TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE DEPARTMENT OF ACCOUNTING AND GENERAL SERVICES
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. In March 2011, the State launched an initiative to modernize and transform the State's technology infrastructure, systems, processes, and procedures. The State subsequently hired its first full-time chief information officer in July 2011 to oversee the development and implementation of a statewide information technology strategic plan. In September 2011, the first phase of the State's modernization initiative was completed with the publishing of the "Baseline of Information Management and Technology and Comprehensive View of State Services" report. The findings and recommendations in this report provide the basis for the strategic direction that the State needs to take going forward. The development of the statewide information technology strategic plan, which will include a business transformation strategy, is currently underway and is anticipated to be delivered by the chief information officer in July 2012.
The report explained that the State's budget reductions over the last decade and lack of centralized governance of information technology and information resource management have resulted in minimal integration of business processes among departments, duplication of efforts and redundant processes, and aging legacy systems. Further, the State's current level of investment in information technology and information resource management is inadequate compared to benchmark standards found in other states and existing best practices.
It is recognized that technology alone cannot address the State's needs; simply automating obsolete or stove-piped processes will not lead to better outcomes. What is required is a re-thinking of the existing business processes throughout state government, in every department, in order to take full advantage of the transformation capabilities modern technology offers. It is the chief information officer's and business transformation executive's intention to embark upon a prioritized enterprise-wide re-evaluation of business processes and their enabling technologies in order to advance Hawaii to a more agile, responsive, and transparent future state.
The re-thinking of business processes and the transformation of the State's information technology infrastructure and framework will result in increased efficiencies through greater collaboration and information sharing, improved effectiveness through eliminating redundancies, enhanced levels of information security, future cost savings, and business processes that will more closely align with the business needs of the State. Additionally, the new information technology framework that will be documented in the strategic plan will include an enterprise architecture for the State and will serve as the basis for annual tactical operation plans going forward.
The defined initiatives resulting from the strategic plan cannot be funded until fiscal year 2013-2014, but there are basic and critical foundational elements that must be implemented in fiscal year 2012-2013 in order for the State to realize the greatest benefits of the overall transformation initiative.
The legislature finds that these initiatives will provide long-term benefits to not only the general public, but all state employees, programs, agencies, and departments. In 2011, the legislature dedicated three per cent of central service expenses revenues to be deposited into the shared services technology special fund to ensure a base level of support for continued transformation of the State's technology infrastructure.
The legislature finds that in 2012 and 2013, there is a unique opportunity to consolidate one-time savings from agencies and departments statewide to provide a corpus of money to the shared services technology special fund to be expended as needed to fund the basic and foundational elements critical to the success of the information technology strategic plan.
Executive Memorandum 12-01, dated January 26, 2012, detailed potential savings in special and revolving funds statewide in fiscal year 2012 available for transfer to the shared services technology special fund. Analysis of fiscal year 2013 revenues and expenditures indicate that similar savings will be available in fiscal year 2013.
The purpose of this part is to reprioritize and transfer moneys for the business and technology transformation initiative to prepare the State for the larger transformation activities that will be defined in the forthcoming information technology strategic plan, which will include but not be limited to:
(1) Planning, designing, and requirements gathering necessary to develop and implement an integrated financial and human resource management system for the State of Hawaii;
(2) Developing and implementing business process reengineering and information technology transformation activities that are required as foundational elements to build a new state information framework and to begin mitigating the critical information technology challenges the State currently faces;
(3) Developing and executing pilot projects that will increase current information technology operational capabilities; and
(4) Developing and implementing a governance structure to ensure alignment of resources to strategic objectives, reduce and simplify complex procedures and processes, and realize future cost savings in a new state information technology framework.
SECTION 2. Notwithstanding the provisions of section 37-53, Hawaii Revised Statutes, all departments shall, with the approval of the governor or the director of finance if so delegated by the governor, transfer from any special fund or revolving fund relating to such department to the shared services technology special fund all or any portion of moneys determined to be in excess of fiscal year 2012 and fiscal year 2013 requirements for such special fund or revolving fund attributable to personal services savings.
SECTION 3. The judiciary shall, with the approval of the chief justice, transfer from any special fund or revolving fund relating to the judiciary to the shared services technology special fund all or any portion of moneys determined to be in excess of fiscal year 2012 and fiscal year 2013 requirements for such special fund or revolving fund attributable to personal services savings.
SECTION 4. All departments shall, with the approval of the governor or the director of finance if so delegated by the governor, transfer ten per cent of all appropriations attributable to general fund vacant positions and any special fund or revolving fund vacant positions relating to such department in fiscal year 2012 and fiscal year 2013 to the shared services technology special fund.
SECTION 5. The office of information management and technology shall submit a report to the legislature no later than November 1, 2012, on the use of funds appropriated, and status of the projects, governance structure, modernization, and integrated financial and human resource management system.
SECTION 6. The legislature finds that used state office equipment with residual value is often discarded in landfills once it is deemed outdated. There, the equipment harms the environment generally and avian species in particular. Simultaneously, many schools and nonprofit organizations need office equipment and will accept or purchase the used equipment from the State.
The legislature finds that amending chapter 103D, Hawaii Revised Statutes, to require state departments and agencies to sell or donate their used equipment with residual value before disposing of the equipment will benefit schools, nonprofit organizations, and the environment.
This part requires that after used state office equipment is placed on the disposal list, as required by current administrative rules, and remains on that list without being accepted or purchased by a school or nonprofit for a designated period of time, the equipment be sold to a company for recycling or salvage.
SECTION 7. Chapter 103D, Hawaii Revised Statutes, is amended by adding a new section to part XII to be appropriately designated and to read as follows:
"§103D- Required donation or sale before discarding equipment as solid waste. (a) After June 30, 2013, no state surplus equipment shall be discarded as solid waste unless it has been first:
(1) Offered for sale or donation to a school, school district, or nonprofit organization; and
(2) Offered for sale through competitive sealed bid, public auction, established market, or posted prices to at least one organization or business capable of refurbishing sellable equipment and removing salvageable components.
(b) The department of accounting and general services, on behalf of the state procurement office, shall submit a report to the legislature, no later than twenty days prior to the regular session of 2015, and each regular session thereafter indicating the following:
(1) The quantity and nature of surplus equipment replaced or upgraded;
(2) The quantity and nature of surplus equipment offered for sale or donation to schools, school districts, and nonprofit organizations;
(3) The quantity and nature of surplus equipment purchased or accepted as a donation by schools, school districts, and nonprofit organizations;
(4) The quantity and nature of surplus equipment purchased by organizations or businesses capable of refurbishing sellable equipment and removing salvageable components; and
(5) The amount of proceeds generated from the sale of surplus equipment to schools, school districts, nonprofit organizations, and organizations and businesses capable of refurbishing sellable equipment and removing salvageable components.
(c) Proceeds generated from the sale of surplus equipment shall be deposited pursuant to section 103D-1214.
(d) The department of accounting and general services and the state procurement office may adopt rules, pursuant to chapter 91, necessary to implement this section."
SECTION 8. Section 103D-1201, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:
""Nonprofit organization" means a private, nonprofit, tax-exempt corporation, association, or organization listed in section 501(c)(3), of the Internal Revenue Code of 1986, as amended.
"School" means any day care center, child care facility, headstart program, preschool, kindergarten, or elementary or secondary school, public or private, including any special school for children in the State.
"Surplus equipment" means typewriters, copiers, calculators, telephones, cell phones, computers, computer components, printers, and electronic devices typically used in an office environment that are no longer in use by a department and are deemed by the department to have residual market value."
SECTION 9. New statutory material is underscored.
SECTION 10. This Act shall take effect on July 15, 2030; provided that part II shall take effect on July 1, 2030.
Information Technology Transformation Initiative; State Equipment
Identifies and transfers money from designated sources into the shared services technology special fund for the State's information technology transformation initiative. Requires state departments to attempt to sell or donate office equipment to schools, nonprofits, or salvage businesses before disposal. (SB2780 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.