1.1.................... moves to amend H.F. No. 173 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. [3D.01] SHORT TITLE.
1.4This chapter may be cited as the Minnesota Sunset Act.

1.5    Sec. 2. [3D.02] DEFINITIONS.
1.6    Subdivision 1. Scope. The definitions in this section apply to this chapter.
1.7    Subd. 2. Advisory committee. "Advisory committee" means a committee, council,
1.8commission, or other entity created under state law whose primary function is to advise
1.9a state agency.
1.10    Subd. 3. Commission. "Commission" means the Sunset Commission.
1.11    Subd. 4. State agency. "State agency" means an agency expressly made subject
1.12to this chapter.

1.13    Sec. 3. [3D.03] SUNSET COMMISSION.
1.14    Subdivision 1. Membership. The Sunset Commission consists of four members
1.15appointed by the governor, two members appointed by the speaker of the house
1.16of representatives, two members appointed by the minority leader of the house of
1.17representatives, and two members appointed by the senate majority leader, and two
1.18members appointed by the senate minority leader. Appointing authorities should consider
1.19appointing members with experience in business operations, mergers, finance, and
1.20technology. A legislator may not be a member of the commission.
1.21    Subd. 2. Member restrictions. An individual is not eligible for appointment if
1.22the individual or the individual's spouse is:
1.23(1) regulated by a state agency that the commission will review during the term for
1.24which the individual would serve;
2.1(2) employed by, participates in the management of, or directly or indirectly has
2.2more than a ten percent interest in a business entity or other organization regulated by a
2.3state agency the commission will review during the term for which the individual would
2.4serve; or
2.5(3) required to register as a lobbyist under chapter 10A because of the person's
2.6activities for compensation on behalf of a profession or entity related to the operation of
2.7an agency under review.
2.8    Subd. 3. Removal. Removal of members is governed by section 15.0575. It is
2.9cause for removal of a member from the commission if the member does not have the
2.10qualifications required by subdivision 2 for appointment to the commission at the time
2.11of appointment or does not maintain the qualifications while serving on the commission.
2.12The validity of the commission's action is not affected by the fact that it was taken when a
2.13ground for removal of a public member from the commission existed.
2.14    Subd. 4. Terms. Members serve two-year terms expiring September 1 of each
2.15odd-numbered year.
2.16    Subd. 5. Limits. Members are subject to the following restrictions:
2.17(1) after an individual serves four years on the commission, the individual is not
2.18eligible for appointment to another term or part of a term; and
2.19(2) a member may not serve consecutive terms, and, for purposes of this prohibition,
2.20a member is considered to have served a term only if the member has served more than
2.21half of the term.
2.22    Subd. 6. Appointments. The appointing authorities shall make appointments before
2.23September 1 of each odd-numbered year.
2.24    Subd. 7. Vacancies. If a vacancy occurs, the appointing authorities shall appoint
2.25a person to serve for the remainder of the unexpired term in the same manner as the
2.26original appointment.
2.27    Subd. 8. Officers. The commission shall have a chair and vice-chair as presiding
2.28officers. The chair and vice-chair must alternate every two years between a member
2.29appointed by the governor and a member appointed by a legislative appointing authority .
2.30The chair and vice-chair must be appointed by different appointing authorities.
2.31    Subd. 9. Quorum; voting. Seven members of the commission constitute a quorum.
2.32A final action or recommendation may not be made unless approved by a recorded vote
2.33of at least seven members. All other actions by the commission shall be decided by a
2.34majority of the members present and voting.
2.35    Subd. 10. Compensation. Each member of the commission is entitled to
2.36reimbursement for actual and necessary expenses incurred in performing commission
3.1duties as provided in section 15.0575, subdivision 3. Each member is entitled to
3.2reimbursement from funds appropriated to the commission.

3.3    Sec. 4. [3D.04] STAFF; GIFTS.
3.4(a) The commission may employ an executive director to act as the executive head
3.5of the commission. The executive director may employ persons necessary to carry out this
3.6chapter. The commission must attempt to use donated staff services to the greatest extent
3.7practical before employing staff.
3.8(b) The commission may accept gifts, grants, and donations from any organization
3.9described in section 501(c)(3) of the Internal Revenue Code for the purpose of funding
3.10any activity under this chapter. All gifts, grants, and donations must be accepted in an
3.11open meeting by a majority of the voting members of the commission and reported in the
3.12public record of the commission with the name of the donor and purpose of the gift, grant,
3.13or donation. Money received under this section is appropriated to the commission.
3.14(c) The commission is in the legislative branch. Upon request of the commission,
3.15the Legislative Coordinating Commission shall provide administrative support.

3.16    Sec. 5. [3D.05] RULES.
3.17The commission may adopt rules necessary to carry out this chapter.

3.18    Sec. 6. [3D.06] AGENCY REPORT TO COMMISSION.
3.19Before September 1 of the odd-numbered year before the year in which a state agency
3.20is subject to sunset review, the agency commissioner shall report to the commission:
3.21(1) information regarding the application to the agency of the criteria in section
3.223D.10;
3.23(2) a priority-based budget for the agency;
3.24(3) an inventory of all boards, commissions, committees, and other entities related
3.25to the agency; and
3.26(4) any other information that the agency commissioner considers appropriate or that
3.27is requested by the commission.

3.28    Sec. 7. [3D.07] COMMISSION DUTIES.
3.29Before January 1 of the year in which a state agency subject to this chapter and its
3.30advisory committees are subject to sunset review, the commission shall:
3.31(1) review and take action necessary to verify the reports submitted by the agency;
4.1(2) conduct a review of the agency based on the criteria provided in section 3D.10
4.2and prepare a written report; and
4.3(3) review the implementation of commission recommendations contained in the
4.4reports presented to the legislature during the preceding legislative session and the
4.5resulting legislation.

4.6    Sec. 8. [3D.08] PUBLIC HEARINGS.
4.7Before February 1 of the year a state agency subject to this chapter and its advisory
4.8committees are subject to sunset review, the commission shall conduct public hearings
4.9concerning but not limited to the application to the agency of the criteria provided in
4.10section 3D.10.

4.11    Sec. 9. [3D.09] COMMISSION REPORT.
4.12By February 1 of each odd-numbered year, the commission shall present to the
4.13legislature and the governor a report on the agencies and advisory committees reviewed.
4.14In the report the commission shall include:
4.15(1) its findings regarding the criteria prescribed by section 3D.10;
4.16(2) its recommendations based on the matters prescribed by section 3D.11; and
4.17(3) other information the commission considers necessary for a complete review
4.18of the agency.

4.19    Sec. 10. [3D.10] CRITERIA FOR REVIEW.
4.20The commission and its staff shall consider the following criteria in determining
4.21whether a public need exists for the continuation of a state agency or its advisory
4.22committees or for the performance of the functions of the agency or its advisory
4.23committees:
4.24(1) the efficiency and effectiveness with which the agency or the advisory committee
4.25operates;
4.26(2) an identification of the mission, goals, and objectives intended for the agency or
4.27advisory committee and of the problem or need that the agency or advisory committee
4.28was intended to address and the extent to which the mission, goals, and objectives have
4.29been achieved and the problem or need has been addressed;
4.30(3) an identification of any activities of the agency in addition to those granted by
4.31statute and of the authority for those activities and the extent to which those activities
4.32are needed;
5.1(4) an assessment of authority of the agency relating to fees, inspections,
5.2enforcement, and penalties;
5.3(5) whether less restrictive or alternative methods of performing any function that
5.4the agency performs could adequately protect or provide service to the public;
5.5(6) the extent to which the jurisdiction of the agency and the programs administered
5.6by the agency overlap or duplicate those of other agencies, the extent to which the agency
5.7coordinates with those agencies, and the extent to which the programs administered by the
5.8agency can be consolidated with the programs of other state agencies;
5.9(7) the promptness and effectiveness with which the agency addresses complaints
5.10concerning entities or other persons affected by the agency, including an assessment of the
5.11agency's administrative hearings process;
5.12(8) an assessment of the agency's rulemaking process and the extent to which the
5.13agency has encouraged participation by the public in making its rules and decisions as well
5.14as the extent to which the public participation has resulted in rules that benefit the public;
5.15(9) the extent to which the agency has complied with federal and state laws and
5.16applicable rules regarding equality of employment opportunity and the rights and privacy
5.17of individuals;
5.18(10) the extent to which the agency has complied with state law and applicable
5.19rules of any state agency regarding purchasing guidelines and programs for historically
5.20underutilized businesses;
5.21(11) the extent to which the agency issues and enforces rules relating to potential
5.22conflicts of interest of its employees;
5.23(12) the extent to which the agency complies with chapter 13 and follows records
5.24management practices that enable the agency to respond efficiently to requests for public
5.25information; and
5.26(13) the effect of federal intervention or loss of federal funds if the agency is
5.27abolished.

5.28    Sec. 11. [3D.11] RECOMMENDATIONS.
5.29(a) In its report on a state agency required by section 3D.09, the commission shall:
5.30(1) make recommendations on the abolition, continuation, or reorganization of each
5.31affected state agency and its advisory committees and on the need for the performance of
5.32the functions of the agency and its advisory committees;
5.33(2) make recommendations on the consolidation, transfer, or reorganization of
5.34programs within state agencies not under review when the programs duplicate functions
5.35performed in agencies under review; and
6.1(3) make recommendations to improve the operations of the agency, its policy body,
6.2and its advisory committees, including management recommendations that do not require
6.3a change in the agency's enabling statute.
6.4(b) The commission shall include the estimated fiscal impact of its recommendations
6.5and may recommend appropriation levels for certain programs to improve the operations
6.6of the state agency.
6.7(c) The commission must work with the revisor of statutes and other legislative
6.8staff to prepare and submit draft legislation to the appropriate chairs and lead minority
6.9members of legislative committees to carry out the commission's recommendations.

6.10    Sec. 12. [3D.12] MONITORING OF RECOMMENDATIONS.
6.11During each legislative session, the staff of the commission shall monitor legislation
6.12affecting agencies that have undergone sunset review and shall periodically report
6.13to the members of the commission on proposed changes which would modify prior
6.14recommendations of the commission.

6.15    Sec. 13. [3D.13] REVIEW OF ADVISORY COMMITTEES.
6.16An advisory committee, the primary function of which is to advise a particular state
6.17agency, is subject to sunset review on the date set for sunset review of the agency unless
6.18the advisory committee is expressly continued by law.

6.19    Sec. 14. [3D.14] CONTINUATION BY LAW.
6.20During the regular session immediately before the sunset review of a state agency or
6.21an advisory committee that is subject to this chapter, the legislature may enact legislation
6.22to continue the agency or advisory committee for a period not to exceed 12 years. This
6.23chapter does not prohibit the legislature from:
6.24(1) terminating a state agency or advisory committee subject to this chapter at a date
6.25earlier than that provided in this chapter; or
6.26(2) considering any other legislation relative to a state agency or advisory committee
6.27subject to this chapter.

6.28    Sec. 15. [3D.15] PROCEDURE AFTER TERMINATION.
6.29    Subdivision 1. Termination. Unless otherwise provided by law:
6.30(1) if after sunset review a state agency is abolished, the agency may continue in
6.31existence until June 30 of the following year to conclude its business;
7.1(2) abolishment does not reduce or otherwise limit the powers and authority of the
7.2state agency during the concluding year;
7.3(3) a state agency is terminated and shall cease all activities at the expiration of
7.4the one-year period; and
7.5(4) all rules that have been adopted by the state agency expire at the expiration of
7.6the one-year period.
7.7    Subd. 2. Funds of abolished agency or advisory committee. (a) Any unobligated
7.8and unexpended appropriations of an abolished agency or advisory committee lapse on
7.9June 30 of the even-numbered year after abolishment.
7.10(b) Except as provided in subdivision 4 or as otherwise provided by law, all money
7.11in a dedicated fund of an abolished state agency or advisory committee on June 30 of the
7.12even-numbered year after abolishment is transferred to the general fund. The part of the
7.13law dedicating the money to a specific fund of an abolished agency becomes void on June
7.1430 of the even-numbered year after abolishment.
7.15    Subd. 3. Property and records of abolished agency or advisory committee.
7.16Unless the governor designates an appropriate state agency as prescribed by subdivision 4,
7.17property and records in the custody of an abolished state agency or advisory committee
7.18on June 30 of the even-numbered year after abolishment must be transferred to the
7.19commissioner of administration. If the governor designates an appropriate state agency,
7.20the property and records must be transferred to the designated state agency.
7.21    Subd. 4. Continuing obligations. (a) The legislature recognizes the state's
7.22continuing obligation to pay bonded indebtedness and all other obligations, including
7.23lease, contract, and other written obligations, incurred by a state agency or advisory
7.24committee abolished under this chapter, and this chapter does not impair or impede the
7.25payment of bonded indebtedness and all other obligations, including lease, contract, and
7.26other written obligations, in accordance with their terms. If an abolished state agency or
7.27advisory committee has outstanding bonded indebtedness or other outstanding obligations,
7.28including lease, contract, and other written obligations, the bonds and all other obligations,
7.29including lease, contract, and other written obligations, remain valid and enforceable in
7.30accordance with their terms and subject to all applicable terms and conditions of the laws
7.31and proceedings authorizing the bonds and all other obligations, including lease, contract,
7.32and other written obligations.
7.33(b) The governor shall designate an appropriate state agency that shall continue to
7.34carry out all covenants contained in the bonds and in all other obligations, including lease,
7.35contract, and other written obligations, and the proceedings authorizing them, including
7.36the issuance of bonds, and the performance of all other obligations, including lease,
8.1contract, and other written obligations, to complete the construction of projects or the
8.2performance of other obligations, including lease, contract, and other written obligations.
8.3(c) The designated state agency shall provide payment from the sources of payment
8.4of the bonds in accordance with the terms of the bonds and shall provide payment from
8.5the sources of payment of all other obligations, including lease, contract, and other written
8.6obligations, in accordance with their terms, whether from taxes, revenues, or otherwise,
8.7until the bonds and interest on the bonds are paid in full and all other obligations,
8.8including lease, contract, and other written obligations, are performed and paid in full.
8.9If the proceedings so provide, all funds established by laws or proceedings authorizing
8.10the bonds or authorizing other obligations, including lease, contract, and other written
8.11obligations, must remain with the comptroller or the previously designated trustees. If the
8.12proceedings do not provide that the funds remain with the comptroller or the previously
8.13designated trustees, the funds must be transferred to the designated state agency.

8.14    Sec. 16. [3D.16] ASSISTANCE OF AND ACCESS TO STATE AGENCIES.
8.15The commission may request the assistance of state agencies and officers. When
8.16assistance is requested, a state agency or officer shall assist the commission. In carrying
8.17out its functions under this chapter, the commission or its designated staff member may
8.18inspect the records, documents, and files of any state agency.

8.19    Sec. 17. [3D.17] RELOCATION OF EMPLOYEES.
8.20If an employee is displaced because a state agency or its advisory committee is
8.21abolished or reorganized, the state agency shall make a reasonable effort to relocate the
8.22displaced employee.

8.23    Sec. 18. [3D.18] SAVING PROVISION.
8.24Except as otherwise expressly provided, abolition of a state agency does not affect
8.25rights and duties that matured, penalties that were incurred, civil or criminal liabilities that
8.26arose, or proceedings that were begun before the effective date of the abolition.

8.27    Sec. 19. [3D.19] REVIEW OF PROPOSED LEGISLATION CREATING AN
8.28AGENCY.
8.29Each bill filed in a house of the legislature that would create a new state agency or
8.30a new advisory committee to a state agency shall be reviewed by the commission. The
8.31commission shall review the bill to determine if:
9.1(1) the proposed functions of the agency or committee could be administered by one
9.2or more existing state agencies or advisory committees;
9.3(2) the form of regulation, if any, proposed by the bill is the least restrictive form of
9.4regulation that will adequately protect the public;
9.5(3) the bill provides for adequate public input regarding any regulatory function
9.6proposed by the bill; and
9.7(4) the bill provides for adequate protection against conflicts of interest within
9.8the agency or committee.

9.9    Sec. 20. [3D.20] EXPIRATION AND SUNSET REVIEW.
9.10    Subdivision 1. Group 1. The following agencies expire on June 30, 2013, and
9.11are subject to sunset review before June 30, 2013: Department of Health, Department
9.12of Human Rights, Department of Human Services, all health-related licensing boards
9.13listed in section 214.01, Council on Affairs of Chicano/Latino People, Council on Black
9.14Minnesotans, Council on Asian-Pacific Minnesotans, Indian Affairs Council, Council on
9.15Disabilities, and all advisory groups associated with these agencies.
9.16    Subd. 2. Group 2. The following agencies expire on June 30, 2015, and are subject
9.17to sunset review before June 30, 2015: Department of Education, Board of Teaching,
9.18Minnesota Office of Higher Education, and all advisory groups associated with these
9.19agencies.
9.20    Subd. 3. Group 3. The following agencies expire on June 30, 2017, and are
9.21subject to sunset review before June 30, 2017: Department of Commerce, Department
9.22of Employment and Economic Development, Department of Labor and Industry, all
9.23non-health-related licensing boards listed in section 214.01 except as otherwise provided
9.24in this section, Explore Minnesota Tourism, Public Utilities Commission, Iron Range
9.25Resources and Rehabilitation Board, Bureau of Mediation Services, Combative Sports
9.26Commission, Amateur Sports Commission, and all advisory groups associated with these
9.27agencies.
9.28    Subd. 4. Group 4. The following agencies expire on June 30, 2019, and are subject
9.29to sunset review before June 30, 2019: Department of Corrections, Department of Public
9.30Safety, Department of Transportation, Peace Officer Standards and Training Board,
9.31Corrections Ombudsman, and all advisory groups associated with these agencies.
9.32    Subd. 5. Group 5. The following agencies expire on June 30, 2021, and are subject
9.33to sunset review before June 30, 2021: Department of Agriculture, Department of Natural
9.34Resources, Pollution Control Agency, Board of Animal Health, Board of Water and Soil
9.35Resources, and all advisory groups associated with these agencies.
10.1    Subd. 6. Group 6. The following agencies expire on June 30, 2023, and are subject
10.2to sunset review before June 30, 2023: Department of Administration, Department of
10.3Management and Budget, Department of Military Affairs, Department of Revenue,
10.4Department of Veterans Affairs, Arts Board, Minnesota Zoo, Office of Administrative
10.5Hearings, Campaign Finance and Public Disclosure Board, Capitol Area Architectural and
10.6Planning Board, Office of Enterprise Technology, Minnesota Racing Commission, and all
10.7advisory groups associated with these agencies.
10.8    Subd. 7. Other groups. The commission may review, under the criteria in
10.9section 3D.10, and propose to the legislature an expiration date for any agency, board,
10.10commission, or program not listed in this section.

10.11    Sec. 21. APPROPRIATION.
10.12$100,000 for the fiscal year ending June 30, 2012, and $100,000 for the fiscal
10.13year ending June 30, 2013, is appropriated from the general fund to the Legislative
10.14Coordinating Commission for purposes of the Sunset Commission."
10.15Amend the title accordingly