Technology $$

Establishes an information technology initiative special fund.
Requires state agencies to make budgets and reports accessible
online.  (SD2)

THE SENATE                              S.B. NO.           S.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that according to a recent
 2 report by the Progressive Policy Institute, "The State New
 3 Economy Index", the states with the most innovative, customer
 4 oriented institutions will be the winners in the new economy.
 5 Most state governments, however, continue to function as
 6 hierarchical, rigid models of organizational structure, rather
 7 than as information age government.
 8      The legislature further finds that Hawaii was one of the
 9 pioneers in legislative access through electronic technology, and
10 in recent years the State has focused on wiring Hawaii's public
11 schools to take advantage of educational technology.  In fact,
12 the Progressive Policy Institute ranks Hawaii as number three in
13 the country for technology in schools.  Hawaii must now direct
14 its technology efforts to other areas of government -- moving
15 services online and encouraging innovation and customer-oriented
16 government.
17      The legislature also finds that in the past decade, general
18 funding for information technology has declined substantially,
19 putting Hawaii at a disadvantage in relation to other states that

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 1 have invested in digital infrastructure, and were able to cut the
 2 costs of government as a result.  The motto of many of these
 3 states -- "online, not in line" -- should be adopted by Hawaii's
 4 state government as well.
 5      Rapid changes in technology have created opportunities for
 6 government to become more efficient in its internal operations
 7 while also providing services online to the public.  Better
 8 technology and better use of technology, in fact, can foster a
 9 more innovative and customer-oriented government.  In order for
10 government to take advantage of these rapid developments in
11 technology, however, government agencies and employees must be
12 allowed greater flexibility in how these resources and services
13 are obtained and deployed.
14      The purpose of this Act is to provide state agencies
15 flexibility through the establishment of a special fund to enable
16 state agencies to provide their services or make available
17 information online within an accelerated period and by providing
18 executive departments with procurement flexibility in conducting
19 two year pilot projects for electronic delivery of electronic
20 services.
21      SECTION 2.  Chapter 36, Hawaii Revised Statutes, is amended
22 by adding a new section to be appropriately designated and to
23 read as follows:

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                                     S.B. NO.           S.D. 2

 1      "36-    Information technology initiative special fund.
 2 (a)  There is established in the state treasury the information
 3 technology initiative special fund, into which shall be deposited
 4 moneys appropriated by the legislature.  Other moneys, such as
 5 private funds and federal funds, may also be deposited into the
 6 fund.
 7      (b)  The fund shall be used solely for the purpose of
 8 enabling state agencies to provide their services or make
 9 available information online within an accelerated period,
10 including:
11      (1)  Consulting and other related fees and expenses in the
12           selection, implementation, programming, and subsequent
13           upgrades in an agency computer system; and
14      (2)  The purchase of hardware and related software for an
15           agency computer system.
16      (c)  The information and communication services division,
17 department of accounting and general services; the department of
18 commerce and consumer affairs; and office of information and
19 telecommunication services, department of education, with the
20 approval of the director of finance, shall develop procedures by
21 which state agencies may submit competitive proposals for funding
22 of information technology designed to improve online services,
23 and shall administer the implementation of approved proposals.

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                                     S.B. NO.           S.D. 2

 1      (d)  Moneys in the information technology initiative special
 2 fund shall not revert to the general fund.
 3      (e)  The director of finance shall report to the legislature
 4 twenty days prior to the regular sessions of 2001, 2002, 2003,
 5 2004, and 2005, and include a financial statement of the fund and
 6 the status of projects undertaken pursuant to this section."
 7      SECTION 3.  Executive departments may pursue and conduct
 8 two-year pilot projects related to the electronic delivery of
 9 government services; provided that the executive department
10 pursuing or conducting the project shall report the following to
11 the legislature twenty days before the legislative session
12 following the start of the project:
13      (1)  The government service involved and the results sought;
14      (2)  A description of the technology and/or resources used;
15      (3)  Performance measures;
16      (4)  Government procedures and policies modified or waived;
17      (5)  Projected costs of the project; and
18      (6)  Any projected savings or efficiencies gained from the
19           project.
20      For such pilot projects, any procurement for equipment or
21 services under $100,000 shall be exempt from chapters 103D and
22 103F, Hawaii Revised Statutes.  For purposes of the pilot
23 project, the appropriate state agencies may modify and/or waive

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                                     S.B. NO.           S.D. 2

 1 any statutory requirement, including those required under
 2 chapters 91 and 92, Hawaii Revised Statutes.
 3      SECTION 4.  Section 37-68, Hawaii Revised Statutes, is
 4 amended to read as follows:
 5      "37-68  Responsibilities of agencies.  Under such rules as
 6 may be prescribed by the director of finance with the approval of
 7 the governor:
 8      (1)  Every agency assigned the task of developing programs
 9           and preparing program and financial plans, budgetary
10           requests, and program performance reports shall develop
11           such programs and prepare such plans, requests, and
12           reports and submit the same to the director of finance
13           at such times, on such forms, and in such manner as the
14           director may prescribe[.]; provided that such
15           information shall be compiled in a common format across
16           agencies, and shall be accessible online.  For
17           informational purposes, the University of Hawaii shall
18           submit its program and financial plans, budgetary
19           requests, and program performance reports to the
20           legislature at the same time the university submits
21           them to the director of finance.  Where new programs
22           are being proposed, every agency shall demonstrate that
23           the program:

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                                     S.B. NO.           S.D. 2

 1           (A)  Is an appropriate function of state government;
 2                and, as applicable
 3           (B)  Can be implemented by the public sector as cost-
 4                effectively as the private sector while meeting
 5                the same plans, goals, objectives, standards,
 6                measures of effectiveness, wage, salary,
 7                conditions of employment, and employee benefit
 8                programs of the State;
 9      (2)  Every agency administering state programs and every
10           agency responsible for the formulation of programs and
11           the preparation of program and financial plans,
12           budgetary requests, and program performance reports,
13           shall furnish the department of budget and finance all
14           such documents and information as the department may
15           from time to time require.  Each agency shall make
16           available to the legislature and any member or
17           committee of either house of the legislature, all
18           documents and information as may be requested; [and]
19           provided that such information shall be compiled in a
20           common format across agencies, and shall be accessible
21           online; and provided further that each agency shall
22           make available all reports submitted by the agency,
23           including annual reports and all reports submitted

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 1           pursuant to a resolution or budget proviso, accessible
 2           online; and
 3      (3)  The director of finance or any employee of the
 4           department of budget and finance, when duly authorized,
 5           for the purpose of securing information, shall have
 6           access to and may examine any books, documents, papers,
 7           or records of any agency."
 8      SECTION 5.  Statutory material to be repealed is bracketed.
 9 New statutory material is underscored.
10      SECTION 6.  This Act shall take effect on July 1, 2000;
11 provided that section 2 shall be repealed June 30, 2005.