S.F. No. 1639 abolishes a number of state departments and agencies.  The powers and duties of these agencies are not abolished, but rather are transferred to remaining departments.

Section 1 [Departments of the State] removes the following agencies from the list of departments of the state government: 

• Department of Corrections
• Department of Employment and Economic Development
• Department of Health
• Department of Human Rights
• Department of Labor and Industry
• Department of Management and Budget
• Department of Revenue
• Department of Transportation

Section 2 [Applicability] removes the following agencies from the list of agencies to which Minnesota Statutes, section 15.06, applies:

• Department of Corrections
• Department of Employment and Economic Development
• Department of Health
• Department of Human Rights
• Department of Labor and Industry
• Department of Management and Budget
• Department of Revenue
• Department of Transportation
• Department of Veterans Affairs
• Housing Finance Agency
• Pollution Control Agency
• Office of Commissioner of Iron Range Resources and Rehabilitation
• Bureau of Mediations Services

 Section 15.06 includes provisions relating to commissioners, such as appointment process, term of office, and powers.

Section 3 [Group I Salary Limits] removes the following commissioners and directors from the list of commissioners whose salary is limited to 95 percent of the Governor’s salary:

• Commissioner of Health
• Executive director, Minnesota Office of Higher Education
• Commissioner, Housing Finance Authority
• Commissioner of Human Rights
• Commissioner of Labor and Industry
• Commissioner of Management and Budget
• Director of Office of Strategic and Long-Range Planning
• Commissioner, Pollution Control Agency
• Commissioner of Revenue
• Commissioner of Employment and Economic Development
• Commissioner of Transportation
• Commissioner of Veterans Affairs

Section 4 [Group II Salary Limits] removes the Commissioner of the Bureau of Mediation Services from the list of commissioners whose salary is limited to 85 percent of the Governor’s salary.

Section 5 [Additional Unclassified Positions] removes the following from the list of authorities who may designate unclassified positions:

• Department of Corrections
• Department of Employment and Economic Development
• Department of Explore Minnesota Tourism
• Department of Management and Budget
• Department of Human Rights
• Department of Labor and Industry
• Department of Revenue
• Department of Transportation
• Housing Finance Agency
• Pollution Control Agency
• Minnesota Office of Higher Education

Section 6 [Reassignment of Duties] requires the Commissioner of Administration to issue reorganization orders under Minnesota Statutes, section 16B.37, to assign the duties of the departments abolished in Section 1 to the departments that remain in Minnesota Statutes, section 15.01.  These reorganization orders take effect upon filing with the Secretary of State, even if the order transfers all or substantially all of the powers, duties, and personnel of an executive branch entity.  Section 6 further requires the Commissioner of Administration to submit to the Legislature by January 15, 2012, a bill to make all statutory changes required as a result of these reorganization orders.  Section 6 further requires the Commissioner of Administration to report to the Legislature by January 15, 2012, on efforts to consolidate divisions, programs, and activities within the agencies listed in Minnesota Statutes, section 15.01.  This report is to be completed in coordination with the commissioners of the agencies listed in Minnesota Statutes, section 15.01, and must include proposed statutory changes needed to accomplish the requirements of this section.