1.1                          A bill for an act 
  1.2             relating to state government; establishing the 
  1.3             Minnesota office of technology; creating North Star 
  1.4             information access account; appropriating money; 
  1.5             amending Minnesota Statutes 1996, sections 16B.46; and 
  1.6             16B.465, subdivisions 1, 3, 4, and 6; proposing coding 
  1.7             for new law as Minnesota Statutes, chapter 237A; 
  1.8             repealing Minnesota Statutes 1996, sections 15.95; 
  1.9             15.96; 16B.40; 16B.41; and 16B.43. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1
  1.12     Section 1.  [237A.01] [OFFICE OF TECHNOLOGY.] 
  1.13     Subdivision 1.  [PURPOSE.] The Minnesota office of 
  1.14  technology is an agency in the executive branch managed by an 
  1.15  executive director appointed by the governor in accordance with 
  1.16  section 237A.02, subdivision 1.  The office shall provide 
  1.17  leadership and direction for information and communications 
  1.18  technology policy in Minnesota.  The office shall attempt to 
  1.19  establish Minnesota as a national and global leader in 
  1.20  electronic commerce, including trade, distance learning, 
  1.21  telemedicine, and government services, and to ensure that 
  1.22  Minnesota's citizens and businesses receive the benefits of the 
  1.23  emerging competitive market for advanced information and 
  1.24  communications products and services as well as reasonable 
  1.25  consumer protection.  The office shall attempt to coordinate 
  1.26  public and private efforts to advance the development of a 
  1.27  statewide information and communications technology 
  2.1   infrastructure. 
  2.2      Subd. 2.  [DISCRETIONARY POWERS.] The office may: 
  2.3      (1) within its authorized spending authority, enter into 
  2.4   contracts for goods or services with public or private 
  2.5   organizations and charge fees for services it provides; 
  2.6      (2) apply for, receive, and expend money from public 
  2.7   agencies; 
  2.8      (3) apply for, accept, and disburse grants and other aids 
  2.9   from the federal government and other public or private sources; 
  2.10     (4) enter into contracts with agencies of the federal 
  2.11  government, local governmental units, the University of 
  2.12  Minnesota and other educational institutions, and private 
  2.13  persons and other nongovernmental organizations as necessary to 
  2.14  perform its statutory duties; 
  2.15     (5) appoint committees and task forces to assist the office 
  2.16  in carrying out its duties; 
  2.17     (6) sponsor and conduct conferences and studies, collect 
  2.18  and disseminate information, and issue reports relating to 
  2.19  information and communications technology issues; 
  2.20     (7) participate in the activities of standards bodies and 
  2.21  other appropriate conferences related to information and 
  2.22  communications technology issues; 
  2.23     (8) review the technology infrastructure of regions of the 
  2.24  state and cooperate with and make recommendations to the 
  2.25  governor, legislature, state agencies, local governments, local 
  2.26  technology development agencies, the federal government, private 
  2.27  businesses, and individuals for the realization of information 
  2.28  and communications technology infrastructure development 
  2.29  potential; 
  2.30     (9) sponsor, support, and facilitate innovative and 
  2.31  collaborative economic and community development and government 
  2.32  services projects, including technology initiatives related to 
  2.33  culture and the arts, with public and private organizations; and 
  2.34     (10) review and recommend alternative sourcing strategies 
  2.35  for state information and communication systems. 
  2.36     Subd. 3.  [DUTIES.] The office shall: 
  3.1      (1) coordinate the efficient and effective use of available 
  3.2   federal, state, local, and private resources to develop 
  3.3   statewide information and communications technology and its 
  3.4   infrastructure; 
  3.5      (2) review state agency and intergovernmental information 
  3.6   and communications systems development efforts involving state 
  3.7   or intergovernmental funding, provide information to the 
  3.8   legislature in accordance with section 16A.11 regarding projects 
  3.9   reviewed, and recommend projects for inclusion in the 
  3.10  information technology budget under section 16A.11; 
  3.11     (3) encourage cooperation and collaboration among state and 
  3.12  local governments in developing intergovernmental communication 
  3.13  and information systems, and define the structure and 
  3.14  responsibilities of the information policy council; 
  3.15     (4) continue the development of North Star, the state's 
  3.16  official comprehensive on-line service and information 
  3.17  initiative; 
  3.18     (5) promote and collaborate with the state's agencies in 
  3.19  the state's transition to an effectively competitive 
  3.20  telecommunications market; 
  3.21     (6) promote and coordinate education and lifelong learning 
  3.22  initiatives to assist Minnesotans to develop technical literacy 
  3.23  and obtain access to ongoing learning resources; 
  3.24     (7) promote and coordinate public information access and 
  3.25  network initiatives to connect Minnesota's citizens and 
  3.26  communities to each other, to their governments, and to the 
  3.27  world; 
  3.28     (8) promote and coordinate electronic commerce initiatives 
  3.29  to ensure that Minnesota businesses and citizens can 
  3.30  successfully compete in the global economy; 
  3.31     (9) promote and coordinate the regular and periodic 
  3.32  reinvestment in the core information and communications 
  3.33  technology infrastructure so state and local government agencies 
  3.34  can effectively and efficiently serve their customers; 
  3.35     (10) facilitate the cooperative development of standards 
  3.36  for information systems, electronic data practices and privacy, 
  4.1   and electronic commerce among international, national, state, 
  4.2   and local public and private organizations; and 
  4.3      (11) work with others to avoid unnecessary duplication of 
  4.4   existing services or activities provided by other public and 
  4.5   private organizations while building on the existing 
  4.6   governmental, educational, business, health care, and economic 
  4.7   development infrastructures. 
  4.8      Sec. 2.  [237A.02] [OFFICE OF TECHNOLOGY STRUCTURE AND 
  4.9   PERSONNEL.] 
  4.10     Subdivision 1.  [OFFICE MANAGEMENT AND STRUCTURE.] The 
  4.11  executive director shall serve as the chief information officer 
  4.12  and technology advisor to the governor.  The salary of the 
  4.13  executive director may not exceed 85 percent of the governor's 
  4.14  salary.  The executive director may employ a deputy director, 
  4.15  assistant directors, and other employees the executive director 
  4.16  may consider necessary.  The staff of the office must include 
  4.17  individuals knowledgeable in information and communications 
  4.18  technology.  The executive director may define the duties and 
  4.19  designate the titles of the employees in accordance with chapter 
  4.20  43A. 
  4.21     Subd. 2.  [INTERGOVERNMENTAL PARTICIPATION.] The executive 
  4.22  director or the director's designee shall serve as a member of 
  4.23  the Minnesota education telecommunications council, the 
  4.24  geographic information systems council, the library planning 
  4.25  task force, and their respective successor organizations, and as 
  4.26  a member of Minnesota Technology, Inc., the Minnesota health 
  4.27  data institute, and the Minnesota world trade center corporation.
  4.28     Sec. 3.  [237A.03] [NORTH STAR INFORMATION ACCESS ACCOUNT.] 
  4.29     The North Star information access account is in the special 
  4.30  revenue fund.  Money in the account is appropriated to the 
  4.31  office to be used to continue the development of the North Star 
  4.32  project as provided in this chapter.  The account consists of: 
  4.33     (1) grants received from nonstate entities; 
  4.34     (2) fees and charges collected by the office; 
  4.35     (3) gifts, donations, and bequests made to the office; and 
  4.36     (4) other funds credited to the account by law. 
  5.1      Sec. 4.  [237A.04] [ADMINISTRATION OF STATE INFORMATION AND 
  5.2   COMMUNICATIONS SYSTEMS.] 
  5.3      Subdivision 1.  [DEFINITIONS.] For the purposes of sections 
  5.4   237A.04 to 237A.06 the following terms have the meanings given 
  5.5   them. 
  5.6      (a) "Information and communications technology activity" 
  5.7   means the development or acquisition of information and 
  5.8   communications technology devices and systems. 
  5.9      (b) "Data processing device or system" means equipment or 
  5.10  computer programs, including computer hardware, firmware, 
  5.11  software, and communication protocol, used in connection with 
  5.12  the processing of information through electronic data processing 
  5.13  means, and includes data communication devices used in 
  5.14  connection with computer facilities for the transmission of data.
  5.15     (c) "State agency" includes state colleges and universities 
  5.16  and the Minnesota higher education services office. 
  5.17     Subd. 2.  [EXECUTIVE DIRECTOR'S RESPONSIBILITY.] The 
  5.18  executive director shall coordinate the state's information and 
  5.19  communications technology systems to serve the needs of the 
  5.20  state government.  The executive director shall: 
  5.21     (1) coordinate the design of a master plan for information 
  5.22  and communications technology systems in the state and its 
  5.23  political subdivisions and shall report on the plan to the 
  5.24  governor and legislature at the beginning of each regular 
  5.25  session; 
  5.26     (2) coordinate all information and communications 
  5.27  technology plans and contracts and oversee the state's 
  5.28  information and communications systems; 
  5.29     (3) establish standards for information and communications 
  5.30  systems that encourage competition and support open systems 
  5.31  environments and that are compatible with national and 
  5.32  international standards; and 
  5.33     (4) maintain a library of systems and programs developed by 
  5.34  the state and its political subdivisions for use by agencies of 
  5.35  government. 
  5.36     Subd. 3.  [EVALUATION PROCEDURE.] The executive director 
  6.1   shall establish and, as necessary, update and modify procedures 
  6.2   to evaluate information and communications activities proposed 
  6.3   by state agencies.  The evaluation procedure must assess the 
  6.4   necessity, design and plan for development, ability to meet user 
  6.5   requirements, feasibility, and flexibility of the proposed data 
  6.6   processing device or system, its relationship to other state 
  6.7   data processing devices or systems, and its costs and benefits 
  6.8   when considered by itself and when compared with other options. 
  6.9      Subd. 4.  [REPORT TO LEGISLATURE.] The executive director 
  6.10  shall submit to the legislature, in the annual information 
  6.11  technology budget required by section 16A.11, a concise 
  6.12  narrative explanation of the activity and a request for any 
  6.13  additional appropriation necessary to complete the activity. 
  6.14     Subd. 5.  [SYSTEM DEVELOPMENT METHODOLOGY.] The executive 
  6.15  director shall establish and, as necessary, update and modify 
  6.16  methodologies for the development of information and 
  6.17  communications systems appropriate to the specific needs of 
  6.18  individual state agencies.  The development methodology shall be 
  6.19  used to define the design, programming, and implementation of 
  6.20  systems.  The development methodologies must also enable and 
  6.21  require a data processing system to be defined in terms of its 
  6.22  computer programs, input requirements, output formats, 
  6.23  administrative procedures, and processing frequencies. 
  6.24     Subd. 6.  [DATA SECURITY SYSTEMS.] In consultation with the 
  6.25  attorney general and appropriate agency heads, the executive 
  6.26  director shall develop data security policies, guidelines, and 
  6.27  standards, and the commissioner of administration shall install 
  6.28  and administer state data security systems on the state's 
  6.29  centralized computer facility consistent with these policies, 
  6.30  guidelines, standards, and state law to assure the integrity of 
  6.31  computer-based and other data and to assure confidentiality of 
  6.32  the data, consistent with the public's right to know as defined 
  6.33  in chapter 13.  Each department or agency head is responsible 
  6.34  for the security of the department's or agency's data. 
  6.35     Subd. 7.  [JOINT ACTIONS.] The executive director may join 
  6.36  with the federal government, other states, local governments, 
  7.1   and organizations representing those groups either jointly or 
  7.2   severally in the development and implementation of systems 
  7.3   analysis, information services, and computerization projects. 
  7.4      Subd. 8.  [ELECTRONIC PERMITTING AND LICENSING.] The 
  7.5   executive director, in consultation with affected parties, shall 
  7.6   coordinate the development of a system through which state 
  7.7   permits or licenses normally issued immediately upon payment of 
  7.8   a fee may be issued through electronic access to the appropriate 
  7.9   state agencies. 
  7.10     Sec. 5.  [237A.05] [INFORMATION AND COMMUNICATIONS 
  7.11  TECHNOLOGY POLICY.] 
  7.12     Subdivision 1.  [DEVELOPMENT.] The office shall coordinate 
  7.13  with state agencies in the development and establishment of 
  7.14  policies and standards for state agencies to follow in 
  7.15  developing and purchasing information and communications systems 
  7.16  and training appropriate persons in their use.  The office shall 
  7.17  develop, promote, and coordinate state technology, architecture, 
  7.18  standards and guidelines, information needs analysis techniques, 
  7.19  contracts for the purchase of equipment and services, and 
  7.20  training of state agency personnel on these issues. 
  7.21     Subd. 2.  [RESPONSIBILITIES.] (a) In addition to other 
  7.22  activities prescribed by law, the office shall carry out the 
  7.23  duties set out in this subdivision. 
  7.24     (b) The office must develop and establish a state 
  7.25  information architecture to ensure that further state agency 
  7.26  development and purchase of information and communications 
  7.27  systems, equipment, and services is designed to assure that 
  7.28  individual agency information systems complement and do not 
  7.29  needlessly duplicate or conflict with the systems of other 
  7.30  agencies.  When state agencies have need for the same or similar 
  7.31  computer data, the executive director, in coordination with the 
  7.32  affected agencies, shall ensure that the most efficient and 
  7.33  cost-effective method of producing and storing data for or 
  7.34  sharing data between those agencies is used.  The development of 
  7.35  this information architecture must include the establishment of 
  7.36  standards and guidelines to be followed by state agencies. 
  8.1      (c) The office shall assist state agencies in the planning 
  8.2   and management of information systems so that an individual 
  8.3   information system reflects and supports the state agency's 
  8.4   mission and the state's requirements and functions. 
  8.5      (d) The office must review agency requests for legislative 
  8.6   appropriations for the development or purchase of information 
  8.7   systems equipment or software. 
  8.8      (e) The office shall review major purchases of information 
  8.9   systems equipment to: 
  8.10     (1) ensure that the equipment follows the standards and 
  8.11  guidelines of the state information architecture; 
  8.12     (2) ensure that the equipment is consistent with the 
  8.13  information management principles adopted by the information 
  8.14  policy council; 
  8.15     (3) evaluate whether the agency's proposed purchase 
  8.16  reflects a cost-effective policy regarding volume purchasing; 
  8.17  and 
  8.18     (4) ensure that the equipment is consistent with other 
  8.19  systems in other state agencies so that data can be shared among 
  8.20  agencies, unless the office determines that the agency 
  8.21  purchasing the equipment has special needs justifying the 
  8.22  inconsistency. 
  8.23     (f) The office shall review the operation of information 
  8.24  systems by state agencies and provide advice and assistance to 
  8.25  assure that these systems are operated efficiently and 
  8.26  continually meet the standards and guidelines established by the 
  8.27  office.  The standards and guidelines must emphasize uniformity 
  8.28  that encourages information interchange, open systems 
  8.29  environments, and portability of information whenever 
  8.30  practicable and consistent with an agency's authority and 
  8.31  chapter 13.  The office, in consultation with the 
  8.32  intergovernmental information systems advisory council and the 
  8.33  legislative reference library, shall recommend specific 
  8.34  standards and guidelines for each state agency within a time 
  8.35  period fixed by the office in regard to the following: 
  8.36     (1) establishment of methodologies and systems directed at 
  9.1   reducing and ultimately eliminating redundant storage of data; 
  9.2      (2) establishment of data retention schedules, disaster 
  9.3   recovery plans and systems, security systems, and procedural 
  9.4   safeguards concerning privacy of data; and 
  9.5      (3) establishment of information sales systems that utilize 
  9.6   licensing and royalty agreements to the greatest extent 
  9.7   possible, together with procedures for agency denial of requests 
  9.8   for licenses or royalty agreements by commercial users or 
  9.9   resellers of the information.  Section 3.751 does not apply to 
  9.10  those licensing and royalty agreements, and the agreements must 
  9.11  include provisions that section 3.751 does not apply and that 
  9.12  the state is immune from liability under the agreement. 
  9.13     (g) The office shall conduct a comprehensive review at 
  9.14  least every three years of the information systems investments 
  9.15  that have been made by state agencies and higher education 
  9.16  institutions.  The review must include recommendations on any 
  9.17  information systems applications that could be provided in a 
  9.18  more cost-beneficial manner by an outside source.  The office 
  9.19  must report the results of its review to the legislature and the 
  9.20  governor. 
  9.21     (h) The office shall report to the legislature by January 
  9.22  15 of each year on progress in implementing paragraph (f), 
  9.23  clauses (1) to (3). 
  9.24     Sec. 6.  [237A.06] [GOVERNMENT INFORMATION ACCESS.] 
  9.25     Subdivision 1.  [DUTIES.] The office of technology, in 
  9.26  consultation with the intergovernmental information systems 
  9.27  advisory council, shall: 
  9.28     (1) coordinate statewide efforts by units of state and 
  9.29  local government to plan for and develop a system for providing 
  9.30  access to government information; 
  9.31     (2) make recommendations to facilitate coordination and 
  9.32  assistance of demonstration projects; 
  9.33     (3) advise units of state and local government on provision 
  9.34  of government data to citizens and businesses; and 
  9.35     (4) explore ways and means to improve citizen and business 
  9.36  access to public data, including implementation of technological 
 10.1   improvements. 
 10.2      Subd. 2.  [APPROVAL OF STATE AGENCY INITIATIVES.] A state 
 10.3   agency shall coordinate with the office when implementing a new 
 10.4   initiative for providing electronic access to state government 
 10.5   information. 
 10.6      Subd. 3.  [CAPITAL INVESTMENT.] No state agency may propose 
 10.7   or implement a capital investment plan for a state office 
 10.8   building unless: 
 10.9      (1) the agency has developed a plan for increasing 
 10.10  telecommuting by employees who would normally work in the 
 10.11  building, or the agency has prepared a statement describing why 
 10.12  such a plan is not practicable; and 
 10.13     (2) the plan or statement has been reviewed by the office. 
 10.14     Sec. 7.  [237A.07] [DATA.] 
 10.15     The following data received, compiled, or created by the 
 10.16  office are classified as nonpublic data under chapter 13: 
 10.17     (1) financial data, statistics, and similar confidential or 
 10.18  proprietary information of persons or businesses furnished to 
 10.19  the office, including credit reports, financial statements, 
 10.20  statements of net worth, income tax returns, either personal or 
 10.21  corporate, and any other business and personal financial 
 10.22  records; or 
 10.23     (2) security information, trade secret information, or 
 10.24  labor relations information, as defined in section 13.37, 
 10.25  subdivision 1, disclosed to the office or employees of the 
 10.26  office. 
 10.27                             ARTICLE 2
 10.28     Section 1.  Minnesota Statutes 1996, section 16B.46, is 
 10.29  amended to read: 
 10.30     16B.46 [TELECOMMUNICATION INFORMATION AND 
 10.31  TELECOMMUNICATIONS SYSTEMS; POWERS.] 
 10.32     The commissioner shall supervise and control consult with 
 10.33  the Minnesota office of technology in the operation of all 
 10.34  centralized state information and telecommunication systems 
 10.35  facilities including any transmission, emission, or reception of 
 10.36  signs, signals, writing, images, and sounds or intelligence of 
 11.1   any nature by wire, radio, optical, or other electromagnetic 
 11.2   systems the MNet and intertechnologies facilities.  Nothing in 
 11.3   this section modifies, amends, or abridges any powers and duties 
 11.4   presently vested in or imposed upon the commissioner of 
 11.5   transportation or the commissioner of public safety relating to 
 11.6   telecommunications facilities or the commissioner of 
 11.7   transportation relating only to radio air navigation facilities 
 11.8   or other air navigation facilities.  
 11.9      Sec. 2.  Minnesota Statutes 1996, section 16B.465, 
 11.10  subdivision 1, is amended to read: 
 11.11     Subdivision 1.  [CREATION.] The statewide MNet leases 
 11.12  private telecommunications access routing system provides 
 11.13  resources to provide voice, data, video, and other 
 11.14  telecommunications transmission services to state agencies; 
 11.15  educational institutions, including public schools as defined in 
 11.16  section 120.05, nonpublic, church or religious organization 
 11.17  schools which provide instruction in compliance with sections 
 11.18  120.101 to 120.102, and private colleges; public corporations; 
 11.19  and state political subdivisions.  It is not a telephone company 
 11.20  for purposes of chapter 237.  It shall not resell or sublease 
 11.21  any services or facilities to nonpublic entities except it may 
 11.22  serve private schools and colleges, but it may aggregate demand 
 11.23  for public-private cooperatives.  The commissioner has the 
 11.24  responsibility for planning, development, and operations of a 
 11.25  statewide telecommunications access routing system operating 
 11.26  MNet in order to provide cost-effective telecommunications 
 11.27  transmission services to system MNet users. 
 11.28     Sec. 3.  Minnesota Statutes 1996, section 16B.465, 
 11.29  subdivision 3, is amended to read: 
 11.30     Subd. 3.  [DUTIES.] The commissioner, after consultation 
 11.31  with the council Minnesota office of technology, shall: 
 11.32     (1) provide lease voice, data, video, and other 
 11.33  telecommunications transmission services to for the state and to 
 11.34  political subdivisions through an account in the 
 11.35  intertechnologies revolving fund; 
 11.36     (2) manage vendor relationships, network function, and 
 12.1   capacity planning in order to be responsive to the needs of the 
 12.2   system users; 
 12.3      (3) set rates and fees for services; 
 12.4      (4) approve contracts relating to the system; 
 12.5      (5) in consultation with the Minnesota office of 
 12.6   technology, develop the system plan, including plans for the 
 12.7   phasing of its implementation and maintenance of the initial 
 12.8   system, and the annual program and fiscal plans for the system; 
 12.9   and 
 12.10     (6) in consultation with the Minnesota office of 
 12.11  technology, develop a plan for interconnection of the network 
 12.12  with private colleges and public and private schools in the 
 12.13  state. 
 12.14     Sec. 4.  Minnesota Statutes 1996, section 16B.465, 
 12.15  subdivision 4, is amended to read: 
 12.16     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
 12.17  require request the participation of state agencies, the state 
 12.18  board of education, and the board of trustees of the Minnesota 
 12.19  state colleges and universities and may request the 
 12.20  participation of the board of regents of the University of 
 12.21  Minnesota, in the planning and implementation of the network to 
 12.22  provide interconnective technologies.  The commissioner shall 
 12.23  establish reimbursement rates in cooperation with the 
 12.24  commissioner of finance to be billed to participating agencies 
 12.25  and educational institutions sufficient to cover the operating, 
 12.26  maintenance, and administrative costs of the system. 
 12.27     (b) A direct appropriation made to an educational 
 12.28  institution for usage costs associated with the STARS MNet 
 12.29  network must only be used by the educational institution for 
 12.30  payment of usage costs of the network as billed by the 
 12.31  commissioner of administration.  
 12.32     Sec. 5.  Minnesota Statutes 1996, section 16B.465, 
 12.33  subdivision 6, is amended to read: 
 12.34     Subd. 6.  [REVOLVING FUND.] Money appropriated for the 
 12.35  statewide telecommunications access routing system MNet and fees 
 12.36  for telecommunications services must be deposited in an account 
 13.1   in the intertechnologies revolving fund.  Money in the account 
 13.2   is appropriated annually to the commissioner to operate 
 13.3   telecommunications services. 
 13.4      Sec. 6.  [REPEALER.] 
 13.5      Minnesota Statutes 1996, sections 15.95; 15.96; 16B.40; 
 13.6   16B.41; and 16B.43, are repealed. 
 13.7      Sec. 7.  [TRANSFERS.] 
 13.8      In accordance with Minnesota Statutes 1996, sections 15.039 
 13.9   and 43A.045, the budget and positions of the information policy 
 13.10  office, with incumbents, excluding the public information policy 
 13.11  analysis division, are transferred to the office of technology, 
 13.12  effective July 1, 1997. 
 13.13     Sec. 8.  [INSTRUCTION TO REVISOR.] 
 13.14     The revisor is instructed to change all statutory 
 13.15  references to the information policy office and the government 
 13.16  information access council to the office of technology. 
 13.17     Sec. 9.  [EFFECTIVE DATE.] 
 13.18     Articles 1 and 2 are effective July 1, 1997.