COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 151
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Originating in the Committee on Government Organization;
reported February 20, 2003.]
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A BILL to repeal articles one-b and one-c, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended ; to amend and reenact sections one and two, article one, chapter five-a of said code; to amend and reenact article seven of said chapter; to amend and reenact section two, article one, chapter five-f of said code; and to amend and reenact article three of said chapter, all relating to reorganizing the executive branch of government; abolishing the position of chief technology officer in the office of the governor, the information services and communications division and the science and technology council and creating a new office of technology; consolidating the department of administration and the department of tax and revenue into a new department of finance and administration; reporting requirements; creating a commission on reorganization; termination; creating a legislative oversight commission on reorganization; and continuation.

Be it enacted by the Legislature of West Virginia:
That articles one-b and one-c, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that sections one and two, article one, chapter five-a of said code be amended and reenacted; that article seven of said chapter be amended and reenacted; that section two, article one, chapter five-f of said code be amended and reenacted; and that article three of said chapter be amended and reenacted,

§5A-1-1. Definitions.

For the purpose of this chapter:
(a)"Commodities" means supplies, material, equipment, contractual services, and any other articles or things used by or furnished to a department, agency or institution of state government.
(b)"Contractual services" shall include telephone, telegraph, electric light and power, water and similar services.
(c)"Director" means the director of the division referred to in the heading of the article in which the word appears.
(d)"Expendable commodities" means those commodities which, when used in the ordinary course of business, will become consumed or of no market value within the period of one year or less.
(e)"Nonprofit workshops" means an establishment (a) (1) where any manufacture or handiwork is carried on, (b) (2) which is operated either by a public agency or by a cooperative or by a nonprofit private corporation or nonprofit association, in which no part of the net earnings thereof inures, or may lawfully inure, to the benefit of any private shareholder or individual, (c) (3) which is operated for the primary purpose of providing remunerative employment to blind or severely disabled persons who cannot be absorbed into the competitive labor market, and (d) (4) which shall be approved, as evidenced by a certificate of approval, by the state board of vocational education, division of vocational rehabilitation.
(f)"Printing" means printing, binding, ruling, lithographing, engraving and other similar services.
(g)"Removable property" means any personal property not permanently affixed to or forming a part of real estate.
(h)"Secretary" means the secretary of finance and administration. as used in article two of this chapter, the director of the budget All references to the secretary of administration or the secretary of tax and revenue as used in this code, shall be construed to mean the secretary of finance and administration.
(i)"Spending officer" means the executive head of a spending unit, or a person designated by him.
(j)"Spending unit" means a department, agency or institution of the state government for which an appropriation is requested, or to which an appropriation is made by the Legislature.

§5A-1-2. Department of finance and administration and office of secretary; transfers of funds; transition; savings provision; office of technology.
(a) There is hereby created within the executive branch of state government a department of finance and administration and the office of secretary of the department of finance and administration, effective the first day of July, two thousand and three. The secretary shall be the chief executive officer of the department and director of the budget and shall be appointed by the governor, by and with the advice and consent of the Senate, and shall serve at the will and pleasure of the governor.
(b) The department of administration, the office of the secretary of the department of administration, the department of tax and revenue, and the office of secretary of the department and tax and revenue are abolished effective the first day of July, two thousand and three.

(c) All duties of the secretary of the department of administration and the secretary of the department of tax and revenue are hereby vested in the secretary of the department of finance and administration. All records, responsibilities, obligations, assets and property, of whatever kind and character, of the department of tax and revenue and the department of administration are transferred to the department of finance and administration. The balances of all funds of the department of administration and the department of tax and revenue are transferred to the department of finance and administration. The department of finance and administration is hereby authorized to receive federal funds.
(d) On the effective date of this section, the secretary of the department of administration and the secretary of the department of tax and revenue are authorized to undertake such actions as are reasonably required for an orderly transition. Upon the transfer of the functions of the department of administration and the department of tax and revenue to the department of finance and administration, the secretary of the department of finance and administration is empowered to authorize transfers of program funds as are necessary to facilitate an orderly transfer of functions. Authority to make transfers pursuant to this subsection expires on the thirtieth day of June, two thousand four.
(e) All orders, determinations, rules, permits, grants, contracts, certificates, licenses, waivers, bonds, authorizations and privileges which have been issued, made, granted, or allowed to become effective by the governor, any state department or agency or official thereof, or by a court of competent jurisdiction, in the performance of functions which have been transferred to the secretary or to the department, and were in effect on the date such transfer occurred continue in effect, for the benefit of the department, according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with the law by the governor, the secretary, or other authorized official, a court of competent jurisdiction, or by operation of law.
(f) Any proceedings, including notices of proposed rule making, or any application for any license, permit, certificate, or financial assistance pending before any department, division or other office, functions of which were transferred to the department of finance and administration are not affected by the transfer. Orders issued in any such proceedings shall continue in effect until modified, terminated, superseded, or revoked by the governor, the secretary, by a court of competent jurisdiction, or by operation of law. Nothing in this subsection prohibits the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if the department had not been created or if functions or offices had not been transferred to the department. The creation of the department of finance and administration and the subsequent transfer of functions do not affect suits commenced prior to the effective date of the creation by or against any department, division, office or officer, and in all such suits, proceedings shall be had, appeals taken, and judgments rendered in the same manner and with like effect as if the creation or transfer had not occurred, except that the secretary of the department of finance and administration or other officer may, in an appropriate case, be substituted or added as a party.
(g) The secretary shall submit to the legislative joint committee on government operations on or before the first day of December, two thousand three, a report setting forth the reorganization implemented by executive action pursuant to this article and resulting cost savings as determined by the secretary, any recommendations for further reorganization requiring legislative action and drafts of recommended legislation to implement the reorganization requiring legislative action.
ARTICLE 7. OFFICE OF TECHNOLOGY.
§5A-7-1. Findings and purposes.
The Legislature finds and declares that a unified information technology system is essential to the efficient and effective operation of state government, and that the management goals and purposes of government are furthered by the development of compatible, integrated, linked information systems across state government. Therefore, it is the purpose of this article to create the technology office within the department of finance and administration with the authority to set, direct, and approve all information technology policies standards, structure, and expenditures for all state spending units on their information systems and information technology equipment in the various state agencies, to promulgate standards in the utilization of information technology equipment and related services, and to promote quality service and cost effective and efficient operation of all branches of state government.

§5A-7-2. Office created; chief information officer; qualifications; use of facilities; rules.

There is hereby created the office of technology within the department of finance and administration. The chief information officer shall be appointed by and shall serve at the will and pleasure of the governor. The chief information officer shall report to the secretary of finance and administration. The chief information officer shall have knowledge in the field of information technology, experience in the design and management of information systems and an understanding of the special demands upon government with respect to budgetary constraints, the protection of privacy interests and federal and state standards of accountability. The information services and communications division of the department of administration, heretofore created, is hereby transferred to and incorporated within the office of technology within the department of finance and administration. The facilities and resources of the office shall be available, subject to rules established by the secretary, to the legislative, executive and judicial branches of state government. Such rules shall be promulgated in accordance with the provisions of article three, chapter twenty-nine-a of this code.
§5A-7-3. Definitions.

As used in this article:

(a) "Chief information officer" means the person holding the position created in section two of this article and vested with authority to set, direct, and approve all information technology policies standards, structure, and expenditures, and also to establish, develop, improve, set and approve information technology equipment functions for all state spending units on their information systems that provide cost effectiveness and efficiency to the individual state spending units, and further the overall management goals and purposes of government;
(b) "Director of operations" means the director of the operations section of the office of technology providing mainframe, computing and internet application development and maintenance, the network and application hosting, data hosting, maintenance and recovery, networking and infrastructure, and training center services, and any other services created or deleted at the discretion of the chief information officer within the office of technology;
(c) "Director of policy oversight" means the director of the policy oversight section of the office of technology providing strategic planning, security, compliance and disaster recovery services, and any other services created or deleted at the discretion of the chief information officer within the office of technology;
(d) "Director of process oversight" means the director of the process oversight section of the office of technology providing budgeting, project oversight, performance measurement and business process reengineering services, and any other services created or deleted at the discretion of the chief information officer within the office of technology;
(e) "Information systems" means computer-based information equipment and related services designed for the automated transmission, storage, manipulation and retrieval of data by electronic or mechanical means;
(f) "Information technology" means data processing and telecommunications hardware, software, services, supplies, personnel, maintenance and training, and includes the programs and routines used to employ and control the capabilities of data processing hardware;
(g) "Information technology equipment" means any equipment, interconnected systems or subsystems of equipment the principal function of which is the automatic acquisition, storage, manipulation, processing, interchange, transmission or reception of data or information, including all computers with a human interface; computer peripherals which will not operate unless connected to a computer or network; voice, video and data networks; and ancillary software, hardware, and related resources;
(h) "Related services" include feasibility studies, systems design, software development and time-sharing services whether provided by state employees or others;
(i) "Office" means the office of technology within the department of finance and administration and headed by the chief information officer as established in section two hereof;

(j) "Secretary" means the secretary of the department of finance and administration.
(k) "Telecommunications" means any transmission, emission or reception of signs, signals, audio, writings, data, images, video voice or sounds of intelligence of any nature by wire, radio or other electromagnetic or optical systems. The term includes all facilities and equipment performing those functions that are owned, leased or used by the executive agencies of state government;
(l) "Experimental program to stimulate competitive research" (EPSCoR) means the West Virginia component of the national EPSCoR program which is designed to improve the competitive research and development position of selected states through investments in academic research laboratories and laboratory equipment. The recognized West Virginia EPSCoR, which is part of the department of finance and administration's office of technology, is the responsible organization for the coordination and submission of proposals to all federal agencies participating in the EPSCoR program.

§5A-7-4. Powers and duties; telecommunications service; professional staff.

(a) With respect to all state spending units, the office of technology, at the direction of the chief information officer, shall:
(1) Develop an organized approach to statewide information resource management, including, but not limited to, information systems, information technology and information technology equipment;
(2) Direct the director of operations to provide technical assistance to the administrators of the various state spending units in the design and management of information systems;
(3) Direct the director of operations, the director of policy oversight and director of process oversight to continually evaluate the economic justification, system design and suitability of information technology equipment and related services, and review and make recommendations to the chief information officer to whether to approve or deny the purchase, lease or acquisition of information equipment and contracts for related services by the state spending units;
(4) Approve all expenditures for information systems, information technology and information technology equipment.
(5) Develop a mechanism for identifying those instances where systems of paper forms should be replaced by direct use of information technology equipment and those instances where applicable state or federal standards of accountability demand retention of some paper processes and implementing programs to further these goals;
(6) Develop a mechanism for identifying those instances where information systems should be linked, integrated and information shared, while also providing appropriate limitations on access and the security of information and implementing programs to further these goals;
(7) Develop, research and implement new technologies to be used in state government, convene and organize conferences and work with other state agencies to develop incentive packages encouraging the utilization of technology;
(8) Provide technical services and assistance to the various state spending units with respect to developing and improving data processing and telecommunications functions. The office shall provide training and direct data processing services to the various state agencies;
(9) Assess each state spending unit for the cost of any evaluation performed by the operations, policy oversight and process oversight sections of the division, and any and all services, training, data processing services and technical assistance performed and provided by the office under the provisions of this section, including, but not limited to, the economic justification, system design and the suitability of equipment and systems used by the state spending unit; and
(10) Engage in any other activities as directed by the secretary of finance and administration or by the governor.
(b) With respect to executive agencies and, where indicated, to nonexecutive agencies, the chief information officer shall:
(1) Develop a unified and integrated structure for information systems for all executive agencies and nonexecutive agencies;
(2) Establish, based on need and opportunity, priorities and time lines for addressing the information systems and technology requirements of the various executive agencies of state government;
(3) Exercise such authority inherent to the chief executive of the state as the governor may, by executive order, delegate, to overrule and supersede decisions made by the administrators of the various executive agencies of government with respect to the design and management of information systems and approval of the purchase, lease or acquisition of information systems, information technology or information technology equipment, and contracts for related services;
(4) Draw upon staff of other executive agencies for advice and assistance in the formulation and implementation of administrative and operational plans and policies; and
(5) Recommend to the governor transfers of information technology equipment, ownership of hardware, contracts, software licenses and human resources from any executive or nonexecutive agency and the most cost effective and efficient uses of the fiscal resources of executive agencies, to consolidate or centralize information-processing operations.
(c) The chief information officer may employ:
(1) A director of operations;
(2) A director of policy oversight;
(3) A director of process oversight; and
(4) All other personnel necessary to carry out the work of the office and may approve reimbursement of costs incurred by employees to obtain education and training.
(d) All fees collected by the chief information officer shall be deposited in a special account in the state treasury to be known as the "Office of Technology Fund". Expenditures from the fund shall be made by the chief information officer for the purposes set forth in this article and are not authorized from collections but are to be made only in accordance with appropriation by the Legislature and in accordance with the provisions of article three, chapter twelve of this code and upon the fulfillment of the provisions set forth in article two, chapter five-a of this code. Amounts collected which are found from time to time to exceed the funds needed for purposes set forth in this article may be transferred to other accounts or funds and redesignated for other purposes by appropriation of the Legislature.
(e) The chief information officer shall report quarterly to the joint committee on government and finance on all assessments made pursuant to subsection (b) of this section.
(f) The chief information officer shall oversee the state's unified telecommunications network and all telecommunications service to the state and maintain the accounting system for such system.
(g) On or before the first day of November, two thousand three, the chief information officer shall develop a plan related to the West Virginia network for educational telecomputing's (WVNET) connection and relationship to the office.

§5A-7-5. Notice of procurements by state spending units required to make purchases through the state purchasing division.

Any state spending unit that is required to submit a request to the state purchasing division prior to purchasing goods or services shall notify the chief information officer, in writing, at the same time it submits its request for proposal to the state purchasing division, of any proposed purchase of goods or services related to its information systems and telecommunication systems. The notice shall contain a brief description of the goods and services to be purchased.

§5A-7-6. Notice of procurements by state spending units exempted from submitting purchases to the state purchasing division.

(a) Any state spending unit that is not required to submit a request for proposal to the state purchasing division prior to purchasing goods or services shall notify the chief information officer, in writing, of any proposed purchase of goods or services related to its information or telecommunication systems. The notice shall contain a detailed description of the goods and services to be purchased. The state spending unit shall provide the notice to the chief information officer a minimum of twenty days prior to the time it requests bids on the provision of the goods or services.
(b) If the chief information officer evaluates the suitability of the information technology and telecommunication equipment and related services under the provisions of section four of this article and determines that the goods or services to be purchased are not suitable, he or she shall, within ten days of receiving the notice from the state spending unit, notify the state spending unit, in writing, of any recommendations he or she has regarding the proposed purchase of the goods or services. If the state spending unit receives a written notice from the chief information officer within the time period required by this section, the state spending unit shall not put the goods or services out for bid less than thirty days following receipt of the notice from the chief information officer.
§5A-7-7. Biannual report.
The chief information officer shall report biannually to the legislative joint committee on government and finance on the activities of the office of technology within the department of finance and administration.
§5A-7-8. Exemptions.
The provisions of this article do not apply to the Legislature or the judiciary.

§5F-1-2. Executive departments created; offices of secretary created.

(a) There are created and continued, within the executive branch of the state government, the following departments:
(1) Department of finance and administration;
(2) Department of education and the arts;
(3) Department of environmental protection;
(4) Department of health and human resources;
(5) Department of military affairs and public safety;
(6) Department of tax and revenue; and
(7) (6)Department of transportation.
(b) Each department will be headed by a secretary appointed by the governor with the advice and consent of the Senate. Each secretary serves at the will and pleasure of the governor.
(c) Effective the first day of July, two thousand two, the department of tax and revenue and the agencies, offices, boards and commissions within the department and the department of administration and the agencies, offices, boards and commissions within the department are transferred to the department of finance and administration, pursuant to section two, article one of chapter five-a of this code.

ARTICLE 3. THE COMMISSION ON REORGANIZATION AND THE LEGISLATIVE OVERSIGHT COMMISSION ON REORGANIZATION.

§5F-3-1. Legislative findings.
(a) The Legislature finds that serving the needs of West Virginia's citizens in the twenty-first century requires state government to provide services in the most efficient and effective manner as possible and that to acquire this efficiency, state government should periodically conduct a top to bottom review of its operations, including the identification of essential services and the elimination of redundant, ineffective services.
(b) The Legislature further finds that in order to achieve these purposes, it is essential that a commission to reorganize state government and an oversight commission to monitor and coordinate actions needed for efficient reorganization be created to effectuate the streamlining of state government.
§5F-3-2. Creation and membership of the commission on reorganization.
(a) The commission on reorganization is hereby created to conduct a comprehensive review of state government operations and services.
(b) The commission is comprised of the following fifteen members:
(1) Three state senators: the chair of the Senate committee on government organization, the chair of the Senate committee on finance and a third senator to be appointed by the president of the Senate by the tenth day of April, two thousand three;
(2) Three state delegates: the chair of the House of Delegates committee on government organization, the chair of the Senate committee on finance, and one delegate appointed by the speaker of the House of Delegates by the tenth day of April, two thousand three;
(3) Three department secretaries from the executive branch appointed by the governor and the governor shall designate one department secretary as chair of the commission by the tenth day of April, two thousand three;
(4) The deans of the colleges of business and economics at West Virginia University and at Marshall University;
(5) Two citizen members representing the business community; and
(6) Two citizen members not associated with the business community.
(c) On or before the tenth day of April, two thousand three, the governor shall appoint, by and with the consent of the Senate, the four citizen members.

§5F-3-3. Commission on reorganization's powers and duties.

The commission on reorganization shall have the following powers and duties:
(a) Conduct a top to bottom review of all of West Virginia's state government;
(b) Identify redundant and ineffective services;
(c) Streamline and consolidate state agencies and programs;
(d) Analyze technology to improve service delivery and reduce costs;
(e) Use management tools to make state services more efficient;
(f) Consult with experts on streamlining government;
(g) To employ such experts as needed; and
(h) Perform such other duties as will effectively make West Virginia's state government more efficient and less costly.
§5F-3-4. Meetings of the commission on reorganization.
The commission on reorganization shall meet on or before the first day of May, two thousand three, and thereafter on the call of the chair or a majority of the commission members.
§5F-3-5. Staff for the commission on reorganization.
Staff support for the conduct of the commission on reorganization's work shall be furnished by both the Legislature, as approved by the legislative joint committee on government and finance, and the governor.
§5F-3-6. Reports by the commission on reorganization.
The commission on reorganization shall make a preliminary report to the governor and the legislative joint committee on government and finance by the first day of September, two thousand three. The commission on reorganization shall make a final report and present drafts of recommended legislation to the governor and to the legislative joint committee on government and finance by the first day of December, two thousand three.

§5F-3-7. Termination of the commission on reorganization; creation of legislative oversight commission on reorganization.

The commission on reorganization shall terminate on the first day of January, two thousand four. Effective the first day of January, two thousand four, the legislative oversight commission on reorganization is created with the same members as the commission on reorganization.

§5F-3-8. Legislative oversight commission on reorganization's powers and duties.

The legislative oversight commission on reorganization shall have the following powers and duties:
(a) Oversee the implementation of the reorganization of West Virginia's state government; and
(b) Make a continuing investigation, study and review of all matters concerning the efficient operation of West Virginia's state government.

§5F-3-9. Meetings of the legislative oversight commission on reorganization.

The legislative oversight commission on reorganization shall meet during the legislative interim period, commencing with the interim meetings in April, two thousand four.

§5F-3-10. Staff for the legislative oversight commission on reorganization.

The necessary staff support for the conduct of the legislative oversight commission on reorganization's work shall be furnished by the legislature, as approved by the joint committee on government and finance.

§5F-3-11. Reports by the legislative oversight commission on reorganization.

The legislative oversight commission on reorganization shall annually report to the governor and the joint committee on government and finance by the first day of December.
§5F-3-12. Compensation of members

(a)

receive compensation for attending official meetings or engaging in official duties not to exceed the amount paid to members of the Legislature for their interim duties as recommended by the citizens legislative compensation commission and authorized by law.
(b)

.
(c) The compensation and expenses of the members shall be paid in the following manner:
(1) The legislative members shall be paid by the legislative joint committee on government and finance; and
(2) All of the other members, and any consultants or experts that are called by the commission, shall be paid by the governor.
§5F-3-13. Compensation of staff

(a)

receive compensation for attending official meetings or engaging in official duties not to exceed the amount paid to members of the Legislature for their interim duties as recommended by the citizens legislative compensation commission and authorized by law.
(b)

.
(c) The compensation and expenses of the support staff shall be paid in the following manner:
(1) The legislative support staff shall be paid by the legislative joint committee on government and finance; and
(2) The governor's support staff shall be paid by the governor.

§5F-3-14. Continuation of the legislative oversight commission on reorganization.

Pursuant to the provisions of article ten, chapter four of this code, the legislative oversight commission on reorganization shall continue to exist until the first day of July, two thousand six, unless sooner terminated, continued or reestablished by act of the Legislature.


NOTE: This committee substitute abolishes

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
§5A-1-2, §5A-7-1 et seq. and §5F-3-1 et seq. are completely rewritten; therefore, strike-throughs and underscoring have been omitted.