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HF 1389

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 11/21/2013 01:38pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

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A bill for an act
relating to state government; changing certain finance and budget provisions;
adding the Office of MN.IT Services to certain provisions and changing certain
MN.IT provisions; exempting the state information network from certain term
limitations on contracts; amending Minnesota Statutes 2012, sections 3.30,
subdivision 2; 3.3005, subdivision 2, by adding subdivisions; 3.736, subdivision
7; 3.989, subdivision 2; 3D.14; 4.07, subdivision 2; 4A.01, subdivision 3;
4A.02; 15.06, subdivision 1; 15.76, subdivisions 1, 2, 3; 16A.056, subdivision
7; 16A.095; 16A.10, subdivisions 1, 1c; 16A.127, subdivision 4; 16A.96,
subdivision 2; 16E.01, subdivision 1; 16E.015, by adding a subdivision;
16E.04, subdivision 2; 16E.18, subdivision 8; 43A.08, subdivision 1a; 299C.65,
subdivision 1; 403.36, subdivision 1; 477A.03, subdivision 2b; Laws 2011,
First Special Session chapter 10, article 4, section 7; repealing Minnesota
Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9; 16A.103,
subdivision 4; 16A.106; 43A.31, subdivision 2; 325G.415.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 3.30, subdivision 2, is amended to read:


Subd. 2.

Members; duties.

The majority leader of the senate or a designee, the
chair of the senate Committee on Finance, and the chair of the senate Division of Finance
responsible for overseeing the items being considered by the commission, the speaker of
the house or a designee, the chair of the house of representatives Committee on Ways and
Means, and the chair of the appropriate finance committee, or division of the house of
representatives committee responsible for overseeing the items being considered by the
commissioner, constitute the Legislative Advisory Commission. The division chair of
the Finance Committee in the senate and the division chair of the appropriate finance
committee or division in the house of representatives shall rotate according to the items
being considered by the commission. If any of the members elect not to serve on the
commission, the house of which they are members, if in session, shall select some other
member for the vacancy. If the legislature is not in session, vacancies in the house of
representatives membership of the commission shall be filled by the last speaker of the
house or, if the speaker is not available, by the last chair of the house of representatives
Rules Committee, and by the last senate Committee on Committees or other appointing
authority designated by the senate rules in case of a senate vacancy. The commissioner
of management and budget shall be secretary of the commission and keep a permanent
record and minutes of its proceedings, which are public records. The commissioner of
management and budget deleted text beginshall transmit, under section 3.195, a report to the next legislature
of
deleted text end new text beginshall post to the agency Web site new text endall actions of the commission. Members shall receive
traveling and subsistence expenses incurred attending meetings of the commission. The
commission shall meet from time to time upon the call of the governor or upon the
call of the secretary at the request of two or more of its members. A recommendation
of the commission must be made at a meeting of the commission unless a written
recommendation is signed by all the members entitled to vote on the item.

Sec. 2.

Minnesota Statutes 2012, section 3.3005, subdivision 2, is amended to read:


Subd. 2.

Governor's request to legislature.

A state agency shall not expend money
received by it under federal law for any purpose unless a request to spend federal money
from that source for that purpose in that deleted text beginfiscal yeardeleted text endnew text begin bienniumnew text end has been submitted by the
governor to the legislature as a part of a budget request submitted during or within ten days
before the start of a regular legislative session, or unless specifically authorized by law or
as provided by this section. A budget request submitted to the legislature according to this
subdivision must be submitted at least 20 days before the deadline set by the legislature
for legislative budget committees to act on finance bills.

Sec. 3.

Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Approvals for both years of biennium. new text end

new text begin Approval of the spending of
federal funds under subdivision 2 is for the full term of the availability of the federal
funds, up to the end of the biennium that begins July 1 following the submission of the
request. Approval of the spending of federal funds under subdivision 3, 3a, 3b, or 6 is for
the full term of the availability of the federal funds, up to the end of the current biennium.
Approval of the spending for federal funds under subdivision 4 is for the fiscal year for
which the urgency exists.
new text end

Sec. 4.

Minnesota Statutes 2012, section 3.3005, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Request contents. new text end

new text begin A request to spend federal funds submitted under this
section must include the name of the federal grant, the federal agency from which the
funds are available, a federal identification number, a brief description of the purpose of
the grant, the amounts expected by fiscal year, an indication if any state match is required,
an indication if there is a maintenance of effort requirement, and the number of full-time
equivalent positions needed to implement the grant.
new text end

Sec. 5.

Minnesota Statutes 2012, section 3.736, subdivision 7, is amended to read:


Subd. 7.

Payment.

A state agency, including an entity defined as part of the
state in section 3.732, subdivision 1, clause (1), incurring a tort claim judgment or
settlement obligation or whose employees acting within the scope of their employment
incur the obligation shall seek approval to make payment deleted text beginby submitting a written request
to the commissioner of management and budget
deleted text endnew text begin from the commissioner or director
of that agency
new text end. The request shall contain a description of the tort claim that causes
the request, specify the amount of the obligation and be accompanied by copies of
judgments, settlement agreements or other documentation relevant to the obligation for
which the agency seeks payment. Upon receipt of the request and review of the claim,
the commissioner deleted text beginof management and budgetdeleted text end new text beginor director new text endshall determine the proper
appropriation from which to make payment. If there is enough money in an appropriation
or combination of appropriations to the agency for its general operations and management
to pay the claim without unduly hindering the operation of the agency, the commissioner
new text beginor director new text endshall direct that payment be made from that source. Claims relating to activities
paid for by appropriations of dedicated receipts shall be paid from those appropriations if
practicable. On determining that an agency has sufficient money in these appropriations
to pay only part of a claim, the commissioner new text beginof management and budget new text endshall pay the
remainder of the claim from the money appropriated to the commissioner for the purpose.
On determining that the agency does not have enough money to pay any part of the claim,
the commissioner shall pay all of the claim from money appropriated to the commissioner
for the purpose. Payment shall be made only upon receipt of a written release by the
claimant in a form approved by the attorney general, or the person designated as the
university attorney, as the case may be.

No attachment or execution shall issue against the state.

Sec. 6.

Minnesota Statutes 2012, section 3.989, subdivision 2, is amended to read:


Subd. 2.

Compilation of local impact notes.

The commissioner of management
and budget shall deleted text beginprepare by September 1 of each even-numbered year a compilation
of key impact notes requested by the legislature during the previous biennial session
as provided in section 3.987. The commissioner may consult with local government
representatives and legislative fiscal staff to determine which local impact notes were key
deleted text endnew text begin post to the agency Web site a copy of all local impact notesnew text end.

Sec. 7.

Minnesota Statutes 2012, section 3D.14, is amended to read:


3D.14 CONTINUATION BY LAW.

(a) The following departments and agencies must be reviewed according to the
schedule in section 3D.21, but do not expire according to that schedule, unless another law
is enacted providing that the entity does expire:

(1) a department or agency listed in section 15.01deleted text begin,deleted text end or deleted text beginsectiondeleted text end 15.06, subdivision 1
deleted text beginor 1adeleted text end; and

(2) the Office of Higher Education, Explore Minnesota Tourism, and the Public
Utilities Commission.

(b) During the regular session immediately before the sunset of a state agency or an
advisory committee that expires under section 3D.21, the legislature may enact legislation
to continue the agency or advisory committee for a period not to exceed 12 years. This
chapter does not prohibit the legislature from:

(1) terminating a state agency or advisory committee subject to this chapter at a date
earlier than that provided in this chapter; or

(2) considering any other legislation relative to a state agency or advisory committee
subject to this chapter.

Sec. 8.

Minnesota Statutes 2012, section 4.07, subdivision 2, is amended to read:


Subd. 2.

State agency named to act instead.

The governor may designate a state
agency or agencies to act for the governor in applying for, receiving, and accepting federal
funds under the provisions of subdivision 1. deleted text beginSuch designation of a state department or
agency shall be filed in the Office of the Secretary of State.
deleted text end

Sec. 9.

Minnesota Statutes 2012, section 4A.01, subdivision 3, is amended to read:


Subd. 3.

Report.

The commissioner must submit a report to the governor and chairs
and ranking minority members of the senate and house of representatives committees
with jurisdiction on state government finance by January 15 of each year that provides
economic, social, and environmental demographic information to assist public and elected
officials with long-term management decisions. The report must identify and assess
the information important to understanding the state's two-, ten-, and 50-year outlookdeleted text begin,
including the budget implications for those time periods
deleted text end. The report must include the
demographic forecast required by section 4A.02, paragraph (e), and information to assist
with the preparation of the milestones report required by section 4A.11, and may include
policy recommendations based upon the information and assessment provided.

Sec. 10.

Minnesota Statutes 2012, section 4A.02, is amended to read:


4A.02 STATE DEMOGRAPHER.

(a) The commissioner shall appoint a state demographer. The demographer must be
professionally competent in demography and must possess demonstrated ability based
upon past performance.

(b) The demographer shall:

(1) continuously gather and develop demographic data relevant to the state;

(2) design and test methods of research and data collection;

(3) periodically prepare population projections for the state and designated regions
and periodically prepare projections for each county or other political subdivision of the
state as necessary to carry out the purposes of this section;

(4) review, comment on, and prepare analysis of population estimates and
projections made by state agencies, political subdivisions, other states, federal agencies, or
nongovernmental persons, institutions, or commissions;

(5) serve as the state liaison with the United States Bureau of the Census, coordinate
state and federal demographic activities to the fullest extent possible, and aid the
legislature in preparing a census data plan and form for each decennial census;

(6) compile an annual study of population estimates on the basis of county, regional,
or other political or geographical subdivisions as necessary to carry out the purposes of
this section and section 4A.03;

(7) by January 1 of each year, issue a report to the legislature containing an analysis
of the demographic implications of the annual population study and population projections;

(8) prepare maps for all counties in the state, all municipalities with a population
of 10,000 or more, and other municipalities as needed for census purposes, according to
scale and detail recommended by the United States Bureau of the Census, with the maps
of cities showing precinct boundaries;

(9) prepare an estimate of population and of the number of households for each
governmental subdivision for which the Metropolitan Council does not prepare an annual
estimate, and convey the estimates to the governing body of each political subdivision
by June 1 of each year;

(10) direct, under section 414.01, subdivision 14, and certify population and
household estimates of annexed or detached areas of municipalities or towns after being
notified of the order or letter of approval by the chief administrative law judge of the
State Office of Administrative Hearings;

(11) prepare, for any purpose for which a population estimate is required by law
or needed to implement a law, a population estimate of a municipality or town whose
population is affected by action under section 379.02 or 414.01, subdivision 14; and

(12) prepare an estimate of average household size for each statutory or home rule
charter city with a population of 2,500 or more by June 1 of each year.

(c) A governing body may challenge an estimate made under paragraph (b) by filing
their specific objections in writing with the state demographer by June 24. If the challenge
does not result in an acceptable estimate, the governing body may have a special census
conducted by the United States Bureau of the Census. The political subdivision must
notify the state demographer by July 1 of its intent to have the special census conducted.
The political subdivision must bear all costs of the special census. Results of the special
census must be received by the state demographer by the next April 15 to be used in that
year's June 1 estimate to the political subdivision under paragraph (b).

(d) The state demographer shall certify the estimates of population and household
size to the commissioner of revenue by July 15 each year, including any estimates still
under objection.

(e) deleted text beginThe state demographer shall release a demographic forecast in conjunction with
the commissioner of management and budget and the November state economic forecast.
deleted text end

deleted text begin (f)deleted text end The state demographer may contract for the development of data and research
required under this chapter, including, but not limited to, population estimates and
projections, the preparation of maps, and other estimates.

Sec. 11.

Minnesota Statutes 2012, section 15.06, subdivision 1, is amended to read:


Subdivision 1.

Applicability.

This section applies to the following departments
or agencies: the Departments of Administration, Agriculture, Commerce, Corrections,
Education, Employment and Economic Development, Health, Human Rights, Labor and
Industry, Management and Budget, Natural Resources, Public Safety, Human Services,
Revenue, Transportation, and Veterans Affairs; the Housing Finance and Pollution Control
Agencies; the Office of Commissioner of Iron Range Resources and Rehabilitation;
new text begin the Office of MN.IT Services;new text end the Bureau of Mediation Services; and their successor
departments and agencies. The heads of the foregoing departments or agencies are
"commissioners."

Sec. 12.

Minnesota Statutes 2012, section 15.76, subdivision 1, is amended to read:


Subdivision 1.

Program established.

The state agency value initiative (SAVI)
program is established to encourage state agencies to identify cost-effective and efficiency
measures in agency programs and operations that result in cost savings for the state.
All state agenciesdeleted text begin, including Minnesota State Colleges and Universities,deleted text end new text beginnot separately
authorized to carry forward operating funds
new text endmay participate in this program.

Sec. 13.

Minnesota Statutes 2012, section 15.76, subdivision 2, is amended to read:


Subd. 2.

Retained savings.

(a) In order to encourage innovation and creative
cost savings by state employees, upon approval of the commissioner of management
and budget, 50 percent of any appropriations for agency operations that remain unspent
at the end of a biennium because of unanticipated innovation, efficiencies, or creative
cost-savings may be carried forward and retained by the agency to fund specific agency
proposals or projects. Agencies choosing to spend retained savings funds must ensure that
project expenditures do not create future obligations beyond the amounts available from
the retained savings. The retained savings must be used only to fund projects that directly
support the new text beginperformance of the new text endagency's mission. This section does not restrict authority
granted by other law to carry forward money for a different period or for different purposes.

(b) This section supersedes any contrary provision of section 16A.28.

Sec. 14.

Minnesota Statutes 2012, section 15.76, subdivision 3, is amended to read:


Subd. 3.

deleted text beginSpecial peer review panel;deleted text end Review process.

deleted text begin (a) Each participating agency
must organize a peer review panel that will determine which proposal or project receives
funding from the SAVI program. The peer review panel must be comprised of department
employees who are credited with cost-savings initiatives and department managers. The
ratio between managers and department employees must be balanced.
deleted text end

deleted text begin (b)deleted text end An agency may spend money for a project deleted text beginrecommended for funding by the
peer review panel
deleted text end after:

(1) the agency has posted notice of spending for the proposed project on the agency
Web site for at least 30 days; deleted text beginand
deleted text end

(2) the commissioner of management and budget has approved spending money
from the SAVI account for the projectdeleted text begin.deleted text endnew text begin; and
new text end

deleted text begin (c) Before approving a project,deleted text endnew text begin (3)new text end the commissioner deleted text beginof management and budget
must submit the request to
deleted text endnew text begin has notifiednew text end the Legislative Advisory Commission for its
review and deleted text beginrecommendationdeleted text endnew text begin commentnew text end. deleted text beginUpon receiving a request from the commissioner,
the Legislative Advisory Commission shall post notice of the request on a legislative
Web site for at least 30 days. Failure of the commission to make a recommendation
within this 30-day period is considered a negative recommendation. A recommendation
of the commission must be made at a meeting of the commission unless a written
recommendation is signed by all the members entitled to vote on the item.
deleted text end

Sec. 15.

Minnesota Statutes 2012, section 16A.056, subdivision 7, is amended to read:


Subd. 7.

Retention of data.

The database required under this section must include
information beginning with fiscal year deleted text begin2010deleted text endnew text begin 2012new text end appropriations and must retain data
for at least ten years.

Sec. 16.

Minnesota Statutes 2012, section 16A.095, is amended to read:


16A.095 STATE BUDGET SYSTEM.

Subdivision 1.

Rules and instructions.

The commissioner shall make rules and
instructions for budget preparation. They must deal with classifying expenditures and with
the content and submission of budget requests and deleted text beginappropriationdeleted text endnew text begin performancenew text end measures
new text begin for each budget activitynew text end.

Subd. 2.

Budget improvements.

The commissioner may choose executive agencies
to test improvements in the budget system. The commissioner shall recommend required
legislation to install improvements in the budget system for all deleted text beginexecutivedeleted text end agenciesnew text begin that
submit budget information in the system
new text end. The budget system mustnew text begin classify expenditures by
programs and budget activities and
new text end, to the greatest extent practicable, emphasize alternative
approaches in program development and criteria to evaluate and measure performance.

Subd. 2a.

Mutual cooperation; due regard.

Executive agencies must cooperate
with the commissioner in deleted text beginmaking adeleted text endnew text begin preparing thenew text end budget. The budget must meet
the commissioner's requirements while giving due regard to the executive agencies'
requirements.

Sec. 17.

Minnesota Statutes 2012, section 16A.10, subdivision 1, is amended to read:


Subdivision 1.

Budget format.

In each even-numbered calendar year the
commissioner shall prepare budget forms and instructions for all agencies, including
guidelines for reporting agency performance measures, subject to the approval of the
governor. The commissioner shall request and receive advisory recommendations from
the chairs of the senate Finance Committee and house of representatives Ways and
Means Committee before adopting a format for the biennial budget document. By June
15, the commissioner shall send the proposed budget forms to the appropriations and
finance committees. The committees have until July 15 to give the commissioner their
advisory recommendations on possible improvements. To facilitate this consultation, the
commissioner shall establish a working group consisting of executive branch staff and
designees of the chairs of the senate Finance and house of representatives Ways and Means
Committees. The commissioner must involve this group in all stages of development of
budget forms and instructions. The budget format must show actual expenditures and
receipts for the most recent fiscal year, estimated expenditures and receipts for the current
fiscal year, and estimates for each fiscal year of the next biennium. Estimated expenditures
must be classified by funds and character of expenditures and deleted text beginmay bedeleted text end subclassified by
programs and activities. Agency revenue estimates must new text beginhave supporting documentation
to
new text endshow how the estimates were made and what factors were used. Receipts must be
classified by funds, programs, and activities. Expenditure and revenue estimates must be
based on the law in existence at the time the estimates are prepared.

Sec. 18.

Minnesota Statutes 2012, section 16A.10, subdivision 1c, is amended to read:


Subd. 1c.

Performance measures for change items.

For each change item in the
budget proposal requesting new or increased funding, the budget document must present
proposed performance measures that can be used to determine if the new or increased
funding is accomplishing its goals. To the extent possible, each budget change item
must identify relevant deleted text beginMinnesota Milestones and otherdeleted text end statewide goals and indicators
related to the proposed initiative. deleted text beginThe commissioner must report to the Subcommittee on
Government Accountability established under section 3.885, subdivision 10, regarding the
format to be used for the presentation and selection of Minnesota Milestones and other
statewide goals and indicators.
deleted text end

Sec. 19.

Minnesota Statutes 2012, section 16A.127, subdivision 4, is amended to read:


Subd. 4.

Federal proposals.

Agency applications for federal money shall include
necessary submissions to recover both statewide and agency indirect costs. deleted text beginA copy of the
indirect cost submission must be submitted to the commissioner for review.
deleted text end An agency
indirect cost plan is unnecessary if the commissioner determines that the costs incurred in
preparing and maintaining it exceed the benefit received by the state. If less than the entire
agency proposal is federally approved, the commissioner may accept reimbursement of
less than all of the federal receipts. If no federal funds are approved for indirect costs,
the agency must document that fact to the commissioner.

Sec. 20.

Minnesota Statutes 2012, section 16A.96, subdivision 2, is amended to read:


Subd. 2.

Authority.

(a) Subject to the limitations of this subdivision, the
commissioner of management and budget may sell and issue appropriation bonds of the
state under this section for the purposes of the Minnesota pay-for-performance program
established in sections 16A.93 to 16A.96. Proceeds of the bonds must be credited to
a special appropriation bond proceeds account in the state treasury. Net income from
investment of the proceeds, as estimated by the commissioner, must be credited to the
special appropriation bond proceeds account.

(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
the commissioner, are necessary to provide sufficient funds for achieving the purposes
authorized as provided under paragraph (a), and pay debt service, pay costs of issuance,
make deposits to reserve funds, pay the costs of credit enhancement, or make payments
under other agreements entered into under paragraph (d); provided, however, that bonds
issued and unpaid shall not exceed $10,000,000 in principal amount, excluding refunding
bonds sold and issued under subdivision 4. deleted text beginDuring the biennium ending June 30, 2013,
deleted text end The commissioner may sell and issue bonds only in an amount that the commissioner
determines will result in principal and interest payments less than the amount of savings to
be generated through pay-for-performance contracts under section 16A.94. For programs
achieving savings under a pay-for-performance contract, the commissioner must reduce
general fund appropriations by at least the amount of principal and interest payments on
bonds issued under this section.

(c) Appropriation bonds may be issued in one or more series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of bonds may not exceed 20 years.

(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
time thereafter, so long as the appropriation bonds are outstanding, the commissioner
may enter into agreements and ancillary arrangements relating to the appropriation
bonds, including but not limited to trust indentures, liquidity facilities, remarketing or
dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
reimbursement agreements, indexing agreements, or interest exchange agreements. Any
payments made or received according to the agreement or ancillary arrangement shall be
made from or deposited as provided in the agreement or ancillary arrangement. The
determination of the commissioner included in an interest exchange agreement that the
agreement relates to an appropriation bond shall be conclusive.

Sec. 21.

Minnesota Statutes 2012, section 16E.01, subdivision 1, is amended to read:


Subdivision 1.

Creation; chief information officer.

The Office of deleted text beginEnterprise
Technology
deleted text endnew text begin MN.IT Servicesnew text end, referred to in this chapter as the "office," is an agency in
the executive branch headed by new text begina commissioner, who also is new text endthe state chief information
officer. The appointment of the deleted text beginchief information officerdeleted text endnew text begin commissionernew text end is subject to the
advice and consent of the senate under section 15.066.

Sec. 22.

Minnesota Statutes 2012, section 16E.015, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin State information network. new text end

new text begin "State information network" means
optical fiber facilities and terminal equipment used in the delivery of high-speed
telecommunications services.
new text end

Sec. 23.

Minnesota Statutes 2012, section 16E.04, subdivision 2, is amended to read:


Subd. 2.

Responsibilities.

(a) In addition to other activities prescribed by law, the
office shall carry out the duties set out in this subdivision.

(b) The office shall develop and establish a state information architecture to ensure:

(1) that state agency development and purchase of information and communications
systems, equipment, and services is designed to ensure that individual agency information
systems complement and do not needlessly duplicate or conflict with the systems of other
agencies; and

(2) enhanced public access to data can be provided consistent with standards
developed under section 16E.05, subdivision 4.

When state agencies have need for the same or similar public data, the chief information
officer, in coordination with the affected agencies, shall manage the most efficient and
cost-effective method of producing and storing data for or sharing data between those
agencies. The development of this information architecture must include the establishment
of standards and guidelines to be followed by state agencies. The office shall ensure
compliance with the architecture.

(c) The office shall, in cooperation with state agencies, plan and manage the
development and improvement of information systems so that an individual information
system reflects and supports the state agency's mission and the state's requirements
and functions. deleted text beginThe office shall review and approve agency technology plans to ensure
consistency with enterprise information and telecommunications technology strategy. By
January 15 of each year, the chief information officer must report to the chairs and the
ranking minority members of the legislative committees and divisions with jurisdiction over
the office regarding the assistance provided under this paragraph. The report must include
a listing of agencies that have developed or are developing plans under this paragraph.
deleted text end

(d) The office shall review and approve agency requests for funding for the
development or purchase of information systems equipment or software before the
requests may be included in the governor's budget.

(e) The office shall review and approve agency requests for grant funding that have
an information and technology component.

(f) The office shall review major purchases of information systems equipment to:

(1) ensure that the equipment follows the standards and guidelines of the state
information architecture;

(2) ensure the agency's proposed purchase reflects a cost-effective policy regarding
volume purchasing; and

(3) ensure that the equipment is consistent with other systems in other state agencies
so that data can be shared among agencies, unless the office determines that the agency
purchasing the equipment has special needs justifying the inconsistency.

(g) The office shall review the operation of information systems by state agencies
and ensure that these systems are operated efficiently and securely and continually meet
the standards and guidelines established by the office. The standards and guidelines must
emphasize uniformity that is cost-effective for the enterprise, that encourages information
interchange, open systems environments, and portability of information whenever
practicable and consistent with an agency's authority and chapter 13.

deleted text begin (h) The office shall conduct a comprehensive review at least every three years of
the information systems investments that have been made by state agencies and higher
education institutions. The review must include recommendations on any information
systems applications that could be provided in a more cost-beneficial manner by an outside
source. The office must report the results of its review to the legislature and the governor.
deleted text end

Sec. 24.

Minnesota Statutes 2012, section 16E.18, subdivision 8, is amended to read:


Subd. 8.

Exemption.

The deleted text beginsystemdeleted text endnew text begin state information network new text end is exempt from the
deleted text beginfive-yeardeleted text endnew text begin five and ten-yearnew text end limitation on contracts set by sections 16C.05, subdivision 2,
paragraph (b), 16C.08, subdivision 3, clause (5), deleted text beginanddeleted text end 16C.09, clause (6)new text begin, and section
16C.03, subdivision 17. A contract compliance review must be performed by the office on
a five-year basis for any contract that has a total term greater than five years. The review
must detail any compliance or performance issues on the part of the contractor
new text end.

Sec. 25.

Minnesota Statutes 2012, section 43A.08, subdivision 1a, is amended to read:


Subd. 1a.

Additional unclassified positions.

Appointing authorities for the
following agencies may designate additional unclassified positions according to this
subdivision: the Departments of Administration; Agriculture; Commerce; Corrections;
Education; Employment and Economic Development; Explore Minnesota Tourism;
Management and Budget; Health; Human Rights; Labor and Industry; Natural Resources;
Public Safety; Human Services; Revenue; Transportation; and Veterans Affairs; the
Housing Finance and Pollution Control Agencies; the State Lottery; the State Board of
Investment; the Office of Administrative Hearings;new text begin the Office of MN.IT Services;new text end the
Offices of the Attorney General, Secretary of State, and State Auditor; the Minnesota State
Colleges and Universities; the Minnesota Office of Higher Education; the Perpich Center
for Arts Education; and the Minnesota Zoological Board.

A position designated by an appointing authority according to this subdivision must
meet the following standards and criteria:

(1) the designation of the position would not be contrary to other law relating
specifically to that agency;

(2) the person occupying the position would report directly to the agency head or
deputy agency head and would be designated as part of the agency head's management
team;

(3) the duties of the position would involve significant discretion and substantial
involvement in the development, interpretation, and implementation of agency policy;

(4) the duties of the position would not require primarily personnel, accounting, or
other technical expertise where continuity in the position would be important;

(5) there would be a need for the person occupying the position to be accountable to,
loyal to, and compatible with, the governor and the agency head, the employing statutory
board or commission, or the employing constitutional officer;

(6) the position would be at the level of division or bureau director or assistant
to the agency head; and

(7) the commissioner has approved the designation as being consistent with the
standards and criteria in this subdivision.

Sec. 26.

Minnesota Statutes 2012, section 299C.65, subdivision 1, is amended to read:


Subdivision 1.

Membership, duties.

(a) The Criminal and Juvenile Justice
Information Policy Group consists of the commissioner of corrections, the commissioner
of public safety, the state chief information officer, deleted text beginthe commissioner of management and
budget,
deleted text end four members of the judicial branch appointed by the chief justice of the Supreme
Court, and the chair and first vice-chair of the Criminal and Juvenile Justice Information
Task Force. The policy group may appoint additional, nonvoting members as necessary
from time to time.

(b) The commissioner of public safety is designated as the chair of the policy group.
The commissioner and the policy group have overall responsibility for the integration of
statewide criminal justice information systems. This integration effort shall be known
as CriMNet. The policy group may hire an executive director to manage the CriMNet
projects and to be responsible for the day-to-day operations of CriMNet. The executive
director shall serve at the pleasure of the policy group in unclassified service. The policy
group must ensure that generally accepted project management techniques are utilized for
each CriMNet project, including:

(1) clear sponsorship;

(2) scope management;

(3) project planning, control, and execution;

(4) continuous risk assessment and mitigation;

(5) cost management;

(6) quality management reviews;

(7) communications management;

(8) proven methodology; and

(9) education and training.

(c) Products and services for CriMNet project management, system design,
implementation, and application hosting must be acquired using an appropriate
procurement process, which includes:

(1) a determination of required products and services;

(2) a request for proposal development and identification of potential sources;

(3) competitive bid solicitation, evaluation, and selection; and

(4) contract administration and close-out.

(d) The policy group shall study and make recommendations to the governor, the
Supreme Court, and the legislature on:

(1) a framework for integrated criminal justice information systems, including the
development and maintenance of a community data model for state, county, and local
criminal justice information;

(2) the responsibilities of each entity within the criminal and juvenile justice systems
concerning the collection, maintenance, dissemination, and sharing of criminal justice
information with one another;

(3) actions necessary to ensure that information maintained in the criminal justice
information systems is accurate and up-to-date;

(4) the development of an information system containing criminal justice
information on gross misdemeanor-level and felony-level juvenile offenders that is part of
the integrated criminal justice information system framework;

(5) the development of an information system containing criminal justice
information on misdemeanor arrests, prosecutions, and convictions that is part of the
integrated criminal justice information system framework;

(6) comprehensive training programs and requirements for all individuals in criminal
justice agencies to ensure the quality and accuracy of information in those systems;

(7) continuing education requirements for individuals in criminal justice agencies
who are responsible for the collection, maintenance, dissemination, and sharing of
criminal justice data;

(8) a periodic audit process to ensure the quality and accuracy of information
contained in the criminal justice information systems;

(9) the equipment, training, and funding needs of the state and local agencies that
participate in the criminal justice information systems;

(10) the impact of integrated criminal justice information systems on individual
privacy rights;

(11) the impact of proposed legislation on the criminal justice system, including any
fiscal impact, need for training, changes in information systems, and changes in processes;

(12) the collection of data on race and ethnicity in criminal justice information
systems;

(13) the development of a tracking system for domestic abuse orders for protection;

(14) processes for expungement, correction of inaccurate records, destruction of
records, and other matters relating to the privacy interests of individuals; and

(15) the development of a database for extended jurisdiction juvenile records and
whether the records should be public or private and how long they should be retained.

Sec. 27.

Minnesota Statutes 2012, section 403.36, subdivision 1, is amended to read:


Subdivision 1.

Membership.

(a) The commissioner of public safety shall convene
and chair the Statewide Radio Board to develop a project plan for a statewide, shared,
trunked public safety radio communication system. The system may be referred to as
"Allied Radio Matrix for Emergency Response," or "ARMER."

(b) The board consists of the following members or their designees:

(1) the commissioner of public safety;

(2) the commissioner of transportation;

(3) the state chief information officer;

(4) the commissioner of natural resources;

(5) the chief of the Minnesota State Patrol;

(6) deleted text beginthe commissioner of management and budget;
deleted text end

deleted text begin (7)deleted text end the chair of the Metropolitan Council;

deleted text begin (8)deleted text end new text begin(7) new text endtwo elected city officials, one from the nine-county metropolitan area and one
from Greater Minnesota, appointed by the governing body of the League of Minnesota
Cities;

deleted text begin (9)deleted text end new text begin(8) new text endtwo elected county officials, one from the nine-county metropolitan area
and one from Greater Minnesota, appointed by the governing body of the Association
of Minnesota Counties;

deleted text begin (10)deleted text end new text begin(9) new text endtwo sheriffs, one from the nine-county metropolitan area and one from
Greater Minnesota, appointed by the governing body of the Minnesota Sheriffs'
Association;

deleted text begin (11)deleted text end new text begin(10) new text endtwo chiefs of police, one from the nine-county metropolitan area and one
from Greater Minnesota, appointed by the governor after considering recommendations
made by the Minnesota Chiefs' of Police Association;

deleted text begin (12)deleted text end new text begin(11) new text endtwo fire chiefs, one from the nine-county metropolitan area and one from
Greater Minnesota, appointed by the governor after considering recommendations made
by the Minnesota Fire Chiefs' Association;

deleted text begin (13)deleted text end new text begin(12) new text endtwo representatives of emergency medical service providers, one from the
nine-county metropolitan area and one from Greater Minnesota, appointed by the governor
after considering recommendations made by the Minnesota Ambulance Association;

deleted text begin (14)deleted text end new text begin(13) new text endthe chair of the regional radio board for the metropolitan area; and

deleted text begin (15)deleted text end new text begin(14) new text enda representative of Greater Minnesota elected by those units of government
in phase three and any subsequent phase of development as defined in the statewide,
shared radio and communication plan, who have submitted a plan to the Statewide Radio
Board and where development has been initiated.

(c) The Statewide Radio Board shall coordinate the appointment of board members
representing Greater Minnesota with the appointing authorities and may designate the
geographic region or regions from which an appointed board member is selected where
necessary to provide representation from throughout the state.

Sec. 28.

Minnesota Statutes 2012, section 477A.03, subdivision 2b, is amended to read:


Subd. 2b.

Counties.

(a) For aids payable in 2013 and thereafter, the total aid
payable under section 477A.0124, subdivision 3, is $80,795,000. Each calendar year,
$500,000 shall be retained by the commissioner of revenue to make reimbursements to
the commissioner of management and budget for payments made under section 611.27.
deleted text beginFor calendar year 2004, the amount shall be in addition to the payments authorized
under section 477A.0124, subdivision 1. For calendar year 2005 and subsequent
years,
deleted text end The amount shall be deducted from the appropriation under this paragraph. The
reimbursements shall be to defray the additional costs associated with court-ordered
counsel under section 611.27. Any retained amounts not used for reimbursement in a year
shall be included in the next distribution of county need aid that is certified to the county
auditors for the purpose of property tax reduction for the next taxes payable year.

(b) For aids payable in 2013 and thereafter, the total aid under section 477A.0124,
subdivision 4
, is $84,909,575. The deleted text begincommissioner of management and budget shall bill the
deleted text end commissioner of revenue new text beginshall transfer to the commissioner of management and budget
$207,000 annually
new text endfor the cost of preparation of local impact notes as required by section
3.987, deleted text beginnot to exceed $207,000 in fiscal year 2004 and thereafterdeleted text endnew text begin and other local government
activities
new text end. The deleted text begincommissioner of education shall bill thedeleted text end commissioner of revenue deleted text beginfor the
cost of preparation of local impact notes for school districts as required by section 3.987,
not to exceed
deleted text end new text beginshall transfer to the commissioner of education new text end$7,000 deleted text beginin fiscal year 2004
and thereafter
deleted text endnew text begin annually for the cost of preparation of local impact notes for school districts
as required by section 3.987
new text end. The commissioner of revenue shall deduct the amounts deleted text beginbilled
deleted text endnew text begin transferrednew text end under this paragraph from the appropriation under this paragraph. The amounts
deleted text begindeducteddeleted text endnew text begin transferrednew text end are appropriated to the commissioner of management and budget and
the commissioner of education deleted text beginfor the preparation of local impact notesdeleted text endnew text begin respectivelynew text end.

Sec. 29.

Laws 2011, First Special Session chapter 10, article 4, section 7, is amended to
read:


Sec. 7. STUDY.

The chief information officer in the Office of deleted text beginEnterprise Technologydeleted text endnew text begin MN.IT Services
new text end shall report to the chairs and ranking minority members of the house of representatives
and senate committees with jurisdiction over state government finance by January 15,
2014, on the feasibility and desirability of the office entering into service-level agreements
with new text begin the senate, the house of representatives, new text endthe State Lottery, the Statewide Radio Board,
Minnesota State Retirement System, the Public Employees Retirement Association, the
Teachers Retirement Association, the State Board of Investment, and the Campaign
Finance and Public Disclosure Board regarding provision of information technology
systems and services to those entities.

Sec. 30. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall:
new text end

new text begin (1) substitute the term "Office of MN.IT Services" for "Office of Enterprise
Technology" in each place where the latter term appears; and
new text end

new text begin (2) substitute the term "MN.IT services revolving fund" for "enterprise technology
revolving fund" in each place where the latter term appears.
new text end

Sec. 31. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, sections 15.06, subdivision 1a; 16A.06, subdivision 9;
16A.103, subdivision 4; 16A.106; 43A.31, subdivision 2; and 325G.415,
new text end new text begin are repealed.
new text end