MN SF2874

Abolishes the Department of Employment and Economic Development and Department of Labor and Industry effective July 1, 2011, contingent on the 2011 legislature enacting legislation to transfer their responsibilities.

Establishes three separate working groups (managers, employees, and stakeholder representatives) by October 1, 2010, to develop reorganization recommendations for consolidating business and employment services.

Creates a joint committee by January 15, 2011, composed of representatives from the three working groups to submit final reorganization recommendations and draft legislation to the governor and legislature.

Requires an employee participation committee by July 1, 2010, to address reorganization tasks, employer-employee issues, employee retraining plans, and implementation guidance.

Mandates the governor's next biennial budget (2011-2012) include funding at least equal to fiscal years 2010-2011 appropriations adjusted for inflation, with no layoffs except through negotiated collective bargaining agreements, and requires managerial position reductions to offset reorganization costs with zero net state expense.