Information technology modernization account established, general fund surplus dollars allocated to account, report required, and money transferred.

A bill for an act

relating to state government; establishing an information technology modernization

account; allocating general fund surplus dollars to the account; requiring a report;

transferring money; amending Minnesota Statutes 2024, section 16A.152,

subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

Minnesota Statutes 2024, 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 management and budget determines that

there will be a positive unrestricted budgetary general fund balance at the close of the

biennium, the commissioner of management and budget 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

$2,852,098,000;

(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;
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and
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(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
, by the same amount
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.
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; and
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(5) the technology obsolescence reduction keystone account under section 16A.627 until

that account reaches $80,000,000.

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(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) The commissioner of management and budget 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. 2.

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[16A.627] TECHNOLOGY OBSOLESCENCE REDUCTION KEYSTONE

ACCOUNT.

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The technology obsolescence reduction keystone account is established in the special

revenue fund. Money in the account is available for appropriation by the legislature to fund

the modernization or replacement of outdated or inadequate information technology

infrastructure and systems used by the state or local units of government to administer state

programs.

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Sec. 3.
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INFORMATION TECHNOLOGY MODERNIZATION PLAN REQUIRED.
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No later than February 1, 2027, the commissioner of Minnesota Information Technology

Services must submit an information technology modernization plan to the chairs and ranking

minority members of the legislative committees with jurisdiction over state government

and the chairs and ranking minority members of the house of representatives Committee

on Ways and Means and the senate Committee on Finance. The plan must identify and rank

information technology infrastructure and systems most in need of modernization or

replacement, with priority given to outdated or inadequate systems used by local units of

government to administer state programs. For each project, the report must identify the

anticipated cost and the commissioner's recommendation of whether to modernize or replace

the infrastructure or system.

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Sec. 4.
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TRANSFER.
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$30,000,000 in fiscal year 2027 is transferred from the general fund to the technology

obsolescence reduction keystone account established under Minnesota Statutes, section

16A.627. This is a onetime transfer.

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