1.1 	A bill for an act
1.2 	relating to state government; changing certain finance and budget provisions; 
1.3 	adding the Office of MN.IT Services to certain provisions and changing certain 
1.4 	MN.IT provisions; exempting the state information network from certain term 
1.5 	limitations on contracts;amending Minnesota Statutes 2012, sections 3.30, 
1.6 	subdivision 2; 3.3005, subdivision 2, by adding subdivisions; 3.736, subdivision 
1.7 	7; 3.989, subdivision 2; 3D.14; 4.07, subdivision 2; 4A.01, subdivision 3; 
1.8 	4A.02; 15.06, subdivision 1; 15.76, subdivisions 1, 2, 3; 16A.056, subdivision 
1.9 	7; 16A.095; 16A.10, subdivisions 1, 1c; 16A.127, subdivision 4; 16A.96, 
1.10 	subdivision 2; 16E.01, subdivision 1; 16E.015, by adding a subdivision; 
1.11 	16E.04, subdivision 2; 16E.18, subdivision 8; 43A.08, subdivision 1a; 299C.65, 
1.12 	subdivision 1; 403.36, subdivision 1; 477A.03, subdivision 2b; Laws 2011, 
1.13 	First Special Session chapter 10, article 4, section 7; repealing Minnesota 
1.14 	Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9; 16A.103, 
1.15 	subdivision 4; 16A.106; 43A.31, subdivision 2; 325G.415.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	Section 1. Minnesota Statutes 2012, section 3.30, subdivision 2, is amended to read:
1.18 		Subd. 2.Members; duties. The majority leader of the senate or a designee, the 
1.19 	chair of the senate Committee on Finance, and the chair of the senate Division of Finance 
1.20 	responsible for overseeing the items being considered by the commission, the speaker of 
1.21 	the house or a designee, the chair of the house of representatives Committee on Ways and 
1.22 	Means, and the chair of the appropriate finance committee, or division of the house of 
1.23 	representatives committee responsible for overseeing the items being considered by the 
1.24 	commissioner, constitute the Legislative Advisory Commission. The division chair of 
1.25 	the Finance Committee in the senate and the division chair of the appropriate finance 
1.26 	committee or division in the house of representatives shall rotate according to the items 
1.27 	being considered by the commission. If any of the members elect not to serve on the 
1.28 	commission, the house of which they are members, if in session, shall select some other 
2.1 	member for the vacancy. If the legislature is not in session, vacancies in the house of 
2.2 	representatives membership of the commission shall be filled by the last speaker of the 
2.3 	house or, if the speaker is not available, by the last chair of the house of representatives 
2.4 	Rules Committee, and by the last senate Committee on Committees or other appointing 
2.5 	authority designated by the senate rules in case of a senate vacancy. The commissioner 
2.6 	of management and budget shall be secretary of the commission and keep a permanent 
2.7 	record and minutes of its proceedings, which are public records. The commissioner of 
2.8 	management and budget shall transmit, under section 3.195, a report to the next legislature 
2.9 	ofshall post to the agency Web site all actions of the commission. Members shall receive 
2.10 	traveling and subsistence expenses incurred attending meetings of the commission. The 
2.11 	commission shall meet from time to time upon the call of the governor or upon the 
2.12 	call of the secretary at the request of two or more of its members. A recommendation 
2.13 	of the commission must be made at a meeting of the commission unless a written 
2.14 	recommendation is signed by all the members entitled to vote on the item.

2.15 	Sec. 2. Minnesota Statutes 2012, section 3.3005, subdivision 2, is amended to read:
2.16 		Subd. 2.Governor's request to legislature. A state agency shall not expend money 
2.17 	received by it under federal law for any purpose unless a request to spend federal money 
2.18 	from that source for that purpose in that fiscal year biennium has been submitted by the 
2.19 	governor to the legislature as a part of a budget request submitted during or within ten days 
2.20 	before the start of a regular legislative session, or unless specifically authorized by law or 
2.21 	as provided by this section. A budget request submitted to the legislature according to this 
2.22 	subdivision must be submitted at least 20 days before the deadline set by the legislature 
2.23 	for legislative budget committees to act on finance bills.

2.24 	Sec. 3. Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision 
2.25 	to read:
2.26 		Subd. 7.Approvals for both years of biennium. Approval of the spending of 
2.27 	federal funds under subdivision 2 is for the full term of the availability of the federal 
2.28 	funds, up to the end of the biennium that begins July 1 following the submission of the 
2.29 	request. Approval of the spending of federal funds under subdivision 3, 3a, 3b, or 6 is for 
2.30 	the full term of the availability of the federal funds, up to the end of the current biennium. 
2.31 	Approval of the spending for federal funds under subdivision 4 is for the fiscal year for 
2.32 	which the urgency exists. 

3.1 	Sec. 4. Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision 
3.2 	to read:
3.3 		Subd. 8.Request contents. A request to spend federal funds submitted under this 
3.4 	section must include the name of the federal grant, the federal agency from which the 
3.5 	funds are available, a federal identification number, a brief description of the purpose of 
3.6 	the grant, the amounts expected by fiscal year, an indication if any state match is required, 
3.7 	an indication if there is a maintenance of effort requirement, and the number of full-time 
3.8 	equivalent positions needed to implement the grant.

3.9 	Sec. 5. Minnesota Statutes 2012, section 3.736, subdivision 7, is amended to read:
3.10 		Subd. 7.Payment. A state agency, including an entity defined as part of the 
3.11 	state in section 3.732, subdivision 1, clause (1), incurring a tort claim judgment or 
3.12 	settlement obligation or whose employees acting within the scope of their employment 
3.13 	incur the obligation shall seek approval to make payment by submitting a written request 
3.14 	to the commissioner of management and budget from the commissioner or director 
3.15 	of that agency. The request shall contain a description of the tort claim that causes 
3.16 	the request, specify the amount of the obligation and be accompanied by copies of 
3.17 	judgments, settlement agreements or other documentation relevant to the obligation for 
3.18 	which the agency seeks payment. Upon receipt of the request and review of the claim, 
3.19 	the commissioner of management and budgetor director shall determine the proper 
3.20 	appropriation from which to make payment. If there is enough money in an appropriation 
3.21 	or combination of appropriations to the agency for its general operations and management 
3.22 	to pay the claim without unduly hindering the operation of the agency, the commissioner 
3.23 	or director shall direct that payment be made from that source. Claims relating to activities 
3.24 	paid for by appropriations of dedicated receipts shall be paid from those appropriations if 
3.25 	practicable. On determining that an agency has sufficient money in these appropriations 
3.26 	to pay only part of a claim, the commissioner of management and budget shall pay the 
3.27 	remainder of the claim from the money appropriated to the commissioner for the purpose. 
3.28 	On determining that the agency does not have enough money to pay any part of the claim, 
3.29 	the commissioner shall pay all of the claim from money appropriated to the commissioner 
3.30 	for the purpose. Payment shall be made only upon receipt of a written release by the 
3.31 	claimant in a form approved by the attorney general, or the person designated as the 
3.32 	university attorney, as the case may be.
3.33 	No attachment or execution shall issue against the state.

3.34 	Sec. 6. Minnesota Statutes 2012, section 3.989, subdivision 2, is amended to read:
4.1 		Subd. 2.Compilation of local impact notes. The commissioner of management 
4.2 	and budget shall prepare by September 1 of each even-numbered year a compilation 
4.3 	of key impact notes requested by the legislature during the previous biennial session 
4.4 	as provided in section 3.987. The commissioner may consult with local government 
4.5 	representatives and legislative fiscal staff to determine which local impact notes were key
4.6 	 post to the agency Web site a copy of all local impact notes.

4.7 	Sec. 7. Minnesota Statutes 2012, section 3D.14, is amended to read:
4.8 	3D.14 CONTINUATION BY LAW.
4.9 	(a) The following departments and agencies must be reviewed according to the 
4.10 	schedule in section 3D.21, but do not expire according to that schedule, unless another law 
4.11 	is enacted providing that the entity does expire:
4.12 	(1) a department or agency listed in section 15.01, or section15.06, subdivision 1 
4.13 	or 1a; and
4.14 	(2) the Office of Higher Education, Explore Minnesota Tourism, and the Public 
4.15 	Utilities Commission.
4.16 	(b) During the regular session immediately before the sunset of a state agency or an 
4.17 	advisory committee that expires under section 3D.21, the legislature may enact legislation 
4.18 	to continue the agency or advisory committee for a period not to exceed 12 years. This 
4.19 	chapter does not prohibit the legislature from:
4.20 	(1) terminating a state agency or advisory committee subject to this chapter at a date 
4.21 	earlier than that provided in this chapter; or
4.22 	(2) considering any other legislation relative to a state agency or advisory committee 
4.23 	subject to this chapter.

4.24 	Sec. 8. Minnesota Statutes 2012, section 4.07, subdivision 2, is amended to read:
4.25 		Subd. 2.State agency named to act instead. The governor may designate a state 
4.26 	agency or agencies to act for the governor in applying for, receiving, and accepting federal 
4.27 	funds under the provisions of subdivision 1. Such designation of a state department or 
4.28 	agency shall be filed in the Office of the Secretary of State.

4.29 	Sec. 9. Minnesota Statutes 2012, section 4A.01, subdivision 3, is amended to read:
4.30 		Subd. 3.Report. The commissioner must submit a report to the governor and chairs 
4.31 	and ranking minority members of the senate and house of representatives committees 
4.32 	with jurisdiction on state government finance by January 15 of each year that provides 
4.33 	economic, social, and environmental demographic information to assist public and elected 
5.1 	officials with long-term management decisions. The report must identify and assess 
5.2 	the information important to understanding the state's two-, ten-, and 50-year outlook, 
5.3 	including the budget implications for those time periods. The report must include the 
5.4 	demographic forecast required by section 4A.02, paragraph (e), and information to assist 
5.5 	with the preparation of the milestones report required by section 4A.11, and may include 
5.6 	policy recommendations based upon the information and assessment provided.

5.7 	Sec. 10. Minnesota Statutes 2012, section 4A.02, is amended to read:
5.8 	4A.02 STATE DEMOGRAPHER.
5.9 	(a) The commissioner shall appoint a state demographer. The demographer must be 
5.10 	professionally competent in demography and must possess demonstrated ability based 
5.11 	upon past performance.
5.12 	(b) The demographer shall:
5.13 	(1) continuously gather and develop demographic data relevant to the state;
5.14 	(2) design and test methods of research and data collection;
5.15 	(3) periodically prepare population projections for the state and designated regions 
5.16 	and periodically prepare projections for each county or other political subdivision of the 
5.17 	state as necessary to carry out the purposes of this section;
5.18 	(4) review, comment on, and prepare analysis of population estimates and 
5.19 	projections made by state agencies, political subdivisions, other states, federal agencies, or 
5.20 	nongovernmental persons, institutions, or commissions;
5.21 	(5) serve as the state liaison with the United States Bureau of the Census, coordinate 
5.22 	state and federal demographic activities to the fullest extent possible, and aid the 
5.23 	legislature in preparing a census data plan and form for each decennial census;
5.24 	(6) compile an annual study of population estimates on the basis of county, regional, 
5.25 	or other political or geographical subdivisions as necessary to carry out the purposes of 
5.26 	this section and section 4A.03;
5.27 	(7) by January 1 of each year, issue a report to the legislature containing an analysis 
5.28 	of the demographic implications of the annual population study and population projections;
5.29 	(8) prepare maps for all counties in the state, all municipalities with a population 
5.30 	of 10,000 or more, and other municipalities as needed for census purposes, according to 
5.31 	scale and detail recommended by the United States Bureau of the Census, with the maps 
5.32 	of cities showing precinct boundaries;
5.33 	(9) prepare an estimate of population and of the number of households for each 
5.34 	governmental subdivision for which the Metropolitan Council does not prepare an annual 
6.1 	estimate, and convey the estimates to the governing body of each political subdivision 
6.2 	by June 1 of each year;
6.3 	(10) direct, under section 414.01, subdivision 14, and certify population and 
6.4 	household estimates of annexed or detached areas of municipalities or towns after being 
6.5 	notified of the order or letter of approval by the chief administrative law judge of the 
6.6 	State Office of Administrative Hearings;
6.7 	(11) prepare, for any purpose for which a population estimate is required by law 
6.8 	or needed to implement a law, a population estimate of a municipality or town whose 
6.9 	population is affected by action under section 379.02 or 414.01, subdivision 14; and
6.10 	(12) prepare an estimate of average household size for each statutory or home rule 
6.11 	charter city with a population of 2,500 or more by June 1 of each year.
6.12 	(c) A governing body may challenge an estimate made under paragraph (b) by filing 
6.13 	their specific objections in writing with the state demographer by June 24. If the challenge 
6.14 	does not result in an acceptable estimate, the governing body may have a special census 
6.15 	conducted by the United States Bureau of the Census. The political subdivision must 
6.16 	notify the state demographer by July 1 of its intent to have the special census conducted. 
6.17 	The political subdivision must bear all costs of the special census. Results of the special 
6.18 	census must be received by the state demographer by the next April 15 to be used in that 
6.19 	year's June 1 estimate to the political subdivision under paragraph (b).
6.20 	(d) The state demographer shall certify the estimates of population and household 
6.21 	size to the commissioner of revenue by July 15 each year, including any estimates still 
6.22 	under objection.
6.23 	(e) The state demographer shall release a demographic forecast in conjunction with 
6.24 	the commissioner of management and budget and the November state economic forecast.
6.25 	(f) The state demographer may contract for the development of data and research 
6.26 	required under this chapter, including, but not limited to, population estimates and 
6.27 	projections, the preparation of maps, and other estimates.

6.28 	Sec. 11. Minnesota Statutes 2012, section 15.06, subdivision 1, is amended to read:
6.29 		Subdivision 1.Applicability. This section applies to the following departments 
6.30 	or agencies: the Departments of Administration, Agriculture, Commerce, Corrections, 
6.31 	Education, Employment and Economic Development, Health, Human Rights, Labor and 
6.32 	Industry, Management and Budget, Natural Resources, Public Safety, Human Services, 
6.33 	Revenue, Transportation, and Veterans Affairs; the Housing Finance and Pollution Control 
6.34 	Agencies; the Office of Commissioner of Iron Range Resources and Rehabilitation;
6.35 	 the Office of MN.IT Services; the Bureau of Mediation Services; and their successor 
7.1 	departments and agencies. The heads of the foregoing departments or agencies are 
7.2 	"commissioners."

7.3 	Sec. 12. Minnesota Statutes 2012, section 15.76, subdivision 1, is amended to read:
7.4 		Subdivision 1.Program established. The state agency value initiative (SAVI) 
7.5 	program is established to encourage state agencies to identify cost-effective and efficiency 
7.6 	measures in agency programs and operations that result in cost savings for the state. 
7.7 	All state agencies, including Minnesota State Colleges and Universities,not separately 
7.8 	authorized to carry forward operating funds may participate in this program.

7.9 	Sec. 13. Minnesota Statutes 2012, section 15.76, subdivision 2, is amended to read:
7.10 		Subd. 2.Retained savings. (a) In order to encourage innovation and creative 
7.11 	cost savings by state employees, upon approval of the commissioner of management 
7.12 	and budget, 50 percent of any appropriations for agency operations that remain unspent 
7.13 	at the end of a biennium because of unanticipated innovation, efficiencies, or creative 
7.14 	cost-savings may be carried forward and retained by the agency to fund specific agency 
7.15 	proposals or projects. Agencies choosing to spend retained savings funds must ensure that 
7.16 	project expenditures do not create future obligations beyond the amounts available from 
7.17 	the retained savings. The retained savings must be used only to fund projects that directly 
7.18 	support the performance of the agency's mission. This section does not restrict authority 
7.19 	granted by other law to carry forward money for a different period or for different purposes.
7.20 	(b) This section supersedes any contrary provision of section 16A.28.

7.21 	Sec. 14. Minnesota Statutes 2012, section 15.76, subdivision 3, is amended to read:
7.22 		Subd. 3.Special peer review panel; Review process. (a) Each participating agency 
7.23 	must organize a peer review panel that will determine which proposal or project receives 
7.24 	funding from the SAVI program. The peer review panel must be comprised of department 
7.25 	employees who are credited with cost-savings initiatives and department managers. The 
7.26 	ratio between managers and department employees must be balanced.
7.27 	(b) An agency may spend money for a project recommended for funding by the 
7.28 	peer review panel after:
7.29 	(1) the agency has posted notice of spending for the proposed project on the agency 
7.30 	Web site for at least 30 days; and
7.31 	(2) the commissioner of management and budget has approved spending money 
7.32 	from the SAVI account for the project.; and
8.1 	(c) Before approving a project, (3) the commissioner of management and budget 
8.2 	must submit the request to has notified the Legislative Advisory Commission for its 
8.3 	review and recommendation comment. Upon receiving a request from the commissioner, 
8.4 	the Legislative Advisory Commission shall post notice of the request on a legislative 
8.5 	Web site for at least 30 days. Failure of the commission to make a recommendation 
8.6 	within this 30-day period is considered a negative recommendation. A recommendation 
8.7 	of the commission must be made at a meeting of the commission unless a written 
8.8 	recommendation is signed by all the members entitled to vote on the item.

8.9 	Sec. 15. Minnesota Statutes 2012, section 16A.056, subdivision 7, is amended to read:
8.10 		Subd. 7.Retention of data. The database required under this section must include 
8.11 	information beginning with fiscal year 2010 2012 appropriations and must retain data 
8.12 	for at least ten years.

8.13 	Sec. 16. Minnesota Statutes 2012, section 16A.095, is amended to read:
8.14 	16A.095 STATE BUDGET SYSTEM.
8.15 		Subdivision 1.Rules and instructions. The commissioner shall make rules and 
8.16 	instructions for budget preparation. They must deal with classifying expenditures and with 
8.17 	the content and submission of budget requests and appropriation performance measures
8.18 	 for each budget activity.
8.19 		Subd. 2.Budget improvements. The commissioner may choose executive agencies 
8.20 	to test improvements in the budget system. The commissioner shall recommend required 
8.21 	legislation to install improvements in the budget system for all executive agencies that 
8.22 	submit budget information in the system. The budget system must classify expenditures by 
8.23 	programs and budget activities and, to the greatest extent practicable, emphasize alternative 
8.24 	approaches in program development and criteria to evaluate and measure performance.
8.25 		Subd. 2a.Mutual cooperation; due regard. Executive agencies must cooperate 
8.26 	with the commissioner in making a preparing the budget. The budget must meet 
8.27 	the commissioner's requirements while giving due regard to the executive agencies' 
8.28 	requirements.

8.29 	Sec. 17. Minnesota Statutes 2012, section 16A.10, subdivision 1, is amended to read:
8.30 		Subdivision 1.Budget format. In each even-numbered calendar year the 
8.31 	commissioner shall prepare budget forms and instructions for all agencies, including 
8.32 	guidelines for reporting agency performance measures, subject to the approval of the 
8.33 	governor. The commissioner shall request and receive advisory recommendations from 
9.1 	the chairs of the senate Finance Committee and house of representatives Ways and 
9.2 	Means Committee before adopting a format for the biennial budget document. By June 
9.3 	15, the commissioner shall send the proposed budget forms to the appropriations and 
9.4 	finance committees. The committees have until July 15 to give the commissioner their 
9.5 	advisory recommendations on possible improvements. To facilitate this consultation, the 
9.6 	commissioner shall establish a working group consisting of executive branch staff and 
9.7 	designees of the chairs of the senate Finance and house of representatives Ways and Means 
9.8 	Committees. The commissioner must involve this group in all stages of development of 
9.9 	budget forms and instructions. The budget format must show actual expenditures and 
9.10 	receipts for the most recent fiscal year, estimated expenditures and receipts for the current 
9.11 	fiscal year, and estimates for each fiscal year of the next biennium. Estimated expenditures 
9.12 	must be classified by funds and character of expenditures and may be subclassified by 
9.13 	programs and activities. Agency revenue estimates must have supporting documentation 
9.14 	to show how the estimates were made and what factors were used. Receipts must be 
9.15 	classified by funds, programs, and activities. Expenditure and revenue estimates must be 
9.16 	based on the law in existence at the time the estimates are prepared.

9.17 	Sec. 18. Minnesota Statutes 2012, section 16A.10, subdivision 1c, is amended to read:
9.18 		Subd. 1c.Performance measures for change items. For each change item in the 
9.19 	budget proposal requesting new or increased funding, the budget document must present 
9.20 	proposed performance measures that can be used to determine if the new or increased 
9.21 	funding is accomplishing its goals. To the extent possible, each budget change item 
9.22 	must identify relevant Minnesota Milestones and other statewide goals and indicators 
9.23 	related to the proposed initiative. The commissioner must report to the Subcommittee on 
9.24 	Government Accountability established under section 3.885, subdivision 10, regarding the 
9.25 	format to be used for the presentation and selection of Minnesota Milestones and other 
9.26 	statewide goals and indicators.

9.27 	Sec. 19. Minnesota Statutes 2012, section 16A.127, subdivision 4, is amended to read:
9.28 		Subd. 4.Federal proposals. Agency applications for federal money shall include 
9.29 	necessary submissions to recover both statewide and agency indirect costs. A copy of the 
9.30 	indirect cost submission must be submitted to the commissioner for review. An agency 
9.31 	indirect cost plan is unnecessary if the commissioner determines that the costs incurred in 
9.32 	preparing and maintaining it exceed the benefit received by the state. If less than the entire 
9.33 	agency proposal is federally approved, the commissioner may accept reimbursement of 
10.1 	less than all of the federal receipts. If no federal funds are approved for indirect costs, 
10.2 	the agency must document that fact to the commissioner.

10.3 	Sec. 20. Minnesota Statutes 2012, section 16A.96, subdivision 2, is amended to read:
10.4 		Subd. 2.Authority. (a) Subject to the limitations of this subdivision, the 
10.5 	commissioner of management and budget may sell and issue appropriation bonds of the 
10.6 	state under this section for the purposes of the Minnesota pay-for-performance program 
10.7 	established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to 
10.8 	a special appropriation bond proceeds account in the state treasury. Net income from 
10.9 	investment of the proceeds, as estimated by the commissioner, must be credited to the 
10.10 	special appropriation bond proceeds account.
10.11 	(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of 
10.12 	the commissioner, are necessary to provide sufficient funds for achieving the purposes 
10.13 	authorized as provided under paragraph (a), and pay debt service, pay costs of issuance, 
10.14 	make deposits to reserve funds, pay the costs of credit enhancement, or make payments 
10.15 	under other agreements entered into under paragraph (d); provided, however, that bonds 
10.16 	issued and unpaid shall not exceed $10,000,000 in principal amount, excluding refunding 
10.17 	bonds sold and issued under subdivision 4. During the biennium ending June 30, 2013,
10.18 	 The commissioner may sell and issue bonds only in an amount that the commissioner 
10.19 	determines will result in principal and interest payments less than the amount of savings to 
10.20 	be generated through pay-for-performance contracts under section 16A.94. For programs 
10.21 	achieving savings under a pay-for-performance contract, the commissioner must reduce 
10.22 	general fund appropriations by at least the amount of principal and interest payments on 
10.23 	bonds issued under this section.
10.24 	(c) Appropriation bonds may be issued in one or more series on the terms and 
10.25 	conditions the commissioner determines to be in the best interests of the state, but the term 
10.26 	on any series of bonds may not exceed 20 years.
10.27 	(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any 
10.28 	time thereafter, so long as the appropriation bonds are outstanding, the commissioner 
10.29 	may enter into agreements and ancillary arrangements relating to the appropriation 
10.30 	bonds, including but not limited to trust indentures, liquidity facilities, remarketing or 
10.31 	dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 
10.32 	reimbursement agreements, indexing agreements, or interest exchange agreements. Any 
10.33 	payments made or received according to the agreement or ancillary arrangement shall be 
10.34 	made from or deposited as provided in the agreement or ancillary arrangement. The 
11.1 	determination of the commissioner included in an interest exchange agreement that the 
11.2 	agreement relates to an appropriation bond shall be conclusive.

11.3 	Sec. 21. Minnesota Statutes 2012, section 16E.01, subdivision 1, is amended to read:
11.4 		Subdivision 1.Creation; chief information officer. The Office of Enterprise 
11.5 	Technology MN.IT Services, referred to in this chapter as the "office," is an agency in 
11.6 	the executive branch headed by a commissioner, who also is the state chief information 
11.7 	officer. The appointment of the chief information officer commissioner is subject to the 
11.8 	advice and consent of the senate under section 15.066.

11.9 	Sec. 22. Minnesota Statutes 2012, section 16E.015, is amended by adding a subdivision 
11.10 	to read:
11.11 		Subd. 5.State information network. "State information network" means 
11.12 	optical fiber facilities and terminal equipment used in the delivery of high-speed 
11.13 	telecommunications services.

11.14 	Sec. 23. Minnesota Statutes 2012, section 16E.04, subdivision 2, is amended to read:
11.15 		Subd. 2.Responsibilities. (a) In addition to other activities prescribed by law, the 
11.16 	office shall carry out the duties set out in this subdivision.
11.17 	(b) The office shall develop and establish a state information architecture to ensure:
11.18 	(1) that state agency development and purchase of information and communications 
11.19 	systems, equipment, and services is designed to ensure that individual agency information 
11.20 	systems complement and do not needlessly duplicate or conflict with the systems of other 
11.21 	agencies; and
11.22 	(2) enhanced public access to data can be provided consistent with standards 
11.23 	developed under section 16E.05, subdivision 4.
11.24 	When state agencies have need for the same or similar public data, the chief information 
11.25 	officer, in coordination with the affected agencies, shall manage the most efficient and 
11.26 	cost-effective method of producing and storing data for or sharing data between those 
11.27 	agencies. The development of this information architecture must include the establishment 
11.28 	of standards and guidelines to be followed by state agencies. The office shall ensure 
11.29 	compliance with the architecture.
11.30 	(c) The office shall, in cooperation with state agencies, plan and manage the 
11.31 	development and improvement of information systems so that an individual information 
11.32 	system reflects and supports the state agency's mission and the state's requirements 
11.33 	and functions. The office shall review and approve agency technology plans to ensure 
12.1 	consistency with enterprise information and telecommunications technology strategy. By 
12.2 	January 15 of each year, the chief information officer must report to the chairs and the 
12.3 	ranking minority members of the legislative committees and divisions with jurisdiction over 
12.4 	the office regarding the assistance provided under this paragraph. The report must include 
12.5 	a listing of agencies that have developed or are developing plans under this paragraph.
12.6 	(d) The office shall review and approve agency requests for funding for the 
12.7 	development or purchase of information systems equipment or software before the 
12.8 	requests may be included in the governor's budget.
12.9 	(e) The office shall review and approve agency requests for grant funding that have 
12.10 	an information and technology component.
12.11 	(f) The office shall review major purchases of information systems equipment to:
12.12 	(1) ensure that the equipment follows the standards and guidelines of the state 
12.13 	information architecture;
12.14 	(2) ensure the agency's proposed purchase reflects a cost-effective policy regarding 
12.15 	volume purchasing; and
12.16 	(3) ensure that the equipment is consistent with other systems in other state agencies 
12.17 	so that data can be shared among agencies, unless the office determines that the agency 
12.18 	purchasing the equipment has special needs justifying the inconsistency.
12.19 	(g) The office shall review the operation of information systems by state agencies 
12.20 	and ensure that these systems are operated efficiently and securely and continually meet 
12.21 	the standards and guidelines established by the office. The standards and guidelines must 
12.22 	emphasize uniformity that is cost-effective for the enterprise, that encourages information 
12.23 	interchange, open systems environments, and portability of information whenever 
12.24 	practicable and consistent with an agency's authority and chapter 13.
12.25 	(h) The office shall conduct a comprehensive review at least every three years of 
12.26 	the information systems investments that have been made by state agencies and higher 
12.27 	education institutions. The review must include recommendations on any information 
12.28 	systems applications that could be provided in a more cost-beneficial manner by an outside 
12.29 	source. The office must report the results of its review to the legislature and the governor.

12.30 	Sec. 24. Minnesota Statutes 2012, section 16E.18, subdivision 8, is amended to read:
12.31 		Subd. 8.Exemption. The system state information network  is exempt from the 
12.32 	five-year five and ten-year limitation on contracts set by sections 16C.05, subdivision 2, 
12.33 	paragraph (b), 16C.08, subdivision 3, clause (5), and16C.09, clause (6), and section 
12.34 	16C.03, subdivision 17. A contract compliance review must be performed by the office on 
13.1 	a five-year basis for any contract that has a total term greater than five years. The review 
13.2 	must detail any compliance or performance issues on the part of the contractor.

13.3 	Sec. 25. Minnesota Statutes 2012, section 43A.08, subdivision 1a, is amended to read:
13.4 		Subd. 1a.Additional unclassified positions. Appointing authorities for the 
13.5 	following agencies may designate additional unclassified positions according to this 
13.6 	subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; 
13.7 	Education; Employment and Economic Development; Explore Minnesota Tourism; 
13.8 	Management and Budget; Health; Human Rights; Labor and Industry; Natural Resources; 
13.9 	Public Safety; Human Services; Revenue; Transportation; and Veterans Affairs; the 
13.10 	Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of 
13.11 	Investment; the Office of Administrative Hearings; the Office of MN.IT Services; the 
13.12 	Offices of the Attorney General, Secretary of State, and State Auditor; the Minnesota State 
13.13 	Colleges and Universities; the Minnesota Office of Higher Education; the Perpich Center 
13.14 	for Arts Education; and the Minnesota Zoological Board.
13.15 	A position designated by an appointing authority according to this subdivision must 
13.16 	meet the following standards and criteria:
13.17 	(1) the designation of the position would not be contrary to other law relating 
13.18 	specifically to that agency;
13.19 	(2) the person occupying the position would report directly to the agency head or 
13.20 	deputy agency head and would be designated as part of the agency head's management 
13.21 	team;
13.22 	(3) the duties of the position would involve significant discretion and substantial 
13.23 	involvement in the development, interpretation, and implementation of agency policy;
13.24 	(4) the duties of the position would not require primarily personnel, accounting, or 
13.25 	other technical expertise where continuity in the position would be important;
13.26 	(5) there would be a need for the person occupying the position to be accountable to, 
13.27 	loyal to, and compatible with, the governor and the agency head, the employing statutory 
13.28 	board or commission, or the employing constitutional officer;
13.29 	(6) the position would be at the level of division or bureau director or assistant 
13.30 	to the agency head; and
13.31 	(7) the commissioner has approved the designation as being consistent with the 
13.32 	standards and criteria in this subdivision.

13.33 	Sec. 26. Minnesota Statutes 2012, section 299C.65, subdivision 1, is amended to read:
14.1 		Subdivision 1.Membership, duties. (a) The Criminal and Juvenile Justice 
14.2 	Information Policy Group consists of the commissioner of corrections, the commissioner 
14.3 	of public safety, the state chief information officer, the commissioner of management and 
14.4 	budget, four members of the judicial branch appointed by the chief justice of the Supreme 
14.5 	Court, and the chair and first vice-chair of the Criminal and Juvenile Justice Information 
14.6 	Task Force. The policy group may appoint additional, nonvoting members as necessary 
14.7 	from time to time.
14.8 	(b) The commissioner of public safety is designated as the chair of the policy group. 
14.9 	The commissioner and the policy group have overall responsibility for the integration of 
14.10 	statewide criminal justice information systems. This integration effort shall be known 
14.11 	as CriMNet. The policy group may hire an executive director to manage the CriMNet 
14.12 	projects and to be responsible for the day-to-day operations of CriMNet. The executive 
14.13 	director shall serve at the pleasure of the policy group in unclassified service. The policy 
14.14 	group must ensure that generally accepted project management techniques are utilized for 
14.15 	each CriMNet project, including:
14.16 	(1) clear sponsorship;
14.17 	(2) scope management;
14.18 	(3) project planning, control, and execution;
14.19 	(4) continuous risk assessment and mitigation;
14.20 	(5) cost management;
14.21 	(6) quality management reviews;
14.22 	(7) communications management;
14.23 	(8) proven methodology; and
14.24 	(9) education and training.
14.25 	(c) Products and services for CriMNet project management, system design, 
14.26 	implementation, and application hosting must be acquired using an appropriate 
14.27 	procurement process, which includes:
14.28 	(1) a determination of required products and services;
14.29 	(2) a request for proposal development and identification of potential sources;
14.30 	(3) competitive bid solicitation, evaluation, and selection; and
14.31 	(4) contract administration and close-out.
14.32 	(d) The policy group shall study and make recommendations to the governor, the 
14.33 	Supreme Court, and the legislature on:
14.34 	(1) a framework for integrated criminal justice information systems, including the 
14.35 	development and maintenance of a community data model for state, county, and local 
14.36 	criminal justice information;
15.1 	(2) the responsibilities of each entity within the criminal and juvenile justice systems 
15.2 	concerning the collection, maintenance, dissemination, and sharing of criminal justice 
15.3 	information with one another;
15.4 	(3) actions necessary to ensure that information maintained in the criminal justice 
15.5 	information systems is accurate and up-to-date;
15.6 	(4) the development of an information system containing criminal justice 
15.7 	information on gross misdemeanor-level and felony-level juvenile offenders that is part of 
15.8 	the integrated criminal justice information system framework;
15.9 	(5) the development of an information system containing criminal justice 
15.10 	information on misdemeanor arrests, prosecutions, and convictions that is part of the 
15.11 	integrated criminal justice information system framework;
15.12 	(6) comprehensive training programs and requirements for all individuals in criminal 
15.13 	justice agencies to ensure the quality and accuracy of information in those systems;
15.14 	(7) continuing education requirements for individuals in criminal justice agencies 
15.15 	who are responsible for the collection, maintenance, dissemination, and sharing of 
15.16 	criminal justice data;
15.17 	(8) a periodic audit process to ensure the quality and accuracy of information 
15.18 	contained in the criminal justice information systems;
15.19 	(9) the equipment, training, and funding needs of the state and local agencies that 
15.20 	participate in the criminal justice information systems;
15.21 	(10) the impact of integrated criminal justice information systems on individual 
15.22 	privacy rights;
15.23 	(11) the impact of proposed legislation on the criminal justice system, including any 
15.24 	fiscal impact, need for training, changes in information systems, and changes in processes;
15.25 	(12) the collection of data on race and ethnicity in criminal justice information 
15.26 	systems;
15.27 	(13) the development of a tracking system for domestic abuse orders for protection;
15.28 	(14) processes for expungement, correction of inaccurate records, destruction of 
15.29 	records, and other matters relating to the privacy interests of individuals; and
15.30 	(15) the development of a database for extended jurisdiction juvenile records and 
15.31 	whether the records should be public or private and how long they should be retained.

15.32 	Sec. 27. Minnesota Statutes 2012, section 403.36, subdivision 1, is amended to read:
15.33 		Subdivision 1.Membership. (a) The commissioner of public safety shall convene 
15.34 	and chair the Statewide Radio Board to develop a project plan for a statewide, shared, 
16.1 	trunked public safety radio communication system. The system may be referred to as 
16.2 	"Allied Radio Matrix for Emergency Response," or "ARMER."
16.3 	(b) The board consists of the following members or their designees:
16.4 	(1) the commissioner of public safety;
16.5 	(2) the commissioner of transportation;
16.6 	(3) the state chief information officer;
16.7 	(4) the commissioner of natural resources;
16.8 	(5) the chief of the Minnesota State Patrol;
16.9 	(6) the commissioner of management and budget;
16.10 	(7) the chair of the Metropolitan Council;
16.11 	(8)(7) two elected city officials, one from the nine-county metropolitan area and one 
16.12 	from Greater Minnesota, appointed by the governing body of the League of Minnesota 
16.13 	Cities;
16.14 	(9)(8) two elected county officials, one from the nine-county metropolitan area 
16.15 	and one from Greater Minnesota, appointed by the governing body of the Association 
16.16 	of Minnesota Counties;
16.17 	(10)(9) two sheriffs, one from the nine-county metropolitan area and one from 
16.18 	Greater Minnesota, appointed by the governing body of the Minnesota Sheriffs' 
16.19 	Association;
16.20 	(11)(10) two chiefs of police, one from the nine-county metropolitan area and one 
16.21 	from Greater Minnesota, appointed by the governor after considering recommendations 
16.22 	made by the Minnesota Chiefs' of Police Association;
16.23 	(12)(11) two fire chiefs, one from the nine-county metropolitan area and one from 
16.24 	Greater Minnesota, appointed by the governor after considering recommendations made 
16.25 	by the Minnesota Fire Chiefs' Association;
16.26 	(13)(12) two representatives of emergency medical service providers, one from the 
16.27 	nine-county metropolitan area and one from Greater Minnesota, appointed by the governor 
16.28 	after considering recommendations made by the Minnesota Ambulance Association;
16.29 	(14)(13) the chair of the regional radio board for the metropolitan area; and
16.30 	(15)(14) a representative of Greater Minnesota elected by those units of government 
16.31 	in phase three and any subsequent phase of development as defined in the statewide, 
16.32 	shared radio and communication plan, who have submitted a plan to the Statewide Radio 
16.33 	Board and where development has been initiated.
16.34 	(c) The Statewide Radio Board shall coordinate the appointment of board members 
16.35 	representing Greater Minnesota with the appointing authorities and may designate the 
17.1 	geographic region or regions from which an appointed board member is selected where 
17.2 	necessary to provide representation from throughout the state.

17.3 	Sec. 28. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:
17.4 		Subd. 2b.Counties. (a) For aids payable in 2013 and thereafter, the total aid 
17.5 	payable under section 477A.0124, subdivision 3, is $80,795,000. Each calendar year, 
17.6 	$500,000 shall be retained by the commissioner of revenue to make reimbursements to 
17.7 	the commissioner of management and budget for payments made under section 611.27. 
17.8 	For calendar year 2004, the amount shall be in addition to the payments authorized 
17.9 	under section 477A.0124, subdivision 1. For calendar year 2005 and subsequent 
17.10 	years, The amount shall be deducted from the appropriation under this paragraph. The 
17.11 	reimbursements shall be to defray the additional costs associated with court-ordered 
17.12 	counsel under section 611.27. Any retained amounts not used for reimbursement in a year 
17.13 	shall be included in the next distribution of county need aid that is certified to the county 
17.14 	auditors for the purpose of property tax reduction for the next taxes payable year.
17.15 	(b) For aids payable in 2013 and thereafter, the total aid under section 477A.0124, 
17.16 	subdivision 4, is $84,909,575. The commissioner of management and budget shall bill the
17.17 	 commissioner of revenue shall transfer to the commissioner of management and budget 
17.18 	$207,000 annually for the cost of preparation of local impact notes as required by section 
17.19 	3.987, not to exceed $207,000 in fiscal year 2004 and thereafter and other local government 
17.20 	activities. The commissioner of education shall bill the commissioner of revenue for the 
17.21 	cost of preparation of local impact notes for school districts as required by section 3.987, 
17.22 	not to exceedshall transfer to the commissioner of education $7,000 in fiscal year 2004 
17.23 	and thereafter annually for the cost of preparation of local impact notes for school districts 
17.24 	as required by section 3.987. The commissioner of revenue shall deduct the amounts billed
17.25 	 transferred under this paragraph from the appropriation under this paragraph. The amounts 
17.26 	deducted transferred are appropriated to the commissioner of management and budget and 
17.27 	the commissioner of education for the preparation of local impact notes respectively.

17.28 	Sec. 29. Laws 2011, First Special Session chapter 10, article 4, section 7, is amended to 
17.29 	read:
17.30 	Sec. 7. STUDY.
 17.31 	The chief information officer in the Office of Enterprise Technology MN.IT Services 
17.32 	 shall report to the chairs and ranking minority members of the house of representatives 
17.33 	and senate committees with jurisdiction over state government finance by January 15, 
17.34 	2014, on the feasibility and desirability of the office entering into service-level agreements 
18.1 	with  the senate, the house of representatives, the State Lottery, the Statewide Radio Board, 
18.2 	Minnesota State Retirement System, the Public Employees Retirement Association, the 
18.3 	Teachers Retirement Association, the State Board of Investment, and the Campaign 
18.4 	Finance and Public Disclosure Board regarding provision of information technology 
18.5 	systems and services to those entities.

18.6 	Sec. 30. REVISOR'S INSTRUCTION.
 18.7 	In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall:
18.8 	(1) substitute the term "Office of MN.IT Services" for "Office of Enterprise 
18.9 	Technology" in each place where the latter term appears; and
18.10 	(2) substitute the term "MN.IT services revolving fund" for "enterprise technology 
18.11 	revolving fund" in each place where the latter term appears.

18.12 	Sec. 31.  REPEALER.
 18.13 	Minnesota Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9; 
18.14 	16A.103, subdivision 4; 16A.106; 43A.31, subdivision 2; and 325G.415, are repealed.