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H.F. No. 1389 - MN.IT Services and Minnesota Management and Budget Changes (The Unofficial Engrossment)
 
Author: Senator Beverly Scalze
 
Prepared By:
 
Date: May 14, 2013



 

Overview

H.F. No. 1389 makes a variety of changes relating to the Office of Enterprise Technology, including a provision that renames the agency as MN.IT Services.   The bill also makes several changes in laws relating to state finance and budget reporting requirements, including the role of Minnesota Management and Budget (MMB) in the budget process.

Section-by-Section summary

Section 1 [Members; Duties] changes the reporting requirement for the Commissioner of Management and Budget regarding actions of the Legislative Advisory Commission.  Strikes a requirement to report directly the Legislature and replaces it with a requirement to post the actions of the commission on MMB’s Web site.

Section 2 [Governor’s Request to Legislature] expands the authorization in existing law for spending federal funds to include federal funds submitted to the Legislature as part of the budget request for a biennium, as opposed to a fiscal year.

Section 3 [Approvals for Both Years of the Biennium] provides that approval of the expenditure of federal funds under Minnesota Statutes, section 3.3005, is for the full term of the availability of the federal funds up to the end of the biennium beginning July 1 after the request is submitted.  This authorization is shortened to the current fiscal year for requests submitted under the special procedures provided for urgencies. 

Section 4 [Request Contents] specifies the details MMB must provide when submitting requests to spend federal funds to the Legislature.

Section 5 [Payment] provides that a state agency shall first seek approval to pay a tort claim from the commissioner or director of the agency.

Section 6 [Compilation of Local Impact Notes] strikes a reporting requirement for the Commissioner of Management and Budget to summarize key local impact notes and replaces it with a general requirement to post a copy of all local impact notes on the agency’s Web site.

Section 7 [Continuation by Law] makes a conforming change related to changes made in sections 10 and 29.

Section 8 [State Agency Named to Act Instead] eliminates the requirement that the Governor file designations with the Office of the Secretary of State for agencies that may act for the Governor in applying for, receiving, and accepting federal funds.

Section 9 [Report] eliminates a requirement that the Commissioner of Administration’s reports regarding two, ten, and 50-year outlooks on demographic information include budget implications for those time periods.

Section 10 [State Demographer] eliminates a requirement for the State Demographer to release a demographic forecast in conjunction with the November state economic forecast.

Section 11 [Applicability] includes the Office of MN.IT Services within the list of agencies and offices covered by section 15.06.  Inclusion within the list makes the head of the office a “commissioner.”

Section 12 [Program Established] specifies that only state agencies that are not separately authorized to carry forward operating funds may participate in the state agency value initiative (SAVI) program.

Section 13 [Retained Savings] authorizes the use of retained savings under the SAVI program only for the performance of the agency’s mission.

Section 14  [Review Process] eliminates the requirement for agency peer review panels under the SAVI program and strikes language requiring the commissioner to request advice from the Legislative Advisory Commission before spending money saved under the SAVI program.

Section 15 [Retention of Data] changes the requirements for the state expenditures database to require information beginning with fiscal year 2012, rather than with 2010 appropriations.

Section 16 [State Budget System] requires the Commissioner of Management and Budget to provide instructions for budget requests that deal with performance, rather than appropriation, measures for each budget activity.  Also requires the commissioner to recommend required legislation to install improvements in the budget system for all agencies, rather than only executive agencies.  Requires the budget system to classify expenditures by programs and budget activities.

Section 17 [Budget Format] requires the budget format to show estimated expenditures subclassified by programs and activities.  Also requires agency revenue estimates to have supporting documentation.

Section 18 [Performance Measures for Change Items] strikes references to Minnesota Milestones in a law dealing with performance measures for budget documents.  Eliminates a requirement for the Commissioner of Management and Budget to report to the Subcommittee on Government Accountability regarding the format for Minnesota Milestones under statewide goals and indicators.

Section 19 [Federal Proposals] strikes a requirement that agencies applying for federal funds submit copies of their indirect cost submission to the Commissioner of Management and Budget for review.

Section 20 [Authority] in the law authorizing the issuance of appropriation bonds for the Minnesota pay-for-performance program, strikes a reference to the biennium ending June 30, 2013, and extends a limitation on the commissioner’s bonding authority beyond  that date.

Section 21 [Creation; Chief Information Officer] clarifies that the head of MN.IT Services is a commissioner, who is also the state chief information officer.

Section 22 [State Information Network] defines the state information network to include equipment used in the delivery of high-speed telecommunications services.

Section 23 [Responsibilities] strikes duties of the Office of MN.IT Services to review and approve state agency technology plans; strikes a duty to report to the Legislature on assistance provided to state agencies; and strikes a duty to conduct comprehensive review at least every three years of information systems investments made by state agencies and higher education institutions.

Section 24 [Exemption] exempts the state information network, as defined in section 22 of this bill, from existing term limitations in state contracts.  Requires a contract compliance review of those contracts.

Section 25 [Additional and Classified Positions] authorizes the Office of MN.IT Services to designate additional positions in the unclassified state civil service if the positions meet specified statutory criteria in this subdivision.

Section 26 [Membership; Duties] removes the Commissioner of Management and Budget from the criminal and juvenile justice information policy group.

Section 27 [Membership] removes the Commissioner of Management and Budget from the Statewide Radio Board.

Section 28 [Counties] strikes obsolete references to 2004 and 2005 payments and provides for transfer, rather than billing, of amounts used for preparation of local impact notes and other local government activities.

Section 29 [Study] amends an existing reporting requirement to include the Senate in a list of entities that will be evaluated to determine whether MN.IT should provide the utilities with information technology systems and services.

Section 30 [Revisor’s Instruction] instructs the Revisor to change references in statutes from the “Office of Enterprise Technology” to “Office of MN.IT Services.”

Section 31 [Repealer] repeals:

  • Section 15.06, subdivision 1a: references to “commissioner” in section 15.06 that apply to the chief information officer in OET.
  • Section 16A.06, subdivision 9: MMB report on teacher pension aids.
  • Section 16A.103, subdivision 4: MMB report on a program for which expenditures are expected to increase more than 15 percent.
  • Section 16A.106: MMB report on the adequacy of budgeted and forecasted defined benefit plan retirement contributions.
  • Section 43A.31, subdivision 2: biennial MMB report to the Legislative Commission on Employee Relations regarding SEGIP.
  • Section 325G.415: requires a creditor who distributes credit card applications in this state to file an annual report with MMB.

 

 

 
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