SENATE BILL REPORT

                                    SB 6456

          AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 11, 1992

Brief Description:  Revising statutes regarding state information resources.

SPONSORS: Senators Cantu, Madsen, McDonald and Talmadge; by request of Department of Information Services and Office of Financial Management

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 6456 be substituted therefor, and the substitute bill do pass. 

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bluechel, Cantu, Gaspard, M. Kreidler, Matson, Metcalf, L. Smith, Talmadge, West, Williams, and Wojahn.

Staff:  Martin Chaw (786‑7715)

Hearing Dates: February 10, 1992; February 11, 1992

BACKGROUND:

In 1987 the Legislature created the Department of Information Services.  The department was given the responsibility to oversee and review the costs, scope, and feasibility of proposed computer systems for the state.  The department is composed of two private divisions:

1)the Planning and Policy Division, which oversees long range system planning and system policy development; and

2)the Service Divisions, which provide telecommunications, data processing and equipment leasing support to state agencies.

The department is overseen by the Information Services Board which consists of nine members (three from cabinet agencies, one from higher education, one from a noncabinet executive agency, two from the private sector, one from the judicial branch, and one from the legislative branch).

In the 1991-93 biennial budget, the Legislature appropriated $1.4 million and 16 FTEs for FY92 funding only for the Planning and Policy Division.  The budget included a proviso requiring the division to submit a plan to improve the state's information systems development, review, and approval process.

The plan, now completed, identifies a number of weaknesses that have historically presented problems for information systems management and cost control.  Deficiencies in the current approach include substandard work products, poor project conception and planning, and ineffective project oversight.  The plan also makes recommendations to improve funding and planning approaches.

SUMMARY:

Membership of the Information Services Board is increased to ten members, adding the Director of Information Services.

The respective roles, responsibilities, and review process for the Department of Information Services and the state agencies requesting an information system are modified as follows:

!Planning:  Agencies requesting information systems are required to develop a business plan demonstrating how the proposed system fits into the long range goals of the agency.

!Budgeting:  Funding for proposed systems will be done on an incremental basis with initial funding for feasibility studies during the biennial budget and implementation funding during the supplemental budget.

!Oversight:  The department is required to develop a statewide information services plan to assure that agency requests are within the policies, standards, and guidelines as established by the board.

!Costs/Benefits:  A statement of short and long term savings and efficiencies are to be documented and included in the agency's budget requests.

!Accountability:  The director of the department is given the authority to approve, disapprove and terminate a project or to recommend to the Legislature termination of a project.

The Governor has included $1.8 million and an additional 6 FTEs in his supplemental budget request to continue this division in FY93.  This request increases the division's biennial appropriation to $3.2 million and 22 FTEs.

EFFECT OF PROPOSED SUBSTITUTE:

The composition of the Information Services Board is decreased from ten members to nine.

The appointment of the assistant director of the planning and regulation unit requires confirmation by the Information Services Board.

The customers (state agencies) must demonstrate that the selected alternative vendor is able to provide more cost effective or efficient service.

The state must adopt a policy of moving toward an open system's architecture which maximizes the opportunities to readily and easily exchange information.

Information systems are developed in incremental steps, involving users at each step in the process.

The planning and regulation division also submits recommendations on an agency's needs assessment, preliminary project plans, project implementation plans, and assumed cost/benefit and staffing levels by fiscal year.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested

Effective Date:  The bill contains an emergency clause and takes effect immediately.

TESTIMONY FOR:

This bill responds to legislative concerns regarding the need for project oversight, cost recovery, accountability, funding, and periodic performance reporting.  An established set of policies to oversee implementation of projects is needed to minimize risk, remain flexible, and to direct long and short range planning.

TESTIMONY AGAINST:  None

TESTIFIED:  Brad Blanchard, Director, Department of Information Services; Joe Dear, Director, Department of Labor and Industries and Chair, Information Services Board; Michael Stewart, Council of Presidents