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SENATE BILL NO. 38
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR KAUFMAN
Introduced: 1/10/25
Referred: Prefiled
A BILL
FOR AN ACT ENTITLED
"An Act establishing the office of information technology; relating to information 1
technology projects undertaken by state agencies; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 44.21 is amended by adding new sections to read: 4
Article 7. Office of Information Technology. 5
Sec. 44.21.600. Office of information technology and chief information 6
officer. The office of information technology is created in the Department of 7
Administration. The director of the office is the chief information officer of the state. 8
Sec. 44.21.610. Duties of office and director. (a) The office shall 9
(1) oversee all information technology services and resources in the 10
executive branch of state government; 11
(2) ensure that information technology services are acquired, and 12
information resources are managed, in a manner that effectively implements standard 13
policies, procedures, security controls, and the business priorities established by 14 34-LS0349\A
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executive branch agencies; 1
(3) promote the effective and efficient design and operation of all 2
major information resources and management processes for the state; 3
(4) oversee the development, implementation, and enforcement of 4
information technology security policies, standards, and practices in all executive 5
branch agencies, contractors of executive branch agencies, and third-party, 6
information-sharing partners of executive branch agencies; 7
(5) employ a chief information security officer to assist the chief 8
information officer; the chief information security officer is chosen by the chief 9
information officer and serves at the pleasure of the chief information officer; 10
(6) develop strategies and specific plans for hiring, training, and 11
professional development to rectify deficiencies in information technology security 12
policies, standards, and practices; 13
(7) identify and inventory all computer equipment owned by the state 14
and determine, in consultation with department heads, the equipment that should be 15
disposed of as surplus property under AS 44.68.110; 16
(8) adopt, fully document, and implement a standardized process for 17
managing information technology projects; 18
(9) manage information technology projects using a standardized, fully 19
documented process established and overseen by the director as described in 20
AS 44.21.630; 21
(10) ensure that major information technology projects are completed 22
on time and within budget and meet all defined business requirements upon 23
completion; 24
(11) ensure that minor information technology projects follow 25
processes established by the office; 26
(12) establish procedures to limit the need for change requests. 27
(b) The director shall review, approve or reject, and monitor all information 28
technology projects undertaken by a state agency. The director may approve an 29
information technology project 30
(1) that conforms to project management procedures and policies; 31 34-LS0349\A
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(2) that does not duplicate a capability already existing in the state; 1
(3) that conforms to procurement rules and policies; and 2
(4) for which sufficient funds are available. 3
(c) The director shall ensure that state agency information technology project 4
requirements are documented in biennial information technology plans. If a state 5
agency updates a biennial information technology plan to add a new project, the 6
director shall immediately report to the office of management and budget the reasons 7
for the new requirement and the costs and funding sources associated with the new 8
requirement. 9
(d) The director may adopt regulations that the director considers necessary to 10
implement AS 44.21.600 - 44.21.660. 11
Sec. 44.21.620. Approval, suspension, and cancellation of projects. (a) A 12
state agency may not begin an information technology project unless the director 13
approves the project. If the director rejects a proposed information technology project, 14
the director shall indicate the specific reasons the project was rejected in writing. The 15
director shall, within five business days after rejecting a project, deliver the written 16
rejection to the state agency and provide a copy of the rejection to the office of 17
management and budget. 18
(b) The director may suspend or cancel an information technology project that 19
does not continue to meet applicable quality assurance standards. The director shall 20
immediately suspend or cancel an information technology project that is initiated 21
without the director's approval. A project suspended or canceled because the project 22
lacks the director's approval may not proceed until the state agency completes all 23
required project management documentation and the director approves the project. If 24
the director suspends or cancels a project, the director shall, within five business days 25
after ordering the suspension or cancellation, provide in writing to the state agency 26
and the office of management and budget the specific grounds for the suspension or 27
cancellation of the project. 28
(c) A state agency may request that the governor review the director's decision 29
to reject, suspend, or cancel an information technology project, or the director's 30
decision not to enter into an agreement under AS 44.21.650, by submitting a written 31 34-LS0349\A
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request for review to the governor within 15 business days after receiving written 1
notice of the director's decision. The agency's request for review must specify the 2
grounds for the disagreement with the director's determination and include a copy of 3
the director's written notice. The governor may request additional information from 4
the agency or the director. Within 30 days after receiving the agency's request for 5
review, the governor shall provide written notice to the agency and the director of the 6
governor's decision and the specific grounds for the decision. The governor may 7
(1) affirm the director's decision; 8
(2) reverse or modify the director's decision if the governor finds that 9
the decision is not supported by substantial evidence; or 10
(3) remand the decision to the director for additional findings. 11
(d) A contract between a state agency and a private entity for an information 12
technology project must include provisions for vendor performance review and 13
accountability, contract suspension or termination, and termination of funding. The 14
director may require that a contract with a private entity include a performance bond, 15
monetary penalties, or other performance assurance measures for a project that is not 16
completed within the specified time or that exceeds the contracted price. The director 17
may use cost savings realized on government vendor partnerships as performance 18
incentives for an information technology vendor. 19
Sec. 44.21.630. Project management. (a) The director shall establish 20
standardized documentation requirements for information technology projects, 21
including requests for proposals and contracts. The director shall establish standards 22
for project managers and project management assistants. The director shall develop 23
performance measures for project reporting and make project reports available to the 24
public on the office's Internet website. 25
(b) The director shall establish a clearly defined, standardized process for 26
project management that includes timelines for completion of process requirements for 27
both the office and state agencies. The director shall also establish reporting 28
requirements for information technology projects during the planning, development, 29
and implementation phases of the project and following completion of the project. The 30
director shall continue to monitor system performance and financial aspects of each
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project after implementation. 1
(c) For a major information technology project, the director shall designate a 2
project manager from the office. The project manager shall select qualified personnel 3
from the state agency undertaking the project to participate in information technology 4
project management, implementation, testing, and other activities. The project 5
manager shall provide periodic reports to the director. The reports must include 6
information regarding the state agency's business requirements, applicable laws and 7
regulations, project costs, issues related to hardware and software, training, projected 8
and actual completion dates, and other information relevant to the implementation of 9
the information technology project. 10
(d) The director may require a state agency developing or undertaking a major 11
information technology project to engage the services of private counsel or a subject 12
matter expert with the appropriate information technology expertise. The private 13
counsel or subject matter expert may review requests for proposals, review and 14
provide advice and assistance during the evaluation of proposals and selection of 15
vendors, and review and negotiate contracts associated with the project. This 16
subsection applies to minor information technology projects that are related and 17
separated into individual projects if the total cost of ownership of the individual 18
projects exceeds $5,000,000. 19
(e) For a minor information technology project, the state agency undertaking 20
the project shall provide one or more project managers. A state agency project 21
manager is subject to review and approval by the director. A state agency project 22
manager shall ensure that applicable quality assurance standards are met, as 23
determined by the director. A state agency project manager shall provide periodic 24
reports to a project management assistant assigned to the project under (f) of this 25
section. The reports must include information regarding project costs, issues related to 26
hardware and software, training, projected and actual completion dates, and other 27
information relevant to the implementation of the information technology project. 28
(f) For a minor information technology project, the director s
hall designate a 29
project management assistant from the office. The director may designate a project 30
management assistant from the office to a major information technology project. A 31 34-LS0349\A
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project management assistant designated under this subsection shall advise the state 1
agency undertaking an information technology project on the initial planning of a 2
project, the content and design of requests for proposals, contracts, procurement, and 3
architectural and other technical reviews. The project management assistant shall also 4
monitor progress in the development and implementation of the project and provide 5
status reports to the state agency and the director, including recommendations 6
regarding continued approval of the project. 7
Sec. 44.21.640. Standards for purchases. The director shall establish 8
standards for the purchase of state agency hardware and software that are consistent 9
with AS 36.30 (State Procurement Code) and reflect identified and documented state 10
agency needs. 11
Sec. 44.21.650. Exemptions. (a) The director may enter into a written 12
agreement with a state agency that exempts the state agency from the requirements of 13
AS 44.21.600 - 44.21.660 and authorizes the state agency to approve and monitor all 14
information technology projects undertaken by the state agency. The written 15
agreement must 16
(1) require the state agency to comply with 17
(A) standardized processes adopted under AS 44.21.610(a); 18
(B) standardized processes adopted under AS 44.21.610(a) 19
with a list of variations; or 20
(C) standardized processes adopted by the state agency; 21
(2) require the state agency to comply with 22
(A) standardized processes established under AS 44.21.630; 23
(B) standardized processes established under AS 44.21.630 24
with a list of variations; or 25
(C) standardized processes adopted by the state agency that 26
include documentation requirements, project management processes, and 27
qualifications for project managers; 28
(3) include a plan for the state agency to fulfill obligations with 29
contractors; 30
(4) allow the state agency to designate an employee of the state agency 31 34-LS0349\A
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or a contractor as a project manager; and 1
(5) require the state agency to submit periodic reports to the director, 2
including updates to the state agency's biennial information technology plan as 3
provided in AS 44.21.610(c). 4
(b) The director may enter into a written agreement with a state agency that 5
exempts an information technology project undertaken by the state agency from a 6
requirement of AS 44.21.600 - 44.21.660. The written agreement must detail the 7
requirement that is waived, how the state agency will deviate from the requirement, 8
and the purpose of the deviation. 9
(c) If the director decides not to enter into a written agreement with a state 10
agency under (a) or (b) of this section, the director shall provide in writing to the state 11
agency and the office of management and budget the specific grounds for the decision. 12
The state agency may request that the governor review the director's decision as 13
provided in AS 44.21.620(c). 14
(d) The director shall include a copy of an agreement entered into with a state 15
agency under (a) or (b) of this section in the biennial information technology plan 16
required under AS 44.21.610(c) and shall deliver the agreement to the senate secretary 17
and the chief clerk of the house of representatives and notify the legislature that the 18
agreement is available. 19
Sec. 44.21.660. Definitions. In AS 44.21.600 - 44.21.660, 20
(1) "change request" means a formal proposal requesting deviations in 21
the project processes, cost, scope, or timeline; 22
(2) "director" means the director of the office of information 23
technology; 24
(3) "information technology project" means an effort of defined and 25
limited duration that implements, effects a change in, or addresses a risk to processes, 26
services, security, systems, records, data, human resources, or architecture related to 27
technology used for the processing and transmission of information; "information 28
technology project" does not include a broadband project managed by the office of 29
broadband under AS 44.33.910; 30
(4) "major information technology project" means an information 31 34-LS0349\A
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technology project undertaken by a state agency that has a total lifetime cost of 1
ownership of $5,000,000 or more or an information technology project jointly 2
undertaken by two or more state agencies; 3
(5) "minor information technology project" means an information 4
technology project undertaken by a single state agency that has a total lifetime cost of 5
ownership of less than $5,000,000; 6
(6) "office" means the office of information technology; 7
(7) "state agency" has the meaning given to "state agencies" in 8
AS 44.21.390. 9
* Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 10
read: 11
TRANSITION: REGULATIONS. The Department of Administration shall adopt 12
regulations necessary to implement this Act. The regulations take effect under AS 44.62 13
(Administrative Procedure Act), but not before the effective date of the law implemented by 14
the regulation. 15
* Sec. 3. Section 2 of this Act takes effect immediately under AS 01.10.070(c). 16
* Sec. 4. Except as provided in sec. 3 of this Act, this Act takes effect January 1, 2026. 17