READ FIRST TIME 02/08/10.   

     AN ACT Relating to improving the efficiency, accountability, and quality within state information systems; amending RCW 43.88.560, 43.105.041, 43.105.180, and 43.105.160; adding a new section to chapter 43.88 RCW; creating new sections; and providing an expiration date.

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

NEW SECTION.  Sec. 1   LEGISLATIVE INTENT AND FINDINGS. The legislature finds the state and its citizens will benefit by maximizing the efficient investment in and application of technology. The legislature further finds that Washington state is a leader in information technology and systems, in both the private and public sectors. Significant investments have been made in information technology and systems and the costs of those investments continue to rise.
     It is the intent of the legislature to achieve reform within the state's approach to information technology and systems so that future investments are sound and limited resources are used as efficiently as possible. The legislature recognizes the state has undergone past information technology and systems studies. However, this effort will be focused on a collaborative action plan to implement recommendations. A collaborative process will achieve widespread support for the recommendations and bring forth creative and diverse approaches and recommendations.
     Improvements in information technology and systems will benefit the state by:
     (1) Improving business process efficiency through the appropriate application of technology and system integration;
     (2) Reducing information technology and systems costs by developing a collaborative approach to future development; and
     (3) Improving the quality and integrity of information used by the state and our citizens.
     Therefore, the information systems improvement committee is created. The committee shall pursue a comprehensive examination of information technology and systems investments and issues and develop a set of recommendations to enhance the quality, accountability, and efficiency of information systems in Washington state.

NEW SECTION.  Sec. 2   INFORMATION SYSTEMS IMPROVEMENT COMMITTEE. The information systems improvement committee is created.
     (1) The committee consists of the following members:
     (a) Two members from the house of representatives, one from each of the two largest caucuses, to be appointed by the speaker of the house;
     (b) Two members from the senate, one from each of the two largest caucuses, to be appointed by the president of the senate;
     (c) One representative from the office of financial management;
     (d) One representative from the governor's office;
     (e) One representative from the department of information services;
     (f) One representative from the department of transportation;
     (g) One representative designated by the higher education coordinating board;
     (h) One representative designated by the board of community and technical colleges;
     (i) One representative from the department of licensing;
     (j) One representative from the department of ecology;
     (k) One representative from the department of labor and industries;
     (l) One representative from the employment security department;
     (m) One representative from the department of natural resources;
     (n) One representative from the office of the insurance commissioner;
     (o) One representative from the software industry to be appointed by the governor;
     (p) One representative from the hardware industry to be appointed by the governor;
     (q) One representative of state employees to be appointed by the governor;
     (r) One representative designated by the association of Washington cities;
     (s) One representative designated by the Washington state association of counties;
     (t) One representative of state employees working in information technology to be selected by the exclusive bargaining representative that represents the largest number of classified state employees; and
     (u) One representative from the department of revenue.
     (2) The committee shall elect a chair from the four legislators appointed to the committee. There will be a steering committee comprised of the chair of the information systems improvement committee and the representatives from the governor's office, office of financial management, department of information systems, and the department of licensing. The steering committee shall develop the meeting agendas and appoint chairs to the technical subcommittees. The steering committee may also add additional members to the information systems improvement committee.
     (3) Members of the committee may not be compensated but must receive reimbursement for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
     (4) The department of information services shall provide administrative and clerical assistance to the committee. The department may retain consultants to assist in facilitation of the committee.

NEW SECTION.  Sec. 3   COMMITTEE RESPONSIBILITIES. (1) The committee is responsible for developing a series of recommendations for improving information technology and systems across state and local governments. The committee shall determine ways to maximize the state investment in these areas, including an analysis of state provision of services versus managed services. The committee, where possible, will leverage the work of existing groups, efforts, and studies in order to not duplicate efforts. The committee will develop an action plan using a collaborative and inclusive process, in order to build consensus and support for the recommendations.
     (2) The committee shall create a governance subcommittee, which shall make recommendations on information technology planning, funding strategies, portfolio ownership and management, and decision processes. In addition the committee may establish such other subcommittees as the committee determines is appropriate.
     (3) Within six months from the first meeting of the committee, the subcommittees shall develop an initial list of possible recommendations in their technical area.
     (4) The committee will provide a final report with recommendations to the legislature and governor by September 1, 2011. The technical subcommittee's recommendations must be approved by a majority of the information systems improvement committee. The final report must include specific actions to be taken by state agencies and plans for implementing those actions. The report must also contain benchmarking in the subject areas of the technical subcommittees. This benchmarking must indicate where the state is currently, how the recommended actions will increase the state's benchmarks, and how we compare to other states.
     (5) The committee shall develop a dispute resolution process to resolve conflicts by September 1, 2010.
     (6) The committee and technical subcommittees shall identify, where possible, pilot projects to test the recommendations developed by the subcommittees.

NEW SECTION.  Sec. 4   A new section is added to chapter 43.88 RCW to read as follows:
     (1) The office of financial management's operating budget instructions to agencies must include collecting additional information for proposed information technology projects. Agencies must submit the following information about specific projects:
     (a) Estimated project implementation costs by staffing, contracted services, hardware purchase and maintenance, software license purchase and maintenance, hardware lease or finance, maintenance and operations, training, and travel;
     (b) Estimated project maintenance costs by staffing, contracted services, hardware purchase and maintenance, software license purchase and maintenance, hardware lease or finance, maintenance and operations, training, and travel;
     (c) All project expenditures in previous biennia;
     (d) Oversight level as determined by the information services board, if available;
     (e) Estimated project duration and start date;
     (f) Estimated ongoing operating savings or other benefits resulting from the project;
     (g) An explanation of the purpose and benefits of the project; and
     (h) An explanation of reengineering and streamlining of the underlying business process, if pursuing the development or purchase of new software. An explanation of efforts to gather business and technical requirements must also be provided.
     (2) The governor's budget must include an information technology plan which will include a list of all the proposed projects, their next biennium costs by funding source, projected costs over the two biennia succeeding the next biennium by funding source, and a statement of the purpose of the project. This information must also be submitted electronically, in a format to be determined by the office of financial management and the legislative evaluation and accountability program committee.
     (3) The office of financial management shall also institute a method of accounting for information technology-related expenditures, including creating common definitions for what constitutes an information technology investment. The director of financial management shall report total state expenditures on information technology by funding source and by object of expenditure to the chairs, ranking minority members, and staff coordinators of the appropriations committees of the senate and house of representatives for each biennium. The first report is due by January 15, 2013.

Sec. 5   RCW 43.88.560 and 1992 c 20 s 7 are each amended to read as follows:
     The director of financial management shall establish policies and standards governing the funding of major information technology projects as required under RCW 43.105.190(2). The director of financial management shall also direct the collection of additional information on information technology projects and submit an information technology plan as required under section 4 of this act.

Sec. 6   RCW 43.105.041 and 2009 c 486 s 13 are each amended to read as follows:
     (1) The board shall have the following powers and duties related to information services:
     (a) To develop standards and procedures governing the acquisition and disposition of equipment, proprietary software and purchased services, licensing of the radio spectrum by or on behalf of state agencies, and confidentiality of computerized data. The board shall coordinate with the office of financial management to develop contracting standards for information technology acquisition and purchased services and will work with state agencies to ensure deployment of standardized contracts;
     (b) To purchase, lease, rent, or otherwise acquire, dispose of, and maintain equipment, proprietary software, and purchased services, 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: PROVIDED, That, agencies and institutions of state government are expressly prohibited from acquiring or disposing of equipment, proprietary software, and purchased services without such delegation of authority. The acquisition and disposition of equipment, proprietary software, and purchased services 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, except that the board, the department, and state agencies, as delegated, must post notices of technology procurement bids on the state's common vendor registration and bid notification system. This subsection (1)(b) does not apply to the legislative branch;
     (c) To develop statewide or interagency technical policies, standards, and procedures;
     (d) To review and approve standards and common specifications for new or expanded telecommunications networks proposed by agencies, public postsecondary education institutions, educational service districts, or statewide or regional providers of K-12 information technology services, and to assure the cost-effective development and incremental implementation of a statewide 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;
     (e) To provide direction concerning strategic planning goals and objectives for the state. The board shall seek input from the legislature and the judiciary;
     (f) To develop and implement a process for the resolution of appeals by:
     (i) Vendors concerning the conduct of an acquisition process by an agency or the department; or
     (ii) A customer agency concerning the provision of services by the department or by other state agency providers;
     (g) To establish policies for the periodic review by the department of agency performance which may include but are not limited to analysis of:
     (i) Planning, management, control, and use of information services;
     (ii) Training and education; and
     (iii) Project management;
     (h) 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;
     (i) To review and approve that portion of the department's budget requests that provides for support to the board; and
     (j) To develop procurement policies and procedures, such as unbundled contracting and subcontracting, that encourage and facilitate the purchase of products and services by state agencies and institutions from Washington small businesses to the maximum extent practicable and consistent with international trade agreement commitments.
     (2) Statewide technical standards to promote and facilitate electronic information sharing and access are an essential component of acceptable and reliable public access service and complement content-related standards designed to meet those goals. The board shall:
     (a) Establish technical standards to facilitate electronic access to government information and interoperability of information systems, including wireless communications systems. Local governments are strongly encouraged to follow the standards established by the board; and
     (b) Require agencies to consider electronic public access needs when planning new information systems or major upgrades of systems.
     In developing these standards, the board is encouraged to include the state library, state archives, and appropriate representatives of state and local government.
     (3)(a) The board, in consultation with the K-20 board, has the duty to govern, operate, and oversee the technical design, implementation, and operation of the K-20 network including, but not limited to, the following duties: Establishment and implementation of K-20 network technical policy, including technical standards and conditions of use; review and approval of network design; procurement of shared network services and equipment; and resolving user/provider disputes concerning technical matters. The board shall delegate general operational and technical oversight to the K-20 network technical steering committee as appropriate.
     (b) The board has the authority to adopt rules under chapter 34.05 RCW to implement the provisions regarding the technical operations and conditions of use of the K-20 network.

Sec. 7   RCW 43.105.180 and 1999 c 80 s 11 are each amended to read as follows:
     ((Upon request of the office of financial management,)) The department, in coordination with the information services board and the office of financial management, shall evaluate agency budget requests for major information technology projects identified under RCW 43.105.190, 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 department shall submit recommendations for funding all or part of such requests to the office of financial management and to the chairs, ranking minority members, and staff coordinators of the appropriations committees of the senate and house of representatives. The department shall also submit recommendations regarding consolidation of similar proposals or other efficiencies it finds in reviewing proposals.
     The department, with the advice and approval of the office of financial management and the information services board, shall establish criteria, consistent with portfolio-based information technology management, for the evaluation of agency budget requests under this section. These budget requests shall be made in the context of an agency's information technology portfolio; technology initiatives underlying budget requests are subject to board review. Criteria shall include, but not be limited to: Feasibility of the proposed projects, consistency with the state strategic information technology plan, consistency with information technology portfolios, appropriate provision for public electronic access to information, evidence of business process streamlining and gathering of business and technical requirements, and services, costs, and benefits.

Sec. 8   RCW 43.105.160 and 2005 c 319 s 110 are each amended to read as follows:
     (1) The department shall prepare a state strategic information technology plan which shall establish a statewide mission, goals, and objectives for the use of information technology, including goals for electronic access to government records, information, and services. The plan shall be developed in accordance with the standards and policies established by the board and shall be submitted to the board for review, modification as necessary, and approval. The department shall seek the advice of the board in the development of this plan.
     The plan approved under this section shall be updated as necessary and submitted to the governor and the chairs and ranking minority members of the appropriations committees of the senate and the house of representatives.
     (2) The department shall prepare a biennial state performance report on information technology based on agency performance reports required under RCW 43.105.170 and other information deemed appropriate by the department. The report shall include, but not be limited to:
     (a) An analysis, based upon agency portfolios, of the state's information technology infrastructure, including its value, condition, and capacity;
     (b) An evaluation of performance relating to information technology;
     (c) An assessment of progress made toward implementing the state strategic information technology plan, including progress toward electronic access to public information and enabling citizens to have two-way access to public records, information, and services;
     (d) An analysis of the success or failure, feasibility, progress, costs, and timeliness of implementation of major information technology projects under RCW 43.105.190((;
     (e))). At a minimum, the portion of the report regarding major technology projects must include:
     (i) Final budget broken down by staffing costs, contracted service, hardware purchase or lease, software purchase or lease, travel, and training. The original budget must also be shown for comparison;
     (ii) The original proposed project schedule and the final actual project schedule;
     (iii) Data regarding progress towards meeting the original goals and performance measures of the project, particularly as it relates to operating budget savings;
     (iv) Discussion of lessons learned on the project, performance of any contractors used, and reasons for project delays or cost increases; and
     (v) Identification of benefits, cost avoidance, and cost savings generated by major information technology projects developed under RCW 43.105.190; and
     (((f))) (e) An inventory of state information services, equipment, and proprietary software.
     Copies of the report shall be distributed biennially to the governor and the chairs and ranking minority members of the appropriations committees of the senate and the house of representatives. The major technology section of the report must examine major information technology projects completed in the previous biennium. The report must also examine projects two years after completion for progress toward meeting performance goals and operating budget savings. The first report is due December 15, 2011, and every two years thereafter.

NEW SECTION.  Sec. 9   Sections 1 through 3 of this act expire March 31, 2012.