1.1A bill for an act1.2relating to state government; changing certain finance and budget provisions; 1.3adding the Office of MN.IT Services to certain provisions and changing certain 1.4MN.IT provisions; exempting the state information network from certain term 1.5limitations on contracts;amending Minnesota Statutes 2012, sections 3.30, 1.6subdivision 2; 3.3005, subdivision 2, by adding subdivisions; 3.736, subdivision 1.77; 3.989, subdivision 2; 3D.14; 4.07, subdivision 2; 4A.01, subdivision 3; 1.84A.02; 15.06, subdivision 1; 15.76, subdivisions 1, 2, 3; 16A.056, subdivision 1.97; 16A.095; 16A.10, subdivisions 1, 1c; 16A.127, subdivision 4; 16A.96, 1.10subdivision 2; 16E.01, subdivision 1; 16E.015, by adding a subdivision; 1.1116E.04, subdivision 2; 16E.18, subdivision 8; 43A.08, subdivision 1a; 299C.65, 1.12subdivision 1; 403.36, subdivision 1; 477A.03, subdivision 2b; Laws 2011, 1.13First Special Session chapter 10, article 4, section 7; repealing Minnesota 1.14Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9; 16A.103, 1.15subdivision 4; 16A.106; 43A.31, subdivision 2; 325G.415.1.16BE 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 1.19chair of the senate Committee on Finance, and the chair of the senate Division of Finance 1.20responsible for overseeing the items being considered by the commission, the speaker of 1.21the house or a designee, the chair of the house of representatives Committee on Ways and 1.22Means, and the chair of the appropriate finance committee, or division of the house of 1.23representatives committee responsible for overseeing the items being considered by the 1.24commissioner, constitute the Legislative Advisory Commission. The division chair of 1.25the Finance Committee in the senate and the division chair of the appropriate finance 1.26committee or division in the house of representatives shall rotate according to the items 1.27being considered by the commission. If any of the members elect not to serve on the 1.28commission, the house of which they are members, if in session, shall select some other 2.1member for the vacancy. If the legislature is not in session, vacancies in the house of 2.2representatives membership of the commission shall be filled by the last speaker of the 2.3house or, if the speaker is not available, by the last chair of the house of representatives 2.4Rules Committee, and by the last senate Committee on Committees or other appointing 2.5authority designated by the senate rules in case of a senate vacancy. The commissioner 2.6of management and budget shall be secretary of the commission and keep a permanent 2.7record and minutes of its proceedings, which are public records. The commissioner of 2.8management and budget shall transmit, under section 3.195, a report to the next legislature 2.9ofshall post to the agency Web site all actions of the commission. Members shall receive 2.10traveling and subsistence expenses incurred attending meetings of the commission. The 2.11commission shall meet from time to time upon the call of the governor or upon the 2.12call of the secretary at the request of two or more of its members. A recommendation 2.13of the commission must be made at a meeting of the commission unless a written 2.14recommendation 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 2.17received by it under federal law for any purpose unless a request to spend federal money 2.18from that source for that purpose in that fiscal year biennium has been submitted by the 2.19governor to the legislature as a part of a budget request submitted during or within ten days 2.20before the start of a regular legislative session, or unless specifically authorized by law or 2.21as provided by this section. A budget request submitted to the legislature according to this 2.22subdivision must be submitted at least 20 days before the deadline set by the legislature 2.23for legislative budget committees to act on finance bills.2.24    Sec. 3. Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision 2.25to read:2.26    Subd. 7.Approvals for both years of biennium.Approval of the spending of 2.27federal funds under subdivision 2 is for the full term of the availability of the federal 2.28funds, up to the end of the biennium that begins July 1 following the submission of the 2.29request. Approval of the spending of federal funds under subdivision 3, 3a, 3b, or 6 is for 2.30the full term of the availability of the federal funds, up to the end of the current biennium. 2.31Approval of the spending for federal funds under subdivision 4 is for the fiscal year for 2.32which the urgency exists. 3.1    Sec. 4. Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision 3.2to read:3.3    Subd. 8.Request contents.A request to spend federal funds submitted under this 3.4section must include the name of the federal grant, the federal agency from which the 3.5funds are available, a federal identification number, a brief description of the purpose of 3.6the grant, the amounts expected by fiscal year, an indication if any state match is required, 3.7an indication if there is a maintenance of effort requirement, and the number of full-time 3.8equivalent 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 3.11state in section 
         3.732, subdivision 1, clause (1), incurring a tort claim judgment or 3.12settlement obligation or whose employees acting within the scope of their employment 3.13incur the obligation shall seek approval to make payment by submitting a written request 3.14to the commissioner of management and budget from the commissioner or director 3.15of that agency. The request shall contain a description of the tort claim that causes 3.16the request, specify the amount of the obligation and be accompanied by copies of 3.17judgments, settlement agreements or other documentation relevant to the obligation for 3.18which the agency seeks payment. Upon receipt of the request and review of the claim, 3.19the commissioner of management and budgetor director shall determine the proper 3.20appropriation from which to make payment. If there is enough money in an appropriation 3.21or combination of appropriations to the agency for its general operations and management 3.22to pay the claim without unduly hindering the operation of the agency, the commissioner 3.23or director shall direct that payment be made from that source. Claims relating to activities 3.24paid for by appropriations of dedicated receipts shall be paid from those appropriations if 3.25practicable. On determining that an agency has sufficient money in these appropriations 3.26to pay only part of a claim, the commissioner of management and budget shall pay the 3.27remainder of the claim from the money appropriated to the commissioner for the purpose. 3.28On determining that the agency does not have enough money to pay any part of the claim, 3.29the commissioner shall pay all of the claim from money appropriated to the commissioner 3.30for the purpose. Payment shall be made only upon receipt of a written release by the 3.31claimant in a form approved by the attorney general, or the person designated as the 3.32university attorney, as the case may be.3.33No 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 4.2and budget shall prepare by September 1 of each even-numbered year a compilation 4.3of key impact notes requested by the legislature during the previous biennial session 4.4as provided in section 3.987. The commissioner may consult with local government 4.5representatives and legislative fiscal staff to determine which local impact notes were key4.6 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:4.83D.14 CONTINUATION BY LAW.4.9(a) The following departments and agencies must be reviewed according to the 4.10schedule in section 
         3D.21, but do not expire according to that schedule, unless another law 4.11is enacted providing that the entity does expire:4.12(1) a department or agency listed in section 
         15.01, or section15.06, subdivision 1 4.13or 1a; and4.14(2) the Office of Higher Education, Explore Minnesota Tourism, and the Public 4.15Utilities Commission.4.16(b) During the regular session immediately before the sunset of a state agency or an 4.17advisory committee that expires under section 
         3D.21, the legislature may enact legislation 4.18to continue the agency or advisory committee for a period not to exceed 12 years. This 4.19chapter does not prohibit the legislature from:4.20(1) terminating a state agency or advisory committee subject to this chapter at a date 4.21earlier than that provided in this chapter; or4.22(2) considering any other legislation relative to a state agency or advisory committee 4.23subject 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 4.26agency or agencies to act for the governor in applying for, receiving, and accepting federal 4.27funds under the provisions of subdivision 1. Such designation of a state department or 4.28agency 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 4.31and ranking minority members of the senate and house of representatives committees 4.32with jurisdiction on state government finance by January 15 of each year that provides 4.33economic, social, and environmental demographic information to assist public and elected 5.1officials with long-term management decisions. The report must identify and assess 5.2the information important to understanding the state's two-, ten-, and 50-year outlook, 5.3including the budget implications for those time periods. The report must include the 5.4demographic forecast required by section 
         4A.02, paragraph (e), and information to assist 5.5with the preparation of the milestones report required by section 
         4A.11, and may include 5.6policy recommendations based upon the information and assessment provided.5.7    Sec. 10. Minnesota Statutes 2012, section 4A.02, is amended to read:5.84A.02 STATE DEMOGRAPHER.5.9(a) The commissioner shall appoint a state demographer. The demographer must be 5.10professionally competent in demography and must possess demonstrated ability based 5.11upon 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 5.16and periodically prepare projections for each county or other political subdivision of the 5.17state as necessary to carry out the purposes of this section;5.18(4) review, comment on, and prepare analysis of population estimates and 5.19projections made by state agencies, political subdivisions, other states, federal agencies, or 5.20nongovernmental persons, institutions, or commissions;5.21(5) serve as the state liaison with the United States Bureau of the Census, coordinate 5.22state and federal demographic activities to the fullest extent possible, and aid the 5.23legislature 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, 5.25or other political or geographical subdivisions as necessary to carry out the purposes of 5.26this section and section 
         4A.03;5.27(7) by January 1 of each year, issue a report to the legislature containing an analysis 5.28of 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 5.30of 10,000 or more, and other municipalities as needed for census purposes, according to 5.31scale and detail recommended by the United States Bureau of the Census, with the maps 5.32of cities showing precinct boundaries;5.33(9) prepare an estimate of population and of the number of households for each 5.34governmental subdivision for which the Metropolitan Council does not prepare an annual 6.1estimate, and convey the estimates to the governing body of each political subdivision 6.2by June 1 of each year;6.3(10) direct, under section 
         414.01, subdivision 14, and certify population and 6.4household estimates of annexed or detached areas of municipalities or towns after being 6.5notified of the order or letter of approval by the chief administrative law judge of the 6.6State Office of Administrative Hearings;6.7(11) prepare, for any purpose for which a population estimate is required by law 6.8or needed to implement a law, a population estimate of a municipality or town whose 6.9population is affected by action under section 
         379.02 or 
         414.01, subdivision 14; and6.10(12) prepare an estimate of average household size for each statutory or home rule 6.11charter 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 6.13their specific objections in writing with the state demographer by June 24. If the challenge 6.14does not result in an acceptable estimate, the governing body may have a special census 6.15conducted by the United States Bureau of the Census. The political subdivision must 6.16notify the state demographer by July 1 of its intent to have the special census conducted. 6.17The political subdivision must bear all costs of the special census. Results of the special 6.18census must be received by the state demographer by the next April 15 to be used in that 6.19year'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 6.21size to the commissioner of revenue by July 15 each year, including any estimates still 6.22under objection.6.23(e) The state demographer shall release a demographic forecast in conjunction with 6.24the 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 6.26required under this chapter, including, but not limited to, population estimates and 6.27projections, 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 6.30or agencies: the Departments of Administration, Agriculture, Commerce, Corrections, 6.31Education, Employment and Economic Development, Health, Human Rights, Labor and 6.32Industry, Management and Budget, Natural Resources, Public Safety, Human Services, 6.33Revenue, Transportation, and Veterans Affairs; the Housing Finance and Pollution Control 6.34Agencies; 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 7.1departments 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) 7.5program is established to encourage state agencies to identify cost-effective and efficiency 7.6measures in agency programs and operations that result in cost savings for the state. 7.7All state agencies, including Minnesota State Colleges and Universities,not separately 7.8authorized 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 7.11cost savings by state employees, upon approval of the commissioner of management 7.12and budget, 50 percent of any appropriations for agency operations that remain unspent 7.13at the end of a biennium because of unanticipated innovation, efficiencies, or creative 7.14cost-savings may be carried forward and retained by the agency to fund specific agency 7.15proposals or projects. Agencies choosing to spend retained savings funds must ensure that 7.16project expenditures do not create future obligations beyond the amounts available from 7.17the retained savings. The retained savings must be used only to fund projects that directly 7.18support the performance of the agency's mission. This section does not restrict authority 7.19granted 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 7.23must organize a peer review panel that will determine which proposal or project receives 7.24funding from the SAVI program. The peer review panel must be comprised of department 7.25employees who are credited with cost-savings initiatives and department managers. The 7.26ratio between managers and department employees must be balanced.7.27(b) An agency may spend money for a project recommended for funding by the 7.28peer review panel after:7.29(1) the agency has posted notice of spending for the proposed project on the agency 7.30Web site for at least 30 days; and7.31(2) the commissioner of management and budget has approved spending money 7.32from the SAVI account for the project.; and8.1(c) Before approving a project, (3) the commissioner of management and budget 8.2must submit the request to has notified the Legislative Advisory Commission for its 8.3review and recommendation comment. Upon receiving a request from the commissioner, 8.4the Legislative Advisory Commission shall post notice of the request on a legislative 8.5Web site for at least 30 days. Failure of the commission to make a recommendation 8.6within this 30-day period is considered a negative recommendation. A recommendation 8.7of the commission must be made at a meeting of the commission unless a written 8.8recommendation 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 8.11information beginning with fiscal year 2010 2012 appropriations and must retain data 8.12for at least ten years.8.13    Sec. 16. Minnesota Statutes 2012, section 16A.095, is amended to read:8.1416A.095 STATE BUDGET SYSTEM.8.15    Subdivision 1. Rules and instructions. The commissioner shall make rules and 8.16instructions for budget preparation. They must deal with classifying expenditures and with 8.17the content and submission of budget requests and appropriation performance measures8.18 for each budget activity.8.19    Subd. 2. Budget improvements. The commissioner may choose executive agencies 8.20to test improvements in the budget system. The commissioner shall recommend required 8.21legislation to install improvements in the budget system for all executive agencies that 8.22submit budget information in the system. The budget system must classify expenditures by 8.23programs and budget activities and, to the greatest extent practicable, emphasize alternative 8.24approaches in program development and criteria to evaluate and measure performance.8.25    Subd. 2a. Mutual cooperation; due regard. Executive agencies must cooperate 8.26with the commissioner in making a preparing the budget. The budget must meet 8.27the commissioner's requirements while giving due regard to the executive agencies' 8.28requirements.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 8.31commissioner shall prepare budget forms and instructions for all agencies, including 8.32guidelines for reporting agency performance measures, subject to the approval of the 8.33governor. The commissioner shall request and receive advisory recommendations from 9.1the chairs of the senate Finance Committee and house of representatives Ways and 9.2Means Committee before adopting a format for the biennial budget document. By June 9.315, the commissioner shall send the proposed budget forms to the appropriations and 9.4finance committees. The committees have until July 15 to give the commissioner their 9.5advisory recommendations on possible improvements. To facilitate this consultation, the 9.6commissioner shall establish a working group consisting of executive branch staff and 9.7designees of the chairs of the senate Finance and house of representatives Ways and Means 9.8Committees. The commissioner must involve this group in all stages of development of 9.9budget forms and instructions. The budget format must show actual expenditures and 9.10receipts for the most recent fiscal year, estimated expenditures and receipts for the current 9.11fiscal year, and estimates for each fiscal year of the next biennium. Estimated expenditures 9.12must be classified by funds and character of expenditures and may be subclassified by 9.13programs and activities. Agency revenue estimates must have supporting documentation 9.14to show how the estimates were made and what factors were used. Receipts must be 9.15classified by funds, programs, and activities. Expenditure and revenue estimates must be 9.16based 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 9.19budget proposal requesting new or increased funding, the budget document must present 9.20proposed performance measures that can be used to determine if the new or increased 9.21funding is accomplishing its goals. To the extent possible, each budget change item 9.22must identify relevant Minnesota Milestones and other statewide goals and indicators 9.23related to the proposed initiative. The commissioner must report to the Subcommittee on 9.24Government Accountability established under section 3.885, subdivision 10, regarding the 9.25format to be used for the presentation and selection of Minnesota Milestones and other 9.26statewide 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 9.29necessary submissions to recover both statewide and agency indirect costs. A copy of the 9.30indirect cost submission must be submitted to the commissioner for review. An agency 9.31indirect cost plan is unnecessary if the commissioner determines that the costs incurred in 9.32preparing and maintaining it exceed the benefit received by the state. If less than the entire 9.33agency proposal is federally approved, the commissioner may accept reimbursement of 10.1less than all of the federal receipts. If no federal funds are approved for indirect costs, 10.2the 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 10.5commissioner of management and budget may sell and issue appropriation bonds of the 10.6state under this section for the purposes of the Minnesota pay-for-performance program 10.7established in sections 
         16A.93 to 
         16A.96. Proceeds of the bonds must be credited to 10.8a special appropriation bond proceeds account in the state treasury. Net income from 10.9investment of the proceeds, as estimated by the commissioner, must be credited to the 10.10special appropriation bond proceeds account.10.11(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of 10.12the commissioner, are necessary to provide sufficient funds for achieving the purposes 10.13authorized as provided under paragraph (a), and pay debt service, pay costs of issuance, 10.14make deposits to reserve funds, pay the costs of credit enhancement, or make payments 10.15under other agreements entered into under paragraph (d); provided, however, that bonds 10.16issued and unpaid shall not exceed $10,000,000 in principal amount, excluding refunding 10.17bonds 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 10.19determines will result in principal and interest payments less than the amount of savings to 10.20be generated through pay-for-performance contracts under section 
         16A.94. For programs 10.21achieving savings under a pay-for-performance contract, the commissioner must reduce 10.22general fund appropriations by at least the amount of principal and interest payments on 10.23bonds issued under this section.10.24(c) Appropriation bonds may be issued in one or more series on the terms and 10.25conditions the commissioner determines to be in the best interests of the state, but the term 10.26on 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 10.28time thereafter, so long as the appropriation bonds are outstanding, the commissioner 10.29may enter into agreements and ancillary arrangements relating to the appropriation 10.30bonds, including but not limited to trust indentures, liquidity facilities, remarketing or 10.31dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, 10.32reimbursement agreements, indexing agreements, or interest exchange agreements. Any 10.33payments made or received according to the agreement or ancillary arrangement shall be 10.34made from or deposited as provided in the agreement or ancillary arrangement. The 11.1determination of the commissioner included in an interest exchange agreement that the 11.2agreement 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 11.5Technology MN.IT Services, referred to in this chapter as the "office," is an agency in 11.6the executive branch headed by a commissioner, who also is the state chief information 11.7officer. The appointment of the chief information officer commissioner is subject to the 11.8advice 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 11.10to read:11.11    Subd. 5.State information network."State information network" means 11.12optical fiber facilities and terminal equipment used in the delivery of high-speed 11.13telecommunications 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 11.16office 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 11.19systems, equipment, and services is designed to ensure that individual agency information 11.20systems complement and do not needlessly duplicate or conflict with the systems of other 11.21agencies; and11.22(2) enhanced public access to data can be provided consistent with standards 11.23developed under section 
         16E.05, subdivision 4.11.24When state agencies have need for the same or similar public data, the chief information 11.25officer, in coordination with the affected agencies, shall manage the most efficient and 11.26cost-effective method of producing and storing data for or sharing data between those 11.27agencies. The development of this information architecture must include the establishment 11.28of standards and guidelines to be followed by state agencies. The office shall ensure 11.29compliance with the architecture.11.30    (c) The office shall, in cooperation with state agencies, plan and manage the 11.31development and improvement of information systems so that an individual information 11.32system reflects and supports the state agency's mission and the state's requirements 11.33and functions. The office shall review and approve agency technology plans to ensure 12.1consistency with enterprise information and telecommunications technology strategy. By 12.2January 15 of each year, the chief information officer must report to the chairs and the 12.3ranking minority members of the legislative committees and divisions with jurisdiction over 12.4the office regarding the assistance provided under this paragraph. The report must include 12.5a 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 12.7development or purchase of information systems equipment or software before the 12.8requests may be included in the governor's budget.12.9    (e) The office shall review and approve agency requests for grant funding that have 12.10an 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 12.13information architecture;12.14    (2) ensure the agency's proposed purchase reflects a cost-effective policy regarding 12.15volume purchasing; and12.16    (3) ensure that the equipment is consistent with other systems in other state agencies 12.17so that data can be shared among agencies, unless the office determines that the agency 12.18purchasing the equipment has special needs justifying the inconsistency.12.19    (g) The office shall review the operation of information systems by state agencies 12.20and ensure that these systems are operated efficiently and securely and continually meet 12.21the standards and guidelines established by the office. The standards and guidelines must 12.22emphasize uniformity that is cost-effective for the enterprise, that encourages information 12.23interchange, open systems environments, and portability of information whenever 12.24practicable 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 12.26the information systems investments that have been made by state agencies and higher 12.27education institutions. The review must include recommendations on any information 12.28systems applications that could be provided in a more cost-beneficial manner by an outside 12.29source. 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 12.32five-year five and ten-year limitation on contracts set by sections 
         16C.05, subdivision 2, 12.33paragraph (b), 
         16C.08, subdivision 3, clause (5), and16C.09, clause (6), and section 12.3416C.03, subdivision 17. A contract compliance review must be performed by the office on 13.1a five-year basis for any contract that has a total term greater than five years. The review 13.2must 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 13.5following agencies may designate additional unclassified positions according to this 13.6subdivision: the Departments of Administration; Agriculture; Commerce; Corrections; 13.7Education; Employment and Economic Development; Explore Minnesota Tourism; 13.8Management and Budget; Health; Human Rights; Labor and Industry; Natural Resources; 13.9Public Safety; Human Services; Revenue; Transportation; and Veterans Affairs; the 13.10Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of 13.11Investment; the Office of Administrative Hearings; the Office of MN.IT Services; the 13.12Offices of the Attorney General, Secretary of State, and State Auditor; the Minnesota State 13.13Colleges and Universities; the Minnesota Office of Higher Education; the Perpich Center 13.14for Arts Education; and the Minnesota Zoological Board.13.15A position designated by an appointing authority according to this subdivision must 13.16meet the following standards and criteria:13.17(1) the designation of the position would not be contrary to other law relating 13.18specifically to that agency;13.19(2) the person occupying the position would report directly to the agency head or 13.20deputy agency head and would be designated as part of the agency head's management 13.21team;13.22(3) the duties of the position would involve significant discretion and substantial 13.23involvement in the development, interpretation, and implementation of agency policy;13.24(4) the duties of the position would not require primarily personnel, accounting, or 13.25other 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, 13.27loyal to, and compatible with, the governor and the agency head, the employing statutory 13.28board or commission, or the employing constitutional officer;13.29(6) the position would be at the level of division or bureau director or assistant 13.30to the agency head; and13.31(7) the commissioner has approved the designation as being consistent with the 13.32standards 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 14.2Information Policy Group consists of the commissioner of corrections, the commissioner 14.3of public safety, the state chief information officer, the commissioner of management and 14.4budget, four members of the judicial branch appointed by the chief justice of the Supreme 14.5Court, and the chair and first vice-chair of the Criminal and Juvenile Justice Information 14.6Task Force. The policy group may appoint additional, nonvoting members as necessary 14.7from time to time.14.8(b) The commissioner of public safety is designated as the chair of the policy group. 14.9The commissioner and the policy group have overall responsibility for the integration of 14.10statewide criminal justice information systems. This integration effort shall be known 14.11as CriMNet. The policy group may hire an executive director to manage the CriMNet 14.12projects and to be responsible for the day-to-day operations of CriMNet. The executive 14.13director shall serve at the pleasure of the policy group in unclassified service. The policy 14.14group must ensure that generally accepted project management techniques are utilized for 14.15each 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; and14.24(9) education and training.14.25(c) Products and services for CriMNet project management, system design, 14.26implementation, and application hosting must be acquired using an appropriate 14.27procurement 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; and14.31(4) contract administration and close-out.14.32(d) The policy group shall study and make recommendations to the governor, the 14.33Supreme Court, and the legislature on:14.34(1) a framework for integrated criminal justice information systems, including the 14.35development and maintenance of a community data model for state, county, and local 14.36criminal justice information;15.1(2) the responsibilities of each entity within the criminal and juvenile justice systems 15.2concerning the collection, maintenance, dissemination, and sharing of criminal justice 15.3information with one another;15.4(3) actions necessary to ensure that information maintained in the criminal justice 15.5information systems is accurate and up-to-date;15.6(4) the development of an information system containing criminal justice 15.7information on gross misdemeanor-level and felony-level juvenile offenders that is part of 15.8the integrated criminal justice information system framework;15.9(5) the development of an information system containing criminal justice 15.10information on misdemeanor arrests, prosecutions, and convictions that is part of the 15.11integrated criminal justice information system framework;15.12(6) comprehensive training programs and requirements for all individuals in criminal 15.13justice agencies to ensure the quality and accuracy of information in those systems;15.14(7) continuing education requirements for individuals in criminal justice agencies 15.15who are responsible for the collection, maintenance, dissemination, and sharing of 15.16criminal justice data;15.17(8) a periodic audit process to ensure the quality and accuracy of information 15.18contained in the criminal justice information systems;15.19(9) the equipment, training, and funding needs of the state and local agencies that 15.20participate in the criminal justice information systems;15.21(10) the impact of integrated criminal justice information systems on individual 15.22privacy rights;15.23(11) the impact of proposed legislation on the criminal justice system, including any 15.24fiscal 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 15.26systems;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 15.29records, and other matters relating to the privacy interests of individuals; and15.30(15) the development of a database for extended jurisdiction juvenile records and 15.31whether 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 15.34and chair the Statewide Radio Board to develop a project plan for a statewide, shared, 16.1trunked 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 16.12from Greater Minnesota, appointed by the governing body of the League of Minnesota 16.13Cities;16.14(9)(8) two elected county officials, one from the nine-county metropolitan area 16.15and one from Greater Minnesota, appointed by the governing body of the Association 16.16of Minnesota Counties;16.17(10)(9) two sheriffs, one from the nine-county metropolitan area and one from 16.18Greater Minnesota, appointed by the governing body of the Minnesota Sheriffs' 16.19Association;16.20(11)(10) two chiefs of police, one from the nine-county metropolitan area and one 16.21from Greater Minnesota, appointed by the governor after considering recommendations 16.22made by the Minnesota Chiefs' of Police Association;16.23(12)(11) two fire chiefs, one from the nine-county metropolitan area and one from 16.24Greater Minnesota, appointed by the governor after considering recommendations made 16.25by the Minnesota Fire Chiefs' Association;16.26(13)(12) two representatives of emergency medical service providers, one from the 16.27nine-county metropolitan area and one from Greater Minnesota, appointed by the governor 16.28after considering recommendations made by the Minnesota Ambulance Association;16.29(14)(13) the chair of the regional radio board for the metropolitan area; and16.30(15)(14) a representative of Greater Minnesota elected by those units of government 16.31in phase three and any subsequent phase of development as defined in the statewide, 16.32shared radio and communication plan, who have submitted a plan to the Statewide Radio 16.33Board and where development has been initiated.16.34(c) The Statewide Radio Board shall coordinate the appointment of board members 16.35representing Greater Minnesota with the appointing authorities and may designate the 17.1geographic region or regions from which an appointed board member is selected where 17.2necessary 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 17.5payable 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 17.7the commissioner of management and budget for payments made under section 
         611.27. 17.8For calendar year 2004, the amount shall be in addition to the payments authorized 17.9under section 477A.0124, subdivision 1. For calendar year 2005 and subsequent 17.10years, The amount shall be deducted from the appropriation under this paragraph. The 17.11reimbursements shall be to defray the additional costs associated with court-ordered 17.12counsel under section 
         611.27. Any retained amounts not used for reimbursement in a year 17.13shall be included in the next distribution of county need aid that is certified to the county 17.14auditors 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, 17.16subdivision 4
         , is $84,909,575. The commissioner of management and budget shall bill the17.17 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 17.193.987
         , not to exceed $207,000 in fiscal year 2004 and thereafter and other local government 17.20activities. The commissioner of education shall bill the commissioner of revenue for the 17.21cost of preparation of local impact notes for school districts as required by section 3.987, 17.22not to exceedshall transfer to the commissioner of education $7,000 in fiscal year 2004 17.23and thereafter annually for the cost of preparation of local impact notes for school districts 17.24as required by section 3.987. The commissioner of revenue shall deduct the amounts billed17.25 transferred under this paragraph from the appropriation under this paragraph. The amounts 17.26deducted transferred are appropriated to the commissioner of management and budget and 17.27the 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 17.29read:17.30    Sec. 7. STUDY.17.31The 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 17.33and senate committees with jurisdiction over state government finance by January 15, 17.342014, on the feasibility and desirability of the office entering into service-level agreements 18.1with  the senate, the house of representatives, the State Lottery, the Statewide Radio Board, 18.2Minnesota State Retirement System, the Public Employees Retirement Association, the 18.3Teachers Retirement Association, the State Board of Investment, and the Campaign 18.4Finance and Public Disclosure Board regarding provision of information technology 18.5systems and services to those entities.18.6    Sec. 30. REVISOR'S INSTRUCTION.18.7In 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 18.9Technology" in each place where the latter term appears; and18.10(2) substitute the term "MN.IT services revolving fund" for "enterprise technology 18.11revolving fund" in each place where the latter term appears.18.12    Sec. 31.  REPEALER.18.13Minnesota Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9; 18.1416A.103, subdivision 4; 16A.106; 43A.31, subdivision 2; and 325G.415, are repealed.