02/13/2024 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SSRC5 | |
| SB195 | |
| SB159 | |
| SB201 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SSCR 5 | TELECONFERENCED | |
| *+ | SB 195 | TELECONFERENCED | |
| *+ | SB 201 | TELECONFERENCED | |
| += | SB 159 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
February 13, 2024
3:32 p.m.
DRAFT
MEMBERS PRESENT
Senator Scott Kawasaki, Chair
Senator Matt Claman, Vice Chair
Senator Jesse Bjorkman
Senator Bill Wielechowski
Senator Kelly Merrick
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SPECIAL SENATE CONCURRENT RESOLUTION (SSRC) NO. 5
Disapproving EO 128.
- MOVED SSCR 5 OUT OF COMMITTEE
SB 195
"An Act relating to the office of management and budget; and
providing for an effective date."
- HEARD AND HELD
SB 159
"An Act establishing Alaska Veterans' Poppy Day; and providing
for an effective date."
- MOVED OUT OF COMMITTEE
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."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SSCR 5
SHORT TITLE: DISAPPROVE EO 128
SPONSOR(s): RULES
02/12/24 (S) READ THE FIRST TIME - REFERRALS
02/12/24 (S) STA
02/13/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 195
SHORT TITLE: STATE AGENCY PERFORMANCE IMPROVEMENT
SPONSOR(s): SENATOR(s) KAUFMAN
01/18/24 (S) READ THE FIRST TIME - REFERRALS
01/18/24 (S) STA, FIN
02/13/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 159
SHORT TITLE: ALASKA VETERANS' POPPY DAY
SPONSOR(s): SENATOR(s) DUNBAR
01/16/24 (S) PREFILE RELEASED 1/8/24
01/16/24 (S) READ THE FIRST TIME - REFERRALS
01/16/24 (S) STA
02/01/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
02/01/24 (S) Heard & Held
02/01/24 (S) MINUTE(STA)
02/13/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 201
SHORT TITLE: OFFICE OF INFORMATION TECHNOLOGY
SPONSOR(s): SENATOR(s) KAUFMAN
01/24/24 (S) READ THE FIRST TIME - REFERRALS
01/24/24 (S) STA, FIN
02/13/24 (S) STA AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR JAMES KAUFMAN, District F
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 195.
MATTHEW HARVEY, Staff
Senator James Kaufman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 195.
SENATOR FORREST DUNBAR, District J
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a brief sponsor statement on SB
159.
SENATOR JAMES KAUFMAN, District F
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 201.
ACTION NARRATIVE
3:32:03 PM
CHAIR SCOTT KAWASAKI called the Senate State Affairs Standing
Committee meeting to order at 3:32 p.m. Present at the call to
order were Senators Claman, Bjorkman, Wielechowski, Merrick, and
Chair Kawasaki.
SSCR 5 DISAPPROVE EO 128
3:33:25 PM
CHAIR KAWASAKI announced the consideration of SENATE SPECIAL
CONCURRENT RESOLUTION NO. 5 Disapproving Executive Order No.
128.
3:33:32 PM
CHAIR KAWASAKI solicited a motion.
3:33:35 PM
SENATOR CLAMAN moved EO 128 be reported from committee, and SSCR
5, work order 33-LS1335\A, with individual recommendations and
attached fiscal note(s). For the record this report does not
reflect an intent by any of the members to vote for or against a
special concurrent resolution disapproving this Executive Order
in joint session.
3:34:17 PM
CHAIR KAWASAKI found no objection and EO 128 and SSRC 5 were
reported from the Senate State Affairs Standing Committee.
SB 195-STATE AGENCY PERFORMANCE IMPROVEMENT
3:34:42 PM
CHAIR KAWASAKI announced the consideration of SENATE BILL NO.
195 "An Act relating to the office of management and budget; and
providing for an effective date."
3:35:12 PM
SENATOR JAMES KAUFMAN, District F, Alaska State Legislature,
Juneau, Alaska, sponsor for SB 195, stated his office develops
performance-type legislation. In a previous Senate State Affairs
Committee hearing, SB 21 passed out of committee to create long-
term strategic operating plans and is currently in Senate
Finance. Both SB 21 and SB 195 work together to help close the
performance gap in legislative operations. He opined that the
state runs a multi-billion-dollar budget operation, but lacks a
coherent continuous improvement quality management plan. If the
Budget Act Reform were to pass, it would create four years of
strategic operating plans, updated every two years. SB 195 would
generate a more robust performance management process, and would
center on customer focus. He said when he worked in the
corporate sector in the 80s-90s, a customer focus was emphasized
through the awareness and identification of potential customers.
He applied the idea of engaging with everyone using a customer
focus, whether between colleagues or among everyday citizens.
Research on other state's uses of the performance concept has a
wide range of possibilities depending on funding. SB 195 aims to
drive definitions into the operations in the Office of
Management and Budget (OMB) to enable a higher degree of
performance management. He read the three key provisions of SB
195 as found in the sponsor statement:
[Original punctuation provided.]
• Expand the statutory duties of the OMB director to
collect and analyze data on performance of agencies,
to advise the governor on matters of improvement of
business processes and increasing accountability, and
to publish regularly updated progress updates on a
website.
• Empower OMB to collaborate with state agencies to
enhance responsiveness, improve customer service
quality, and implement cost optimization strategies.
• Establish a framework for state agencies to cooperate
fully with the OMB, ensuring timely responses to
inquiries and the provision of necessary information
for performance evaluation and improvement.
3:40:05 PM
SENAROR KAUFMAN added that the point of SB 195 is to
establish a performance improvement officer who is
dedicated to better state management and driving a
continuous improvement model. The framework SB 195 provides
would also assist the CEO that is elected every four years.
3:41:26 PM
CHAIR KAWASAKI asked if he considered creating a new
position to advise the governor rather than using the
existing framework within OMB.
3:42:01 PM
SENATOR KAUFMAN replied it is a matter of cost and scope.
He said the state often struggles for funding, so the most
critical move forward is to take the first step. A more
robust position would reap benefits. He suggested the
committee could explore other avenues to address
performance improvement management.
3:42:50 PM
CHAIR KAWASAKI asked for perspective on the issue that SB
195 would increase the responsibility of OMB directors
within the agency of the executive branch but not subject
the position to the legislative confirmation process. He
also asked how the OMB director tasked with collecting data
transcends administrations.
3:43:58 PM
SENATOR KAUFMAN responded that an expansion was not
considered in light of fiscal constraints. However, SB 195
would refine roles and reshape the existing asset to drive
a better product.
3:44:55 PM
MATTHEW HARVEY, Staff, Senator James Kaufman, Alaska State
Legislature, Juneau, Alaska, presented the sectional
analysis for SB 195.
[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.
• 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.
o The project manager shall select qualified
personnel to participate in project
activities.
o 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
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 beginning
drafting regulations immediately
Section 4: Effective Date of Bill
All other sections of this bill take effect January 1,
2025
3:48:06 PM
SENATOR CLAMAN acknowledged challenges with recruiting,
retention, and meeting demands in OMB. He asked whether SB 195
would overwhelm OMB's current extensive list of duties.
3:48:47 PM
SENATOR KAUFMAN responded that SB 195 would incorporate basic
structures that would not entail additional work. In
consideration of the budget, SB 195 was shaped to codify roles
and responsibilities, develop definitions to improve efficiency,
and add leverage to existing resources.
3:49:50 PM
SENATOR CLAMAN asked if leaving out the frequency of plan roll
outs was intentional, since two years was mentioned in
discussion.
3:50:18 PM
MR. HARVEY replied that the mention of two years referenced to
other legislation carried by Senator Kaufman. SB 195 does not
have any requirements for submission of plans.
3:51:10 PM
CHAIR KAWASAKI suggested that a representative from OMB
contribute their thoughts on SB 195.
3:51:32 PM
SENATOR KAUFMAN agreed that participation from OMB would provide
value.
3:51:42 PM
CHAIR KAWASAKI held SB 195 in committee.
3:51:51 PM
At ease
SB 159-ALASKA VETERANS' POPPY DAY
3:52:24 PM
CHAIR KAWASAKI reconvened the meeting and announced the
consideration of SENATE BILL NO. 159 "An Act establishing Alaska
Veterans' Poppy Day; and providing for an effective date."
3:52:57 PM
SENATOR FORREST DUNBAR, District J, Alaska State Legislature,
Juneau, Alaska, said SB 159 provides an opportunity for the
legislature and the people of Alaska to acknowledge service
members who have sacrificed their lives for this country by
designating the Friday before Memorial Day as Veterans' Poppy
Day.
3:53:26 PM
SENATOR MERRICK moved to report SB 159, work order 33-LS0925\S,
from committee with individual recommendations and attached
fiscal note(s).
3:53:48 PM
CHAIR KAWASAKI found no objection and SB 159 was reported from
the Senate State Affairs Standing Committee.
3:54:00 PM
At ease
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.
4:19:03 PM
There being no further business to come before the committee,
Chair Kawasaki adjourned the Senate State Affairs Standing
Committee meeting at 4:19 p.m.
| 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 |