NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

HAFC

 

DATE TYPED:

3/04/03

 

HB

67/HAFCS

 

SHORT TITLE:

Amend Information Technology Management Act

 

SB

 

 

 

ANALYST:

Paz

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

See Narrative

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

Duplicates SB 244/SJCS, Amend Info Technology Management Act

 

SOURCES OF INFORMATION

 

LFC Files

 

Responses Received From

 

341 Department of Finance and Administration

350 General Services Department

361 Information Technology Management Office

521 Energy, Minerals and Natural Resources

667 Department of Environment

630 Human Services Department

690 Children, Youth & Families Department

665 Department of Health

790 Department of Public Safety

770 Corrections Department

924 State Department of Public Education

950 Commission on Higher Education

 

SUMMARY

 

     Synopsis of Bill

 

House Appropriation and Finance Committee Substitute for House Bill 67 amends the Information Technology Management Act (Section 15-1C NMSA 1978) as follows:

       Changes the information technology commission membership from fourteen to fifteen by changing members appointed by the governor from four to five, changes local government members from advisory to voting status, changes the CIO from voting status to advisory, and adds two staff from the Legislative Finance Committee and Legislative Council Service as advisory members.

       Clarifies the role of the CIO to strengthen the CIO’s oversight and approval authority over all information technology.   Changes the name of the agency to the Office of the Chief Information Officer. 

       Improves upon the current quality assurance process, whereby the commission certifies information technology projects and releases funding in phases, regardless of funding source.    A penalty provision of misdemeanor is specified for a person intentionally violating the commission’s certification process.  This provision parallels the procurement code.  Clarifies that education, judicial and legislative agencies are encouraged to participate in the IT management act, but are not required.

       Sunset review of this agency is extended from July 1, 2005 to July 1, 2009.

 

FISCAL IMPLICATIONS

The bill does not include an appropriation.  However, recurring costs will be absorbed within the Information Technology Management Office base budget.

 

ADMINISTRATIVE IMPACT

 

The information technology commission must adopt rules for certifying significant information technology projects by phases.  The office of the CIO will propose rules to the commission and provide consulting services to agencies related to project management and the commission certification process.  Agencies remain responsible for implementing effective project management practices that focus on identifying and mitigating risks early on in the project cycle, including certification requirements adopted by the commission.

 

TECHNICAL ISSUES

 

Stakeholders, including the commission, the state CIO, agency information technology management, the governor’s office and the legislative information technology oversight committee held discussions and communications beginning in October 2002 to identify technical issues with the current oversight process.   Technical issues focus on identifying appropriate locations and levels of control to enhance the current oversight process of large information technology projects without disabling agencies from accomplishing their goals and objectives.

 

EDP/njw