Florida Senate - 2022             CONFERENCE COMMITTEE AMENDMENT
       Bill No. SB 2518, 1st Eng.
       
       
       
       
       
       
                                Ì375046-Î375046                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: AD/CR          .           Floor: AD            
             03/14/2022 12:18 PM       .      03/14/2022 12:49 PM       
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       The Conference Committee on SB 2518, 1st Eng. recommended the
       following:
       
    1         Senate Conference Committee Amendment (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. All functions, records, personnel, contracts,
    7  interagency agreements, and assets of the current Department of
    8  Management Services State Data Center are transferred to the
    9  Northwest Regional Data Center.
   10         Section 2. Subsection (30) of section 282.0041, Florida
   11  Statutes, is amended to read:
   12         282.0041 Definitions.—As used in this chapter, the term:
   13         (30) “Service-level agreement” means a written contract
   14  between the Department of Management Services or a provider of
   15  data center services and a customer entity which specifies the
   16  scope of services provided, service level, the duration of the
   17  agreement, the responsible parties, and service costs. A
   18  service-level agreement is not a rule pursuant to chapter 120.
   19         Section 3. Paragraphs (j) and (q) of subsection (1) and
   20  paragraphs (a) and (b) of subsection (3) of section 282.0051,
   21  Florida Statutes, are amended to read:
   22         282.0051 Department of Management Services; Florida Digital
   23  Service; powers, duties, and functions.—
   24         (1) The Florida Digital Service has been created within the
   25  department to propose innovative solutions that securely
   26  modernize state government, including technology and information
   27  services, to achieve value through digital transformation and
   28  interoperability, and to fully support the cloud-first policy as
   29  specified in s. 282.206. The department, through the Florida
   30  Digital Service, shall have the following powers, duties, and
   31  functions:
   32         (j) Provide operational management and oversight of the
   33  state data center established pursuant to s. 282.201, which
   34  includes:
   35         1. Implementing industry standards and best practices for
   36  the state data center’s facilities, operations, maintenance,
   37  planning, and management processes.
   38         2. Developing and implementing cost-recovery mechanisms
   39  that recover the full direct and indirect cost of services
   40  through charges to applicable customer entities. Such cost
   41  recovery mechanisms must comply with applicable state and
   42  federal regulations concerning distribution and use of funds and
   43  must ensure that, for any fiscal year, no service or customer
   44  entity subsidizes another service or customer entity. The
   45  Florida Digital Service may recommend other payment mechanisms
   46  to the Executive Office of the Governor, the President of the
   47  Senate, and the Speaker of the House of Representatives. Such
   48  mechanism may be implemented only if specifically authorized by
   49  the Legislature.
   50         3. Developing and implementing appropriate operating
   51  guidelines and procedures necessary for the state data center to
   52  perform its duties pursuant to s. 282.201. The guidelines and
   53  procedures must comply with applicable state and federal laws,
   54  regulations, and policies and conform to generally accepted
   55  governmental accounting and auditing standards. The guidelines
   56  and procedures must include, but need not be limited to:
   57         a. Implementing a consolidated administrative support
   58  structure responsible for providing financial management,
   59  procurement, transactions involving real or personal property,
   60  human resources, and operational support.
   61         b. Implementing an annual reconciliation process to ensure
   62  that each customer entity is paying for the full direct and
   63  indirect cost of each service as determined by the customer
   64  entity’s use of each service.
   65         c. Providing rebates that may be credited against future
   66  billings to customer entities when revenues exceed costs.
   67         d. Requiring customer entities to validate that sufficient
   68  funds exist in the appropriate data processing appropriation
   69  category or will be transferred into the appropriate data
   70  processing appropriation category before implementation of a
   71  customer entity’s request for a change in the type or level of
   72  service provided, if such change results in a net increase to
   73  the customer entity’s cost for that fiscal year.
   74         e. By November 15 of each year, providing to the Office of
   75  Policy and Budget in the Executive Office of the Governor and to
   76  the chairs of the legislative appropriations committees the
   77  projected costs of providing data center services for the
   78  following fiscal year.
   79         f. Providing a plan for consideration by the Legislative
   80  Budget Commission if the cost of a service is increased for a
   81  reason other than a customer entity’s request made pursuant to
   82  sub-subparagraph d. Such a plan is required only if the service
   83  cost increase results in a net increase to a customer entity for
   84  that fiscal year.
   85         g. Standardizing and consolidating procurement and
   86  contracting practices.
   87         4.In collaboration with the Department of Law Enforcement,
   88  developing and implementing a process for detecting, reporting,
   89  and responding to cybersecurity incidents, breaches, and
   90  threats.
   91         5. Adopting rules relating to the operation of the state
   92  data center, including, but not limited to, budgeting and
   93  accounting procedures, cost-recovery methodologies, and
   94  operating procedures.
   95         (p)1.(q)1. Establish an information technology policy for
   96  all information technology-related state contracts, including
   97  state term contracts for information technology commodities,
   98  consultant services, and staff augmentation services. The
   99  information technology policy must include:
  100         a. Identification of the information technology product and
  101  service categories to be included in state term contracts.
  102         b. Requirements to be included in solicitations for state
  103  term contracts.
  104         c. Evaluation criteria for the award of information
  105  technology-related state term contracts.
  106         d. The term of each information technology-related state
  107  term contract.
  108         e. The maximum number of vendors authorized on each state
  109  term contract.
  110         f. At a minimum, a requirement that any contract for
  111  information technology commodities or services meet the National
  112  Institute of Standards and Technology Cybersecurity Framework.
  113         g. For an information technology project wherein project
  114  oversight is required pursuant to paragraph (d) or paragraph (m)
  115  (n), a requirement that independent verification and validation
  116  be employed throughout the project life cycle with the primary
  117  objective of independent verification and validation being to
  118  provide an objective assessment of products and processes
  119  throughout the project life cycle. An entity providing
  120  independent verification and validation may not have technical,
  121  managerial, or financial interest in the project and may not
  122  have responsibility for, or participate in, any other aspect of
  123  the project.
  124         2. Evaluate vendor responses for information technology
  125  related state term contract solicitations and invitations to
  126  negotiate.
  127         3. Answer vendor questions on information technology
  128  related state term contract solicitations.
  129         4. Ensure that the information technology policy
  130  established pursuant to subparagraph 1. is included in all
  131  solicitations and contracts that are administratively executed
  132  by the department.
  133         (3) The department, acting through the Florida Digital
  134  Service and from funds appropriated to the Florida Digital
  135  Service, shall:
  136         (a) Create, not later than December 1, 2022 October 1,
  137  2021, and maintain a comprehensive indexed data catalog in
  138  collaboration with the enterprise that lists the data elements
  139  housed within the enterprise and the legacy system or
  140  application in which these data elements are located. The data
  141  catalog must, at a minimum, specifically identify all data that
  142  is restricted from public disclosure based on federal or state
  143  laws and regulations and require that all such information be
  144  protected in accordance with s. 282.318.
  145         (b) Develop and publish, not later than December 1, 2022
  146  October 1, 2021, in collaboration with the enterprise, a data
  147  dictionary for each agency that reflects the nomenclature in the
  148  comprehensive indexed data catalog.
  149         Section 4. Section 282.201, Florida Statutes, is amended to
  150  read:
  151         282.201 State data center.—The state data center is
  152  established within the department. The provision of data center
  153  services must comply with applicable state and federal laws,
  154  regulations, and policies, including all applicable security,
  155  privacy, and auditing requirements. The department shall appoint
  156  a director of the state data center, preferably an individual
  157  who has experience in leading data center facilities and has
  158  expertise in cloud-computing management.
  159         (1) STATE DATA CENTER DUTIES.—The state data center shall:
  160         (a) Offer, develop, and support the services and
  161  applications defined in service-level agreements executed with
  162  its customer entities.
  163         (b) Maintain performance of the state data center by
  164  ensuring proper data backup, data backup recovery, disaster
  165  recovery, and appropriate security, power, cooling, fire
  166  suppression, and capacity.
  167         (c) Develop and implement business continuity and disaster
  168  recovery plans, and annually conduct a live exercise of each
  169  plan.
  170         (d) Enter into a service-level agreement with each customer
  171  entity to provide the required type and level of service or
  172  services. If a customer entity fails to execute an agreement
  173  within 60 days after commencement of a service, the state data
  174  center may cease service. A service-level agreement may not have
  175  a term exceeding 3 years and at a minimum must:
  176         1. Identify the parties and their roles, duties, and
  177  responsibilities under the agreement.
  178         2. State the duration of the contract term and specify the
  179  conditions for renewal.
  180         3. Identify the scope of work.
  181         4. Identify the products or services to be delivered with
  182  sufficient specificity to permit an external financial or
  183  performance audit.
  184         5. Establish the services to be provided, the business
  185  standards that must be met for each service, the cost of each
  186  service by agency application, and the metrics and processes by
  187  which the business standards for each service are to be
  188  objectively measured and reported.
  189         6. Provide a timely billing methodology to recover the
  190  costs of services provided to the customer entity pursuant to s.
  191  215.422.
  192         7. Provide a procedure for modifying the service-level
  193  agreement based on changes in the type, level, and cost of a
  194  service.
  195         8. Include a right-to-audit clause to ensure that the
  196  parties to the agreement have access to records for audit
  197  purposes during the term of the service-level agreement.
  198         9. Provide that a service-level agreement may be terminated
  199  by either party for cause only after giving the other party and
  200  the department notice in writing of the cause for termination
  201  and an opportunity for the other party to resolve the identified
  202  cause within a reasonable period.
  203         10. Provide for mediation of disputes by the Division of
  204  Administrative Hearings pursuant to s. 120.573.
  205         (e) For purposes of chapter 273, be the custodian of
  206  resources and equipment located in and operated, supported, and
  207  managed by the state data center.
  208         (f) Assume administrative access rights to resources and
  209  equipment, including servers, network components, and other
  210  devices, consolidated into the state data center.
  211         1. Upon consolidation, a state agency shall relinquish
  212  administrative rights to consolidated resources and equipment.
  213  State agencies required to comply with federal and state
  214  criminal justice information security rules and policies shall
  215  retain administrative access rights sufficient to comply with
  216  the management control provisions of those rules and policies;
  217  however, the state data center shall have the appropriate type
  218  or level of rights to allow the center to comply with its duties
  219  pursuant to this section. The Department of Law Enforcement
  220  shall serve as the arbiter of disputes pertaining to the
  221  appropriate type and level of administrative access rights
  222  pertaining to the provision of management control in accordance
  223  with the federal criminal justice information guidelines.
  224         2. The state data center shall provide customer entities
  225  with access to applications, servers, network components, and
  226  other devices necessary for entities to perform business
  227  activities and functions, and as defined and documented in a
  228  service-level agreement.
  229         (g) In its procurement process, show preference for cloud
  230  computing solutions that minimize or do not require the
  231  purchasing, financing, or leasing of state data center
  232  infrastructure, and that meet the needs of customer agencies,
  233  that reduce costs, and that meet or exceed the applicable state
  234  and federal laws, regulations, and standards for cybersecurity.
  235         (h) Assist customer entities in transitioning from state
  236  data center services to the Northwest Regional Data Center or
  237  other third-party cloud-computing services procured by a
  238  customer entity or by the Northwest Regional Data Center on
  239  behalf of a customer entity.
  240         (2) USE OF THE STATE DATA CENTER.—The following are exempt
  241  from the use of the state data center: the Department of Law
  242  Enforcement, the Department of the Lottery’s Gaming System,
  243  Systems Design and Development in the Office of Policy and
  244  Budget, the regional traffic management centers as described in
  245  s. 335.14(2) and the Office of Toll Operations of the Department
  246  of Transportation, the State Board of Administration, state
  247  attorneys, public defenders, criminal conflict and civil
  248  regional counsel, capital collateral regional counsel, and the
  249  Florida Housing Finance Corporation.
  250         (3) AGENCY LIMITATIONS.—Unless exempt from the use of the
  251  state data center pursuant to this section or authorized by the
  252  Legislature, a state agency may not:
  253         (a) Create a new agency computing facility or data center,
  254  or expand the capability to support additional computer
  255  equipment in an existing agency computing facility or data
  256  center; or
  257         (b) Terminate services with the state data center without
  258  giving written notice of intent to terminate services 180 days
  259  before such termination.
  260         (4) DEPARTMENT RESPONSIBILITIES.—The department shall
  261  provide operational management and oversight of the state data
  262  center, which includes:
  263         (a)Implementing industry standards and best practices for
  264  the state data center’s facilities, operations, maintenance,
  265  planning, and management processes.
  266         (b)Developing and implementing cost-recovery mechanisms
  267  that recover the full direct and indirect cost of services
  268  through charges to applicable customer entities. Such cost
  269  recovery mechanisms must comply with applicable state and
  270  federal regulations concerning distribution and use of funds and
  271  must ensure that, for any fiscal year, no service or customer
  272  entity subsidizes another service or customer entity. The
  273  department may recommend other payment mechanisms to the
  274  Executive Office of the Governor, the President of the Senate,
  275  and the Speaker of the House of Representatives. Such mechanism
  276  may be implemented only if specifically authorized by the
  277  Legislature.
  278         (c)Developing and implementing appropriate operating
  279  guidelines and procedures necessary for the state data center to
  280  perform its duties pursuant to subsection (1). The guidelines
  281  and procedures must comply with applicable state and federal
  282  laws, regulations, and policies and conform to generally
  283  accepted governmental accounting and auditing standards. The
  284  guidelines and procedures must include, but need not be limited
  285  to:
  286         1.Implementing a consolidated administrative support
  287  structure responsible for providing financial management,
  288  procurement, transactions involving real or personal property,
  289  human resources, and operational support.
  290         2.Implementing an annual reconciliation process to ensure
  291  that each customer entity is paying for the full direct and
  292  indirect cost of each service as determined by the customer
  293  entity’s use of each service.
  294         3.Providing rebates that may be credited against future
  295  billings to customer entities when revenues exceed costs.
  296         4.Requiring customer entities to validate that sufficient
  297  funds exist before implementation of a customer entity’s request
  298  for a change in the type or level of service provided, if such
  299  change results in a net increase to the customer entity’s cost
  300  for that fiscal year.
  301         5.By November 15 of each year, providing to the Office of
  302  Policy and Budget in the Executive Office of the Governor and to
  303  the chairs of the legislative appropriations committees the
  304  projected costs of providing data center services for the
  305  following fiscal year.
  306         6.Providing a plan for consideration by the Legislative
  307  Budget Commission if the cost of a service is increased for a
  308  reason other than a customer entity’s request made pursuant to
  309  subparagraph 4. Such a plan is required only if the service cost
  310  increase results in a net increase to a customer entity for that
  311  fiscal year.
  312         7.Standardizing and consolidating procurement and
  313  contracting practices.
  314         (d)In collaboration with the Department of Law Enforcement
  315  and the Florida Digital Service, developing and implementing a
  316  process for detecting, reporting, and responding to
  317  cybersecurity incidents, breaches, and threats.
  318         (e)Adopting rules relating to the operation of the state
  319  data center, including, but not limited to, budgeting and
  320  accounting procedures, cost-recovery methodologies, and
  321  operating procedures.
  322         (5) NORTHWEST REGIONAL DATA CENTER CONTRACT.—In order for
  323  the department to carry out its duties and responsibilities
  324  relating to the state data center, the secretary of the
  325  department shall contract by July 1, 2022, with the Northwest
  326  Regional Data Center pursuant to s. 287.057(11). The contract
  327  shall provide that the Northwest Regional Data Center will
  328  manage the operations of the state data center and provide data
  329  center services to state agencies.
  330         (a) The department shall provide contract oversight,
  331  including, but not limited to, reviewing invoices provided by
  332  the Northwest Regional Data Center for services provided to
  333  state agency customers.
  334         (b) The department shall approve or request updates to
  335  invoices within 10 business days after receipt. If the
  336  department does not respond to the Northwest Regional Data
  337  Center, the invoice will be approved by default. The Northwest
  338  Regional Data Center must submit approved invoices directly to
  339  state agency customers.
  340         Section 5. Section 1004.649, Florida Statutes, is amended
  341  to read:
  342         1004.649 Northwest Regional Data Center.—
  343         (1) For the purpose of providing data center services to
  344  its state agency customers, the Northwest Regional Data Center
  345  is designated as a state data center for all state agencies and
  346  shall:
  347         (a) Operate under a governance structure that represents
  348  its customers proportionally.
  349         (b) Maintain an appropriate cost-allocation methodology
  350  that accurately bills state agency customers based solely on the
  351  actual direct and indirect costs of the services provided to
  352  state agency customers, and ensures that for any fiscal year,
  353  state agency customers are not subsidizing other customers of
  354  the data center. Such cost-allocation methodology must comply
  355  with applicable state and federal regulations concerning the
  356  distribution and use of state and federal funds.
  357         (c) Enter into a service-level agreement with each state
  358  agency customer to provide services as defined and approved by
  359  the governing board of the center. At a minimum, such service
  360  level agreements must:
  361         1. Identify the parties and their roles, duties, and
  362  responsibilities under the agreement;
  363         2. State the duration of the agreement term, which may not
  364  exceed 3 years, and specify the conditions for up to two
  365  optional 1-year renewals of the agreement before execution of a
  366  new agreement renewal;
  367         3. Identify the scope of work;
  368         4. Establish the services to be provided, the business
  369  standards that must be met for each service, the cost of each
  370  service, and the process by which the business standards for
  371  each service are to be objectively measured and reported;
  372         5. Provide a timely billing methodology for recovering the
  373  cost of services provided pursuant to s. 215.422;
  374         6. Provide a procedure for modifying the service-level
  375  agreement to address any changes in projected costs of service;
  376         7. Include a right-to-audit clause to ensure that the
  377  parties to the agreement have access to records for audit
  378  purposes during the term of the service-level agreement Prohibit
  379  the transfer of computing services between the Northwest
  380  Regional Data Center and the state data center established
  381  pursuant to s. 282.201 without at least 180 days’ written
  382  notification of service cancellation;
  383         8. Identify the products or services to be delivered with
  384  sufficient specificity to permit an external financial or
  385  performance audit; and
  386         9. Provide that the service-level agreement may be
  387  terminated by either party for cause only after giving the other
  388  party notice in writing of the cause for termination and an
  389  opportunity for the other party to resolve the identified cause
  390  within a reasonable period; and
  391         10.Provide state agency customer entities with access to
  392  applications, servers, network components, and other devices
  393  necessary for entities to perform business activities and
  394  functions and as defined and documented in a service-level
  395  agreement.
  396         (d) In its procurement process, show preference for cloud
  397  computing solutions that minimize or do not require the
  398  purchasing or financing of state data center infrastructure,
  399  that meet the needs of state agency customer entities, that
  400  reduce costs, and that meet or exceed the applicable state and
  401  federal laws, regulations, and standards for cybersecurity.
  402         (e)Assist state agency customer entities in transitioning
  403  from state data center services to other third-party cloud
  404  computing services procured by a customer entity or by the
  405  Northwest Regional Data Center on behalf of the customer entity.
  406         (f) Provide to the Board of Governors the total annual
  407  budget by major expenditure category, including, but not limited
  408  to, salaries, expenses, operating capital outlay, contracted
  409  services, or other personnel services by July 30 each fiscal
  410  year.
  411         (g)(e) Provide to each state agency customer its projected
  412  annual cost for providing the agreed-upon data center services
  413  by September 1 each fiscal year.
  414         (h)(f) Provide a plan for consideration by the Legislative
  415  Budget Commission if the governing body of the center approves
  416  the use of a billing rate schedule after the start of the fiscal
  417  year that increases any state agency customer’s costs for that
  418  fiscal year.
  419         (i)Provide data center services that comply with
  420  applicable state and federal laws, regulations, and policies,
  421  including all applicable security, privacy, and auditing
  422  requirements.
  423         (j)Maintain performance of the data center facilities by
  424  ensuring proper data backup, data backup recovery, disaster
  425  recovery, and appropriate security, power, cooling, fire
  426  suppression, and capacity.
  427         (k) Prepare and submit state agency customer invoices to
  428  the Department of Management Services for approval. Upon
  429  approval or by default pursuant to s. 282.201(5), submit
  430  invoices to state agency customers.
  431         (l)As funded in the General Appropriations Act, provide
  432  data center services to state agencies from multiple facilities.
  433         (2)Unless exempt from the requirement to use the state
  434  data center pursuant to s. 282.201(2) or as authorized by the
  435  Legislature, a state agency may not do any of the following:
  436         (a)Terminate services with the Northwest Regional Data
  437  Center without giving written notice of intent to terminate
  438  services 180 days before such termination.
  439         (b)Procure third-party cloud-computing services without
  440  evaluating the cloud-computing services provided by the
  441  Northwest Regional Data Center.
  442         (c) Exceed 30 days from receipt of approved invoices to
  443  remit payment for state data center services provided by the
  444  Northwest Regional Data Center.
  445         (3)(2) The Northwest Regional Data Center’s authority to
  446  provide data center services to its state agency customers may
  447  be terminated if:
  448         (a) The center requests such termination to the Board of
  449  Governors, the Senate President, and the Speaker of the House of
  450  Representatives; or
  451         (b) The center fails to comply with the provisions of this
  452  section.
  453         (4)(3) If such authority is terminated, the center has
  454  shall have 1 year to provide for the transition of its state
  455  agency customers to a qualified alternative cloud-based data
  456  center that meets the enterprise architecture standards
  457  established by the Florida Digital Service the state data center
  458  established pursuant to s. 282.201.
  459         Section 6. Subsection (1) of section 282.00515, Florida
  460  Statutes, is amended to read:
  461         282.00515 Duties of Cabinet agencies.—
  462         (1) The Department of Legal Affairs, the Department of
  463  Financial Services, and the Department of Agriculture and
  464  Consumer Services shall adopt the standards established in s.
  465  282.0051(1)(b), (c), and (r) (s) and (3)(e) or adopt alternative
  466  standards based on best practices and industry standards that
  467  allow for open data interoperability.
  468         Section 7. This act shall take effect July 1, 2022.
  469  
  470  ================= T I T L E  A M E N D M E N T ================
  471  And the title is amended as follows:
  472         Delete everything before the enacting clause
  473  and insert:
  474                        A bill to be entitled                      
  475         An act relating to information technology; providing
  476         that all functions, records, personnel, contracts,
  477         interagency agreements, and assets of the Department
  478         of Management Services State Data Center are
  479         transferred to the Northwest Regional Data Center;
  480         amending s. 282.0041, F.S.; revising the definition of
  481         the term “service-level agreement”; amending s.
  482         282.0051, F.S.; deleting the operational management
  483         and oversight of the state data center from the
  484         powers, duties, and functions of the department,
  485         acting through Florida Digital Service; requiring the
  486         department, acting through the Florida Digital
  487         Service, to create a certain indexed data catalog and
  488         develop and publish a certain data dictionary by a
  489         specified date; amending s. 282.201, F.S.; requiring
  490         the department to assist customer entities
  491         transitioning from other cloud-computing services to
  492         the Northwest Regional Data Center or a cloud
  493         computing service procured by the state data center;
  494         providing responsibilities to the department relating
  495         to the operational management and oversight of the
  496         state data center; requiring the department to adopt
  497         specified rules; requiring the secretary of the
  498         department to contract with the Northwest Regional
  499         Data Center to carry out the department’s duties and
  500         responsibilities by a specified date; providing
  501         contract requirements; requiring the department to
  502         provide contract oversight for the data center;
  503         requiring the department to approve or deny certain
  504         requests within a specified timeframe; providing that
  505         no action on an invoice is an approval by default;
  506         requiring the data center to submit approved invoices
  507         directly to state agency customers; amending s.
  508         1004.649, F.S.; designating the Northwest Regional
  509         Data Center as the state data center; specifying
  510         additional requirements for service-level agreements
  511         with state agency customers; specifying required
  512         duties of the Northwest Regional Data Center;
  513         prohibiting state agencies from engaging in certain
  514         activities, unless otherwise authorized; modifying
  515         provisions governing the transition of state agency
  516         customers to a cloud-based data center; amending s.
  517         282.00515, F.S.; conforming a cross-reference;
  518         providing an effective date.