You must receive a passing score on the exam, but you do not need to be within the top ten or twenty names on the list to be considered for a transfer. Your state seniority stays the same. However, your class seniority may change. For information specific to your situation, you should see your union representative or contact your agency Human Resources office. Yes, it is possible.
Reallocation is one way, but there are others.
Check with your agency Human Resources office for details. It stays the same unless your current salary is less than the first step of the new salary range, in which case you will be paid at the first step. It is usually optional and up to the agency to decide whether you will serve a probationary period. Check the union contract that covers the vacancy for further details. Thank you for considering the State of Minnesota as your next employer.