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H.B. 120

             1     

INFORMATION TECHNOLOGY COST-SAVINGS INCENTIVE

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lee B. Perry

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Utah Technology Governance Act to, under certain circumstances,
             10      allow an executive branch agency to acquire information technology and related
             11      equipment without going through, or acquiring the information technology or
             12      equipment from, the Department of Technology Services, and creates a financial
             13      incentive for an agency that makes this type of acquisition if it results in a cost savings.
             14      Highlighted Provisions:
             15          This bill:
             16          .    defines terms;
             17          .    allows an executive branch agency to acquire information technology and related
             18      equipment without going through, or acquiring the information technology or
             19      equipment from, the Department of Technology Services, if the executive branch
             20      agency demonstrates that it can acquire the information technology or equipment:
             21              .    at a level of quality that is at least as high as the level of quality that can be
             22      obtained from or through the department; and
             23              .    at a cost that is lower than the cost available from or through the department;
             24          .    permits an executive branch agency that realizes a cost savings by acquiring
             25      information technology or related equipment in the manner described above to
             26      apply for and, upon approval, use the cost-savings realized, in subsequent fiscal
             27      years, for another specified purpose that is in the interest of the executive branch


             28      agency, the state, and the public;
             29          .    modifies other provisions of the Utah Technology Governance Act to avoid
             30      conflicts with the provisions of this bill; and
             31          .    makes technical changes.
             32      Money Appropriated in this Bill:
             33          None
             34      Other Special Clauses:
             35          None
             36      Utah Code Sections Affected:
             37      AMENDS:
             38          63F-1-104, as last amended by Laws of Utah 2011, Chapter 270
             39          63F-1-203, as last amended by Laws of Utah 2011, Chapter 270
             40          63F-1-204, as last amended by Laws of Utah 2008, Chapter 382
             41          63F-1-205, as last amended by Laws of Utah 2011, Chapter 376
             42          63F-1-206, as last amended by Laws of Utah 2008, Chapter 382
             43          63F-1-303, as enacted by Laws of Utah 2005, Chapter 169
             44          63F-1-404, as last amended by Laws of Utah 2011, Chapter 270
             45          63F-1-504, as last amended by Laws of Utah 2011, Chapter 270
             46      ENACTS:
             47          63F-1-901, Utah Code Annotated 1953
             48          63F-1-902, Utah Code Annotated 1953
             49          63F-1-903, Utah Code Annotated 1953
             50          63F-1-904, Utah Code Annotated 1953
             51     
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 63F-1-104 is amended to read:
             54           63F-1-104. Purposes.
             55          The department shall:
             56          (1) lead state executive branch agency efforts to reengineer the state's information
             57      technology architecture with the goal of coordinating central and individual agency information
             58      technology in a manner that:


             59          (a) ensures compliance with the executive branch agency strategic plan; and
             60          (b) ensures that cost-effective, efficient information and communication systems and
             61      resources are being used by agencies to:
             62          (i) reduce data, hardware, and software redundancy;
             63          (ii) improve system interoperability and data accessibility between agencies; and
             64          (iii) meet the agency's and user's business and service needs;
             65          (2) (a) coordinate an executive branch strategic plan for all agencies;
             66          (b) identify best practices from agencies and other public and private sector entities;
             67      and
             68          (c) develop and implement processes to replicate information technology best practices
             69      and standards throughout the executive branch;
             70          (3) oversee the expanded use and implementation of project and contract management
             71      principles as they relate to information technology projects within the executive branch;
             72          (4) except as provided in Section 63F-1-903 , serve as general contractor between the
             73      state's information technology users and private sector providers of information technology
             74      products and services;
             75          (5) work toward building stronger partnering relationships with providers;
             76          (6) develop service level agreements with executive branch departments and agencies
             77      to ensure quality products and services are delivered on schedule and within budget;
             78          (7) develop standards for application development including a standard methodology
             79      and cost-benefit analysis that all agencies shall utilize for application development activities;
             80          (8) determine and implement statewide efforts to standardize data elements and
             81      determine data ownership assignments among executive branch agencies;
             82          (9) develop systems and methodologies to review, evaluate, and prioritize existing
             83      information technology projects within the executive branch and report to the governor and the
             84      Public Utilities and Technology Interim Committee on a semiannual basis regarding the status
             85      of information technology projects; [and]
             86          (10) assist the Governor's Office of Planning and Budget with the development of
             87      information technology budgets for agencies[.]; and
             88          (11) fulfill the duties described in this section in a manner that does not interfere with
             89      an executive branch agency's rights under Section 63F-1-903 .


             90          Section 2. Section 63F-1-203 is amended to read:
             91           63F-1-203. Executive branch information technology strategic plan.
             92          (1) In accordance with this section, the chief information officer shall prepare an
             93      executive branch information technology strategic plan:
             94          (a) that complies with this chapter; and
             95          (b) which shall include:
             96          (i) a strategic plan for the:
             97          (A) interchange of information related to information technology between executive
             98      branch agencies;
             99          (B) coordination between executive branch agencies in the development and
             100      maintenance of information technology and information systems, including the coordination of
             101      agency information technology plans described in Section 63F-1-204 ; and
             102          (C) protection of the privacy of individuals who use state information technology or
             103      information systems;
             104          (ii) priorities for the development and implementation of information technology or
             105      information systems including priorities determined on the basis of:
             106          (A) the importance of the information technology or information system; and
             107          (B) the time sequencing of the information technology or information system; and
             108          (iii) maximizing the use of existing state information technology resources.
             109          (2) (a) In the development of the executive branch strategic plan, the chief information
             110      officer shall consult with all cabinet level officials and the advisory board created in Section
             111      63F-1-202 .
             112          (b) The executive branch strategic plan may not prohibit or interfere with an executive
             113      branch agency's rights under Section 63F-1-903 .
             114          (3) (a) Unless withdrawn by the chief information officer or the governor in accordance
             115      with Subsection (3)(b), the executive branch strategic plan takes effect 30 days after the day on
             116      which the executive branch strategic plan is submitted to:
             117          (i) the governor; and
             118          (ii) the Public Utilities and Technology Interim Committee.
             119          (b) The chief information officer or the governor may withdraw the executive branch
             120      strategic plan submitted under Subsection (3)(a) if the governor or chief information officer


             121      determines that the executive branch strategic plan:
             122          (i) should be modified; or
             123          (ii) for any other reason should not take effect.
             124          (c) The Public Utilities and Technology Interim Committee may make
             125      recommendations to the governor and to the chief information officer if the commission
             126      determines that the executive branch strategic plan should be modified or for any other reason
             127      should not take effect.
             128          (d) Modifications adopted by the chief information officer shall be resubmitted to the
             129      governor and the Public Utilities and Technology Interim Committee for their review or
             130      approval as provided in Subsections (3)(a) and (b).
             131          (4) The executive branch strategic plan is to be implemented by executive branch
             132      agencies through each executive branch agency adopting an agency information technology
             133      plan in accordance with Section 63F-1-204 .
             134          Section 3. Section 63F-1-204 is amended to read:
             135           63F-1-204. Agency information technology plans.
             136          (1) (a) By July 1 of each year, each executive branch agency shall submit an agency
             137      information technology plan to the chief information officer at the department level, unless the
             138      governor or the chief information officer request an information technology plan be submitted
             139      by a subunit of a department, or by an executive branch agency other than a department.
             140          (b) [The] Subject to Subsection (7), the information technology plans required by this
             141      section shall be in the form and level of detail required by the chief information officer, by
             142      administrative rule adopted in accordance with Section 63F-1-206 , and shall include, at least:
             143          (i) the information technology objectives of the agency;
             144          (ii) any performance measures used by the agency for implementing the agency's
             145      information technology objectives;
             146          (iii) any planned expenditures related to information technology;
             147          (iv) the agency's need for appropriations for information technology;
             148          (v) how the agency's development of information technology coordinates with other
             149      state and local governmental entities;
             150          (vi) any efforts the agency has taken to develop public and private partnerships to
             151      accomplish the information technology objectives of the agency; and


             152          (vii) the efforts the executive branch agency has taken to conduct transactions
             153      electronically in compliance with Section 46-4-503 .
             154          (2) (a) Except as provided in Subsection (2)(b), an agency information technology plan
             155      described in Subsection (1) shall comply with the executive branch strategic plan established in
             156      accordance with Section 63F-1-203 .
             157          (b) If the executive branch agency submitting the agency information technology plan
             158      justifies the need to depart from the executive branch strategic plan, an agency information
             159      technology plan may depart from the executive branch strategic plan to the extent approved by
             160      the chief information officer.
             161          (3) (a) On receipt of a state agency information technology plan, the chief information
             162      officer shall forward a complete copy of the agency information technology plan to the
             163      Division of Enterprise Technology created in Section 63F-1-401 and the Division of Integrated
             164      Technology created in Section 63F-1-501 .
             165          (b) The divisions shall provide the chief information officer a written analysis of each
             166      agency plan submitted in accordance with Sections 63F-1-404 and 63F-1-504 .
             167          (4) (a) The chief information officer shall review each agency plan to determine:
             168          (i) (A) whether the agency plan complies with the executive branch strategic plan and
             169      state information architecture; or
             170          (B) to the extent that the agency plan does not comply with the executive branch
             171      strategic plan or state information architecture, whether the executive branch entity is justified
             172      in departing from the executive branch strategic plan, or state information architecture; and
             173          (ii) whether the agency plan meets the information technology and other needs of:
             174          (A) the executive branch agency submitting the plan; and
             175          (B) the state.
             176          (b) In conducting the review required by Subsection (4)(a), the chief information
             177      officer shall consider the analysis submitted by the divisions under Subsection (3).
             178          (5) After the chief information officer conducts the review described in Subsection (4)
             179      of an agency information technology plan, the chief information officer may:
             180          (a) approve the agency information technology plan;
             181          (b) disapprove the agency information technology plan; or
             182          (c) recommend modifications to the agency information technology plan.


             183          (6) An executive branch agency or the department may not submit a request for
             184      appropriation related to information technology or an information technology system to the
             185      governor in accordance with Section 63J-1-201 until after the executive branch agency's
             186      information technology plan is approved by the chief information officer.
             187          (7) The chief information officer may not:
             188          (a) require that a plan submitted by an executive branch agency disclose whether the
             189      executive branch agency is planning to obtain information technology or equipment from or
             190      through a source other than the department; or
             191          (b) make approval of a plan, or any portion of a plan, subject to an executive branch
             192      agency not exercising its rights under Section 63F-1-903 .
             193          Section 4. Section 63F-1-205 is amended to read:
             194           63F-1-205. Approval of acquisitions of information technology.
             195          (1) (a) Except as provided in Title 63M, Chapter 1, Part 26, Government Procurement
             196      Private Proposal Program, in accordance with Subsection (2), the chief information officer
             197      shall approve the acquisition by an executive branch agency of:
             198          (i) information technology equipment;
             199          (ii) telecommunications equipment;
             200          (iii) software;
             201          (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
             202          (v) data acquisition.
             203          (b) The chief information officer may negotiate the purchase, lease, or rental of private
             204      or public information technology or telecommunication services or facilities in accordance with
             205      this section.
             206          (c) Where practical, efficient, and economically beneficial, the chief information
             207      officer shall use existing private and public information technology or telecommunication
             208      resources.
             209          (d) Notwithstanding another provision of this section, an acquisition authorized by this
             210      section shall comply with rules made by the State Procurement Policy Board under Title 63G,
             211      Chapter 6, Utah Procurement Code.
             212          (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
             213      that exceeds the value established by the chief information officer by rule in accordance with


             214      Section 63F-1-206 , the chief information officer shall:
             215          (a) conduct an analysis of the needs of executive branch agencies and subscribers of
             216      services and the ability of the proposed information technology or telecommunications services
             217      or supplies to meet those needs; and
             218          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             219      provide in writing to the chief procurement officer in the Division of Purchasing and General
             220      Services that:
             221          (i) the analysis required in Subsection (2)(a) was completed; and
             222          (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             223      services, products, or supplies is practical, efficient, and economically beneficial to the state
             224      and the executive branch agency or subscriber of services.
             225          (3) In approving an acquisition described in Subsections (1) and (2), the chief
             226      information officer shall:
             227          (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
             228      under which an agency must obtain approval from the chief information officer before
             229      acquiring the items listed in Subsections (1) and (2);
             230          (b) for those acquisitions requiring approval, determine whether the acquisition is in
             231      compliance with:
             232          (i) the executive branch strategic plan;
             233          (ii) the applicable agency information technology plan;
             234          (iii) the budget for the executive branch agency or department as adopted by the
             235      Legislature; and
             236          (iv) Title 63G, Chapter 6, Utah Procurement Code; and
             237          (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
             238      two or more executive branch agencies if it is in the best interests of the state.
             239          (4) (a) Each executive branch agency shall provide the chief information officer with
             240      complete access to all information technology records, documents, and reports:
             241          (i) at the request of the chief information officer; and
             242          (ii) related to the executive branch agency's acquisition of any item listed in Subsection
             243      (1).
             244          (b) Beginning July 1, 2006 and in accordance with administrative rules established by


             245      the department under Section 63F-1-206 , no new technology projects may be initiated by an
             246      executive branch agency or the department unless the technology project is described in a
             247      formal project plan and the business case analysis has been approved by the chief information
             248      officer and agency head. The project plan and business case analysis required by this
             249      Subsection (4) shall be in the form required by the chief information officer, and shall include:
             250          (i) a statement of work to be done and existing work to be modified or displaced;
             251          (ii) total cost of system development and conversion effort, including system analysis
             252      and programming costs, establishment of master files, testing, documentation, special
             253      equipment cost and all other costs, including overhead;
             254          (iii) savings or added operating costs that will result after conversion;
             255          (iv) other advantages or reasons that justify the work;
             256          (v) source of funding of the work, including ongoing costs;
             257          (vi) consistency with budget submissions and planning components of budgets; and
             258          (vii) whether the work is within the scope of projects or initiatives envisioned when the
             259      current fiscal year budget was approved.
             260          (5) (a) The chief information officer and the Division of Purchasing and General
             261      Services shall work cooperatively to establish procedures under which the chief information
             262      officer shall monitor and approve acquisitions as provided in this section.
             263          (b) The procedures established under this section shall include at least the written
             264      certification required by Subsection 63G-6-204 (8).
             265          (6) This section does not apply to acquisitions under Section 63F-1-903 .
             266          Section 5. Section 63F-1-206 is amended to read:
             267           63F-1-206. Rulemaking -- Policies.
             268          (1) (a) Except as provided in Subsection (2), in accordance with Title 63G, Chapter 3,
             269      Utah Administrative Rulemaking Act, the chief information officer shall make rules that:
             270          (i) provide standards that impose requirements on executive branch agencies that:
             271          (A) are related to the security of the statewide area network; and
             272          (B) establish standards for when an agency must obtain approval before obtaining
             273      items listed in Subsection 63F-1-205 (1);
             274          (ii) specify the detail and format required in an agency information technology plan
             275      submitted in accordance with Section 63F-1-204 ;


             276          (iii) provide for standards related to the privacy policies of websites operated by or on
             277      behalf of an executive branch agency;
             278          (iv) provide for the acquisition, licensing, and sale of computer software;
             279          (v) specify the requirements for the project plan and business case analysis required by
             280      Section 63F-1-205 ;
             281          (vi) provide for project oversight of agency technology projects when required by
             282      Section 63F-1-205 ;
             283          (vii) establish, in accordance with Subsection 63F-1-205 (2), the implementation of the
             284      needs assessment for information technology purchases; and
             285          (viii) establish telecommunications standards and specifications in accordance with
             286      Section 63F-1-404 .
             287          (b) The rulemaking authority in this Subsection (1) is in addition to any other
             288      rulemaking authority granted by this title.
             289          (2) (a) Notwithstanding Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             290      and subject to Subsection (2)(b), the chief information officer may adopt a policy that outlines
             291      procedures to be followed by the chief information officer in facilitating the implementation of
             292      this title by executive branch agencies if the policy:
             293          (i) is consistent with the executive branch strategic plan; and
             294          (ii) is not required to be made by rule under Subsection (1) or Section 63G-3-201 .
             295          (b) (i) A policy adopted by the chief information officer under Subsection (2)(a) may
             296      not take effect until 30 days after the day on which the chief information officer submits the
             297      policy to:
             298          (A) the governor; and
             299          (B) all cabinet level officials.
             300          (ii) During the 30-day period described in Subsection (2)(b)(i), cabinet level officials
             301      may review and comment on a policy submitted under Subsection (2)(b)(i).
             302          (3) (a) Notwithstanding Subsection (1) or (2) or Title 63G, Chapter 3, Utah
             303      Administrative Rulemaking Act, without following the procedures of Subsection (1) or (2), the
             304      chief information officer may adopt a security procedure to be followed by executive branch
             305      agencies to protect the statewide area network if:
             306          (i) broad communication of the security procedure would create a significant potential


             307      for increasing the vulnerability of the statewide area network to breach or attack; and
             308          (ii) after consultation with the chief information officer, the governor agrees that broad
             309      communication of the security procedure would create a significant potential increase in the
             310      vulnerability of the statewide area network to breach or attack.
             311          (b) A security procedure described in Subsection (3)(a) is classified as a protected
             312      record under Title 63G, Chapter 2, Government Records Access and Management Act.
             313          (c) The chief information officer shall provide a copy of the security procedure as a
             314      protected record to:
             315          (i) the chief justice of the Utah Supreme Court for the judicial branch;
             316          (ii) the speaker of the House of Representatives and the president of the Senate for the
             317      legislative branch;
             318          (iii) the chair of the Board of Regents; and
             319          (iv) the chair of the State Board of Education.
             320          (4) (a) Rules made under Subsection (1), and policies made under Subsection (2), may
             321      not interfere with an executive branch agency's rights under Section 63F-1-903 .
             322          (b) A security procedure described in Subsection (3)(a) may not unreasonably interfere
             323      with an executive branch agency's rights under Section 63F-1-903 .
             324          Section 6. Section 63F-1-303 is amended to read:
             325           63F-1-303. Executive branch agencies -- Subscription by institutions.
             326          (1) [An] Except as provided in Section 63F-1-903 , an executive branch agency in
             327      accordance with its agency information technology plan approved by the chief information
             328      officer shall:
             329          (a) subscribe to the information technology services provided by the department; or
             330          (b) contract with one or more alternate private providers of information technology
             331      services if the chief information officer determines that the purchase of the services from a
             332      private provider will:
             333          (i) result in:
             334          (A) cost savings;
             335          (B) increased efficiency; or
             336          (C) improved quality of services; and
             337          (ii) not impair the interoperability of the state's information technology services.


             338          (2) An institution of higher education may subscribe to the services provided by the
             339      department if:
             340          (a) the president of the institution recommends that the institution subscribe to the
             341      services of the department; and
             342          (b) the Board of Regents determines that subscription to the services of the department
             343      will result in cost savings or increased efficiency to the institution.
             344          (3) The following may subscribe to information technology services by requesting that
             345      the services be provided from the department:
             346          (a) the legislative branch;
             347          (b) the judicial branch;
             348          (c) the State Board of Education;
             349          (d) a political subdivision of the state;
             350          (e) an agency of the federal government;
             351          (f) an independent entity as defined in Section 63E-1-102 ; and
             352          (g) an elective constitutional officer of the executive department as defined in
             353      Subsection 63F-1-102 (7)(b).
             354          Section 7. Section 63F-1-404 is amended to read:
             355           63F-1-404. Duties of the division.
             356          The division shall:
             357          (1) develop and implement an effective enterprise architecture governance model for
             358      the executive branch;
             359          (2) provide oversight of information technology projects that impact statewide
             360      information technology services, assets, or functions of state government to:
             361          (a) control costs;
             362          (b) ensure business value to a project;
             363          (c) maximize resources;
             364          (d) ensure the uniform application of best practices; and
             365          (e) avoid duplication of resources;
             366          (3) develop a method of accountability to agencies for services provided by the
             367      division through service agreements with the agencies;
             368          (4) [beginning] on September 1[, 2006, and each September 1 thereafter] of each year,


             369      provide the chief information officer and the Public Utilities and Technology Interim
             370      Committee with performance measures used by the division to measure the quality of service
             371      delivered by the division and the results of the performance measures;
             372          (5) serve as a project manager for enterprise architecture which includes the
             373      management of applications, standards, and procurement of enterprise architecture;
             374          (6) coordinate the development and implementation of advanced state
             375      telecommunication systems;
             376          (7) provide services including technical assistance:
             377          (a) to executive branch agencies and subscribers to the services; and
             378          (b) related to information technology or telecommunications;
             379          (8) establish telecommunication system specifications and standards for use by:
             380          (a) one or more executive branch agencies; or
             381          (b) one or more entities that subscribe to the telecommunication systems in accordance
             382      with Section 63F-1-303 ;
             383          (9) coordinate state telecommunication planning in cooperation with:
             384          (a) state telecommunication users;
             385          (b) executive branch agencies; and
             386          (c) other subscribers to the state's telecommunication systems;
             387          (10) cooperate with the federal government, other state entities, counties, and
             388      municipalities in the development, implementation, and maintenance of:
             389          (a) (i) governmental information technology; or
             390          (ii) governmental telecommunication systems; and
             391          (b) (i) as part of a cooperative organization; or
             392          (ii) through means other than a cooperative organization;
             393          (11) establish, operate, manage, and maintain:
             394          (a) one or more state data centers; and
             395          (b) one or more regional computer centers;
             396          (12) design, implement, and manage all state-owned, leased, or rented land, mobile, or
             397      radio telecommunication systems that are used in the delivery of services for state government
             398      or its political subdivisions;
             399          (13) in accordance with the executive branch strategic plan, implement minimum


             400      standards to be used by the division for purposes of compatibility of procedures, programming
             401      languages, codes, and media that facilitate the exchange of information within and among
             402      telecommunication systems; [and]
             403          (14) provide the chief information officer with an analysis of an executive branch
             404      agency information technology plan that includes:
             405          (a) an assessment of how the implementation of the agency information technology
             406      plan will affect the costs, operations, and services of:
             407          (i) the department; and
             408          (ii) other executive branch agencies; and
             409          (b) any recommended changes to the plan[.]; and
             410          (15) fulfill the duties described in this section in a manner that does not interfere with
             411      an executive branch agency's rights under Section 63F-1-903 .
             412          Section 8. Section 63F-1-504 is amended to read:
             413           63F-1-504. Duties of the division.
             414          The division shall:
             415          (1) establish standards for the information technology needs of a collection of
             416      executive branch agencies or programs that share common characteristics relative to the types
             417      of stakeholders they serve, including:
             418          (a) project management;
             419          (b) application development; and
             420          (c) procurement;
             421          (2) provide oversight of information technology standards that impact multiple
             422      executive branch agency information technology services, assets, or functions to:
             423          (a) control costs;
             424          (b) ensure business value to a project;
             425          (c) maximize resources;
             426          (d) ensure the uniform application of best practices; and
             427          (e) avoid duplication of resources;
             428          (3) in accordance with Section 63F-1-204 , provide the chief information officer a
             429      written analysis of any agency information technology plan provided to the division, which
             430      shall include:


             431          (a) a review of whether the agency's technology projects impact multiple agencies and
             432      if so, whether the information technology projects are appropriately designed and developed;
             433          (b) an assessment of whether the agency plan complies with the state information
             434      architecture; and
             435          (c) an assessment of whether the information technology projects included in the
             436      agency plan comply with policies, procedures, and rules adopted by the department to ensure
             437      that:
             438          (i) information technology projects are phased in;
             439          (ii) funding is released in phases;
             440          (iii) an agency's authority to proceed to the next phase of an information technology
             441      project is contingent upon the successful completion of the prior phase; and
             442          (iv) one or more specific deliverables is identified for each phase of a technology
             443      project;
             444          (4) establish a system of accountability to user agencies through the use of service
             445      agreements;
             446          (5) each year, provide the chief information officer and the Public Utilities and
             447      Technology Interim Committee with performance measures used by the division to measure the
             448      quality of services delivered by the division and results of those measures; [and]
             449          (6) establish administrative rules in accordance with Section 63F-1-206 and as required
             450      by Section 63F-1-506 [.]; and
             451          (7) fulfill the duties described in this section in a manner that does not interfere with an
             452      executive branch agency's rights under Section 63F-1-903 .
             453          Section 9. Section 63F-1-901 is enacted to read:
             454     
Part 9. Exceptions

             455          63F-1-901. Title.
             456          This part is known as "Exceptions."
             457          Section 10. Section 63F-1-902 is enacted to read:
             458          63F-1-902. Definitions.
             459          As used in this part:
             460          (1) "Budget savings" means the amount appropriated for a fiscal year to an executive
             461      branch agency for information technology that is not spent during that fiscal year, to the extent


             462      that the amount not spent was due to a cost savings realized under Section 63F-1-903 .
             463          (2) "Cost savings" means that the actual expenditure by an executive branch agency for
             464      the information technology and equipment acquired from or through a person other than the
             465      department, under Section 63F-1-903 , is less than the amount that it would have cost to acquire
             466      the information technology and equipment from or through the department.
             467          (3) "Equipment" means:
             468          (a) information technology equipment;
             469          (b) telecommunications equipment; or
             470          (c) software.
             471          Section 11. Section 63F-1-903 is enacted to read:
             472          63F-1-903. Direct acquisition of information technology or equipment.
             473          (1) Notwithstanding any provision of this chapter to the contrary, an executive branch
             474      agency may acquire information technology or equipment from a person other than the
             475      department without going through the department and without approval from the department,
             476      if:
             477          (a) the chief information officer, under Section 63F-1-204 , has already given approval
             478      for the executive branch agency to acquire the information technology or equipment directly
             479      from or through the department;
             480          (b) an appropriation is made by the Legislature for acquisition of the information
             481      technology or equipment; and
             482          (c) the executive branch agency:
             483          (i) establishes, in writing, that it can acquire the information technology or equipment:
             484          (A) at a level of quality that is at least as high as the level of quality that can be
             485      obtained from or through the department; and
             486          (B) at a cost that is lower than the cost available from or through the department;
             487          (ii) provides a copy of the written document described in Subsection (1)(c)(i) to the
             488      department and the Division of Finance; and
             489          (iii) except as provided in Subsection (2), acquires the property in accordance with
             490      Title 63G, Chapter 6, Utah Procurement Code.
             491          (2) An executive branch agency that otherwise complies with Subsection (1) is, with
             492      respect to the acquisition described in Subsection (1), exempt from a provision of Title 63G,


             493      Chapter 6, Utah Procurement Code, or a rule made under Title 63G, Chapter 6, Utah
             494      Procurement Code, that requires an executive branch agency to purchase under an existing state
             495      contract.
             496          Section 12. Section 63F-1-904 is enacted to read:
             497          63F-1-904. Application to use cost savings for specified purpose.
             498          (1) An executive branch agency that is able to demonstrate that it realized a cost
             499      savings through an acquisition described in Section 63F-1-903 may, in the fiscal year following
             500      the fiscal year in which the cost savings occurred, apply, to the appropriations subcommittee
             501      responsible for making budget recommendations relating to the executive branch agency, for
             502      permission to use the cost savings realized for another specified purpose that is in the interest
             503      of the executive branch agency, the state, and the public, in subsequent fiscal years.
             504          (2) Upon receipt of an application described in Subsection (1), the subcommittee is
             505      encouraged to recommend to the Executive Appropriations Committee that the executive
             506      branch agency be permitted to use some or all of the cost savings, in subsequent fiscal years,
             507      for a specified purpose that is in the interest of the executive branch agency, the state, and the
             508      public.
             509          (3) The Executive Appropriations Committee is encouraged to approve the
             510      recommendation, described in Subsection (2), of the appropriations subcommittee.
             511          (4) The Legislature is encouraged to appropriate money approved by the Executive
             512      Appropriations Committee, under Subsection (3), for the specified purpose recommended
             513      under Subsection (2).




Legislative Review Note
    as of 1-27-12 10:26 AM


Office of Legislative Research and General Counsel


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