SECTION 1. The legislature finds that state offices relating to information technology are undergoing significant changes due to the constant development of particular types of information technology. The legislature further finds that certain offices within state government are mandated with various duties relating to the establishment, implementation, and management of the state services and programs that involve information technology and communications services; however, these offices are currently scattered throughout state government. The merging and consolidation of these discrete offices into a single office will increase the efficiency of existing projects and enhance the implementation and management of future programs.

The purpose of this Act is to establish within the department of accounting and general services an office of information technology, which consolidates the functions of the chief information officer, office of information management and technology, and information and communication services division of the department of accounting and general services to improve coordination and delivery of technology services.

SECTION 2. Section 27-43, Hawaii Revised Statutes, is amended to read as follows:

"§27-43 Information technology; [~~chief information officer;~~] office of information technology; information technology steering committee; establishment; responsibilities. (a) There is established within the department of accounting and general services [~~a full-time chief information~~ ~~officer~~] an office of information technology to organize, manage, and oversee statewide information technology governance, including supervision and oversight of [~~the~~] information and communication services [~~division~~] of the department of accounting and general services. [~~The chief information officer shall be appointed by the governor as provided in section 26-34. The chief information officer shall report directly to the governor~~] The office of information technology, led by the chief information officer who shall be appointed by the governor in coordination with the information technology steering committee as provided in subsection (b), may employ persons exempt from chapters 76 and 89 and, in conjunction with the information technology steering committee, shall:

(1) Shall nominate a chief information officer to the governor for appointment;

[~~(1)~~] (2) Develop, implement, and manage statewide information technology governance;

[~~(2)~~] (3) Develop, implement, and manage the state information technology strategic plans;

[~~(3)~~] (4) Develop and implement statewide technology standards;

[~~(4)~~] (5) Report annually to the governor and the legislature on the status and implementation of the state information technology strategic plan;

[~~(5)~~] (6) Perform other necessary or desirable functions to facilitate the intent of this section; and

[~~(6)~~] (7) [~~Employ persons exempt from chapters 76 and 89.~~] Perform general supervision, oversight, and control over the design, acquisition, and utilization of information technology, and telecommunications infrastructure, facilities, and resources within the executive branch, with the exception of the University of Hawaii, the department of education, and the office of Hawaiian affairs; as such, all information technology and telecommunications acquisitions and consulting services procured by the executive branch except the University of Hawaii, department of education, and office of Hawaiian affairs, shall require prior approval by the office of information technology.

(b) There is established an information technology steering committee to assist the [~~chief information officer~~] office of information technology in developing the State's information technology standards and policies, including but not limited to:

(1) Assisting the [~~chief information officer~~] office of information technology in developing and implementing the state information technology strategic plans;

(2) Assessing executive branch departments' progress in meeting the objectives defined in the state information technology strategic plans and identifying best practices for shared or consolidated services;

(3) Ensuring technology projects are selected based on their potential impact and risk to the State, as well as their strategic value;

(4) Ensuring that executive branch departments maintain sufficient tools to assess the value and benefits of technology initiatives;

(5) Assisting the [~~chief information officer~~] office of information technology in developing state information technology standards and policies; and

(6) Clarifying the roles, responsibilities, and authority of the information and communication services division, specifically as it relates to its statewide duties.

The information technology steering committee shall consist of eleven members, with four members to be appointed by the senate president, four members to be appointed by the speaker of the house of representatives, one member to be appointed by the chief justice, and one member to be appointed by the governor, and shall include representatives from executive branch departments, including large user agencies such as the department of education and the University of Hawaii; the judiciary; the legislature; and private individuals. The chief information officer shall serve as the chair of the committee and shall ensure that the committee is evaluated periodically.

(c) There is established within the department of accounting and general services a special fund to be known as the shared services technology special fund to be administered and expended by the [~~chief information officer~~] office of information technology for the purposes of this subsection. [~~Three~~] 3 per cent of the receipts collected from special funds pursuant to section 36-27 shall be deposited into the shared services technology special fund. Any law to the contrary notwithstanding, the moneys in the fund shall be used to fund the operations of the [~~chief information officer~~] office of information technology and the information technology steering committee, including the employment and training of staff and any other activities deemed necessary by the [~~chief information officer~~] office of information technology to carry out the purposes of this section.

(d) The chief information officer and the comptroller may raise funds to defray administrative costs and may accept donations of money and personal property on behalf of the information technology steering committee; provided that all donations accepted from private sources shall be expended in the manner prescribed by the contributor, and all moneys received shall be deposited into the information technology trust account. The [~~chief information officer~~] office of information technology may also directly receive donated personal services and personal property for which funding is not required.

(e) The [~~chief information officer~~] office of information technology shall submit an annual report to the governor and the legislature no later than twenty days prior to the convening of each regular session of the legislature on the activities and programs under the authority of the [~~chief information officer~~] office of information technology and the information technology steering committee, and the expenditures of all moneys received from all sources and deposited into the information technology trust account and the shared services technology special fund."

SECTION 3. Section 27-43.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§27-43.5[]] Additional duties of the [~~chief information officer~~] office of information technology relating to security of government information. (a) The [~~chief information officer~~] office of information technology shall provide for periodic security audits of all executive branch departments and agencies regarding the protection of government information and data communication infrastructure.

(b) Security audits may include on-site audits as well as reviews of all written security procedures and documented practices. The [~~chief information officer~~] office of information technology may contract with a private firm or firms that specialize in conducting security audits; provided that information protected from disclosure by federal or state law, including confidential tax information, shall not be disclosed. All executive branch departments, agencies, boards, or commissions subject to the security audits authorized by this section shall fully cooperate with the entity designated to perform the audit. The [~~chief information officer~~] office of information technology may direct specific remedial actions to mitigate findings of insufficient administrative, technical, and physical controls necessary to protect state government information or data communication infrastructure.

(c) This section shall not infringe upon responsibilities assigned to the comptroller or the auditor by any state or federal law."

SECTION 4. All rights, powers, functions, and duties of the chief information officer, office of information management and technology, and information and communication services division of the department of accounting and general services are transferred to the office of information technology.

All employees who occupy civil service positions and whose functions are transferred to the office of information technology by this Act shall retain their civil service status, whether permanent or temporary. Employees shall be transferred without loss of salary, seniority (except as prescribed by applicable collective bargaining agreements), retention points, prior service credit, any vacation and sick leave credits previously earned, and other rights, benefits, and privileges, in accordance with state personnel laws and this Act; provided that the employees possess the minimum qualifications and public employment requirements for the class or position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable civil service and compensation laws.

Any employee who, prior to this Act, is exempt from civil service and is transferred as a consequence of this Act may retain the employee's exempt status, but shall not be appointed to a civil service position as a consequence of this Act. An exempt employee who is transferred by this Act shall not suffer any loss of prior service credit, vacation or sick leave credits previously earned, or other employee benefits or privileges as a consequence of this Act; provided that the employees possess legal and public employment requirements for the position to which transferred or appointed, as applicable; provided further that subsequent changes in status may be made pursuant to applicable employment and compensation laws. The comptroller may prescribe the duties and qualifications of these employees and fix their salaries without regard to chapter 76, Hawaii Revised Statutes.

SECTION 5. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the chief information officer, office of information management and technology, and information and communications services division of the department of accounting and general services relating to the functions transferred to the office of information technology shall be transferred with the functions to which they relate.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	1000
TWENTY-EIGHTH LEGISLATURE, 2015
STATE OF HAWAII