1.1                          A bill for an act 
  1.2             relating to state government; establishing North Star 
  1.3             as government on-line service and information 
  1.4             initiative, with oversight provided by Minnesota 
  1.5             office of technology; establishing the information and 
  1.6             telecommunications technology community resource 
  1.7             development initiative; implementing MNCard projects 
  1.8             for demonstrating and utilizing "smart card" 
  1.9             technology and uses; providing for fees and accounts; 
  1.10            appropriating money; proposing coding for new law as 
  1.11            Minnesota Statutes, chapter 237B. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [237B.01] [DEFINITIONS.] 
  1.14     Subdivision 1.  [SCOPE.] The terms used in this chapter 
  1.15  have the meanings given them in this section. 
  1.16     Subd. 2.  [GOVERNMENT UNIT.] "Government unit" means a 
  1.17  state department, agency, commission, council, board, task 
  1.18  force, or committee; constitutional office; court entity; 
  1.19  Minnesota state colleges and universities; county, statutory or 
  1.20  home rule charter city, or town; school district; special 
  1.21  district; and any other board, commission, district, or 
  1.22  authority created pursuant to law, local ordinance, or charter 
  1.23  provision. 
  1.24     Subd. 3.  [IT.] "IT" means information and 
  1.25  telecommunications technology. 
  1.26     Subd. 4.  [IT COMMUNITY RESOURCE DEVELOPMENT INITIATIVE.] 
  1.27  "IT community resource development initiative" means the 
  1.28  programs developed under sections 237B.11 to 237B.14. 
  2.1      Subd. 5.  [CENTER.] "Center" means the Minnesota Internet 
  2.2   Center established under sections 237B.11 to 237B.14. 
  2.3      Subd. 6.  [NORTH STAR.] "North Star" means the state's 
  2.4   comprehensive government on-line service and information 
  2.5   initiative.  North Star is Minnesota's government framework for 
  2.6   coordination and collaboration in providing on-line government 
  2.7   services and information. 
  2.8      Subd. 7.  [CORE SERVICES.] "Core services" means 
  2.9   information system applications required to provide secure 
  2.10  information services and on-line applications and content to the 
  2.11  public from government units.  On-line applications may include, 
  2.12  but are not limited to: 
  2.13     (1) standardized public directory services and standardized 
  2.14  content services; 
  2.15     (2) on-line search systems; 
  2.16     (3) general technical services to support government unit 
  2.17  on-line services; 
  2.18     (4) electronic conferencing and communication services; 
  2.19     (5) secure electronic transaction services; 
  2.20     (6) digital audio, video, and multimedia services; and 
  2.21     (7) government intranet content and service development. 
  2.22     Subd. 8.  [TELETERN.] "Teletern" means a student enrolled 
  2.23  in a higher education program who has qualifications and duties 
  2.24  described in section 237B.13. 
  2.25                       NORTH STAR INITIATIVE 
  2.26     Sec. 2.  [237B.02] [NORTH STAR STAFF; OVERSIGHT BY OFFICE 
  2.27  OF TECHNOLOGY.] 
  2.28     The executive director of the Minnesota office of 
  2.29  technology shall appoint the manager of the North Star 
  2.30  initiative and hire staff to carry out the responsibilities of 
  2.31  the initiative. 
  2.32     Sec. 3.  [237B.03] [NORTH STAR PARTICIPATION, CONSULTATION, 
  2.33  AND GUIDELINES.] 
  2.34     The North Star staff shall consult with governmental and 
  2.35  nongovernmental organizations to establish guidelines, 
  2.36  standards, policies, and fees for participation in the North 
  3.1   Star initiative.  Government units planning, developing, or 
  3.2   providing publicly accessible on-line services shall provide 
  3.3   access through and collaborate with North Star and formally 
  3.4   register with the initiative.  The University of Minnesota is 
  3.5   requested to establish on-line connections and collaborate with 
  3.6   North Star.  Units of the legislature shall make their services 
  3.7   available through North Star.  Government units may be required 
  3.8   to submit standardized directory and general content for core 
  3.9   services, but are not required to purchase core services from 
  3.10  North Star.  North Star shall promote broad public access to the 
  3.11  sources of on-line information or services through multiple 
  3.12  technologies. 
  3.13     Sec. 4.  [237B.04] [NORTH STAR SECURE TRANSACTIONS, FEES.] 
  3.14     Subdivision 1.  [SECURE TRANSACTION SYSTEM.] North Star 
  3.15  shall plan and develop a secure transaction system to support 
  3.16  delivery of government services electronically. 
  3.17     Subd. 2.  [FEES.] The executive director shall establish 
  3.18  fees for technical and transaction services for government units 
  3.19  through North Star.  Fees must be deposited into the North Star 
  3.20  information access account. 
  3.21     Sec. 5.  [237B.05] [AGGREGATION OF SERVICE DEMAND.] 
  3.22     The North Star staff shall identify opportunities for 
  3.23  aggregation of demand for technical services required by 
  3.24  government units for on-line activities and may contract with 
  3.25  governmental or nongovernmental entities for provision of 
  3.26  services.  These contracts are not subject to the requirements 
  3.27  of chapter 16B, except sections 16B.167, 16B.17, and 16B.175. 
  3.28     Sec. 6.  [237B.06] [NORTH STAR OUTREACH.] 
  3.29     North Star may promote the availability of government 
  3.30  on-line services and information through public outreach and 
  3.31  education.  Public network expansion in communities through 
  3.32  libraries, schools, colleges, local government, and other 
  3.33  community access points shall include access to North Star.  
  3.34  North Star may make materials available to those public sites to 
  3.35  promote awareness of the service. 
  3.36     Sec. 7.  [237B.07] [NORTH STAR INFORMATION ACCESS ACCOUNT.] 
  4.1      Subdivision 1.  [ACCOUNT CREATED; REVENUES; APPROPRIATION.] 
  4.2   (a) The North Star information access account is created as an 
  4.3   account in the special revenue fund.  Money in the account not 
  4.4   needed for the immediate purposes of the initiative may be 
  4.5   invested by the state board of investment in any way authorized 
  4.6   by section 11A.24.  
  4.7      (b) Money in the account is annually appropriated to the 
  4.8   Minnesota office of technology to be used for the purposes of 
  4.9   sections 237B.02 to 237B.07.  
  4.10     (c) The account consists of: 
  4.11     (1) money appropriated and transferred from other state 
  4.12  funds; 
  4.13     (2) fees and charges collected by the office of technology; 
  4.14     (3) income from investments and purchases; 
  4.15     (4) revenue from loans, rentals, royalties, dividends, and 
  4.16  other proceeds collected by the office in connection with its 
  4.17  operations; 
  4.18     (5) gifts, donations, and bequests made to the North Star 
  4.19  initiative; and 
  4.20     (6) other funds credited to the account by law. 
  4.21     Subd. 2.  [ADVANCED DEVELOPMENT COLLABORATION.] The 
  4.22  Minnesota office of technology shall identify information 
  4.23  technology initiatives with broad public impact and advanced 
  4.24  development requirements.  Those initiatives shall assist in the 
  4.25  development of and utilization of core services to the greatest 
  4.26  extent possible where appropriate, cost effective, and 
  4.27  technically feasible.  This includes, but is not limited to, 
  4.28  higher education, statewide on-line library, economic and 
  4.29  community development, and K-12 educational technology 
  4.30  initiatives.  North Star shall participate in electronic 
  4.31  commerce research and development initiatives with the 
  4.32  University of Minnesota and other partners.  The statewide 
  4.33  on-line library initiative shall consult, collaborate, and work 
  4.34  with North Star to ensure development of proposals for advanced 
  4.35  government information locator and electronic depository and 
  4.36  archive systems. 
  5.1              COMMUNITY TECHNOLOGY RESOURCE DEVELOPMENT 
  5.2      Sec. 8.  [237B.11] [IT COMMUNITY RESOURCE DEVELOPMENT 
  5.3   INITIATIVE.] 
  5.4      Subdivision 1.  [CREATION AND PURPOSE.] The information and 
  5.5   telecommunications technology (IT) community resource 
  5.6   development initiative is created under the oversight 
  5.7   jurisdiction of the Minnesota office of technology to build the 
  5.8   capacity of citizens, businesses, communities, and regions of 
  5.9   the state to fully realize the benefits of IT for sustainable 
  5.10  community and economic development and to help facilitate the 
  5.11  transition into the market-based, competitive IT environment. 
  5.12     Subd. 2.  [DUTIES GENERALLY.] Through this initiative, the 
  5.13  Minnesota office of technology shall: 
  5.14     (1) provide for information collection, organization, and 
  5.15  distribution regarding the benefits, applications, and effective 
  5.16  uses of IT; 
  5.17     (2) create the Minnesota Internet Center, centrally located 
  5.18  within the state, to collaborate with North Star, public and 
  5.19  private partners, and with existing or emerging technology and 
  5.20  community development efforts; 
  5.21     (3) promote community-based telecommunications planning and 
  5.22  development and the use of community-oriented electronic 
  5.23  communications and information applications in health care, 
  5.24  education, and commerce; 
  5.25     (4) award grants for community-based development seed funds 
  5.26  to encourage public-private partnerships that foster effective 
  5.27  IT use and IT integration activities in the community; and 
  5.28     (5) facilitate the aggregation of demand for IT on a 
  5.29  comprehensive private, nonprofit, and public sector shared basis 
  5.30  in communities. 
  5.31     Sec. 9.  [237B.12] [IT COMMUNITY RESOURCE CENTER DUTIES; 
  5.32  GENERALLY.] 
  5.33     The Minnesota Internet Center shall assist communities and 
  5.34  regions in comprehensive IT community planning, demand 
  5.35  aggregation, design, and implementation.  It shall maintain an 
  5.36  interactive database of community and business-related IT 
  6.1   experience, showcase successful models of community and business 
  6.2   IT integration, coordinate statewide IT community development 
  6.3   technical assistance, and act as a clearinghouse for 
  6.4   applications and education in the uses of IT. 
  6.5      Sec. 10.  [237B.13] [TELETERNS AND COMMUNITY IT RESOURCE 
  6.6   TEAMS.] 
  6.7      The center shall coordinate the training and placement of 
  6.8   teleterns who have IT experience and community development 
  6.9   process skills, regional IT community development coordinators, 
  6.10  and community IT resource teams to work in partnership with 
  6.11  communities as they plan for and implement comprehensive IT 
  6.12  resource development efforts.  This includes the aggregation of 
  6.13  demand for IT to help facilitate the transition into a 
  6.14  market-based, competitive IT environment and the use of IT tools 
  6.15  to enhance access to community services, improve the business 
  6.16  climate, and strengthen community ties. 
  6.17     Sec. 11.  [237B.14] [COLLABORATION PARTNERS; ASSISTANCE AND 
  6.18  FUNDING REQUIREMENTS.] 
  6.19     Subdivision 1.  [COMMUNITY-BASED DEVELOPMENT PARTNERS.] The 
  6.20  center and its community-based development functions shall 
  6.21  coordinate or partner, when possible, with Minnesota learning 
  6.22  community initiatives, particularly for community-based 
  6.23  technology learning centers; Minnesota library technology 
  6.24  investments; Trade Point Minnesota, the University of Minnesota 
  6.25  Secure Electronic Authentication Link (SEAL) laboratory and 
  6.26  electronic trading centers; the Small Business Administration 
  6.27  business information center; Minnesota Technology centers; the 
  6.28  Minnesota extension service Access Minnesota sites; and the 
  6.29  state's telecommunications collaboration project, among others. 
  6.30     Subd. 2.  [ASSISTANCE AND FUNDING; GENERAL PRINCIPLES.] 
  6.31  Community technical assistance and development seed funding for 
  6.32  aggregation of demand and community IT planning provided through 
  6.33  the IT community resource development initiative must be 
  6.34  contingent upon the following general principles: 
  6.35     (1) that communities and regions show evidence of, or 
  6.36  intent to do, cooperative funding and planning between sectors 
  7.1   including, but not limited to, private sector providers, public 
  7.2   sector technology investments such as MNet, library systems, 
  7.3   health care providers, businesses, schools and other educational 
  7.4   institutions, and the nonprofit sector; and 
  7.5      (2) that communities and regions agree to form local and 
  7.6   regional IT coordination committees or modify similar, existing 
  7.7   committees to be more inclusive of other sectors and undertake 
  7.8   comprehensive planning across those sectors to leverage public 
  7.9   and private IT investment to the maximum benefit of all citizens.
  7.10                               MNCARD 
  7.11     Sec. 12.  [237B.21] [INITIAL MNCARD PILOT PROJECT.] 
  7.12     Subdivision 1.  [JOINT VENTURE.] The MNCard pilot project 
  7.13  is created as a joint venture between the department of 
  7.14  administration and the Minnesota office of technology, with (1) 
  7.15  management provided by the office, (2) assistance and advice 
  7.16  provided by the department's information policy office, and (3) 
  7.17  planning assistance provided by the information resource 
  7.18  steering committee created in subdivision 4. 
  7.19     Subd. 2.  [INITIAL IMPLEMENTATION.] The department and 
  7.20  office shall plan, implement, and manage the MNCard pilot 
  7.21  project.  The project shall integrate information and 
  7.22  communications technology into a single card, combining some or 
  7.23  all of the following services or features:  (1) state employee 
  7.24  identification, (2) building access, (3) parking access, (4) 
  7.25  MNet calling card features, (5) employee and dependent insurance 
  7.26  carrier identification, (6) employee workstation security, (7) 
  7.27  employee time and attendance, (8) debit features for capitol 
  7.28  complex cafeterias and vending machines, (9) debit features for 
  7.29  bank or credit union services, or (10) other present or future 
  7.30  service capabilities. 
  7.31     Subd. 3.  [RESOURCES; CONTRACTS.] The office and department 
  7.32  may utilize existing network infrastructure and investments in 
  7.33  information and communication technologies to the extent 
  7.34  compatible and useful to the project.  The office and department 
  7.35  may negotiate, enter into, execute, and manage contracts with 
  7.36  vendors and consultants in accordance with applicable law, 
  8.1   rules, and standards and may require requests for information, 
  8.2   requests for preliminary proposals, requests for proposals, and 
  8.3   contract bids. 
  8.4      Subd. 4.  [INFORMATION RESOURCE STEERING COMMITTEE.] (a) An 
  8.5   information resource steering committee is created to assist the 
  8.6   office and department in developing final project plans, which 
  8.7   may include: 
  8.8      (1) surveying existing state employee cards and uses; 
  8.9      (2) surveying the results of other state agencies and the 
  8.10  University of Minnesota with cards, such as UCard, employee 
  8.11  identification and access cards, and electronic benefit transfer 
  8.12  cards; 
  8.13     (3) involving current card providers, such as capitol 
  8.14  security and MNet, in assisting and participating in the 
  8.15  project; 
  8.16     (4) developing data, process, security, technology, and 
  8.17  event models; 
  8.18     (5) designing MNCard; 
  8.19     (6) developing contracts and project partnerships; 
  8.20     (7) selecting a card-issuing system; 
  8.21     (8) developing, organizing, and publishing procedures and 
  8.22  policies; 
  8.23     (9) providing for system backup and redundant design; 
  8.24     (10) developing and testing applications and software; 
  8.25     (11) providing for a data interface to the X.500 directory; 
  8.26  and 
  8.27     (12) advising the office and department on findings of fact 
  8.28  and recommendations for suggested procedures, processes and 
  8.29  methodologies, technologies, programs and systems, legislation, 
  8.30  rules, financing, and other considerations related to or needed 
  8.31  for expansion of the project to all state employees and other 
  8.32  citizens of Minnesota. 
  8.33     (b) Membership on the steering committee will consist of: 
  8.34     (1) the executive director of the Minnesota office of 
  8.35  technology, or the director's designee, who shall act as chair; 
  8.36     (2) the commissioner of administration, or designee from 
  9.1   the information policy office; 
  9.2      (3) a representative of each exclusive representative of 
  9.3   state employees, appointed by the exclusive representatives; 
  9.4      (4) the state treasurer, or designee; 
  9.5      (5) both co-chairs of the information policy council; 
  9.6      (6) a representative of the University of Minnesota, 
  9.7   appointed by the university regents; 
  9.8      (7) a representative of the Minnesota state colleges and 
  9.9   universities, appointed by its board of trustees; 
  9.10     (8) a member of the intertechnologies group, appointed by 
  9.11  the commissioner of administration; 
  9.12     (9) a representative of state employee health insurance 
  9.13  providers, appointed by the governor; 
  9.14     (10) a representative of state financial institutions, 
  9.15  appointed by the governor; 
  9.16     (11) a representative of card technology vendors, appointed 
  9.17  by the governor; and 
  9.18     (12) up to four additional members representing other 
  9.19  participating, interested, or affected agencies or groups, 
  9.20  appointed by the governor. 
  9.21     (c) Compensation and removal of members of the steering 
  9.22  committee are governed by Minnesota Statutes, section 15.059, 
  9.23  subdivisions 3 and 4. 
  9.24     (d) The committee expires June 30, 2000. 
  9.25     Subd. 5.  [NOTICE TO MNCARD USER.] (a) When an individual 
  9.26  is issued a MNCard, the individual must be informed of the 
  9.27  following operating features of the card: 
  9.28     (1) agencies or other organizations that use the card and 
  9.29  for what purposes; 
  9.30     (2) agencies or other organizations that will be able to 
  9.31  revise, alter, or update data on the card, including a 
  9.32  description of the kinds of data they will be able to place on 
  9.33  the card; 
  9.34     (3) agencies or other organizations that will have access 
  9.35  to data on the card without being able to revise, alter, or 
  9.36  update data on the card, and the nature of their access, 
 10.1   including what data are accessible. 
 10.2      (b) An individual must be notified whenever an additional 
 10.3   agency or other organization is authorized access to, or the 
 10.4   ability to revise, MNCard data. 
 10.5      (c) The office of technology shall maintain as a public 
 10.6   record on paper and in electronic format, a description of: 
 10.7      (1) agencies and other organizations authorized access to 
 10.8   data on the MNCard; 
 10.9      (2) agencies or other organizations with authority to 
 10.10  change or add data to the MNCard; 
 10.11     (3) a description of the security measures that prevent 
 10.12  unauthorized access to data on the card; and 
 10.13     (4) any further information relevant to the methods of 
 10.14  protecting the privacy of MNCard users to be developed under 
 10.15  subdivision 9. 
 10.16     Subd. 6.  [CARD USER INFORMATION AND CONSENT.] Private or 
 10.17  confidential data must not be placed on a MNCard without the 
 10.18  express written consent of the card user, in the case of private 
 10.19  data, or with notice to the individual, in the case of 
 10.20  confidential data. 
 10.21     Subd. 7.  [CARD READER.] At least one card reader must be 
 10.22  located at each participating state agency, and each reader must 
 10.23  be audited once a month by the department of administration to 
 10.24  ensure that it provides accurate output that can be verified by 
 10.25  the MNCard holder to be all the data on the card. 
 10.26     Subd. 8.  [DATA PRIVACY.] The commissioner shall develop 
 10.27  methods of protecting the privacy of MNCard users and shall 
 10.28  evaluate the effectiveness of those methods.  The commissioner's 
 10.29  evaluation shall be incorporated in the report to the 
 10.30  legislature required in subdivision 6.  Employee participation 
 10.31  in the pilot project is optional and may not be required.  A 
 10.32  participating employee has the right to select which private 
 10.33  data, if any, are shown on the employee's MNCard. 
 10.34     Subd. 9.  [REPORT TO LEGISLATURE.] The Minnesota office of 
 10.35  technology shall submit a written report to the legislature by 
 10.36  January 15, 1999, making findings of fact and conclusions for 
 11.1   the initial phase of the project ending June 30, 1998, and 
 11.2   making recommendations for suggested procedures, processes and 
 11.3   methodologies, technologies, programs and systems, legislation, 
 11.4   rules, financing, staffing, and other considerations related to 
 11.5   or needed for expansion of the MNCard project. 
 11.6      Sec. 13.  [APPROPRIATIONS.] 
 11.7      (a) $....... is appropriated from the general fund to the 
 11.8   Minnesota office of technology for the purposes of the North 
 11.9   Star initiative.  This appropriation is available until spent. 
 11.10     (b) $1,000,000 is appropriated from the general fund to the 
 11.11  executive director of the Minnesota office of technology for the 
 11.12  operation of the Minnesota Internet Center and community 
 11.13  technology resource development under Minnesota Statutes, 
 11.14  sections 237B.11 to 237B.14.  This appropriation is available 
 11.15  until spent. 
 11.16     (c) $....... is appropriated from the general fund to the 
 11.17  Minnesota office of technology for grants to be awarded under 
 11.18  Minnesota Statutes, section 237B.11, subdivision 2, clause (4), 
 11.19  and is available for the biennium ending June 30, 1999. 
 11.20     (d) $....... is appropriated from the general fund to the 
 11.21  Minnesota office of technology for the purposes of the initial 
 11.22  MNCard project under Minnesota Statutes, section 237B.21, and is 
 11.23  available until June 30, 1998.  
 11.24     (e) $....... is appropriated from the general fund to the 
 11.25  department of administration for the purpose of the audit under 
 11.26  section 12. 
 11.27     Sec. 14.  [REPEALER.] 
 11.28     Section 12, subdivisions 1 to 8, are repealed June 30, 1999.
 11.29     Sec. 15.  [EFFECTIVE DATE.] 
 11.30     Sections 1 to 8 are effective the day following final 
 11.31  enactment.  Sections 9 to 14 are effective July 1, 1997.