NOTE: As provided in LFC policy, this report is intended 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 in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB93

SOURCES OF INFORMATION

LFC files

SUMMARY

Synopsis of HAFC Amendment

The House Appropriations and Finance Committee amendment makes a few technical corrections and strikes the appropriations provided in the bill for FY99 and FY2000.

Synopsis of the HGUAC Substitute

The House Government and Urban Affairs Committee (HGUAC) substitute for HB 33 is a compromise bill supported by the Legislative Finance Committee and the executive to create the Information Technology Management Act for the following purposes:

• •coordinate information systems to ensure the most cost-effective and efficient information and communication systems and resources,

• •develop a five-year state strategic plan, and



• •promote data sharing between governmental entities and provide a mechanism for information technology expertise to be shared between the branches of state government and local governments.

The substitute bill creates the Information Technology Commission (section 4) of thirteen members as follows:

• •five appointed by the governor from agencies whose primary funding is not from internal service funds,
• •one member appointed by the chairman of the Public Regulation Commission,
• •two members representing education, one appointed by the Commission on Higher Education and one appointed by the president of the State Board of Education,
• •two members from the national laboratories, and
• •three public members appointed by the governor with information technology and management experience.

This act allows for appointment of the following advisory members:

• •two members from the Judicial Information Systems Council appointed by the chairman of the council,
• •two members from the house of representatives and two members from the Senate appointed by the New Mexico Legislative Council, and
• •two members representing local governments, one appointed by the New Mexico Association of Counties and one appointed by the New Mexico Municipal League.

The substitute bill provides for the power and duties of the Commission (section 5) and of the Information Technology Management Office (section 7). Included in the Information Technology Management Office section are changes allowing the chief information officer to employ staff, but does not detail the type of staff to be hired.

The substitute bill has a sunset provision of July 1, 2005 and a wind-up period of one year until July 1, 2006 (section 9).

The substitute bill also creates a legislative Information Technology Oversight Committee (section 10) composed of four members from the House of Representatives and four members from the Senate appointed by the New Mexico Legislative Council. Section 11 provides for the oversight committee's duties.

FISCAL IMPLICATIONS

The substitute bill has one hundred fifty thousand dollars ($150.0) appropriation from the general fund for expenditure in fiscal year 1999, and seven hundred thousand dollars ($700.0) appropriation from the general fund to the information technology office for expenditure in fiscal year 2000. The fiscal year 2000 appropriation should provide for staff of eight (8) FTE and sufficient funds to be expended from the following categories:

Personal services $451.1

Employee benefits 124.6

Travel 10.0

Maintenance and repairs 12.5

Supplies and materials 15.0

Contractual services 8.3

Operating costs 64.8

Capital outlay 7.5

Out-of-state travel 6.0

Other financing uses .2

Total for FY2000 $700.0

ADMINISTRATIVE IMPLICATIONS

The workload analysis prepared by the chief information officer indicates on page 9, item 4, formal monitoring of TRIMS, CSES, and FACTS as an accomplishment by his office; however, there are no written reports issued by the Office of Information Technology. Also, the chief information officer claims to provide technical guidance to agencies with major project development; however, once again there are no written documentation available to support this activity. The substitute bill in section 7 (B) (6) requires the chief information officer to review appropriation requests to ensure compliance with agency plans and the state strategic plan and make written recommendations to the Department of Finance and Administration, the Legislative Finance Committee and the Information Technology Oversight Committee by November 30. Also, the general appropriation act is proposing a requirement for the chief information officer to provide written reports on monitoring of the major development projects to determine if sound development methodology has been followed, the independent validation and verification contractors recommendations has been implemented, the turn key approach is taken in developing new projects when appropriate to minimize risk to state and protect warranty rights of state of New Mexico. The chief information officer will be required to consolidate purchasing of all hardware and software to achieve economies of scale and to provide the state best unit price.

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