HF 2299

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:01am

A bill for an act
relating to state government; consolidating state agency information technology
systems and services; specifying duties for information technology services
and equipment; transferring duties of the chief information officer to the Office
of Enterprise Technology; requiring reports; appropriating money; proposing
coding for new law in Minnesota Statutes, chapter 16E.

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

Section 1.

new text begin [16E.015] RESPONSIBILITY FOR INFORMATION TECHNOLOGY
SERVICES AND EQUIPMENT.
new text end

new text begin (a) The chief information officer is responsible for providing or entering into
managed services contracts for the provision of the following information technology
systems and services to state agencies:
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new text begin (1) state data centers;
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new text begin (2) mainframes including system software;
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new text begin (3) servers including system software;
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new text begin (4) desktops including system software;
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new text begin (5) laptops including system software;
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new text begin (6) a data network including system software;
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new text begin (7) database, e-mail, office systems, reporting, and other standard software tools;
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new text begin (8) help desk for the components listed in clauses (1) to (7);
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new text begin (9) maintenance, problem resolution, and break-fix for the components listed in
clauses (1) to (7); and
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new text begin (10) regular upgrades and replacement for the components listed in clauses (1) to (7).
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new text begin (b) All state agency employees whose work primarily involves functions specified in
paragraph (a) are employees of the Office of Enterprise Technology.
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Sec. 2. new text begin TRANSFER.
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new text begin (a) Powers, duties, responsibilities, assets, personnel, and unexpended appropriations
relating to functions assigned to the chief information officer in Minnesota Statutes,
section 16E.015, are transferred to the Office of Enterprise Technology from all other state
agencies, as defined in Minnesota Statutes, section 16E.03, subdivision 1, paragraph
(e), effective July 1, 2010. Minnesota Statutes, section 15.039, applies to this transfer.
Executive branch officials may use authority under Minnesota Statutes, section 16B.37, as
necessary to implement this section. By January 15, 2010, the chief information officer
shall submit to the legislature any statutory changes needed to complete implementation
of the transfer in this section.
new text end

new text begin (b) Prior to the transfer mandated by this section, the chief information officer must
enter into a service-level agreement with each state agency governing the provision of
information technology systems and services in Minnesota Statutes, section 16E.015.
new text end

Sec. 3. new text begin ENTERPRISE TECHNOLOGY REVOLVING FUND;
APPROPRIATIONS.
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new text begin (a) $9,000,000 for the fiscal year ending June 30, 2010, and $7,000,000 for the
fiscal year ending June 30, 2011, are appropriated from the general fund to the enterprise
technology revolving fund for consolidation of state agency information technology
systems and services specified in Minnesota Statutes, section 16E.015.
new text end

new text begin (b) The chief information officer must utilize the savings allocated to the enterprise
technology revolving fund for purposes of improving the effectiveness and value of the
information technology systems and services specified in Minnesota Statutes, section
16E.015, or other application software or business systems in the state agencies.
new text end

new text begin (c) Through the fiscal year ending June 30, 2013, savings generated in the provision
of the information technology systems and services in Minnesota Statutes, section
16E.015, as compared to the base year of fiscal year ending June 30, 2009, shall be
allocated as follows:
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new text begin (1) Fifty percent to the state agencies divided proportionally to the agencies based
on their respective Office of Enterprise Technology chargeback, 25 percent to the Office
of Enterprise Technology revolving fund, and 25 percent to state agency and Office of
Enterprise Technology employees in proportion to their contribution to the consolidation
effort based on a formula developed in consultation with the relevant bargaining units.
new text end

new text begin (2) Total savings allocated to the enterprise technology revolving fund shall not
exceed $20,000,000. After savings of $20,000,000 has been allocated to the enterprise
technology revolving fund, all subsequent allocations of savings to the enterprise
technology revolving fund as stipulated in clause (1) shall instead be allocated to the
state agencies divided proportionally to the agencies based on their respective Office of
Enterprise Technology chargeback.
new text end

new text begin (3) The service-level agreements between the agencies and the Office of Enterprise
Technology relating to the provision of the information technology systems and services
in Minnesota Statutes, section 16E.015, may include financial penalties and incentives
related to the allocation of savings to the Office of Enterprise Technology revolving fund
in clause (1).
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new text begin (d) Before spending more than $1,000,000 of the appropriation in this section, the
chief information officer must:
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new text begin (1) in consultation with appropriate representatives of affected governmental
entities, analyze the desirability of creating a shared service contract for information
technology systems and services with some or all of the following: the University of
Minnesota, the Minnesota State Colleges and Universities, the city of Minneapolis, the
city of St. Paul, Hennepin County, Ramsey County, the Metropolitan Council, and other
units of local or regional government that the chief information officer believes are
appropriate to this analysis; and
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new text begin (2) complete and report to the chairs and ranking minority members of the house
of representatives and senate state government finance divisions with jurisdiction a
plan for transitioning to a managed services contract that would satisfy the state agency
service-level agreements in section 2, paragraph (b), for the provision of the information
technology systems and services in Minnesota Statutes, section 16E.015;
new text end

new text begin (3) issue a request for proposals for a managed services contract or contracts for
the provision of the information technology systems and services in Minnesota Statutes,
section 16E.015, for the state agencies and for groups participating in a shared service
contract with the state. The request for proposals and any resulting contract or contracts
must:
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new text begin (i) specify that the state and other public groups participating in a shared service
contract retain all responsibility for information technology governance and strategy
decision-making;
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new text begin (ii) provide no reduction in service levels and data security from current levels;
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new text begin (iii) provide protections for the state if the state chooses an alternative provider
after the project is initiated; and
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new text begin (iv) requests for proposals must allow proposal submittals for state-owned, leased,
or outsourced solutions, or a combination thereof, and allow the Office of Enterprise
Technology to propose its solutions approach and to compete with external service
providers; and
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new text begin (4) report the results to the chairs and lead minority members with jurisdiction in the
state government finance divisions in the house of representatives and senate.
new text end

new text begin (e) To the extent that the chief information officer determines it would be
cost-beneficial for the Office of Enterprise Technology to provide the information
technology systems and services, the appropriation in this section may be spent for
development of a migration and operations plan and operation costs. To the extent the
chief information officer determines it would be cost-beneficial to provide information
technology systems and services under a managed services contract or contracts with
external service providers, the appropriation in this section may be spent for entering into
contracts with external service providers for these functions.
new text end

new text begin (f) This section supersedes any portion of Minnesota Statutes, section 16C.08,
16C.09, 43A.047, or 179A.23, to the extent necessary to enter into a managed services
contract or contracts with external service providers specified under this section, if:
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new text begin (1) the state retains responsibility for governance and strategy decision-making;
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new text begin (2) state employees currently providing services that would be subject to the contract
have a fair opportunity to propose their own alternative state employee solution to
compete for the business;
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new text begin (3) the contract would result in no net loss of jobs in the state;
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new text begin (4) all state employees displaced as a result of the contract have an opportunity to
join the firm performing work under the managed services contract, or to transfer to
new positions within state government; and
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new text begin (5) the commissioner of finance determines that the aggregate value of benefits for
employees providing service under the managed services contract are equal to or better
than state benefits.
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