SENATE BILL REPORT

2SSB 5555

BYSenate Committee on Ways & Means (originally sponsored by Senators Halsan and Zimmerman; by request of Office of Financial Management)

Establishing the department of information technology.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 18, 1987

Majority Report:  That Substitute Senate Bill No. 5555 be substituted therefor, and the substitute bill do pass and be referred to the Committee on Ways & Means.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, McCaslin, Talmadge, Zimmerman.

Senate Staff:Barbara Howard (786-7410); Eugene Green (786-7405)

                  February 19, 1987

Senate Committee on Ways & Means

Senate Hearing Date(s):March 9, 1987

Majority Report:  That Second Substitute Senate Bill No. 5555 be substituted therefor, and the second substitute bill do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Bluechel, Cantu, McDonald, Owen, Rinehart, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Cayan Topacio (786-7433)

                  April 17, 1987

AS PASSED SENATE, MARCH 18, 1987

BACKGROUND:

Major responsibility for state data processing and telecommunications systems is assigned to a variety of agencies: the Data Processing Authority (DPA); the Department of General Administration, which hosts the Washington Data Processing Service Center (Service Center 1) serving 120 agencies, and the Telecommunications Division for voice communication; and the Department of Licensing (DOL), which hosts Service Center 3 for data processing to the DOL, to the Department of Social and Health Services and 30 other agencies. In addition, Service Center 2, which is located at Washington State University, provides services for itself and for the Western Library Network, while Service Center 5 supports information systems at the Department of Transportation. Separate systems exist for the legislative branch (Legislative Service Center) and for the judicial branch (Judicial Information System).

During the 1986 interim, a Study Group was convened under the auspices of the Committee on Governmental Operations.  The bipartisan group included legislators from both houses, the Deputy Director of the Office of Financial Management (OFM) and of the Data Processing Authority, three private-sector members of the DPA board, and a representative designated by the vendor community.

Among many issues examined were: the need to enhance the state's ability to manage telecommunications costs and integrate telecommunications with computing; improve the approach to information sharing; strengthen the acquisition process for equipment, software and services; rationalize the management structure; improve quality control and delivery of service to client agencies, and improve both legislative and executive oversight of state information systems.

SUMMARY:

Purpose and legislative intent.  The declared purpose is to provide coordinated planning and management of state level information technology, including information systems, telecommunications, and information technology equipment, software and services.  The Legislature recognizes that state information technology must satisfy the needs of end users and that many appropriate alternatives are available to meet those needs.  The importance of fair and open competition is also acknowledged.

Legislative intent is declared to include the following: (1) information is a state resource to be shared and administered in a coordinated manner, except where agency responsibilities for security, privacy or confidentiality must prevail; (2) the primary responsibility for managing information and information systems rests with each agency; (3) state-wide information technology policy must provide management and technical direction; (4) a management structure must be created for planning and management of cost-effective state telecommunications and computing networks; and (5) an appropriate acquisition process must be established for information technology equipment, proprietary software, and related services.

Definitions.  Specific definitions are included to distinguish the technical terms and functions relating to information technology.  Examples include "information system," "information technology," "office automation," "software" and "proprietary software," and "computer network." "Telecommunications" is defined as the transmission of information by wire, radio, optical cable, electromagnetic or other means.  "Backbone network" is defined as the shared high density portions of the state's telecommunications transmission facilities, including high speed communications carrier lines, multiplexors and other necessary equipment and software components.

Management structure.  The state's data processing and telecommunications functions are incorporated into a single management structure with four major components, as follows:

Information Technology Board.  The Washington State Information Technology Board, composed of nine members, replaces the Data Processing Authority.  Appointed by the Governor and serving at the Governor's pleasure, the Board members include three representatives of cabinet agencies, one from higher education, one from a noncabinet executive agency, one from the legislative branch, one from the judicial branch, and two from the private sector, all with full voting rights.  The Director of the Department for Information Technology serves as a non-voting member of the Board.

Department of Information Technology.  The Department of Information Technology is created.  The Director of the Department is appointed by the Governor, serves at the Governor's pleasure, and is subject to confirmation by the Senate.  The Director's salary is set by the Governor.

The Director appoints a confidential secretary and up to four deputy or assistant directors exempt from civil service. Two major divisions within the Department are the planning component (which may include up to 12 exempt positions) and a separate services component.

All documents, property, employees and appropriations of the Data Processing Authority, the Department of General Administration's Data Processing Service Center (Service Center 1) and its Telecommunications Division, and the Department of Licensing's Data Processing Service Center (Service Center 3) are transferred to the Department of Information Technology.

Customer Oversight and other advisory committees.  The Director must appoint advisory committees to assist the Department.  Included among these committees are Customer Oversight Committees to advise the Department concerning the type, quality and cost of the Department's services.  The number and membership of the committees is determined by the Director.

Strategic Planning Committee.  An Information Technology Strategic Planning Committee, composed of seven members, is established.  The Director of the Office of Financial Management appoints two members representing the executive; the Legislature appoints four members to represent the majority and minority of each house, and the Chief Justice of the Supreme Court appoints one member.  The Committee appoints its own chair, and members serve at the pleasure of their respective appointing authorities. The Committee must meet at least annually, but other meetings may be convened by a majority of its members, the chair, or the Director.

Assignment of powers and duties.  The powers and duties of each of the major components of the organization are assigned as follows:

Information Technology Board.  The Board is given a number of specific responsibilities: (1) to develop and publish standards for coordinated acquisition, disposition and maintenance of information technology equipment, proprietary software and purchased services, and standards and regulations for confidentiality as required for information processing and telecommunications; (2) to acquire, dispose of and maintain information technology equipment, software and services or to delegate that authority under appropriate standards ; (3) to develop and maintain all state-wide or interagency technical policies, standards and procedures; (4) to develop a process for the resolution of disputes among vendors and customer agencies; (5) to establish policies for the periodic review of agency performance ; (6) to review and approve the portion of the Department's budget request which supports the activities of the Board; and (7) to abolish the use of service center designations, but allow Washington State University and the Department of Transportation to continue providing information technology services to other agencies and local governments.

Department of Information Technology.  The Department must: (1) review agency information technology acquisition plans and requests and implementation of state-wide and interagency policies, standards and guidelines; (2) establish and provide information technology services on a full cost-recovery basis; (3) establish self-supporting rates and fees for services, but the services component may not subsidize the operations of the planning component; (4) with the advice of the Strategic Planning Committee, develop and publish state-wide goals and objectives at least biennially and report them to the Legislature as requested; (5)  develop and maintain education and training plans and report to the Legislature on recruitment and retention of qualified personnel, in collaboration with the Department of Personnel and the Higher Education Personnel Board; and (6) conduct and report on reviews and assessments of agencies' performance as requested by the Board, the Director of Financial Management, the Legislature, or agencies themselves (in the latter case, agencies may be required to reimburse the Department for such reviews).

Customer Oversight Committees.  The responsibilities of the customer oversight committees are to advise the Department concerning the type, quality and cost of the Department's services.  The committees may also call upon the Board to resolve disputes between agencies and the Department.

Strategic Planning Committee.  The Committee is to provide direction concerning strategic planning goals and objectives for the state with respect to state-wide information technology.

Miscellaneous provisions.  Several changes are made in existing law to conform with the new structure and functions. The requirements for the Data Processing Revolving Fund are retained and expanded to support the activities of the data processing and telecommunications systems.  The revolving fund is subject to the allotment procedures of the Budgeting and Accounting Act.  Disbursements for the services component of the Department are not subject to appropriation, but expenditures of the planning component must be appropriated.  The Department must establish and implement a billing structure to assure that all agencies pay an equitable share of the costs.

All moneys in the Central Stores Revolving Fund relating to telecommunications are transferred to the Data Processing Revolving Fund.

The Data Processing Authority is abolished and its policies, rules and regulations are transferred to the Board.

Fiscal Note:      available

Effective Date:The bill declares an emergency and takes effect July 1, 1987.

Appointments by Legislature Required:     Four members representing both parties in each house to the Information Technology Strategic Planning Committee.

Senate Committee - Testified: GOVERNMENTAL OPERATIONS:  Orin Smith, Director, OFM; Bob Benson, Deputy Director, OFM; Dennis Jones, Assistant Director, OFM; Rick Stablein, Director, DPA; Dennis Carlson and Dave Billings, members, DPA; Dick Judy, Boeing Computer Services; Bob Edwards, Chair, State Information Processing Managers Association.

Senate Committee - Testified: WAYS & MEANS:  No one

HOUSE AMENDMENTS:

The agency is renamed the Department of Information Services and the policy board is renamed the Information Services Board.  The Strategic Planning Committee is abolished, and its functions transferred to the Board and the Department.  The Department must develop a services billing rate plan on a biennial basis, subject to approval by OFM.  The customer oversight committees must review rates at least annually.

All disbursements from the Data Processing Revolving Fund are made subject to the allotment process under the Budgeting and Accounting Act.  LEAP is charged with making a comprehensive study of budgets and expenditures for state information systems, and submitting reports to the legislative fiscal committees, with any recommendations for statutory changes, in 1988 and 1989.  The legislative member on the Board is appointed by the President of the Senate and the Speaker of the House of Representatives, and the judicial member is appointed by the Chief Justice.  A sunset provision is added, with a termination date of 1994.