Legislation by keara


									Information Technology Legislative Overview
December 2004
This document provides a summary of the legislative issues related to information technology and identifies policy
matters to consider going forward.

The sections of the report are intended to answer the following questions:

What is the status of the mandates from the 2003 session? What worked? What didn’t?
Status of Mandates from the 2003 Legislative Session .............................2

What came out of the PTI study?
PTI Recommendations.....................................................................................4

Where are we now? Where are we going?
Statewide Technology Plan Highlights .........................................................5

What policy issues should legislators follow?
Technology Policy Issues ...............................................................................7

                                                                      Curt Wolfe
                                                               Chief Information Officer
                                                         Information Technology Department

 Status of Mandates from the 2003 Legislative Session

Legislation       Mandate                                  Result                               Lessons learned /
HB1505,           Required 24 full-time equivalent         The Executive Committee              An analysis had not been
Section 10        (FTE) positions relating to              recommended that eight and one       done prior to the legislation
(Consolidation)   information technology services be       half FTEs (seven full time           to determine the
                  reduced and transferred from 15          positions and half of three          appropriate FTE and
                  agencies to ITD, unless exempted         additional positions) be             savings reduction. After
                  by the Chief Information Officer,        transferred to ITD on November       analysis, it was determined
                  Curtis Wolfe and the Project             1, 2003. Of the eight and one half   transferring 24 FTE was
                  Executive Committee.                     FTEs transferred to ITD, six         not realistic. Many FTE
                                                           positions were filled and two        performed other duties in
                                                           positions were eliminated.           addition to those
HB1505,           Requires OMB to achieve                  OMB and ITD developed cost-          After analysis it was
Section 11        efficiencies during the 2003-05          effective rates for the              determined the savings
(Consolidation)   biennium, relating to the                consolidated services based on       mandated were not
                  consolidation of IT functions. OMB       the increased volume. One            realistic, in part because it
                  and ITD are to achieve                   hundred and two servers were         took time to complete the
                  accumulated net savings totaling         eliminated; reducing ongoing         consolidation so savings
                  $1,400,000, but may exercise full        costs associated with hardware       were not immediately
                  discretion incorporating necessary       replacement and software             available on July 1, 2003.
                  modifications. Savings accumulated       upgrades. Projected savings for      In addition, equipment
                  as a result of those efficiencies will   the 2003-05 biennium total           leases at JSND and DHS
                  transfer to the general fund by June     $438,775, and ongoing savings        were paid off, requiring an
                  30, 2005.                                for the 2005-07 biennium is          up-front investment.
                                                           estimated at $961,146.
HB1505,           Required each state agency and           170 servers were transferred to      Further technical
Section 16        institution, excluding the legislative   ITD or eliminated. Of the 234        consolidation is possible
(Consolidation)   and judicial branches, the               servers in 46 agencies reviewed,     but it will take time, as
                  institutions under the control of the    64 servers remain in 19 agencies     existing applications need
                  state board of higher education, the     because of unique requirements.      to be migrated to the target
                  Public Employees Retirement              These agencies have been given       technology. Investment
                  System (PERS), the Retirement            temporary exemptions to be           may be needed to achieve
                  and Investment Office (RIO), the         reviewed on a biennial basis.        further savings, i.e.
                  Attorney General’s Office, and any                                            conversion to one e-mail
                  entity exempt by OMB and ITD, to                                              system.
                  obtain the recommended services
                  through a delivery system
                  established by ITD and OMB.
HB1505,           ITD’s general fund appropriation         ITD reduced operational costs for    Capturing operational
Section 1 & 8     was reduced by $1,000,000 without        state agencies for 3 services to     savings in this manner
(General fund     specifically identifying programs to     achieve savings. An Attorney         does not appear to be a
reduction)        be cut. (Unreturned cost savings         General’s opinion indicated the      good mechanism to fund
                  were expected to make up the             savings could not be used to         state programs. Federal
                  shortfall.)                              offset the general fund shortfall    regulations prohibit these
                                                           (primarily in K-12 programs) and     kinds of accounting
                                                           so the savings were passed on to     practices. ITD will be
                                                           state agencies in the form of rate   seeking a deficiency
                                                           reductions.                          appropriation to cover the

Legislation      Mandate                                Result                               Lessons learned /
HB1505,          OMB will transfer $862,059 from        $791,917 was transferred from 13     The direct transfer of funds
Section 2 & 3    special funds in 20 agencies to ITD.   agencies. Regulations governing      to ITD from agencies to
(Agency fund     (This was intended to fund an          7 agencies did not allow the         fund unrelated initiatives
transfers)       equivalent reduction in general        transfer.                            was problematic. ITD will
                 funds in ITD’s budget.)                                                     be seeking a deficiency
                                                                                             appropriation to cover the
HB1505,          ITD shall develop product              A cross-agency committee             The PC contract was a
Section 7        specifications and OMB shall           developed specification for PCs      very successful cross-
(Equipment and   develop policies and guidelines for    and laptops and issued an RFP.       agency initiative. The state
software         purchasing and pursue aggregated       The resulting contract represents    will continue to pursue
purchases)       contracts to reduce costs. ITD shall   savings of over $350 per             aggregated contracts when
                 report purchases and estimated         computer compared to the             appropriate.
                 savings by funding source to the IT    current contract. A state contract
                 Committee.                             has also been issued for testing
HB1505,          Responsibility for compliance          ITD has established processes to     Because ITD did not go
Sections 15&16   reviews moved from ITD to the          report non-compliance to the         through the administrative
(Compliance      Auditor’s Office.                      Auditor’s Office for ADA and large   rules process, the
reviews)                                                projects.                            enforceability of the
                                                                                             standards is in question, so
                                                                                             the auditors are not
                                                                                             currently pursuing any
                                                                                             compliance reporting. A bill
                                                                                             has been drafted to
                                                                                             exempt standards from the
                                                                                             administrative rules
HB1505,          NDCC, 54.59.09, and         Over 100 people are involved in      The Enterprise Architecture
Sections 16 &    54.59.22 were created or modified      creating standards through the       process is maturing and
20, and          to establish responsibilities for IT   Enterprise Architecture process.     beginning to work very
HB1043,          standards with ITD, OMB and an         The SITAC provides the highest       well. A bill has been drafted
Section 5 & 7    advisory committee. The State IT       level of review. Twenty-three        to eliminate confusing and
(Governance)     Advisory Committee (SITAC)             standards were approved in 2004      conflicting code in NDCC
                 membership was changed.                and six studies/recommendations      54.59 dealing with
                                                        were undertaken.                     standards development
                                                                                             and also reduce the role of
                                                                                             OMB in the process.
HB1505,          NDCC was created            The SITAC prioritized IT projects    The process seemed to
Section 16       requiring prioritization of major      over $250,000 that were planning     work well. A bill has been
(Project         software projects by the CIO and       to request general funds.            drafted to change the code
ranking)         the advisory committee.                                                     to reflect that prioritization
                                                                                             should include “information
                                                                                             technology” projects not
                                                                                             just “software” projects.

 PTI Recommendations

House Bill 1505, section 13 (2003) required Legislative Council to conduct an information technology organization and
management study. Legislative Council contracted with Pacific Technologies, Inc to complete the study. Following are
their key findings and major recommendations along with the current status. The complete study can be found at

PTI Key Findings                   PTI Major Recommendations           Current Status
1. The State has a highly          Consolidate all labor associated     Agencies are gathering data to see
fragmented approach to help        with installing, maintaining, and       where centralized services can
desk services and workstation      supporting personal computers           provide measurable benefits.
support.                           within the Information               ITD will provide support services to
                                   Technology Department (ITD).            agencies as requested.
                                                                        The need for further consolidation will
                                                                           be reviewed after standardized
                                                                           workstations have been deployed
2. Inconsistent standards and      Move to a highly standardized        Standard configurations were
policies surround workstation      workstation environment on a            developed through EA and a contract
platforms, configurations, and     statewide basis – with ITD              has been issued.
replacement.                       managing the replacement             ITD is in the process of developing a
                                   cycles.                                 service offering for PC management.
                                                                        Implementation of a desktop
                                                                           management solution will be a critical
                                                                           next step.
3. The State can achieve           Consolidate all servers into ITD     102 servers were eliminated during
additional savings and improve     – reducing over 150 servers             consolidation. Further reductions will
alignment with long-term goals     from the State’s inventory and          occur over time as outdated
(post-HB 1505) through             making corresponding                    applications and servers are
continued server consolidation     reductions to agency and ITD            replaced.
efforts.                           server administration labor.         Investments may be required to
                                                                           achieve additional server
                                                                           consolidation, i.e. email.
4. The State lacks consistent      Build on existing IT governance      A project prioritization process has
methods, tools, and                processes – including                   been implemented.
performance measures to            mechanisms for cost                  The Enterprise Architecture process
assess and prioritize requests     containment and meaningful              is maturing and provides a good
for major IT investments.          statewide IT management                 vehicle for inter-agency collaboration.
                                   reporting.                           Procurement and asset management
                                                                           have been a focus. Eventually
                                                                           PeopleSoft will provide better asset
Key Findings Major Recommendations Primary Benefits

    Statewide Technology Plan Highlights

The Statewide Technology Plan 2005-2007 outlines five goals for state government. Following is an explanation of each
goal in terms of where we are now and where we are going. Also highlighted are a few of the initiatives related to each

Goal 1: Build and support automated services to meet increasing customer expectations
Where are we now?
The State has a number of key services available online and is on par with most states. Game and fish licensing, vital
records and tax filing have been popular sites. We have placed a major emphasis on accessibility compliance and are
ranked first above all other states in that area.

Where are we going?
Agencies continue to offer more information and additional services on their web sites. Customer expectations for ease-
of-use and convenience are based on positive experiences with online banking and shopping. Behind the scenes
support to keep systems operating 24 X 7 is critical.

Highlighted initiatives:
 As part of its emphasis on customer service, ITD is planning a major transformation of its support services. ITD’s
    goal is “Best in Class” in six years.

Goal 2: Maintain core business processes to reduce the risk of potential disruption to critical
Where are we now?
The State has replaced a number of old, legacy systems that are hard to maintain including financials and payroll but
many remain. In addition, the current disaster recovery plans for most systems require long recovery times in the event
of a disaster.

Where are we going?
Eventually legacy systems will be rewritten using newer technologies and the mainframe will not be needed. The state
will limit the number of servers and operating systems supported to reduce costs and improve service. A second disaster
recovery site in the Bismarck area will improve the response time in case of a disaster.

Highlighted initiatives:
 ITD plans to migrate the applications from the IBM mainframe to a current technology platform, generating savings
    in administration and licensing fees.
    State agencies plan to replace a number of legacy systems including MMIS, Tax systems and Unemployment
    ITD is planning to begin development of a second data center to improve disaster recovery services.

Goal 3: Manage state government resources to enhance efficiency and improve service
Where are we now?
The State implemented an Electronic Data Management System (EDMS) called FileNet several years ago. Several
agencies have integrated the technology into their business processes to improve service. The enterprise architecture
process is maturing and shared solutions are more common.

Where are we going?
Several agencies have business process improvement initiatives planned that deploy EDMS and other technologies.
Additional efficiencies will be gained as agency employees become familiar with the full functionality of the PeopleSoft
products. The enterprise architecture process will continue to be used to reduce redundancy and duplication in the
technical infrastructure.

Highlighted initiatives:
 Deploy an enterprise time and attendance system to manage labor costs.
   Continue process improvement through the deployment of ConnectND/PeopleSoft.
   Common groupware systems will be implemented to enhance productivity within state government.

Goal 4: Collect and disseminate information to ensure an informed public and informed
decision-making by government employees, while maintaining the privacy and confidentiality
of personal information where appropriate
Where are we now?
Hub and spoke technologies have been implemented for sharing data via the Criminal Justice Information System
(CJIS) hub, the Geographic Information Systems (GIS) hub, and others. Security standards have been a focus of
Enterprise Architecture.

Where are we going?
Implementation of security policies and procedures statewide is a priority in order to protect state data and infrastructure.
Technologies such as “web services” will be used to implement data sharing applications in a number of agencies.

Highlighted initiatives:
 Add additional data sources to the CJIS hub.
   Acquire and share additional mapping data via the GIS hub.

Goal 5: Build an affordable shared infrastructure to deliver core services to North Dakota
Where are we now?
North Dakota has a robust state data network with extensive video conferencing capability. The state radio network has
provided consistent service delivery but changing technologies are creating issues. ITD hosts the PowerSchool
application for K-12 schools and Law Enforcement Records Management System (LRMS) for political sub-divisions,
providing low cost solutions by aggregating demand.

Where are we going?
Network bandwidth requirements continue to grow. Wireless technologies are becoming more pervasive. An upgrade to
the state radio network is needed to maintain compatibility across the state. IP telephony technologies are maturing to
the point that they offer and alternative to traditional PBX services.

Highlighted initiatives:
 Upgrade the state radio network to digital.
   Upgrade the state data network to increase capacity through 2013.
   Begin migrating phone service to use IP telephony.
   Through CJIS, expand the number of applications hosted for law enforcement, State’s Attorneys and other criminal
    justice entities.

 Technology Policy Issues

Administrative Rules
ITD was under the mistaken impression that technical standards and policies did not require the administrative rules
process. An attorney general’s opinion has clarified that administrative rules are required under current statute. The
legislative IT committee has drafted a bill to exempt standards and policies from the administrative rules process if they
have been reviewed by the state IT advisory committee because the standards primarily effect state agencies and
network services, not the public.

Responsibility for Standards
Over time several sections of NDCC 54.59 were created giving the responsibility for standards development and
approval to several entities. The legislative IT committee has drafted a bill to eliminate confusing language and center
responsibility with ITD and the state IT advisory committee.

ITD Borrowing Limit
In order for invest in technologies that have long-term cost savings without using general funds, ITD may need to
increase its borrowing limits or lengthen the payback period to finance the investment. The investment would be
recovered by maintaining rate levels to customers and using savings to offset repayment. The mainframe migration
project is an example.

Contracting Issues / Indemnity / Limits of Liability
Recent interpretation of state law by the Attorney General’s Office advises that agencies should not enter contracts that
limit the vendor’s liability. This has made it difficult to negotiate technology contracts and reduces the vendor pool for
competitive bids. A legislative change may be proposed to establish a process for determining acceptable risk and
allowing limited liability contracts.

Aggregated Contracts for Political Subdivisions
Including political subdivisions in aggregated contracts can provide additional benefits. State Procurement is trying to
clarify their ability to enter contracts on behalf of political subdivisions.

Agency Exemptions from Current Consolidated Services
In addition to the PERS, RIO, the Attorney General’s Office, Higher Education, and the legislative and judicial branches,
OMB and ITD provided full or partially exemptions to a number of other agencies. These exemptions were provided on a
temporary basis to be reviewed every two years with the understanding that if the business or technology reason for the
exemption is no longer valid, the agency will be consolidated at that point. Some agencies may pursue permanent
exemptions and these should be reviewed on a case-by-case basis.

Consolidation of Additional Services
Today, legislation mandates ITD as the service provider for network services, e-mail, hosting, file and print, database
and application servers. Consolidation of additional services via mandates is not recommended. Desktop support and
other services will be offered on a voluntary basis and evaluated. Other services may be evaluated through the
enterprise architecture process and consolidated if a cost-benefit analysis shows efficiencies.

K-12 Network Funding
Continued funding of the K-12 network connections is critical to schools in North Dakota. Delayed e-rate payments to
vendors due to the inability of USAC to obligate funds based on projected revenue are causing concern.

Recruitment and Retention of IT Staff
As the economic picture improves and as baby-boomers leave the job market, recruiting and retaining IT staff for key
positions may become more difficult. The state needs to emphasize competitive salaries and progressive employment
practices to attract skilled staff.

Performance Management
The implementation of performance management and/or the requirement for agency strategic plans could effect the
implementation of technology planning and project management. ITD supports business planning as a driver for the IT
plan and technology performance reporting as a subset of business performance management. However, mandating
best practices isn’t always effective in creating a culture change and should be considered carefully. Performance
management should be considered as part of a comprehensive plan for improving government. Incentives and
implementation assistance should be provided to ensure acceptance. Implementation of PeopleSoft’s Enterprise
Performance Management should be considered as a tool to manage the performance data reporting.


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