BILL REQ. #:  H-4951.2 

Read first time 02/08/10.   Referred to Committee on Ways & Means.

     AN ACT Relating to creating efficiencies in the use of technology in state government; amending RCW 43.105.052 and 43.105.190; adding new sections to chapter 43.105 RCW; creating a new section; and repealing RCW 43.105.017.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that the provision of information technology in state government lacks strategic coordination, transparency, and meaningful enterprise-wide oversight. It is no longer economically sustainable or feasible for state agencies to obtain and provide large-scale, commonly utilized information technology products and services on an individual, agency-by-agency basis. Instead, the state needs a strong, enterprise-based information technology strategy that ensures the state is receiving the highest quality information technology products and services at the best price from public or private providers. Developing a strong enterprise-wide strategy also includes establishing clear lines of authority and accountability within state agencies so that those services unique to individual agencies receive the support required to effectively and efficiently provide services to citizens. To accomplish these objectives, the state needs to develop an open, transparent process for determining the total cost of ownership for the information technology products and services it provides to state agencies, and to provide such information in an easily accessible, public fashion. It is in the state's interest to ensure that the wide range of disparate networks, systems, services, and structures across state government be closely coordinated. When more transparent technical and financial information is available, the state can make sound policy decisions about what information technology services should be provided centrally on a shared services basis, and what products and services may be best suited for either outsourcing or for maintenance at the agency level. Furthermore, if attractive pricing models and service level agreements are developed for enterprise-based information technology services, the legislative and judicial branches will have an incentive to participate in those services as well.
     (2) It is the intent of the legislature to organize, consolidate, and, where appropriate, outsource information technology systems and resources in a strategic fashion that is based upon sound, objective, nonpolitical, and independent technical and financial criteria. The state needs to develop a clear, enterprise-based statewide strategy for information technology to ensure that there is transparency and accountability regarding how information technology resources are being allocated, how decisions are being made, and who is accountable for on-time, on-budget delivery.

Sec. 2   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) 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)) Procurement and maintenance of mainframe and personal computers, servers, and virtualization services;
     (c) ((Support for departmental and microcomputer evaluation, installation, and use)) Data storage 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) 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) 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 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) 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) 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) 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) Identify opportunities for the effective use of information services and coordinate appropriate responses to those opportunities;
     (8) 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) 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 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) 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) Perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.105 RCW to read as follows:
     (1) Except as provided in subsection (2) of this section, no state agency is permitted to purchase cellular or mobile phone service except through participation in the state master contract.
     (2) State agencies may purchase cellular or mobile phone service outside of the state master contract if the agency secures a waiver in advance of the purchase from the office of financial management or the department.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.105 RCW to read as follows:
     (1)(a) The department shall develop a personal computer replacement policy for all personal computers owned or leased by state agencies. The personal computer replacement policy must consist, at a minimum, of a replacement cycle of at least five years. In developing the replacement policy, the department shall review existing personal computer lease programs and may discontinue those programs that are not consistent with a five-year replacement cycle.
     (b) The department shall revise the state master contract for personal computers. The state master contract must offer up to three contractors with up to four models to choose from for each contractor.
     (2) The department has full authority over personal computer purchase, replacement, and inventory for the state. State agencies may not purchase or replace a personal computer without securing prior approval from the department. All purchases of personal computers for use by state agencies must be purchased through participation in the state master contract.
     (3) In reviewing requests from state agencies to purchase or replace personal computers, the department shall grant approval only if the purchase or replacement is consistent with the state's personal computer replacement policy or if the request is to replace a personal computer that is necessary and is no longer operational.

NEW SECTION.  Sec. 5   A new section is added to chapter 43.105 RCW to read as follows:
     (1) State agencies must develop data storage policies to achieve greater storage efficiency. In developing data storage policies, state agencies must review what information currently exists in digital format, where it is stored, how it is being used, and the business and legal requirements for retaining the information.
     (2) The board shall develop a data retention policy for state agencies. In developing the data retention policy, the board must consult with all affected state agencies to determine the business, legal, and storage management needs of the agencies.
     (3)(a) The department shall offer tiered data storage services to state agencies. In developing its service offerings for tiered data storage, the department must consult with state agencies to determine the storage demands and needs of state agencies.
     (b) State agencies purchasing additional data storage must purchase their storage through the department.

Sec. 6   RCW 43.105.190 and 2005 c 319 s 111 are each amended to read as follows:
     (1) The department, with the approval of the board, shall establish standards and policies governing the planning, implementation, and evaluation of major information technology projects, including those proposed by the superintendent of public instruction, in conjunction with educational service districts, or statewide or regional providers of K-12 education information technology services. The standards and policies shall:
     (a) Establish criteria to identify projects which are subject to this section. Such criteria shall include, but not be limited to, significant anticipated cost, complexity, or statewide significance of the project; and
     (b) Establish a model process and procedures which agencies shall follow in developing and implementing projects within their information technology portfolios. Agencies may propose, for approval by the department, a process and procedures unique to the agency. The department may accept or require modification of such agency proposals or the department may reject such agency proposals and require use of the model process and procedures established under this subsection. Any process and procedures developed under this subsection shall require (i) distinct and identifiable phases upon which funding may be based, (ii) user validation of products through system demonstrations and testing of prototypes and deliverables, and (iii) other elements identified by the board.
     The director may terminate a major project if the director determines that the project is not meeting or is not expected to meet anticipated performance standards.
     (2) The office of financial management shall establish policies and standards consistent with portfolio-based information technology management to govern the funding of projects developed under this section. The policies and standards shall provide for:
     (a) Funding of a project under terms and conditions mutually agreed to by the director, the director of financial management, and the head of the agency proposing the project. However, the office of financial management may require incremental funding of a project on a phase-by-phase basis whereby funds for a given phase of a project may be released only when the office of financial management determines, with the advice of the department, that the previous phase is satisfactorily completed;
     (b) Acceptance testing of products to assure that products perform satisfactorily before they are accepted and final payment is made; and
     (c) Other elements deemed necessary by the office of financial management.
     (3)(a) The department shall evaluate projects based on the demonstrated business needs and benefits; cost; technology scope and feasibility; impact on the agency's information technology portfolio and on the statewide infrastructure; and final project implementation plan based upon available funding.
     (b) Copies of project evaluations conducted under this subsection shall be submitted to the office of financial management and the chairs, ranking minority members, and staff coordinators of the appropriations committees of the senate and house of representatives.
     (c) If there are projects that receive funding from a transportation fund or account, copies of those projects' evaluations conducted under this subsection must be submitted to the chairs and ranking minority members of the transportation committees of the senate and the house of representatives.
     (4) For the 2009-2011 biennium, the following limitations are established upon information technology procurement:
     (a) State agencies are not permitted to purchase or implement new information technology projects without securing prior authorization from the office of financial management. The office of financial management may only approve information technology projects that contribute towards an enterprise strategy or meet a critical, localized need of the requesting agency.
     (b) State agencies are not permitted to purchase servers, virtualization, data storage, or related software through their operational funds or through a separate information technology budget item without securing prior authorization from the office of financial management. The office of financial management shall grant approval only if the purchase is consistent with the state's overall migration strategy to the state data center and critical to the operation of the agency.
     (c) State agencies are not permitted to upgrade existing software without securing prior approval from the office of financial management. In reviewing requests from state agencies to upgrade software, the office of financial management shall grant approval only if the agency can demonstrate that upgrade of the software is critical to the operation of the agency.

NEW SECTION.  Sec. 7   RCW 43.105.017 (Legislative intent) and 1992 c 20 s 6, 1990 c 208 s 2, & 1987 c 504 s 2 are each repealed.