall review and approve agency requests for grant funding that have
54.15an information and technology component.
54.16(f) The office shall review major purchases of information systems equipment to:
54.17    (1) ensure that the equipment follows the standards and guidelines of the state
54.18information architecture;
54.19    (2) ensure the agency's proposed purchase reflects a cost-effective policy regarding
54.20volume purchasing; and
54.21    (3) ensure that the equipment is consistent with other systems in other state agencies
54.22so that data can be shared among agencies, unless the office determines that the agency
54.23purchasing the equipment has special needs justifying the inconsistency.
54.24    (f) (g) The office shall review the operation of information systems by state agencies
54.25and ensure that these systems are operated efficiently and securely and continually meet
54.26the standards and guidelines established by the office. The standards and guidelines must
54.27emphasize uniformity that is cost-effective for the enterprise, that encourages information
54.28interchange, open systems environments, and portability of information whenever
54.29practicable and consistent with an agency's authority and chapter 13.
54.30    (g) (h) The office shall conduct a comprehensive review at least every three years of
54.31the information systems investments that have been made by state agencies and higher
54.32education institutions. The review must include recommendations on any information
54.33systems applications that could be provided in a more cost-beneficial manner by an outside
54.34source. The office must report the results of its review to the legislature and the governor.

54.35    Sec. 5. [16E.145] INFORMATION TECHNOLOGY APPROPRIATION.
55.1An appropriation for a state agency information and telecommunications technology
55.2project must be made to the chief information officer. The chief information officer must
55.3manage and disburse the appropriation on behalf of the sponsoring state agency. Any
55.4appropriation for an information and telecommunications technology project made to a
55.5state agency other than the Office of Enterprise Technology is transferred to the chief
55.6information officer.
55.7EFFECTIVE DATE.This section is effective July 1, 2013, and applies to
55.8appropriations made on or after that date.

55.9    Sec. 6. TRANSFERS; TRANSITION.
55.10(a) Powers, duties, responsibilities, personnel, and assets relating to functions
55.11assigned to the chief information officer in Minnesota Statutes, section 16E.0151, are
55.12transferred to the Office of Enterprise Technology from all other state agencies, as defined
55.13in Minnesota Statutes, section 16E.03, subdivision 1, paragraph (e), by October 1, 2011,
55.14with the exception of state agency chief information officers which are transferred 30
55.15days after final enactment.
55.16(b) The chief information officer, with assistance from the commissioner of
55.17Minnesota Management and Budget, must enter into a service-level agreement with each
55.18state agency governing the provision of information technology systems and services,
55.19assets, and personnel in Minnesota Statutes, section 16E.0151, by July 1, 2012. The
55.20agreements must specify the services to be provided and the charges or cost allocation
55.21for these services. As specified in Minnesota Statutes, section 16E.0151, the chief
55.22information officer may allow an agency to obtain these services from an outside vendor,
55.23rather than from the Office of Enterprise Technology when appropriate. Authority to enter
55.24into agreements under this paragraph is effective the day following final enactment, with
55.25the resulting agreements in place no later than July 1, 2012. By January 15, 2012, the
55.26chief information officer shall submit to the legislature any statutory changes needed to
55.27complete implementation of any transfer in this section.
55.28(c) By July 1, 2013, the state chief information officer shall control and direct all
55.29information and telecommunication technology spending authorized under Minnesota
55.30Statutes, section 16E.0151. This shall be reflected in the fiscal year 2014-2015 biennial
55.31budget.
55.32(d) After approval by the state chief information officer, powers, duties,
55.33responsibilities, assets, personnel, and appropriations relating to geospatial information
55.34systems are transferred from the commissioner of administration to the Office of
55.35Enterprise Technology by July 1, 2013.
56.1(e) Minnesota Statutes, section 15.039, applies to transfers in this section. Executive
56.2branch officials may use authority under Minnesota Statutes, section 16B.37, as necessary
56.3to implement this section.
56.4(f) The transfer of authority to the Office of Enterprise Technology in this article
56.5does not require expansion or consolidation of office space, data centers, help desks,
56.6or other systems. The chief information officer may implement expansion, relocation,
56.7or consolidation to the extent feasible and desirable with existing resources, or to the
56.8extent that savings resulting from the expansions or consolidations will pay for the costs
56.9associated with these activities during the biennium ending June 30, 2013.
56.10(g) State agencies must cooperate and comply with the Office of Enterprise
56.11Technology in the transfer of functions and other implementation of sections 1 to 6.
56.12In consultation with the commissioners of Minnesota Management and Budget and
56.13administration, the state chief information officer has final authority in determining the
56.14meaning of sections 1 to 6. The state chief information officer may establish policies and
56.15standards to implement and clarify the meaning of sections 1 to 6.

56.16    Sec. 7. STUDY.
56.17The chief information officer in the Office of Enterprise Technology shall report
56.18to the chairs and ranking minority members of the house of representatives and senate
56.19committees with jurisdiction over state government finance by January 15, 2014, on
56.20the feasibility and desirability of the office entering into service-level agreements with
56.21the State Lottery, the Statewide Radio Board, Minnesota State Retirement System, the
56.22Public Employees Retirement Association, the Teachers Retirement Association, the State
56.23Board of Investment, and the Campaign Finance and Public Disclosure Board regarding
56.24provision of information technology systems and services to those entities.

56.25    Sec. 8. REVISOR'S INSTRUCTION.
56.26Upon enactment of section 6, paragraph (d), the revisor of statutes shall recodify
56.27Minnesota Statutes, section 16B.99, into Minnesota Statutes, chapter 16E.

56.28    Sec. 9. EFFECTIVE DATE.
56.29Sections 1 to 8 are effective the day following final enactment unless stated
56.30otherwise.

57.1ARTICLE 5
57.2GENERAL PROVISIONS

57.3    Section 1. PAYMENT FOR 2011 GOVERNMENT SHUTDOWN CAUSES OF
57.4ACTION.
57.5No appropriation under this or any other law, regardless of when enacted, may be
57.6used to pay or settle judgments for damages by contractors or third parties arising out of,
57.7or related to, the government shutdown of July 2011. This limitation does not apply if
57.8the contract expressly provides for the payment by the state or an agency of the state for
57.9measures or activities undertaken by the contractor or third party arising from or caused
57.10by the government shutdown.
57.11EFFECTIVE DATE.This section is effective the day following final enactment.

57.12    Sec. 2. EFFECTIVE DATE; RELATIONSHIP TO OTHER APPROPRIATIONS.
57.13Unless otherwise specified, this act is effective retroactively from July 1, 2011,
57.14and supersedes and replaces funding authorized by order of the Second Judicial District
57.15Court in Case No. 62-CV-11-5203.
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