AK
Alaska Senate Bill SB201

Alaska 2023-2024 Regular Session

Alaska Senate Bill SB201 Compare Versions

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10-CS FOR SENATE BILL NO. 201(STA)
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11+ SENATE BILL NO. 201
1112
1213 IN THE LEGISLATURE OF THE STATE OF ALASKA
1314
1415 THIRTY-THIRD LEGISLATURE - SECOND SESSION
1516
16-BY THE SENATE STATE AFFAIRS COMMITTEE
17+BY SENATOR KAUFMAN
1718
18-Offered: 4/8/24
19-Referred: Finance
19+Introduced: 1/24/24
20+Referred: State Affairs, Finance
2021
21-Sponsor(s): SENATOR KAUFMAN
22+
2223 A BILL
2324
2425 FOR AN ACT ENTITLED
2526
2627 "An Act establishing the office of information technology; relating to information 1
2728 technology projects undertaken by state agencies; and providing for an effective date." 2
2829 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
2930 * Section 1. AS 44.21 is amended by adding new sections to read: 4
3031 Article 7. Office of Information Technology. 5
3132 Sec. 44.21.600. Office of information technology and chief information 6
3233 officer. The office of information technology is created in the Department of 7
3334 Administration. The director of the office is the chief information officer of the state. 8
3435 Sec. 44.21.610. Duties of office and director. (a) The office shall 9
35-(1) oversee all information technology services and resources in the 10
36-executive branch of state government; 11
37-(2) ensure that information technology services are acquired, and 12
38-information resources are managed, in a manner that effectively implements standard 13
39-policies, procedures, security controls, and the business priorities established by 14 33-LS1014\S
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36+(1) adopt, fully document, and implement a standardized process for 10
37+managing information technology projects; 11
38+(2) manage information technology projects using a standardized, fully 12
39+documented process established and overseen by the director as described in 13
40+AS 44.21.630; 14 33-LS1014\B
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43-executive branch agencies; 1
44-(3) promote the effective and efficient design and operation of all 2
45-major information resources and management processes for the state; 3
46-(4) oversee the development, implementation, and enforcement of 4
47-information technology security policies, standards, and practices in all executive 5
48-branch agencies, contractors of executive branch agencies, and third-party, 6
49-information-sharing partners of executive branch agencies; 7
50-(5) employ a chief information security officer to assist the chief 8
51-information officer; the chief information security officer is chosen by the chief 9
52-information officer and serves at the pleasure of the chief information officer; 10
53-(6) develop strategies and specific plans for hiring, training, and 11
54-professional development to rectify deficiencies in information technology security 12
55-policies, standards, and practices; 13
56-(7) identify and inventory all computer equipment owned by the state 14
57-and determine, in consultation with department heads, the equipment that should be 15
58-disposed of as surplus property under AS 44.68.110; 16
59-(8) adopt, fully document, and implement a standardized process for 17
60-managing information technology projects; 18
61-(9) manage information technology projects using a standardized, fully 19
62-documented process established and overseen by the director as described in 20
63-AS 44.21.630; 21
64-(10) ensure that major information technology projects are completed 22
65-on time and within budget and meet all defined business requirements upon 23
66-completion; 24
67-(11) ensure that minor information technology projects follow 25
68-processes established by the office; 26
69-(12) establish procedures to limit the need for change requests. 27
70-(b) The director shall review, approve or reject, and monitor all information 28
71-technology projects undertaken by a state agency. The director may approve an 29
72-information technology project 30
73-(1) that conforms to project management procedures and policies; 31 33-LS1014\S
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44+(3) ensure that major information technology projects are completed 1
45+on time and within budget and meet all defined business requirements upon 2
46+completion; 3
47+(4) ensure that minor information technology projects follow processes 4
48+established by the office; 5
49+(5) establish procedures to limit the need for change requests. 6
50+(b) The director shall review, approve or reject, and monitor all information 7
51+technology projects undertaken by a state agency. The director may approve an 8
52+information technology project 9
53+(1) that conforms to project management procedures and policies; 10
54+(2) that does not duplicate a capability already existing in the state; 11
55+(3) that conforms to procurement rules and policies; and 12
56+(4) for which sufficient funds are available. 13
57+(c) The director shall ensure that state agency information technology project 14
58+requirements are documented in biennial information technology plans. If a state 15
59+agency updates a biennial information technology plan to add a new project, the 16
60+director shall immediately report to the office of management and budget the reasons 17
61+for the new requirement and the costs and funding sources associated with the new 18
62+requirement. 19
63+(d) The director may adopt regulations that the director considers necessary to 20
64+implement AS 44.21.600 - 44.21.650. 21
65+Sec. 44.21.620. Approval, suspension, and cancellation of projects. (a) A 22
66+state agency may not begin an information technology project unless the director 23
67+approves the project. If the director rejects a proposed information technology project, 24
68+the director shall indicate the specific reasons the project was rejected in writing. The 25
69+director shall, within five business days after rejecting a project, deliver the written 26
70+rejection to the state agency and provide a copy of the rejection to the office of 27
71+management and budget. 28
72+(b) The director may suspend or cancel an information technology project that 29
73+does not continue to meet applicable quality assurance standards. The director shall 30
74+immediately suspend or cancel an information technology project that is initiated
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77-(2) that does not duplicate a capability already existing in the state; 1
78-(3) that conforms to procurement rules and policies; and 2
79-(4) for which sufficient funds are available. 3
80-(c) The director shall ensure that state agency information technology project 4
81-requirements are documented in biennial information technology plans. If a state 5
82-agency updates a biennial information technology plan to add a new project, the 6
83-director shall immediately report to the office of management and budget the reasons 7
84-for the new requirement and the costs and funding sources associated with the new 8
85-requirement. 9
86-(d) The director may adopt regulations that the director considers necessary to 10
87-implement AS 44.21.600 - 44.21.660. 11
88-Sec. 44.21.620. Approval, suspension, and cancellation of projects. (a) A 12
89-state agency may not begin an information technology project unless the director 13
90-approves the project. If the director rejects a proposed information technology project, 14
91-the director shall indicate the specific reasons the project was rejected in writing. The 15
92-director shall, within five business days after rejecting a project, deliver the written 16
93-rejection to the state agency and provide a copy of the rejection to the office of 17
94-management and budget. 18
95-(b) The director may suspend or cancel an information technology project that 19
96-does not continue to meet applicable quality assurance standards. The director shall 20
97-immediately suspend or cancel an information technology project that is initiated 21
98-without the director's approval. A project suspended or canceled because the project 22
99-lacks the director's approval may not proceed until the state agency completes all 23
100-required project management documentation and the director approves the project. If 24
101-the director suspends or cancels a project, the director shall, within five business days 25
102-after ordering the suspension or cancellation, provide in writing to the state agency 26
103-and the office of management and budget the specific grounds for the suspension or 27
104-cancellation of the project. 28
105-(c) A state agency may request that the governor review the director's decision 29
106-to reject, suspend, or cancel an information technology project, or the director's 30
107-decision not to enter into an agreement under AS 44.21.650, by submitting a written 31 33-LS1014\S
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79+without the director's approval. A project suspended or canceled because the project 1
80+lacks the director's approval may not proceed until the state agency completes all 2
81+required project management documentation and the director approves the project. If 3
82+the director suspends or cancels a project, the director shall, within five business days 4
83+after ordering the suspension or cancellation, provide in writing to the state agency 5
84+and the office of management and budget the specific grounds for the suspension or 6
85+cancellation of the project. 7
86+(c) A state agency may request that the governor review the director's decision 8
87+to reject, suspend, or cancel an information technology project by submitting a written 9
88+request for review to the governor within 15 business days after receiving written 10
89+notice of the director's decision. The agency's request for review must specify the 11
90+grounds for the disagreement with the director's determination and include a copy of 12
91+the director's written notice. The governor may request additional information from 13
92+the agency or the director. Within 30 days after receiving the agency's request for 14
93+review, the governor shall provide written notice to the agency and the director of the 15
94+governor's decision and the specific grounds for the decision. The governor may 16
95+(1) affirm the director's decision; 17
96+(2) reverse or modify the director's decision if the governor finds that 18
97+the decision is not supported by substantial evidence; or 19
98+(3) remand the decision to the director for additional findings. 20
99+(d) A contract between a state agency and a private entity for an information 21
100+technology project must include provisions for vendor performance review and 22
101+accountability, contract suspension or termination, and termination of funding. The 23
102+director may require that a contract with a private entity include a performance bond, 24
103+monetary penalties, or other performance assurance measures for a project that is not 25
104+completed within the specified time or that exceeds the contracted price. The director 26
105+may use cost savings realized on government vendor partnerships as performance 27
106+incentives for an information technology vendor. 28
107+Sec. 44.21.630. Project management. (a) The director shall establish 29
108+standardized documentation requirements for information technology projects, 30
109+including requests for proposals and contracts. The director sh
110+all establish standards 31 33-LS1014\B
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111-request for review to the governor within 15 business days after receiving written 1
112-notice of the director's decision. The agency's request for review must specify the 2
113-grounds for the disagreement with the director's determination and include a copy of 3
114-the director's written notice. The governor may request additional information from 4
115-the agency or the director. Within 30 days after receiving the agency's request for 5
116-review, the governor shall provide written notice to the agency and the director of the 6
117-governor's decision and the specific grounds for the decision. The governor may 7
118-(1) affirm the director's decision; 8
119-(2) reverse or modify the director's decision if the governor finds that 9
120-the decision is not supported by substantial evidence; or 10
121-(3) remand the decision to the director for additional findings. 11
122-(d) A contract between a state agency and a private entity for an information 12
123-technology project must include provisions for vendor performance review and 13
124-accountability, contract suspension or termination, and termination of funding. The 14
125-director may require that a contract with a private entity include a performance bond, 15
126-monetary penalties, or other performance assurance measures for a project that is not 16
127-completed within the specified time or that exceeds the contracted price. The director 17
128-may use cost savings realized on government vendor partnerships as performance 18
129-incentives for an information technology vendor. 19
130-Sec. 44.21.630. Project management. (a) The director shall establish 20
131-standardized documentation requirements for information technology projects, 21
132-including requests for proposals and contracts. The director shall establish standards 22
133-for project managers and project management assistants. The director shall develop 23
134-performance measures for project reporting and make project reports available to the 24
135-public on the office's Internet website. 25
136-(b) The director shall establish a clearly defined, standardized process for 26
137-project management that includes timelines for completion of process requirements for 27
138-both the office and state agencies. The director shall also establish reporting 28
139-requirements for information technology projects during the planning, development, 29
140-and implementation phases of the project and following completion of the project. The 30
141-director shall continue to monitor system performance and financial aspects of each
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114+for project managers and project management assistants. The director shall develop 1
115+performance measures for project reporting and make project reports available to the 2
116+public on the office's Internet website. 3
117+(b) The director shall establish a clearly defined, standardized process for 4
118+project management that includes timelines for completion of process requirements for 5
119+both the office and state agencies. The director shall also establish reporting 6
120+requirements for information technology projects during the planning, development, 7
121+and implementation phases of the project and following completion of the project. The 8
122+director shall continue to monitor system performance and financial aspects of each 9
123+project after implementation. 10
124+(c) For a major information technology project, the director shall designate a 11
125+project manager from the office. The project manager shall select qualified personnel 12
126+from the state agency undertaking the project to participate in information technology 13
127+project management, implementation, testing, and other activities. The project 14
128+manager shall provide periodic reports to the director. The reports must include 15
129+information regarding the state agency's business requirements, applicable laws and 16
130+regulations, project costs, issues related to hardware and software, training, projected 17
131+and actual completion dates, and other information relevant to the implementation of 18
132+the information technology project. 19
133+(d) The director may require a state agency developing or undertaking a major 20
134+information technology project to engage the services of private counsel or a subject 21
135+matter expert with the appropriate information technology expertise. The private 22
136+counsel or subject matter expert may review requests for proposals, review and 23
137+provide advice and assistance during the evaluation of proposals and selection of 24
138+vendors, and review and negotiate contracts associated with the project. This 25
139+subsection applies to minor information technology projects that are related and 26
140+separated into individual projects if the total cost of ownership of the individual 27
141+projects exceeds $5,000,000. 28
142+(e) For a minor information technology project, the state agency undertaking 29
143+the project shall provide one or more project managers. A state
144+ agency project 30
145+manager is subject to review and approval by the director. A state agency project 31 33-LS1014\B
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146-project after implementation. 1
147-(c) For a major information technology project, the director shall designate a 2
148-project manager from the office. The project manager shall select qualified personnel 3
149-from the state agency undertaking the project to participate in information technology 4
150-project management, implementation, testing, and other activities. The project 5
151-manager shall provide periodic reports to the director. The reports must include 6
152-information regarding the state agency's business requirements, applicable laws and 7
153-regulations, project costs, issues related to hardware and software, training, projected 8
154-and actual completion dates, and other information relevant to the implementation of 9
155-the information technology project. 10
156-(d) The director may require a state agency developing or undertaking a major 11
157-information technology project to engage the services of private counsel or a subject 12
158-matter expert with the appropriate information technology expertise. The private 13
159-counsel or subject matter expert may review requests for proposals, review and 14
160-provide advice and assistance during the evaluation of proposals and selection of 15
161-vendors, and review and negotiate contracts associated with the project. This 16
162-subsection applies to minor information technology projects that are related and 17
163-separated into individual projects if the total cost of ownership of the individual 18
164-projects exceeds $5,000,000. 19
165-(e) For a minor information technology project, the state agency undertaking 20
166-the project shall provide one or more project managers. A state agency project 21
167-manager is subject to review and approval by the director. A state agency project 22
168-manager shall ensure that applicable quality assurance standards are met, as 23
169-determined by the director. A state agency project manager shall provide periodic 24
170-reports to a project management assistant assigned to the project under (f) of this 25
171-section. The reports must include information regarding project costs, issues related to 26
172-hardware and software, training, projected and actual completion dates, and other 27
173-information relevant to the implementation of the information technology project. 28
174-(f) For a minor information technology project, the director s
175-hall designate a 29
176-project management assistant from the office. The director may designate a project 30
177-management assistant from the office to a major information technology project. A 31 33-LS1014\S
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149+manager shall ensure that applicable quality assurance standards are met, as 1
150+determined by the director. A state agency project manager shall provide periodic 2
151+reports to a project management assistant assigned to the project under (f) of this 3
152+section. The reports must include information regarding project costs, issues related to 4
153+hardware and software, training, projected and actual completion dates, and other 5
154+information relevant to the implementation of the information technology project. 6
155+(f) For a minor information technology project, the director shall designate a 7
156+project management assistant from the office. The director may designate a project 8
157+management assistant from the office to a major information technology project. A 9
158+project management assistant designated under this subsection shall advise the state 10
159+agency undertaking an information technology project on the initial planning of a 11
160+project, the content and design of requests for proposals, contracts, procurement, and 12
161+architectural and other technical reviews. The project management assistant shall also 13
162+monitor progress in the development and implementation of the project and provide 14
163+status reports to the state agency and the director, including recommendations 15
164+regarding continued approval of the project. 16
165+Sec. 44.21.640. Standards for purchases. The director shall establish 17
166+standards for the purchase of state agency hardware and software that are consistent 18
167+with AS 36.30 (State Procurement Code) and reflect identified and documented state 19
168+agency needs. 20
169+Sec. 44.21.650. Definitions. In AS 44.21.600 - 44.21.650, 21
170+(1) "change request" means a formal proposal requesting deviations in 22
171+the project processes, cost, scope, or timeline; 23
172+(2) "director" means the director of the office of information 24
173+technology; 25
174+(3) "information technology project" means an effort of defined and 26
175+limited duration that implements, effects a change in, or addresses a risk to processes, 27
176+services, security, systems, records, data, human resources, or architecture related to 28
177+technology used for the processing and transmission of information; "information 29
178+technology project" does not include a broadband project manage
179+d by the office of 30
180+broadband under AS 44.33.910; 31 33-LS1014\B
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181-project management assistant designated under this subsection shall advise the state 1
182-agency undertaking an information technology project on the initial planning of a 2
183-project, the content and design of requests for proposals, contracts, procurement, and 3
184-architectural and other technical reviews. The project management assistant shall also 4
185-monitor progress in the development and implementation of the project and provide 5
186-status reports to the state agency and the director, including recommendations 6
187-regarding continued approval of the project. 7
188-Sec. 44.21.640. Standards for purchases. The director shall establish 8
189-standards for the purchase of state agency hardware and software that are consistent 9
190-with AS 36.30 (State Procurement Code) and reflect identified and documented state 10
191-agency needs. 11
192-Sec. 44.21.650. Exemptions. (a) The director may enter into a written 12
193-agreement with a state agency that exempts the state agency from the requirements of 13
194-AS 44.21.600 - 44.21.660 and authorizes the state agency to approve and monitor all 14
195-information technology projects undertaken by the state agency. The written 15
196-agreement must 16
197-(1) require the state agency to comply with 17
198-(A) standardized processes adopted under AS 44.21.610(a); 18
199-(B) standardized processes adopted under AS 44.21.610(a) 19
200-with a list of variations; or 20
201-(C) standardized processes adopted by the state agency; 21
202-(2) require the state agency to comply with 22
203-(A) standardized processes established under AS 44.21.630; 23
204-(B) standardized processes established under AS 44.21.630 24
205-with a list of variations; or 25
206-(C) standardized processes adopted by the state agency that 26
207-include documentation requirements, project management processes, and 27
208-qualifications for project managers; 28
209-(3) include a plan for the state agency to fulfill obligations with 29
210-contractors; 30
211-(4) allow the state agency to designate an employee of the state agency 31 33-LS1014\S
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215-or a contractor as a project manager; and 1
216-(5) require the state agency to submit periodic reports to the director, 2
217-including updates to the state agency's biennial information technology plan as 3
218-provided in AS 44.21.610(c). 4
219-(b) The director may enter into a written agreement with a state agency that 5
220-exempts an information technology project undertaken by the state agency from a 6
221-requirement of AS 44.21.600 - 44.21.660. The written agreement must detail the 7
222-requirement that is waived, how the state agency will deviate from the requirement, 8
223-and the purpose of the deviation. 9
224-(c) If the director decides not to enter into a written agreement with a state 10
225-agency under (a) or (b) of this section, the director shall provide in writing to the state 11
226-agency and the office of management and budget the specific grounds for the decision. 12
227-The state agency may request that the governor review the director's decision as 13
228-provided in AS 44.21.620(c). 14
229-(d) The director shall include a copy of an agreement entered into with a state 15
230-agency under (a) or (b) of this section in the biennial information technology plan 16
231-required under AS 44.21.610(c) and shall deliver the agreement to the senate secretary 17
232-and the chief clerk of the house of representatives and notify the legislature that the 18
233-agreement is available. 19
234-Sec. 44.21.660. Definitions. In AS 44.21.600 - 44.21.660, 20
235-(1) "change request" means a formal proposal requesting deviations in 21
236-the project processes, cost, scope, or timeline; 22
237-(2) "director" means the director of the office of information 23
238-technology; 24
239-(3) "information technology project" means an effort of defined and 25
240-limited duration that implements, effects a change in, or addresses a risk to processes, 26
241-services, security, systems, records, data, human resources, or architecture related to 27
242-technology used for the processing and transmission of information; "information 28
243-technology project" does not include a broadband project managed by the office of 29
244-broadband under AS 44.33.910; 30
245-(4) "major information technology project" means an information 31 33-LS1014\S
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249-technology project undertaken by a state agency that has a total lifetime cost of 1
250-ownership of $5,000,000 or more or an information technology project jointly 2
251-undertaken by two or more state agencies; 3
252-(5) "minor information technology project" means an information 4
253-technology project undertaken by a single state agency that has a total lifetime cost of 5
254-ownership of less than $5,000,000; 6
255-(6) "office" means the office of information technology; 7
256-(7) "state agency" has the meaning given to "state agencies" in 8
257-AS 44.21.390. 9
184+(4) "major information technology project" means an information 1
185+technology project undertaken by a state agency that has a total lifetime cost of 2
186+ownership of $5,000,000 or more or an information technology project jointly 3
187+undertaken by two or more state agencies; 4
188+(5) "minor information technology project" means an information 5
189+technology project undertaken by a single state agency that has a total lifetime cost of 6
190+ownership of less than $5,000,000; 7
191+(6) "office" means the office of information technology; 8
192+(7) "state agency" has the meaning given in AS 44.99.240. 9
258193 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 10
259194 read: 11
260195 TRANSITION: REGULATIONS. The Department of Administration shall adopt 12
261196 regulations necessary to implement this Act. The regulations take effect under AS 44.62 13
262197 (Administrative Procedure Act), but not before the effective date of the law implemented by 14
263198 the regulation. 15
264199 * Sec. 3. Section 2 of this Act takes effect immediately under AS 01.10.070(c). 16
265200 * Sec. 4. Except as provided in sec. 3 of this Act, this Act takes effect January 1, 2025. 17