Bill Text: MN HF299 | 2011-2012 | 87th Legislature | Chaptered
Bill Title: Executive branch agencies retained savings program established.
Sponsorship: Strong Partisan Bill (Republican 23-2)
Status: (Passed) 2011-05-19 - Secretary of State Chapter 24 05/19/11 [HF299 Detail]
Download: Minnesota-2011-HF299-Chaptered.html
CHAPTER 24--H.F.No. 299
An act
relating to state government; establishing a retained savings program for executive branch agencies;amending Minnesota Statutes 2010, section 16A.28,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 15.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. [15.76] SAVI PROGRAM.
Subdivision 1. Program established. The state agency value initiative (SAVI)
program is established to encourage state agencies to identify cost-effective and efficiency
measures in agency programs and operations that result in cost savings for the state. All
state agencies, including Minnesota State Colleges and Universities, may participate in
this program.
Subd. 2. Retained savings. (a) In order to encourage innovation and creative
cost savings by state employees, upon approval of the commissioner of management
and budget, 50 percent of any appropriations for agency operations that remain unspent
at the end of a biennium because of unanticipated innovation, efficiencies, or creative
cost-savings may be carried forward and retained by the agency to fund specific agency
proposals or projects. Agencies choosing to spend retained savings funds must ensure that
project expenditures do not create future obligations beyond the amounts available from
the retained savings. The retained savings must be used only to fund projects that directly
support the agency's mission. This section does not restrict authority granted by other law
to carry forward money for a different period or for different purposes.
(b) This section supersedes any contrary provision of section 16A.28.
Subd. 3. Special peer review panel; review process. (a) Each participating agency
must organize a peer review panel that will determine which proposal or project receives
funding from the SAVI program. The peer review panel must be comprised of department
employees who are credited with cost-savings initiatives and department managers. The
ratio between managers and department employees must be balanced.
(b) An agency may spend money for a project recommended for funding by the
peer review panel after:
(1) the agency has posted notice of spending for the proposed project on the agency
Web site for at least 30 days; and
(2) the commissioner of management and budget has approved spending money
from the SAVI account for the project.
(c) Before approving a project, the commissioner of management and budget
must submit the request to the Legislative Advisory Commission for its review and
recommendation. Upon receiving a request from the commissioner, the Legislative
Advisory Commission shall post notice of the request on a legislative Web site for at least
30 days. Failure of the commission to make a recommendation within this 30-day period
is considered a negative recommendation. A recommendation of the commission must be
made at a meeting of the commission unless a written recommendation is signed by all
the members entitled to vote on the item.
Subd. 4. SAVI-dedicated account. Each agency that participates in the SAVI
program shall have a SAVI-dedicated account in the special revenue fund, or other
appropriate fund as determined by the commissioner of management and budget, into
which the agency's savings are deposited. The agency will manage and review projects
that are funded from this account. Money in the account is appropriated to the participating
agency for purposes authorized by this section.
Subd. 5. Expiration. This section expires June 30, 2018.
EFFECTIVE DATE.This section is effective June 30, 2013, and first applies to
funds to be carried forward from the biennium ending June 30, 2013, to the biennium
beginning July 1, 2013.
Sec. 2. Minnesota Statutes 2010, section 16A.28, subdivision 3, is amended to read:
Subd. 3. Lapse. Any portion of any appropriation not carried forward and remaining
unexpended and unencumbered at the close of a fiscal year lapses to the fund from which
it was originally appropriated. Except as provided in section 15.76, any appropriation
amounts not carried forward and remaining unexpended and unencumbered at the close of
a biennium lapse to the fund from which the appropriation was made.
EFFECTIVE DATE.This section is effective June 30, 2013.
Presented to the governor May 16, 2011
Signed by the governor May 19, 2011, 12:45 p.m.
