HF 2110

as introduced - 89th Legislature (2015 - 2016) Posted on 03/25/2015 10:53am

A bill for an act
relating to state government; changing MN.IT operating provisions; changing
information technology provisions; requiring reports; requiring criteria for
state data storage; changing an information technology appropriation transfer;
amending Minnesota Statutes 2014, sections 16E.01; 16E.016; 16E.0465;
16E.14, subdivision 3; 16E.145; 16E.19, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapter 16E.

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

Section 1.

Minnesota Statutes 2014, section 16E.01, is amended to read:

16E.01 OFFICE OF MN.IT SERVICES.

Subdivision 1.

Creation; chief information officer.

The Office of MN.IT Services,
referred to in this chapter as the "office," is an agency in the executive branch headed by
a commissioner, who also is the state chief information officer. The appointment of the
commissioner is subject to the advice and consent of the senate under section 15.066.

Subd. 1a.

Responsibilities.

The office shall provide oversight, leadership, and
direction for information and telecommunications technology policy and the management,
delivery, accessibility, and security of information and telecommunications technology
systems and services in deleted text begin Minnesota deleted text end new text begin the executive branch of state government new text end . The office
shall manage strategic investments in information and telecommunications technology
systems and services to encourage the development of a technically literate society, to
ensure sufficient access to and efficient delivery of accessible new text begin state new text end government services,
and to maximize benefits for the state government as an enterprise.

Subd. 2.

Discretionary powers.

The office may:

(1) enter into contracts for goods or services with public or private organizations
and charge fees for services it provides;

(2) apply for, receive, and expend money from public agencies;

(3) apply for, accept, and disburse grants and other aids from the federal government
and other public or private sources;

(4) enter into contracts with agencies of the federal government, local governmental
units, the University of Minnesota and other educational institutions, and private persons
and other nongovernmental organizations as necessary to perform its statutory duties;

(5) sponsor and conduct conferences and studies, collect and disseminate information,
and issue reports relating to information and communications technology issues; new text begin and
new text end

deleted text begin (6) review the technology infrastructure of regions of the state and cooperate with
and make recommendations to the governor, legislature, state agencies, local governments,
local technology development agencies, the federal government, private businesses,
and individuals for the realization of information and communications technology
infrastructure development potential;
deleted text end

deleted text begin (7) sponsor, support, and facilitate innovative and collaborative economic and
community development and government services projects, including technology
initiatives related to culture and the arts, with public and private organizations; and
deleted text end

deleted text begin (8) deleted text end new text begin (6) new text end review and recommend alternative sourcing strategies for state information
and communications systems.

Subd. 3.

Duties.

(a) The office shall:

(1) manage the efficient and effective use of available federal, state, local, and
public-private resources to develop statewide information and telecommunications
technology systems and services and its infrastructure;

(2) approve state agency and intergovernmental information and telecommunications
technology systems and services development efforts involving state or intergovernmental
funding, including federal funding, provide information to the legislature regarding
projects reviewed, and recommend projects for inclusion in the governor's budget under
section 16A.11;

(3) ensure cooperation and collaboration among state and local governments in
developing intergovernmental information and telecommunications technology systems
and services, and define the structure and responsibilities of a representative governance
structure;

(4) cooperate and collaborate with the legislative and judicial branches in the
development of information and communications systems in those branches;

(5) continue the development of North Star, the state's official comprehensive online
service and information initiative;

(6) promote and collaborate with the state's agencies in the state's transition to an
effectively competitive telecommunications market;

deleted text begin (7) collaborate with entities carrying out education and lifelong learning initiatives
to assist Minnesotans in developing technical literacy and obtaining access to ongoing
learning resources;
deleted text end

deleted text begin (8) deleted text end new text begin (7) new text end promote and coordinate public information access and network initiatives,
consistent with chapter 13, to connect Minnesota's citizens and communities to each
other, to their governments, and to the world;

deleted text begin (9) deleted text end new text begin (8) new text end promote and coordinate electronic commerce initiatives to ensure that
Minnesota businesses and citizens can successfully compete in the global economy;

deleted text begin (10) deleted text end new text begin (9) new text end manage and promote the regular and periodic reinvestment in the information
and telecommunications technology systems and services infrastructure so that state and
local government agencies can effectively and efficiently serve their customers;

deleted text begin (11) deleted text end new text begin (10) new text end facilitate the cooperative development of and ensure compliance with
standards and policies for information and telecommunications technology systems
and services, electronic data practices and privacy, and electronic commerce among
international, national, state, and local public and private organizations;

deleted text begin (12) deleted text end new text begin (11) new text end eliminate unnecessary duplication of existing information and
telecommunications technology systems and services provided by state agencies;

deleted text begin (13) deleted text end new text begin (12) new text end identify, sponsor, develop, and execute shared information and
telecommunications technology projects and ongoing operations;

deleted text begin (14) deleted text end new text begin (13) new text end ensure overall security of the state's information and technology systems
and services; and

deleted text begin (15) deleted text end new text begin (14) new text end manage and direct compliance with accessibility standards for informational
technology, including hardware, software, Web sites, online forms, and online surveys.

(b) The chief information officer, in consultation with the commissioner of
management and budget, must determine when it is cost-effective for agencies to develop
and use shared information and telecommunications technology systems and services for
the delivery of electronic government services. The chief information officer may require
agencies to use shared information and telecommunications technology systems and
services. The chief information officer shall establish reimbursement rates in cooperation
with the commissioner of management and budget to be billed to agencies and other
governmental entities sufficient to cover the actual development, operating, maintenance,
and administrative costs of the shared systems. The methodology for billing may include
the use of interagency agreements, or other means as allowed by law.

(c) A state agency that has an information and telecommunications technology
project with a total expected project cost of more than deleted text begin $1,000,000 deleted text end new text begin $100,000 new text end , whether
funded as part of the biennial budget or by any other means, shall register with the office
by submitting basic project startup documentation, as specified by the chief information
officer in both format and content, before any project funding is requested or committed
and before the project commences. State agency project leaders must demonstrate that
the project will be properly managed, provide updates to the project documentation
as changes are proposed, and regularly report on the current status of the project on a
schedule agreed to with the chief information officer.

(d) deleted text begin The chief information officer shall monitor progress on any active information
and telecommunications technology project with a total expected project cost of more than
$5,000,000 and report on the performance of the project in comparison with the plans for
the project in terms of time, scope, and budget. The chief information officer may conduct
an independent project audit of the project. The audit analysis and evaluation of the
projects subject to paragraph (c) must be presented to agency executive sponsors, the
project governance bodies, and the chief information officer. All reports and responses
must become part of the project record. deleted text end new text begin The chief information officer must prepare a
monthly progress report for each active information and telecommunications technology
project over $1,000,000. The report must be provided to the technology advisory council
and must be available on the office's Web site.
new text end

(e) For any active information and telecommunications technology project with a
total expected project cost of more than $10,000,000, the state agency must perform an
annual independent audit that conforms to published project audit principles promulgated
by the office.

(f) The chief information officer shall report by January 15 of each year to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over the office regarding projects the office has reviewed under paragraph (a),
clause (13). The report must include the reasons for the determinations made in the review
of each project and a description of its current status.

new text begin Subd. 4. new text end

new text begin Limits. new text end

new text begin The office may not enter into any new contracts or other
agreements to provide services to political subdivisions. This subdivision does not prevent
political subdivisions from purchasing goods or services from outside vendors through
state contracts, and does not prevent political subdivisions from accessing geospatial data
maintained by the office.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015. The office may not
enter into a new contract or other agreement or renew an existing contract or agreement
to provide services to political subdivisions in a manner prohibited by subdivision 4 on
or after July 1, 2015. The office must end existing contracts and agreements to provide
services prohibited by subdivision 4 as soon as this can be done without the office
incurring legal liability, and as soon as affected political subdivisions are able to find other
sources to provide the services provided by the office.
new text end

Sec. 2.

Minnesota Statutes 2014, section 16E.016, is amended to read:

16E.016 RESPONSIBILITY FOR INFORMATION TECHNOLOGY
SERVICES AND EQUIPMENT.

(a) The chief information officer is responsible for providing or entering into
managed services contracts for the provision, improvement, and development of the
following information technology systems and services to state agencies:

(1) state data centers;

(2) mainframes including system software;

(3) servers including system software;

(4) desktops including system software;

(5) laptop computers including system software;

(6) a data network including system software;

(7) database, electronic mail, office systems, reporting, and other standard software
tools;

(8) business application software and related technical support services;

(9) help desk for the components listed in clauses (1) to (8);

(10) maintenance, problem resolution, and break-fix for the components listed in
clauses (1) to (8);

(11) regular upgrades and replacement for the components listed in clauses (1)
to (8); and

(12) network-connected output devices.

(b) All state agency employees whose work primarily involves functions specified in
paragraph (a) are employees of the Office of MN.IT Services. This includes employees
who directly perform the functions in paragraph (a), as well as employees whose work
primarily involves managing, supervising, or providing administrative services or support
services to employees who directly perform these functions. The chief information officer
may assign employees of the office to perform work exclusively for another state agency.

(c) deleted text begin Subject to sections 16C.08 and 16C.09, the chief information officer may allow a
state agency to obtain services specified in paragraph (a) through a contract with an outside
vendor when the chief information officer and the agency head agree that a contract would
provide best value, as defined in section 16C.02, under the service-level agreement. deleted text end new text begin A
state agency must enter into a service-level agreement with the chief information officer
for provision of services specified in paragraph (a), or must obtain some or all of these
services through an outside vendor. Before entering into a service-level agreement or
outside vendor contract, an agency must solicit proposals from the office and from at least
one outside vendor. If the cost of the proposal from the office is more than six percent
higher than the cost of a proposal from an outside vendor, the agency may enter into a
contract with an outside vendor, notwithstanding sections 16C.08, subdivision 2, clause
(1); 16C.09, paragraph (a), clause (1); and 43A.047. new text end The chief information officer must
require that agency contracts with outside vendors ensure that systems and services are
compatible with standards established by the Office of MN.IT Services. new text begin The term of a
service-level agreement or a contract under this paragraph is subject to the limits in section
16C.06, subdivision 3b. However, the chief information officer may provide that the term
of the first agreement or contract entered into after the effective date of this section may be
longer, as the chief information officer determines is necessary to establish a system under
which agency agreements and contracts will expire according to a staggered schedule.
A service-level agreement or contract may not be for a term of more than six years. A
contract longer than four years must be followed by a contract of less than four years.
new text end

(d) new text begin The chief information officer may authorize a state agency office located outside
of the seven-county metropolitan area to solicit proposals from MN.IT services and from
an outside vendor separately from the rest of the agency.
new text end

new text begin (e) An agency may not enter into a contract for information technology systems or
services of more than $100,000 with an outside vendor without approval of the chief
information officer.
new text end

new text begin (f) new text end The Minnesota State Retirement System, the Public Employees Retirement
Association, the Teachers Retirement Association, the State Board of Investment, the
Campaign Finance and Public Disclosure Board, the State Lottery, and the Statewide
Radio Board are not state agencies for purposes of this section.

Sec. 3.

new text begin [16E.034] ANNUAL REPORT ON IT SPENDING.
new text end

new text begin (a) The chief information officer, in consultation with the commissioner of
management and budget, must report by September 1 each year on:
new text end

new text begin (1) total state agency spending on information technology in the prior fiscal year, and
planned state agency spending on information technology in the current fiscal year; and
new text end

new text begin (2) individual state agency spending on information technology in the prior fiscal
year, and planned spending on information technology in the current fiscal year.
new text end

new text begin (b) The report in paragraph (a) on total state agency and individual agency spending
and proposed spending must show amounts spent and anticipated to be spent in each of
the following categories:
new text end

new text begin (1) new technology projects, or enhancement of existing projects, of more than
$100,000;
new text end

new text begin (2) business as usual and minor enhancements; and
new text end

new text begin (3) infrastructure and operations.
new text end

new text begin (c) The information reported on infrastructure and operations in paragraph (b),
clause (3), must be further divided, by agency, into the following categories:
new text end

new text begin (1) servers;
new text end

new text begin (2) messaging and collaboration;
new text end

new text begin (3) mainframe;
new text end

new text begin (4) storage;
new text end

new text begin (5) database, including administration;
new text end

new text begin (6) technical support;
new text end

new text begin (7) information security;
new text end

new text begin (8) directory administration;
new text end

new text begin (9) architecture;
new text end

new text begin (10) monitoring; and
new text end

new text begin (11) change management.
new text end

Sec. 4.

Minnesota Statutes 2014, section 16E.0465, is amended to read:

16E.0465 TECHNOLOGY APPROVAL.

Subdivision 1.

Application.

This section applies to an appropriation of more than
deleted text begin $1,000,000 deleted text end new text begin $100,000 new text end of state or federal funds to a state agency for any information and
telecommunications technology project or for any phase of such a project, device, or
system. For purposes of this section, an appropriation of state or federal funds to a state
agency includes an appropriation:

(1) to a constitutional officer;

(2) for a project that includes both a state agency and units of local government; and

(3) to a state agency for grants to be made to other entities.

Subd. 2.

Required review and approval.

(a) A state agency receiving an
appropriation new text begin of more than $500,000 new text end for an information and telecommunications
technology project subject to this section must divide the project into phases.

(b) The commissioner of management and budget may not authorize the
encumbrance or expenditure of an appropriation of state funds to a state agency for deleted text begin any deleted text end new text begin :
new text end

new text begin (1) a project if the project is subject to this section, but not divided into phases; or
new text end

new text begin (2) a new text end phase of a project, device, or system subject to this section new text begin , new text end unless the Office of
MN.IT Services has reviewed new text begin the project or new text end each phase of the project, device, or system,
and based on this review, the chief information officer has determined for each new text begin project
or new text end phase that:

deleted text begin (1) deleted text end new text begin (i) new text end the project is compatible with the state information architecture and other
policies and standards established by the chief information officer;

deleted text begin (2) deleted text end new text begin (ii) new text end the agency is able to accomplish the goals of the phase of the project with the
funds appropriated; and

deleted text begin (3) deleted text end new text begin (iii) new text end the project supports the enterprise information technology strategy.

new text begin Subd. 4. new text end

new text begin Monitor progress. new text end

new text begin The chief information officer shall monitor progress on
any active information and telecommunications technology project with a total expected
project cost of more than $5,000,000 and report on the performance of the project in
comparison with the plans for the project in terms of time, scope, and budget. The chief
information officer may conduct an independent project audit of the project. The audit
analysis and evaluation of the projects must be presented to agency executive sponsors,
the project governance bodies, and the chief information officer. All reports and responses
must become part of the project record.
new text end

Sec. 5.

Minnesota Statutes 2014, section 16E.14, subdivision 3, is amended to read:

Subd. 3.

Reimbursements.

Except as specifically provided otherwise by law, each
agency shall reimburse the MN.IT services revolving fund for the cost of all services,
supplies, materials, labor, new text begin employee development and training, new text end and depreciation of
equipment, including reasonable overhead costs, which the chief information officer is
authorized and directed to furnish an agency. The chief information officer shall report the
rates to be charged for the revolving fund no later than July 1 each year to the chair of the
committee or division in the senate and house of representatives with primary jurisdiction
over the budget of the Office of MN.IT Services.

Sec. 6.

Minnesota Statutes 2014, section 16E.145, is amended to read:

16E.145 INFORMATION TECHNOLOGY APPROPRIATION.

An appropriation new text begin of more than $100,000 new text end for a state agency information and
telecommunications technology project must be made to the chief information officer. The
chief information officer must manage and disburse the appropriation on behalf of the
sponsoring state agency. Any appropriation for an information and telecommunications
technology project made to a state agency other than the Office of MN.IT Services is
transferred to the chief information officer.

Sec. 7.

Minnesota Statutes 2014, section 16E.19, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Data storage. new text end

new text begin The chief information officer must establish criteria for
storage of state agency data outside of data centers operated by the chief information
officer. These criteria must include thresholds for when requests of outside data storage
must be approved by the chief information officer.
new text end

Sec. 8. new text begin REPORT ON AGENCY CHIEF INFORMATION OFFICERS.
new text end

new text begin The chief information officer of MN.IT must report to the legislature by January 15,
2016, on reduction in the number of chief information officers (CIOs) in state agencies.
The report must include the number of CIOs on July 1, 2015, the number on January
15, 2016, and plans to reduce that number.
new text end