1.1 	A bill for an act
1.2 	relating to state government; creating the Minnesota Civic Compact, the 
1.3 	Minnesota Youth Council, the Volunteer Capacity Building Partnership, and the 
1.4 	civic innovation fund; requiring establishment of a state strategic plan, public 
1.5 	policy goals, and performance measures; establishing a process for evaluating 
1.6 	achievement of performance measures; creating an Office of Ombudsman; 
1.7 	requiring reports; appropriating money;amending Minnesota Statutes 2010, 
1.8 	sections 4A.01, subdivision 1; 16A.28, subdivision 1; proposing coding for 
1.9 	new law in Minnesota Statutes, chapter 16C; proposing coding for new law as 
1.10 	Minnesota Statutes, chapters 4B; 16F.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	MINNESOTA CIVIC COMPACT; PLANNING, INNOVATION, AND RESULTS

1.14 	Section 1. [4B.01] PURPOSE.
1.15 	The Minnesota Civic Compact recognizes that the long-term success and high quality 
1.16 	of life of Minnesotans will depend on a new approach to governance that brings public 
1.17 	officials and citizens together to set a clear vision for the state's future built on a foundation 
1.18 	of planning, performance management, accountability, and empowerment; this requires 
1.19 	that the state create a strategic plan, that it innovates in the delivery of public services, and 
1.20 	that it measures its success in producing superior results for the citizens of the state.

1.21 	Sec. 2. [4B.02] MINNESOTA NORTHSTAR COUNCIL.
1.22 		Subdivision 1.Establishment. The commissioner of management and budget must 
1.23 	establish and convene the Minnesota Northstar Council to develop a state strategic plan 
1.24 	which will include: (1) a mission statement for the state; (2) up to ten policy goals; and (3) 
1.25 	up to 100 strategic performance measures.
2.1 		Subd. 2.Membership. (a) The Minnesota Northstar Council shall consist of no 
2.2 	more than 20 members. The council shall include the governor, the lieutenant governor, the 
2.3 	speaker of the house of representatives, the minority leader of the house of representatives, 
2.4 	and the senate majority and minority leaders who serve as the executive committee. The 
2.5 	executive committee of the council shall select the remaining members of the council.
2.6 	(b) The remaining members of the council must be citizens with knowledge and 
2.7 	expertise on major state issues. The council must have ten members from the following 
2.8 	communities in Minnesota: business, union, nonprofit, foundation, volunteerism, 
2.9 	performance measurement, redesign and planning, cities, counties, and a youth member. 
2.10 	The council shall have two additional members selected from the general public. Persons 
2.11 	holding the following five positions serve as ex-officio members of the council: the 
2.12 	commissioner of management and budget, the president of the University of Minnesota, 
2.13 	the state demographer, the state economist, and the ombudsman. The governor, or the 
2.14 	governor's designee, shall chair the council. The assistant commissioner of the Planning 
2.15 	and Performance Management Division of Minnesota Management and Budget shall 
2.16 	serve as executive director of the council.
2.17 	(c) Members appointed by the executive committee serve at the pleasure of 
2.18 	the executive committee. Citizen members serve without compensation, but may be 
2.19 	reimbursed for expenses as provided in section 15.059.
2.20 		Subd. 3.Voting requirements. While the goal is consensus, all actions of the 
2.21 	council must be approved by a majority vote of a quorum of council members present at a 
2.22 	meeting. The state strategic plan must be approved by a majority vote of the council and 
2.23 	by a majority of the members of the executive committee.

2.24 	Sec. 3. [4B.03] STATE STRATEGIC PLAN; STRATEGIC PERFORMANCE 
2.25 	MEASURES.
2.26 		Subdivision 1.Development. (a) The council, with advice from state departments 
2.27 	and agencies and aligned legislative committee chairs and ranking members, shall develop 
2.28 	a state strategic plan which must include: (1) a mission statement for the state; (2) up 
2.29 	to ten policy goals; and (3) up to 100 outcome-based strategic performance measures. 
2.30 	Strategic performance measures are a level of achievement by which the state and its 
2.31 	departments can measure their own progress against internal or external standards. 
2.32 	Strategic performance measures must be outcome-based measures.
2.33 	(b) In developing the state strategic plan, the council shall reach out to gather and 
2.34 	coordinate citizen input from citizens across the state. The council must use the work and 
3.1 	process of the Minnesota Milestones in developing the strategic plan and in the council's 
3.2 	other work. The commission must include the use of social media in soliciting input.
3.3 	(c) The council must complete the initial state strategic plan by March 2013. 
3.4 	The council shall review and approve changes to the strategic plan by January of each 
3.5 	even-numbered year. The strategic plan shall undergo continuous review and improvement 
3.6 	by the Minnesota Northstar Council. Each of the ten goal areas and aligned strategic 
3.7 	measures must undergo an in-depth review at least once every four years by the Minnesota 
3.8 	Northstar Council.
3.9 		Subd. 2.Strategic performance measures. The council or Minnesota 
3.10 	Management and Budget must designate an executive agency and owner for each strategic 
3.11 	performance measure that the council establishes as a means of measuring progress 
3.12 	toward accomplishment of the public policy goals established by the council. The 
3.13 	executive agency owner is responsible for the tracking of the measure, the results of the 
3.14 	strategic performance measures, and, in conjunction with frontline workers, the strategies 
3.15 	implemented to improve performance in this area.
3.16 		Subd. 3.Performance improvement plans. Upon request of the commissioner of 
3.17 	management and budget, the head of an executive agency must develop a performance 
3.18 	improvement plan for each designated assigned public policy goal or goals and its aligned 
3.19 	strategic performance measures. The performance improvement plan must include 
3.20 	proposals and actions for achieving the goals and measurements and must include input 
3.21 	from aligned legislative committees and their chairs and Minnesota Management and 
3.22 	Budget. In addition, the performance improvement plan may include a description of how 
3.23 	the volunteerism, service, nonprofit, and business sectors will be engaged in improving the 
3.24 	strategic performance measurement. The department or agency officer in charge of this 
3.25 	strategic performance measurement may designate an existing working group or create a 
3.26 	new working group in order to receive feedback, develop the performance improvement 
3.27 	plan, and carry out the performance improvement plan. Working groups may include 
3.28 	members from the public and private sector but shall not include vendors that would 
3.29 	directly benefit from contracts with this department or agency.

3.30 	Sec. 4. [4B.04] AGENCY STRATEGIC PLANS; PERFORMANCE 
3.31 	MANAGEMENT SYSTEMS.
3.32 		Subdivision 1.Development of strategic plan. Each state agency and department 
3.33 	listed in section 15.06 must work with the aligned legislative committees and their chairs 
3.34 	and Minnesota Management and Budget to prepare a strategic plan using an outcome-based 
3.35 	approach for the agency or department under the commissioner's jurisdiction.
4.1 		Subd. 2.Required content. The strategic plan must be aligned with the state 
4.2 	strategic plan and must identify key strategic outcomes for the next two bienniums and 
4.3 	must include:
4.4 	(1) a mission statement for the agency or department;
4.5 	(2) outcome-based strategic performance measures within the state strategic plan 
4.6 	that fall under the jurisdiction of this agency or department;
4.7 	(3) quality and productivity department or agency performance measures for 
4.8 	determining performance for each major activity within the agency or department's 
4.9 	budget. Performance measures must measure the performance of state-mandated services 
4.10 	or operations. All budget items must be assigned an outcome-based goal within the state 
4.11 	strategic plan;
4.12 	(4) the methodology used to create the metrics to measure the performance measures;
4.13 	(5) the goal level of performance for each performance measure;
4.14 	(6) if progress has been made from the previous year on each performance measure;
4.15 	(7) a method by which the success or failure to achieve the outcome will be 
4.16 	measured;
4.17 	(8) the executive official or owner responsible for achieving each performance 
4.18 	measure;
4.19 	(9) the agency's or department's plans to achieve the goals and improve the 
4.20 	department's performance within the agency or department plan;
4.21 	(10) the projected costs for achieving the department or agency strategic plan; and
4.22 	(11) an increase in outcome for each dollar spent.
4.23 		Subd. 3.Private sector engagement. The department or agency may collaborate 
4.24 	with the volunteerism, nonprofit, and business sectors to develop the department or 
4.25 	agency strategic plan.
4.26 		Subd. 4.Performance improvement plans. Upon request of the commissioner 
4.27 	of the agency or department of the aligned strategic plan, employees must develop 
4.28 	a performance improvement plan for each performance measure. The performance 
4.29 	improvement plan must include proposals and actions for achieving the goals and 
4.30 	measurements. In addition, the performance improvement plan may include a description 
4.31 	of how the volunteerism, service, nonprofit, and business sectors will be engaged in 
4.32 	improving performance in that area. The department or agency officer in charge of this 
4.33 	performance measurement may designate an existing working group or create a new 
4.34 	working group in order to receive feedback, develop the performance improvement plan, 
4.35 	and carry out the performance improvement plan. Working groups may include members 
5.1 	from the public and private sector but shall not include vendors that would directly benefit 
5.2 	from contracts with this department or agency.
5.3 		Subd. 5.Council review. The council must review the department and agency 
5.4 	strategic plans developed under subdivision 1. The head of each agency or department 
5.5 	must designate an owner for each strategic performance measure. The owner is 
5.6 	responsible for the tracking and results of the performance measure. The council may 
5.7 	make suggestions to the governor on alignment between the state's and departments' 
5.8 	strategic plans.
5.9 		Subd. 6.Technical assistance. Minnesota Management and Budget shall provide 
5.10 	technical assistance to departments or agencies in the development of the department 
5.11 	or agency plans, performance measures, and outcome-based budgeting. The Office of 
5.12 	Enterprise Technology shall provide technological support in order to track performance 
5.13 	and make information available to the public.

5.14 	Sec. 5. [4B.05] IMPROVING AGENCY OPERATIONS AND PRODUCTIVITY.
5.15 		Subdivision 1.Employee objectives and learning. Each state department and 
5.16 	agency listed in section 15.06 must align all employee objectives and learning to the state 
5.17 	and agency strategic plans, performance measures, and improvement plans.
5.18 		Subd. 2.Report. Each state department and agency listed in section 15.06 shall 
5.19 	report to the governor and the legislature by January 15 of each even-numbered year on 
5.20 	statutory changes that will improve performance measures.
5.21 		Subd. 3.Performance objectives. All state managers must set performance 
5.22 	objectives for their units annually to be used in the annual performance appraisals of 
5.23 	their employees. Each employee must have a learning and development plan. The 
5.24 	commissioner of management and budget must conduct annual employee surveys to 
5.25 	gather employee input on how agencies can improve performance.
5.26 		Subd. 4.Methods of improving agency performance. (a) All state departments 
5.27 	and agencies must, in implementing performance improvement measures, ensure to the 
5.28 	greatest extent practical that there will not be layoffs of current employees as a result of 
5.29 	implementation of changes that improve agency performance.
5.30 	(b) The commissioner of management and budget must develop a system for 
5.31 	employees to gain from efficiencies and cost savings. Management in partnership with 
5.32 	their exclusive bargaining representative shall develop work performance teams, or use 
5.33 	existing labor-management teams, to spend excess money gained by productivity gains 
5.34 	or efficiencies. This money may be spent on training, retraining, better equipment to 
5.35 	improve performance, or tuition reimbursement.
6.1 		Subd. 5.Employee evaluations. Evaluations of employee performance should 
6.2 	include an evaluation of how an employee has impacted state performance. The 
6.3 	evaluations should note the extent external factors beyond the control of the employee are 
6.4 	responsible for the level of achievement of performance measures.
6.5 		Subd. 6.Governor review of agency performance. The governor shall hold an 
6.6 	annual performance review with all of the state departments and agencies listed in section 
6.7 	15.06 to ensure that they are making progress in implementing their strategic plans, 
6.8 	performance measures, and improvement plans.

6.9 	Sec. 6. [4B.06] PUBLIC "REPORT CARD" ON STATE PERFORMANCE.
6.10 	(a) The Planning and Performance Management Division of Minnesota Management 
6.11 	and Budget shall propose the form of a Minnesota State Performance Report Card to 
6.12 	the council for approval.
6.13 	(b) The report card shall be made public by January 15 of each year and shall, in a 
6.14 	format easily understood by the public starting in the year 2014, show:
6.15 	(1) state policy goals;
6.16 	(2) the strategic performance measures;
6.17 	(3) the methodology used to create the metrics to measure the strategic performance 
6.18 	measures;
6.19 	(4) the goal level of performance for each performance measure determined by 
6.20 	the Minnesota Northstar Council;
6.21 	(5) if progress has been made from the previous year on each performance measure;
6.22 	(6) a statement of the relationship between the level of outcome achievement and 
6.23 	dollars spent on the taxpayer when possible;
6.24 	(7) a statement relating if the value has gone down or up from the previous year 
6.25 	based on an indexed rate of change when possible;
6.26 	(8) the executive official responsible for achieving each performance measure; and
6.27 	(9) the legislative committee that has jurisdiction for the department or agency.
6.28 	(c) The commissioner of management and budget shall conduct an annual citizen 
6.29 	survey to determine the citizen perception of achievement of the state's goals and 
6.30 	performance measures where applicable.

6.31 	Sec. 7. [4B.07] PERFORMANCE QUALITY GUARANTEE.
6.32 	The commissioner of management and budget shall conduct an audit which includes 
6.33 	recommendations for an improvement plan after the first year the commissioner has 
6.34 	determined that a state department or agency is not meeting performance measure 
7.1 	or measures at an acceptable level. After the second consecutive year in which the 
7.2 	commissioner has determined a state agency or department is not meeting a performance 
7.3 	measure or measures, the department or agency is considered on probationary status 
7.4 	and must report monthly on its performance to the commissioner of management and 
7.5 	budget and the governor. After the third consecutive year in which the commissioner 
7.6 	has determined a state agency or department is not meeting a performance measure or 
7.7 	measures, the governor shall take corrective action which may include one or more of 
7.8 	the following:
7.9 	(1) external restructuring of the department;
7.10 	(2) dismissal of management;
7.11 	(3) consolidation of the department with another; and
7.12 	(4) a proposal to the legislature to abolish the department or one or more of its 
7.13 	programs and return the revenues used to fund the department or its programs back to 
7.14 	the citizens of Minnesota.

7.15 	Sec. 8. [4B.08] BUDGETING BASED ON STATE'S STRATEGIC PLAN.
7.16 	(a) The governor shall propose a budget based on the state's strategic plan. The 
7.17 	commissioner of management and budget must work with state departments and agencies 
7.18 	in developing their budgets based on the ten public goals in the state strategic plan as well 
7.19 	as the department and agency strategic plans, performance measures, and improvement 
7.20 	plans. The governor's budget proposal must indicate the impact on achieving the state's 
7.21 	goals. The budget must be able to be presented by department or by goal achievement as 
7.22 	outlined in the state strategic plan.
7.23 	(b) Department or agency budget proposals must include integration of performance 
7.24 	measures that allow objective determination of an activity's success in achieving its 
7.25 	strategic goals. Each department or agency shall include in the budget proposal an 
7.26 	explanation of how the budget request promotes the strategic goals, performance 
7.27 	measures, and outcomes outlined in the applicable strategic plan. For each change item in 
7.28 	the budget proposal, the goal or performance measure to be achieved by the cost increase 
7.29 	must be identified along with the method to evaluate whether or not the outcome has 
7.30 	been achieved. The governor's budget may include proposals to eliminate mandates and 
7.31 	maintenance of effort provisions if certain performance outcomes can be reached.
7.32 	(c) Budget targets shall be set by goal or outcome achieved rather than by department. 
7.33 	Budget items shall be evaluated and ranked within each budget to determine how well that 
7.34 	budget item contributes to the achievement of the state's strategic goals. Budget items that 
8.1 	lead to high outcome achievement will receive high budget priority and budget items that 
8.2 	lead to low outcome achievement will be ranked lower and may not receive funding.
8.3 	(d) The departments must present biannually to the aligned legislative committees 
8.4 	on the achievement of the state's strategic goals through aligned strategic plans and 
8.5 	performance measures. The chair of the aligned legislative committees may request 
8.6 	updates at any time. The commissioner of management and budget shall work with 
8.7 	department and agency staff to prepare fiscal notes that in addition to financial impacts 
8.8 	also indicate how a bill will impact the achievement levels of the state's and departments' 
8.9 	strategic plans and performance measures.
8.10 	(e) The legislature may use the performance measurement system to mandate 
8.11 	performance measure outcomes rather than mandating a service delivery mandate or 
8.12 	maintenance of effort. The legislature must take into account costs when setting mandates 
8.13 	for performance-based outcomes.
8.14 	(f) The revisor of statutes must insert, upon the request of the author of a bill, an 
8.15 	additional legal size sheet of paper during bill jacketing. This sheet shall include the 
8.16 	author's rationale for the bill. The author of the bill may use this sheet to describe how that 
8.17 	piece of legislation will impact state performance, create better outcomes for the state, and 
8.18 	create better value for the taxpayer as well as other rationale for the bill. This sheet must 
8.19 	be posted online in a digital form along with the bill after bill introduction.

8.20 	Sec. 9. [4B.09] PROMOTING EXCELLENCE, ACCOUNTABILITY, AND 
8.21 	PUBLIC SERVICE REDESIGN.
8.22 	The commissioner of management and budget must establish a Planning and 
8.23 	Performance Management Division. The governor shall appoint an assistant commissioner 
8.24 	for management and budget to oversee the Planning and Performance Management 
8.25 	Division. The division must:
8.26 	(1) establish and convene the Minnesota Northstar Council;
8.27 	(2) work with the council to set up the process to develop the strategic plan;
8.28 	(3) assist the council in developing the state strategic plan;
8.29 	(4) consult on management with state agencies;
8.30 	(5) develop the report card and the state departments' and agencies' strategic 
8.31 	planning process and reporting requirements;
8.32 	(6) develop a transparent way to show the progress of the state on its performance 
8.33 	measures online and in print;
8.34 	(7) work with departments and agencies in setting their strategic plans;
9.1 	(8) develop a planning infrastructure for the state in addition to the state strategic 
9.2 	plan and serve as the state planning office;
9.3 	(9) research topics and complete ongoing projects on public sector redesign, 
9.4 	state planning, performance measurement, and effective management approaches in 
9.5 	collaboration with the University of Minnesota and others as directed by the council;
9.6 	(10) report on demographic trends in the state of Minnesota;
9.7 	(11) assess training needs and work with agencies and departments and exclusive 
9.8 	representatives of the agency on training and retraining of state employees; and
9.9 	(12) establish a process for "outcome notes" which explains how a bill impacts the 
9.10 	achievement of state performance measures.

9.11 	Sec. 10. [4B.10] MINNESOTA OFFICE OF OMBUDSMAN; "ONE-STOP 
9.12 	SHOP" FOR CITIZENS.
9.13 		Subdivision 1.Creation. The Minnesota Office of Ombudsman is created in the 
9.14 	Department of Management and Budget to respond to citizens' concerns about state 
9.15 	government. The Office of Ombudsman must report regularly to the governor and the 
9.16 	legislature about its findings.
9.17 		Subd. 2.Telephone service. The Minnesota Office of Ombudsman must establish a 
9.18 	311 telephone service and an online service as a way to direct Minnesotans to the people 
9.19 	serving in state government; this will be a connector for citizens. When practical, this 
9.20 	service must serve as a "one-stop shop" for state services and an information line. Among 
9.21 	other functions, the service may serve as a way for a person to find a polling place, find 
9.22 	a local division of motor vehicles location, or be transferred to a person that can help 
9.23 	with a problem within state government.
9.24 		Subd. 3.Resolution of problems. When a person needs help accessing state 
9.25 	services and is not being served well, the ombudsman must work to resolve the problem or 
9.26 	determine that the problem is not resolvable.
9.27 		Subd. 4.Complaints and comments. The office must serve as a place that citizens 
9.28 	may bring complaints or comments about the state. This office may investigate claims, 
9.29 	including breaches of the public trust, or suggest topics to the Office of the Legislative 
9.30 	Auditor. The ombudsman shall file an annual report to the legislature, governor, and the 
9.31 	public detailing what types of cases the ombudsman has made as a connector, caseworker, 
9.32 	mediator, or complaint receiver.
9.33 		Subd. 5.Mediation role. The office shall serve as a third party in cases of 
9.34 	disputes between the state and citizens when mediation would be helpful. In any case the 
9.35 	ombudsman may refer parties to take part in legal services.

10.1 	Sec. 11. [4B.11] LEGISLATIVE COMMITTEES.
10.2 	In designing the structure and jurisdiction of committees in the house of 
10.3 	representatives and the senate, legislative leaders must attempt to align committees with 
10.4 	the state's ten policy goals set under this chapter, and must establish outcome achievement 
10.5 	resolutions for committees, consistent with the ten policy goals under this chapter.

10.6 	Sec. 12. [16C.051] TAXPAYER ACCOUNTABILITY PROVISIONS.
10.7 		Subdivision 1.Application. This section applies to a contract with an estimated 
10.8 	value of $100,000 or more. The requirements imposed by this section are in addition 
10.9 	to, and do not supersede, the requirements of any other applicable section of law. This 
10.10 	section does not apply to a Department of Transportation contract that is subject to 
10.11 	section 161.3203.
10.12 		Subd. 2.Required review. (a) Before entering into a contract subject to this section, 
10.13 	the agency head must prepare a comprehensive written estimate of the cost of having the 
10.14 	same work provided in the most cost-effective manner by agency employees. The cost 
10.15 	estimate must include all costs of having agency employees provide the work, including 
10.16 	the cost of pension, insurance, and all other employee benefits. The cost estimate is 
10.17 	nonpublic data, as defined in section 13.02, subdivision 9, until the day after the deadline 
10.18 	for receipt of responses under paragraph (b).
10.19 	(b) After soliciting and receiving responses, the agency head shall publicly designate 
10.20 	the responder to which it proposes to award the contract. The commissioner shall prepare 
10.21 	a comprehensive written estimate of the cost of the proposal based on the designated 
10.22 	responder's bid, including costs associated with monitoring the proposed contract. If the 
10.23 	designated responder proposes to perform any or all of the desired services outside the 
10.24 	state, the commissioner shall include in the cost estimate, as near as possible, any loss of 
10.25 	sales and income tax revenue to the state. The cost estimate must not include trade secret 
10.26 	data which is classified as nonpublic data under section 13.37, subdivision 2.
10.27 	(c) An agency may not enter into a contract subject to this section unless the agency 
10.28 	head determines that:
10.29 	(1) the cost estimated under paragraph (b) will be lower than the cost estimated 
10.30 	under paragraph (a);
10.31 	(2) the quality of the work to be provided by the designated responder is likely to 
10.32 	equal or exceed the quality of services that could be provided by state employees;
10.33 	(3) the contract, together with other contracts to which the department is or has been 
10.34 	a party, will not violate section 16C.08 or 16C.09, or otherwise reduce full-time equivalent 
10.35 	positions within the department; and
11.1 	(4) the proposed contract is in the public interest.
11.2 		Subd. 3.Reports. The commissioner of administration must report to the legislature 
11.3 	by September 1 each year, in compliance with sections 3.195 and 3.197, on implementation 
11.4 	of this section. The report must list all contracts subject to this section that were executed 
11.5 	or performed, whether wholly or in part, in the previous fiscal year. The report must 
11.6 	identify, with respect to each contract: the contractor; contract amount; duration; work 
11.7 	provided or to be provided; the comprehensive estimate derived under subdivision 2, 
11.8 	paragraph (a); the comprehensive estimate derived under subdivision 2, paragraph (b); the 
11.9 	actual cost to the agency of the contractor's performance of the contract; and a statement 
11.10 	containing the agency head's determinations under subdivision 2, paragraph (c).

11.11 	ARTICLE 2
11.12 	VOLUNTEERISM

11.13 	Section 1. [16F.01] MINNESOTA YOUTH COUNCIL.
11.14 		Subdivision 1.Establishment and membership. The Minnesota Youth Council 
11.15 	is established within and under the auspices of the Minnesota Alliance With Youth. The 
11.16 	council shall consist of four members from each congressional district in Minnesota 
11.17 	and an additional four members selected at large. Members shall be selected through an 
11.18 	application and interview process conducted by the Minnesota Alliance With Youth. The 
11.19 	Minnesota Alliance With Youth appointments should strive to ensure gender and ethnic 
11.20 	diversity in the council's membership. Members shall be the ages of 13 to 19 and shall 
11.21 	serve two-year terms, except that one-half of the initial members shall serve a one-year 
11.22 	term. Members may serve a maximum of two terms.
11.23 		Subd. 2.Duties. The Minnesota Youth Council shall:
11.24 	(1) provide advice and recommendation to the legislature and the governor on issues 
11.25 	affecting youth;
11.26 	(2) serve as liaisons for youth around the state to the legislature and the governor;
11.27 	(3) serve as mentors for political education in the members' communities; and
11.28 	(4) submit an annual report of the council's activities and goals.
11.29 		Subd. 3.Partnerships. The Minnesota Youth Council shall partner with nonprofits, 
11.30 	the private sector, and educational resources to fulfill the duties of this section.
11.31 		Subd. 4.Creation of Youth Council Advisory Committee in the legislature.
 11.32 	The Youth Council Advisory Committee shall meet at least twice each year during the 
11.33 	regular session of the legislature.
11.34 	The committee may:
12.1 	(1) select introduced bills in the house of representatives and senate for consideration 
12.2 	for a public hearing before the committee;
12.3 	(2) propose youth legislation;
12.4 	(3) provide advisory opinions to the legislature of bills heard before the committee; 
12.5 	and
12.6 	(4) prepare a youth omnibus bill.
12.7 	The leaders of the majority and minority parties of the house of representatives and 
12.8 	senate shall appoint one legislator to serve as a legislative liaison (or ex-officio member) 
12.9 	to the committee. Leadership of the house of representatives and senate, on rotating years, 
12.10 	shall appoint a staff member to staff the committee.

12.11 	Sec. 2. [16F.02] VOLUNTEER CAPACITY BUILDING PARTNERSHIP.
12.12 		Subdivision 1.Formation. The governor shall form a public-private partnership 
12.13 	established as the Volunteer Capacity Building Partnership to assist the Minnesota 
12.14 	Northstar Council in advancing through volunteerism the goals outlined in the state 
12.15 	strategic plan. To fulfill its purpose, the Volunteer Capacity Building Partnership must 
12.16 	support volunteer infrastructure and promote volunteerism in Minnesota communities. 
12.17 	The partnership must work collaboratively to build capacity to achieve results through 
12.18 	volunteerism and create pathways for service to support state goals set by the Minnesota 
12.19 	Northstar Council.   The Volunteer Capacity Building Partnership must be comprised of 
12.20 	leaders in volunteerism and the volunteer infrastructure community who are experts in 
12.21 	volunteerism. The governor or a designee shall appoint members to this partnership. 
12.22 	This partnership must represent unpaid and paid leaders in the volunteerism field. This 
12.23 	partnership must be geographically balanced.  All members of the partnership must serve 
12.24 	voluntarily and without compensation except for reimbursement of expenses according 
12.25 	to section 15.059. This partnership must make every effort not to structurally merge or 
12.26 	absorb responsibilities of strategic planning partners, and must work to make sure partners 
12.27 	remain strong, independent, and collaborative. The commissioner of administration shall 
12.28 	contract with and provide funding to an existing statewide organization that focuses on 
12.29 	volunteer infrastructure to staff the partnership.
12.30 		Subd. 2.Duties. (a) The first duty of the partnership is to conduct the Assessment of 
12.31 	Volunteer Infrastructure of section 4 in order to identify gaps and strengths in volunteer 
12.32 	infrastructure throughout Minnesota.
12.33 	(b) The partnership shall bring to scale current efforts to provide training, 
12.34 	consultation, and resources on volunteer engagement. Recognizing that for volunteers to 
12.35 	be effective and well organized it takes support and infrastructure,  the partnership shall 
13.1 	provide technical assistance and training as needed to the public and private sector for the 
13.2 	development and sustainment of volunteer programs throughout Minnesota to:
13.3 	(1) offer widely available training on best practices of leadership of volunteers;
13.4 	(2) convene key organizations and leaders to address pressing issues; and
13.5 	(3) build citizen access to opportunities for volunteer service and create pathways 
13.6 	for service to support state goals set by the Minnesota Northstar Council.
13.7 	(c) The partnership shall conduct research on volunteerism to ensure accessibility 
13.8 	to volunteerism for all state citizens and identify the needs of volunteer programs in 
13.9 	order to strengthen their effectiveness and capability to achieve results. The partnership 
13.10 	may issue informational materials relating to volunteer programs in Minnesota and the 
13.11 	results of the research.
13.12 	(d) The partnership shall develop and execute a plan to promote volunteerism. This 
13.13 	plan must include ways to recognize volunteers and encourage volunteerism.
13.14 	(e) The partnership shall serve as an organization with the ability to keep Minnesota 
13.15 	in the forefront of civic engagement. The partnership shall:
13.16 	(1) monitor progress on a comprehensive volunteerism plan and update this plan 
13.17 	on a periodic basis;
13.18 	(2) act proactively to bring opportunities in civic engagement forward for the state;
13.19 	(3) create an information system on volunteerism resources to serve as a 
13.20 	clearinghouse to allow organizations and individuals with new ideas to connect with 
13.21 	similar endeavors in the state;
13.22 	(4) serve as a consultant to state agencies, policy makers, and departments on best 
13.23 	practices in volunteerism and on opportunities in volunteerism to meet the goals outlined 
13.24 	in the state strategic plan;
13.25 	(5) promote and support efforts by citizens, community-based organizations, 
13.26 	nonprofits, communities of faith, and units of  government to collaborate in solving 
13.27 	community problems;
13.28 	(6) recognize and publicize models of effective public problem solving by citizens; 
13.29 	and
13.30 	(7) build citizen access to opportunities for volunteer service and create pathways 
13.31 	for service to support state goals set by the Minnesota Northstar Council.
13.32 	(f) The partnership shall advance the goals outlined in the state strategic plan. The 
13.33 	partnership shall assist the Minnesota Northstar Council in tracking strategic performance 
13.34 	measures in the area of civic engagement and volunteerism.
13.35 		Subd. 3.Coordination. The partnership shall cooperate with national, state, and 
13.36 	local groups in collecting information on federal, state, and private resources which may 
14.1 	encourage and improve volunteer efforts within the state. The partnership may  coordinate 
14.2 	its research and other work on citizen engagement with other entities such as, but not 
14.3 	limited to, foundations, state boards, state commissions, the Minnesota Extension Service, 
14.4 	the University of Minnesota, nonprofits, businesses, state agencies, and state departments.
14.5 		Subd. 4.Fees. A private member of the partnership may charge a fee for service to 
14.6 	state agencies, political subdivisions, private and nonprofit organizations, and individuals 
14.7 	for services provided under this section.

14.8 	Sec. 3. [16F.03] CIVIC INNOVATION FUND.
14.9 	The civic innovation fund is established to promote and support new initiatives 
14.10 	or strategies focused on developing citizen engagement in creating better outcomes to 
14.11 	our state's volunteerism goals and plan developed by the Minnesota Northstar Council. 
14.12 	The Volunteer Capacity Building Partnership shall solicit proposals  from community 
14.13 	organizations, individuals, foundations, and various units of government. The partnership 
14.14 	shall determine grantees and grant amounts by vote of partnership members based on the 
14.15 	proposal's ability to: (1) improve state goal or outcomes attainment, (2) meaningfully 
14.16 	engage Minnesotans in improving goal attainment, and (3) become self-sustaining within 
14.17 	five years. Grants shall be awarded from the civic innovation fund. The account consists 
14.18 	of the amounts appropriated to the account by law and of contributions to the account from 
14.19 	private sources. Money in the account is appropriated to the partnership for purposes of 
14.20 	making grants under this section.

14.21 	Sec. 4. ASSESSMENT OF VOLUNTEER INFRASTRUCTURE.
 14.22 		Subdivision 1.Volunteer infrastructure assessment. The Volunteer Capacity 
14.23 	Building Partnership, consistent with state grants management laws, policy and procedures 
14.24 	must oversee an assessment of volunteer infrastructure. The Volunteer Capacity Building 
14.25 	Partnership is accountable to Minnesota Management and Budget and must provide 
14.26 	reports directly to the Minnesota Northstar Council in areas of responsibility that pertain 
14.27 	to the Volunteer Capacity Building Partnership, civic innovation fund, and the assessment 
14.28 	of volunteer infrastructure.
14.29 		Subd. 2.Report. (a) The assessment shall:
14.30 	(1) identify gaps and challenges in volunteer infrastructure in Minnesota and 
14.31 	propose solutions;
14.32 	(2) identify duplication of efforts and suggest opportunities for collaboration;
14.33 	(3) identify ways of leveraging what organizations do best to develop creative and 
14.34 	innovative solutions to critical issues; and
15.1 	(4) create a comprehensive plan for advancing volunteerism in Minnesota.
15.2 	(b) By  January 15, 2012, this report must be submitted to the commissioner of 
15.3 	administration  and the chairs and ranking minority members of the legislative committees 
15.4 	with jurisdiction over state government finance.
15.5 		Subd. 3.Delegation. The commissioner of administration shall delegate the duties 
15.6 	under this section to an existing private nonprofit corporation that is exempt from taxation 
15.7 	under section 501(c)(3) of the Internal Revenue Code of 1986. The private nonprofit 
15.8 	corporation must have a volunteer infrastructure focus, be committed to excellence in 
15.9 	building capacity for volunteerism, and have a statewide focus. Notwithstanding any law 
15.10 	to the contrary, the private nonprofit is not subject to laws governing state agencies or 
15.11 	political subdivisions, except the provisions of Minnesota Statutes, chapter 13; the Open 
15.12 	Meeting Law under Minnesota Statutes, chapter 13D; salary limits under Minnesota 
15.13 	Statutes, section 15A.0815, subdivision 2; and audits by the legislative auditor under 
15.14 	Minnesota Statutes, chapter 3. The board of directors and the executive director of the 
15.15 	nonprofit corporation are considered an "official" for purposes of Minnesota Statutes, 
15.16 	section 10A.071. Notwithstanding any law to the contrary, this contract does not interfere 
15.17 	with the nonprofit's ability to direct other work, raise resources, and apply for nonprofit 
15.18 	funding to engage in its work.

15.19 	Sec. 5. SENIOR VOLUNTEER TRANSPORTATION.
 15.20 	The Metropolitan Council, in coordination with Volunteers of America's senior corps 
15.21 	program, must develop a program to provide free rides on public transportation for seniors 
15.22 	60 years old or older to and from volunteer opportunities when the volunteer experience is 
15.23 	at least four hours long. By January 15, 2012, the Metropolitan Council shall report to the 
15.24 	chairs and ranking minority members of the house of representatives and senate divisions 
15.25 	and committees with jurisdiction over state government the details of this program.

15.26 	Sec. 6. APPROPRIATION; MINNESOTA YOUTH COUNCIL.
 15.27 	$....... is appropriated from the general fund to the Minnesota Youth Council under 
15.28 	Minnesota Statutes, section 16F.01.

15.29 	Sec. 7. APPROPRIATION; CAMPUS COMPACT.
 15.30 	$....... is appropriated from the general fund to the Minnesota Office of Higher 
15.31 	Education for grants to increase campus-community collaboration and service learning 
15.32 	statewide. The appropriation must be used for the operations of the Minnesota campus 
15.33 	compact, grants to member institutions, and grants for member institution initiatives. At 
16.1 	least one-half of the grants under this section must be made for projects that promote 
16.2 	economic recovery. For every $1 in state funding, grant recipients must contribute $2 
16.3 	in campus or community-based support.

16.4 	Sec. 8. APPROPRIATIONS.
 16.5 	(a) $....... is appropriated from the general fund for youth works programs under 
16.6 	Minnesota Statutes, sections 124D.37 to 124D.45
16.7 	(b) $....... is appropriated from the general fund for early childhood literacy programs 
16.8 	under Minnesota Statutes, section 119A.50, subdivision 3.

16.9 	ARTICLE 3
16.10 	CONFORMING CHANGES

16.11 	Section 1. Minnesota Statutes 2010, section 4A.01, subdivision 1, is amended to read:
16.12 		Subdivision 1.Duties. The commissioner of administration is the state 
16.13 	planning officer and is responsible for the coordination, development, assessment, and 
16.14 	communication of information, performance measures, planning, and policy concerning 
16.15 	the state's future. The commissioner must carry out duties under this chapter through the 
16.16 	Planning and Performance Management Division of the Department of Management 
16.17 	and Budget. The commissioner may contract with another agency for the provision of 
16.18 	administrative services.

16.19 	Sec. 2. Minnesota Statutes 2010, section 16A.28, subdivision 1, is amended to read:
16.20 		Subdivision 1.Carryforward. Agencies may carry forward unexpended and 
16.21 	unencumbered nongrant operating balances: (1) from the first year of a biennium into 
16.22 	the second year of the biennium; and (2) from the second year of the biennium into the 
16.23 	following biennium if the commissioner of management and budget determines that the 
16.24 	balance is a result of savings from enhanced efficiency in the performance of agency 
16.25 	duties and is justified.

16.26 	Sec. 3. TRANSFER OF DUTIES.
 16.27 	The Management Analysis Division in the Department of Management and Budget 
16.28 	is renamed the Planning and Performance Management Division. Powers and duties of the 
16.29 	commissioner of administration relating to the state demographer and relating to strategic 
16.30 	and long-range planning are transferred to the Planning and Performance Management 
16.31 	Division of the Department of Management and Budget. Minnesota Statutes, section 
16.32 	15.039, applies to this transfer.