<a id="pl.1.3"></a><var>1.3</var>adding the Office of MN.IT Services to certain provisions and changing certain <br/>
<a id="pl.1.4"></a><var>1.4</var>MN.IT provisions; exempting the state information network from certain term <br/>
<a id="pl.1.5"></a><var>1.5</var>limitations on contracts;amending Minnesota Statutes 2012, sections 3.30, <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivision 2; 3.3005, subdivision 2, by adding subdivisions; 3.736, subdivision <br/>
<a id="pl.1.7"></a><var>1.7</var>7; 3.989, subdivision 2; 3D.14; 4.07, subdivision 2; 4A.01, subdivision 3; <br/>
<a id="pl.1.8"></a><var>1.8</var>4A.02; 15.06, subdivision 1; 15.76, subdivisions 1, 2, 3; 16A.056, subdivision <br/>
<a id="pl.1.9"></a><var>1.9</var>7; 16A.095; 16A.10, subdivisions 1, 1c; 16A.127, subdivision 4; 16A.96, <br/>
<a id="pl.1.10"></a><var>1.10</var>subdivision 2; 16E.01, subdivision 1; 16E.015, by adding a subdivision; <br/>
<a id="pl.1.11"></a><var>1.11</var>16E.04, subdivision 2; 16E.18, subdivision 8; 43A.08, subdivision 1a; 299C.65, <br/>
<a id="pl.1.12"></a><var>1.12</var>subdivision 1; 403.36, subdivision 1; 477A.03, subdivision 2b; Laws 2011, <br/>
<a id="pl.1.13"></a><var>1.13</var>First Special Session chapter 10, article 4, section 7; repealing Minnesota <br/>
<a id="pl.1.14"></a><var>1.14</var>Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9; 16A.103, <br/>
<a id="pl.1.15"></a><var>1.15</var>subdivision 4; 16A.106; 43A.31, subdivision 2; 325G.415.<br/>
<a id="pl.1.16"></a><var>1.16</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.17"></a><var>1.17</var>    Section 1. Minnesota Statutes 2012, section 3.30, subdivision 2, is amended to read:<br/>
<a id="pl.1.18"></a><var>1.18</var>    Subd. 2. <b>Members; duties.</b> The majority leader of the senate or a designee, the <br/>
<a id="pl.1.19"></a><var>1.19</var>chair of the senate Committee on Finance, and the chair of the senate Division of Finance <br/>
<a id="pl.1.20"></a><var>1.20</var>responsible for overseeing the items being considered by the commission, the speaker of <br/>
<a id="pl.1.21"></a><var>1.21</var>the house or a designee, the chair of the house of representatives Committee on Ways and <br/>
<a id="pl.1.22"></a><var>1.22</var>Means, and the chair of the appropriate finance committee, or division of the house of <br/>
<a id="pl.1.23"></a><var>1.23</var>representatives committee responsible for overseeing the items being considered by the <br/>
<a id="pl.1.24"></a><var>1.24</var>commissioner, constitute the Legislative Advisory Commission. The division chair of <br/>
<a id="pl.1.25"></a><var>1.25</var>the Finance Committee in the senate and the division chair of the appropriate finance <br/>
<a id="pl.1.26"></a><var>1.26</var>committee or division in the house of representatives shall rotate according to the items <br/>
<a id="pl.1.27"></a><var>1.27</var>being considered by the commission. If any of the members elect not to serve on the <br/>
<a id="pl.1.28"></a><var>1.28</var>commission, the house of which they are members, if in session, shall select some other <br/>
<a id="pl.2.1"></a><var>2.1</var>member for the vacancy. If the legislature is not in session, vacancies in the house of <br/>
<a id="pl.2.2"></a><var>2.2</var>representatives membership of the commission shall be filled by the last speaker of the <br/>
<a id="pl.2.3"></a><var>2.3</var>house or, if the speaker is not available, by the last chair of the house of representatives <br/>
<a id="pl.2.4"></a><var>2.4</var>Rules Committee, and by the last senate Committee on Committees or other appointing <br/>
<a id="pl.2.5"></a><var>2.5</var>authority designated by the senate rules in case of a senate vacancy. The commissioner <br/>
<a id="pl.2.6"></a><var>2.6</var>of management and budget shall be secretary of the commission and keep a permanent <br/>
<a id="pl.2.7"></a><var>2.7</var>record and minutes of its proceedings, which are public records. The commissioner of <br/>
<a id="pl.2.8"></a><var>2.8</var>management and budget shall transmit, under section 
<statute_ref>3.195</statute_ref>, a report to the next legislature <br/>
<a id="pl.2.9"></a><var>2.9</var>of shall post to the agency Web site all actions of the commission. Members shall receive <br/>
<a id="pl.2.10"></a><var>2.10</var>traveling and subsistence expenses incurred attending meetings of the commission. The <br/>
<a id="pl.2.11"></a><var>2.11</var>commission shall meet from time to time upon the call of the governor or upon the <br/>
<a id="pl.2.12"></a><var>2.12</var>call of the secretary at the request of two or more of its members. A recommendation <br/>
<a id="pl.2.13"></a><var>2.13</var>of the commission must be made at a meeting of the commission unless a written <br/>
<a id="pl.2.14"></a><var>2.14</var>recommendation is signed by all the members entitled to vote on the item.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.15"></a><var>2.15</var>    Sec. 2. Minnesota Statutes 2012, section 3.3005, subdivision 2, is amended to read:<br/>
<a id="pl.2.16"></a><var>2.16</var>    Subd. 2. <b>Governor's request to legislature.</b> A state agency shall not expend money <br/>
<a id="pl.2.17"></a><var>2.17</var>received by it under federal law for any purpose unless a request to spend federal money <br/>
<a id="pl.2.18"></a><var>2.18</var>from that source for that purpose in that fiscal year biennium has been submitted by the <br/>
<a id="pl.2.19"></a><var>2.19</var>governor to the legislature as a part of a budget request submitted during or within ten days <br/>
<a id="pl.2.20"></a><var>2.20</var>before the start of a regular legislative session, or unless specifically authorized by law or <br/>
<a id="pl.2.21"></a><var>2.21</var>as provided by this section. A budget request submitted to the legislature according to this <br/>
<a id="pl.2.22"></a><var>2.22</var>subdivision must be submitted at least 20 days before the deadline set by the legislature <br/>
<a id="pl.2.23"></a><var>2.23</var>for legislative budget committees to act on finance bills.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.24"></a><var>2.24</var>    Sec. 3. Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision <br/>
<a id="pl.2.25"></a><var>2.25</var>to read:<br/>
<a id="pl.2.26"></a><var>2.26</var>    Subd. 7. <b>Approvals for both years of biennium.</b> Approval of the spending of <br/>
<a id="pl.2.27"></a><var>2.27</var>federal funds under subdivision 2 is for the full term of the availability of the federal <br/>
<a id="pl.2.28"></a><var>2.28</var>funds, up to the end of the biennium that begins July 1 following the submission of the <br/>
<a id="pl.2.29"></a><var>2.29</var>request. Approval of the spending of federal funds under subdivision 3, 3a, 3b, or 6 is for <br/>
<a id="pl.2.30"></a><var>2.30</var>the full term of the availability of the federal funds, up to the end of the current biennium. <br/>
<a id="pl.2.31"></a><var>2.31</var>Approval of the spending for federal funds under subdivision 4 is for the fiscal year for <br/>
<a id="pl.2.32"></a><var>2.32</var>which the urgency exists. <br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.3.1"></a><var>3.1</var>    Sec. 4. Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision <br/>
<a id="pl.3.2"></a><var>3.2</var>to read:<br/>
<a id="pl.3.3"></a><var>3.3</var>    Subd. 8. <b>Request contents.</b> A request to spend federal funds submitted under this <br/>
<a id="pl.3.4"></a><var>3.4</var>section must include the name of the federal grant, the federal agency from which the <br/>
<a id="pl.3.5"></a><var>3.5</var>funds are available, a federal identification number, a brief description of the purpose of <br/>
<a id="pl.3.6"></a><var>3.6</var>the grant, the amounts expected by fiscal year, an indication if any state match is required, <br/>
<a id="pl.3.7"></a><var>3.7</var>an indication if there is a maintenance of effort requirement, and the number of full-time <br/>
<a id="pl.3.8"></a><var>3.8</var>equivalent positions needed to implement the grant.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.9"></a><var>3.9</var>    Sec. 5. Minnesota Statutes 2012, section 3.736, subdivision 7, is amended to read:<br/>
<a id="pl.3.10"></a><var>3.10</var>    Subd. 7. <b>Payment.</b> A state agency, including an entity defined as part of the <br/>
<a id="pl.3.11"></a><var>3.11</var>state in section 
         <statute_ref>3.732, subdivision 1</statute_ref>, clause (1), incurring a tort claim judgment or <br/>
<a id="pl.3.12"></a><var>3.12</var>settlement obligation or whose employees acting within the scope of their employment <br/>
<a id="pl.3.13"></a><var>3.13</var>incur the obligation shall seek approval to make payment by submitting a written request <br/>
<a id="pl.3.14"></a><var>3.14</var>to the commissioner of management and budget from the commissioner or director <br/>
<a id="pl.3.15"></a><var>3.15</var>of that agency. The request shall contain a description of the tort claim that causes <br/>
<a id="pl.3.16"></a><var>3.16</var>the request, specify the amount of the obligation and be accompanied by copies of <br/>
<a id="pl.3.17"></a><var>3.17</var>judgments, settlement agreements or other documentation relevant to the obligation for <br/>
<a id="pl.3.18"></a><var>3.18</var>which the agency seeks payment. Upon receipt of the request and review of the claim, <br/>
<a id="pl.3.19"></a><var>3.19</var>the commissioner of management and budget or director shall determine the proper <br/>
<a id="pl.3.20"></a><var>3.20</var>appropriation from which to make payment. If there is enough money in an appropriation <br/>
<a id="pl.3.21"></a><var>3.21</var>or combination of appropriations to the agency for its general operations and management <br/>
<a id="pl.3.22"></a><var>3.22</var>to pay the claim without unduly hindering the operation of the agency, the commissioner <br/>
<a id="pl.3.23"></a><var>3.23</var>or director shall direct that payment be made from that source. Claims relating to activities <br/>
<a id="pl.3.24"></a><var>3.24</var>paid for by appropriations of dedicated receipts shall be paid from those appropriations if <br/>
<a id="pl.3.25"></a><var>3.25</var>practicable. On determining that an agency has sufficient money in these appropriations <br/>
<a id="pl.3.26"></a><var>3.26</var>to pay only part of a claim, the commissioner of management and budget shall pay the <br/>
<a id="pl.3.27"></a><var>3.27</var>remainder of the claim from the money appropriated to the commissioner for the purpose. <br/>
<a id="pl.3.28"></a><var>3.28</var>On determining that the agency does not have enough money to pay any part of the claim, <br/>
<a id="pl.3.29"></a><var>3.29</var>the commissioner shall pay all of the claim from money appropriated to the commissioner <br/>
<a id="pl.3.30"></a><var>3.30</var>for the purpose. Payment shall be made only upon receipt of a written release by the <br/>
<a id="pl.3.31"></a><var>3.31</var>claimant in a form approved by the attorney general, or the person designated as the <br/>
<a id="pl.3.32"></a><var>3.32</var>university attorney, as the case may be.<br/>
<a id="pl.3.33"></a><var>3.33</var>No attachment or execution shall issue against the state.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.3.34"></a><var>3.34</var>    Sec. 6. Minnesota Statutes 2012, section 3.989, subdivision 2, is amended to read:<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 2. <b>Compilation of local impact notes.</b> The commissioner of management <br/>
<a id="pl.4.2"></a><var>4.2</var>and budget shall prepare by September 1 of each even-numbered year a compilation <br/>
<a id="pl.4.3"></a><var>4.3</var>of key impact notes requested by the legislature during the previous biennial session <br/>
<a id="pl.4.4"></a><var>4.4</var>as provided in section 
<statute_ref>3.987</statute_ref>. The commissioner may consult with local government <br/>
<a id="pl.4.5"></a><var>4.5</var>representatives and legislative fiscal staff to determine which local impact notes were key<br/>
<a id="pl.4.6"></a><var>4.6</var> post to the agency Web site a copy of all local impact notes.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.4.7"></a><var>4.7</var>    Sec. 7. Minnesota Statutes 2012, section 3D.14, is amended to read:<br/>
<a id="pl.4.8"></a><var>4.8</var><b>3D.14 CONTINUATION BY LAW.</b><br/>
<a id="pl.4.9"></a><var>4.9</var>(a) The following departments and agencies must be reviewed according to the <br/>
<a id="pl.4.10"></a><var>4.10</var>schedule in section 
         <statute_ref>3D.21</statute_ref>, but do not expire according to that schedule, unless another law <br/>
<a id="pl.4.11"></a><var>4.11</var>is enacted providing that the entity does expire:<br/>
<a id="pl.4.12"></a><var>4.12</var>(1) a department or agency listed in section 
         <statute_ref>15.01</statute_ref>, or section
<statute_ref>15.06, subdivision 1 <br/>
<a id="pl.4.13"></a><var>4.13</var></statute_ref>or 1a; and<br/>
<a id="pl.4.14"></a><var>4.14</var>(2) the Office of Higher Education, Explore Minnesota Tourism, and the Public <br/>
<a id="pl.4.15"></a><var>4.15</var>Utilities Commission.<br/>
<a id="pl.4.16"></a><var>4.16</var>(b) During the regular session immediately before the sunset of a state agency or an <br/>
<a id="pl.4.17"></a><var>4.17</var>advisory committee that expires under section 
         <statute_ref>3D.21</statute_ref>, the legislature may enact legislation <br/>
<a id="pl.4.18"></a><var>4.18</var>to continue the agency or advisory committee for a period not to exceed 12 years. This <br/>
<a id="pl.4.19"></a><var>4.19</var>chapter does not prohibit the legislature from:<br/>
<a id="pl.4.20"></a><var>4.20</var>(1) terminating a state agency or advisory committee subject to this chapter at a date <br/>
<a id="pl.4.21"></a><var>4.21</var>earlier than that provided in this chapter; or<br/>
<a id="pl.4.22"></a><var>4.22</var>(2) considering any other legislation relative to a state agency or advisory committee <br/>
<a id="pl.4.23"></a><var>4.23</var>subject to this chapter.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.4.24"></a><var>4.24</var>    Sec. 8. Minnesota Statutes 2012, section 4.07, subdivision 2, is amended to read:<br/>
<a id="pl.4.25"></a><var>4.25</var>    Subd. 2. <b>State agency named to act instead.</b> The governor may designate a state <br/>
<a id="pl.4.26"></a><var>4.26</var>agency or agencies to act for the governor in applying for, receiving, and accepting federal <br/>
<a id="pl.4.27"></a><var>4.27</var>funds under the provisions of subdivision 1. Such designation of a state department or <br/>
<a id="pl.4.28"></a><var>4.28</var>agency shall be filed in the Office of the Secretary of State.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.4.29"></a><var>4.29</var>    Sec. 9. Minnesota Statutes 2012, section 4A.01, subdivision 3, is amended to read:<br/>
<a id="pl.4.30"></a><var>4.30</var>    Subd. 3. <b>Report.</b> The commissioner must submit a report to the governor and chairs <br/>
<a id="pl.4.31"></a><var>4.31</var>and ranking minority members of the senate and house of representatives committees <br/>
<a id="pl.4.32"></a><var>4.32</var>with jurisdiction on state government finance by January 15 of each year that provides <br/>
<a id="pl.4.33"></a><var>4.33</var>economic, social, and environmental demographic information to assist public and elected <br/>
<a id="pl.5.1"></a><var>5.1</var>officials with long-term management decisions. The report must identify and assess <br/>
<a id="pl.5.2"></a><var>5.2</var>the information important to understanding the state's two-, ten-, and 50-year outlook, <br/>
<a id="pl.5.3"></a><var>5.3</var>including the budget implications for those time periods. The report must include the <br/>
<a id="pl.5.4"></a><var>5.4</var>demographic forecast required by section 
         <statute_ref>4A.02</statute_ref>, paragraph (e), and information to assist <br/>
<a id="pl.5.5"></a><var>5.5</var>with the preparation of the milestones report required by section 
         <statute_ref>4A.11</statute_ref>, and may include <br/>
<a id="pl.5.6"></a><var>5.6</var>policy recommendations based upon the information and assessment provided.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.5.7"></a><var>5.7</var>    Sec. 10. Minnesota Statutes 2012, section 4A.02, is amended to read:<br/>
<a id="pl.5.8"></a><var>5.8</var><b>4A.02 STATE DEMOGRAPHER.</b><br/>
<a id="pl.5.9"></a><var>5.9</var>(a) The commissioner shall appoint a state demographer. The demographer must be <br/>
<a id="pl.5.10"></a><var>5.10</var>professionally competent in demography and must possess demonstrated ability based <br/>
<a id="pl.5.11"></a><var>5.11</var>upon past performance.<br/>
<a id="pl.5.12"></a><var>5.12</var>(b) The demographer shall:<br/>
<a id="pl.5.13"></a><var>5.13</var>(1) continuously gather and develop demographic data relevant to the state;<br/>
<a id="pl.5.14"></a><var>5.14</var>(2) design and test methods of research and data collection;<br/>
<a id="pl.5.15"></a><var>5.15</var>(3) periodically prepare population projections for the state and designated regions <br/>
<a id="pl.5.16"></a><var>5.16</var>and periodically prepare projections for each county or other political subdivision of the <br/>
<a id="pl.5.17"></a><var>5.17</var>state as necessary to carry out the purposes of this section;<br/>
<a id="pl.5.18"></a><var>5.18</var>(4) review, comment on, and prepare analysis of population estimates and <br/>
<a id="pl.5.19"></a><var>5.19</var>projections made by state agencies, political subdivisions, other states, federal agencies, or <br/>
<a id="pl.5.20"></a><var>5.20</var>nongovernmental persons, institutions, or commissions;<br/>
<a id="pl.5.21"></a><var>5.21</var>(5) serve as the state liaison with the United States Bureau of the Census, coordinate <br/>
<a id="pl.5.22"></a><var>5.22</var>state and federal demographic activities to the fullest extent possible, and aid the <br/>
<a id="pl.5.23"></a><var>5.23</var>legislature in preparing a census data plan and form for each decennial census;<br/>
<a id="pl.5.24"></a><var>5.24</var>(6) compile an annual study of population estimates on the basis of county, regional, <br/>
<a id="pl.5.25"></a><var>5.25</var>or other political or geographical subdivisions as necessary to carry out the purposes of <br/>
<a id="pl.5.26"></a><var>5.26</var>this section and section 
         <statute_ref>4A.03</statute_ref>;<br/>
<a id="pl.5.27"></a><var>5.27</var>(7) by January 1 of each year, issue a report to the legislature containing an analysis <br/>
<a id="pl.5.28"></a><var>5.28</var>of the demographic implications of the annual population study and population projections;<br/>
<a id="pl.5.29"></a><var>5.29</var>(8) prepare maps for all counties in the state, all municipalities with a population <br/>
<a id="pl.5.30"></a><var>5.30</var>of 10,000 or more, and other municipalities as needed for census purposes, according to <br/>
<a id="pl.5.31"></a><var>5.31</var>scale and detail recommended by the United States Bureau of the Census, with the maps <br/>
<a id="pl.5.32"></a><var>5.32</var>of cities showing precinct boundaries;<br/>
<a id="pl.5.33"></a><var>5.33</var>(9) prepare an estimate of population and of the number of households for each <br/>
<a id="pl.5.34"></a><var>5.34</var>governmental subdivision for which the Metropolitan Council does not prepare an annual <br/>
<a id="pl.6.1"></a><var>6.1</var>estimate, and convey the estimates to the governing body of each political subdivision <br/>
<a id="pl.6.2"></a><var>6.2</var>by June 1 of each year;<br/>
<a id="pl.6.3"></a><var>6.3</var>(10) direct, under section 
         <statute_ref>414.01, subdivision 14</statute_ref>, and certify population and <br/>
<a id="pl.6.4"></a><var>6.4</var>household estimates of annexed or detached areas of municipalities or towns after being <br/>
<a id="pl.6.5"></a><var>6.5</var>notified of the order or letter of approval by the chief administrative law judge of the <br/>
<a id="pl.6.6"></a><var>6.6</var>State Office of Administrative Hearings;<br/>
<a id="pl.6.7"></a><var>6.7</var>(11) prepare, for any purpose for which a population estimate is required by law <br/>
<a id="pl.6.8"></a><var>6.8</var>or needed to implement a law, a population estimate of a municipality or town whose <br/>
<a id="pl.6.9"></a><var>6.9</var>population is affected by action under section 
         <statute_ref>379.02</statute_ref> or 
         <statute_ref>414.01, subdivision 14</statute_ref>; and<br/>
<a id="pl.6.10"></a><var>6.10</var>(12) prepare an estimate of average household size for each statutory or home rule <br/>
<a id="pl.6.11"></a><var>6.11</var>charter city with a population of 2,500 or more by June 1 of each year.<br/>
<a id="pl.6.12"></a><var>6.12</var>(c) A governing body may challenge an estimate made under paragraph (b) by filing <br/>
<a id="pl.6.13"></a><var>6.13</var>their specific objections in writing with the state demographer by June 24. If the challenge <br/>
<a id="pl.6.14"></a><var>6.14</var>does not result in an acceptable estimate, the governing body may have a special census <br/>
<a id="pl.6.15"></a><var>6.15</var>conducted by the United States Bureau of the Census. The political subdivision must <br/>
<a id="pl.6.16"></a><var>6.16</var>notify the state demographer by July 1 of its intent to have the special census conducted. <br/>
<a id="pl.6.17"></a><var>6.17</var>The political subdivision must bear all costs of the special census. Results of the special <br/>
<a id="pl.6.18"></a><var>6.18</var>census must be received by the state demographer by the next April 15 to be used in that <br/>
<a id="pl.6.19"></a><var>6.19</var>year's June 1 estimate to the political subdivision under paragraph (b).<br/>
<a id="pl.6.20"></a><var>6.20</var>(d) The state demographer shall certify the estimates of population and household <br/>
<a id="pl.6.21"></a><var>6.21</var>size to the commissioner of revenue by July 15 each year, including any estimates still <br/>
<a id="pl.6.22"></a><var>6.22</var>under objection.<br/>
<a id="pl.6.23"></a><var>6.23</var>(e) The state demographer shall release a demographic forecast in conjunction with <br/>
<a id="pl.6.24"></a><var>6.24</var>the commissioner of management and budget and the November state economic forecast.<br/>
<a id="pl.6.25"></a><var>6.25</var>(f) The state demographer may contract for the development of data and research <br/>
<a id="pl.6.26"></a><var>6.26</var>required under this chapter, including, but not limited to, population estimates and <br/>
<a id="pl.6.27"></a><var>6.27</var>projections, the preparation of maps, and other estimates.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.6.28"></a><var>6.28</var>    Sec. 11. Minnesota Statutes 2012, section 15.06, subdivision 1, is amended to read:<br/>
<a id="pl.6.29"></a><var>6.29</var>    Subdivision 1. <b>Applicability.</b> This section applies to the following departments <br/>
<a id="pl.6.30"></a><var>6.30</var>or agencies: the Departments of Administration, Agriculture, Commerce, Corrections, <br/>
<a id="pl.6.31"></a><var>6.31</var>Education, Employment and Economic Development, Health, Human Rights, Labor and <br/>
<a id="pl.6.32"></a><var>6.32</var>Industry, Management and Budget, Natural Resources, Public Safety, Human Services, <br/>
<a id="pl.6.33"></a><var>6.33</var>Revenue, Transportation, and Veterans Affairs; the Housing Finance and Pollution Control <br/>
<a id="pl.6.34"></a><var>6.34</var>Agencies; the Office of Commissioner of Iron Range Resources and Rehabilitation;<br/>
<a id="pl.6.35"></a><var>6.35</var> the Office of MN.IT Services; the Bureau of Mediation Services; and their successor <br/>
<a id="pl.7.1"></a><var>7.1</var>departments and agencies. The heads of the foregoing departments or agencies are <br/>
<a id="pl.7.2"></a><var>7.2</var>"commissioners."<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.7.3"></a><var>7.3</var>    Sec. 12. Minnesota Statutes 2012, section 15.76, subdivision 1, is amended to read:<br/>
<a id="pl.7.4"></a><var>7.4</var>    Subdivision 1. <b>Program established.</b> The state agency value initiative (SAVI) <br/>
<a id="pl.7.5"></a><var>7.5</var>program is established to encourage state agencies to identify cost-effective and efficiency <br/>
<a id="pl.7.6"></a><var>7.6</var>measures in agency programs and operations that result in cost savings for the state. <br/>
<a id="pl.7.7"></a><var>7.7</var>All state agencies, including Minnesota State Colleges and Universities, not separately <br/>
<a id="pl.7.8"></a><var>7.8</var>authorized to carry forward operating funds may participate in this program.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.7.9"></a><var>7.9</var>    Sec. 13. Minnesota Statutes 2012, section 15.76, subdivision 2, is amended to read:<br/>
<a id="pl.7.10"></a><var>7.10</var>    Subd. 2. <b>Retained savings.</b> (a) In order to encourage innovation and creative <br/>
<a id="pl.7.11"></a><var>7.11</var>cost savings by state employees, upon approval of the commissioner of management <br/>
<a id="pl.7.12"></a><var>7.12</var>and budget, 50 percent of any appropriations for agency operations that remain unspent <br/>
<a id="pl.7.13"></a><var>7.13</var>at the end of a biennium because of unanticipated innovation, efficiencies, or creative <br/>
<a id="pl.7.14"></a><var>7.14</var>cost-savings may be carried forward and retained by the agency to fund specific agency <br/>
<a id="pl.7.15"></a><var>7.15</var>proposals or projects. Agencies choosing to spend retained savings funds must ensure that <br/>
<a id="pl.7.16"></a><var>7.16</var>project expenditures do not create future obligations beyond the amounts available from <br/>
<a id="pl.7.17"></a><var>7.17</var>the retained savings. The retained savings must be used only to fund projects that directly <br/>
<a id="pl.7.18"></a><var>7.18</var>support the performance of the agency's mission. This section does not restrict authority <br/>
<a id="pl.7.19"></a><var>7.19</var>granted by other law to carry forward money for a different period or for different purposes.<br/>
<a id="pl.7.20"></a><var>7.20</var>(b) This section supersedes any contrary provision of section 
         <statute_ref>16A.28</statute_ref>.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.7.21"></a><var>7.21</var>    Sec. 14. Minnesota Statutes 2012, section 15.76, subdivision 3, is amended to read:<br/>
<a id="pl.7.22"></a><var>7.22</var>    Subd. 3. <b>Special peer review panel;</b><b> Review process.</b> (a) Each participating agency <br/>
<a id="pl.7.23"></a><var>7.23</var>must organize a peer review panel that will determine which proposal or project receives <br/>
<a id="pl.7.24"></a><var>7.24</var>funding from the SAVI program. The peer review panel must be comprised of department <br/>
<a id="pl.7.25"></a><var>7.25</var>employees who are credited with cost-savings initiatives and department managers. The <br/>
<a id="pl.7.26"></a><var>7.26</var>ratio between managers and department employees must be balanced.<br/>
<a id="pl.7.27"></a><var>7.27</var>(b) An agency may spend money for a project recommended for funding by the <br/>
<a id="pl.7.28"></a><var>7.28</var>peer review panel after:<br/>
<a id="pl.7.29"></a><var>7.29</var>(1) the agency has posted notice of spending for the proposed project on the agency <br/>
<a id="pl.7.30"></a><var>7.30</var>Web site for at least 30 days; and<br/>
<a id="pl.7.31"></a><var>7.31</var>(2) the commissioner of management and budget has approved spending money <br/>
<a id="pl.7.32"></a><var>7.32</var>from the SAVI account for the project.; and<br/>
<a id="pl.8.1"></a><var>8.1</var>(c) Before approving a project, (3) the commissioner of management and budget <br/>
<a id="pl.8.2"></a><var>8.2</var>must submit the request to has notified the Legislative Advisory Commission for its <br/>
<a id="pl.8.3"></a><var>8.3</var>review and recommendation comment. Upon receiving a request from the commissioner, <br/>
<a id="pl.8.4"></a><var>8.4</var>the Legislative Advisory Commission shall post notice of the request on a legislative <br/>
<a id="pl.8.5"></a><var>8.5</var>Web site for at least 30 days. Failure of the commission to make a recommendation <br/>
<a id="pl.8.6"></a><var>8.6</var>within this 30-day period is considered a negative recommendation. A recommendation <br/>
<a id="pl.8.7"></a><var>8.7</var>of the commission must be made at a meeting of the commission unless a written <br/>
<a id="pl.8.8"></a><var>8.8</var>recommendation is signed by all the members entitled to vote on the item.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.8.9"></a><var>8.9</var>    Sec. 15. Minnesota Statutes 2012, section 16A.056, subdivision 7, is amended to read:<br/>
<a id="pl.8.10"></a><var>8.10</var>    Subd. 7. <b>Retention of data.</b> The database required under this section must include <br/>
<a id="pl.8.11"></a><var>8.11</var>information beginning with fiscal year 2010 2012 appropriations and must retain data <br/>
<a id="pl.8.12"></a><var>8.12</var>for at least ten years.<br/>
<br/>
<a id="bill.0.16.0"></a><a id="pl.8.13"></a><var>8.13</var>    Sec. 16. Minnesota Statutes 2012, section 16A.095, is amended to read:<br/>
<a id="pl.8.14"></a><var>8.14</var><b>16A.095 STATE BUDGET SYSTEM.</b><br/>
<a id="pl.8.15"></a><var>8.15</var>    Subdivision 1. <b>Rules and instructions.</b> The commissioner shall make rules and <br/>
<a id="pl.8.16"></a><var>8.16</var>instructions for budget preparation. They must deal with classifying expenditures and with <br/>
<a id="pl.8.17"></a><var>8.17</var>the content and submission of budget requests and appropriation performance measures<br/>
<a id="pl.8.18"></a><var>8.18</var> for each budget activity.<br/>
<a id="pl.8.19"></a><var>8.19</var>    Subd. 2. <b>Budget improvements.</b> The commissioner may choose executive agencies <br/>
<a id="pl.8.20"></a><var>8.20</var>to test improvements in the budget system. The commissioner shall recommend required <br/>
<a id="pl.8.21"></a><var>8.21</var>legislation to install improvements in the budget system for all executive agencies that <br/>
<a id="pl.8.22"></a><var>8.22</var>submit budget information in the system. The budget system must classify expenditures by <br/>
<a id="pl.8.23"></a><var>8.23</var>programs and budget activities and, to the greatest extent practicable, emphasize alternative <br/>
<a id="pl.8.24"></a><var>8.24</var>approaches in program development and criteria to evaluate and measure performance.<br/>
<a id="pl.8.25"></a><var>8.25</var>    Subd. 2a. <b>Mutual cooperation; due regard.</b> Executive agencies must cooperate <br/>
<a id="pl.8.26"></a><var>8.26</var>with the commissioner in making a preparing the budget. The budget must meet <br/>
<a id="pl.8.27"></a><var>8.27</var>the commissioner's requirements while giving due regard to the executive agencies' <br/>
<a id="pl.8.28"></a><var>8.28</var>requirements.<br/>
<br/>
<a id="bill.0.17.0"></a><a id="pl.8.29"></a><var>8.29</var>    Sec. 17. Minnesota Statutes 2012, section 16A.10, subdivision 1, is amended to read:<br/>
<a id="pl.8.30"></a><var>8.30</var>    Subdivision 1. <b>Budget format.</b> In each even-numbered calendar year the <br/>
<a id="pl.8.31"></a><var>8.31</var>commissioner shall prepare budget forms and instructions for all agencies, including <br/>
<a id="pl.8.32"></a><var>8.32</var>guidelines for reporting agency performance measures, subject to the approval of the <br/>
<a id="pl.8.33"></a><var>8.33</var>governor. The commissioner shall request and receive advisory recommendations from <br/>
<a id="pl.9.1"></a><var>9.1</var>the chairs of the senate Finance Committee and house of representatives Ways and <br/>
<a id="pl.9.2"></a><var>9.2</var>Means Committee before adopting a format for the biennial budget document. By June <br/>
<a id="pl.9.3"></a><var>9.3</var>15, the commissioner shall send the proposed budget forms to the appropriations and <br/>
<a id="pl.9.4"></a><var>9.4</var>finance committees. The committees have until July 15 to give the commissioner their <br/>
<a id="pl.9.5"></a><var>9.5</var>advisory recommendations on possible improvements. To facilitate this consultation, the <br/>
<a id="pl.9.6"></a><var>9.6</var>commissioner shall establish a working group consisting of executive branch staff and <br/>
<a id="pl.9.7"></a><var>9.7</var>designees of the chairs of the senate Finance and house of representatives Ways and Means <br/>
<a id="pl.9.8"></a><var>9.8</var>Committees. The commissioner must involve this group in all stages of development of <br/>
<a id="pl.9.9"></a><var>9.9</var>budget forms and instructions. The budget format must show actual expenditures and <br/>
<a id="pl.9.10"></a><var>9.10</var>receipts for the most recent fiscal year, estimated expenditures and receipts for the current <br/>
<a id="pl.9.11"></a><var>9.11</var>fiscal year, and estimates for each fiscal year of the next biennium. Estimated expenditures <br/>
<a id="pl.9.12"></a><var>9.12</var>must be classified by funds and character of expenditures and may be subclassified by <br/>
<a id="pl.9.13"></a><var>9.13</var>programs and activities. Agency revenue estimates must have supporting documentation <br/>
<a id="pl.9.14"></a><var>9.14</var>to show how the estimates were made and what factors were used. Receipts must be <br/>
<a id="pl.9.15"></a><var>9.15</var>classified by funds, programs, and activities. Expenditure and revenue estimates must be <br/>
<a id="pl.9.16"></a><var>9.16</var>based on the law in existence at the time the estimates are prepared.<br/>
<br/>
<a id="bill.0.18.0"></a><a id="pl.9.17"></a><var>9.17</var>    Sec. 18. Minnesota Statutes 2012, section 16A.10, subdivision 1c, is amended to read:<br/>
<a id="pl.9.18"></a><var>9.18</var>    Subd. 1c. <b>Performance measures for change items.</b> For each change item in the <br/>
<a id="pl.9.19"></a><var>9.19</var>budget proposal requesting new or increased funding, the budget document must present <br/>
<a id="pl.9.20"></a><var>9.20</var>proposed performance measures that can be used to determine if the new or increased <br/>
<a id="pl.9.21"></a><var>9.21</var>funding is accomplishing its goals. To the extent possible, each budget change item <br/>
<a id="pl.9.22"></a><var>9.22</var>must identify relevant Minnesota Milestones and other statewide goals and indicators <br/>
<a id="pl.9.23"></a><var>9.23</var>related to the proposed initiative. The commissioner must report to the Subcommittee on <br/>
<a id="pl.9.24"></a><var>9.24</var>Government Accountability established under section 
<statute_ref>3.885, subdivision 10</statute_ref>, regarding the <br/>
<a id="pl.9.25"></a><var>9.25</var>format to be used for the presentation and selection of Minnesota Milestones and other <br/>
<a id="pl.9.26"></a><var>9.26</var>statewide goals and indicators.<br/>
<br/>
<a id="bill.0.19.0"></a><a id="pl.9.27"></a><var>9.27</var>    Sec. 19. Minnesota Statutes 2012, section 16A.127, subdivision 4, is amended to read:<br/>
<a id="pl.9.28"></a><var>9.28</var>    Subd. 4. <b>Federal proposals.</b> Agency applications for federal money shall include <br/>
<a id="pl.9.29"></a><var>9.29</var>necessary submissions to recover both statewide and agency indirect costs. A copy of the <br/>
<a id="pl.9.30"></a><var>9.30</var>indirect cost submission must be submitted to the commissioner for review. An agency <br/>
<a id="pl.9.31"></a><var>9.31</var>indirect cost plan is unnecessary if the commissioner determines that the costs incurred in <br/>
<a id="pl.9.32"></a><var>9.32</var>preparing and maintaining it exceed the benefit received by the state. If less than the entire <br/>
<a id="pl.9.33"></a><var>9.33</var>agency proposal is federally approved, the commissioner may accept reimbursement of <br/>
<a id="pl.10.1"></a><var>10.1</var>less than all of the federal receipts. If no federal funds are approved for indirect costs, <br/>
<a id="pl.10.2"></a><var>10.2</var>the agency must document that fact to the commissioner.<br/>
<br/>
<a id="bill.0.20.0"></a><a id="pl.10.3"></a><var>10.3</var>    Sec. 20. Minnesota Statutes 2012, section 16A.96, subdivision 2, is amended to read:<br/>
<a id="pl.10.4"></a><var>10.4</var>    Subd. 2. <b>Authority.</b> (a) Subject to the limitations of this subdivision, the <br/>
<a id="pl.10.5"></a><var>10.5</var>commissioner of management and budget may sell and issue appropriation bonds of the <br/>
<a id="pl.10.6"></a><var>10.6</var>state under this section for the purposes of the Minnesota pay-for-performance program <br/>
<a id="pl.10.7"></a><var>10.7</var>established in sections 
         <statute_ref>16A.93</statute_ref> to 
         <statute_ref>16A.96</statute_ref>. Proceeds of the bonds must be credited to <br/>
<a id="pl.10.8"></a><var>10.8</var>a special appropriation bond proceeds account in the state treasury. Net income from <br/>
<a id="pl.10.9"></a><var>10.9</var>investment of the proceeds, as estimated by the commissioner, must be credited to the <br/>
<a id="pl.10.10"></a><var>10.10</var>special appropriation bond proceeds account.<br/>
<a id="pl.10.11"></a><var>10.11</var>(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of <br/>
<a id="pl.10.12"></a><var>10.12</var>the commissioner, are necessary to provide sufficient funds for achieving the purposes <br/>
<a id="pl.10.13"></a><var>10.13</var>authorized as provided under paragraph (a), and pay debt service, pay costs of issuance, <br/>
<a id="pl.10.14"></a><var>10.14</var>make deposits to reserve funds, pay the costs of credit enhancement, or make payments <br/>
<a id="pl.10.15"></a><var>10.15</var>under other agreements entered into under paragraph (d); provided, however, that bonds <br/>
<a id="pl.10.16"></a><var>10.16</var>issued and unpaid shall not exceed $10,000,000 in principal amount, excluding refunding <br/>
<a id="pl.10.17"></a><var>10.17</var>bonds sold and issued under subdivision 4. During the biennium ending June 30, 2013,<br/>
<a id="pl.10.18"></a><var>10.18</var> The commissioner may sell and issue bonds only in an amount that the commissioner <br/>
<a id="pl.10.19"></a><var>10.19</var>determines will result in principal and interest payments less than the amount of savings to <br/>
<a id="pl.10.20"></a><var>10.20</var>be generated through pay-for-performance contracts under section 
         <statute_ref>16A.94</statute_ref>. For programs <br/>
<a id="pl.10.21"></a><var>10.21</var>achieving savings under a pay-for-performance contract, the commissioner must reduce <br/>
<a id="pl.10.22"></a><var>10.22</var>general fund appropriations by at least the amount of principal and interest payments on <br/>
<a id="pl.10.23"></a><var>10.23</var>bonds issued under this section.<br/>
<a id="pl.10.24"></a><var>10.24</var>(c) Appropriation bonds may be issued in one or more series on the terms and <br/>
<a id="pl.10.25"></a><var>10.25</var>conditions the commissioner determines to be in the best interests of the state, but the term <br/>
<a id="pl.10.26"></a><var>10.26</var>on any series of bonds may not exceed 20 years.<br/>
<a id="pl.10.27"></a><var>10.27</var>(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any <br/>
<a id="pl.10.28"></a><var>10.28</var>time thereafter, so long as the appropriation bonds are outstanding, the commissioner <br/>
<a id="pl.10.29"></a><var>10.29</var>may enter into agreements and ancillary arrangements relating to the appropriation <br/>
<a id="pl.10.30"></a><var>10.30</var>bonds, including but not limited to trust indentures, liquidity facilities, remarketing or <br/>
<a id="pl.10.31"></a><var>10.31</var>dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, <br/>
<a id="pl.10.32"></a><var>10.32</var>reimbursement agreements, indexing agreements, or interest exchange agreements. Any <br/>
<a id="pl.10.33"></a><var>10.33</var>payments made or received according to the agreement or ancillary arrangement shall be <br/>
<a id="pl.10.34"></a><var>10.34</var>made from or deposited as provided in the agreement or ancillary arrangement. The <br/>
<a id="pl.11.1"></a><var>11.1</var>determination of the commissioner included in an interest exchange agreement that the <br/>
<a id="pl.11.2"></a><var>11.2</var>agreement relates to an appropriation bond shall be conclusive.<br/>
<br/>
<a id="bill.0.21.0"></a><a id="pl.11.3"></a><var>11.3</var>    Sec. 21. Minnesota Statutes 2012, section 16E.01, subdivision 1, is amended to read:<br/>
<a id="pl.11.4"></a><var>11.4</var>    Subdivision 1. <b>Creation; chief information officer.</b> The Office of Enterprise <br/>
<a id="pl.11.5"></a><var>11.5</var>Technology MN.IT Services, referred to in this chapter as the "office," is an agency in <br/>
<a id="pl.11.6"></a><var>11.6</var>the executive branch headed by a commissioner, who also is the state chief information <br/>
<a id="pl.11.7"></a><var>11.7</var>officer. The appointment of the chief information officer commissioner is subject to the <br/>
<a id="pl.11.8"></a><var>11.8</var>advice and consent of the senate under section 
         <statute_ref>15.066</statute_ref>.<br/>
<br/>
<a id="bill.0.22.0"></a><a id="pl.11.9"></a><var>11.9</var>    Sec. 22. Minnesota Statutes 2012, section 16E.015, is amended by adding a subdivision <br/>
<a id="pl.11.10"></a><var>11.10</var>to read:<br/>
<a id="pl.11.11"></a><var>11.11</var>    Subd. 5. <b>State information network.</b> "State information network" means <br/>
<a id="pl.11.12"></a><var>11.12</var>optical fiber facilities and terminal equipment used in the delivery of high-speed <br/>
<a id="pl.11.13"></a><var>11.13</var>telecommunications services.<br/>
<br/>
<a id="bill.0.23.0"></a><a id="pl.11.14"></a><var>11.14</var>    Sec. 23. Minnesota Statutes 2012, section 16E.04, subdivision 2, is amended to read:<br/>
<a id="pl.11.15"></a><var>11.15</var>    Subd. 2. <b>Responsibilities.</b> (a) In addition to other activities prescribed by law, the <br/>
<a id="pl.11.16"></a><var>11.16</var>office shall carry out the duties set out in this subdivision.<br/>
<a id="pl.11.17"></a><var>11.17</var>    (b) The office shall develop and establish a state information architecture to ensure:<br/>
<a id="pl.11.18"></a><var>11.18</var>(1) that state agency development and purchase of information and communications <br/>
<a id="pl.11.19"></a><var>11.19</var>systems, equipment, and services is designed to ensure that individual agency information <br/>
<a id="pl.11.20"></a><var>11.20</var>systems complement and do not needlessly duplicate or conflict with the systems of other <br/>
<a id="pl.11.21"></a><var>11.21</var>agencies; and<br/>
<a id="pl.11.22"></a><var>11.22</var>(2) enhanced public access to data can be provided consistent with standards <br/>
<a id="pl.11.23"></a><var>11.23</var>developed under section 
         <statute_ref>16E.05, subdivision 4</statute_ref>.<br/>
<a id="pl.11.24"></a><var>11.24</var>When state agencies have need for the same or similar public data, the chief information <br/>
<a id="pl.11.25"></a><var>11.25</var>officer, in coordination with the affected agencies, shall manage the most efficient and <br/>
<a id="pl.11.26"></a><var>11.26</var>cost-effective method of producing and storing data for or sharing data between those <br/>
<a id="pl.11.27"></a><var>11.27</var>agencies. The development of this information architecture must include the establishment <br/>
<a id="pl.11.28"></a><var>11.28</var>of standards and guidelines to be followed by state agencies. The office shall ensure <br/>
<a id="pl.11.29"></a><var>11.29</var>compliance with the architecture.<br/>
<a id="pl.11.30"></a><var>11.30</var>    (c) The office shall, in cooperation with state agencies, plan and manage the <br/>
<a id="pl.11.31"></a><var>11.31</var>development and improvement of information systems so that an individual information <br/>
<a id="pl.11.32"></a><var>11.32</var>system reflects and supports the state agency's mission and the state's requirements <br/>
<a id="pl.11.33"></a><var>11.33</var>and functions. The office shall review and approve agency technology plans to ensure <br/>
<a id="pl.12.1"></a><var>12.1</var>consistency with enterprise information and telecommunications technology strategy. By <br/>
<a id="pl.12.2"></a><var>12.2</var>January 15 of each year, the chief information officer must report to the chairs and the <br/>
<a id="pl.12.3"></a><var>12.3</var>ranking minority members of the legislative committees and divisions with jurisdiction over <br/>
<a id="pl.12.4"></a><var>12.4</var>the office regarding the assistance provided under this paragraph. The report must include <br/>
<a id="pl.12.5"></a><var>12.5</var>a listing of agencies that have developed or are developing plans under this paragraph.<br/>
<a id="pl.12.6"></a><var>12.6</var>    (d) The office shall review and approve agency requests for funding for the <br/>
<a id="pl.12.7"></a><var>12.7</var>development or purchase of information systems equipment or software before the <br/>
<a id="pl.12.8"></a><var>12.8</var>requests may be included in the governor's budget.<br/>
<a id="pl.12.9"></a><var>12.9</var>    (e) The office shall review and approve agency requests for grant funding that have <br/>
<a id="pl.12.10"></a><var>12.10</var>an information and technology component.<br/>
<a id="pl.12.11"></a><var>12.11</var>(f) The office shall review major purchases of information systems equipment to:<br/>
<a id="pl.12.12"></a><var>12.12</var>    (1) ensure that the equipment follows the standards and guidelines of the state <br/>
<a id="pl.12.13"></a><var>12.13</var>information architecture;<br/>
<a id="pl.12.14"></a><var>12.14</var>    (2) ensure the agency's proposed purchase reflects a cost-effective policy regarding <br/>
<a id="pl.12.15"></a><var>12.15</var>volume purchasing; and<br/>
<a id="pl.12.16"></a><var>12.16</var>    (3) ensure that the equipment is consistent with other systems in other state agencies <br/>
<a id="pl.12.17"></a><var>12.17</var>so that data can be shared among agencies, unless the office determines that the agency <br/>
<a id="pl.12.18"></a><var>12.18</var>purchasing the equipment has special needs justifying the inconsistency.<br/>
<a id="pl.12.19"></a><var>12.19</var>    (g) The office shall review the operation of information systems by state agencies <br/>
<a id="pl.12.20"></a><var>12.20</var>and ensure that these systems are operated efficiently and securely and continually meet <br/>
<a id="pl.12.21"></a><var>12.21</var>the standards and guidelines established by the office. The standards and guidelines must <br/>
<a id="pl.12.22"></a><var>12.22</var>emphasize uniformity that is cost-effective for the enterprise, that encourages information <br/>
<a id="pl.12.23"></a><var>12.23</var>interchange, open systems environments, and portability of information whenever <br/>
<a id="pl.12.24"></a><var>12.24</var>practicable and consistent with an agency's authority and chapter 13.<br/>
<a id="pl.12.25"></a><var>12.25</var>    (h) The office shall conduct a comprehensive review at least every three years of <br/>
<a id="pl.12.26"></a><var>12.26</var>the information systems investments that have been made by state agencies and higher <br/>
<a id="pl.12.27"></a><var>12.27</var>education institutions. The review must include recommendations on any information <br/>
<a id="pl.12.28"></a><var>12.28</var>systems applications that could be provided in a more cost-beneficial manner by an outside <br/>
<a id="pl.12.29"></a><var>12.29</var>source. The office must report the results of its review to the legislature and the governor.<br/>
<br/>
<a id="bill.0.24.0"></a><a id="pl.12.30"></a><var>12.30</var>    Sec. 24. Minnesota Statutes 2012, section 16E.18, subdivision 8, is amended to read:<br/>
<a id="pl.12.31"></a><var>12.31</var>    Subd. 8. <b>Exemption.</b> The system state information network  is exempt from the <br/>
<a id="pl.12.32"></a><var>12.32</var>five-year five and ten-year limitation on contracts set by sections 
         <statute_ref>16C.05, subdivision 2</statute_ref>, <br/>
<a id="pl.12.33"></a><var>12.33</var>paragraph (b), 
         <statute_ref>16C.08, subdivision 3</statute_ref>, clause (5), and
<statute_ref>16C.09</statute_ref>, clause (6), and section <br/>
<a id="pl.12.34"></a><var>12.34</var>16C.03, subdivision 17. A contract compliance review must be performed by the office on <br/>
<a id="pl.13.1"></a><var>13.1</var>a five-year basis for any contract that has a total term greater than five years. The review <br/>
<a id="pl.13.2"></a><var>13.2</var>must detail any compliance or performance issues on the part of the contractor.<br/>
<br/>
<a id="bill.0.25.0"></a><a id="pl.13.3"></a><var>13.3</var>    Sec. 25. Minnesota Statutes 2012, section 43A.08, subdivision 1a, is amended to read:<br/>
<a id="pl.13.4"></a><var>13.4</var>    Subd. 1a. <b>Additional unclassified positions.</b> Appointing authorities for the <br/>
<a id="pl.13.5"></a><var>13.5</var>following agencies may designate additional unclassified positions according to this <br/>
<a id="pl.13.6"></a><var>13.6</var>subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; <br/>
<a id="pl.13.7"></a><var>13.7</var>Education; Employment and Economic Development; Explore Minnesota Tourism; <br/>
<a id="pl.13.8"></a><var>13.8</var>Management and Budget; Health; Human Rights; Labor and Industry; Natural Resources; <br/>
<a id="pl.13.9"></a><var>13.9</var>Public Safety; Human Services; Revenue; Transportation; and Veterans Affairs; the <br/>
<a id="pl.13.10"></a><var>13.10</var>Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of <br/>
<a id="pl.13.11"></a><var>13.11</var>Investment; the Office of Administrative Hearings; the Office of MN.IT Services; the <br/>
<a id="pl.13.12"></a><var>13.12</var>Offices of the Attorney General, Secretary of State, and State Auditor; the Minnesota State <br/>
<a id="pl.13.13"></a><var>13.13</var>Colleges and Universities; the Minnesota Office of Higher Education; the Perpich Center <br/>
<a id="pl.13.14"></a><var>13.14</var>for Arts Education; and the Minnesota Zoological Board.<br/>
<a id="pl.13.15"></a><var>13.15</var>A position designated by an appointing authority according to this subdivision must <br/>
<a id="pl.13.16"></a><var>13.16</var>meet the following standards and criteria:<br/>
<a id="pl.13.17"></a><var>13.17</var>(1) the designation of the position would not be contrary to other law relating <br/>
<a id="pl.13.18"></a><var>13.18</var>specifically to that agency;<br/>
<a id="pl.13.19"></a><var>13.19</var>(2) the person occupying the position would report directly to the agency head or <br/>
<a id="pl.13.20"></a><var>13.20</var>deputy agency head and would be designated as part of the agency head's management <br/>
<a id="pl.13.21"></a><var>13.21</var>team;<br/>
<a id="pl.13.22"></a><var>13.22</var>(3) the duties of the position would involve significant discretion and substantial <br/>
<a id="pl.13.23"></a><var>13.23</var>involvement in the development, interpretation, and implementation of agency policy;<br/>
<a id="pl.13.24"></a><var>13.24</var>(4) the duties of the position would not require primarily personnel, accounting, or <br/>
<a id="pl.13.25"></a><var>13.25</var>other technical expertise where continuity in the position would be important;<br/>
<a id="pl.13.26"></a><var>13.26</var>(5) there would be a need for the person occupying the position to be accountable to, <br/>
<a id="pl.13.27"></a><var>13.27</var>loyal to, and compatible with, the governor and the agency head, the employing statutory <br/>
<a id="pl.13.28"></a><var>13.28</var>board or commission, or the employing constitutional officer;<br/>
<a id="pl.13.29"></a><var>13.29</var>(6) the position would be at the level of division or bureau director or assistant <br/>
<a id="pl.13.30"></a><var>13.30</var>to the agency head; and<br/>
<a id="pl.13.31"></a><var>13.31</var>(7) the commissioner has approved the designation as being consistent with the <br/>
<a id="pl.13.32"></a><var>13.32</var>standards and criteria in this subdivision.<br/>
<br/>
<a id="bill.0.26.0"></a><a id="pl.13.33"></a><var>13.33</var>    Sec. 26. Minnesota Statutes 2012, section 299C.65, subdivision 1, is amended to read:<br/>
<a id="pl.14.1"></a><var>14.1</var>    Subdivision 1. <b>Membership, duties.</b> (a) The Criminal and Juvenile Justice <br/>
<a id="pl.14.2"></a><var>14.2</var>Information Policy Group consists of the commissioner of corrections, the commissioner <br/>
<a id="pl.14.3"></a><var>14.3</var>of public safety, the state chief information officer, the commissioner of management and <br/>
<a id="pl.14.4"></a><var>14.4</var>budget, four members of the judicial branch appointed by the chief justice of the Supreme <br/>
<a id="pl.14.5"></a><var>14.5</var>Court, and the chair and first vice-chair of the Criminal and Juvenile Justice Information <br/>
<a id="pl.14.6"></a><var>14.6</var>Task Force. The policy group may appoint additional, nonvoting members as necessary <br/>
<a id="pl.14.7"></a><var>14.7</var>from time to time.<br/>
<a id="pl.14.8"></a><var>14.8</var>(b) The commissioner of public safety is designated as the chair of the policy group. <br/>
<a id="pl.14.9"></a><var>14.9</var>The commissioner and the policy group have overall responsibility for the integration of <br/>
<a id="pl.14.10"></a><var>14.10</var>statewide criminal justice information systems. This integration effort shall be known <br/>
<a id="pl.14.11"></a><var>14.11</var>as CriMNet. The policy group may hire an executive director to manage the CriMNet <br/>
<a id="pl.14.12"></a><var>14.12</var>projects and to be responsible for the day-to-day operations of CriMNet. The executive <br/>
<a id="pl.14.13"></a><var>14.13</var>director shall serve at the pleasure of the policy group in unclassified service. The policy <br/>
<a id="pl.14.14"></a><var>14.14</var>group must ensure that generally accepted project management techniques are utilized for <br/>
<a id="pl.14.15"></a><var>14.15</var>each CriMNet project, including:<br/>
<a id="pl.14.16"></a><var>14.16</var>(1) clear sponsorship;<br/>
<a id="pl.14.17"></a><var>14.17</var>(2) scope management;<br/>
<a id="pl.14.18"></a><var>14.18</var>(3) project planning, control, and execution;<br/>
<a id="pl.14.19"></a><var>14.19</var>(4) continuous risk assessment and mitigation;<br/>
<a id="pl.14.20"></a><var>14.20</var>(5) cost management;<br/>
<a id="pl.14.21"></a><var>14.21</var>(6) quality management reviews;<br/>
<a id="pl.14.22"></a><var>14.22</var>(7) communications management;<br/>
<a id="pl.14.23"></a><var>14.23</var>(8) proven methodology; and<br/>
<a id="pl.14.24"></a><var>14.24</var>(9) education and training.<br/>
<a id="pl.14.25"></a><var>14.25</var>(c) Products and services for CriMNet project management, system design, <br/>
<a id="pl.14.26"></a><var>14.26</var>implementation, and application hosting must be acquired using an appropriate <br/>
<a id="pl.14.27"></a><var>14.27</var>procurement process, which includes:<br/>
<a id="pl.14.28"></a><var>14.28</var>(1) a determination of required products and services;<br/>
<a id="pl.14.29"></a><var>14.29</var>(2) a request for proposal development and identification of potential sources;<br/>
<a id="pl.14.30"></a><var>14.30</var>(3) competitive bid solicitation, evaluation, and selection; and<br/>
<a id="pl.14.31"></a><var>14.31</var>(4) contract administration and close-out.<br/>
<a id="pl.14.32"></a><var>14.32</var>(d) The policy group shall study and make recommendations to the governor, the <br/>
<a id="pl.14.33"></a><var>14.33</var>Supreme Court, and the legislature on:<br/>
<a id="pl.14.34"></a><var>14.34</var>(1) a framework for integrated criminal justice information systems, including the <br/>
<a id="pl.14.35"></a><var>14.35</var>development and maintenance of a community data model for state, county, and local <br/>
<a id="pl.14.36"></a><var>14.36</var>criminal justice information;<br/>
<a id="pl.15.1"></a><var>15.1</var>(2) the responsibilities of each entity within the criminal and juvenile justice systems <br/>
<a id="pl.15.2"></a><var>15.2</var>concerning the collection, maintenance, dissemination, and sharing of criminal justice <br/>
<a id="pl.15.3"></a><var>15.3</var>information with one another;<br/>
<a id="pl.15.4"></a><var>15.4</var>(3) actions necessary to ensure that information maintained in the criminal justice <br/>
<a id="pl.15.5"></a><var>15.5</var>information systems is accurate and up-to-date;<br/>
<a id="pl.15.6"></a><var>15.6</var>(4) the development of an information system containing criminal justice <br/>
<a id="pl.15.7"></a><var>15.7</var>information on gross misdemeanor-level and felony-level juvenile offenders that is part of <br/>
<a id="pl.15.8"></a><var>15.8</var>the integrated criminal justice information system framework;<br/>
<a id="pl.15.9"></a><var>15.9</var>(5) the development of an information system containing criminal justice <br/>
<a id="pl.15.10"></a><var>15.10</var>information on misdemeanor arrests, prosecutions, and convictions that is part of the <br/>
<a id="pl.15.11"></a><var>15.11</var>integrated criminal justice information system framework;<br/>
<a id="pl.15.12"></a><var>15.12</var>(6) comprehensive training programs and requirements for all individuals in criminal <br/>
<a id="pl.15.13"></a><var>15.13</var>justice agencies to ensure the quality and accuracy of information in those systems;<br/>
<a id="pl.15.14"></a><var>15.14</var>(7) continuing education requirements for individuals in criminal justice agencies <br/>
<a id="pl.15.15"></a><var>15.15</var>who are responsible for the collection, maintenance, dissemination, and sharing of <br/>
<a id="pl.15.16"></a><var>15.16</var>criminal justice data;<br/>
<a id="pl.15.17"></a><var>15.17</var>(8) a periodic audit process to ensure the quality and accuracy of information <br/>
<a id="pl.15.18"></a><var>15.18</var>contained in the criminal justice information systems;<br/>
<a id="pl.15.19"></a><var>15.19</var>(9) the equipment, training, and funding needs of the state and local agencies that <br/>
<a id="pl.15.20"></a><var>15.20</var>participate in the criminal justice information systems;<br/>
<a id="pl.15.21"></a><var>15.21</var>(10) the impact of integrated criminal justice information systems on individual <br/>
<a id="pl.15.22"></a><var>15.22</var>privacy rights;<br/>
<a id="pl.15.23"></a><var>15.23</var>(11) the impact of proposed legislation on the criminal justice system, including any <br/>
<a id="pl.15.24"></a><var>15.24</var>fiscal impact, need for training, changes in information systems, and changes in processes;<br/>
<a id="pl.15.25"></a><var>15.25</var>(12) the collection of data on race and ethnicity in criminal justice information <br/>
<a id="pl.15.26"></a><var>15.26</var>systems;<br/>
<a id="pl.15.27"></a><var>15.27</var>(13) the development of a tracking system for domestic abuse orders for protection;<br/>
<a id="pl.15.28"></a><var>15.28</var>(14) processes for expungement, correction of inaccurate records, destruction of <br/>
<a id="pl.15.29"></a><var>15.29</var>records, and other matters relating to the privacy interests of individuals; and<br/>
<a id="pl.15.30"></a><var>15.30</var>(15) the development of a database for extended jurisdiction juvenile records and <br/>
<a id="pl.15.31"></a><var>15.31</var>whether the records should be public or private and how long they should be retained.<br/>
<br/>
<a id="bill.0.27.0"></a><a id="pl.15.32"></a><var>15.32</var>    Sec. 27. Minnesota Statutes 2012, section 403.36, subdivision 1, is amended to read:<br/>
<a id="pl.15.33"></a><var>15.33</var>    Subdivision 1. <b>Membership.</b> (a) The commissioner of public safety shall convene <br/>
<a id="pl.15.34"></a><var>15.34</var>and chair the Statewide Radio Board to develop a project plan for a statewide, shared, <br/>
<a id="pl.16.1"></a><var>16.1</var>trunked public safety radio communication system. The system may be referred to as <br/>
<a id="pl.16.2"></a><var>16.2</var>"Allied Radio Matrix for Emergency Response," or "ARMER."<br/>
<a id="pl.16.3"></a><var>16.3</var>(b) The board consists of the following members or their designees:<br/>
<a id="pl.16.4"></a><var>16.4</var>(1) the commissioner of public safety;<br/>
<a id="pl.16.5"></a><var>16.5</var>(2) the commissioner of transportation;<br/>
<a id="pl.16.6"></a><var>16.6</var>(3) the state chief information officer;<br/>
<a id="pl.16.7"></a><var>16.7</var>(4) the commissioner of natural resources;<br/>
<a id="pl.16.8"></a><var>16.8</var>(5) the chief of the Minnesota State Patrol;<br/>
<a id="pl.16.9"></a><var>16.9</var>(6) the commissioner of management and budget;<br/>
<a id="pl.16.10"></a><var>16.10</var>(7) the chair of the Metropolitan Council;<br/>
<a id="pl.16.11"></a><var>16.11</var>(8) (7) two elected city officials, one from the nine-county metropolitan area and one <br/>
<a id="pl.16.12"></a><var>16.12</var>from Greater Minnesota, appointed by the governing body of the League of Minnesota <br/>
<a id="pl.16.13"></a><var>16.13</var>Cities;<br/>
<a id="pl.16.14"></a><var>16.14</var>(9) (8) two elected county officials, one from the nine-county metropolitan area <br/>
<a id="pl.16.15"></a><var>16.15</var>and one from Greater Minnesota, appointed by the governing body of the Association <br/>
<a id="pl.16.16"></a><var>16.16</var>of Minnesota Counties;<br/>
<a id="pl.16.17"></a><var>16.17</var>(10) (9) two sheriffs, one from the nine-county metropolitan area and one from <br/>
<a id="pl.16.18"></a><var>16.18</var>Greater Minnesota, appointed by the governing body of the Minnesota Sheriffs' <br/>
<a id="pl.16.19"></a><var>16.19</var>Association;<br/>
<a id="pl.16.20"></a><var>16.20</var>(11) (10) two chiefs of police, one from the nine-county metropolitan area and one <br/>
<a id="pl.16.21"></a><var>16.21</var>from Greater Minnesota, appointed by the governor after considering recommendations <br/>
<a id="pl.16.22"></a><var>16.22</var>made by the Minnesota Chiefs' of Police Association;<br/>
<a id="pl.16.23"></a><var>16.23</var>(12) (11) two fire chiefs, one from the nine-county metropolitan area and one from <br/>
<a id="pl.16.24"></a><var>16.24</var>Greater Minnesota, appointed by the governor after considering recommendations made <br/>
<a id="pl.16.25"></a><var>16.25</var>by the Minnesota Fire Chiefs' Association;<br/>
<a id="pl.16.26"></a><var>16.26</var>(13) (12) two representatives of emergency medical service providers, one from the <br/>
<a id="pl.16.27"></a><var>16.27</var>nine-county metropolitan area and one from Greater Minnesota, appointed by the governor <br/>
<a id="pl.16.28"></a><var>16.28</var>after considering recommendations made by the Minnesota Ambulance Association;<br/>
<a id="pl.16.29"></a><var>16.29</var>(14) (13) the chair of the regional radio board for the metropolitan area; and<br/>
<a id="pl.16.30"></a><var>16.30</var>(15) (14) a representative of Greater Minnesota elected by those units of government <br/>
<a id="pl.16.31"></a><var>16.31</var>in phase three and any subsequent phase of development as defined in the statewide, <br/>
<a id="pl.16.32"></a><var>16.32</var>shared radio and communication plan, who have submitted a plan to the Statewide Radio <br/>
<a id="pl.16.33"></a><var>16.33</var>Board and where development has been initiated.<br/>
<a id="pl.16.34"></a><var>16.34</var>(c) The Statewide Radio Board shall coordinate the appointment of board members <br/>
<a id="pl.16.35"></a><var>16.35</var>representing Greater Minnesota with the appointing authorities and may designate the <br/>
<a id="pl.17.1"></a><var>17.1</var>geographic region or regions from which an appointed board member is selected where <br/>
<a id="pl.17.2"></a><var>17.2</var>necessary to provide representation from throughout the state.<br/>
<br/>
<a id="bill.0.28.0"></a><a id="pl.17.3"></a><var>17.3</var>    Sec. 28. Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:<br/>
<a id="pl.17.4"></a><var>17.4</var>    Subd. 2b. <b>Counties.</b> (a) For aids payable in 2013 and thereafter, the total aid <br/>
<a id="pl.17.5"></a><var>17.5</var>payable under section 
         <statute_ref>477A.0124, subdivision 3</statute_ref>, is $80,795,000. Each calendar year, <br/>
<a id="pl.17.6"></a><var>17.6</var>$500,000 shall be retained by the commissioner of revenue to make reimbursements to <br/>
<a id="pl.17.7"></a><var>17.7</var>the commissioner of management and budget for payments made under section 
         <statute_ref>611.27</statute_ref>. <br/>
<a id="pl.17.8"></a><var>17.8</var>For calendar year 2004, the amount shall be in addition to the payments authorized <br/>
<a id="pl.17.9"></a><var>17.9</var>under section 
<statute_ref>477A.0124, subdivision 1</statute_ref>. For calendar year 2005 and subsequent <br/>
<a id="pl.17.10"></a><var>17.10</var>years, The amount shall be deducted from the appropriation under this paragraph. The <br/>
<a id="pl.17.11"></a><var>17.11</var>reimbursements shall be to defray the additional costs associated with court-ordered <br/>
<a id="pl.17.12"></a><var>17.12</var>counsel under section 
         <statute_ref>611.27</statute_ref>. Any retained amounts not used for reimbursement in a year <br/>
<a id="pl.17.13"></a><var>17.13</var>shall be included in the next distribution of county need aid that is certified to the county <br/>
<a id="pl.17.14"></a><var>17.14</var>auditors for the purpose of property tax reduction for the next taxes payable year.<br/>
<a id="pl.17.15"></a><var>17.15</var>    (b) For aids payable in 2013 and thereafter, the total aid under section 
         <statute_ref>477A.0124, <br/>
<a id="pl.17.16"></a><var>17.16</var>subdivision 4
         </statute_ref>, is $84,909,575. The commissioner of management and budget shall bill the<br/>
<a id="pl.17.17"></a><var>17.17</var> commissioner of revenue shall transfer to the commissioner of management and budget <br/>
<a id="pl.17.18"></a><var>17.18</var>$207,000 annually for the cost of preparation of local impact notes as required by section <br/>
<statute_ref><a id="pl.17.19"></a><var>17.19</var>3.987
         </statute_ref>, not to exceed $207,000 in fiscal year 2004 and thereafter and other local government <br/>
<a id="pl.17.20"></a><var>17.20</var>activities. The commissioner of education shall bill the commissioner of revenue for the <br/>
<a id="pl.17.21"></a><var>17.21</var>cost of preparation of local impact notes for school districts as required by section 
<statute_ref>3.987</statute_ref>, <br/>
<a id="pl.17.22"></a><var>17.22</var>not to exceed shall transfer to the commissioner of education $7,000 in fiscal year 2004 <br/>
<a id="pl.17.23"></a><var>17.23</var>and thereafter annually for the cost of preparation of local impact notes for school districts <br/>
<a id="pl.17.24"></a><var>17.24</var>as required by section 3.987. The commissioner of revenue shall deduct the amounts billed<br/>
<a id="pl.17.25"></a><var>17.25</var> transferred under this paragraph from the appropriation under this paragraph. The amounts <br/>
<a id="pl.17.26"></a><var>17.26</var>deducted transferred are appropriated to the commissioner of management and budget and <br/>
<a id="pl.17.27"></a><var>17.27</var>the commissioner of education for the preparation of local impact notes respectively.<br/>
<br/>
<a id="bill.0.29.0"></a><a id="pl.17.28"></a><var>17.28</var>    Sec. 29. Laws 2011, First Special Session chapter 10, article 4, section 7, is amended to <br/>
<a id="pl.17.29"></a><var>17.29</var>read:<br/>
<a id="pl.17.30"></a><var>17.30</var>    Sec. 7. <b>STUDY.</b><br/>
<a id="pl.17.31"></a><var>17.31</var>The chief information officer in the Office of Enterprise Technology MN.IT Services <br/>
<a id="pl.17.32"></a><var>17.32</var> shall report to the chairs and ranking minority members of the house of representatives <br/>
<a id="pl.17.33"></a><var>17.33</var>and senate committees with jurisdiction over state government finance by January 15, <br/>
<a id="pl.17.34"></a><var>17.34</var>2014, on the feasibility and desirability of the office entering into service-level agreements <br/>
<a id="pl.18.1"></a><var>18.1</var>with  the senate, the house of representatives, the State Lottery, the Statewide Radio Board, <br/>
<a id="pl.18.2"></a><var>18.2</var>Minnesota State Retirement System, the Public Employees Retirement Association, the <br/>
<a id="pl.18.3"></a><var>18.3</var>Teachers Retirement Association, the State Board of Investment, and the Campaign <br/>
<a id="pl.18.4"></a><var>18.4</var>Finance and Public Disclosure Board regarding provision of information technology <br/>
<a id="pl.18.5"></a><var>18.5</var>systems and services to those entities.<br/>
<br/>
<a id="bill.0.30.0"></a><a id="pl.18.6"></a><var>18.6</var>    Sec. 30. <b>REVISOR'S INSTRUCTION.</b><br/>
<a id="pl.18.7"></a><var>18.7</var>In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall:<br/>
<a id="pl.18.8"></a><var>18.8</var>(1) substitute the term "Office of MN.IT Services" for "Office of Enterprise <br/>
<a id="pl.18.9"></a><var>18.9</var>Technology" in each place where the latter term appears; and<br/>
<a id="pl.18.10"></a><var>18.10</var>(2) substitute the term "MN.IT services revolving fund" for "enterprise technology <br/>
<a id="pl.18.11"></a><var>18.11</var>revolving fund" in each place where the latter term appears.<br/>
<br/>
<a id="bill.0.31.0"></a><a id="pl.18.12"></a><var>18.12</var>    Sec. 31. <b> REPEALER.</b><br/>
<a id="pl.18.13"></a><var>18.13</var>Minnesota Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9; <br/>
<a id="pl.18.14"></a><var>18.14</var>16A.103, subdivision 4; 16A.106; 43A.31, subdivision 2; and 325G.415, are repealed.<br/>