Senate Bill sb1494

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    Florida Senate - 2005                                  SB 1494

    By Senator Argenziano





    3-1140-05

  1                      A bill to be entitled

  2         An act relating to information technology

  3         management; providing legislative intent that

  4         each state agency use a governance process and

  5         structure for managing its information

  6         technology operations and investments in order

  7         to ensure alignment with the business needs and

  8         policy requirements of the agency; providing

  9         definitions; providing a governance process for

10         information technology which includes

11         management of the agency's information

12         technology portfolio along with project

13         management; specifying the purpose of

14         information technology portfolio management;

15         requiring each agency to submit its approved

16         information technology portfolio as part of its

17         final legislative budget request; requiring

18         that agencies implement and administer a

19         project management methodology that complies

20         with rules adopted by the State Technology

21         Office; providing requirements for project

22         plans; requiring each agency to incorporate the

23         operational work plans and project status

24         reports based on the standards published by the

25         State Technology Office and the Technology

26         Review Workgroup; requiring that each agency

27         implement an operational governance structure

28         that establishes an agency information

29         technology investment management board;

30         providing for membership of the board;

31         providing for meetings and staffing of the

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    Florida Senate - 2005                                  SB 1494
    3-1140-05




 1         board; specifying the responsibilities of the

 2         agency information technology investment

 3         management boards; providing an effective date.

 4  

 5  Be It Enacted by the Legislature of the State of Florida:

 6  

 7         Section 1.  Information technology management.--

 8         (1)  LEGISLATIVE INTENT.--It is the intent of the

 9  Legislature that each state agency use a governance process

10  and structure for the management of information technology in

11  order to plan, manage, and implement its information

12  technology operations and investments and to ensure that the

13  operations and investments are aligned with the business needs

14  and policy requirements of the agency.

15         (2)  DEFINITIONS.--As used in this section, the term:

16         (a)  "Agency information technology investment

17  management board" or "board" means a board, chaired by the

18  agency head and comprised of executive managers of the agency,

19  which is responsible for establishing a systematic,

20  data-driven means for selecting and managing information

21  technology investments for the agency.

22         (b)  "Information technology investment" means a

23  specific piece of hardware, infrastructure peripheral, or

24  software application developed by an agency or acquired from

25  one or more vendors, or any combination of these, which serves

26  current and future needs of the agency and is required to

27  provide information technology services as identified in the

28  agency's information technology service catalog and approved

29  information technology projects.

30         (c)  "Information technology portfolio management"

31  means the process of using the information technology services

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    Florida Senate - 2005                                  SB 1494
    3-1140-05




 1  catalog to plan, manage, and operate information technology

 2  services and the project management methodology that is used

 3  to plan, manage, and implement information technology projects

 4  in order to ensure alignment of information technology

 5  investments with agency business needs. The term includes the

 6  analysis and proper mitigation of information technology

 7  investment risks.

 8         (d)  "Information technology services catalog" means a

 9  written statement describing each information technology

10  service that an agency invests in, manages, and uses to enable

11  day-to-day business processes. The catalog is comprised of the

12  definitions and descriptions of strategic and nonstrategic

13  information technology services.

14         (e)  "Nonstrategic information technology service"

15  means a utility-type information technology service, as

16  defined in the legislative budget request instructions

17  provided for in section 216.023, Florida Statutes, which is

18  common among several agencies and which facilitates the

19  day-to-day agency activities.

20         (f)  "Project management" means a set of disciplines

21  required for planning, organizing, managing, implementing, and

22  controlling organizational and fiscal resources in order to

23  complete specific project goals and objectives.

24         (g)  "Service level agreement" means a written

25  agreement between a service provider and the agency which

26  describes each service to be provided and documents the

27  required service objectives and service levels for a service.

28  Service providers include external providers, internal

29  providers, and other agency providers.

30         (h)  "Strategic information technology service" means a

31  service that directly helps the agency to fulfill its specific

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    Florida Senate - 2005                                  SB 1494
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 1  statutory or constitutional responsibilities and policy

 2  objectives and that is associated with the agency's primary or

 3  core business functions. The process for identifying an

 4  agency's strategic information technology services shall be

 5  prescribed in the legislative budget request instructions

 6  provided for in section 216.023, Florida Statutes.

 7         (3)  INFORMATION TECHNOLOGY GOVERNANCE PROCESS.--For

 8  the purpose of establishing an information technology

 9  management process that integrates the agency's fiscal and

10  programmatic activities, each agency shall implement

11  information technology portfolio management and project

12  management.

13         (a)  The information technology portfolio management

14  process, as defined in this section, shall be used as the

15  primary tool to support the information technology investment

16  decisions of each agency. The purposes of information

17  technology portfolio management are to:

18         1.  Link information technology investments in the

19  agency's approved information technology services catalog to

20  agency functions, plans, goals, and objectives that justify

21  information technology investments on the basis of validated

22  business cases.

23         2.  Establish and implement formal risk assessment and

24  risk mitigation associated with the implementation of

25  information technology projects and investments.

26         3.  Identify information technology projects that span

27  multiple programs or multiple agencies in order to leverage

28  resources.

29         4.  Analyze the effect of proposed new information

30  technology investments on existing infrastructure and business

31  functions.

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 1         (b)  The information technology portfolio shall

 2  include, but need not be limited to:

 3         1.  The agency's information technology services

 4  catalog as defined in this section.

 5         2.  A summary statement of the agency's mission, goals,

 6  and objectives for information technology which are supported

 7  through the agency's information technology portfolio.

 8         3.  Identification of projects and resources required

 9  to meet the objectives of the portfolio.

10         4.  Estimated schedules and funding required to

11  implement approved information technology projects and to

12  provide information technology services identified in the

13  information technology services catalog.

14         (c)  The agency shall submit its approved information

15  technology portfolio as part of its final legislative budget

16  request in the manner and form prescribed in the legislative

17  budget request instructions as provided in section 216.023,

18  Florida Statutes.

19         (d)  The agency shall implement and administer a

20  project management methodology that complies with project

21  management rules adopted by the State Technology Office and

22  that prescribes the day-to-day planning, organizing, managing,

23  implementing, and controlling of information technology

24  project activities, resources, and finances to ensure that the

25  agency's information technology project is completed on time

26  and within its approved budget and project scope. At a

27  minimum, each project plan that is developed for approved

28  information technology projects must include the following

29  components:

30         1.  A project charter that contains a narrative

31  description of the project's major business objectives to be

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    Florida Senate - 2005                                  SB 1494
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 1  obtained, major deliverables to be produced, major milestones

 2  or activities to be completed, and any significant project

 3  assumptions or constraints.

 4         2.  A project work breakdown structure that provides a

 5  summary-level description of all tasks required to complete

 6  the project.

 7         3.  A project schedule that describes the planned

 8  project schedule and specifies major milestones, deliverables,

 9  tasks, and activities.

10         4.  A project spending plan that describes all

11  estimated expenditures and baseline costs expected to be

12  incurred by the project during each fiscal year.

13         5.  A project organization that describes the project's

14  organizational structure and the major roles and

15  responsibilities of project team members, project sponsors,

16  and the project steering committee.

17         6.  A project risk-management plan that describes the

18  process and procedures used to identify and manage the

19  project's risks.

20         7.  A project change-management plan that describes the

21  processes and procedures used to manage the change

22  requirements of the project.

23         8.  A project recovery plan that, at a minimum, directs

24  the project team to:

25         a.  Develop a comprehensive list of issues and problems

26  requiring resolution;

27         b.  Prepare a list that identifies all required

28  corrective actions necessary to successfully recover the

29  project; and

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31  

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    Florida Senate - 2005                                  SB 1494
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 1         c.  Prepare a fully resourced schedule that identifies

 2  major milestones and deliverables needed to complete the

 3  project's recovery and successfully complete the project.

 4  

 5  Based upon analysis of the project recovery plan as provided

 6  for in this subsection and all relevant project status

 7  reports, if the State Technology Office and the Technology

 8  Review Workgroup jointly determine that an information

 9  technology project cannot be recovered, the agency shall

10  implement steps needed to terminate the project. Written

11  notice of the agency's intent to terminate shall be provided

12  to the Director of the Office of Policy and Budget and the

13  chairs of the legislative appropriations committees.

14         (e)  The agency's project planning and management

15  methodology shall incorporate the use of operational work

16  plans and project status reports based upon the standards

17  jointly published by the State Technology Office and the

18  Technology Review Workgroup on an annual basis. Unless the

19  schedule is otherwise provided for in the General

20  Appropriations Act, the agency shall submit operational work

21  plans on a quarterly basis and project status reports on a

22  monthly basis to the chairs of the legislative appropriations

23  committees, the Director of the Office of Policy and Budget,

24  the State Technology Office, and the Technology Review

25  Workgroup.

26         (4)  INFORMATION TECHNOLOGY GOVERNANCE STRUCTURE.--For

27  the purpose of planning, managing, and implementing

28  information technology investments and operations, each agency

29  shall implement an operational governance structure that

30  establishes an agency information technology investment

31  management board as defined in paragraph (2)(a).

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    Florida Senate - 2005                                  SB 1494
    3-1140-05




 1         (a)  The agency information technology investment

 2  management board shall be comprised of executive managers with

 3  board representation from across the agency's program areas

 4  who shall be appointed by the agency head. The board shall

 5  meet at least quarterly and shall be staffed by the

 6  information technology office of the agency with the agency

 7  chief information officer serving as a nonvoting member of the

 8  board.

 9         (b)  The board shall have the following

10  responsibilities:

11         1.  Adopt and implement an organizational charter that

12  clearly defines and describes major objectives and activities

13  that set the operational procedures of the board as well as

14  responsibilities of the members of the board.

15         2.  Develop, define, manage, and implement the

16  information technology services catalog as defined in

17  paragraph (2)(d) and as required pursuant to section 216.023,

18  Florida Statutes.

19         3.  Identify and define all required components for

20  service level agreements, which must include, but need not be

21  limited to:

22         a.  A description of all services to be provided under

23  the terms of the agreement.

24         b.  A clear and unambiguous description of the agency

25  service requirements and performance objectives for each

26  service described within the service level agreement.

27         c.  A listing of specific responsibilities of the

28  agency and the service provider.

29         d.  A detailed payment schedule that specifies the

30  amount and timing of required payments for all services to be

31  

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    Florida Senate - 2005                                  SB 1494
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 1  rendered by the service provider under the terms and

 2  conditions of the agreement.

 3         4.  Develop and implement standards and processes for

 4  information technology investments, resource prioritization,

 5  and allocation decisions through the implementation of

 6  approved processes established by the agency information

 7  technology investment management board. These processes, to

 8  the greatest extent possible, should make use of the

 9  information technology planning artifacts required in the

10  legislative budget request instructions as defined in section

11  216.023, Florida Statutes.

12         5.  Approve and submit the department's information

13  technology portfolio to the chairs of the legislative

14  appropriations committees.

15         6.  Approve or disapprove information technology

16  project initiation requests.

17         7.  Develop and implement standards for regular reports

18  describing project status, progress made to date, major issues

19  requiring resolution, and significant risks that must be

20  mitigated.

21         Section 2.  This act shall take effect July 1, 2005.

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    Florida Senate - 2005                                  SB 1494
    3-1140-05




 1            *****************************************

 2                          SENATE SUMMARY

 3    Requires that each state agency use a governance process
      and structure for managing its information technology
 4    operations and investments in order to ensure alignment
      with the business needs and policy requirements of the
 5    agency. Requires state agencies to develop an information
      technology portfolio and submit the portfolio as part of
 6    its final legislative budget request. Requires that
      agencies implement and administer a project management
 7    methodology that complies with rules adopted by the State
      Technology Office. Requires that agencies incorporate
 8    their operational work plans and project status reports
      based on the standards published by the State Technology
 9    Office and the Technology Review Workgroup. Requires that
      each agency establish an agency information technology
10    investment management board and specifies duties of the
      board. (See bill for details.)
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