ASSEMBLY, No. 904 STATE OF NEW JERSEY. 218th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION

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1 ASSEMBLY, No. 0 STATE OF NEW JERSEY th LEGISLATURE PRE-FILED FOR INTRODUCTION IN THE 0 SESSION Sponsored by: Assemblywoman BETTYLOU DECROCE District (Essex, Morris and Passaic) SYNOPSIS Revises current review and approval process for certain State information technology-related spending requests; designated as Spurring Technological Innovation Act. CURRENT VERSION OF TEXT Introduced Pending Technical Review by Legislative Counsel.

2 A0 B.DECROCE AN ACT revising the review and approval process for certain State information technology-related spending requests, designated as the Spurring Technological Innovation Act, and supplementing P.L., c. (C.:B- et seq.) and amending P.L.00, c. and P.L.0, c.. BE IT ENACTED by the Senate and General Assembly of the State of New Jersey:. (New section) a. Each request for appropriation or permission to spend made in accordance with section of P.L., c. (C.:B-) that includes an itemized amount for any new related services or equipment shall provide, as part of the request required to be filed with the Director of the Division of Budget and Accounting, a supplemental statement regarding the itemized amounts. b. The supplemental statement shall, at a minimum, set forth in detail: () the amount to be spent by the spending agency for the new related services or equipment; () the spending agency s need for and anticipated use of the new related services or equipment; and () the spending agency s determination that the use of the new related services or equipment will comply with any Statewide policies and standards, and an approved department Information Technology Strategic Plan, in effect on the date the request for appropriation or permission to spend is made. c. The supplemental statement shall be made on forms furnished by the director and shall be accompanied by any additional information and documentation that the director determines to be necessary and appropriate to substantiate a spending agency s request.. Section of P.L.00, c. (C.:A-0) is amended to read as follows:. The Chief Technology Officer shall be authorized to: a. Establish the internal organizational structure of the Office of Information Technology in a manner appropriate to carrying out the duties and functions, and fulfilling the responsibilities, of the office; b. Coordinate and conduct all information technology operations in the Executive Branch of State Government, including agency technology operations; EXPLANATION Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted in the law. Matter underlined thus is new matter.

3 A0 B.DECROCE c. Draft and establish Service Level Agreements with each department and agency in the Executive Branch of State Government; d. Review and analyze the results of the Statewide Information Technology Assessment Study; [and] e. Enter into agreements, in accordance and consistent with applicable law, regulations, and existing contracts, with private and public entities or individuals to effectuate the purposes of sections through of P.L.00, c. (C.:A- through C.:A- ); and f. Establish criteria that may be used by the Director of the Division of Budget and Accounting in the Department of the Treasury to examine and determine the necessity or advisability of each request for appropriation or permission to spend made in accordance with section of P.L., c. (C.:B-) and section of P.L., c. (C. ) (pending before the Legislature as this bill) that includes an itemized amount for any new information or equipment. (cf: P.L.0, c., s.). Section 0 of P.L.0, c., the annual appropriations act for State fiscal year 0, is amended to read as follows: 0. None of the funds appropriated to the Executive Branch of State government for Information Processing, Development, Telecommunications, and Related Services and Equipment shall be available to pay for any of these services or equipment without the [review of the Office of Information Technology, and compliance with statewide policies and standards and an approved department Information Technology Strategic Plan] filing of a supplemental statement with the Director of the Division of Budget and Accounting in accordance with section of P.L., c. (C. ) (pending before the Legislature as this bill), and, if the services or equipment are related to a large-scale information technology project, the review and approval of the New Jersey Information Technology Project Review Board in accordance with section of P.L.00, c. (C.:A-). (cf: P.L.0, c., s.0). This act shall take effect immediately. STATEMENT This bill, designated as the Spurring Technological Innovation Act, revises the current statutory review and approval process

4 A0 B.DECROCE established for certain information technology-related spending requests made by State departments and agencies. Currently, State departments and agencies are generally prohibited from purchasing information technology equipment and services without the review and approval of the Office of Information Technology. The law provides that funds appropriated to the Executive branch of State government for information and equipment will not be available to pay for those services or equipment without the review of the Office of Information Technology, and compliance with Statewide policies and standards and an approved department Information Technology Strategic Plan. This process, whereby State departments and agencies are required to seek the Office of Information Technology s review and approval prior to purchasing new equipment and services, was established to better coordinate the information technology priorities of the State, and to achieve cost savings through economies of scale. By requiring all requests for new information technology purchases to go through the office, the State could identify unnecessary spending and better leverage the State s purchasing power. However, the Office of Information Technology s involvement in the review and approval process has had unintended consequences. The additional layer of review has stifled technological innovation among State departments and agencies, and created a conflict of interest in which the Office of Information Technology provides information technology services but also reviews and approves service choices and often steers State departments and agencies to services provided by the office. This bill eliminates that conflict and returns greater autonomy to State departments and agencies by diminishing the Office of Information Technology s role in the review and approval process. The bill removes language in this year s annual appropriations act that prohibits Executive branch departments and agencies from expending funds for information processing, development, telecommunications, and related services and equipment without the review of the Office of Information Technology, and instead prohibits those departments and agencies from expending funds for those goods and services without first filing a supplemental statement with the Director of the Division of Budget and Accounting in the Department of the Treasury. The bill s requirement to file a supplemental statement provides the director with additional resources to review annual spending requests that include spending for new information technology. Under the bill, spending agencies submitting requests that include itemized amounts for new information processing, development,

5 A0 B.DECROCE 0 telecommunications, and related services or equipment are required to include, as part of the request, a supplemental statement detailing the amount to be spent, the spending agency s need for and anticipated use of the new services or equipment, and the spending agency s determination that the use of the new services or equipment will comply with any Statewide policies and standards, and an approved department Information Technology Strategic Plan, in effect on the date the request for appropriation or permission to spend is made. The bill requires the Chief Technology Officer of the Office of Information Technology to develop criteria that can be used by the director to evaluate information technology-related spending requests. Under the bill, the criteria developed by the Chief Technology Officer may be used by the director to determine the necessity of each request for appropriation or permission to spend that includes an itemized amount for any new information or equipment. The bill s changes will not affect the New Jersey Information Technology Project Review Board s authority to review and approve large-scale information technology projects. Executive spending in connection with large-scale information technology projects that are determined to be in excess of $ million must continue to be submitted to the board for review and approval. The bill takes effect immediately upon enactment.