ASSEMBLY, No STATE OF NEW JERSEY. 215th LEGISLATURE INTRODUCED NOVEMBER 18, 2013

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1 ASSEMBLY, No. STATE OF NEW JERSEY th LEGISLATURE INTRODUCED NOVEMBER, 0 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 the Spurring Technological Innovation Act. CURRENT VERSION OF TEXT As introduced.

2 A B.DECROCE AN ACT revising the current review and approval process for certain State information technology-related spending requests, 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) 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 information processing, development, telecommunications, and 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. The supplemental statement shall, at a minimum, set forth in detail: the amount to be spent by the spending agency for the new information processing, development, telecommunications, and related services or equipment; the spending agency s need for and anticipated use of the new information processing, development, telecommunications, and related services or equipment; and the spending agency s determination that the amount to be spent for and the anticipated use of the new information processing, development, telecommunications, and related services or equipment will comply with any directions, standards, and priorities for the information technology community in the Executive Branch of State Government that have been defined and established by the New Jersey Information Technology Governing Board pursuant to paragraph () of subsection i. of section 0 of P.L.00, c. (C.:A-). 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 0 of P.L.00, c. (C.:A-) is amended to read as follows: 0. a. There is established the New Jersey Information Technology Governing Board. b. The Governing Board shall be comprised of nine members, including: () the Chair, who shall be appointed by and serve at the pleasure of the Governor and shall possess the qualifications, 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 A B.DECROCE training, and experience to perform the duties and fulfill the responsibilities of the position; () the Chief Technology Officer; () the State Treasurer, or a designee, who shall serve ex officio; () three Executive Branch Commissioners, who shall be appointed by and serve at the pleasure of the Governor; and () three public members, who shall be appointed by and serve at the pleasure of the Governor. c. The Governing Board shall organize as soon as practicable, but no later than the 0th day after the appointment of a majority of its members. The Governing Board shall elect a vice-chair from among its members and appoint a secretary who need not be a member of the board. d. Vacancies in the membership of the Governing Board shall be filled in the same manner as provided for in the original appointments. e. The Governing Board shall meet quarterly or at more frequent intervals at the discretion of the Chair. The meetings of the board shall be held at the times and in the places the Chair deems necessary and appropriate to fulfill its duties and responsibilities. f. The Office of Information Technology shall provide such stenographic, clerical, and other administrative assistants, and such professional staff, as the Governing Board requires to carry out its work. The board shall be entitled to call to its assistance, and avail itself of the services of, the employees of any State, county, or municipal department, board, bureau, commission, or agency as it may require and as may be available for its purposes. g. The public members of the Governing Board shall serve without compensation for their services, but may be reimbursed for traveling and other miscellaneous expenses necessary to perform their duties, within the limits of the funds made available to the board for its purposes. h. The public members appointed to the Governing Board shall be considered public officers, subject to the financial disclosure requirements of Executive Order No. of 00. i. It shall be the duty and responsibility of the Governing Board to: () define and establish the overall direction, standards, and priorities for the information technology community in the Executive Branch of State Government; () review and approve the annual budget request of the Office of Information Technology; () [review and approve all requests from departments and agencies for new information technology spending, prior to submission to the Division of Budget and Accounting in the Department of the Treasury] (Deleted by amendment P.L., c. ) (pending before the Legislature as this bill); [and]

4 A B.DECROCE () define the extent of large-scale information technology projects and establish a monetary threshold for information technology projects requiring the review and approval of the Project Review Board; and () establish policies and procedures that may be used by the Director of the Division of Budget and Accounting in the Department of the Treasury to review information technology spending requests of departments and agencies in accordance with the directions, standards, and priorities for the information technology community in the Executive Branch of State Government that have been defined and established by the Governing Board pursuant to paragraph () of this subsection. (cf: P.L.00, c., s.0). 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] filing of a supplemental statement with the Director of the Division of Budget and Accounting pursuant to section of P.L., c. (C. ) (pending before the Legislature as this bill), and compliance with statewide policies and standards and an approved department Information Technology Strategic Plan. (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 review and approval process established for certain information technology-related spending requests made by State departments and agencies. Under current law, State departments and agencies are generally prohibited from procuring information technology equipment and services without the review and approval of the Office of Information Technology. Current law stipulates that the New Jersey Information Technology Governing Board must review and approve all requests from departments and agencies for new information technology spending (prior to submission to the Division of Budget and Accounting in the Department of the Treasury), and general provisions in this year s annual appropriations act further specify that funds appropriated to the Executive branch for information processing, development, telecommunications, and related services

5 A B.DECROCE and equipment will not be available to pay for those services or equipment without the review of the Office of Information Technology. This process, whereby State departments and agencies must seek the Office of Information Technology s review and approval prior to purchasing new equipment and services, was established to coordinate the information technology priorities of the State, and to achieve cost savings. By requiring all requests for new information technology purchases to go through a single State agency, 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 self-autonomy to State departments and agencies by restricting the Office of Information Technology s role in the review and approval process. The bill eliminates provisions in the Office of Information Technology s enabling statute that require the office to review and approve all requests from departments and agencies for new information technology spending, and modifies 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. In addition, the bill provides the Director of the Division of Budget and Accounting with additional resources to review annual spending requests that include spending for information technology. The bill requires spending agencies submitting requests that include itemized amounts for new information processing, development, telecommunications, and related services or equipment 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 amount to be spent for and the anticipated use of the new services or equipment will comply with directions, standards, and priorities for the information technology community that have been defined and established by the New Jersey Information Technology Governing Board. Under the bill, State departments and agencies that receive funds through the State budget for information processing, development, telecommunications, and related services or equipment will

6 A B.DECROCE similarly be required to file a supplemental statement. The modified language in this year s annual appropriations act stipulates that funds appropriated to the Executive branch for information processing, development, telecommunications, and related services and equipment will not be available to pay for those services or equipment without filing a supplemental statement with the Director of the Division of Budget and Accounting. The bill takes effect immediately.