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SF 2966

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/15/2018 12:24pm

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

Current Version - 1st Engrossment

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A bill for an act
relating to state government; abolishing the Office of MN.IT Services; establishing
a division of information technology within the Department of Administration;
permitting agencies more flexibility in contracting for information technology
projects; amending Minnesota Statutes 2016, sections 16E.01, subdivision 1;
16E.015, by adding a subdivision; 16E.016; 16E.02; 16E.055; 16E.14; 16E.18,
subdivision 4; Minnesota Statutes 2017 Supplement, section 16E.0466, subdivision
1; proposing coding for new law in Minnesota Statutes, chapter 3; repealing
Minnesota Statutes 2016, section 16E.145.

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

Section 1.

new text begin [3.9736] EVALUATION OF INFORMATION TECHNOLOGY
PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "information technology project"
means a project performed by the Division of Information Technology under a service-level
agreement for a state agency.
new text end

new text begin Subd. 2. new text end

new text begin Selection of project for review; schedule for evaluation; report. new text end

new text begin Annually,
the legislative auditor shall submit to the Legislative Audit Commission a list of three to
five information technology projects proposed for review. In selecting projects to include
on the list, the legislative auditor may consider the cost of the project to the state, the impact
of the project on state agencies and public users, and the legislature's interest in ensuring
that state agencies meet the needs of the public. The legislative auditor may include
completed projects and ongoing projects and shall give particular consideration to forensic
review of high-profile problematic projects from which recommendations may be developed
to prevent problems on future projects. Annually, the Legislative Audit Commission shall
select at least one information technology project for the legislative auditor's evaluation.
The legislative auditor shall evaluate the selected information technology project according
to an evaluation plan established under subdivision 3 and submit a written report to the
Legislative Audit Commission.
new text end

new text begin Subd. 3. new text end

new text begin Evaluation plan. new text end

new text begin By November 1, 2018, the Legislative Audit Commission
shall establish an evaluation plan that identifies elements the legislative auditor must include
in an evaluation of an information technology project. The Legislative Audit Commission
may modify the evaluation plan as needed.
new text end

Sec. 2.

Minnesota Statutes 2016, section 16E.01, subdivision 1, is amended to read:


Subdivision 1.

Creationdeleted text begin; chief information officerdeleted text end.

The deleted text beginOffice of MN.IT Servicesdeleted text endnew text begin
Division of Information Technology
new text end, referred to in this chapter as the deleted text begin"office,"deleted text endnew text begin "division,"new text end
is deleted text beginan agency in the executive branch headed by adeleted text end new text beginunder the supervision of the new text endcommissionerdeleted text begin,
who also is the state chief information officer
deleted text endnew text begin of administrationnew text end. The appointment of the
commissioner is subject to the advice and consent of the senate under section 15.066.

Sec. 3.

Minnesota Statutes 2016, section 16E.015, is amended by adding a subdivision to
read:


new text begin Subd. 2a. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of administration.
new text end

Sec. 4.

Minnesota Statutes 2016, 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;

deleted text begin (4) desktops including system software;
deleted text end

deleted text begin (5) laptop computers including system software;
deleted text end

deleted text begin (6)deleted text end new text begin(4) new text enda data network including system software;

deleted text begin (7) database,deleted text endnew text begin (5)new text end electronic maildeleted text begin, office systems, reporting, and other standard software
tools
deleted text end;

deleted text begin (8) business application software and related technical support services;
deleted text end

deleted text begin (9)deleted text endnew text begin (6)new text end help desk for the components listed in clauses (1) to deleted text begin(8)deleted text endnew text begin (5)new text end;

deleted text begin (10)deleted text endnew text begin (7)new text end maintenance, problem resolution, and break-fix for the components listed in
clauses (1) to deleted text begin(8)deleted text endnew text begin (5)new text end;new text begin and
new text end

deleted text begin (11)deleted text endnew text begin (8)new text end regular upgrades and replacement for the components listed in clauses (1) to
deleted text begin (8); anddeleted text endnew text begin (5).
new text end

deleted text begin (12) network-connected output devices.
deleted text end

new text begin (b) 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 a state agency, at the request of the agency:
new text end

new text begin (1) desktops including system software;
new text end

new text begin (2) laptop computers including system software;
new text end

new text begin (3) database, office systems, reporting, and other standard software tools;
new text end

new text begin (4) business application software and related technical support services;
new text end

new text begin (5) help desk for the components listed in clauses (1) to (4);
new text end

new text begin (6) maintenance, problem resolution, and break-fix for the components listed in clauses
(1) to (4);
new text end

new text begin (7) regular upgrades and replacement for the components listed in clauses (1) to (4); and
new text end

new text begin (8) network-connected output devices.
new text end

deleted text begin (b)deleted text end new text begin(c) new text endAll state agency employees whose work primarily involves functions specified
in paragraph (a) are employees deleted text beginof the Office of MN.IT Servicesdeleted text endnew text begin in the Division of Information
Technology under the Department of Administration
new text end. 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 deleted text beginofficedeleted text endnew text begin divisionnew text end to perform work exclusively for another state agency.

deleted text begin (c)deleted text endnew text begin (d)new text end 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. The
chief information officer must require that Agency contracts with outside vendors ensure
that systems and services are compatible with standards established by deleted text beginthe Office of MN.IT
Services
deleted text endnew text begin the Division of Information Technologynew text end.

deleted text begin (d)deleted text endnew text begin (e)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. 5.

Minnesota Statutes 2016, section 16E.02, is amended to read:


16E.02 deleted text beginOFFICE OF MN.IT SERVICESdeleted text endnew text begin DIVISION OF INFORMATION
TECHNOLOGY
new text end; STRUCTURE AND PERSONNEL.

Subdivision 1.

Office management and structure.

(a) The chief information officer is
appointed by the deleted text begingovernordeleted text endnew text begin commissioner, subject to the advice and consent of the senate
under section 15.066
new text end. The chief information officer serves in the unclassified service at the
pleasure of the deleted text begingovernordeleted text endnew text begin commissionernew text end. The chief information officer must have experience
leading enterprise-level information technology organizations. The chief information officer
is the state's chief information officer and information and telecommunications technology
advisor to the governor.

(b) The chief information officer may appoint other employees of the deleted text beginofficedeleted text endnew text begin divisionnew text end.
The staff of the deleted text beginofficedeleted text endnew text begin divisionnew text end must include individuals knowledgeable in information and
telecommunications technology systems and services and individuals with specialized
training in information security and accessibility.

(c) The chief information officer may appoint a Webmaster responsible for the supervision
and development of state Web sites under the control of the deleted text beginofficedeleted text endnew text begin divisionnew text end. The Webmaster,
if appointed, shall ensure that these Web sites are maintained in an easily accessible format
that is consistent throughout state government and are consistent with the accessibility
standards developed under section 16E.03, subdivision 9. The Webmaster, if appointed,
shall provide assistance and guidance consistent with the requirements of this paragraph to
other state agencies for the maintenance of other Web sites not under the direct control of
the deleted text beginofficedeleted text endnew text begin divisionnew text end.

Subd. 1a.

Accountability.

The chief information officer reports to the deleted text begingovernordeleted text endnew text begin
commissioner
new text end. The chief information officer must consult regularly with the commissioners
of deleted text beginadministration,deleted text end management and budget, human services, revenue, and other
commissioners as designated by the governor, on technology projects, standards, and services
as well as management of resources and staff utilization.

Sec. 6.

Minnesota Statutes 2017 Supplement, section 16E.0466, subdivision 1, is amended
to read:


Subdivision 1.

Consultation required.

(a) Every state agency with an information or
telecommunications project must consult with the deleted text beginOffice of MN.IT Servicesdeleted text endnew text begin Division of
Information Technology
new text end to determine the information technology cost of the projectnew text begin if the
division is selected by an agency to perform the project
new text end. Upon agreement between the
commissioner of a particular agency and the chief information officer, the agency must
transfer the information technology cost portion of the project to the deleted text beginOffice of MN.IT
Services
deleted text endnew text begin commissioner of administrationnew text end. Service level agreements must document all
project-related transfers under this section. Those agencies specified in section 16E.016,
paragraph deleted text begin(d)deleted text endnew text begin (e)new text end, are exempt from the requirements of this section.

(b) Notwithstanding section 16A.28, subdivision 3, any unexpended operating balance
appropriated to a state agency may be transferred to the information and telecommunications
technology systems and services account for the information technology cost of a specific
project, subject to the review of the Legislative Advisory Commission, under section 16E.21,
subdivision 3
.

Sec. 7.

Minnesota Statutes 2016, section 16E.055, is amended to read:


16E.055 ELECTRONIC GOVERNMENT SERVICES.

A state agency that implements electronic government services for fees, licenses, sales,
or other purposes deleted text beginmustdeleted text endnew text begin maynew text end use the single entry site created by the chief information officer
for all agencies to use for electronic government services.

Sec. 8.

Minnesota Statutes 2016, section 16E.14, is amended to read:


16E.14 deleted text beginMN.IT SERVICESdeleted text endnew text begin INFORMATION TECHNOLOGYnew text end REVOLVING
FUND.

Subdivision 1.

Creation.

The deleted text beginMN.IT servicesdeleted text end new text begininformation technology new text endrevolving fund
is created in the state treasury.

Subd. 2.

Appropriation and uses of fund.

Money in the deleted text beginMN.IT servicesdeleted text end new text begininformation
technology
new text endrevolving fund is appropriated annually to the deleted text beginchief information officerdeleted text endnew text begin
commissioner
new text end to operate information and telecommunications services, including
management, consultation, and design services.

Subd. 3.

Reimbursements.

Except as specifically provided otherwise by law, each
agency shall reimburse the deleted text beginMN.IT servicesdeleted text end new text begininformation technology new text endrevolving fund for the
cost of all services, supplies, materials, labor, and depreciation of equipment, including
reasonable overhead costs, which the deleted text beginchief information officerdeleted text endnew text begin commissionernew text end is authorized
and directed to furnish an agency. The deleted text beginchief information officerdeleted text endnew text begin commissionernew text end 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 deleted text beginOffice of MN.IT Servicesdeleted text endnew text begin Division of Information Technologynew text end.

Subd. 4.

Cash flow.

The commissioner of management and budget shall make appropriate
transfers to the revolving fund when requested by the chief information officer. The chief
information officer may make allotments and encumbrances in anticipation of such transfers.
In addition, the deleted text beginchief information officerdeleted text endnew text begin commissionernew text end, with the approval of the
commissioner of management and budget, may require an agency to make advance payments
to the revolving fund sufficient to cover the deleted text beginoffice'sdeleted text endnew text begin division'snew text end estimated obligation for a
period of at least 60 days. All reimbursements and other money received by the deleted text beginchief
information officer
deleted text end new text begincommissioner new text endunder this section must be deposited in the deleted text beginMN.IT servicesdeleted text end
new text begin information technology new text endrevolving fund.

Subd. 5.

Liquidation.

If the deleted text beginMN.IT servicesdeleted text end new text begininformation technology new text endrevolving fund is
abolished or liquidated, the total net profit from the operation of the fund must be distributed
to the various funds from which purchases were made. The amount to be distributed to each
fund must bear to the net profit the same ratio as the total purchases from each fund bears
to the total purchases from all the funds during the same period of time.

Sec. 9.

Minnesota Statutes 2016, section 16E.18, subdivision 4, is amended to read:


Subd. 4.

Program participation.

The chief information officer may deleted text beginrequiredeleted text endnew text begin requestnew text end the
participation of state agencies deleted text beginanddeleted text endnew text begin,new text end the commissioner of education, deleted text beginand may request the
participation of
deleted text end the Board of Regents of the University of Minnesotanew text begin,new text end and the Board of
Trustees of the Minnesota State Colleges and Universitiesdeleted text begin,deleted text end in the planning and
implementation of the network to provide interconnective technologies. The Board of
Trustees of the Minnesota State Colleges and Universities may opt out of participation as
a subscriber on the network, in whole or in part, if the board is able to secure
telecommunications services from another source that ensures it will achieve the policy
objectives set forth in subdivision 1.

Sec. 10. new text beginOFFICE OF MN.IT SERVICES; TRANSFER.
new text end

new text begin Minnesota Statutes, sections 15.039 and 43A.045, apply to the transfer from the Office
of MN.IT Services to the commissioner of administration.
new text end

Sec. 11. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall change "Office of MN.IT Services" to "Division of
Information Technology" and change "commissioner of MN.IT Services" to "commissioner
of administration" wherever these terms occur in Minnesota Statutes. The revisor of statutes
shall change "the office" to "the division" throughout Minnesota Statutes, chapter 16E.
new text end

new text begin (b) The revisor of statutes shall recodify Minnesota Statutes, chapter 16E, in Minnesota
Statutes, chapter 16B.
new text end

Sec. 12.new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 16E.145, new text end new text begin is repealed.
new text end

Sec. 13. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 are effective July 1, 2018, and apply to contracts entered into on or after
that date.
new text end

APPENDIX

Repealed Minnesota Statutes: S2966-1

16E.145 INFORMATION TECHNOLOGY APPROPRIATION.

An appropriation 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.