HOUSE BILL REPORT

 

 

                                   2SSB 5555

                            As Amended by the House

 

 

BYSenate Committee on Ways & Means (originally sponsored by Senators Halsan and Zimmerman; by request of Office of Financial Management)

 

 

Establishing the department of information technology.

 

 

House Committe on State Government

 

Majority Report:  Do pass with amendments.  (7)

      Signed by Representatives H. Sommers, Chair; Peery, Vice Chair; Baugher, Chandler, Hankins, O'Brien and Sayan.

 

      House Staff:Pam Madson (786-7135)

 

 

Rereferred House Committee on Ways & Means/Appropriations

 

Majority Report:  Do pass with amendments by Committee on State Government and as further amended by Committee on Ways & Means.  (19)

      Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, McLean, McMullen, Niemi, Peery, Sayan, Silver, H. Sommers and Sprenkle.

 

 

                        AS PASSED HOUSE APRIL 16, 1987

 

BACKGROUND:

 

Responsibility for state data processing and telecommunications systems is presently distributed among several state agencies:  The Data Processing Authority (DPA); the Department of General Administration (GA), which hosts the Washington Data Processing Service Center (Service Center 1) serving 120 agencies, and incorporates the Telecommunications Division for voice communication; and the Department of Licensing (DOL), which hosts Service Center 3 serving 32 agencies.  In addition, Service Center 2 serves Washington State University and the Western Library Network, while Service Center 5 supports the Department of Transportation.  Separate data processing and telecommunications systems exist for the legislative and judicial branches, respectively.

 

During the 1986 interim, the Senate Committee on Governmental Operations convened a bipartisan study group focusing on the state's data processing and telecommunications systems. The group included legislators from both houses, deputy directors of the Office of Financial Management (OFM) and DPA, three private sector representatives of the DPA board, and a vendor representative.

 

The study group examined the need for statewide management of telecommunications costs; integrating telecommunications with computer services; improving information sharing; improving the acquisition process; improving quality and delivery of services to client agencies; and improving legislative and executive oversight of the state's information systems.

 

SUMMARY:

 

The state's data processing and telecommunications functions are incorporated into a single management structure that consists of the following three major components: (1) an Information Services Board; (2) a Department of Information Services; and (3) customer oversight and other advisory committees.

 

Information Services Board.  The State Information Services Board is created to replace the Data Processing Authority.  The board consists of the following nine voting members, seven appointed by the governor and serving at the governor's pleasure: (1) three from cabinet agencies; (2) one from higher education; (3) one from a non-cabinet executive agency; and (4) two from the private sector.  One member is appointed from the legislature, and one from the judiciary.  The director of the Department of Information Services serves as a nonvoting member of the board.

 

The board's responsibilities include the following:  (1) develop standards governing equipment, proprietary software, purchased services, and confidentiality of computerized information; (2) acquire, dispose of, and maintain equipment, software, and services; (3) establish state-wide or interagency information services technical policies; (4) hear appeals from vendors and customer agencies; (5) set policies for the periodic review of agency performance; (6) participate in the Department of Information Services budgeting process; (7) discontinue service center designations but allow Washington State University and the Department of Transportation to provide information services to other agencies and local governments; and (8) advise the department's planning component on development of goals and objectives.

 

Department of Information Services.  The Department of Information Services is created through the transfer of the following state agencies and agency organizational units and their personnel:  The Data Processing Authority (DPA), the Department of General Administration's (GA's) Data Processing Service Center (Service Center 1) and its Telecommunications Division, and the Department of Licensing's (DOL's) Data Processing Service Center (Service Center 3).

 

The department's director is appointed by the governor.  The director maintains within the department a planning unit and a service unit.  The department generally has available four exempt positions in addition to the director and his or her confidential secretary, and up to twelve exempt positions in the planning unit.

 

The department's responsibilities include:  (1) reviewing agency acquisition plans and requests and to implement statewide and interagency policies; (2) providing information services and setting fees for such services; (3) developing and publishing statewide goals and objectives at least biennially; (4) developing education and training plans and a biennial report on recruitment and retention of qualified personnel; and (5) reviewing and assessing agencies' performances.

 

Customer Oversight and Other Advisory Committees.  The director shall appoint customer oversight and other advisory committees to assist the department.  The director shall determine the number and type of customer oversight committees.  These committees shall advise the department as to the type, quality, and cost of the department's services and may ask the board to resolve disputes between agencies and the department.

 

A billing rate plan shall be developed by the department and approved by OFM for a two-year period.  Rates shall be reviewed at least annually by the customer oversight committees.

 

The agency and board are terminated under the sunset review process in 1991, and its enabling statutes are repealed in 1992.

 

All revolving fund expenditures, including non-appropriated expenditures for the services component of the department, shall be subject to allotment approval by OFM.

 

The Legislative Evaluation and Accountability Program (LEAP) shall study all state budgets and expenditures for state information systems and review budget development and expenditure reporting processes and Department of Information Services rate structure.  LEAP shall report to the legislative fiscal committees prior to the 1988 legislative session with a final report prior to the 1989 legislative session.

 

Fiscal Note:      Requested April 6, 1987.

 

Effective Date:The bill contains an emergency clause and takes effect on July 1, 1987.

 

House Committee ‑ Testified For:    (State Government) Orin Smith, Director, Office of Financial Management; Ken Madsen, State Representative; Rick Stablein, Director, Data Processing Authority; Dennis Carlson, Safeco Insurance Company; Susan Mersereau, Weyerhaeuser Company; Dick Judy, The Boeing Company; and Bob Edwards, Information Processing Managers Association.

 

(Ways & Means/Appropriations)  None Presented.

 

House Committee - Testified Against:      (State Government) None Presented.

 

(Ways & Means/Appropriations)  None Presented.

 

House Committee - Testimony For:    (State Government) Technology continues to change at a rapid rate.  The state is not utilizing new technology in the most efficient and cost- effective ways, particularly in voice and data telecommunications and in the integration of these technologies with more common data processing.  The increasing number of applications made by agencies further increases costs of data processing.  Current management of data processing and telecommunications technology is fragmented throughout state government.  A better vehicle for managing and coordinating data processing and telecommunications functions is needed.

 

Agencies will be involved in the rate setting process.  Rates will be set for a two-year period to provide some stability to agency budgeting.  This legislation recognizes that agencies are accountable for their use of information technology.  The new department will assist agencies in making distribution decisions.

 

The key is having planning and the implementation of plans under one authority who is accountable.  The goal of this proposal is less fragmentation, more focus, more participation of affected parties, and accountability.

 

The department and board structure created provides a better link with the legislature and the judiciary.

 

(Ways & Means/Appropriations)  None Presented.

 

House Committee - Testimony Against:      (State Government) None Presented.

 

(Ways & Means/Appropriations)  None Presented.