FINAL BILL REPORT

2SSB 5555

PARTIAL VETO

                                  C 504 L 87

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 and Committee on Ways & Means

House Committe on State Government

Rereferred House Committee on Ways & Means/Appropriations

SYNOPSIS AS ENACTED

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 service 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 Senate Committee on Governmental Operations.  The bipartisan group included legislators from both houses, the Deputy Director of the Office of Financial Management (OFM) and the Director 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 improve the state's ability to manage telecommunications costs and integrate telecommunications with computing; enhance 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 information services.  The Legislature recognizes that information systems, telecommunications equipment, software and services must satisfy the needs of end users and that many appropriate alternatives are available to meet those needs.

Legislative intent is declared that:  (1) information be shared and administered in a coordinated manner, except when prevented by agency responsibilities for security, privacy or confidentiality; (2) the primary responsibility for managing information and information systems rests with each agency; (3) resources be used in the most efficient manner and services shared when cost-effective; (4) a structure be created to plan and manage telecommunications and computing networks; and (5) an acquisition process be established for equipment, proprietary software, and related services that meets the needs of users, and promotes fair and open competition.

Definition.  Specific definitions are included to distinguish the technical terms and functions.  "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 Services Board.  The Washington State Information Services Board, composed of nine members, replaces the Data Processing Authority.  Seven members are appointed by the Governor and serve at the Governor's pleasure, including three representatives of cabinet agencies, one from higher education, one from a noncabinet executive agency and two from the private sector.  A member of the Legislature is appointed by the President of the Senate and the Speaker of the House, and a representative of the judicial branch is appointed by the Chief Justice.  All have full voting rights.  The Director of the Department of Information Services serves as a nonvoting member of the Board.

Department of Information Services.  The Department of Information Services 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 Services.

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 are determined by 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 Services Board.  The Board is given a number of specific responsibilities:  (1) to develop standards governing acquisition and disposition of equipment, proprietary software and purchased services, and confidentiality of computerized data; (2) to acquire, dispose of and maintain equipment, software and services or to delegate that authority under appropriate standards; (3) to develop all statewide or interagency technical policies, standards and procedures; (4) to develop a process for the resolution of appeals by vendors and customer agencies; (5) to establish policies for the periodic review of agency performance; (6) to review and approve the portion of the Departments' budget request which supports the activities of the Board; and (7) to abolish the use of service center designation, 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 Services.  The Department must:  (1) review agency acquisition plans and requests and implementation of statewide and interagency policies, standards and guidelines; (2) make available information services on a full cost-recovery basis; (3) establish self-supporting rates and fees, and a biennial billing rate plan subject to OFM approval, but the services component may not subsidize the operations of the planning component; (4) with the advice of the Board, develop and publish statewide goals and objectives at least biennially; (5) develop plans for achieving goals and objectives, with the advice of the customer oversight committees and the Board; (6) develop training plans and programs, in collaboration with the Department of Personnel and the Higher Education Personnel Board; and (7) assess 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, and must review rates at least annually.

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 disbursements for 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.

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.  A sunset provision is added, with a termination date of 1994 and repealers effective in 1995.

VOTES ON FINAL PASSAGE:

      Senate    48     0

      House 97   0 (House amended)

      Senate    45     0 (Senate concurred)

EFFECTIVE:July 1, 1987

Partial Veto Summary:  The requirement for a comprehensive study by LEAP of state information system budgets and expenditures during the transition to the new program is vetoed.  (See VETO MESSAGE)