1.1.................... moves to amend H.F. No. 2227 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. STRATEGIC PLAN REPORT.
1.6By January 15, 2011, the Minnesota Innovation and Research Council shall report to
1.7the governor and the chairs and ranking minority members of the legislative committees
1.8and divisions with jurisdiction over state government policy and finance with a strategic
1.9plan containing findings and recommendations to improve state and local government
1.10delivery of public services. The strategic plan must specify:
1.11(1) how to enhance the public involvement and input as the public uses state and
1.12local government services and public schools;
1.13(2) how technology can be leveraged to reduce costs and enhance quality;
1.14(3) how service innovation will increase value or results for dollar spent; and
1.15(4) the design for a platform that will facilitate high-quality innovation and evaluate
1.16state and local government structural redesign in the future.
1.17The strategic plan shall also provide a process to review and modify
1.18recommendations at regular intervals in the future based on specific results measured
1.19at regular intervals.
1.20The strategic plan shall also include any proposed legislation necessary to implement
1.21the council's recommendations.


1.24    Section 1. Minnesota Statutes 2008, section 3.971, is amended by adding a subdivision
1.25to read:
2.1    Subd. 9. Recommendations to the Minnesota Innovation and Research Council.
2.2The legislative auditor may make recommendations to the Minnesota Innovation and
2.3Research Council established under section 465.7902 that will assist the council in
2.4accomplishing its duties.

2.5    Sec. 2. [465.7901] DEFINITIONS.
2.6    Subdivision 1. Agency. "Agency" means a department, agency, board, or other
2.7instrumentality of state government that has jurisdiction over an administrative rule or
2.8law from which a waiver is sought under section 465.7903. If no specific agency has
2.9jurisdiction over such a law, "agency" refers to the attorney general.
2.10    Subd. 2. Council. "Council" means the Minnesota Innovation and Research Council
2.11established by section 465.7902.
2.12    Subd. 3. Local government unit. "Local government unit" means a county, home
2.13rule charter or statutory city, school district, town, or special taxing district.
2.14    Subd. 4. Metropolitan agency. "Metropolitan agency" has the meaning given in
2.15section 473.121, subdivision 5a.
2.16    Subd. 5. Metropolitan area. "Metropolitan area" has the meaning given in section
2.17473.121, subdivision 2.
2.18    Subd. 6. Metropolitan Council. "Metropolitan Council" means the Metropolitan
2.19Council established by section 473.123.
2.20    Subd. 7. Scope. As used in sections 465.7901 to 465.7907 and 465.805 to 465.808,
2.21the terms defined in this section have the meanings given them.

2.22    Sec. 3. [465.7902] MINNESOTA INNOVATION AND RESEARCH COUNCIL.
2.23    Subdivision 1. Membership. The Minnesota Innovation and Research Council
2.24consists of 15 members, appointed as follows:
2.25(1) two members of the senate, appointed by the Subcommittee on Committees of
2.26the Senate Committee on Rules and Administration;
2.27(2) two members of the house of representatives, appointed by the speaker of the
2.28house;
2.29(3) the commissioner of management and budget;
2.30(4) the commissioner of administration;
2.31(5) the state chief information officer;
2.32(6) an administrative law judge appointed by the chief administrative law judge;
2.33(7) the state auditor;
3.1(8) two members with a background in academic research concerning system
3.2redesign and delivery, including one member appointed by the chancellor of the Minnesota
3.3State Colleges and Universities and one member appointed by the president of the
3.4University of Minnesota;
3.5(9) one member with experience in the leadership of nonprofit organizations,
3.6appointed by the Minnesota Council of Nonprofits;
3.7(10) one member with experience in foundation leadership appointed by the
3.8Minnesota Council on Foundations;
3.9(11) one member with experience as a leader of a for-profit corporation, appointed
3.10by the Minnesota Chamber of Commerce; and
3.11(12) one member representing public employees appointed by the American
3.12Federation of State County and Municipal Employees.
3.13All members must have experience or interest in the work of system redesign or public
3.14sector innovation. The legislative members serve as nonvoting members. Only members
3.15designated in clauses (3) to (7) may vote on proposed rule or law waivers under section
3.16465.7903. A commissioner serving on the council may designate an employee from the
3.17commissioner's agency to serve as the commissioner's designee. A person registered as a
3.18lobbyist under chapter 10A may not be a member of the council.
3.19    Subd. 2. Duties of council. The council shall:
3.20(1) accept applications from local government units and nonprofit organizations for
3.21waivers of administrative rules and temporary, limited exemptions from enforcement of
3.22procedural requirements in state law as provided in section 465.7903, and determine
3.23whether to approve, modify, or reject the application;
3.24(2) accept applications for grants to local government units and related organizations
3.25proposing to design models or plans for innovative service delivery and management
3.26as provided in section 465.7905 and determine whether to approve, modify, or reject
3.27the application;
3.28(3) accept applications from eligible local government units for service-sharing
3.29grants as provided in section 465.7905, and determine whether to approve, modify,
3.30or reject the application;
3.31(4) make recommendations to the legislature for the authorization of pilot projects
3.32for the implementation of innovative service delivery activities that require statutory
3.33authorization;
3.34(5) make recommendations to the legislature regarding the elimination of state
3.35mandates that inhibit local government efficiency, innovation, and cooperation by
3.36prescribing specific processes for achieving a desired outcome;
4.1(6) investigate and review the role of unfunded state mandates in intergovernmental
4.2relations and assess their impact on state and local government objectives and
4.3responsibilities;
4.4(7) make recommendations to the governor and the legislature regarding:
4.5(i) allowing flexibility for local units of government in complying with specific
4.6unfunded state mandates for which terms of compliance are unnecessarily rigid or
4.7complex;
4.8(ii) reconciling any two or more unfunded state mandates that impose contradictory
4.9or inconsistent requirements;
4.10(iii) terminating unfunded state mandates that are duplicative, obsolete, or lacking
4.11in practical utility;
4.12(iv) suspending, on a temporary basis, unfunded state mandates that are not vital
4.13to public health and safety and that compound the fiscal difficulties of local units of
4.14government, including recommendations for initiating the suspensions;
4.15(v) consolidating or simplifying unfunded state mandates or the planning or
4.16reporting requirements of the mandates, in order to reduce duplication and facilitate
4.17compliance by local units of government with those mandates; and
4.18(vi) establishing common state definitions or standards to be used by local units of
4.19government in complying with unfunded state mandates that use different definitions or
4.20standards for the same terms or principles;
4.21(8) identify relevant unfunded state mandates;
4.22(9) facilitate proposals for grants made by eligible applicants; and
4.23(10) make recommendations on topics to the Legislative Audit Commission for
4.24program evaluations that are likely to result in recommendations that will improve the
4.25cost-effective delivery of government services.
4.26The duties imposed under clauses (6) to (10) must be performed to the extent
4.27possible given existing resources. Each recommendation under clause (7) must, to
4.28the extent practicable, identify the specific unfunded state mandates to which the
4.29recommendation applies. The commissioners or directors of state agencies responsible for
4.30the promulgation or enforcement of the unfunded mandates addressed in clauses (5) to
4.31(10) shall assist the council in carrying out the council's duties under this section.
4.32    Subd. 3. Additional coordinating functions. The council may also:
4.33(1) serve as a clearinghouse for existing ideas and information from community
4.34leaders;
4.35(2) provide a Web site where interested parties may share information and practices;
5.1(3) receive recommendations from the legislative auditor concerning waivers and
5.2other initiatives within the council's jurisdiction;
5.3(4) conduct research concerning innovation in service delivery and local government
5.4efficiency, innovation, and cooperation;
5.5(5) facilitate regional dialogue concerning successful innovation and collaboration;
5.6and
5.7(6) use its best efforts to maximize public involvement in its work, including the use
5.8of best practices in social media.
5.9    Subd. 4. Staff. The council shall hire an executive director, who serves as the state's
5.10chief innovation officer. The council may hire other staff or consultants as necessary to
5.11perform its duties. The commissioner of administration must provide administrative
5.12support services to the council.
5.13    Subd. 5. Terms, compensation, and removal. Members serve at the pleasure of
5.14the appointing authority. Compensation of members is governed by section 15.0575,
5.15unless otherwise provided.

5.16    Sec. 4. [465.7903] RULE AND LAW WAIVER REQUESTS.
5.17    Subdivision 1. Generally. (a) Except as provided in paragraph (b), a local
5.18government unit or a nonprofit organization may request the Minnesota Innovation and
5.19Research Council to grant a waiver from one or more administrative rules or a temporary,
5.20limited exemption from enforcement of state procedural laws governing delivery of
5.21services by the local government unit or nonprofit organization. Two or more local
5.22government units may submit a joint application for a waiver or exemption under this
5.23section if they propose to cooperate in providing a service or program that is subject to the
5.24rule or law. Before a local unit of government may submit an application to the council,
5.25the governing body of the local government unit must approve, in concept, the proposed
5.26waiver or exemption at a meeting required to be public under chapter 13D. A waiver
5.27or exemption granted to a nonprofit organization under this section applies to services
5.28provided to all of the organization's clients.
5.29(b) A school district that is granted a variance from rules of the commissioner of
5.30education under section 122A.163 need not apply to the council for a waiver of those rules
5.31under this section. A school district may not seek a waiver of rules under this section if
5.32the commissioner of education has authority to grant a variance to the rules under section
5.33122A.163. This paragraph does not preclude a school district from being included in a
5.34cooperative effort with another local government unit under this section.
6.1    Subd. 2. Application. (a) A local government unit or nonprofit organization
6.2requesting a waiver of a rule or exemption from enforcement of a law under this section
6.3shall present a written application to the council. The application must include:
6.4(1) identification of the service or program at issue;
6.5(2) identification of the administrative rule or the law imposing a procedural
6.6requirement with respect to which the waiver or exemption is sought; and
6.7(3) a description of the improved service outcome sought, including an explanation
6.8of the effect of the waiver or exemption in accomplishing that outcome.
6.9(b) A local government unit submitting an application must provide a copy to the
6.10exclusive representative certified under section 179A.12 to represent employees who
6.11provide the service or program affected by the requested waiver or exemption.
6.12    Subd. 3. Review process. (a) Upon receipt of an application, the council shall
6.13commence review of the application, as provided in this subdivision. The council
6.14shall dismiss an application if it finds that the application proposes a waiver of rules
6.15or exemption from enforcement of laws that would result in due process violations,
6.16violations of federal law or the state or federal constitution, or the loss of services to
6.17people who are entitled to them.
6.18(b) The council shall determine whether a law from which an exemption for
6.19enforcement is sought is a procedural law, specifying how a local government unit or
6.20nonprofit organization is to achieve an outcome, rather than a substantive law prescribing
6.21the outcome or otherwise establishing policy. For the purposes of this section, "procedural
6.22law" does not include a statutory notice requirement. In making its determination, the
6.23council shall consider whether the law specifies such requirements as:
6.24(1) who must deliver a service;
6.25(2) where the service must be delivered;
6.26(3) to whom and in what form reports regarding the service must be made; and
6.27(4) how long or how often the service must be made available to a given recipient.
6.28(c) If a member of the council also is a commissioner, a commissioner's designee, or
6.29the state auditor, or is employed by an agency with jurisdiction over a rule or law affected
6.30by an application, the member must not participate in the decision on the particular waiver
6.31or exemption.
6.32(d) If the application is submitted by a local government unit or a nonprofit
6.33organization in the metropolitan area or the unit or nonprofit organization requests a
6.34waiver of a rule or temporary, limited exemptions from enforcement of a procedural
6.35law over which the Metropolitan Council or a metropolitan agency has jurisdiction, the
6.36council shall also transmit a copy of the application to the Metropolitan Council for
7.1review and comment. The Metropolitan Council shall report its comments to the council
7.2within 60 days of the date the application was transmitted to the Metropolitan Council.
7.3The Metropolitan Council may point out any resources or technical assistance it may be
7.4able to provide a local government unit or nonprofit organization submitting a request
7.5under this section.
7.6(e) Within 15 days after receipt of the application, the council shall transmit a copy
7.7of it to the commissioner of each agency having jurisdiction over a rule or law from which
7.8a waiver or exemption is sought. The agency may mail a notice that it has received an
7.9application for a waiver or exemption to all persons who have registered with the agency
7.10under section 14.14, subdivision 1a, identifying the rule or law from which a waiver or
7.11exemption is requested. If no agency has jurisdiction over the rule or law, the council shall
7.12transmit a copy of the application to the attorney general. The agency shall inform the
7.13council of its agreement with or objection to and grounds for objection to the waiver or
7.14exemption request within 60 days of the date when the application was transmitted to it.
7.15An agency's failure to respond under this paragraph is considered agreement to the waiver
7.16or exemption. The council shall decide whether to grant a waiver or exemption at its next
7.17regularly scheduled meeting following its receipt of an agency's response or the end of
7.18the 60-day response period. If consideration of an application is not concluded at that
7.19meeting, the matter may be carried over to the next meeting of the council. Interested
7.20persons may submit written comments to the council on the waiver or exemption request
7.21up to the time of its vote on the application.
7.22(f) If the exclusive representative of the affected employees of the requesting local
7.23government unit objects to the waiver or exemption request, it may inform the council
7.24of the objection to and the grounds for the objection to the waiver or exemption request
7.25within 60 days of the receipt of the application.
7.26    Subd. 4. Hearing. If the agency or the exclusive representative does not agree
7.27with the waiver or exemption request, the council shall set a date for a hearing on the
7.28application. The hearing must be conducted informally at a meeting of the council.
7.29Persons representing the local government unit shall present their request for the waiver or
7.30exemption, and a representative from the agency shall explain the agency's objection to the
7.31waiver or exemption. Members of the council may request additional information from
7.32either party. The council may also request, either before or at the hearing, information
7.33or comments from representatives of business, labor, local governments, state agencies,
7.34consultants, and members of the public. If necessary, the hearing may be continued at
7.35a subsequent council meeting. A waiver or exemption requires a majority vote of the
8.1council members. The council may modify the terms of the waiver or exemption request
8.2in arriving at the agreement required under subdivision 5.
8.3    Subd. 5. Conditions of agreements. (a) If the council grants a request for a waiver
8.4or exemption, the council and the entity making the request shall enter into an agreement
8.5providing for the delivery of the service or program that is the subject of the application.
8.6The agreement must specify desired outcomes and the means of measurement by which
8.7the council will determine whether the outcomes specified in the agreement have been
8.8met. The agreement must specify the duration of the waiver or exemption. The duration of
8.9a waiver from an administrative rule may be for no less than two years and no more than
8.10four years, subject to renewal if both parties agree. An exemption from enforcement of a
8.11law terminates ten days after adjournment of the regular legislative session held during the
8.12calendar year following the year when the exemption is granted, unless the legislature has
8.13acted to extend or make permanent the exemption.
8.14(b) If the council grants a waiver or exemption, it must report the waiver or
8.15exemption to the legislature, including the chairs of the governmental operations and
8.16appropriate policy committees in the house of representatives and senate, and the governor
8.17within 30 days.
8.18(c) The council may reconsider or renegotiate the agreement if the rule or law
8.19affected by the waiver or exemption is amended or repealed during the term of the original
8.20agreement. A waiver of a rule under this section has the effect of a variance granted by
8.21an agency under section 14.055. The recipient of an exemption from enforcement of a
8.22procedural requirement in state law under this section is exempt from that law for the
8.23duration of the exemption. The council may require periodic reports from the recipient, or
8.24conduct investigations of the service or program.
8.25    Subd. 6. Enforcement. If the council finds that the recipient of a waiver or an
8.26exemption has failed to comply with the terms of the agreement under subdivision 5, it
8.27may rescind the agreement. After an agreement is rescinded, the recipient is subject to the
8.28rules and laws covered by the agreement.
8.29    Subd. 7. Access to data. If the recipient of a waiver or an exemption through a
8.30cooperative program under this section gains access to data that is classified as not public,
8.31the access to and use of the data for the recipient is governed by the same restrictions on
8.32access to and use of the data that apply to the unit that collected, created, received, or
8.33maintained the data.

8.34    Sec. 5. [465.7904] WAIVERS OF STATE RULES; POLICIES.
9.1    Subdivision 1. Application. A state agency may apply to the council for a waiver
9.2from: (1) an administrative rule or policy adopted by the commissioner of management
9.3and budget that deals with the state personnel system; (2) an administrative rule or policy
9.4of the commissioner of administration that deals with the state procurement system; or
9.5(3) a policy of the commissioner of management and budget that deals with the state
9.6accounting system. Two or more state agencies may submit a joint application. A waiver
9.7application must identify the rule or policy at issue, and must describe the improved
9.8outcome sought through the waiver.
9.9    Subd. 2. Review process. (a) The council shall review all applications submitted
9.10under this section. The council shall dismiss an application if it finds that the application
9.11proposes a waiver that would result in due process violations, violations of federal law
9.12or the state or federal constitution, or the loss of services to people who are entitled to
9.13them. If a proposed waiver would violate the terms of a collective bargaining agreement
9.14effective under chapter 179A, the waiver is not effective without the consent of the
9.15exclusive representative that is a party to the agreement. The council may approve a
9.16waiver only if the council determines that if the waiver is granted: (1) services can
9.17be provided in a more efficient or effective manner; and (2) services related to human
9.18resources must be provided in a manner consistent with section 43A.01. In the case of a
9.19waiver from a policy of the commissioner of management and budget, the council may
9.20approve the waiver only if it determines that services will be provided in a more efficient
9.21or effective manner and that state funds will be adequately accounted for and safeguarded
9.22in a manner that complies with generally accepted government accounting principles.
9.23(b) Within 15 days of receipt of the application, the council shall send a copy of the
9.24application to: (1) the agency whose rule or policy is involved; and (2) all exclusive
9.25representatives who represent employees of the agency requesting the waiver. The agency
9.26whose rule or policy is involved may mail a copy of the application to all persons who
9.27have registered with the agency under section 14.14, subdivision 1a.
9.28(c) The agency whose rule or policy is involved or an exclusive representative shall
9.29notify the council of its agreement with or objection to and grounds for objection to the
9.30waiver within 60 days of the date when the application was transmitted to the agency or
9.31the exclusive representative. An agency's or exclusive representative's failure to respond
9.32under this paragraph is considered agreement to the waiver.
9.33(d) If the agency or the exclusive representative objects to the waiver, the council
9.34shall schedule a meeting at which the agency requesting the waiver may present its case
9.35for the waiver and the objecting party may respond. The council shall decide whether
9.36to grant a waiver at its next regularly scheduled meeting following its receipt of an
10.1agency's response, or the end of the 60-day response period, whichever occurs first. If
10.2consideration of an application is not concluded at the meeting, the matter may be carried
10.3over to the next meeting of the council. Interested persons may submit written comments
10.4to the council on the waiver request.
10.5(e) If the council grants a request for a waiver, the council and the agency requesting
10.6the waiver shall enter into an agreement relating to the outcomes desired as a result of the
10.7waiver and the means of measurement to determine whether those outcomes have been
10.8achieved with the waiver. The agreement must specify the duration of the waiver, which
10.9must be for at least two years and not more than four years. If the council determines that
10.10an agency that has received a waiver is failing to comply with the terms of the agreement,
10.11the council may rescind the agreement.
10.12    Subd. 3. Participation. If a waiver request involves a rule or policy adopted by an
10.13official specified in section 465.7902, subdivision 1, clauses (3) to (7), that official may
10.14not participate in the evaluation of that waiver request.

10.15    Sec. 6. [465.7905] INNOVATION AND REDESIGN GRANTS.
10.16    Subdivision 1. Application. One or more local units of government, an association
10.17of local governments, the Metropolitan Council, a local unit of government acting in
10.18conjunction with an organization or a state agency, an organization established by two
10.19or more local units of government under a joint powers agreement, or a not-for-profit
10.20organization may apply to the Minnesota Innovation and Research Council for a grant
10.21to be used to: (1) develop models for service redesign; or (2) meet the start-up costs
10.22of providing shared services or functions. Agreements solely to make joint purchases
10.23do not qualify for grants. The application must specify a nonstate funding source for
10.2425 percent of the total cost of the proposal. The application to the council must state
10.25what other sources of funding have been considered by the local units of government to
10.26implement the project and explain why it is not possible to complete the project without
10.27assistance from the council. The council may not award a grant if it determines that the
10.28local units of government could complete the project without council assistance or if it
10.29determines the applicant has not specified a nonstate funding source for 25 percent of
10.30the total cost. A copy of the application must be provided by the units to the exclusive
10.31representatives certified under section 179A.12 to represent employees who provide the
10.32service or program affected by the application.
10.33    Subd. 2. Proposals. (a) Proposed models for service redesign may provide options
10.34to local governments, neighborhood or community organizations, other not-for-profit
11.1organizations, or individuals to redesign service delivery. In awarding grants under this
11.2paragraph, the council must consider whether the proposal:
11.3(1) expands consumer choices and opportunities;
11.4(2) shifts government toward an expanded role as a purchaser, rather than a provider,
11.5of services;
11.6(3) reduces administrative costs through statewide or regional contracting, or related
11.7administrative efficiencies;
11.8(4) reduces administrative costs through the accumulation of multiple related
11.9services into a single contract with one provider, or related administrative efficiencies;
11.10(5) fosters entrepreneurial leadership in the public sector; and
11.11(6) increases value to the taxpayer or results per dollar spent.
11.12(b) A proposal for a grant for shared services or functions must include plans fully
11.13to integrate a service or function provided by two or more local government units. The
11.14proposal must include how value for the taxpayer or results for dollar spent will be
11.15impacted.
11.16    Subd. 3. Requirements. A copy of the work product for which the grant was
11.17provided must be furnished to the council upon completion, and the council may
11.18disseminate it to other local units of government or interested groups. If the council finds
11.19that the work was not completed or implemented according to the terms of the grant
11.20agreement, it may require the grantee to repay all or a portion of the grant. The council
11.21shall award grants on the basis of each qualified applicant's score under the scoring
11.22system in section 465.7906. The amount of a grant under subdivision 2, paragraph (a),
11.23may not exceed $250,000. The amount of a grant under subdivision 2, paragraph (b),
11.24may not exceed $100,000.

11.25    Sec. 7. [465.7906] SCORING SYSTEM.
11.26In deciding whether to award a grant under section 465.7905, the council shall
11.27use the following scoring system:
11.28(1) Up to 15 points must be awarded to reflect the extent to which the application
11.29demonstrates creative thinking, careful planning, cooperation, involvement of the clients
11.30of the affected service, and commitment to persist through challenges.
11.31(2) Up to 25 points must be awarded to reflect the extent to which the proposed
11.32project is likely to improve the quality of the service, increase value to the taxpayers or
11.33results for dollars spent, and to have benefits for other local governments.
11.34(3) Up to 15 points must be awarded to reflect the extent to which the application's
11.35budget provides sufficient detail, maximizes the use of state funds, documents the need
12.1for financial assistance, commits to local financial support, and limits expenditures to
12.2essential activities.
12.3(4) Up to 15 points must be awarded to reflect the extent to which the application
12.4reflects the statutory goal of the grant program.
12.5(5) Up to 15 points must be awarded to reflect the merit of the proposed project and
12.6the extent to which it warrants the state's financial participation.
12.7(6) Up to five points must be awarded to reflect the cost to benefit ratio projected
12.8for the proposed project.
12.9(7) Up to five points must be awarded to reflect the number of government units
12.10participating in the proposal.
12.11(8) Up to five points must be awarded to reflect the minimum length of time the
12.12application commits to implementation.

12.13    Sec. 8. [465.7907] REPAYMENT OF GRANTS.
12.14    Subdivision 1. Repayment procedures. Without regard to whether a grant recipient
12.15offered to repay the grant in its original application, as part of a grant awarded under
12.16section 465.7905, the council may require the grant recipient to repay all or part of the
12.17grant if the council determines the project funded by the grant resulted in an actual savings
12.18for the participating local units of government. The grant agreement must specify how the
12.19savings are to be determined and the period of time over which the savings will be used
12.20to calculate a repayment requirement. The repayment of grant money under this section
12.21must not exceed an amount equal to the total savings achieved through the implementation
12.22of the project.
12.23    Subd. 2. Bonus points. In addition to the points awarded to competitive grant
12.24applications under section 465.7906, the council shall award additional points to any
12.25applicant that projects a potential cost savings through the implementation of its project
12.26and offers to repay part or all of the grant under the formula in subdivision 1.
12.27    Subd. 3. Use of repayment revenue. All grant money repaid to the council under
12.28this section is appropriated to the council for additional grants authorized by sections
12.29465.7905.

12.30    Sec. 9. [465.805] POLICY INNOVATION AND RESEARCH.
12.31    Subdivision 1. Research topics. The council shall periodically select policy
12.32innovation topics suitable for review and analysis by a consortium of independent
12.33organizations. Topics may include general or specific functions of state government. The
12.34council shall give primary consideration to areas of concern where a comprehensive
13.1review and analysis of available research is likely to yield recommendations for policy
13.2changes that will provide significant efficiencies and improvements in the operation of
13.3state government and an increase in value to the taxpayer. Legislators and legislative
13.4committees may provide the council with recommendations for topics. The council shall
13.5make the final determination regarding the selection of topics under this section.
13.6    Subd. 2. Request for proposal process. (a) After making the determination of a
13.7research topic under subdivision 1, the council shall prepare a request for proposal relating
13.8to the topic that specifies:
13.9(1) the precise topic and scope of the research required for the report to the
13.10commission;
13.11(2) the deadlines for the response to the request for proposal and for the subsequent
13.12report; and
13.13(3) any other restrictions or guidelines required by the commission.
13.14The council shall make the request for proposal publicly available and must
13.15review responses from any interested party. A group of individuals or organizations
13.16may submit a response. The council may encourage the development of a collaborative
13.17design lab containing a cross-section of researchers and public sector designers from
13.18various nonprofits, businesses, foundations, and education institutions to respond to the
13.19request for proposal.
13.20(b) After the deadline for submission of responses has expired, the council must hold
13.21a hearing to consider all submissions. The council shall consider the following factors in
13.22selecting a response to the request for proposal:
13.23(1) the experience and training of individuals and organizations who will prepare the
13.24report to the commission;
13.25(2) the reliability and credibility of individuals and organizations who will prepare
13.26the report;
13.27(3) the proposed method of research; and
13.28(4) the resources available for the preparation of the report.
13.29(c) After consideration and hearing of the responses to the request for proposal, the
13.30council may:
13.31(1) select a submission;
13.32(2) revise the original request for proposal and extend the deadline for responses; or
13.33(3) terminate the request for proposal process for the selected topic.
13.34The chief innovation officer shall periodically communicate with the researchers
13.35to make sure they are focused on answering the questions outlined in the request for
13.36proposals.
14.1    Subd. 3. Reports to council. The council shall hold a hearing to receive a report
14.2prepared under this section and shall ensure that the governor and the relevant committees
14.3in the legislature are provided with notice of the report and an opportunity to review the
14.4report, including an opportunity for additional hearings.

14.5    Sec. 10. [465.808] RECEIPTS; APPROPRIATION.
14.6(a) The council may charge a fee for the use of services provided by the council's
14.7staff. The receipts from fees charged under this section are deposited in a special revenue
14.8account and appropriated to the council for services provided under sections 465.7901 to
14.9465.808.
14.10(b) The council may accept gifts and grants. Money received under this paragraph
14.11is deposited in a special revenue account and appropriated to the council for services
14.12provided under sections 465.7901 to 465.808.

14.13    Sec. 11. [465.809] GUARANTEEING INCREASED VALUE TO THE
14.14TAXPAYER.
14.15    Subdivision 1. Report. The council shall report by January 15 each year to the
14.16governor and appropriate committees of the house and senate on its activities. The
14.17report shall include the amount of the council's net spending, the amount of savings and
14.18the increased outcomes to the taxpayer that was identified by the council and the actual
14.19documented savings to state and local governments. Entities receiving grants or waivers
14.20from the council must document and verify savings to the taxpayer from the previous
14.21year's budgets.
14.22    Subd. 2. Savings and increased value. The council must make every effort to
14.23obtain $3 in savings and show increased value to the taxpayer for each net state dollar
14.24spent by the council.
14.25    Subd. 3. Innovative practices. The council shall promote and drive innovative
14.26practices and must make annual recommendations to the legislature. One or all of these
14.27recommendations may be in partnership with an individual, foundations, non-profits or
14.28businesses. The council may make endorsements of proposals of individuals, foundations,
14.29non-profits or businesses when making recommendations. The council must make annual
14.30recommendations to:
14.31(1) recommend at least $20 in savings and show increased outcomes to the taxpayer
14.32for each net state dollar spent by the council. These savings may be spread out over
14.33various budget items;
15.1(2) recommend policy changes that will quantifiably improve desired outcome
15.2attainment to the taxpayer as compared to dollars spent. This shall not be limited to
15.3efficiency but may also include developing new approaches to achieve desired outcomes;
15.4(3) highlight existing innovative practices or partnerships in the state; and
15.5(4) recommend innovative models, which may include state and local government
15.6structural redesign, from across the country to the legislature, highlight innovative
15.7practices from past or contemporary reports, recommend evidence-based service delivery
15.8methods for this state or recommend theory-based working models of approaches to policy.

15.9    Sec. 12. APPROPRIATIONS.
15.10$350,000 is appropriated from the general fund for the fiscal year ending June 30,
15.112011 to the Minnesota Innovation and Research Council for the following purposes:
15.12(1) operation and administration of the council;
15.13(2) grants for models for service redesign;
15.14(3) grants for shared services and functions;
15.15(4) policy innovation and research; and
15.16(5) the strategic plan report under article 1, section 1.
15.17The appropriations in this section are contingent on receiving a dollar-for-dollar
15.18match from private sources.

15.19    Sec. 13. REPEALER.
15.20Minnesota Statutes 2008, section 6.80, is repealed."
15.21Amend the title accordingly