1 of 3 HOUSE DOCKET, NO. 4781 FILED ON: 1/9/2024 HOUSE . . . . . . . . . . . . . . . No. 4242 OFFICE OF THE GOVERNOR COMMONWEALTH OF MASSACHUSETTS STATE HOUSE · BOSTON, MA 02133 (617) 725-4000 MAURA T. HEALEY GOVERNOR KIMBERLEY DRISCOLL LIEUTENANT GOVERNOR January 9, 2024 To the Honorable Senate and House of Representatives, I am pleased to submit for your consideration an Act to Provide for the Future Information Technology needs of Massachusetts, also referred to as “The FutureTech Act of 2024” to fund critical information technology capital needs. The Commonwealth’s current Information Technology bond authorization is expected to be exhausted in Fiscal Year 2025, just as we approach the crossroads of multiple large, transformative projects that will harden our cybersecurity posture, support IT capital efficiencies at the secretariat and agency levels, greatly enhance the digital user experience to bring state government information and services to our residents, and contemplate the future of AI- augmented service provision. In light of this expected need for new authorization, the Executive Office of Technology Services and Security (EOTSS) Office of Capital Planning, in coordination with the Executive Office for Administration and Finance (A&F), undertook an assessment of the executive branch IT capital project needs over the next five years. This bill is the result of this thorough, collaborative process. . The legislation I propose today will provide $1.23 billion in capital bond authorization to support current and future technology needs over the next five years, in addition to $400 million in authorization to spend anticipated future federal funding for major Health and Human Services business application projects. Details on some of the bill’s key initiatives are listed below. Investing in Government Efficiency • $120 million to support the Business Enterprise Systems Transformation (BEST) within the Office of the Comptroller to implement business process improvements, streamline 2 of 3 state administrative workflow, and offer agencies the technology, training, and tools to access required data and meet daily business needs on a real-time basis. • $110 million to support the Commonwealth Digital Roadmap, which seeks to standardize the user experience across state agencies with a single identity that proactively points users to relevant information and services. To date, the Identity Access Management (IAM) single sign-on has amassed over 1 million users around the state. Building out this platform to add more applications and launching new lines of constituent communication through live chat, SMS and chatbot services will promote increased adoption and interoperability of the platform: as it scales it becomes more useful to users. • $30 million to modernize medical health records hosted by the Executive Office of Health and Human Services to facilitate more efficient, secure health record management. • $15 million to support the Integrated Digital Data Services (IDDS) project within the Executive Office of Education (EOE). This project moves EOE data that it currently holds in many different places onto cloud services, and creates a secure, standardized platform that provides more timely and useful educational information to educators, administrators, and the public. Investing in Service Access and Equity • $52 million to support the continued rollout of the Employment Modernization Transformation (EMT), a project which, when complete, will provide both employers and those seeking unemployment insurance with a new portal to conduct state-facing employment activities, and facilitate a streamlined claims process for uploading information with a mobile- friendly design and increased accessibility features, making it easier to apply for unemployment assistance. • $13 million to support the Enhanced Student Financial Aid Access project, which will simplify the financial aid discovery and application process, enhance accessibility, and facilitate higher college-going rates for Massachusetts residents, ensuring the Commonwealth fulfills the vision for having one of the most equitable and effective higher education systems in the nation. • $12 million to support the Child Care Financial Assistance (CCFA) Modernization project, which will update the business processes within CCFA to align with an updated user experience and replace or update the core technology systems managing the waitlist, application and eligibility determination, and payments. Updating the overall user experience will reduce barriers to families seeking assistance from the Commonwealth, ease administrative burdens on child care providers, and create greater operational efficiencies for the Department of Early Education and Care • $10 million to support the Integrated Eligibility and Enrollment program within the Executive Office of Health and Human Services (HHS). This program eliminates duplicative 3 of 3 documentation while streamlining the application and onboarding processes for benefits administered by HHS while making residents aware of overlapping eligibility for services. Supporting Municipalities • $30 million to support the Municipal Fiber Grant Program, a competitive grant program that supports the closing of critical gaps that exist in municipal networks. Focused on connecting municipality-owned facilities, the program assists municipalities in achieving many critical goals associated with municipal fiber networks. • $25 million for the Community Compact IT Grant Program, a competitive grant program aimed at driving innovation at the local level available to any municipality that is part of Community Compact Cabinet Initiative. The program supports the implementation of technology projects that harness the power of IT to drive innovation, make government more efficient, save taxpayer money, and make it easier for residents to interact and transact with their local government. Pioneering in Emerging Tech and Artificial Intelligence • $25 million to support future AI projects that align with the Healey-Driscoll Administration’s priorities. Investing in Public Safety • $5 million to fund the DOC Radio Modernization initiative which will upgrade the utility and security of communications technologies within the Department of Correction. • $3 million to fund the Criminal Justice360 cross-tracking system and dashboard, empowering members of the public to view aggregated records from the Massachusetts Department of Correction (DOC) and the Commonwealth’s fourteen County Sheriff’s Offices. The FutureTech Act will strengthen the Commonwealth by ensuring that our executive agencies and secretariats have the IT assets they need to deliver exceptional constituent services and conduct business on behalf of the state in the most efficient, secure and transparent manner. I urge you to enact this legislation as soon as possible to avoid the interruption of important projects that can be completed for the benefit of the residents of the Commonwealth. Respectfully submitted, Maura T. Healey, Governor 1 of 7 HOUSE . . . . . . . . . . . . . . . No. 4242 The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Third General Court (2023-2024) _______________ An Act to provide for the future information technology needs of Massachusetts. Whereas, The deferred operation of this act would tend to defeat its purpose, which is to provide forthwith for the information technology and security needs of the commonwealth and deploy broadband access to the citizens of the commonwealth, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. To provide for a program of capital investments for information technology 2and data- and cyber-security improvements to various state programs, services, agencies, 3institutions and properties and to fund technology infrastructure, the sums set forth in sections 42A, 2B and 2C of this act, for the several purposes and subject to the conditions specified in this 5act, are hereby made available through December 31, 2030, subject to the laws regulating the 6disbursement of public funds, which sums shall be in addition to any other amounts previously 7appropriated for these purposes; provided, that the amounts specified for a particular project may 8be adjusted in order to facilitate projects authorized in this act. 9 SECTION 2A. 10 EXECUTIVE OFFICE FOR TECHNOLOGY SERVICES AND SECURITY 2 of 7 11 Office of the Secretary 12 1790-3014 For costs associated with initiatives, projects, and expenditures to make 13improvements to the quality, consistency, efficiency, and delivery of any service or program for 14the benefit of the public and the interactions between residents and state agencies and 15instrumentalities of the commonwealth, including but not limited to, planning and studies, the 16preparation of plans and specifications, purchase, procurement, acquisition, licensing and 17implementation of information technology, telecommunications and data-security-related 18equipment, hardware, software, systems, intellectual property and related projects for various 19state agencies of the commonwealth; provided, that for projects the secretary of administration 20and finance certifies to the comptroller directly or indirectly generate state revenue or budgetary 21savings, the comptroller shall transfer such revenue or budgetary savings to the state treasurer for 22payment of debt service related to those projects; provided further, that any federal 23reimbursement received by a state agency in connection with projects funded from this item may 24be retained by the state agency or the executive office of technology services and security and 25expended for the purposes of the project, without further appropriation, in addition to the 26amounts appropriated in this item…………………………………………………..$750,000,000 27 1790-3015 For costs associated with initiatives, projects, and expenditures to make 28improvements to the quality, consistency, efficiency, and delivery of any service or program to 29support, improve, extend, secure, or maintain technology or telecommunications infrastructure, 30including but not limited to, planning and studies, the preparation of plans and specifications, 31purchase, procurement, acquisition, licensing and implementation of information technology, 32telecommunications and data-security-related equipment, hardware, software, systems, 33intellectual property and related projects for various state agencies of the commonwealth; 3 of 7 34provided, that for projects the secretary of administration and finance certifies to the comptroller 35directly or indirectly generate state revenue or budgetary savings, the comptroller shall transfer 36such revenue or budgetary savings to the state treasurer for payment of debt service related to 37those projects; provided further, that any federal reimbursement received by a state agency in 38connection with projects funded from this item may be retained by the state agency or the 39executive office of technology services and security and expended for the purposes of the 40project, without further appropriation, in addition to the amounts appropriated in this 41item…………………………………………………………………………………$200,000,000. 42 1790-3016 For costs associated with planning and studies, the preparation of plans and 43specifications, purchase, procurement, acquisition, licensing and implementation of information 44technology, telecommunications and data-security-related equipment, hardware, software, 45systems, intellectual property and related projects for various state agencies and public 46instrumentalities of the commonwealth to mitigate, avoid, or respond to risks to the security of 47the commonwealth’s technology and telecommunications infrastructure or operations; provided, 48that for projects the secretary of administration and finance certifies to the comptroller directly or 49indirectly generate state revenue or budgetary savings, the comptroller shall transfer such 50revenue or budgetary savings to the state treasurer for payment of debt service related to those 51projects; provided further, that any federal reimbursement received by a state agency in 52connection with projects funded from this item may be retained by the state agency or the 53executive office of technology services and security and expended for the purposes of the 54project, without further appropriation, in addition to the amounts appropriated in this 55item……….………………………………………………………………………$200,000,000. 4 of 7 56 1790-3017 For costs associated with planning and studies, the preparation of plans and 57specifications, purchase, procurement, acquisition, licensing and implementation of information 58technology, telecommunications and data-security-related equipment, hardware, software, 59systems, intellectual property and related projects for various state agencies of the 60commonwealth including, but not limited to, executing strategic initiatives, improving business 61intelligence, and modernizing governmental functions; provided, that for projects the secretary of 62administration and finance certifies to the comptroller directly or indirectly generate state 63revenue or budgetary savings, the comptroller shall transfer such revenue or budgetary savings to 64the state treasurer for payment of debt service related to those projects; provided further, that any 65federal reimbursement received by a state agency in connection with projects funded from this 66item may be retained by the state agency or the executive office of technology services and 67security and expended for the purposes of the project, without further appropriation, in addition 68to the amounts appropriated in this item……………………………………………$250,000,000. 69 SECTION 2B. 70 EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE 71 Office of the Secretary 72 1100-2519 For costs associated with initiatives, projects and expenditures to the quality, 73efficiency and delivery of any service or program for the benefit of the public and the 74interactions between residents and state agencies and instrumentalities of the commonwealth 75including but not limited to, planning and studies, the preparation of plans and specifications, 76purchase, procurement, acquisition, licensing and implementation of artificial intelligence and 77machine learning systems for the various state agencies of the commonwealth, provided that 5 of 7 78such initiatives, projects and expenditures are in accordance with enterprise security policies and 79other applicable administrative directives issued under section 3 of chapter 7D of the General 80Laws and approved by the executive office of technology services and security; provided further 81that for projects the secretary of administration and finance certifies to the comptroller directly or 82indirectly generate state revenue or budgetary savings, the comptroller shall transfer such 83revenue or budgetary savings to the state treasurer for payment of debt service related to those 84projects; provided further, that any federal reimbursement received by a state agency in 85connection with projects funded from this item may be retained by the state agency or the 86executive office of technology services and security and expended for the purposes of this 87project, without further appropriation, in addition to the amounts appropriated in this 88item…………………………………………………………………………………$25,000,000. 89 1599-1953 For a competitive, matching grant program to be administered by the 90executive office for administration and finance, in consultation with the secretary of technology 91services and security, to assist municipalities with the construction of fiber broadband 92infrastructure and related projects and expenditures; provided, that priority for grants shall be 93given to completely unserved premises located in a municipality…………………$30,000,000. 94 SECTION 2C. 95 EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE 96 Office of the Secretary 97 1100-2518 For capital funding for eligible cities, towns, regional organizations whose 98membership is exclusively composed of municipal governments, tribes, local governmental 99agencies, authorities or subdivisions, quasi-state agencies, public authorities and institutions, and 6 of 7 100similar governmental agencies, for purposes including but not limited to address threats to 101information systems, manage and reduce systemic risk, improve security of critical technology 102infrastructure, and improve resilience; provided, further that investments may include, but not be 103limited to, planning and studies, improving government efficiency and effectiveness, preparation 104of plans and specifications, asset modernization, information technology equipment, and 105technical assistance.………………………………………………………………..$150,000,000. 106 Department of Revenue 107 1201-0003 For the division of local services within the department of revenue, for grants 108to carry out the community compact information technology grant program established in 109conjunction with executive order 554………………………………………………$25,000,000. 110 SECTION 3. Chapter 29 of the General Laws, as appearing in the 2022 Official Edition, 111is hereby amended by inserting after section 2DDDDDD the following section:- 112 Section 2EEEEEE. (a) There shall be established and set up on the books of the 113commonwealth a separate, non-budgeted special revenue fund known as the Information 114Technology Federal Reimbursement Fund, which shall be administered by the secretary of 115technology services and security. The secretary shall expend money in the fund for information 116technology projects related to the Commonwealth’s health and human services. There shall be 117credited to the fund: (i) amounts equal to any federal financial participation revenues claimed 118and received by the commonwealth for eligible expenditures made from this fund or from 119eligible expenditures made in direct connection with eligible expenditures made from this fund; 120and (ii) interest earned on any money in the fund. Amounts credited to the fund shall be 121expended without further appropriation. 7 of 7 122 (b) To accommodate timing discrepancies between the receipt of revenue and related 123expenditures, the comptroller may certify for payment amounts not to exceed the most recent 124revenue estimates as certified by the secretary to be transferred, credited or deposited under this 125section. Money remaining in the fund at the end of a fiscal year shall not revert to the General 126Fund and shall be available for expenditure in subsequent fiscal years. 127 SECTION 4. To meet the expenditures necessary to carry out sections 2A and 1282B, the state treasurer shall, upon request of the governor, issue and sell bonds of the 129commonwealth in an amount to be specified by the governor from time to time, but not 130exceeding, in the aggregate, $1,055,000,000. All bonds issued by the commonwealth under this 131section shall be designated on their face, “FutureTech Act of 2024,” and shall be issued for a 132maximum term of years, not exceeding 10 years, as the governor may recommend to the general 133court under section 3 of Article LXII of the Amendments to the Constitution. All such bonds 134shall be payable not later than June 30, 2039. 135 SECTION 5. To meet the expenditures necessary to carry out section 2C, the state 136treasurer shall, upon request of the governor, issue and sell bonds of the commonwealth in an 137amount to be specified by the governor from time to time, but not exceeding, in the aggregate, 138$175,000,000. All bonds issued by the commonwealth under this section shall be designated on 139their face, "FutureTech Act of 2024”, and shall be issued for a maximum term of years, not 140exceeding 30 years, as the governor may recommend to the general court under section 3 of 141Article LXII of the Amendments to the Constitution. All such bonds shall be payable not later 142than June 30, 2059.