Legislature(2023 - 2024)BELTZ 105 (TSBldg)

02/13/2024 03:30 PM Senate STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SSCR 5 DISAPPROVE EO 128 TELECONFERENCED
Moved SSCR 5 Out of Committee
-- Public Testimony --
*+ SB 195 STATE AGENCY PERFORMANCE IMPROVEMENT TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ SB 201 OFFICE OF INFORMATION TECHNOLOGY TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+= SB 159 ALASKA VETERANS' POPPY DAY TELECONFERENCED
Moved SB 159 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
           SB 201-OFFICE OF INFORMATION TECHNOLOGY                                                                          
                                                                                                                                
3:54:52 PM                                                                                                                    
CHAIR   KAWASAKI  reconvened   the  meeting   and  announced   the                                                              
consideration  of  SB  201  "An Act  establishing  the  office  of                                                              
information   technology;  relating   to  information   technology                                                              
projects  undertaken  by  state  agencies; and  providing  for  an                                                              
effective date."                                                                                                              
                                                                                                                                
3:55:18 PM                                                                                                                    
SENATOR  JAMES  KAUFMAN,  District F,  Alaska  State  Legislature,                                                              
Juneau,  Alaska,  stated  he previously  worked  in  a  functional                                                              
matrix organization  with integrated  expertise to assist  project                                                              
teams. These  experts played a  critical role in  the organization                                                              
but were  at times underutilized.  The organization  examined ways                                                              
to  codify  existing  resources   and  better  manage  information                                                              
technology projects.  SB 201 presents an opportunity  to create an                                                              
enterprise  project  management  office that  ensures  Information                                                              
Technology  (IT)   projects  are  driving  value,   well  managed,                                                              
coherent,  and are  not  superfluous.  At a  high  level, work  in                                                              
government  and  some  businesses  is often  performed  online  or                                                              
through a  primary interface,  so ensuring  project success  helps                                                              
enable  organizational interface  and uplifts  the experience.  SB
201 would address  the state's gaps in its  information technology                                                              
practices.  He   referenced  report  findings  published   by  the                                                              
Digital States  Survey of 2022 that  placed Alaska at  the bottom.                                                              
The low  score is attributed  to an  incoherent approach  and gaps                                                              
in  capabilities but  could level  out using  best practices.  The                                                              
Office  of  Information  Technology  (OIT) was  created  under  an                                                              
executive  order with  the intent  to  deliver efficient  service.                                                              
However,  there  are  opportunities  to  further  standardize  the                                                              
processes and establish definitions in statute.                                                                                 
                                                                                                                                
SB 201  would ensure effective  management of technology  projects                                                              
including oversight  on Supplemental Nutrition  Assistance Program                                                              
(SNAP)  backlogs and  professional  licensing permitting,  thereby                                                              
signaling to  the legislature the  state's willingness  to improve                                                              
functions   under  OIT.   The  bill   would   empower  the   Chief                                                              
Information Officer  to oversee IT projects to  ensure investments                                                              
align with executive  strategy, adhere to best  practices, and are                                                              
reported using consistent metrics.                                                                                              
                                                                                                                                
4:01:12 PM                                                                                                                    
SENATOR KAUFMAN  said SB  201 would  strengthen the  legislature's                                                              
awareness  of  ongoing  practices  in  the  realm  of  IT  project                                                              
management.   He  added   that   the  bill   would  improve   cost                                                              
effectiveness,  create  a  more   efficient  and  customer  driven                                                              
landscape,  and enable  state government  recruitment from  remote                                                              
communities.  As  the  state  continues  to  build  out  broadband                                                              
connectivity  in remote areas,  communities  gain access  to state                                                              
internet facilities  and workforce  development. Broadband  access                                                              
would also  solve staffing problems,  permit flexible  work hours,                                                              
and streamline  remote operations.  He suggested that  the fastest                                                              
way to  travel around  Alaska is  through digital connections.  SB
201   would  help   solve  the   state's  challenges   surrounding                                                              
workforce development.                                                                                                          
                                                                                                                                
4:03:47 PM                                                                                                                    
MATTHEW  HARVEY,  Staff,  Senator   James  Kaufman,  Alaska  State                                                              
Legislature,  Juneau, Alaska,  presented on  SB 195.  He spoke  to                                                              
slide 2 of the presentation regarding Alaska's IT landscape:                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Alaska's IT Landscape                                                                                                    
                                                                                                                                
        • In the 1970's/80s, Article 2 of Section AS 44.21                                                                      
          added "automatic data processing" requirements to                                                                     
          DoA resulting  in the  creation of the  Division of                                                                   
          Enterprise Technology Services (ETS).                                                                                 
        • AO 284  by Governor Walker in 2017 merged  ETS into                                                                   
         a new Office of Information Technology (OIT).                                                                          
        • AO 314  by Governor Dunleavy in 2020  improved data                                                                   
          sharing capabilities across agencies.                                                                                 
        • In  2019/2020  the AAPEX  program  was launched  by                                                                   
          DOA  in an  effort to  consolidate  and improve  IT                                                                   
          and back-office functions                                                                                             
        • A   January   press  release   described   Alaska's                                                                   
          transition of  "over 700 applications to  the cloud                                                                   
          without disrupting services to Alaskans"                                                                              
                                                                                                                                
4:05:56 PM                                                                                                                    
MR. HARVEY moved to slide 3 and highlighted current IT                                                                          
challenges in the state:                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Why We Need to Focus on IT                                                                                               
                                                                                                                                
        • At  the  time  of past  legislative  or  AO  action                                                                   
          related  to IT  systems, technology  was not  where                                                                   
          it  is  today and  is  quickly evolving.  We  can't                                                                   
          rely solely on AO's and budget changes.                                                                               
        • Alaska  has  had  numerous  issues  including  SNAP                                                                   
          backlogs  and  professional licensing  wait  times,                                                                   
          in  which  IT  systems  have  been  a  contributing                                                                   
          factor.                                                                                                               
        • All  organizations  struggle  with  technology  and                                                                   
          legacy  apps  SB 201  defines  OIT in  statute  and                                                                   
          creates  an  Enterprise Project  Management  Office                                                                   
          (EPMO) for IT projects within OIT.                                                                                    
        • Centralized   oversight  will  improve   investment                                                                   
          decision  making,  consistency,   integration,  and                                                                   
          optimization.                                                                                                         
        •                                                                                                                       
4:07:23 PM                                                                                                                    
MR. HARVEY moved to slide 4 and explained the purpose of the                                                                    
Enterprise Project Management Office (EPMO):                                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     What is an EPMO?                                                                                                         
                                                                                                                                
   • An EPMO, or Enterprise Project Management Office,                                                                          
     serves  as the strategic  hub for  managing IT  projects                                                                   
     across an organization.                                                                                                    
   • It serves as "mission control" for the state CIO,                                                                          
     providing   a    comprehensive   view    of   technology                                                                   
     investments and projects.                                                                                                  
   • The EPMO operates at a strategic level, ensuring                                                                           
     alignment   between  IT   projects  and   organizational                                                                   
     objectives.                                                                                                                
   • It offers project guidance, governance, standardized                                                                       
     processes,  and  best  practices   to  optimize  project                                                                   
     portfolio management.                                                                                                      
   • Ultimately, the EPMO plays a crucial role in driving                                                                       
     successful   project   outcomes    and   advancing   the                                                                   
     organization's mission in the digital age.                                                                                 
                                                                                                                                
4:08:31 PM                                                                                                                    
MR.  HARVEY  spoke  to  missing  pieces  under  SB  195  including                                                              
components related  to the administrative  order issued  by former                                                              
governor   Bill  Walker   that  comprised   many  operations   and                                                              
responsibilities,  whereas  SB 201  currently  focuses on  project                                                              
management.                                                                                                                     
                                                                                                                                
4:09:25 PM                                                                                                                    
MR. HARVEY presented the sectional analysis for SB 201:                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
         Sectional Analysis for SB 201  Bill Version B                                                                        
                                                                                                                                
     "An   Act  relating   to  the   Office  of   Information                                                                   
     Technology;    relating   to   information    technology                                                                   
     projects  undertaken by  state  agencies; and  providing                                                                   
     for an effective date."                                                                                                    
                                                                                                                                
     Section 1:                                                                                                               
                                                                                                                                
     Adds  a new  Article  to AS  44.21  (State Government  ?                                                                   
     Department of Administration)                                                                                              
                                                                                                                                
     New Section 44.21.600:                                                                                                   
                                                                                                                                
     Creates  the  Office  of  Information  Technology  (OIT)                                                                   
     within  the  Department  of   Administration  (DOA)  and                                                                   
     names  the   director  of   the  office  as   the  Chief                                                                   
     Information Officer (CIO) of the state.                                                                                    
                                                                                                                                
     New Section 44.21.610: Duties of Office and Director                                                                     
                                                                                                                                
     Duties of OIT:                                                                                                             
     •  Develop  and   implement   standardized   Information                                                                   
        Technology (IT) project management processes.                                                                           
     • Manage IT projects using these processes.                                                                                
     •  Ensure  major IT  projects  meet  time,  budget,  and                                                                   
        other requirements.                                                                                                     
     •  Ensure   minor   IT   projects   follow   established                                                                   
        processes.                                                                                                              
     • Establish procedures to reduce change requests.                                                                          
                                                                                                                                
     CIO's responsibilities                                                                                                     
     •  Review, approve or  reject, and monitor  state agency                                                                   
        IT projects undertaken by state agencies.                                                                               
     •  May approve IT  projects that conforms  to procedures                                                                   
        and   policies,    do    not    duplicate    existing                                                                   
        capabilities,  conform   to  procurement  rules   and                                                                   
        policies,  and   for  which   sufficient  funds   are                                                                   
        available.                                                                                                              
     •  Ensure IT  project  requirements  are  documented  in                                                                   
        biennial IT plans.                                                                                                      
     •  If biennial IT plans  change, report new  project and                                                                   
        funding requirements to OMB.                                                                                            
     • May adopt regulations as deemed necessary.                                                                               
                                                                                                                                
     New   Section  44.21.620:   Approval,  suspension,   and                                                                 
     cancellation of projects                                                                                                 
                                                                                                                                
     •  State agencies may  not initiate IT projects  without                                                                   
        approval  from  the  CIO.  A  rejection  must  be  in                                                                   
        writing with  reasons  specified.  Jan 26,  2024  33-                                                                   
        LS1014\B                                                                                                                
     •  CIO may suspend  or cancel IT  projects that  fail to                                                                   
        meet applicable quality standards.                                                                                      
     •  Agencies  can request  the  review  by  the  governor                                                                   
        within  15   business  days  if   the  CIO   rejects,                                                                   
        suspends, or cancels  a project. The governor  has 30                                                                   
        days to respond with  a decision to  affirm, reverse,                                                                   
        modify, or remand the CIO's decision.                                                                                   
     •  Contracts   with  private   entities   must   include                                                                   
        provisions    for    Vendor    performance    review,                                                                   
        suspension, or termination.                                                                                             
     •  The CIO may require performance bonds,  penalties, or                                                                   
        other measures in  case a project  is over  budget or                                                                   
        completed late.                                                                                                         
     •  The  CIO  may  also  use  realized  cost  savings  as                                                                   
        performance incentives for vendors.                                                                                     
                                                                                                                                
     New Section 44.21.630: Project Management                                                                                
                                                                                                                                
     •  The CIO  shall establish  standardized  documentation                                                                   
        requirements,   project   manager    standards,   and                                                                   
        performance measures for project reporting.                                                                             
     •  Project  reports will  be  available  on  a  publicly                                                                   
        accessible website.                                                                                                     
     •  The  CIO  must   establish  a  standardized   project                                                                   
        management  process  including  timelines,  reporting                                                                   
        requirements, and post-completion monitoring.                                                                           
     •  For "Major Information  Technology Projects"  the CIO                                                                   
        will designate a project manager from OIT.                                                                              
             • The project manager shall select qualified                                                                       
               personnel    to    participate   in    project                                                                   
               activities.                                                                                                      
             • The project manager shall provide reports                                                                        
               including  business  requirements,  applicable                                                                   
               laws  and regulations, project  costs, issues,                                                                   
               training,   project   and  actual   completion                                                                   
               dates, and other relevant information.                                                                           
     •  For "Major Information  Technology Projects"  the CIO                                                                   
        may require  agencies to  engage  private counsel  or                                                                   
        subject  matter  experts.   For  "Minor   Information                                                                   
        Technology Projects" the relevant state  agency shall                                                                   
        provide a  project  manager meeting  CIO  established                                                                   
        standards                                                                                                               
     •  A project management  assistant from OIT  will advise                                                                   
        on all "Minor Information Technology Projects"                                                                          
                                                                                                                                
     New Section 44.21.640: Standards for Purchases                                                                           
                                                                                                                              
     The  CIO   shall  establish  standards   for  purchasing                                                                   
     hardware  and software  that are  consistent with  State                                                                   
     Procurement Code.                                                                                                          
                                                                                                                                
     New    Section    44.21.650:    Definitions    (Selected                                                                 
     Definitions Listed Below)                                                                                                
                                                                                                                                
     Change   Request:    A   formal   proposal    requesting                                                                 
     deviations  in the  project processes,  cost, scope,  or                                                                   
     timeline.                                                                                                                  
                                                                                                                                
     Information  Technology Project:  An  effort of  defined                                                                 
     and limited  duration that implements, effects  a change                                                                   
     in,  or   addresses  a  risk  to  processes,   services,                                                                   
     security,   systems,   records,  human   resources,   or                                                                   
     architecture  related to technology  for the  processing                                                                   
     and  transmission  of  information IT  Projects  do  not                                                                   
     include  broadband  projects managed  by  the office  of                                                                   
     broadband Jan 26, 2024 33-LS1014\B                                                                                         
                                                                                                                                
     Major  Information  Technology Project:  An  information                                                                 
     technology  project undertaken  by a  state agency  that                                                                   
     has a  total lifetime  cost of  ownership of $5  million                                                                   
     or  more or an  IT project  that affects  more than  one                                                                   
     agency                                                                                                                     
                                                                                                                                
     Minor  Information  Technology Project:  An  information                                                                 
     technology project  undertaken by a single  state agency                                                                   
     that  has a  total lifetime  cost of  ownership of  less                                                                   
     than $5 million                                                                                                            
                                                                                                                              
     Section 2: Transition                                                                                                    
                                                                                                                                
     The Department  of Administration shall  adopt necessary                                                                   
     regulations                                                                                                                
                                                                                                                                
     Section 3: Effective Date of  Beginning Regulatory Work                                                                  
                                                                                                                                
     The  Department  of Administration  may  begin  drafting                                                                   
     regulations immediately                                                                                                    
                                                                                                                              
     Section 4: Effective Date of Bill                                                                                        
                                                                                                                                
     All other sections  of this bill take effect  January 1,                                                                   
     2025                                                                                                                       
                                                                                                                                
4:13:59 PM                                                                                                                    
CHAIR KAWASAKI asked whether SB 201 specifies guidelines for a                                                                  
director to reject a project.                                                                                                   
                                                                                                                                
4:14:48 PM                                                                                                                    
MR.  HARVEY replied  that bill  language  provides guidelines  for                                                              
the  suspension,  cancellation,  or  rejection of  a  project.  He                                                              
stated  his belief  that  the office  of OIT  would  not reject  a                                                              
project  based  on  policy  decisions,   redundancy,  or  outdated                                                              
technology.                                                                                                                     
                                                                                                                                
4:15:48 PM                                                                                                                    
CHAIR KAWASAKI  noted that  the sectional  analysis excludes  that                                                              
point and  could imply  a director's ability  to reject  a project                                                              
based on personal preference.                                                                                                   
                                                                                                                                
4:16:22 PM                                                                                                                    
SENATOR  KAUFMAN  stated  he  previously  served  as  an  internal                                                              
consultant on 30  different small projects on the  North Slope. He                                                              
said because of  the engagement process, he had a  clear vision of                                                              
the  larger  picture   that  helped  address   vendor  procurement                                                              
issues, construction  techniques, and  other gaps. Resources  were                                                              
developed   and  deployed   to  help   inform  employees   through                                                              
standardization,  planning,  and an  understanding  of the  larger                                                              
picture.                                                                                                                        
                                                                                                                                
4:18:38 PM                                                                                                                    
CHAIR KAWASAKI held SB 201 in committee.                                                                                        

Document Name Date/Time Subjects
SB0201A.pdf SSTA 2/13/2024 3:30:00 PM
SB 201
SB 201 Sponsor Statement Version B 1.26.24.pdf SSTA 2/13/2024 3:30:00 PM
SB 201
SB 201 Sectional Analysis version B 1.26.24.pdf SSTA 2/13/2024 3:30:00 PM
SB 201
SB 201 S(STA) OIT Presentation 2.13.24.pdf SSTA 2/13/2024 3:30:00 PM
SB 201
SB0195A.pdf SSTA 2/13/2024 3:30:00 PM
SB 195
SB 195 Sponsor Statement Version B 2.12.24.pdf SSTA 2/13/2024 3:30:00 PM
SB 195
SB 195 Sectional Analysis Version B 2.12.24.pdf SSTA 2/13/2024 3:30:00 PM
SB 195
1.25.24 TB.pdf SSTA 2/13/2024 3:30:00 PM
SB 159
SB 201 Fiscal Note.Admin.pdf SSTA 2/13/2024 3:30:00 PM
SB 201
SB 195 Fiscal Note.pdf SSTA 2/13/2024 3:30:00 PM
SB 195
SB 201 - IT Organizations in High-Performing States.pdf SSTA 2/13/2024 3:30:00 PM
SB 201