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Overview
Article 1 of this bill creates a zero-based budgeting process for the state budget. Article 2 provides a schedule of expiration dates for all state agencies and establishes a Sunset Advisory Commission to review the performance, purpose, and function of each agency, and report to the Legislature before the scheduled expiration date for that agency.
Article 1
Zero-Based Budgeting
Section 1 [Purpose of Performance Data.] requires budget information to include additional information regarding state agency activities and to provide measurable goals for agency programs and activities.
Section 2 [Performance Data Format.] requires additional detail in the Governor’s budget to describe goals and objectives for each agency program and activity, including outcome-based and objective indicators of agency activity.
Section 3 [Performance Measures for Change Items.] eliminates the existing requirements for the Commissioner of Management and Budget to report to the Subcommittee on Government Accountability concerning use of Minnesota Milestones, and other statewide goals and indicators.
Section 4. [Forecast Parameters.] requires that forecast expenditures for the current biennium must be based on actual appropriations or the amount needed to fund a formula in law. Provides that the base for forecasted expenditures in the next biennium is the amount appropriated in the second year of the current biennium, or the amount needed to fund the formula in law.
Section 5. [Zero-Based Budgeting Principles.] requires that approximately half of all state expenditure program budgets must be selected by the Governor and prepared using zero-based budgeting principles each biennium. Specifies that zero-based budgeting principles include:
(1) a description of each budget activity that is currently funded or for which the agency is requesting appropriation in the next biennium;
(2) for each budget activity, three alternative funding levels, including a summary of priorities accomplished within each level of funding, and the additional increments of value added by additional funding and the additional increments of value added by additional funding; and
(3) for each budget activity, performance data and the predicted effect of each of the three funding levels on future performance, and one or more measures of cost efficiency, including comparisons to other states with similar programs.
Also requires the Governor to prioritize budget activity within a agency or program area, and where activities in more than one agency attempt to meet the same goals, the prioritization must include other agencies and programs attempting to meet the same goals. The zero-based budget requirements in this section are made effective beginning July 1, 2013.
Section 6 [Detailed Budget.] provides conforming language to reflect the application of zero-based budgeting principles to approximately half of the state agencies in each biennium.
Article 2
Sunset of State Agencies
This article establishes a 12-member Sunset Advisory Commission and provides a schedule for the expiration of all major state agencies. The timeline for the sunset process is as follows:
- In September of each odd-numbered year, agencies included in the next expiration date are required to report to the commission.
- By January 1 of the even-numbered year when the agency is scheduled to sunset, the commission reviews the reports and the agency.
- Before February 1 of the year when the agency sunsets, the commission conducts public hearings and provides a report to the Legislature with its recommendations.
- The agencies and associated groups expire according to the prescribed schedule on June 30 of each even-numbered year.
Section 1 [Short Title.] provides that this chapter may be cited as the “Minnesota Sunset Act.”
Section 2 [Definitions.] defines terms used in this article, including the definition of advisory committee to mean any committee, council, commission, or other entity created by state law whose primary function is to advise a state agency.
Section 3 [Sunset Advisory Commission.] establishes a Sunset Advisory Commission with 12 members, including:
(1) five senators and one public member appointed under the Rules of the Senate, with no more than three Senators from the majority party; and
(2) five members of the House of Representatives and one public member appointed by the Speaker of the House, with no more than three of the House members from the majority caucus.
This section also places restrictions on public members, limitations on their length of service on a commission, and provides authority for reimbursement for expenses.
Section 4 [Staff.] directs the Legislative Coordinating Commission to provide staff and administration services for the Sunset Advisory Commission.
Section 5 [Rules.] authorizes the Sunset Advisory Commission to adopt rules to carry out the purposes of this chapter.
Section 6 [Agency Report to Commission.] requires a state agency that is scheduled for expiration to report to the Sunset Advisory Commission before September 1 in the year preceding the date the agency is scheduled for expiration.
Section 7 [Commission Duties.] requires the Sunset Advisory Commission to review agency reports submitted in the year before the agency is scheduled for expiration, and to conduct a review of the agency and prepare a written report before January 1 of the year when the agency is scheduled to expire.
Section 8 [Public Hearings.] requires the Sunset Advisory Commission to hold hearings concerning the criteria for review of a state agency before February 1 of the year when the agency is scheduled to expire.
Section 9 [Commission Report.] requires the Sunset Advisory Commission to provide a report to the Legislature and the Governor by February 1 of each year when an agency is scheduled for expiration.
Section 10 [Criteria for Review.] specifies the criteria for the Sunset Advisory Commission to consider in determining whether a public need exists for the continuation of a state agency or for the performance of any of the functions of the agency or its advisory committees.
Section 11 [Recommendations.] requires the Sunset Advisory Commission, when making its report concerning a state agency scheduled for expiration, to make specific recommendations concerning the continuation or reorganization of the agency and advisory committees, and to make recommendations concerning the consolidation, transfer, or reorganization of programs within agencies that are not under review if those agency programs duplicate the functions of agencies that are currently being reviewed. Requires the Sunset Advisory Commission to provide an estimate of the fiscal impact of its recommendations and to include draft legislation necessary to carry out the commission’s recommendations, including any legislation necessary to continue an agency that would otherwise sunset. Paragraph (d) authorizes the commission to present recommendations to the Legislative Auditor that do not require a statutory change. If the Legislative Audit Commission approves, the Legislative Auditor may examine the recommendations and provide a report.
Section 12 [Monitoring of Recommendations.] requires staff of the Sunset Advisory Commission to monitor all legislation affecting agencies that have undergone sunset review and to provide a report to the commission concerning proposed changes that would modify previous Sunset Advisory Commission recommendations.
Section 13 [Review of Advisory Committees.] includes advisory committees for particular state agencies that are scheduled for expiration within the sunset review provided for that agency, unless the advisory committee is expressly continued by law.
Section 14 [Continuation by Law.] authorizes the Legislature to enact legislation that will continue an agency or advisory committee for a period not to exceed 12 years after it is scheduled for expiration. Allows the Legislature to enact legislation that would terminate a state agency before the scheduled expiration date and to consider legislation relating to the agency.
Section 15 [Procedure after Termination.] provides a process to conclude the affairs of the state agency that has expired under the terms of this chapter. Within the end of the year following the expiration of the agency, all rules adopted by the agency expire. This section also specifies the disposition of funds, property, records, and continuing obligations of an agency that is abolished under this chapter.
Section 16 [Assistance of and Access to State Agencies.] authorizes the Sunset Advisory Commission to request the assistance of state agencies. Also authorizes the commission and staff to inspect agencies.
Section 17 [Relocation of State Employees.] requires a state agency that is abolished or reorganized to make reasonable efforts to relocate any displaced employees.
Section 18 [Saving Provision.] establishes that the abolition of a state agency does not affect any rights and duties that matured before the date of abolition.
Section 19 [Review of Proposed Legislation Creating an Agency.] requires the Sunset Advisory Commission to review any legislation introduced in either body of the Legislature that would create a new agency or new advisory committee under the criteria provided in this section.
Section 20 [Gifts and Grants.] authorizes the Sunset Advisory Commission to accept gifts, grants and donations from nonprofit organizations, and requires a reporting procedure for those gifts. Appropriates money received as gifts to the commission.
Section 21 [Expiration.] provides a schedule for the expiration and sunset review of all major state agencies beginning June 30, 2012, and continuing through June 30, 2022. Authorizes the commission to review and propose expiration dates for groups and programs that are not listed in this section.
TSB/rdr
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