1.1 	A bill for an act
1.2 	relating to state government; improving access to budget information by members 
1.3 	of the legislature; specifying the development of budget recommendations and 
1.4 	requiring state agencies to provide information; establishing a subcommittee of 
1.5 	the Legislative Commission on Planning and Fiscal Policy; requiring disclosure 
1.6 	of status of fiscal note requests; providing for appeal of fiscal note conclusions; 
1.7 	modifying state budget requirements; incorporating Minnesota Milestones 
1.8 	goals and indicators in budget preparation; requiring commissioner of finance 
1.9 	to adjust for projected inflation in forecasting state expenditures; requiring a 
1.10 	forecast of cash flow for the general fund; providing deadline for modifying 
1.11 	budget after February forecast; specifying format for detailed budget estimates of 
1.12 	expenditures; imposing deadline for notice of deficiency requests; providing a 
1.13 	process to increase the budget reserve; requiring state agencies with certain 
1.14 	information and telecommunications technology projects to register with the 
1.15 	Office of Enterprise Technology and requiring the office to monitor progress 
1.16 	on the projects; requiring the Office of Enterprise Technology to report to the 
1.17 	legislature regarding its approval process for state agency technology requests 
1.18 	and assistance provided to state agencies in developing agency information 
1.19 	systems plans; providing additional whistleblower protection to state employees; 
1.20 	providing additional duties for the Sesquicentennial Commission; establishing 
1.21 	a working group; eliminating obsolete requirements;amending Minnesota 
1.22 	Statutes 2006, sections 3.885, subdivisions 4, 5, by adding subdivisions; 3.98, 
1.23 	subdivision 4, by adding a subdivision; 3.987, subdivision 1, as amended; 13.605, 
1.24 	subdivision 1; 16A.10, subdivisions 1, 1c, 2, by adding a subdivision; 16A.103, 
1.25 	subdivisions 1a, 1b; 16A.11, subdivisions 1, 3, by adding a subdivision; 16E.01, 
1.26 	subdivision 3; 16E.03, subdivision 1; 16E.04, subdivision 2; Minnesota Statutes 
1.27 	2007 Supplement, sections 16A.152, subdivision 2; 181.932, subdivision 1; 
1.28 	Laws 2005, First Special Session chapter 1, article 4, section 121, subdivision 
1.29 	4, as amended; proposing coding for new law in Minnesota Statutes, chapter 
1.30 	16A; repealing Minnesota Statutes 2006, sections 16A.152, subdivision 1b; 
1.31 	16A.1522, subdivision 4.
1.32 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.33 	Section 1. Minnesota Statutes 2006, section 3.885, subdivision 4, is amended to read:
1.34 		Subd. 4.Agencies to cooperate. All departments, agencies, and education 
1.35 	institutions of the executive and judicial branches must comply with a request of the 
2.1 	commission for information, data, estimates, and statistics on the funding revenue 
2.2 	operations, and other affairs of the department, agency, or education institution. The 
2.3 	commissioner of finance and the commissioner of revenue shall provide the commission 
2.4 	with full and free access to information, data, estimates, and statistics in the possession of 
2.5 	the Finance and Revenue Departments on the state budget, revenue, expenditures, and 
2.6 	tax expenditures. The agency response to a commission request must be in the format 
2.7 	specified by the commission in the request, if any.

2.8 	Sec. 2. Minnesota Statutes 2006, section 3.885, subdivision 5, is amended to read:
2.9 		Subd. 5.Duties. (a) The commission shall:
2.10 	(1) provide the legislature with research and analysis of current and projected state 
2.11 	revenue, state expenditures, and state tax expenditures;
2.12 	(2) provide the legislature with a report analyzing the governor's proposed levels of 
2.13 	revenue and expenditures for biennial budgets submitted under section 16A.11 as well as 
2.14 	other supplemental budget submittals to the legislature by the governor; 
2.15 	(3) provide an analysis of the impact of the governor's proposed revenue and 
2.16 	expenditure plans for the next biennium;
2.17 	(4) conduct research on matters of economic and fiscal policy and report to the 
2.18 	legislature on the result of the research;
2.19 	(5) provide economic reports and studies on the state of the state's economy, 
2.20 	including trends and forecasts for consideration by the legislature;
2.21 	(6) conduct budget and tax studies and provide general fiscal and budgetary 
2.22 	information;
2.23 	(7) review and make recommendations on the operation of state programs in order 
2.24 	to appraise the implementation of state laws regarding the expenditure of funds and to 
2.25 	recommend means of improving their efficiency;
2.26 	(8) recommend to the legislature changes in the mix of revenue sources for programs, 
2.27 	in the percentage of state expenditures devoted to major programs, and in the role of the 
2.28 	legislature in overseeing state government expenditures and revenue projections;
2.29 	(9) make a continuing study and investigation of the building needs of the 
2.30 	government of the state of Minnesota, including, but not limited to the following: the 
2.31 	current and future requirements of new buildings, the maintenance of existing buildings, 
2.32 	rehabilitating and remodeling of old buildings, the planning for administrative offices, and 
2.33 	the exploring of methods of financing building and related costs; and
2.34 	(10) develop and make requests to state agencies for budget information and 
2.35 	recommendations; and
3.1 	(11) conduct a continuing study of state-local finance, analyzing and making 
3.2 	recommendations to the legislature on issues including levels of state support for 
3.3 	political subdivisions, basic levels of local need, balances of local revenues and options, 
3.4 	relationship of local taxes to individuals' ability to pay, and financial reporting by political 
3.5 	subdivisions. In conducting this study, the commission shall consult with the governor, 
3.6 	the staff of executive branch agencies, and the governor's Advisory Commission on 
3.7 	State-Local Relations.
3.8 	(b) In performing its duties under paragraph (a), the commission shall consider, 
3.9 	among other things:
3.10 	(1) the relative dependence on state tax revenues, federal funds, and user fees 
3.11 	to support state-funded programs, and whether the existing mix of revenue sources is 
3.12 	appropriate, given the purposes of the programs;
3.13 	(2) the relative percentages of state expenditures that are devoted to major programs 
3.14 	such as education, assistance to local government, aid to individuals, state agencies and 
3.15 	institutions, and debt service; and
3.16 	(3) the role of the legislature in overseeing state government expenditures, including 
3.17 	legislative appropriation of money from the general fund, legislative appropriation of 
3.18 	money from funds other than the general fund, state agency receipt of money into 
3.19 	revolving and other dedicated funds and expenditure of money from these funds, and 
3.20 	state agency expenditure of federal funds.
3.21 	(c) The commission's recommendations must consider the long-term needs of the 
3.22 	state. The recommendations must not duplicate work done by standing committees of 
3.23 	the senate and house of representatives.
3.24 	The commission shall report to the legislature on its activities and recommendations 
3.25 	by January 15 of each odd-numbered year.
3.26 	The commission shall provide the public with printed and electronic copies of 
3.27 	reports and information for the legislature. Copies must be provided at the actual cost 
3.28 	of furnishing each copy.

3.29 	Sec. 3. Minnesota Statutes 2006, section 3.885, is amended by adding a subdivision to 
3.30 	read:
3.31 		Subd. 10.Budget development. The commission or appropriate committee of 
3.32 	the house of representatives or senate may develop budget recommendations to present 
3.33 	to the legislature. If the commission or committees proceed with the development of 
3.34 	budget recommendations, state agencies must provide information to the commission or 
3.35 	committees as requested by the commission to develop those recommendations. That 
4.1 	information includes the base budget, information on how the base budget is determined 
4.2 	and how it is allocated, recommendations from agency staff for changes in the base level 
4.3 	appropriations to improve agency operations and efficiency or to improve or increase 
4.4 	efficiency of programs operated by the agency, and responses to proposals for reductions 
4.5 	in agency budgets.

4.6 	Sec. 4. Minnesota Statutes 2006, section 3.885, is amended by adding a subdivision to 
4.7 	read:
4.8 		Subd. 11.Subcommittee on Government Accountability. The commission must 
4.9 	form a Subcommittee on Government Accountability under section 3.3056 to review 
4.10 	recommendations from the commissioner of finance under section 16A.10, subdivision 1c, 
4.11 	and to review recommendations from the commissioners of finance and administration on 
4.12 	how to improve the use of Minnesota Milestones and other statewide goals and indicators 
4.13 	in state planning and budget documents. The subcommittee shall consider testimony from 
4.14 	representatives from the following organizations and agencies: (1) nonprofit organizations 
4.15 	involved in the preparation of Minnesota Milestones; (2) the University of Minnesota 
4.16 	and other higher education institutions; (3) the Department of Finance and other state 
4.17 	agencies; and (4) other legislators. The subcommittee shall report to the commission by 
4.18 	February 1 of each odd-numbered year with long-range recommendations for the further 
4.19 	implementation and uses of Minnesota Milestones and other government accountability 
4.20 	improvements.

4.21 	Sec. 5. Minnesota Statutes 2006, section 3.98, subdivision 4, is amended to read:
4.22 		Subd. 4.Uniform procedure. The commissioner of finance shall prescribe a 
4.23 	uniform procedure to govern the departments and agencies of the state in complying 
4.24 	with the requirements of this section. The uniform procedure must include a system 
4.25 	for posting the date a fiscal note was requested, the requested completion date, and the 
4.26 	estimated completion date, as well as the display of those dates on the front page of each 
4.27 	completed fiscal note.

4.28 	Sec. 6. Minnesota Statutes 2006, section 3.98, is amended by adding a subdivision to 
4.29 	read:
4.30 		Subd. 5.Appeals. Disputes over the conclusions of a fiscal note for a bill that are 
4.31 	not otherwise resolved may be appealed to the Legislative Commission on Planning and 
4.32 	Fiscal Policy established in section 3.885. To initiate an appeal, the chair of the house of 
4.33 	representatives Committee on Ways and Means or the chair of the senate Committee on 
5.1 	Finance shall submit a written notice of appeal to the chair of the Legislative Commission 
5.2 	on Planning and Fiscal Policy and to the commissioner of finance, with a copy of the 
5.3 	notice also provided to the chief author of the bill. The notice of appeal must identify the 
5.4 	analytical conclusions being contested and the reasons for contesting those conclusions. 
5.5 	The chair of the Legislative Commission on Planning and Fiscal Policy shall schedule a 
5.6 	meeting of the commission to be held no later than five days after the notice of appeal 
5.7 	was submitted. The commission may agree to alter the conclusions of a fiscal note. Any 
5.8 	revised conclusions are considered the final estimate of the fiscal impact of the bill for the 
5.9 	current legislative session, provided that the fiscal elements of the bill remain unchanged 
5.10 	from those considered by the commission.

5.11 	Sec. 7. Minnesota Statutes 2006, section 3.987, subdivision 1, as amended by Laws 
5.12 	2008, chapter 154, article 16, section 1, is amended to read:
5.13 		Subdivision 1. Local impact notes. The commissioner of finance shall coordinate 
5.14 	the development of a local impact note for any proposed legislation introduced after June 
5.15 	30, 1997, upon request of the chair or the ranking minority member of either legislative 
5.16 	Tax or Finance Committee, or the house of representatives Committee on Ways and 
5.17 	Means. Upon receipt of a request to prepare a local impact note, the commissioner must 
5.18 	notify the authors of the proposed legislation that the request has been made. The local 
5.19 	impact note must be made available to the public upon request. If the action is among the 
5.20 	exceptions listed in section 3.988, a local impact note need not be requested nor prepared. 
5.21 	The commissioner shall make a reasonable and timely estimate of the local fiscal impact 
5.22 	on each type of political subdivision that would result from the proposed legislation. 
5.23 	The commissioner of finance may require any political subdivision or the commissioner 
5.24 	of an administrative agency of the state to supply in a timely manner any information 
5.25 	determined to be necessary to determine local fiscal impact. The political subdivision, 
5.26 	its representative association, or commissioner shall convey the requested information to 
5.27 	the commissioner of finance with a signed statement to the effect that the information is 
5.28 	accurate and complete to the best of its ability. The political subdivision, its representative 
5.29 	association, or commissioner, when requested, shall update its determination of local 
5.30 	fiscal impact based on actual cost or revenue figures, improved estimates, or both. 
5.31 	Upon completion of the note, the commissioner must provide a copy to the authors 
5.32 	of the proposed legislation, as well as to the chair and ranking minority member of all 
5.33 	committees to which a bill is referred. 

5.34 	Sec. 8. Minnesota Statutes 2006, section 13.605, subdivision 1, is amended to read:
6.1 		Subdivision 1.Legislative and budget proposal data. (a) Definition. As used 
6.2 	in this section, "state administration" means the governor's office, the Department of 
6.3 	Finance, and any state agency that is under the direct control of the governor. 
6.4 	(b)  Classifications. Legislative and budget proposals, including preliminary 
6.5 	drafts, that are created, collected, or maintained by the state administration are protected 
6.6 	nonpublic data. After until the budget is presented to the legislature by the state 
6.7 	administration, supporting data, including agency requests, and are public data after the 
6.8 	budget is presented to the legislature. Supporting data do not include preliminary drafts.
6.9 	Before the budget is presented to the legislature, legislative and budget proposals must be 
6.10 	made available to legislators and legislative staff upon request, but must be treated by the 
6.11 	legislators and legislative staff as protected nonpublic data. The state administration may 
6.12 	disclose any of the data within the state administration and to the public at any time if 
6.13 	disclosure would aid the administration in considering and preparing its proposals. 

6.14 	Sec. 9. Minnesota Statutes 2006, section 16A.10, subdivision 1, is amended to read:
6.15 		Subdivision 1.Budget format. In each even-numbered calendar year the 
6.16 	commissioner shall prepare budget forms and instructions for all agencies, including 
6.17 	guidelines for reporting agency performance measures, subject to the approval of the 
6.18 	governor.  In addition to review required under subdivision 1c, the commissioner shall 
6.19 	request and receive advisory recommendations from the chairs of the senate Finance 
6.20 	Committee and house of representatives Ways and Means Committee before adopting a 
6.21 	format for the biennial budget document. By June 15, the commissioner shall send the 
6.22 	proposed budget forms to the appropriations and finance committees. The committees 
6.23 	have until July 15 to give the commissioner their advisory recommendations on possible 
6.24 	improvements. To facilitate this consultation, the commissioner shall establish a working 
6.25 	group consisting of executive branch staff and designees of the chairs of the senate 
6.26 	Finance and house of representatives Ways and Means Committees. The commissioner 
6.27 	must involve this group in all stages of development of budget forms and instructions. The 
6.28 	budget format must show actual expenditures and receipts for the three most recent fiscal 
6.29 	year years, estimated expenditures and receipts for the current fiscal year, and estimates 
6.30 	for each fiscal year of the next biennium. Estimated expenditures must be submitted in 
6.31 	writing with information that supports the estimated expenditure, classified by funds and 
6.32 	character of expenditures, and may be subclassified by individual agency departments and 
6.33 	programs and activities. Agency revenue estimates must show how the estimates were 
6.34 	made and what factors were used. Receipts must be classified by funds, programs, and 
7.1 	activities. Expenditure and revenue estimates must be based on the law in existence
7.2 	effect at the time the estimates are prepared.

7.3 	Sec. 10. Minnesota Statutes 2006, section 16A.10, subdivision 1c, is amended to read:
7.4 		Subd. 1c.Performance measures for change items. For each change item in the 
7.5 	budget proposal requesting new or increased funding, the budget document must present 
7.6 	proposed performance measures that can be used to determine if the new or increased 
7.7 	funding is accomplishing its goals. To the extent possible, each budget change item must 
7.8 	identify relevant Minnesota Milestones and other statewide goals and indicators related to 
7.9 	the proposed initiative. By June 15 of each even-numbered year, the commissioner must 
7.10 	report to the Subcommittee on Government Accountability established under section 
7.11 	3.885, subdivision 11, regarding the format and process to be used for the presentation and 
7.12 	selection of Minnesota Milestones and other statewide goals and indicators. By July 15 of 
7.13 	each even-numbered year, the subcommittee must recommend the format and process for 
7.14 	use in the preparation of the budget documents.

7.15 	Sec. 11. Minnesota Statutes 2006, section 16A.10, subdivision 2, is amended to read:
7.16 		Subd. 2.By October 15 and November 30 Filing budget estimates. By October 
7.17 	15 of each even-numbered year, an agency must file the following with the commissioner:
7.18 	(1) budget estimates for the most recent and current fiscal years;
7.19 	(2) its upcoming biennial budget estimates;
7.20 	(3) a comprehensive and integrated statement of agency missions and outcome 
7.21 	and performance measures; and
7.22 	(4) a concise explanation of any planned changes in the level of services or new 
7.23 	activities.
7.24 	The commissioner shall prepare and file the budget estimates for an agency failing 
7.25 	to file them. By November 30,Each department, official, or agency shall, no later 
7.26 	than the first day of October preceding the convening of the legislature, file with the 
7.27 	commissioner and the finance committees of the legislature: (1) its estimates in the form 
7.28 	provided, including a full explanation of its requests for any increased appropriations 
7.29 	and for the expansion of services and the addition of new activities; (2) a statement of 
7.30 	the work accomplished during the preceding biennium and the work proposed to be 
7.31 	done for the next biennium; (3) a list of all employees, their titles, and their salaries; 
7.32 	and (4) a comprehensive and integrated statement of agency missions and outcome and 
7.33 	performance measures. The commissioner shall prepare estimates for all departments, 
7.34 	boards, and agencies that fail to file requests. The commissioner shall send the final budget 
8.1 	format, agency budget estimates for the next biennium, and copies of the filed material to 
8.2 	the Ways and Means and Finance Committees, except that the commissioner shall not be 
8.3 	required to transmit information that identifies executive branch budget decision items.

8.4 	Sec. 12. Minnesota Statutes 2006, section 16A.10, is amended by adding a subdivision 
8.5 	to read:
8.6 		Subd. 2a.Agency budget requests. Whenever a general solicitation for budget 
8.7 	recommendations is communicated to state agencies by the state administration, a copy of 
8.8 	that communication and the agency responses to that request must also be provided to 
8.9 	the chair of the senate Finance Committee and the chair of the house Ways and Means 
8.10 	Committee. All agency budget requests, whether or not included in the governor's budget 
8.11 	recommendations, must be documented in a form developed by the commissioner under 
8.12 	subdivision 1 and submitted as part of the detailed budget estimates under section 16A.11, 
8.13 	subdivision 3.

8.14 	Sec. 13. Minnesota Statutes 2006, section 16A.103, subdivision 1a, is amended to read:
8.15 		Subd. 1a.Forecast parameters. The forecast must assume the continuation of 
8.16 	current laws and reasonable estimates of projected growth in the national and state 
8.17 	economies and affected populations. Revenue must be estimated for all sources provided 
8.18 	for in current law. Expenditures must be estimated for all obligations imposed by law and 
8.19 	those projected to occur as a result of inflation and other variables outside the control of 
8.20 	the legislature. Expenditure estimates must not include an allowance for inflation. A 
8.21 	general inflation estimate must not include inflation on debt service or on programs for 
8.22 	which a statutory growth factor is already included in the forecast.

8.23 	Sec. 14. Minnesota Statutes 2006, section 16A.103, subdivision 1b, is amended to read:
8.24 		Subd. 1b.Forecast variable. In determining the rate of inflation, the application 
8.25 	of inflation, the amount of state bonding as it affects debt service, the calculation of 
8.26 	investment income, and the other variables to be included in the expenditure part of the 
8.27 	forecast, the commissioner must consult with the chairs and lead minority members of the 
8.28 	senate State Government Finance Committee and the house Ways and Means Committee, 
8.29 	and legislative fiscal staff. This consultation must occur at least three weeks before the 
8.30 	forecast is to be released. No later than two weeks prior to the release of the forecast, 
8.31 	the commissioner must inform the chairs and lead minority members of the senate 
8.32 	State Government Finance Committee and the house Ways and Means Committee, and 
8.33 	legislative fiscal staff of any changes in these variables from the previous forecast.

9.1 	Sec. 15. [16A.107] CASH FLOW FORECAST.
9.2 	Within three weeks after the November forecast of state revenue and expenditures 
9.3 	under section 16A.103, the commissioner shall deliver to the governor and the legislature 
9.4 	a forecast of cash flow for the general fund, showing the expected maximum and minimum 
9.5 	cash balance in the fund for each month of the forecast period.

9.6 	Sec. 16. Minnesota Statutes 2006, section 16A.11, subdivision 1, is amended to read:
9.7 		Subdivision 1.When. The governor shall submit a three-part budget to the 
9.8 	legislature. Parts one and two, the budget message and detailed operating budget, must 
9.9 	be submitted by the fourth Tuesday in January in each odd-numbered year. However, 
9.10 	in a year following the election of a governor who had not been governor the previous 
9.11 	year, parts one and two must be submitted by the third Tuesday in February. Part three, 
9.12 	the detailed recommendations as to capital expenditure, must be submitted as follows: 
9.13 	agency capital budget requests by July  15 of each odd-numbered year, and governor's 
9.14 	recommendations by January 15 of each even-numbered year. Detailed recommendations 
9.15 	as to information technology expenditure must be submitted as part of the detailed 
9.16 	operating budget. Information technology recommendations must include projects to be 
9.17 	funded during the next biennium and planning estimates for an additional two bienniums. 
9.18 	Information technology recommendations must specify purposes of the funding such as 
9.19 	infrastructure, hardware, software, or training. Any modifications to the operating budget 
9.20 	made necessary by the forecast in February of an odd-numbered year must be submitted 
9.21 	within two weeks after the forecast.

9.22 	Sec. 17. Minnesota Statutes 2006, section 16A.11, subdivision 3, is amended to read:
9.23 		Subd. 3.Part two: detailed budget. (a) Part two of the budget, the detailed 
9.24 	budget estimates both of expenditures and revenues, must contain any statements on the 
9.25 	financial plan which the governor believes desirable or which may be required by the 
9.26 	legislature. The detailed estimates shall include the budget request of each department 
9.27 	in an agency arranged in tabular form so it may readily be compared with the governor's 
9.28 	budget arranged in tabular form for each department or agency.
9.29 	(b) Tables listing expenditures for the next biennium must show the appropriation 
9.30 	base for each year in column form broken down by appropriation allotments at budget 
9.31 	activity level relative to proposed appropriation and appropriation allotment levels by 
9.32 	budget activity. The appropriation base is the amount appropriated for the second year 
9.33 	of the current biennium. The tables must separately show any adjustments to the base 
9.34 	required by current law or policies of the commissioner of finance. For forecasted 
10.1 	programs, the tables must also show the amount of the forecast adjustments, based on the 
10.2 	most recent forecast prepared by the commissioner of finance under section 16A.103. Any 
10.3 	appropriation change requested by an agency or a department within an agency must be 
10.4 	submitted in writing and include information that supports the requested change. For all 
10.5 	programs, the tables must show the agency requests, the amount of appropriation changes 
10.6 	recommended by the governor, after adjustments to the base and forecast adjustments, 
10.7 	and the total recommendation of the governor for that year. 
10.8 	(c) The detailed estimates must include a separate line listing the total cost of 
10.9 	professional and technical service contracts for the prior biennium and the projected costs 
10.10 	of those contracts for the current and upcoming biennium. They must also include a 
10.11 	summary of the personnel employed by the agency, reflected as full-time equivalent 
10.12 	positions.
10.13 	(d) The detailed estimates for internal service funds must include the number of 
10.14 	full-time equivalents by program; detail on any loans from the general fund, including 
10.15 	dollar amounts by program; proposed investments in technology or equipment of $100,000 
10.16 	or more; an explanation of any operating losses or increases in retained earnings; and a 
10.17 	history of the rates that have been charged, with an explanation of any rate changes and 
10.18 	the impact of the rate changes on affected agencies.
10.19 	(e) The detailed estimates must provide a spending trend analysis by program 
10.20 	showing at least the three most recent years of actual spending, or as many years of actual 
10.21 	spending as are available for new programs.

10.22 	Sec. 18. Minnesota Statutes 2006, section 16A.11, is amended by adding a subdivision 
10.23 	to read:
10.24 		Subd. 8.Deficiency requests. By January 15 of each year, the commissioner 
10.25 	of finance must notify the chair and ranking minority member of the senate Finance 
10.26 	Committee and the chair and ranking minority member of the house Ways and Means 
10.27 	Committee of any state agency requests to eliminate budget shortfalls likely to occur 
10.28 	before the end of the legislative session.

10.29 	Sec. 19. Minnesota Statutes 2007 Supplement, section 16A.152, subdivision 2, is 
10.30 	amended to read:
10.31 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
10.32 	fund revenues and expenditures, the commissioner of finance determines that there will be 
10.33 	a positive unrestricted budgetary general fund balance at the close of the biennium, the 
11.1 	commissioner of finance must allocate money to the following accounts and purposes in 
11.2 	priority order:
11.3 	(1) the cash flow account established in subdivision 1 until that account reaches 
11.4 	$350,000,000;
11.5 	(2) the budget reserve account established in subdivision 1a until that account 
11.6 	reaches $653,000,000 an amount equal to five percent of biennial general fund 
11.7 	expenditures and transfers for the current biennium;
11.8 	(3) the amount necessary to increase the aid payment schedule for school district 
11.9 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
11.10 	nearest tenth of a percent without exceeding the amount available and with any remaining 
11.11 	funds deposited in the budget reserve; and
11.12 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
11.13 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
11.14 	123B.75, subdivision 5, paragraph (b), and Laws 2003, First Special Session chapter 9, 
11.15 	article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section 
11.16 	20, by the same amount.
11.17 	(b) The amounts necessary to meet the requirements of this section are appropriated 
11.18 	from the general fund within two weeks after the forecast is released or, in the case of 
11.19 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
11.20 	schedules otherwise established in statute.
11.21 	(c) To the extent that a positive unrestricted budgetary general fund balance is 
11.22 	projected, appropriations under this section must be made before section 16A.1522 takes 
11.23 	effect.
11.24 	(d) The commissioner of finance shall certify the total dollar amount of the 
11.25 	reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The 
11.26 	commissioner of education shall increase the aid payment percentage and reduce the 
11.27 	property tax shift percentage by these amounts and apply those reductions to the current 
11.28 	fiscal year and thereafter.

11.29 	Sec. 20. Minnesota Statutes 2006, section 16E.01, subdivision 3, is amended to read:
11.30 		Subd. 3.Duties. (a) The office shall:
11.31 	(1) manage the efficient and effective use of available federal, state, local, and 
11.32 	public-private resources to develop statewide information and telecommunications 
11.33 	technology systems and services and its infrastructure;
11.34 	(2) approve state agency and intergovernmental information and telecommunications 
11.35 	technology systems and services development efforts involving state or intergovernmental 
12.1 	funding, including federal funding, provide information to the legislature regarding 
12.2 	projects reviewed, and recommend projects for inclusion in the governor's budget under 
12.3 	section 16A.11;
12.4 	(3) ensure cooperation and collaboration among state and local governments in 
12.5 	developing intergovernmental information and telecommunications technology systems 
12.6 	and services, and define the structure and responsibilities of a representative governance 
12.7 	structure;
12.8 	(4) cooperate and collaborate with the legislative and judicial branches in the 
12.9 	development of information and communications systems in those branches;
12.10 	(5) continue the development of North Star, the state's official comprehensive online 
12.11 	service and information initiative;
12.12 	(6) promote and collaborate with the state's agencies in the state's transition to an 
12.13 	effectively competitive telecommunications market;
12.14 	(7) collaborate with entities carrying out education and lifelong learning initiatives 
12.15 	to assist Minnesotans in developing technical literacy and obtaining access to ongoing 
12.16 	learning resources;
12.17 	(8) promote and coordinate public information access and network initiatives, 
12.18 	consistent with chapter 13, to connect Minnesota's citizens and communities to each 
12.19 	other, to their governments, and to the world;
12.20 	(9) promote and coordinate electronic commerce initiatives to ensure that Minnesota 
12.21 	businesses and citizens can successfully compete in the global economy;
12.22 	(10) manage and promote the regular and periodic reinvestment in the information 
12.23 	and telecommunications technology systems and services infrastructure so that state and 
12.24 	local government agencies can effectively and efficiently serve their customers;
12.25 	(11) facilitate the cooperative development of and ensure compliance with standards 
12.26 	and policies for information and telecommunications technology systems and services, 
12.27 	electronic data practices and privacy, and electronic commerce among international, 
12.28 	national, state, and local public and private organizations;
12.29 	(12) eliminate unnecessary duplication of existing information and 
12.30 	telecommunications technology systems and services provided by other public and private 
12.31 	organizations while building on the existing governmental, educational, business, health 
12.32 	care, and economic development infrastructures;
12.33 	(13) identify, sponsor, develop, and execute shared information and 
12.34 	telecommunications technology projects and ongoing operations; and
12.35 	(14) ensure overall security of the state's information and technology systems and 
12.36 	services.
13.1 	(b) The chief information officer, in consultation with the commissioner of 
13.2 	finance, must determine when it is cost-effective for agencies to develop and use shared 
13.3 	information and telecommunications technology systems and services for the delivery of 
13.4 	electronic government services. The chief information officer may require agencies to 
13.5 	use shared information and telecommunications technology systems and services. The 
13.6 	chief information officer shall establish reimbursement rates in cooperation with the 
13.7 	commissioner of finance to be billed to agencies and other governmental entities sufficient 
13.8 	to cover the actual development, operating, maintenance, and administrative costs of 
13.9 	the shared systems. The methodology for billing may include the use of interagency 
13.10 	agreements, or other means as allowed by law.
13.11 	(c) A state agency that has an information and telecommunications technology 
13.12 	project with a total expected project cost of more than $1,000,000, whether funded as part 
13.13 	of the biennial budget or by any other means, shall register with the office by submitting 
13.14 	basic project startup documentation, as specified by the chief information officer in both 
13.15 	format and content, before any project funding is requested or committed and before 
13.16 	the project commences. State agency project leaders must demonstrate that the project 
13.17 	will be properly managed, provide updates to the project documentation as changes are 
13.18 	proposed, and regularly report on the current status of the project on a schedule agreed to 
13.19 	with the chief information officer.
13.20 	(d) The chief information officer shall monitor progress on any active information 
13.21 	and telecommunications technology project with a total expected project cost of more than 
13.22 	$5,000,000 and report on the performance of the project in comparison with the plans for 
13.23 	the project in terms of time, scope, and budget. The chief information officer may conduct 
13.24 	an independent project audit of the project. The audit analysis and evaluation of the 
13.25 	projects subject to paragraph (c) must be presented to agency executive sponsors, the 
13.26 	project governance bodies, and the chief information officer. All reports and responses 
13.27 	must become part of the project record.
13.28 	(e) For any active information and telecommunications technology project with a 
13.29 	total expected project cost of more than $10,000,000, the state agency must perform an 
13.30 	annual independent audit that conforms to published project audit principles promulgated 
13.31 	by the office.
13.32 	(f) The chief information officer shall report by January 15 of each year to the 
13.33 	chairs and ranking minority members of the legislative committees and divisions with 
13.34 	jurisdiction over the office regarding projects the office has reviewed under paragraph (a), 
13.35 	clause (2). The report must include the reasons for the determinations made in the review 
13.36 	of each project and a description of its current status.

14.1 	Sec. 21. Minnesota Statutes 2006, section 16E.03, subdivision 1, is amended to read:
14.2 		Subdivision 1.Definitions. For the purposes of chapter 16E, the following terms 
14.3 	have the meanings given them.
14.4 	(a) "Information and telecommunications technology systems and services" means 
14.5 	all computing and telecommunications hardware and software, the activities undertaken 
14.6 	to secure that hardware and software, and the activities undertaken to acquire, transport, 
14.7 	process, analyze, store, and disseminate information electronically. "Information and 
14.8 	telecommunications technology systems and services" includes all proposed expenditures 
14.9 	for computing and telecommunications hardware and software, security for that hardware 
14.10 	and software, and related consulting or other professional services.
14.11 	(b) "Information and telecommunications technology project" means an effort to 
14.12 	acquire or produce information and telecommunications technology systems and services.
14.13 	(c) "Telecommunications" means voice, video, and data electronic transmissions 
14.14 	transported by wire, wireless, fiber-optic, radio, or other available transport technology.
14.15 	(d) "Cyber security" means the protection of data and systems in networks connected 
14.16 	to the Internet.
14.17 	(e) "State agency" means an agency in the executive branch of state government and 
14.18 	includes the Minnesota Office of Higher Education, but does not include the Minnesota 
14.19 	State Colleges and Universities unless specifically provided elsewhere in this chapter.
14.20 	(f) "Total expected project cost" includes direct staff costs, all supplemental contract 
14.21 	staff and vendor costs, and costs of hardware and software development or purchase. 
14.22 	Breaking a project into several phases does not affect the cost threshold, which must be 
14.23 	computed based on the full cost of all phases.

14.24 	Sec. 22. Minnesota Statutes 2006, section 16E.04, subdivision 2, is amended to read:
14.25 		Subd. 2.Responsibilities. (a) In addition to other activities prescribed by law, the 
14.26 	office shall carry out the duties set out in this subdivision.
14.27 	(b) The office shall develop and establish a state information architecture to ensure 
14.28 	that state agency development and purchase of information and communications systems, 
14.29 	equipment, and services is designed to ensure that individual agency information systems 
14.30 	complement and do not needlessly duplicate or conflict with the systems of other agencies. 
14.31 	When state agencies have need for the same or similar public data, the chief information 
14.32 	officer, in coordination with the affected agencies, shall manage the most efficient and 
14.33 	cost-effective method of producing and storing data for or sharing data between those 
14.34 	agencies. The development of this information architecture must include the establishment 
15.1 	of standards and guidelines to be followed by state agencies. The office shall ensure 
15.2 	compliance with the architecture.
15.3 	(c) The office shall assist state agencies in the planning and management of 
15.4 	information systems so that an individual information system reflects and supports the 
15.5 	state agency's mission and the state's requirements and functions. The office shall review 
15.6 	and approve agency technology plans to ensure consistency with enterprise information 
15.7 	and telecommunications technology strategy. By January 15 of each year, the chief 
15.8 	information officer must report to the chairs and the ranking minority members of 
15.9 	the legislative committees and divisions with jurisdiction over the office regarding the 
15.10 	assistance provided under this paragraph. The report must include a listing of agencies 
15.11 	that have developed or are developing plans under this paragraph.
15.12 	(d) The office shall review and approve agency requests for funding for the 
15.13 	development or purchase of information systems equipment or software before the 
15.14 	requests may be included in the governor's budget.
15.15 	(e) The office shall review major purchases of information systems equipment to:
15.16 	(1) ensure that the equipment follows the standards and guidelines of the state 
15.17 	information architecture;
15.18 	(2) ensure the agency's proposed purchase reflects a cost-effective policy regarding 
15.19 	volume purchasing; and
15.20 	(3) ensure that the equipment is consistent with other systems in other state agencies 
15.21 	so that data can be shared among agencies, unless the office determines that the agency 
15.22 	purchasing the equipment has special needs justifying the inconsistency.
15.23 	(f) The office shall review the operation of information systems by state agencies 
15.24 	and ensure that these systems are operated efficiently and securely and continually meet 
15.25 	the standards and guidelines established by the office. The standards and guidelines must 
15.26 	emphasize uniformity that is cost-effective for the enterprise, that encourages information 
15.27 	interchange, open systems environments, and portability of information whenever 
15.28 	practicable and consistent with an agency's authority and chapter 13.
15.29 	(g) The office shall conduct a comprehensive review at least every three years of 
15.30 	the information systems investments that have been made by state agencies and higher 
15.31 	education institutions. The review must include recommendations on any information 
15.32 	systems applications that could be provided in a more cost-beneficial manner by an outside 
15.33 	source. The office must report the results of its review to the legislature and the governor.

15.34 	Sec. 23. Minnesota Statutes 2007 Supplement, section 181.932, subdivision 1, is 
15.35 	amended to read:
16.1 		Subdivision 1.Prohibited action. An employer shall not discharge, discipline, 
16.2 	threaten, otherwise discriminate against, or penalize an employee regarding the employee's 
16.3 	compensation, terms, conditions, location, or privileges of employment because:
16.4 	(a) the employee, or a person acting on behalf of an employee, in good faith, reports 
16.5 	a violation or suspected violation of any federal or state law or rule adopted pursuant to 
16.6 	law to an employer or to any governmental body or law enforcement official;
16.7 	(b) the employee is requested by a public body or office to participate in an 
16.8 	investigation, hearing, inquiry;
16.9 	(c) the employee refuses an employer's order to perform an action that the employee 
16.10 	has an objective basis in fact to believe violates any state or federal law or rule or 
16.11 	regulation adopted pursuant to law, and the employee informs the employer that the order 
16.12 	is being refused for that reason; 
16.13 	(d) the employee, in good faith, reports a situation in which the quality of health care 
16.14 	services provided by a health care facility, organization, or health care provider violates a 
16.15 	standard established by federal or state law or a professionally recognized national clinical 
16.16 	or ethical standard and potentially places the public at risk of harm; or
16.17 	(e) a public employee communicates the findings of a scientific or technical study 
16.18 	that the employee, in good faith, believes to be truthful and accurate, including reports to a 
16.19 	governmental body or law enforcement official; or
16.20 	(f) a state employee communicates to a legislator or constitutional officer 
16.21 	information that the employee, in good faith, believes to be truthful and accurate regarding 
16.22 	ways to improve state services.
16.23 	The disclosures protected pursuant to this section do not authorize the disclosure of data 
16.24 	otherwise protected by law.

16.25 	Sec. 24. Laws 2005, First Special Session chapter 1, article 4, section 121, subdivision 
16.26 	4, as amended by Laws 2007, chapter 29, section 1, subdivision 4, is amended to read:
16.27 		Subd. 4. Duties. The commission shall have the following duties: 
16.28 	(1) to present to the governor and legislature a plan for grants to pay for capital 
16.29 	improvements on Minnesota's historic public and private buildings, to be known as 
16.30 	sesquicentennial grants; 
16.31 	(2) to seek funding for activities to celebrate the 150th anniversary of statehood, and 
16.32 	to form partnerships with private parties to further this mission; 
16.33 	(3) to present an annual report to the governor and legislature outlining progress 
16.34 	made towards the celebration of the sesquicentennial; and
17.1 	(4) to encourage all activities celebrating the sesquicentennial to be as energy 
17.2 	efficient as practicable; and
17.3 	(5) to use the results of the Sesquicentennial Plan for Our Future project to help 
17.4 	provide feedback on the  selection and use of Minnesota Milestones goals and indicators.

17.5 	Sec. 25. WORKING GROUP FOR MINNESOTA MILESTONES PROCESS 
17.6 	AND INDICATORS.
 17.7 	By June 1, 2008, the commissioner of finance shall convene a working group of 
17.8 	state agency staff, legislative staff, and other interested parties to assist in the preparation 
17.9 	of recommendations for the Minnesota Milestones report required under Minnesota 
17.10 	Statutes, section 16A.10, subdivision 1c. The working group shall consider collaborative 
17.11 	opportunities with community organizations and higher education institutions. The 
17.12 	working group expires 30 days after the commissioner has submitted recommendations 
17.13 	required under Minnesota Statutes, section 16A.10, subdivision 1c.

17.14 	Sec. 26.  REPEALER.
 17.15 	Minnesota Statutes 2006, sections 16A.152, subdivision 1b; and 16A.1522, 
17.16 	subdivision 4, are repealed.

17.17 	Sec. 27. EFFECTIVE DATE.
 17.18 	This act is effective the day following final enactment.