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SENATE BILL NO. 38
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY SENATOR KAUFMAN
Introduced: 1/22/25
Referred: State Affairs, Finance
A BILL
FOR AN ACT ENTITLED
"An Act establishing the office of information technology; rela ting to information 1
technology projects undertaken by state agencies; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 44.21 is amended by adding new sections to read: 4
Article 7. Office of Information Technology. 5
Sec. 44.21.600. Office of information technology and chief info rmation 6
officer. The office of information technol ogy is created in the Departm ent of 7
Administration. The director of the office is the chief information officer of the state. 8
Sec. 44.21.610. Duties of office and director. (a) The office shall 9
(1) oversee all information technology services and resources in the 10
executive branch of state government; 11
(2) ensure that information te chnology services are acquired, and 12
information resources are manage d, in a manner that effectively implements standard 13
policies, procedures, security controls, and the business prior ities established by 14
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executive branch agencies; 1
( 3 ) p r o m o t e t h e e f f e c t i v e a n d efficient design and operation o f all 2
major information resources and management processes for the state; 3
(4) oversee the development, imp lementation, and enforcement o f 4
information technology security policies, standards, and practi ces in all executive 5
branch agencies, contractors of executive branch agencies, and third-party, 6
information-sharing partners of executive branch agencies; 7
(5) employ a chief information security officer to assist the chief 8
information officer; the chief information security officer is chosen by the chief 9
information officer and serves at the pleasure of the chief information officer; 10
(6) develop strategies and speci fic plans for hiring, training , and 11
professional development to rectify deficiencies in information technology security 12
policies, standards, and practices; 13
(7) identify and inventory all computer equipment owned by the state 14
and determine, in consultation w ith department heads, the equip ment that should be 15
disposed of as surplus property under AS 44.68.110; 16
(8) adopt, fully document, and implement a standardized proces s for 17
managing information technology projects; 18
(9) manage information technology projects using a standardized, fully 19
documented process established and overseen by the director as described in 20
AS 44.21.630; 21
(10) ensure that major informa tion technology projects are com pleted 22
on time and within budget and meet all defined business require ments upon 23
completion; 24
(11) ensure that minor informa tion technology projects follow 25
processes established by the office; 26
(12) establish procedures to limit the need for change requests. 27
(b) The director shall review, approve or reject, and monitor all information 28
technology projects undertaken by a state agency. The director may approve an 29
information technology project 30
(1) that conforms to project management procedures and policies; 31
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(2) that does not duplicate a capability already existing in the state; 1
(3) that conforms to procurement rules and policies; and 2
(4) for which sufficient funds are available. 3
(c) The director shall ensure that state agency information te chnology project 4
requirements are documented in biennial information technology plans. If a state 5
agency updates a biennial information technology plan to add a new project, the 6
director shall immediately report to the office of management a nd budget the reasons 7
for the new requirement and the costs and funding sources assoc iated with the new 8
requirement. 9
(d) The director may adopt regul ations that the director considers necessary to 10
implement AS 44.21.600 - 44.21.660. 11
Sec. 44.21.620. Approval, suspension, and cancellation of proje cts. ( a ) A 12
state agency may not begin an in formation technology project un less the director 13
approves the project. If the dir ector rejects a proposed information technology project, 14
the director shall indicate the specific reasons the project wa s rejected in writing. The 15
director shall, within five business days after rejecting a pro ject, deliver the written 16
rejection to the state agency a nd provide a copy of the rejecti o n t o t h e o f f i c e o f 17
management and budget. 18
(b) The director may suspend or cancel an information technolo gy project that 19
does not continue to meet applicab le quality assurance standard s . T h e d i r e c t o r s h a l l 20
immediately suspend or cancel an information technology project that is initiated 21
without the director's approval. A project suspended or cancele d because the project 22
lacks the director's approval may not proceed until the state a gency completes all 23
required project management docum entation and the director appr oves the project. If 24
the director suspends or cancels a project, the director shall, within five business days 25
after ordering the suspension or cancellation, provide in writi ng to the state agency 26
and the office of management and budget the specific grounds fo r the suspension or 27
cancellation of the project. 28
(c) A state agency may request that the governor review the di rector's decision 29
to reject, suspend, or cancel an information technology project , or the director's 30
decision not to enter into an agreement under AS 44.21.650, by submitting a written 31
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request for review to the gover nor within 15 business days afte r receiving written 1
notice of the director's decision. The agency's request for rev i e w m u s t s p e c i f y t h e 2
grounds for the disagreement with the director's determination and include a copy of 3
the director's written notice. The governor may request additio nal information from 4
the agency or the director. Within 30 days after receiving the agency's request for 5
review, the governor shall provide written notice to the agency and the director of the 6
governor's decision and the specific grounds for the decision. The governor may 7
(1) affirm the director's decision; 8
(2) reverse or modify the director's decision if the governor finds that 9
the decision is not supported by substantial evidence; or 10
(3) remand the decision to the director for additional findings. 11
(d) A contract between a state agency and a private entity for an information 12
technology project must include provisions for vendor performan ce review and 13
accountability, contract suspensi on or termination, and termina tion of funding. The 14
director may require that a cont ract with a private entity incl ude a performance bond, 15
monetary penalties, or other performance assurance measures for a project that is not 16
completed within the specified time or that exceeds the contrac ted price. The director 17
may use cost savings realized on government vendor partnerships as performance 18
incentives for an information technology vendor. 19
Sec. 44.21.630. Project management. (a) The director shall establish 20
standardized documentation requi rements for information technol ogy projects, 21
including requests for proposals and contracts. The director sh all establish standards 22
for project managers and project management assistants. The dir ector shall develop 23
performance measures for project reporting and make project rep orts available to the 24
public on the office's Internet website. 25
(b) The director shall establis h a clearly defined, standardiz e d p r o c e s s f o r 26
project management that includes timelines for completion of process requirements for 27
both the office and state agencies. The director shall also est ablish reporting 28
requirements for information t echnology projects during the pla nning, development, 29
and implementation phases of the project and following completion of the project. The 30
director shall continue to monito r system performance and finan cial aspects of each 31
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project after implementation. 1
(c) For a major information t echnology project, the director s hall designate a 2
project manager from the office. The project manager shall sele ct qualified personnel 3
from the state agency undertaking the project to participate in information technology 4
project management, implementa tion, testing, and other activiti es. The project 5
manager shall provide periodic re ports to the director. The rep orts must include 6
information regarding the state agency's business requirements, applicable laws and 7
regulations, project costs, issu es related to hardware and soft ware, training, projected 8
and actual completion dates, and other information relevant to the implementation of 9
the information technology project. 10
(d) The director may require a state agency developing or unde rtaking a major 11
information technology project to engage the services of privat e counsel or a subject 12
matter expert with the appropriate information technology exper tise. The private 13
counsel or subject matter expert may review requests for propos als, review and 14
provide advice and assistance during the evaluation of proposal s and selection of 15
vendors, and review and negotiate contracts associated with the project. This 16
subsection applies to minor inf ormation technology projects tha t are related and 17
separated into individual projects if the total cost of ownersh ip of the individual 18
projects exceeds $5,000,000. 19
(e) For a minor information tec hnology project, the state agen cy undertaking 20
the project shall provide one or more project managers. A state agency project 21
manager is subject to review and approval by the director. A st ate agency project 22
manager shall ensure that applicable quality assurance standard s are met, as 23
determined by the director. A state agency project manager shal l provide periodic 24
reports to a project management assistant assigned to the proje ct under (f) of this 25
section. The reports must include information regarding project costs, issues related to 26
hardware and software, training , projected and actual completio n dates, and other 27
information relevant to the implementation of the information technology project. 28
(f) For a minor information tec hnology project, the director s hall designate a 29
project management assistant from the office. The director may designate a project 30
management assistant from the o ffice to a major information tec hnology project. A 31
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project management assistant designated under this subsection s hall advise the state 1
agency undertaking an informati on technology project on the ini tial planning of a 2
project, the content and design of requests for proposals, cont racts, procurement, and 3
architectural and other technical reviews. The project manageme nt assistant shall also 4
monitor progress in the developm ent and implement ation of the p roject and provide 5
status reports to the state agen cy and the director, including recommendations 6
regarding continued approval of the project. 7
Sec. 44.21.640. Standards for purchases. The director shall establish 8
standards for the purchase of state agency hardware and softwar e that are consistent 9
with AS 36.30 (State Procurement C ode) and reflect identified a nd documented state 10
agency needs. 11
Sec. 44.21.650. Exemptions. (a) The director may enter into a written 12
agreement with a state agency that exempts the state agency fro m the requirements of 13
AS 44.21.600 - 44.21.660 and authorizes the state agency to app rove and monitor all 14
information technology projects undertaken by the state agency. The written 15
agreement must 16
(1) require the state agency to comply with 17
(A) standardized processes adopted under AS 44.21.610(a); 18
(B) standardized processes adopted under AS 44.21.610(a) 19
with a list of variations; or 20
(C) standardized processes adopted by the state agency; 21
(2) require the state agency to comply with 22
(A) standardized processes established under AS 44.21.630; 23
(B) standardized processe s established under AS 44.21.630 24
with a list of variations; or 25
(C) standardized processes adopted by the state agency that 26
include documentation requirement s, project management processe s, and 27
qualifications for project managers; 28
(3) include a plan for the state agency to fulfill obligations with 29
contractors; 30
(4) allow the state agency to designate an employee of the sta te agency 31
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or a contractor as a project manager; and 1
(5) require the state agency to submit periodic reports to the director, 2
including updates to the state a gency's biennial information te chnology plan as 3
provided in AS 44.21.610(c). 4
(b) The director may enter into a written agreement with a sta te agency that 5
exempts an information technology project undertaken by the sta te agency from a 6
requirement of AS 44.21.600 - 44.21.660. The written agreement must detail the 7
requirement that is waived, how the state agency will deviate f rom the requirement, 8
and the purpose of the deviation. 9
(c) If the director decides not to enter into a written agreem ent with a state 10
agency under (a) or (b) of this section, the director shall pro vide in writing to the state 11
agency and the office of management and budget the specific grounds for the decision. 12
The state agency may request that the governor review the direc tor's decision as 13
provided in AS 44.21.620(c). 14
(d) The director shall include a copy of an agreement entered into with a state 15
agency under (a) or (b) of this section in the biennial informa tion technology plan 16
required under AS 44.21.610(c) and shall deliver the agreement to the senate secretary 17
and the chief clerk of the hous e of representatives and notify the legislature that the 18
agreement is available. 19
Sec. 44.21.660. Definitions. In AS 44.21.600 - 44.21.660, 20
(1) "change request" means a fo rmal proposal requesting deviat ions in 21
the project processes, cost, scope, or timeline; 22
(2) "director" means the director of the office of information 23
technology; 24
(3) "information technology project" means an effort of define d and 25
limited duration that implements, effects a change in, or addre sses a risk to processes, 26
services, security, systems, records, data, human resources, or architecture related to 27
technology used for the processi ng and transmission of informat ion; "information 28
technology project" does not incl ude a broadband project manage d b y t h e o f f i c e o f 29
broadband under AS 44.33.910; 30
(4) "major information technology project" means an informatio n 31
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technology project undertaken by a state agency that has a tota l lifetime cost of 1
ownership of $5,000,000 or more or an information technology pr oject jointly 2
undertaken by two or more state agencies; 3
(5) "minor information technology project" means an informatio n 4
technology project undertaken by a single state agency that has a total lifetime cost of 5
ownership of less than $5,000,000; 6
(6) "office" means the office of information technology; 7
(7) "state agency" has the meaning given to "state agencies" i n 8
AS 44.21.390. 9
* Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 10
read: 11
TRANSITION: REGULATIONS. The Department of Administration shall adopt 12
regulations necessary to implement this Act. The regulations ta ke effect under AS 44.62 13
(Administrative Procedure Act), but not before the effective da te of the law implemented by 14
the regulation. 15
* Sec. 3. Section 2 of this Act takes effect immediately under AS 01.10.070(c). 16
* Sec. 4. Except as provided in sec. 3 of this Act, this Act takes effect January 1, 2026. 17