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.