Z-1339

AN ACT Relating to state information resources; amending RCW 43.105.017, 43.105.020, 43.105.032, 43.105.041, 43.105.047, 43.105.052, 43.88.030, 39.29.006, and 43.19.1901; reenacting and amending RCW 43.88.030; adding new sections to chapter 43.105 RCW; repealing RCW 43.105.005; providing an effective date; providing an expiration date; and declaring an emergency.

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

Sec. 1. RCW 43.105.017 and 1990 c 208 s 2 are each amended to read as follows:

It is the intent of the legislature that:

(1) State government provide leadership, direction, and assistance in the state's use ((~~voice, data, and video telecommunications technologies~~)) of information resources to:

(a) Transmit and increase access to live, interactive classroom instruction and training((;

~~(b) Provide for~~)) and promote interactive public affairs presentations, including a public forum for state and local issues;

((~~(c)~~)) (b) Facilitate communications and exchange of information among state and local elected officials and the general public; and

((~~(d)~~)) (c) Enhance state-wide communications within state agencies; ((~~and~~

~~(e) Through the use of telecommunications, reduce time lost due to travel to in-state meetings;~~))

(2) ((~~Information be shared and administered in a coordinated manner, except when prevented by agency responsibilities for security, privacy, or confidentiality;~~

~~(3)~~)) A formal process and procedures be established to guide and control the use of information resources. It is intended that the planning, budgeting, and management of information will be based upon cost-effective and efficient use of resources and that information systems will support program goals and objectives. The development and implementation of information systems will be subject to the requirements of this chapter, which create and establish a process for the phased funding and implementation of all information systems, unless a system is determined by the department to be exempt under section 7 of this act. Information is a state resource and it is the intent of the legislature that all elements of state government cooperate in moving towards comprehensive and integrated information systems that support improved service delivery;

(3) Information systems reflect and support agency missions and functions and this linkage be established by agency management participating in strategic planning activities; strategic plans direct the agency requests for resources to design, build, implement, and operate these systems; construction of every information system be explicitly controlled by the agency to assure success in a timely and cost-efficient manner; and agencies monitor expenditures and performance in constructing information systems;

(4) All data collected, created, and generated by state government be treated as a resource of the state to be managed by the state, in accord with security and privacy requirements; access to data be shared and administered in a coordinated manner among state agencies and between the executive, legislative, and judicial branches of state government, except when prevented by the need to protect accuracy, integrity, security, privacy, or confidentiality; data be used for setting strategic directions, improving agency management, and directing agency operations, and all these uses are appropriate and to be taken into consideration when organizing data collection and processing;

(5) Nothing in chapter ---, Laws of 1992 (this act) is intended to supersede or change current state or federal statutes on data confidentiality;

(6) Agencies accurately state the costs of their information system projects, define their benefits in measurable terms, state their risks and identify how these risks can be mitigated; and all agency information system projects be an identifiable element of agency strategic plans and support the strategic directions of the state;

(7) Budgetary review of all agency requests for information resources be required to assure that agency missions and objectives, strategic directions, and information system projects are congruent. This budgetary review will consider the impact of information resources on agency services, the likelihood of information projects success, consistency with agency plans, and the costs and benefits of the information technology;

(8) The primary responsibility for the management and use of state agency, legislative, and judicial information((,)) and information ((~~systems, telecommunications, equipment, software, and services~~)) resources rests with ((~~each agency~~)) the agency head of the agency planning, acquiring, or managing the resources, such as the director of an executive agency, the chief justice of the supreme court, or, in the case of the legislature, jointly with the president of the senate and the speaker of the house of representatives, or their designated representatives;

((~~(4)~~)) (9) Information resources shall be ((~~used in the most efficient manner and services be shared when cost-effective~~)) planned, acquired, and managed in a manner that takes into consideration such factors as quality of service, consistency with the state information technology plan, and data sharing potential;

((~~(5)~~)) (10) A structure be created to:

(a) Plan and manage telecommunications and computing networks;

(b) Increase ((~~agencies'~~)) awareness of information sharing opportunities among all three branches of state government and with local governments; and

((~~(6)~~)) (11) An acquisition process for ((~~equipment, proprietary software, and related services~~)) information resources be established that meets the needs of the users, considers the relevant exchange of information among all government agencies, and promotes fair and open competition;

((~~(7) The state improve~~)) (12) Agencies receive assistance in improving recruitment, retention, and training of professional and technical staff, including individuals who possess state-of-the-art skills in planning information systems, and acquiring and managing information resources;

((~~(8)~~)) (13) Plans, proposals, and acquisitions for information services be reviewed from a financial and management perspective as part of the budget process; and

((~~(9)~~)) (14) State government adopt policies and procedures that maximize the effective use of ((~~existing video telecommunications~~)) information resources, coordinate and develop ((~~video telecommunications~~)) information resources in a manner that is cost-effective and encourages shared use, when feasible, and ensures the appropriate use of ((~~video telecommunications~~)) these resources to fulfill identified needs.

Sec. 2. RCW 43.105.020 and 1990 c 208 s 3 are each amended to read as follows:

As used in this chapter, unless the context indicates otherwise, the following definitions shall apply:

(1) "Department" means the department of information services;

(2) "Board" means the information services board;

(3) "Local governments" includes all municipal and quasi municipal corporations and political subdivisions, and all agencies of such corporations and subdivisions authorized to contract separately;

(4) "Director" means the director of the department;

(5) "Purchased services" means services provided by a vendor to accomplish routine, continuing, and necessary functions. This term includes, but is not limited to, services acquired for equipment maintenance and repair, operation of a physical plant, security, computer hardware and software installation and maintenance, data entry, keypunch services, programming services, and computer time-sharing;

(6) (("Backbone network" means the shared high-density portions of the state's telecommunications transmission facilities. It includes specially conditioned high-speed communications carrier lines, multiplexors, switches associated with such communications lines, and any equipment and software components necessary for management and control of the backbone network;

~~(7) "Telecommunications" means the transmission of information by wire, radio, optical cable, electromagnetic, or other means;~~

(8) "Information processing" means the electronic capture, collection, storage, manipulation, transmission, retrieval, and presentation of information in the form of data, text, voice, or image and includes telecommunications and office automation functions;

~~(9)~~)) "Information ((~~services~~)) resources" means data processing, telecommunications, and office automation equipment, systems, and services, including proprietary software;

((~~(10)~~)) (7) "Equipment" means the machines, devices, and transmission facilities used in information processing, such as computers, word processors, terminals, telephones, and cables;

((~~(11)~~)) (8) "Proprietary software" means that software offered for sale or license;

((~~(12)~~)) (9) "Video telecommunications" means the electronic interconnection of two or more sites for the purpose of transmitting and/or receiving visual and associated audio information and is considered a component of information resources. ((~~Video telecommunications shall not include existing public television broadcast stations as currently designated by the department of community development under chapter 43.63A RCW.~~))

(10) "Major project" means an information resources project that has a significant impact upon the state's, an agency's, or a program's operations, as determined by the department;

(11) "State agency," "agency," or "agencies" means any executive branch agency in which the chief executive officer is appointed directly by the governor or by a board that is appointed in whole or in part by the governor. "State agency," "agency," or "agencies" also includes, but is not limited to, the offices of other independently elected state officials such as the lieutenant governor, the superintendent of public instruction, the insurance commissioner, the state treasurer, the state auditor, the secretary of state, the commissioner of public lands, the attorney general, and includes state universities and colleges;

(12) "Agency head" means the director, secretary, or commissioner of an executive agency as defined in RCW 43.17.020 and 50.08.010. This definition includes, but is not limited to, other independently elected state officials such as the lieutenant governor, the superintendent of public instruction, the insurance commissioner, the state treasurer, the state auditor, the secretary of state, the commissioner of public lands, the attorney general, and presidents of state universities and colleges.

Sec. 3. RCW 43.105.032 and 1987 c 504 s 4 are each amended to read as follows:

There is hereby created the Washington state information services board. The board shall be composed of ((~~nine~~)) ten members. ((~~Seven~~)) Eight members shall be appointed by the governor, ((~~and~~)) serving at the governor's pleasure as follows: ((~~Three~~)) Four representatives from cabinet agencies, one of which shall be the director of information services, one representative from higher education, one representative from a noncabinet executive agency, and two representatives from the private sector. One member shall represent the judicial branch and be appointed by the chief justice of the supreme court. One member shall represent the legislative branch and shall be selected by the president of the senate and the speaker of the house of representatives. These members shall constitute the membership of the board with full voting rights. ((~~The director shall be an ex officio, nonvoting member of the board.~~)) The board shall select a chairperson from among its members.

Vacancies shall be filled in the same manner that the original appointments were made.

A majority of the members of the board shall constitute a quorum for the transaction of business.

Members of the board shall be compensated for service on the board in accordance with RCW 43.03.240 and shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

Sec. 4. RCW 43.105.041 and 1990 c 208 s 6 are each amended to read as follows:

The board shall have the following powers and duties related to information ((~~services~~)) resources:

(1) To develop standards and policies governing ((~~the acquisition and disposition of equipment, proprietary software and purchased services,~~)) information resources and ((~~confidentiality~~)) accuracy, integrity, security, privacy, and confidentiality of computerized data;

(2) To purchase, lease, rent, or otherwise acquire, dispose of, and maintain ((~~equipment, proprietary software, and purchased services~~)) information resources, or to delegate to other agencies and institutions of state government, under appropriate standards, the authority to purchase, lease, rent, or otherwise acquire, dispose of, and maintain ((equipment, proprietary software, and purchased services)) information resources: PROVIDED, That, agencies and institutions of state government are expressly prohibited from acquiring or disposing of ((equipment, proprietary software, and purchased services)) information resources without such delegation of authority. The acquisition and disposition of ((~~equipment, proprietary software, and purchased services~~)) information resources is exempt from RCW 43.19.1919 and, as provided in RCW 43.19.1901, from the provisions of RCW 43.19.190 through 43.19.200. This subsection does not apply to the legislative branch;

(3) ((~~To develop state-wide or interagency technical policies, standards, and procedures;~~

~~(4)~~)) To assure the cost-effective development and incremental implementation of a state-wide video telecommunications system to serve: Public schools; educational service districts; vocational-technical institutes; community colleges; colleges and universities; state and local government; and the general public through public affairs programming;

((~~(5)~~)) (4) To ((~~provide~~)) establish direction concerning strategic planning goals and objectives for the state. The board shall seek input from the legislature and the judiciary;

((~~(6)~~)) (5) To develop and implement a process for the resolution of appeals by:

(a) Vendors concerning the conduct of an acquisition process by an agency or the department; or

(b) A customer agency concerning the provision of services by the department or by other state agency providers;

((~~(7)~~)) (6) To establish policies for the periodic review by the department of agency performance which may include but are not limited to analysis of:

(a) Planning, management, control, and use of information services;

(b) Training and education; and

((~~(8)~~)) (7) To set its meeting schedules and convene at scheduled times, or meet at the request of a majority of its members, the chair, or the director; ((~~and~~

~~(9)~~)) (8) To review and approve that portion of the department's budget requests that provide((s)) for support to the board;

(9) To review and approve the state strategic information technology plan;

(10) To approve, require revision of, or reject agency information technology plans;

(11) To review the state information technology performance report; and

(12) To adopt rules and policies necessary for carrying out the provisions of this chapter as provided in chapter 34.05 RCW.

Sec. 5. RCW 43.105.047 and 1987 c 504 s 6 are each amended to read as follows:

There is created the department of information services. The department shall be headed by a director appointed by the governor with the consent of the senate. The director shall serve at the governor's pleasure and shall receive such salary as determined by the governor. The director shall:

(1) Appoint a confidential secretary and such deputy and assistant directors as needed to administer the department((~~. However, the total number of deputy and assistant directors shall not exceed four~~));

(2) Maintain ((~~and fund a planning component~~)) a policy and regulation division separate from the services component of the department. The policy and regulation division shall be managed as a separate component of the department for accounting and auditing purposes, and shall operate solely on funds appropriated by the legislature for administering the duties of the regulation division;

(3) Appoint such professional, technical, and clerical assistants and employees as may be necessary to perform the duties imposed by this chapter;

(4) Approve, with the director of the office of financial management and the director of each agency undertaking a major project, a project agreement as described in section 8 of this act;

(5) Report to the governor and the board any matters relating to abuses and evasions of this chapter; and

((~~(5)~~)) (6) Recommend statutory changes to the governor and the board.

Sec. 6. RCW 43.105.052 and 1990 c 208 s 7 are each amended to read as follows:

The department shall:

(1) Provide leadership, direction, and assistance to agencies and the judiciary in acquiring, developing, managing, and using information resources in a government setting.

(2) Perform all duties and responsibilities the board delegates to the department, including but not limited to:

(a) The review of agency acquisition plans and requests; and

(b) Implementation of state-wide ((~~and interagency~~)) policies, standards, and guidelines;

((~~(2)~~)) (3) Make available information services to state agencies and local governments on a full cost-recovery basis. These services may include, but are not limited to:

(a) Telecommunications services for voice, data, and video;

(b) Mainframe computing services;

(d) Equipment acquisition assistance, including leasing, brokering, and establishing master contracts;

(e) Facilities management services for information technology equipment, equipment repair, and maintenance service;

(f) ((~~Negotiate [Negotiation] with local cable companies and local governments to provide for connection to local cable services to allow for access to these public and educational channels in the state;~~

~~(g)~~)) Office automation services;

((~~(h)~~)) (g) System development services; and

((~~(i)~~)) (h) Training.

These services are for discretionary use by customers and customers may elect other alternatives for service if, in the judgment of the board, those alternatives are more ((~~cost-effective or provide better service. Agencies may be required to use the backbone network portions of the telecommunications services during an initial start-up period not to exceed three years~~)) effective when taking into consideration such factors as quality of service, economy, consistency within the state information technology plan, and data sharing potential;

((~~(3)~~)) (4) Negotiate with local cable companies and local governments to provide for connection to local cable services to allow for access to these public and educational channels in the state;

(5) Establish rates and fees for services provided by the department to assure that the services component of the department is self-supporting. A billing rate plan shall be developed for a two-year period to coincide with the budgeting process. The rate plan shall be subject to review at least annually by the customer oversight committees. The rate plan shall show the proposed rates by each ((~~cost center~~)) product or service and will show the components of the rate structure as mutually determined by the department and the customer oversight committees. The same rate structure will apply to all user agencies of each ((~~cost center~~)) product or service. The rate plan and any adjustments to rates shall be approved by the office of financial management. The services component shall not subsidize the operations of the ((~~planning component~~)) policy and regulation division. The department may use contract vendors to collect the rates and fees under this subsection;

((~~(4) With the advice of the information services board and agencies, develop and publish state-wide goals and objectives at least biennially;~~

(5) Develop plans for the department's achievement of state-wide goals and objectives. These plans shall address such services as telecommunications, central and distributed computing, local area networks, office automation, and end user computing. The department shall seek the advice of customer oversight committees and the board in the development of these plans;))

(6) Under direction of the information services board and in collaboration with the department of personnel, the higher education personnel board, and other agencies as may be appropriate, develop training plans and coordinate training programs that are responsive to the needs of agencies;

(7) Identify opportunities for the effective use of information ((~~services~~)) resources and coordinate appropriate responses to those opportunities;

(8) Assess agencies' projects, acquisitions, plans, or overall information processing performance as requested by the board, agencies, the director of financial management, or the legislature. Agencies may be required to reimburse the department for agency-requested reviews;

(9) ((~~Develop planning, budgeting, and expenditure reporting requirements, in conjunction with the office of financial management, for agencies to follow;~~

~~(10) Assist the office of financial management with budgetary and policy review of agency plans for information services;~~

~~(11)~~)) Provide ((~~staff support from the planning component to the board for~~)) a policy and regulation division which shall:

(a) Provide staff support to the board for:

(i) Meeting preparation, notices, and minutes;

((~~(b)~~)) (ii) Promulgation of policies, standards, and guidelines adopted by the board;

((~~(c)~~)) (iii) Supervision of studies and reports requested by the board; and

((~~(d)~~)) (iv) Conducting reviews and assessments as directed by the board;

((~~(12)~~)) (b) Be the primary department division responsible for enforcement of policies, standards, and guidelines adopted by the board;

(c) Develop a state strategic information technology plan for board review and adoption. The purpose of the plan is to set direction for information technology in the state and formally establish the state's mission, goals, and objectives for information technology. The department shall forward copies of the approved plan to the board, office of the governor, office of financial management, legislative fiscal committees, and state agency directors;

(d) Using agency performance reports, prepare an annual state performance report on information technology. The purpose of the report is to evaluate state performance in the field of information resources against stated objectives and to describe the state's resource management activities for the previous year. The report shall include an assessment of progress made toward implementing the state's strategic information technology plan and an inventory of the state's major information technology resources which specifically identifies major resources acquired during the previous fiscal year. The report shall be distributed to the office of financial management, appropriate legislative committees, and agency directors;

(e) Develop planning, budgeting, and expenditure reporting requirements, in conjunction with the office of financial management, for agencies to follow;

(f) Review and provide recommendations to the office of financial management regarding agency budget requests for information resources. Each agency will be provided a copy of the department's recommendations on its information technology budget request. Copies of the department's recommendations will be submitted to appropriate legislative committees, concurrently with submission of the governor's budget;

(g) Approve each phase of a major project undertaken by an agency. Work on a phase shall not begin until the department has approved the work performed on the previous phase;

(h) At key decision points, mutually agreed upon by the department and the agency undertaking the project, recommend whether a project proceed to its next phase; and

(i) Review agency information systems or information technology projects when requested by the information services board, the office of financial management, or the legislature by concurrent resolution, bill, or budget proviso;

(10) Be the lead agency in coordinating video telecommunications services for all state agencies and develop, pursuant to board policies, standards and common specifications for leased and purchased telecommunications equipment. The department shall not evaluate the merits of school curriculum, higher education course offerings, or other education and training programs proposed for transmission and/or reception using video telecommunications resources. Nothing in this section shall abrogate or abridge the legal responsibilities of licensees of telecommunications facilities as licensed by the federal communications commission on March 27, 1990; ((~~and~~

~~(13)~~)) (11) Adopt rules and policies necessary to carry out the provisions of this chapter, as provided in chapter 34.05 RCW; and

(12) Perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

NEW SECTION. Sec. 7. (1) In addition to the requirements established by RCW 43.88.030, each agency's budget request shall specifically identify those portions of the request related to information resources and additional information related to information resources deemed pertinent by the office of financial management. Agency requests shall be related to the agency goals and objectives for each program as required by RCW 43.88.090(2).

(2) The department shall develop criteria for the review of agency budget requests for information resources. The criteria shall include, but are not limited to, program impacts of the information technology, the risks to successful implementation and use of the information resource, consistency with agency strategic information resources plans, consistency with the state strategic information resources plan, and costs and benefits. Following this review, the department will provide the office of financial management and the legislative fiscal committees with its recommendations for funding all or part of the request. At a time specified by the office of financial management, these recommendations are to be submitted by the department to the office of financial management and will be submitted to the legislative fiscal committees concurrently with submission of the governor's budget. The department is authorized to exempt, from review under this subsection, those portions of agency budget requests which do not contain major projects or initiatives and to develop criteria which will determine at what level projects will be exempted from review. However, no exemption for the review of any portion of an agency budget request for information resources shall be given by the department to any agency for which the legislature has requested a complete review under RCW 43.105.052(9)(i).

(3) Funds shall be released by the office of financial management to agencies receiving appropriations based upon the determination by the department that the requirements of section 8 of this act, establishing agency project management, have been met, but in no case shall funds be released for the succeeding phase of an agency project until all of the requirements of the prior phase have been met.

(4) All fiscal information regarding information resources shall be in the form, and in formats, established by the state budgeting, accounting, and reporting system. To the greatest extent practicable, fiscal information regarding information resources is to be captured by existing state-wide fiscal systems so as to reduce the reporting burden on agencies and increase the comparability of fiscal information across state government.

(5) All benefits, cost avoidance, and cost savings resulting from the implementation of new information systems and the operation of existing information resources shall be reported to the office of financial management as part of each agency budget submittal. Following the identification of these cost savings, the director of each agency shall develop, with the director of financial management, a fiscal agreement determining what portion of the savings will be recommended for retention in the governor's budget recommendation for that agency and the portion to be made available for reallocation in the governor's recommended budget.

NEW SECTION. Sec. 8. (1) Major projects shall be funded on an incremental basis, which consists of the following increments:

(a) Needs assessment and project definition;

(b) Definition of requirements and general design and preparation of a feasibility study; and

(2) Agency projects shall follow a systems development life cycle, which is composed of a needs assessment and project definition, a requirements definition and general design, and feasibility study design; construction implementation of the system; and review of the achievements of the system. Major information technology projects or initiatives which are proposed, in process, or in operation shall be identified in the agency strategic plans. The following requirements apply to agencies initiating new information technology projects:

(a) For proposed projects, a needs assessment and project definition shall be prepared, in a format prescribed by the department, which will provide an initial and preliminary estimate of the functions, scope, risks, and costs and benefits of the proposed system. These estimates are tentative and shall be modified in the following phases of the project when more accurate information becomes available.

(b) An agency receiving an appropriation for a proposed project shall prepare a project requirements statement and general design in a format prescribed by the department. The department will specify the criteria for the review and approval of these documents. If these documents are approved, the agency shall prepare a project feasibility study for departmental review and approval in a format specified by the department. The feasibility study will provide detailed and specific statements of scope, functionality, development tasks and times, and estimated costs and benefits. These estimates are subject to change, and may be modified by the agency, subject to formats and procedures prescribed by the department.

(3) An agency requesting funds for a proposed major information technology project shall request incremental funding for phases of the proposed system in a format established by the office of financial management. The development of needs assessments and project definitions, requirements definition and general design, and the feasibility study may occur with existing resources and without specific funding, with the concurrence of the department. Funding for major projects shall be requested for each of the remaining phases and, if appropriated, funds shall be released by the office of financial management only on a phase-by-phase basis and only where the prior phase is completed.

(4) An agency receiving an appropriation for a major information technology project or initiative shall prepare a project agreement in a format prescribed by the department. The agency head, the director, and the director of financial management shall approve the project agreement. A copy of the project agreement shall be provided to the legislative fiscal committees. The project agreement shall address factors critical to the success of the overall project, including, but not limited to:

(a) Project organization;

(b) Scope, change, and cost control;

(d) Project monitoring and quality assurance; and

(e) A project work plan, specifying timelines and deliverables.

Any changes to the agreement shall only be made with the mutual consent of the parties. The legislative fiscal committees shall receive written notification of all changes.

(5) An agency shall conduct decision point reviews upon reaching the key decision points identified in the work plan of the project agreement. The agency will prepare a report of its findings and recommendations in a format prescribed by the department, which review shall be submitted to the department and the office of financial management. The department will consider the agency report and recommend to the office of financial management whether the project should continue to the next phase or not. The office of financial management will consider the department's recommendation in determining if the agency should begin the next phase of the project. If the decision point review coincides with the end of a project phase, appropriated funds will be released by the office of financial management only if the requirements of the current phase have been met. If the office of financial management, after consultation with the department, determines that an agency has failed to meet its project agreement responsibilities, the office of financial management shall withhold all further releases of appropriated funds for the project, or shall require the agency to accomplish specific corrective actions prior to further release of funds and notify the legislative fiscal committees of this action. Key decision point reviews include, but are not limited to:

(a) Progress in meeting project objectives;

(b) Effectiveness of project management;

(d) Project expenditures and variance reporting, including an explanation of the cause of the variance;

(e) Changes in benefits expected from the project;

(f) Risk management and mitigation; and

(g) Such additional information as is requested by the department.

(6) At the direction of, and in a format and time frame prescribed by the department, an agency shall submit regular project progress and risk assessment reports. The department shall prepare a consolidated report which shall be distributed to the board, appropriate legislative committees, agency directors, and the office of financial management.

(7) Upon the implementation of a new information system, project, or application, an agency shall prepare a written postimplementation review to determine the effectiveness of the system in supporting the agency's goals and objectives. The review shall be in a format prescribed by the department and shall include, but is not limited to:

(a) Determination of the extent to which the project accomplished its objectives;

(b) Statement of the actual costs of development and an analysis of the variance from the original estimated costs;

(d) Significant lessons learned which will be useful for future development efforts of the agency or state government, unanticipated problems which were encountered and how they were resolved, and users' evaluation of the performance of the new system.

NEW SECTION. Sec. 9. (1) Each agency, based upon the state strategic information technology plan, shall adopt a strategic information technology plan and submit it to the department for review and recommendations to the board. The plan shall be prepared in a format prescribed by the department. The plan shall be approved by the agency director. The purpose of the plan is to establish directions and priorities for the agency. The plan shall include, at a minimum:

(a) A statement of the agency's mission, goals, and objectives for information technology;

(b) An explanation of how (a) of this subsection supports the state strategic information technology plan as adopted by the board; and

(c) Major projects and resources required to meet the strategic information management objectives, as well as an estimated schedule for the proposed projects, and, when accurate estimates have been developed, total projected costs of the projects.

An approved plan shall be amended by the agency to reflect major changes in the direction of a major project. An approved plan may also be amended to reflect other changes which the agency determines warrant amendment. Amendments shall be submitted to the department for approval. Copies of approved amendments shall be provided to the board, the office of financial management and the legislative fiscal committees.

(2) An agency shall prepare a tactical information technology plan based upon funds appropriated. The plan shall be in a format prescribed by the department and shall include, at a minimum:

(a) Major projects, services and support activities resources to be undertaken;

(b) Project objectives based upon funds appropriated; and

(3) Each agency shall prepare an annual performance report and inventory which shall be submitted to the department. The performance report shall be in a format prescribed by the department. The purpose of the report is to evaluate the agency's performance in the field of information resources management against state and agency objectives and describe its information resource management activities for the previous year, and shall include, at a minimum:

(a) A summary of the agency's information resource management activities;

(b) An explanation of the agency's major successes and failures in its information technology program;

(c) An assessment of progress made toward implementing the agency's projects defined in its strategic information and tactical technology plans;

(d) An assessment of progress made toward implementing the agency's objectives for information technology management services and support;

(e) A comparison and assessment of the agency's estimated expenditures for information resources management for the prior fiscal year and appropriations for those resources contained in the agency's approved budget. Major differences between expenditures and appropriations shall be noted and justified;

(f) An inventory list, by major categories, of the agency's information technology resources which specifically identifies resources acquired during the previous fiscal year;

(g) An assessment of opportunities for agency participation in multi-agency information resources management activities;

(h) Lessons learned as a result of the year's activities; and

(i) Other items deemed necessary by the department.

Sec. 10. RCW 43.88.030 and 1991 c 284 s 1 are each amended to read as follows:

The budget document or documents shall also contain:

(a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, and those anticipated for the ensuing biennium;

(b) The undesignated fund balance or deficit, by fund;

(c) Such additional information dealing with expenditures, revenues, workload, performance and personnel as the legislature may direct by law or concurrent resolution;

(d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;

(e) Tabulations showing expenditures classified by fund, function, activity and object;

(f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury; ((~~and~~))

(g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.70 RCW, shown by agency and in total; and

(h) Recommendations of the department of information services under section 7 of this act related to agency requests for funding information resources.

(2) The budget document or documents shall include detailed estimates of all anticipated revenues applicable to proposed operating or capital expenditures and shall also include all proposed operating or capital expenditures. The total of beginning undesignated fund balance and estimated revenues less working capital and other reserves shall equal or exceed the total of proposed applicable expenditures. The budget document or documents shall further include:

(a) Interest, amortization and redemption charges on the state debt;

(b) Payments of all reliefs, judgments and claims;

(d) Expenditures incident to the operation for each agency;

(e) Revenues derived from agency operations;

(g) A showing and explanation of amounts of general fund obligations for debt service and any transfers of moneys that otherwise would have been available for general fund appropriations;

(h) Common school expenditures on a fiscal-year basis;

(i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods.

(3) A separate budget document or schedule may be submitted consisting of:

(a) Expenditures incident to current or pending capital projects and to proposed new capital projects, relating the respective amounts proposed to be raised therefor by appropriations in the budget and the respective amounts proposed to be raised therefor by the issuance of bonds during the fiscal period;

(b) A capital program consisting of proposed capital projects for at least the two fiscal periods succeeding the next fiscal period. The capital program shall include for each proposed project a statement of the reason or purpose for the project along with an estimate of its cost;

(c) A capital plan consisting of proposed capital spending for at least four fiscal periods succeeding the next fiscal period;

(d) Such other information bearing upon capital projects as the governor shall deem to be useful to the legislature;

(e) Such other information relating to capital improvement projects as the legislature may direct by law or concurrent resolution.

(4) No change affecting the comparability of agency or program information relating to expenditures, revenues, workload, performance and personnel shall be made in the format of any budget document or report presented to the legislature under this section or RCW 43.88.160(1) relative to the format of the budget document or report which was presented to the previous regular session of the legislature during an odd-numbered year without prior legislative concurrence. Prior legislative concurrence shall consist of (a) a favorable majority vote on the proposal by the standing committees on ways and means of both houses if the legislature is in session or (b) a favorable majority vote on the proposal by members of the legislative evaluation and accountability program committee if the legislature is not in session.

Sec. 11. RCW 43.88.030 and 1991 c 358 s 1 and 1991 c 284 s 1 are each reenacted and amended to read as follows:

(1) The director of financial management shall provide all agencies with a complete set of instructions for submitting biennial budget requests to the director at least three months before agency budget documents are due into the office of financial management. The director shall provide agencies that are required under RCW 44.40.070 to develop comprehensive six-year program and financial plans with a complete set of instructions for submitting these program and financial plans at the same time that instructions for submitting other budget requests are provided. The budget document or documents shall consist of the governor's budget message which shall be explanatory of the budget and shall contain an outline of the proposed financial policies of the state for the ensuing fiscal period, as well as an outline of the proposed six-year financial policies where applicable, and shall describe in connection therewith the important features of the budget. The message shall set forth the reasons for salient changes from the previous fiscal period in expenditure and revenue items and shall explain any major changes in financial policy. Attached to the budget message shall be such supporting schedules, exhibits and other explanatory material in respect to both current operations and capital improvements as the governor shall deem to be useful to the legislature. The budget document or documents shall set forth a proposal for expenditures in the ensuing fiscal period, or six-year period where applicable, based upon the estimated revenues as approved by the economic and revenue forecast council or upon the estimated revenues of the office of financial management for those funds, accounts, and sources for which the office of the economic and revenue forecast council does not prepare an official forecast, including those revenues anticipated to support the six-year programs and financial plans under RCW 44.40.070. In estimating revenues to support financial plans under RCW 44.40.070, the office of financial management shall rely on information and advice from the interagency revenue task force. Revenues shall be estimated for such fiscal period from the source and at the rates existing by law at the time of submission of the budget document, including the supplemental budgets submitted in the even-numbered years of a biennium. However, the estimated revenues for use in the governor's budget document may be adjusted to reflect budgetary revenue transfers and revenue estimates dependent upon budgetary assumptions of enrollments, workloads, and caseloads. All adjustments to the approved estimated revenues must be set forth in the budget document. The governor may additionally submit, as an appendix to each supplemental, biennial, or six-year agency budget or to the budget document or documents, a proposal for expenditures in the ensuing fiscal period from revenue sources derived from proposed changes in existing statutes.

Supplemental and biennial documents shall reflect a six-year expenditure plan consistent with estimated revenues from existing sources and at existing rates for those agencies required to submit six-year program and financial plans under RCW 44.40.070. Any additional revenue resulting from proposed changes to existing statutes shall be separately identified within the document as well as related expenditures for the six-year period.

The budget document or documents shall also contain:

(a) Revenues classified by fund and source for the immediately past fiscal period, those received or anticipated for the current fiscal period, those anticipated for the ensuing biennium, and those anticipated for the ensuing six-year period to support the six-year programs and financial plans required under RCW 44.40.070;

(b) The undesignated fund balance or deficit, by fund;

(c) Such additional information dealing with expenditures, revenues, workload, performance, and personnel as the legislature may direct by law or concurrent resolution;

(d) Such additional information dealing with revenues and expenditures as the governor shall deem pertinent and useful to the legislature;

(e) Tabulations showing expenditures classified by fund, function, activity and object;

(f) A delineation of each agency's activities, including those activities funded from nonbudgeted, nonappropriated sources, including funds maintained outside the state treasury; ((~~and~~))

(g) Identification of all proposed direct expenditures to implement the Puget Sound water quality plan under chapter 90.70 RCW, shown by agency and in total; and

(h) Recommendations of the department of information services under section 7 of this act related to agency requests for funding information resources.

(a) Interest, amortization and redemption charges on the state debt;

(b) Payments of all reliefs, judgments and claims;

(d) Expenditures incident to the operation for each agency;

(e) Revenues derived from agency operations;

(f) Expenditures and revenues shall be given in comparative form showing those incurred or received for the immediately past fiscal period and those anticipated for the current biennium and next ensuing biennium, as well as those required to support the six-year programs and financial plans required under RCW 44.40.070;

(g) A showing and explanation of amounts of general fund and other funds obligations for debt service and any transfers of moneys that otherwise would have been available for appropriation;

(h) Common school expenditures on a fiscal-year basis;

(i) A showing, by agency, of the value and purpose of financing contracts for the lease/purchase or acquisition of personal or real property for the current and ensuing fiscal periods.

(3) A separate capital budget document or schedule shall be submitted that will contain the following:

(a) A capital plan consisting of proposed capital spending for at least four fiscal periods succeeding the next fiscal period;

(b) A capital program consisting of proposed capital projects for at least the two fiscal periods succeeding the next fiscal period;

(c) A capital plan consisting of proposed capital spending for at least four fiscal periods succeeding the next fiscal period;

(d) A statement of the reason or purpose for a project;

(e) Verification that a project is consistent with the provisions set forth in chapter 36.70A RCW;

(f) A statement about the proposed site, size, and estimated life of the project, if applicable;

(g) Estimated total project cost;

(h) Estimated total project cost for each phase of the project as defined by the office of financial management;

(i) Estimated ensuing biennium costs;

(j) Estimated costs beyond the ensuing biennium;

(k) Estimated construction start and completion dates;

(l) Source and type of funds proposed;

(m) Such other information bearing upon capital projects as the governor deems to be useful;

(n) Standard terms, including a standard and uniform definition of maintenance for all capital projects;

(o) Such other information as the legislature may direct by law or concurrent resolution.

For purposes of this subsection (3), the term "capital project" shall be defined subsequent to the analysis, findings, and recommendations of a joint committee comprised of representatives from the house capital appropriations committee, senate ways and means committee, legislative transportation committee, legislative evaluation and accountability program committee, and office of financial management.

Sec. 12. RCW 39.29.006 and 1987 c 414 s 2 are each amended to read as follows:

As used in this chapter:

(1) "Agency" means any state office or activity of the executive and judicial branches of state government, including state agencies, departments, offices, divisions, boards, commissions, and educational, correctional, and other types of institutions.

(2) "Client services" means services provided directly to agency clients including, but not limited to, medical and dental services, employment and training programs, residential care, and subsidized housing.

(3) "Competitive solicitation" means a documented formal process providing an equal and open opportunity to qualified parties and culminating in a selection based on criteria which may include such factors as the consultant's fees or costs, ability, capacity, experience, reputation, responsiveness to time limitations, responsiveness to solicitation requirements, quality of previous performance, and compliance with statutes and rules relating to contracts or services.

(4) "Consultant" means an independent individual or firm contracting with an agency to perform a service or render an opinion or recommendation according to the consultant's methods and without being subject to the control of the agency except as to the result of the work. The agency monitors progress under the contract and authorizes payment.

(5) "Emergency" means a set of unforeseen circumstances beyond the control of the agency that either:

(a) Present a real, immediate threat to the proper performance of essential functions; or

(b) May result in material loss or damage to property, bodily injury, or loss of life if immediate action is not taken.

(6) "Evidence of competition" means documentation demonstrating that the agency has solicited responses from multiple firms in selecting a consultant.

(7) "Personal service" means professional or technical expertise provided by a consultant to accomplish a specific study, project, task, or other work statement. This term does not include purchased services as defined under subsection (9) of this section or information resources as defined in RCW 43.105.020(6). This term does include client services.

(8) "Personal service contract" means an agreement, or any amendment thereto, with a consultant for the rendering of personal services to the state which is consistent with RCW 41.06.380.

(9) "Purchased services" means services provided by a vendor to accomplish routine, continuing and necessary functions. This term includes, but is not limited to, services acquired under RCW 43.19.190 or 43.105.041 for equipment maintenance and repair; operation of a physical plant; security; computer hardware and software maintenance; data entry; key punch services; and computer time-sharing, contract programming, and analysis.

(10) "Sole source" means a consultant providing professional or technical expertise of such a unique nature that the consultant is clearly and justifiably the only practicable source to provide the service. The justification shall be based on either the uniqueness of the service or sole availability at the location required.

Sec. 13. RCW 43.19.1901 and 1987 c 434 s 23 are each amended to read as follows:

The term "purchase" as used in RCW 43.19.190 through 43.19.200, and as they may hereafter be amended, shall include leasing or renting: PROVIDED, That the purchasing, leasing or renting of electronic data processing equipment shall not be included in the term "purchasing" if and when such transactions are otherwise expressly provided for by law, including acquisitions under authority of the department of information systems under chapter 43.105 RCW.

The acquisition of job services and all other services for the family independence program under chapter 74.21 RCW shall not be included in the term "purchasing" under this chapter.

NEW SECTION. Sec. 14. RCW 43.105.005 and 1990 c 208 s 1 & 1987 c 504 s 1 are each repealed.

NEW SECTION. Sec. 15. Sections 7 through 9 of this act are each added to chapter 43.105 RCW.

NEW SECTION. Sec. 16. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 17. (1) This act is necessary to implement planning for the 1993-95 biennial budget.

(2) Sections 1 through 10 and 12 through 14 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.

(3) Section 11 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect April 1, 1992.

NEW SECTION. Sec. 18. Section 10 of this act shall expire April 1, 1992.