Section 1 [Equity Impact Notes] requires the Commissioner of Management and Budget (MMB) to develop an equity impact note for proposed legislation upon request by a legislative chair or ranking minority member of any standing committee. The equity impact note contains a reasonable estimate based on available data on whether proposed legislation will increase or decrease disparities and identifies any gaps in information needed to make such a determination. Requires the Commissioner of MMB to notify the authors of the legislation when MMB receives a request for an equity impact note.  Requires agencies to supply information to MMB to complete an equity impact note. Requires MMB to consult with the statutorily established ethnic councils and the Indian Affairs Council as appropriate in developing an equity impact note. Sets deadlines for MMB to complete the equity impact note. Requires MMB to provide a copy of the note to the authors of the legislation and to the chairs and ranking minority members of the legislative committees to which the legislation is referred.

"Disparities" is defined as differences in economic, employment, health, education, or public safety outcomes between the state population as a whole and subgroups of the population defined by race, gender, disability states, and geography.

Section 2 [Disparity Impact; New and Existing State Programs]

Subdivision 1 [Definitions] defines terms.

Subdivision 2 [New programs] requires that before an agency implements a new program, the agency must certify to the Commissioner of Human Rights the actions the agency has taken to ensure, to the extent practicable, that the new program will decrease disparities.

Subdivision 3 [Existing programs] requires each agency to certify twice a year to the Commissioner of Human Rights the actions the agency has taken to decrease existing disparities in its administration of existing laws and programs.

Subdivision 4 [Evaluation and recommendation] requires the Commissioner of Human Rights, in consultation with the statutorily established ethnic councils and the Indian Affairs Council, to evaluate each agency’s certified actions and recommend additional actions to the agency to address or decrease disparities.

Subdivision 5 [Annual report required] requires the Commissioner of Human Rights to report annually to the legislature the agencies’ certified actions and the commissioner recommendations for the agency and for legislation to decrease disparities.

Section 3 [Performance Measures and Disparity Analysis for Change Items] adds to the requirements for the Governor’s budget proposal an analysis of whether new or changed funding is likely to affect disparities.