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SF 3363

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to state government; improving access to budget information by members
of the legislature; specifying the development of budget recommendations and
requiring state agencies to provide information; establishing a subcommittee of
the Legislative Commission on Planning and Fiscal Policy; requiring disclosure
of status of fiscal note requests; providing for appeal of fiscal note conclusions;
modifying state budget requirements; incorporating Minnesota Milestones
goals and indicators in budget preparation; requiring commissioner of finance
to adjust for projected inflation in forecasting state expenditures; requiring a
forecast of cash flow for the general fund; providing deadline for modifying
budget after February forecast; specifying format for detailed budget estimates of
expenditures; imposing deadline for notice of deficiency requests; providing a
process to increase the budget reserve; requiring state agencies with certain
information and telecommunications technology projects to register with the
Office of Enterprise Technology and requiring the office to monitor progress
on the projects; requiring the Office of Enterprise Technology to report to the
legislature regarding its approval process for state agency technology requests
and assistance provided to state agencies in developing agency information
systems plans; providing additional whistleblower protection to state employees;
providing additional duties for the Sesquicentennial Commission; establishing
a working group; eliminating obsolete requirements; amending Minnesota
Statutes 2006, sections 3.885, subdivisions 4, 5, by adding subdivisions; 3.98,
subdivision 4, by adding a subdivision; 3.987, subdivision 1, as amended; 13.605,
subdivision 1; 16A.10, subdivisions 1, 1c, 2, by adding a subdivision; 16A.103,
subdivisions 1a, 1b; 16A.11, subdivisions 1, 3, by adding a subdivision; 16E.01,
subdivision 3; 16E.03, subdivision 1; 16E.04, subdivision 2; Minnesota Statutes
2007 Supplement, sections 16A.152, subdivision 2; 181.932, subdivision 1;
Laws 2005, First Special Session chapter 1, article 4, section 121, subdivision
4, as amended; proposing coding for new law in Minnesota Statutes, chapter
16A; repealing Minnesota Statutes 2006, sections 16A.152, subdivision 1b;
16A.1522, subdivision 4.

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

Section 1.

Minnesota Statutes 2006, section 3.885, subdivision 4, is amended to read:


Subd. 4.

Agencies to cooperate.

All departments, agencies, and education
institutions of the executive and judicial branches must comply with a request of the
commission for information, data, estimates, and statistics on the funding revenue
operations, and other affairs of the department, agency, or education institution. The
commissioner of finance and the commissioner of revenue shall provide the commission
with full and free access to information, data, estimates, and statistics in the possession of
the Finance and Revenue Departments on the state budget, revenue, expenditures, and
tax expenditures.new text begin The agency response to a commission request must be in the format
specified by the commission in the request, if any.
new text end

Sec. 2.

Minnesota Statutes 2006, section 3.885, subdivision 5, is amended to read:


Subd. 5.

Duties.

(a) The commission shall:

(1) provide the legislature with research and analysis of current and projected state
revenue, state expenditures, and state tax expenditures;

(2) provide the legislature with a report analyzing the governor's proposed levels of
revenue and expenditures for biennial budgets submitted under section 16A.11 as well as
other supplemental budget submittals to the legislature by the governor;

(3) provide an analysis of the impact of the governor's proposed revenue and
expenditure plans for the next biennium;

(4) conduct research on matters of economic and fiscal policy and report to the
legislature on the result of the research;

(5) provide economic reports and studies on the state of the state's economy,
including trends and forecasts for consideration by the legislature;

(6) conduct budget and tax studies and provide general fiscal and budgetary
information;

(7) review and make recommendations on the operation of state programs in order
to appraise the implementation of state laws regarding the expenditure of funds and to
recommend means of improving their efficiency;

(8) recommend to the legislature changes in the mix of revenue sources for programs,
in the percentage of state expenditures devoted to major programs, and in the role of the
legislature in overseeing state government expenditures and revenue projections;

(9) make a continuing study and investigation of the building needs of the
government of the state of Minnesota, including, but not limited to the following: the
current and future requirements of new buildings, the maintenance of existing buildings,
rehabilitating and remodeling of old buildings, the planning for administrative offices, and
the exploring of methods of financing building and related costs; deleted text begin and
deleted text end

(10)new text begin develop and make requests to state agencies for budget information and
recommendations; and
new text end

new text begin (11)new text end conduct a continuing study of state-local finance, analyzing and making
recommendations to the legislature on issues including levels of state support for
political subdivisions, basic levels of local need, balances of local revenues and options,
relationship of local taxes to individuals' ability to pay, and financial reporting by political
subdivisions. In conducting this study, the commission shall consult with the governor,
the staff of executive branch agencies, and the governor's Advisory Commission on
State-Local Relations.

(b) In performing its duties under paragraph (a), the commission shall consider,
among other things:

(1) the relative dependence on state tax revenues, federal funds, and user fees
to support state-funded programs, and whether the existing mix of revenue sources is
appropriate, given the purposes of the programs;

(2) the relative percentages of state expenditures that are devoted to major programs
such as education, assistance to local government, aid to individuals, state agencies and
institutions, and debt service; and

(3) the role of the legislature in overseeing state government expenditures, including
legislative appropriation of money from the general fund, legislative appropriation of
money from funds other than the general fund, state agency receipt of money into
revolving and other dedicated funds and expenditure of money from these funds, and
state agency expenditure of federal funds.

(c) The commission's recommendations must consider the long-term needs of the
state. The recommendations must not duplicate work done by standing committees of
the senate and house of representatives.

The commission shall report to the legislature on its activities and recommendations
by January 15 of each odd-numbered year.

The commission shall provide the public with printed and electronic copies of
reports and information for the legislature. Copies must be provided at the actual cost
of furnishing each copy.

Sec. 3.

Minnesota Statutes 2006, section 3.885, is amended by adding a subdivision to
read:


new text begin Subd. 10. new text end

new text begin Budget development. new text end

new text begin The commission or appropriate committee of
the house of representatives or senate may develop budget recommendations to present
to the legislature. If the commission or committees proceed with the development of
budget recommendations, state agencies must provide information to the commission or
committees as requested by the commission to develop those recommendations. That
information includes the base budget, information on how the base budget is determined
and how it is allocated, recommendations from agency staff for changes in the base level
appropriations to improve agency operations and efficiency or to improve or increase
efficiency of programs operated by the agency, and responses to proposals for reductions
in agency budgets.
new text end

Sec. 4.

Minnesota Statutes 2006, section 3.885, is amended by adding a subdivision to
read:


new text begin Subd. 11. new text end

new text begin Subcommittee on Government Accountability. new text end

new text begin The commission must
form a Subcommittee on Government Accountability under section 3.3056 to review
recommendations from the commissioner of finance under section 16A.10, subdivision 1c,
and to review recommendations from the commissioners of finance and administration on
how to improve the use of Minnesota Milestones and other statewide goals and indicators
in state planning and budget documents. The subcommittee shall consider testimony from
representatives from the following organizations and agencies: (1) nonprofit organizations
involved in the preparation of Minnesota Milestones; (2) the University of Minnesota
and other higher education institutions; (3) the Department of Finance and other state
agencies; and (4) other legislators. The subcommittee shall report to the commission by
February 1 of each odd-numbered year with long-range recommendations for the further
implementation and uses of Minnesota Milestones and other government accountability
improvements.
new text end

Sec. 5.

Minnesota Statutes 2006, section 3.98, subdivision 4, is amended to read:


Subd. 4.

Uniform procedure.

The commissioner of finance shall prescribe a
uniform procedure to govern the departments and agencies of the state in complying
with the requirements of this section.new text begin The uniform procedure must include a system
for posting the date a fiscal note was requested, the requested completion date, and the
estimated completion date, as well as the display of those dates on the front page of each
completed fiscal note.
new text end

Sec. 6.

Minnesota Statutes 2006, section 3.98, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Appeals. new text end

new text begin Disputes over the conclusions of a fiscal note for a bill that are
not otherwise resolved may be appealed to the Legislative Commission on Planning and
Fiscal Policy established in section 3.885. To initiate an appeal, the chair of the house of
representatives Committee on Ways and Means or the chair of the senate Committee on
Finance shall submit a written notice of appeal to the chair of the Legislative Commission
on Planning and Fiscal Policy and to the commissioner of finance, with a copy of the
notice also provided to the chief author of the bill. The notice of appeal must identify the
analytical conclusions being contested and the reasons for contesting those conclusions.
The chair of the Legislative Commission on Planning and Fiscal Policy shall schedule a
meeting of the commission to be held no later than five days after the notice of appeal
was submitted. The commission may agree to alter the conclusions of a fiscal note. Any
revised conclusions are considered the final estimate of the fiscal impact of the bill for the
current legislative session, provided that the fiscal elements of the bill remain unchanged
from those considered by the commission.
new text end

Sec. 7.

Minnesota Statutes 2006, section 3.987, subdivision 1, as amended by Laws
2008, chapter 154, article 16, section 1, is amended to read:


Subdivision 1.

Local impact notes.

The commissioner of finance shall coordinate
the development of a local impact note for any proposed legislation introduced after June
30, 1997, upon request of the chair or the ranking minority member of either legislative
Tax new text begin or Finance new text end Committeenew text begin , or the house of representatives Committee on Ways and
Means
new text end . Upon receipt of a request to prepare a local impact note, the commissioner must
notify the authors of the proposed legislation that the request has been made. The local
impact note must be made available to the public upon request. If the action is among the
exceptions listed in section 3.988, a local impact note need not be requested nor prepared.
The commissioner shall make a reasonable and timely estimate of the local fiscal impact
on each type of political subdivision that would result from the proposed legislation.
The commissioner of finance may require any political subdivision or the commissioner
of an administrative agency of the state to supply in a timely manner any information
determined to be necessary to determine local fiscal impact. The political subdivision,
its representative association, or commissioner shall convey the requested information to
the commissioner of finance with a signed statement to the effect that the information is
accurate and complete to the best of its ability. The political subdivision, its representative
association, or commissioner, when requested, shall update its determination of local
fiscal impact based on actual cost or revenue figures, improved estimates, or both.
Upon completion of the note, the commissioner must provide a copy to the authors
of the proposed legislationnew text begin , as well as to the chair and ranking minority member of all
committees to which a bill is referred
new text end .

Sec. 8.

Minnesota Statutes 2006, section 13.605, subdivision 1, is amended to read:


Subdivision 1.

Legislative and budget proposal data.

(a) Definition. As used
in this section, "state administration" means the governor's office, the Department of
Finance, and any state agency that is under the direct control of the governor.

(b) Classifications. Legislative and budget proposals, including preliminary
drafts, that are created, collected, or maintained by the state administration are protected
nonpublic datadeleted text begin . Afterdeleted text end new text begin untilnew text end the budget is presented to the legislature by the state
administrationdeleted text begin , supporting data, including agency requests,deleted text end new text begin andnew text end are public datanew text begin after the
budget is presented to the legislature
new text end . deleted text begin Supporting data do not include preliminary drafts.deleted text end
new text begin Before the budget is presented to the legislature, legislative and budget proposals must be
made available to legislators and legislative staff upon request, but must be treated by the
legislators and legislative staff as protected nonpublic data.
new text end The state administration may
disclose any of the data within the state administration and to the public at any time if
disclosure would aid the administration in considering and preparing its proposals.

Sec. 9.

Minnesota Statutes 2006, 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. new text begin In addition to review required under subdivision 1c, new text end 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 new text begin three new text end most recent fiscal
deleted text begin yeardeleted text end new text begin yearsnew text end , estimated expenditures and receipts for the current fiscal year, and estimates
for each fiscal year of the next biennium. Estimated expenditures must be new text begin submitted in
writing with information that supports the estimated expenditure,
new text end classified by funds and
character of expendituresnew text begin ,new text end and deleted text begin may bedeleted text end subclassified by new text begin individual agency departments and
new text end programs and activities. Agency revenue estimates must show 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 deleted text begin existencedeleted text end
new text begin effect new text end at the time the estimates are prepared.

Sec. 10.

Minnesota Statutes 2006, 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.new text begin To the extent possible, each budget change item must
identify relevant Minnesota Milestones and other statewide goals and indicators related to
the proposed initiative. By June 15 of each even-numbered year, the commissioner must
report to the Subcommittee on Government Accountability established under section
3.885, subdivision 11, regarding the format and process to be used for the presentation and
selection of Minnesota Milestones and other statewide goals and indicators. By July 15 of
each even-numbered year, the subcommittee must recommend the format and process for
use in the preparation of the budget documents.
new text end

Sec. 11.

Minnesota Statutes 2006, section 16A.10, subdivision 2, is amended to read:


Subd. 2.

deleted text begin By October 15 and November 30deleted text end new text begin Filing budget estimatesnew text end .

deleted text begin By October
15 of each even-numbered year, an agency must file the following with the commissioner:
deleted text end

deleted text begin (1) budget estimates for the most recent and current fiscal years;
deleted text end

deleted text begin (2) its upcoming biennial budget estimates;
deleted text end

deleted text begin (3) a comprehensive and integrated statement of agency missions and outcome
and performance measures; and
deleted text end

deleted text begin (4) a concise explanation of any planned changes in the level of services or new
activities.
deleted text end

deleted text begin The commissioner shall prepare and file the budget estimates for an agency failing
to file them. By November 30,
deleted text end new text begin Each department, official, or agency shall, no later
than the first day of October preceding the convening of the legislature, file with the
commissioner and the finance committees of the legislature: (1) its estimates in the form
provided, including a full explanation of its requests for any increased appropriations
and for the expansion of services and the addition of new activities; (2) a statement of
the work accomplished during the preceding biennium and the work proposed to be
done for the next biennium; (3) a list of all employees, their titles, and their salaries;
and (4) a comprehensive and integrated statement of agency missions and outcome and
performance measures. The commissioner shall prepare estimates for all departments,
boards, and agencies that fail to file requests.
new text end The commissioner shall send the final budget
format, agency budget estimates for the next biennium, and copies of the filed material to
the Ways and Means and Finance Committeesdeleted text begin , except that the commissioner shall not be
required to transmit information that identifies executive branch budget decision items
deleted text end .

Sec. 12.

Minnesota Statutes 2006, section 16A.10, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Agency budget requests. new text end

new text begin Whenever a general solicitation for budget
recommendations is communicated to state agencies by the state administration, a copy of
that communication and the agency responses to that request must also be provided to
the chair of the senate Finance Committee and the chair of the house Ways and Means
Committee. All agency budget requests, whether or not included in the governor's budget
recommendations, must be documented in a form developed by the commissioner under
subdivision 1 and submitted as part of the detailed budget estimates under section 16A.11,
subdivision 3.
new text end

Sec. 13.

Minnesota Statutes 2006, section 16A.103, subdivision 1a, is amended to read:


Subd. 1a.

Forecast parameters.

The forecast must assume the continuation of
current laws and reasonable estimates of projected growth in the national and state
economies and affected populations. Revenue must be estimated for all sources provided
for in current law. Expenditures must be estimated for all obligations imposed by law and
those projected to occur as a result of new text begin inflation and other new text end variables outside the control of
the legislature. deleted text begin Expenditure estimates must not include an allowance for inflation.deleted text end new text begin A
general inflation estimate must not include inflation on debt service or on programs for
which a statutory growth factor is already included in the forecast.
new text end

Sec. 14.

Minnesota Statutes 2006, section 16A.103, subdivision 1b, is amended to read:


Subd. 1b.

Forecast variable.

In determining new text begin the rate of inflation, the application
of inflation,
new text end the amount of state bonding as it affects debt service, the calculation of
investment income, and the other variables to be included in the expenditure part of the
forecast, the commissioner must consult with the chairs and lead minority members of the
senate deleted text begin State Governmentdeleted text end Finance Committee and the house Ways and Means Committee,
and legislative fiscal staff. This consultation must occur at least three weeks before the
forecast is to be released. No later than two weeks prior to the release of the forecast,
the commissioner must inform the chairs and lead minority members of the senate
deleted text begin State Governmentdeleted text end Finance Committee and the house Ways and Means Committee, and
legislative fiscal staff of any changes in these variables from the previous forecast.

Sec. 15.

new text begin [16A.107] CASH FLOW FORECAST.
new text end

new text begin Within three weeks after the November forecast of state revenue and expenditures
under section 16A.103, the commissioner shall deliver to the governor and the legislature
a forecast of cash flow for the general fund, showing the expected maximum and minimum
cash balance in the fund for each month of the forecast period.
new text end

Sec. 16.

Minnesota Statutes 2006, section 16A.11, subdivision 1, is amended to read:


Subdivision 1.

When.

The governor shall submit a three-part budget to the
legislature. Parts one and two, the budget message and detailed operating budget, must
be submitted by the fourth Tuesday in January in each odd-numbered year. However,
in a year following the election of a governor who had not been governor the previous
year, parts one and two must be submitted by the third Tuesday in February. Part three,
the detailed recommendations as to capital expenditure, must be submitted as follows:
agency capital budget requests by July 15 of each odd-numbered year, and governor's
recommendations by January 15 of each even-numbered year. Detailed recommendations
as to information technology expenditure must be submitted as part of the detailed
operating budget. Information technology recommendations must include projects to be
funded during the next biennium and planning estimates for an additional two bienniums.
Information technology recommendations must specify purposes of the funding such as
infrastructure, hardware, software, or training.new text begin Any modifications to the operating budget
made necessary by the forecast in February of an odd-numbered year must be submitted
within two weeks after the forecast.
new text end

Sec. 17.

Minnesota Statutes 2006, section 16A.11, subdivision 3, is amended to read:


Subd. 3.

Part two: detailed budget.

(a) Part two of the budget, the detailed
budget estimates both of expenditures and revenues, must contain any statements on the
financial plan which the governor believes desirable or which may be required by the
legislature. The detailed estimates shall include new text begin the budget request of each department
in an agency arranged in tabular form so it may readily be compared with
new text end the governor's
budget deleted text begin arranged in tabular formdeleted text end new text begin for each department or agencynew text end .

(b) Tables listing expenditures for the next biennium must show the appropriation
base for each yearnew text begin in column form broken down by appropriation allotments at budget
activity level relative to proposed appropriation and appropriation allotment levels by
budget activity
new text end . The appropriation base is the amount appropriated for the second year
of the current biennium. The tables must separately show any adjustments to the base
required by current law or policies of the commissioner of finance. For forecasted
programs, the tables must also show the amount of the forecast adjustments, based on the
most recent forecast prepared by the commissioner of finance under section 16A.103. new text begin Any
appropriation change requested by an agency or a department within an agency must be
submitted in writing and include information that supports the requested change.
new text end For all
programs, the tables must show new text begin the agency requests, new text end the amount of appropriation changes
recommended by the governor, after adjustments to the base and forecast adjustments,
and the total recommendation of the governor for that year.

(c) The detailed estimates must include a separate line listing the total cost of
professional and technical service contracts for the prior biennium and the projected costs
of those contracts for the current and upcoming biennium. They must also include a
summary of the personnel employed by the agency, reflected as full-time equivalent
positions.

(d) The detailed estimates for internal service funds must include the number of
full-time equivalents by program; detail on any loans from the general fund, including
dollar amounts by program; proposed investments in technology or equipment of $100,000
or more; an explanation of any operating losses or increases in retained earnings; and a
history of the rates that have been charged, with an explanation of any rate changes and
the impact of the rate changes on affected agencies.

new text begin (e) The detailed estimates must provide a spending trend analysis by program
showing at least the three most recent years of actual spending, or as many years of actual
spending as are available for new programs.
new text end

Sec. 18.

Minnesota Statutes 2006, section 16A.11, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Deficiency requests. new text end

new text begin By January 15 of each year, the commissioner
of finance must notify the chair and ranking minority member of the senate Finance
Committee and the chair and ranking minority member of the house Ways and Means
Committee of any state agency requests to eliminate budget shortfalls likely to occur
before the end of the legislative session.
new text end

Sec. 19.

Minnesota Statutes 2007 Supplement, section 16A.152, subdivision 2, is
amended to read:


Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of finance determines that there will be
a positive unrestricted budgetary general fund balance at the close of the biennium, the
commissioner of finance must allocate money to the following accounts and purposes in
priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches deleted text begin $653,000,000deleted text end new text begin an amount equal to five percent of biennial general fund
expenditures and transfers for the current biennium
new text end ;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve; and

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, paragraph (b), and Laws 2003, First Special Session chapter 9,
article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, section
20, by the same amount.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) To the extent that a positive unrestricted budgetary general fund balance is
projected, appropriations under this section must be made before section 16A.1522 takes
effect.

(d) The commissioner of finance shall certify the total dollar amount of the
reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The
commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

Sec. 20.

Minnesota Statutes 2006, section 16E.01, subdivision 3, is amended to read:


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;

(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;

(8) 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;

(9) promote and coordinate electronic commerce initiatives to ensure that Minnesota
businesses and citizens can successfully compete in the global economy;

(10) 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;

(11) 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;

(12) eliminate unnecessary duplication of existing information and
telecommunications technology systems and services provided by other public and private
organizations while building on the existing governmental, educational, business, health
care, and economic development infrastructures;

(13) identify, sponsor, develop, and execute shared information and
telecommunications technology projects and ongoing operations; and

(14) ensure overall security of the state's information and technology systems and
services.

(b) The chief information officernew text begin ,new text end in consultation with the commissioner of
financenew text begin ,new text end 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 finance 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.

new text begin (c) A state agency that has an information and telecommunications technology
project with a total expected project cost of more than $1,000,000, 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.
new text end

new text begin (d) 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.
new text end

new text begin (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.
new text end

new text begin (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 (2). 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 end

Sec. 21.

Minnesota Statutes 2006, section 16E.03, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

For the purposes of chapter 16E, the following terms
have the meanings given them.

(a) "Information and telecommunications technology systems and services" means
all computing and telecommunications hardware and software, the activities undertaken
to secure that hardware and software, and the activities undertaken to acquire, transport,
process, analyze, store, and disseminate information electronically. "Information and
telecommunications technology systems and services" includes all proposed expenditures
for computing and telecommunications hardware and software, security for that hardware
and software, and related consulting or other professional services.

(b) "Information and telecommunications technology project" means an effort to
acquire or produce information and telecommunications technology systems and services.

(c) "Telecommunications" means voice, video, and data electronic transmissions
transported by wire, wireless, fiber-optic, radio, or other available transport technology.

(d) "Cyber security" means the protection of data and systems in networks connected
to the Internet.

(e) "State agency" means an agency in the executive branch of state government and
includes the Minnesota Office of Higher Education, but does not include the Minnesota
State Colleges and Universities unless specifically provided elsewhere in this chapter.

new text begin (f) "Total expected project cost" includes direct staff costs, all supplemental contract
staff and vendor costs, and costs of hardware and software development or purchase.
Breaking a project into several phases does not affect the cost threshold, which must be
computed based on the full cost of all phases.
new text end

Sec. 22.

Minnesota Statutes 2006, 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
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.
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 assist state agencies in the planning and management of
information systems so that an individual information system reflects and supports the
state agency's mission and the state's requirements and functions. The office shall review
and approve agency technology plans to ensure consistency with enterprise information
and telecommunications technology strategy.new text begin 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.
new 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 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.

(f) 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.

(g) 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.

Sec. 23.

Minnesota Statutes 2007 Supplement, section 181.932, subdivision 1, is
amended to read:


Subdivision 1.

Prohibited action.

An employer shall not discharge, discipline,
threaten, otherwise discriminate against, or penalize an employee regarding the employee's
compensation, terms, conditions, location, or privileges of employment because:

(a) the employee, or a person acting on behalf of an employee, in good faith, reports
a violation or suspected violation of any federal or state law or rule adopted pursuant to
law to an employer or to any governmental body or law enforcement official;

(b) the employee is requested by a public body or office to participate in an
investigation, hearing, inquiry;

(c) the employee refuses an employer's order to perform an action that the employee
has an objective basis in fact to believe violates any state or federal law or rule or
regulation adopted pursuant to law, and the employee informs the employer that the order
is being refused for that reason;

(d) the employee, in good faith, reports a situation in which the quality of health care
services provided by a health care facility, organization, or health care provider violates a
standard established by federal or state law or a professionally recognized national clinical
or ethical standard and potentially places the public at risk of harm; deleted text begin or
deleted text end

(e) a public employee communicates the findings of a scientific or technical study
that the employee, in good faith, believes to be truthful and accurate, including reports to a
governmental body or law enforcement officialnew text begin ; or
new text end

new text begin (f) a state employee communicates to a legislator or constitutional officer
information that the employee, in good faith, believes to be truthful and accurate regarding
ways to improve state services
new text end .

The disclosures protected pursuant to this section do not authorize the disclosure of data
otherwise protected by law.

Sec. 24.

Laws 2005, First Special Session chapter 1, article 4, section 121, subdivision
4, as amended by Laws 2007, chapter 29, section 1, subdivision 4, is amended to read:


Subd. 4.

Duties.

The commission shall have the following duties:

(1) to present to the governor and legislature a plan for grants to pay for capital
improvements on Minnesota's historic public and private buildings, to be known as
sesquicentennial grants;

(2) to seek funding for activities to celebrate the 150th anniversary of statehood, and
to form partnerships with private parties to further this mission;

(3) to present an annual report to the governor and legislature outlining progress
made towards the celebration of the sesquicentennial; deleted text begin anddeleted text end

(4) to encourage all activities celebrating the sesquicentennial to be as energy
efficient as practicablenew text begin ; and
new text end

new text begin (5) to use the results of the Sesquicentennial Plan for Our Future project to help
provide feedback on the selection and use of Minnesota Milestones goals and indicators
new text end .

Sec. 25. new text begin WORKING GROUP FOR MINNESOTA MILESTONES PROCESS
AND INDICATORS.
new text end

new text begin By June 1, 2008, the commissioner of finance shall convene a working group of
state agency staff, legislative staff, and other interested parties to assist in the preparation
of recommendations for the Minnesota Milestones report required under Minnesota
Statutes, section 16A.10, subdivision 1c. The working group shall consider collaborative
opportunities with community organizations and higher education institutions. The
working group expires 30 days after the commissioner has submitted recommendations
required under Minnesota Statutes, section 16A.10, subdivision 1c.
new text end

Sec. 26. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 16A.152, subdivision 1b; and 16A.1522,
subdivision 4,
new text end new text begin are repealed.
new text end

Sec. 27. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end