BILL REQ. #:  H-4230.1 

Read first time 01/22/10.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to information technology in state government; amending RCW 43.105.005, 43.105.017, 43.105.052, 43.105.172, 41.06.142, 43.105.060, 43.105.200, 43.105.170, 43.105.830, and 43.105.835; reenacting and amending RCW 43.105.020; adding new sections to chapter 43.105 RCW; adding a new section to chapter 43.41 RCW; and creating a new section.

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

Sec. 1   RCW 43.105.005 and 1990 c 208 s 1 are each amended to read as follows:
     It is a purpose of this chapter to provide for coordinated planning and management of state information services by consolidating the operational functions of information technology, including servers and networks, for state government within the department of information services and to consider outsourcing to the private sector a significant portion of information technology services where feasible and cost-effective. ((The legislature recognizes that information systems, telecommunications, equipment, software, and services must satisfy the needs of end users and that many appropriate and cost-effective alternatives exist for meeting these needs, such as shared mainframe computing, shared voice, data, and video telecommunications services, local area networks, departmental minicomputers, and microcomputers.))

Sec. 2   RCW 43.105.017 and 1992 c 20 s 6 are each amended to read as follows:
     It is the intent of the legislature that:
     (1) State government use voice, data, and video telecommunications technologies to:
     (a) Transmit and increase access to live, interactive classroom instruction and training;
     (b) Provide for interactive public affairs presentations, including a public forum for state and local issues;
     (c) Facilitate communications and exchange of information among state and local elected officials and the general public;
     (d) Enhance statewide 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) ((The primary responsibility for the management and use of information, information systems, telecommunications, equipment, software, and services rests with each agency head;
     (4))) Resources be used in the most efficient manner and services be shared when cost-effective;
     (((5))) (4) A structure be created to:
     (a) Plan and manage telecommunications and computing networks;
     (b) Increase agencies' awareness of information sharing opportunities; and
     (c) Assist agencies in implementing such possibilities;
     (((6))) (5) An acquisition process for equipment, proprietary software, and related services be established that meets the needs of the users, considers the exchange of information, and promotes fair and open competition;
     (((7))) (6) To the greatest extent possible, major information technology projects be implemented on an incremental basis;
     (((8))) (7) The state maximize opportunities to exchange and share data and information by moving toward implementation of open system architecture based upon interface standards providing for application and data portability and interoperability;
     (((9))) (8) To the greatest extent possible, the state recognize any price performance advantages which may be available in midrange and personal computing architecture;
     (((10))) (9) The state improve recruitment, retention, and training of information technology professional staff;
     (((11))) (10) Plans, proposals, and acquisitions for information services be reviewed from a financial and management perspective as part of the budget process; and
     (((12))) (11) State government adopt policies and procedures that maximize the use of existing video telecommunications resources, coordinate and develop video telecommunications in a manner that is cost-effective and encourages shared use, and ensure the appropriate use of video telecommunications to fulfill identified needs.

Sec. 3   RCW 43.105.020 and 2009 c 565 s 32, 2009 c 509 s 7, and 2009 c 486 s 14 are each reenacted and amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly ((required [requires])) requires otherwise.
     (1) "Administrator" means the community technology opportunity program administrator designated by the department.
     (2) "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.
     (3) "Board" means the information services board.
     (4) "Broadband" means a high-speed, high capacity transmission medium, using land-based, satellite, wireless, or any other mechanism, that can carry either signals or transmit data, or both, over long distances by using a wide range of frequencies.
     (5) "Committee" means the state interoperability executive committee.
     (6) "Common vendor registration and bid notification system" has the definition in RCW 39.29.006.
     (7) "Community technology programs" means programs that are engaged in diffusing information and communications technology in local communities, particularly in unserved and underserved areas of the state. These programs may include, but are not limited to, programs that provide education and skill-building opportunities, hardware and software, internet connectivity, digital media literacy, development of locally relevant content, and delivery of vital services through technology.
     (8) "Council" means the advisory council on digital inclusion created in RCW 43.105.400.
     (9) "Department" means the department of information services.
     (10) "Director" means the director of the department.
     (11) "Educational sectors" means those institutions of higher education, school districts, and educational service districts that use the network for distance education, data transmission, and other uses permitted by the K-20 board.
     (12) "Equipment" means the machines, devices, and transmission facilities used in information processing, such as computers, word processors, terminals, telephones, wireless communications system facilities, cables, and any physical facility necessary for the operation of such equipment.
     (13) "High-speed internet" means broadband.
     (14) "Information" includes, but is not limited to, data, text, voice, and video.
     (15) "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.
     (16) "Information services" means data processing, telecommunications, office automation, and computerized information systems.
     (17) "Information technology portfolio" or "portfolio" means a strategic management process documenting relationships between agency missions and information technology and telecommunications investments.
     (18) "K-20 educational network board" or "K-20 board" means the K-20 educational network board created in RCW 43.105.800.
     (19) "K-20 network" means the network established in RCW 43.105.820.
     (20) "K-20 network technical steering committee" or "committee" means the K-20 network technical steering committee created in RCW 43.105.810.
     (21) "Local governments" includes all municipal and quasi municipal corporations and political subdivisions, and all agencies of such corporations and subdivisions authorized to contract separately.
     (22) "Oversight" means a process of comprehensive risk analysis and management designed to ensure optimum use of information technology resources and telecommunications.
     (23) "Proprietary software" means that software offered for sale or license.
     (24) "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, telecommunications installation and maintenance, data entry, keypunch services, programming services, and computer time-sharing.
     (25) "Small business" has the definition in RCW 39.29.006.
     (26) "Telecommunications" means the transmission of information by wire, radio, optical cable, electromagnetic, or other means.
     (27) "Video telecommunications" means the electronic interconnection of two or more sites for the purpose of transmitting and/or receiving visual and associated audio information. Video telecommunications shall not include existing public television broadcast stations as currently designated by the department of commerce under chapter 43.330 RCW.
     (28) "Authorized preferred provider" means the entity selected by the office of financial management under section 10 of this act.

Sec. 4   RCW 43.105.052 and 2000 c 180 s 1 are each amended to read as follows:
     The department shall:
     (1) Perform all duties and responsibilities the board delegates to the department, including but not limited to:
     (a) The review of agency information technology portfolios and related requests; and
     (b) Implementation of statewide and interagency policies, standards, and guidelines;
     (2) Direct the formulation and creation of policies, guidelines, standards, and specifications for the purchase, development, and maintenance of information technology for state agencies including, but not limited to, those:
     (a) Required to support state and local government exchange, acquisition, storage, use, sharing, and distribution of geographic or base map data and related technologies; and
     (b) Necessary to support a unified approach to information technology across the totality of state government, thereby ensuring that the citizens and businesses of the state receive the greatest possible security, value, and convenience from investments made in technology;
     (3) Direct the development of policies and procedures, in consultation with the office of financial management and the board, that are integrated into the state's strategic planning and performance budgeting processes and that state agencies and public institutions of higher education must follow in developing information technology plans and technology-related budget requests. These policies and procedures must require consideration of the contribution of current and proposed technology expenditures to the support of agency and institution priority functional activities, as well as current and future operating expenses, and must be used by all state agencies and public institutions of higher education in preparing budget requests;
     (4)(a) Review budget requests for information technology from state agencies and public institutions of higher education and recommend budget priorities to the office of financial management. This review includes, but is not limited to, all data processing or other related projects for amounts exceeding one hundred thousand dollars in which the agency or institution has entered into or plans to enter into a contract, agreement, or other financing agreement or other arrangement that requires the state to either pay for the contract by foregoing revenue collections, or allows or assigns to another party the collection on behalf or for the state any fees, charges, or other assessments or revenues to pay for the project.
     (b) For each project, the agency or institution shall provide to the department: (i) A summary of the terms; (ii) the anticipated duration; and (iii) the cost or charges to any user, whether a state agency or institution or other party not directly a party to the project arrangements. The descriptions must also include any terms or conditions that bind the state or restrict the state's operations and the methods of procurement employed to reach the terms;
     (5) Direct the development of policies and procedures for the effective management of investments in information technology throughout its entire life cycle including, but not limited to, project definition, procurement, development, implementation, operation, performance evaluation, and enhancement or retirement. The policies and procedures must include, at a minimum, the periodic review by the director of state agency and public institution of higher education information technology projects estimated to cost one million dollars or more or deemed to be mission-critical or of statewide application by the director;
     (6) Periodically evaluate the feasibility of outsourcing information technology resources and services and outsource those resources and services that are feasible and beneficial to the state;
     (7) Direct the compilation and maintenance of an inventory of information technology including, but not limited to, personnel, facilities, equipment, goods, and contracts for services;
     (8) Evaluate the needs of state agencies with regard to:
     (a) A consistent, reliable, and secure information technology infrastructure;
     (b) Existing capabilities with regard to building and supporting that infrastructure; and
     (c) Recommended approaches to ensure the future development, maintenance, and financing of an information technology infrastructure befitting the needs of state agencies and the service level requirements of its citizens;
     (9) Develop and adopt policies, standards, and guidelines for managing information technology by state agencies and institutions;
     (10) Develop and adopt policies, standards, and guidelines for the procurement of all information technology and telecommunications goods and services for state agencies;
     (11) Make available information services to state agencies and local governments and public benefit nonprofit corporations ((on a full cost-recovery basis)). For the purposes of this section "public benefit nonprofit corporation" means a public benefit nonprofit corporation as defined in RCW 24.03.005 that is receiving local, state, or federal funds either directly or through a public agency other than an Indian tribe or political subdivision of another state. These services may include, but are not limited to:
     (a) Telecommunications services for voice, data, and video;
     (b) Mainframe computing services;
     (c) Support for departmental and microcomputer evaluation, installation, and use;
     (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) 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) System development services; and
     (i) Training((.
     These services are for discretionary use by customers and customers may elect other alternatives for service if 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));
     (((3))) (12) Establish rates and fees for services provided by the department to ((assure)) ensure 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 advisory board. The rate plan shall show the proposed rates by each cost center and will show the components of the rate structure as mutually determined by the department and the customer advisory board. The same rate structure will apply to all user agencies of each cost center. 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 strategic planning and policy component;
     (((4))) (13) With the advice of the information services board and agencies, develop a state strategic information technology plan and performance reports as required under RCW 43.105.160;
     (((5))) (14) Develop plans for the department's achievement of statewide goals and objectives set forth in the state strategic information technology plan required under RCW 43.105.160. 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 the customer advisory board and the board in the development of these plans;
     (((6))) (15) Under direction of the information services board and in collaboration with the department of personnel, and other agencies as may be appropriate, develop training plans and coordinate training programs that are responsive to the needs of agencies;
     (((7))) (16) Identify opportunities for the effective use of information services and coordinate appropriate responses to those opportunities;
     (((8))) (17) Assess agencies' projects, acquisitions, plans, information technology portfolios, 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))) (18) Develop planning, budgeting, and expenditure reporting requirements, in conjunction with the office of financial management, for agencies to follow;
     (((10))) (19) Assist the office of financial management with budgetary and policy review of agency plans for information services;
     (((11))) (20) Provide staff support from the strategic planning and policy component to the board for:
     (a) Meeting preparation, notices, and minutes;
     (b) Promulgation of policies, standards, and guidelines adopted by the board;
     (c) Supervision of studies and reports requested by the board;
     (d) Conducting reviews and assessments as directed by the board;
     (((12))) (21) 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 communication commission on March 27, 1990; and
     (((13))) (22) Perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.105 RCW to read as follows:
     (1) Develop an approval process for proposed major information technology projects by state agencies to ensure the projects conform to the state strategic information technology plan developed under RCW 43.105.160;
     (2) Establish minimum qualifications, training, and standards for project managers;
     (3) Review and approve all procurement solicitations involving major information technology projects;
     (4) Develop and update a project management methodology to be used by state agencies in the development of information technology;
     (5) Direct the development of any statewide or multiagency enterprise projects;
     (6) Develop and update an information clearinghouse that identifies best practices and new developments in information technology, including detailed information regarding the state's previous experiences with the development of major information technology projects;
     (7) Direct the development of policies, procedures, and standards, in consultation with the board, for assessing security risks, determining the appropriate security measures, and performing security audits of government databases and data communications. At a minimum, these policies, procedures, and standards must address the scope of security audits and which entities are authorized to conduct security audits; and
     (8) Designate a government entity to oversee, plan, and coordinate the conduct of periodic security audits of all executive branch agencies and institutions of higher education regarding the protection of government databases and data communications. The designated government entity may contract with a private firm or firms that specialize in conducting such audits subject to the approval of the director.

NEW SECTION.  Sec. 6   A new section is added to chapter 43.105 RCW to read as follows:
     The department shall have the following powers and duties concerning the development, operation, and management of telecommunications and information technology services used by state agencies:
     (1) To manage and coordinate the various telecommunications facilities and communications services, centers, and operations used by the state;
     (2) To acquire, lease, or construct facilities and equipment as necessary to deliver comprehensive communications services and to maintain the facilities and equipment, owned or leased;
     (3) To reduce server inventory by consolidating servers geographically;
     (4) To optimize telephony architecture statewide through centralization of telephony;
     (5) To centralize control of personal computer and server replacement cycles and streamline personal computer support statewide;
     (6) To provide technical assistance to state agencies in such areas as:
     (a) Designing management information systems;
     (b) Performing systems development services, including design, application programming, and maintenance;
     (c) Conducting research and sponsoring demonstration projects pertaining to all facets of telecommunications and communications services; and
     (d) Planning and forecasting for future needs in communications and information technology services; and
     (7) To develop and implement information, billing, and collection systems that will assist state agencies in forecasting their needs and managing their operations.

NEW SECTION.  Sec. 7   A new section is added to chapter 43.105 RCW to read as follows:
     (1) All information technology and telecommunications goods and services must be procured by:
     (a) The department for its own benefit or on behalf of other state agencies or institutions; or
     (b) Other agencies and institutions to the extent authorized by the department.
     (2) The director shall disapprove any procurement that does not conform to the statewide strategic information technology plan or to the individual information technology portfolios of state agencies or institutions.
     (3) All statewide contracts and agreements made and entered into by the department for the purchase of communications services, telecommunications facilities, and information technology goods and services must provide for the inclusion of counties, cities, and towns in the contracts and agreements. Notwithstanding the provisions of RCW 41.06.142, the department may enter into multiple vendor contracts for the referenced services, facilities, and goods and services.
     (4) The department may designate categories of information technology goods and services that may be procured by state agencies without seeking prior authorization from the department.
     (5) This section does not apply to the legislative branch.

Sec. 8   RCW 43.105.172 and 1999 c 80 s 2 are each amended to read as follows:
     (1) Information technology portfolios prepared by state agencies shall reflect (((1))):
     (a) Links among an agency's objectives, business plan, and technology;
     (((2))) (b) Analysis of the effect of an agency's proposed new technology investments on its existing infrastructure and business functions; and
     (((3))) (c) Analysis of the effect of proposed information technology investments on the state's information technology infrastructure.
     (2) The director of each state agency shall designate an existing employee to be the agency's information technology resource who is responsible for:
     (a) Preparing and updating the agency's information technology portfolio under RCW 43.105.170; and
     (b) Complying with the procedures, policies, and guidelines established by the director under section 5 of this act.

NEW SECTION.  Sec. 9   (1) By September 1, 2010, the office of financial management, in consultation with the director of the department of information services and the department of information services, shall develop a migration strategy to consolidate all operational information technology staff and resources within the department of information services, with a completion date of January 1, 2012. Except as provided in (d) of this subsection, this strategy must:
     (a) Transfer all operational information technology staff from state agencies to the department of information services according to the following schedule:
     (i) Fifty or less full-time equivalents: January 1, 2011;
     (ii) Fifty to four hundred full-time equivalents: July 1, 2011; and
     (iii) Four hundred or more full-time equivalents: January 1, 2012;
     (b) Direct state agencies to use information technology shared services provided by the department of information services or its authorized preferred provider;
     (c) Transfer newly established information technology positions to the department of information services beginning January 1, 2011, at the discretion of the director of the department of information services;
     (d) Transfer the administrative information technology support functions of the office of financial management and the department of personnel to the department of information services by January 1, 2011; and
     (e) Report to the governor and the legislature on the progress and timeline for completion of the migration by December 1, 2010, and December 1, 2011.
     (2) On or before January 1, 2012, the director of the department of information services shall fully implement the systems development standards, policies, and methodologies required by this act.
     (3) For the purposes of this section, "operational information technology staff" includes all information technology employees of state agencies that provide: (a) Customer service support to personal computers; (b) infrastructure services, such as database administration, security administration, data center or server room operations, and server administration; and (c) communications services, such as network administration, radio support, and telephone systems support. "Operational information technology staff" does not include information technology employees that provide information technology planning and strategy, support for portable and specialized devices, radio support, or agency-specific application services.

NEW SECTION.  Sec. 10   A new section is added to chapter 43.41 RCW to read as follows:
     (1) The office, in consultation with the department of information services, may enter into and consummate, under terms and conditions approved by the office, an agreement or agreements in the name of the state of Washington to contract with one or more authorized preferred providers to provide certain information technology functions and services for state government that are currently provided by the department of information services or state agencies for a period of up to ten years.
     (2) The office, in consultation with the department of information services, shall review information technology functions and services being used in state government and their associated costs and determine which information technology functions and services would be the most feasible and cost-effective to contract for with the private sector.
     (3) The office may engage in a sealed bid process to select one or more authorized preferred providers under this chapter to provide those information technology functions and services identified under subsection (2) of this section to be the most feasible and cost-effective to outsource.
     (4) An authorized preferred provider:
     (a) May incur debts and liabilities on its behalf, but may not obligate the state for payment, nor may the state otherwise be liable for the debts or obligations of the authorized preferred provider;
     (b) Is subject to an annual audit by a certified public accounting firm. The state auditor may review the corporation's audited financial reports; and
     (c) Must, upon termination of the contract, relinquish any assets or real property to the state of Washington that were owned or managed by the department of information services or the state prior to the contract.
     (5) For the purposes of this section, the office is exempt from the limitations imposed by RCW 41.06.142 regarding competitive contracting or by other statute or common law principle that would otherwise limit its ability to contract for services outside the department.
     (6) This section does not apply to the legislative branch.

Sec. 11   RCW 41.06.142 and 2008 c 267 s 9 are each amended to read as follows:
     (1) Any department, agency, or institution of higher education may purchase services, including services that have been customarily and historically provided by employees in the classified service under this chapter, by contracting with individuals, nonprofit organizations, businesses, employee business units, or other entities if the following criteria are met:
     (a) The invitation for bid or request for proposal contains measurable standards for the performance of the contract;
     (b) Employees in the classified service whose positions or work would be displaced by the contract are provided an opportunity to offer alternatives to purchasing services by contract and, if these alternatives are not accepted, compete for the contract under competitive contracting procedures in subsection (4) of this section;
     (c) The contract with an entity other than an employee business unit includes a provision requiring the entity to consider employment of state employees who may be displaced by the contract;
     (d) The department, agency, or institution of higher education has established a contract monitoring process to measure contract performance, costs, service delivery quality, and other contract standards, and to cancel contracts that do not meet those standards; and
     (e) The department, agency, or institution of higher education has determined that the contract results in savings or efficiency improvements. The contracting agency must consider the consequences and potential mitigation of improper or failed performance by the contractor.
     (2) Any provision contrary to or in conflict with this section in any collective bargaining agreement in effect on July 1, 2005, is not effective beyond the expiration date of the agreement.
     (3) Contracting for services that is expressly mandated by the legislature or was authorized by law prior to July 1, 2005, including contracts and agreements between public entities, shall not be subject to the processes set forth in subsections (1), (4), and (5) of this section.
     (4) Competitive contracting shall be implemented as follows:
     (a) At least ninety days prior to the date the contracting agency requests bids from private entities for a contract for services provided by classified employees, the contracting agency shall notify the classified employees whose positions or work would be displaced by the contract. The employees shall have sixty days from the date of notification to offer alternatives to purchasing services by contract, and the agency shall consider the alternatives before requesting bids.
     (b) If the employees decide to compete for the contract, they shall notify the contracting agency of their decision. Employees must form one or more employee business units for the purpose of submitting a bid or bids to perform the services.
     (c) The director of personnel, with the advice and assistance of the department of general administration, shall develop and make available to employee business units training in the bidding process and general bid preparation.
     (d) The director of general administration, with the advice and assistance of the department of personnel, shall, by rule, establish procedures to ensure that bids are submitted and evaluated in a fair and objective manner and that there exists a competitive market for the service. Such rules shall include, but not be limited to: (i) Prohibitions against participation in the bid evaluation process by employees who prepared the business unit's bid or who perform any of the services to be contracted; (ii) provisions to ensure no bidder receives an advantage over other bidders and that bid requirements are applied equitably to all parties; and (iii) procedures that require the contracting agency to receive complaints regarding the bidding process and to consider them before awarding the contract. Appeal of an agency's actions under this subsection is an adjudicative proceeding and subject to the applicable provisions of chapter 34.05 RCW, the administrative procedure act, with the final decision to be rendered by an administrative law judge assigned under chapter 34.12 RCW.
     (e) An employee business unit's bid must include the fully allocated costs of the service, including the cost of the employees' salaries and benefits, space, equipment, materials, and other costs necessary to perform the function. An employee business unit's cost shall not include the state's indirect overhead costs unless those costs can be attributed directly to the function in question and would not exist if that function were not performed in state service.
     (f) A department, agency, or institution of higher education may contract with the department of general administration to conduct the bidding process.
     (5) As used in this section:
     (a) "Employee business unit" means a group of employees who perform services to be contracted under this section and who submit a bid for the performance of those services under subsection (4) of this section.
     (b) "Indirect overhead costs" means the pro rata share of existing agency administrative salaries and benefits, and rent, equipment costs, utilities, and materials associated with those administrative functions.
     (c) "Competitive contracting" means the process by which classified employees of a department, agency, or institution of higher education compete with businesses, individuals, nonprofit organizations, or other entities for contracts authorized by subsection (1) of this section.
     (6) The requirements of this section do not apply to RCW 74.13.031(5) or sections 7 and 10 of this act.

Sec. 12   RCW 43.105.060 and 1987 c 504 s 10 are each amended to read as follows:
     State and local government agencies are authorized to enter into any contracts with the department, an authorized preferred provider, or its successor which may be necessary or desirable to effectuate the purposes and policies of this chapter or for maximum utilization of facilities and services which are the subject of this chapter.

Sec. 13   RCW 43.105.200 and 1992 c 20 s 5 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, in the case of institutions of higher education, the provisions of this chapter ((20, Laws of 1992, apply to business and administrative applications but)) do not apply to academic and research ((applications)) projects, research initiatives, or instructional programs, but do apply to the business and administrative applications institutions of higher education.
     (2) Technology investments in research projects, research initiatives, or instructional programs at institutions of higher education estimated to cost one million dollars or more of general fund state appropriations may be reviewed by the board if the projects are deemed mission-critical by the institution or of statewide application by the director. The director, in consultation with institutions of higher education, shall develop and provide to the institutions criteria to be used in determining whether projects are mission-critical.

Sec. 14   RCW 43.105.170 and 1999 c 80 s 10 are each amended to read as follows:
     (1) Each agency shall develop an information technology portfolio consistent with RCW ((43.105.095)) 43.105.172. The superintendent of public instruction shall develop its portfolio in conjunction with educational service districts and statewide or regional providers of K-12 education information technology services.
     (2) Agency portfolios shall include, but not be limited to, the following:
     (a) A baseline assessment of the agency's information technology resources and capabilities that will serve as the benchmark for subsequent planning and performance measures;
     (b) A statement of the agency's mission, goals, and objectives for information technology, including goals and objectives for achieving electronic access to agency records, information, and services;
     (c) An explanation of how the agency's mission, goals, and objectives for information technology support and conform to the state strategic information technology plan developed under RCW 43.105.160;
     (d) An implementation strategy to provide electronic access to public records and information. This implementation strategy must be assembled to include:
     (i) Compliance with Title 40 RCW;
     (ii) Adequate public notice and opportunity for comment;
     (iii) Consideration of a variety of electronic technologies, including those that help transcend geographic locations, standard business hours, economic conditions of users, and disabilities;
     (iv) Methods to educate both state employees and the public in the effective use of access technologies;
     (e) Projects and resources required to meet the objectives of the portfolio; and
     (f) Where feasible, estimated schedules and funding required to implement identified projects.
     (3) Portfolios developed under subsection (1) of this section shall be submitted to the department for review and forwarded along with the department's recommendations to the board for review and approval. The board may reject, require modification to, or approve portfolios as deemed appropriate by the board. Portfolios submitted under this subsection shall be updated and submitted for review and approval as necessary.
     (4) Each agency shall prepare and submit to the department a biennial performance report that evaluates progress toward the objectives articulated in its information technology portfolio. The superintendent of public instruction shall develop its portfolio in conjunction with educational service districts and statewide or regional providers of K-12 education information technology services. The report shall include:
     (a) An evaluation of the agency's performance relating to information technology;
     (b) An assessment of progress made toward implementing the agency information technology portfolio;
     (c) Progress toward electronic access to public information and enabling citizens to have two-way interaction for obtaining information and services from agencies; and
     (d) An inventory of agency information services, equipment, and proprietary software.
     (5) The ((department, with the approval of the)) board((,)) shall establish standards, elements, form, and format for plans and reports developed under this section.
     (6) Agency activities to increase electronic access to public records and information, as required by this section, must be implemented within available resources and existing agency planning processes.
     (7) The board may exempt any agency from any or all of the requirements of this section.

Sec. 15   RCW 43.105.830 and 2004 c 276 s 909 are each amended to read as follows:
     (((1))) The K-20 technology account is hereby created in the state treasury. The department of information services shall deposit into the account moneys received from legislative appropriations, gifts, grants, and endowments for the buildout and installation of the K-20 telecommunication system. The account shall be subject to appropriation and may be expended solely for the K-20 telecommunication system. Disbursements from the account shall be on authorization of the director of the department of information services with approval of the board.
     (((2) During the 2003-2005 biennium, the legislature may transfer moneys from the K-20 technology account to the state general fund such amounts as reflect the excess fund balance of the account.))

Sec. 16   RCW 43.105.835 and 2004 c 276 s 910 are each amended to read as follows:
     (1) The education technology revolving fund is created in the custody of the state treasurer. All receipts from billings under subsection (2) of this section must be deposited in the revolving fund. Only the director of the department of information services or the director's designee may authorize expenditures from the fund. The revolving fund shall be used to pay for network operations, transport, equipment, software, supplies, and services, maintenance and depreciation of on-site data, and shared infrastructure, and other costs incidental to the development, operation, and administration of shared educational information technology services, telecommunications, and systems. The revolving fund shall not be used for the acquisition, maintenance, or operations of local telecommunications infrastructure or the maintenance or depreciation of on-premises video equipment specific to a particular institution or group of institutions.
     (2) The revolving fund and all disbursements from the revolving fund are subject to the allotment procedure under chapter 43.88 RCW, but an appropriation is not required for expenditures. The department of information services shall, in consultation with entities connected to the network under RCW 43.105.820 and subject to the review and approval of the office of financial management, establish and implement a billing structure for network services identified in subsection (1) of this section.
     (3) The department shall charge those public entities connected to the K-20 ((telecommunications [telecommunication system])) telecommunication system under RCW 43.105.820 an annual copayment per unit of transport connection as determined by the legislature after consideration of the K-20 board's recommendations. This copayment shall be deposited into the revolving fund to be used for the purposes in subsection (1) of this section. It is the intent of the legislature to appropriate to the revolving fund such moneys as necessary to cover the costs for transport, maintenance, and depreciation of data equipment located at the individual public institutions, maintenance and depreciation of the network backbone, and services provided to the network under RCW 43.105.815.
     (((4) During the 2003-05 biennium, the legislature may transfer moneys from the education technology revolving fund to the state general fund and the data processing revolving fund such amounts as reflect the excess fund balance of the account.))