Information Technology Committee

INFORMATION TECHNOLOGY COMMITTEE

North Dakota Century Code (NDCC) Section 54-35-15.1 requires the Legislative Council, during each biennium, to appoint an Information Technology Committee in the same manner as the Council appoints other interim committees. The committee is to consist of four members of the House of Representatives and three members of the Senate. The Chief Information Officer of the state serves as an ex officio nonvoting member of the committee.

North Dakota Century Code Section 54-35-15.2 establishes the duties of the committee. The committee is required to:

Meet at least once each calendar quarter.
Receive a report from the Chief Information Officer of the state at each meeting.
Review the business plan of the Information Technology Department.
Address macro-level questions relating to the Information Technology Department.
Review the activities of the Information Technology Department.
Review statewide information technology standards.
Review the statewide information technology plan.
Conduct studies of information technology efficiency and security.
Make recommendations regarding established or proposed information technology programs and information technology acquisition by the executive and judicial branches.
Review the cost-benefit analysis of any major information technology project of an executive or judicial branch agency. A major project is a project with a cost of $250,000 or more in one biennium or a total cost of $500,000 or more.
Review the cost-benefit analysis of any major information technology project of the State Board of Higher Education or any institution under the control of the State Board of Higher Education if the project significantly impacts the statewide wide area network, impacts the statewide library system, or is an administrative project.
Perform periodic reviews to ensure that a major information technology project is on its projected schedule and within its cost projections.

North Dakota Century Code Section 54-35-15.3 authorizes the committee to review any information technology project or information technology plan. If the committee determines that a project or plan is at risk of failing to achieve its intended results, the committee may recommend to the Office of Management and Budget the suspension of the expenditure of money appropriated for a project or plan. The Office of Management and Budget may suspend the expenditure authority if the office agrees with the recommendation of the committee.

The Legislative Council assigned the committee the study of the technological capacity and needs of the state as provided for in House Concurrent Resolution No. 3057 and directed the committee to expand the study to include the delivery of library services by technology. The study was to include an analysis of the state, national, and global information technology trends, an examination of the future short-term and long-term information technology needs of the state, a review of the development capacity and needs in the various regions of the state, an analysis of changes in the role of communications, media, networks, and public utilities, and a review of the public policy with respect to the role of regulation and deregulation.

The Legislative Council also assigned the committee the responsibility for reviewing the activities of the Information Technology Department, the business plan of the department, statewide information technology standards, the statewide information technology plan, and major information technology projects as provided in NDCC Section 54-35-15.2 and for receiving:

A report from the Chief Information Officer regarding the coordination of services with political subdivisions and a report from the Chief Information Officer and the commissioner of the State Board of Higher Education regarding coordination of information technology between the Information Technology Department and higher education pursuant to NDCC Section 54-59-12.
A report from the Information Technology Department regarding any executive branch agency or institution that does not agree to conform to its information technology plan or comply with statewide policies and standards pursuant to NDCC Section 54-59-13.
An annual report from the Information Technology Department regarding information technology projects, services, plans, and benefits pursuant to NDCC Section 54-59-19.
A report from State Radio Communications on any recommended changes in 911 telephone system standards and guidelines pursuant to NDCC Section 57-40.6-11.
A report from the Public Safety Answering Points Coordinating Committee by November 1 of each even-numbered year on city and county fees on telephone exchange access service and wireless service pursuant to NDCC Section 57-40.6-12.
Information from the Information Technology Department regarding performance measures developed by the department to assist the Legislative Assembly in determining the effectiveness and efficiency of the department's operations pursuant to Section 9 of Senate Bill No. 2043.
A report by the Superintendent of Public Instruction at least once every five months on the Superintendent's pursuit of grant funds during the 2001-03 biennium for projects relating to the use of technology in elementary and secondary education pursuant to Section 10 of Senate Bill No. 2251.

Committee members during the 2001-02 interim were Senators Larry J. Robinson (Chairman), Randy A. Schobinger, and Ken Solberg and Representatives Robert Huether, Keith Kempenich, Bob Skarphol, and Robin Weisz and Chief Information Officer Curtis L. Wolfe.

The committee submitted this report to the Legislative Council at the biennial meeting of the Council in November 2002. The Council accepted the report for submission to the 58th Legislative Assembly.

BACKGROUND

The Legislative Assembly has been closely involved in the development of information technology at the state level for over thirty years.

1967-68 and 1969-70 Studies

As a result of a Legislative Council study during the 1967-68 interim, the 41st Legislative Assembly enacted legislation establishing the Central Data Processing Division (renamed the Information Services Division in 1989) of the Office of Management and Budget for the purpose of establishing an electronic data processing center to be used by all state agencies except the institutions of higher education, Job Service North Dakota, and the Office of the Adjutant General. As a result of a Legislative Council study during the 1969-70 interim, a higher education computer network was funded at three institutions and was later extended to all institutions of higher education under the State Board of Higher Education.

1979-80 Study

As a result of a Legislative Council study during the 1979-80 interim, the 47th Legislative Assembly defined the responsibilities of the Central Data Processing Division and state agencies for the use of data processing resources and provided that the director of the division was to supervise all executive branch agency data processing activities.

1995-96 Study

Recommendations resulting from a Legislative Council study during the 1995-96 interim were contained in 1997 House Bill No. 1034--that agencies prepare information technology plans; that the Information Services Division establish statewide information technology policies, standards, and guidelines; that the division and the State Board of Higher Education meet to coordinate information technology systems and services; that the State Auditor provide information systems audits of information technology systems; and that the division perform information technology management reviews of state agencies except higher education institutions. Before final passage, House Bill No. 1034 was amended to involve the Legislative Council in the information technology planning and audit process and to remove the State Auditor from the information systems audit process.

1997-98 Study

During the 1997-98 interim the Legislative Council established the interim Information Technology Committee and delegated to the committee the Council's authority to study emerging technology and evaluate its impact on the state's system of information technology. The committee was also delegated the Council's responsibility to receive reports regarding coordination of technology systems.

The committee received information regarding information technology plans in other states and reviewed guidelines developed by the Information Services Division for agencies to follow in preparing the information technology plans required as a result of 1997 House Bill No. 1034. The committee also received information from several state agencies regarding their efforts during the information technology planning process.

The committee reviewed the status of the statewide network, which was established in 1982. In 1991 the network's backbone was converted to digital facilities, and the Interactive Video Network was implemented. Because the committee determined that the current network resources needed to be analyzed before determining whether any change in the network should be made, the committee contracted with Inteliant Corporation for an inventory of all current networks used for voice, data, and video communications.

After receiving the report, the committee contracted with Inteliant Corporation to conduct a detailed research of five other states and to develop a set of recommendations for North Dakota for implementing changes to its network. The plan presented the following recommendations:

Establish a statewide communications infrastructure agency for all telecommunications planning, selection, implementation, and management for all state agencies, higher education, and public schools.
Establish the director of the agency as the Chief Information Officer for the state as a cabinet-level position reporting directly to the Governor.
Establish a state communications infrastructure board that includes representatives from the three branches of government, private enterprise, and local government with the overall responsibility to approve standards and policies related to network technologies in the state.
Mandate that the agency develop a business plan defining rate plans, missions, goals, policies, transition plan, business objective, measurements, and general procedures.
Establish a group within the agency for improving personnel productivity and workflow processes for customers.
Establish a technology development fund to establish the statewide network and to evaluate emerging technologies and implement common, shared components for users of the network.
Require each entity that uses the statewide network or is a user of agency services to file a strategic information technology plan.
Establish a project quality assurance process to provide an independent assessment of the status of major projects.
Create a division within the agency to plan and administer access to state information primarily through the Internet.

The committee received initial cost estimates assuming that it would take six years to convert to a new network. The estimates contained in the plan were $6.1 million additional expense during the 1999-2001 biennium; $2.6 million additional expense during the 2001-03 biennium; $3.6 million savings during the 2003-05 biennium; and $12.5 million savings during the 2005-07 biennium.

Inteliant Corporation also prepared a Statewide Telecommunications Plan Financial Analysis & Fiscal Note, which was completed in January 1999. That document suggested that between 1998 and 2005 the state will increase spending for wide area network services for state agencies from $19.3 million to $57.6 million.

In addition, the committee reviewed information regarding:

Standards adopted by the Information Services Division for the acquisition of information technology services or equipment by executive branch agencies.
The potential impact of the failure of computer hardware, software, and embedded chips due to items not being year 2000 (Y2K) compliant.

The committee recommended Senate Bill No. 2043, which, as introduced, provided for the establishment of an Information Technology Department to replace the Information Services Division and to be responsible for all telecommunications planning, selection, and implementation for all state agencies and institutions, counties, cities, and public elementary and secondary schools. The bill provided that the department would be administered by a chief information officer appointed by the Governor. In addition, the bill, as introduced, called for the creation of an information technology board, consisting of four legislators appointed by the Legislative Council, seven members appointed by the Governor, the Chief Information Officer, the commissioner of higher education, and the Supreme Court administrator. The board would have been responsible for approving the business plan of the department, reviewing and approving statewide information technology standards and the statewide information technology plan, assessing major projects to ensure quality assurance, and reporting to the Governor and the Legislative Council on matters concerning information technology. The bill substantially implemented the recommendations contained in the strategic telecommunications plan prepared by Inteliant Corporation.

The committee also recommended Senate Bill No. 2044, which, as introduced, created a Legislative Council Information Technology Committee. The bill provided that the committee's duties would include establishing statewide goals and policy regarding information systems and technology, conducting studies of information technology efficiency and security, reviewing activities of the (newly created) Information Technology Department, and making recommendations regarding established or proposed information technology programs and information technology acquisitions.

1999 Legislation

The 1999 Legislative Assembly adopted Senate Bill No. 2044, which established the Information Technology Committee and set forth its responsibilities as provided for in NDCC Sections 54-35-15.1, 54-35-15.2, and 54-35-15.3.

The 1999 Legislative Assembly also adopted Senate Bill No. 2043 (codified as NDCC Chapter 54-59), which established the Information Technology Department to replace the Information Services Division. The department is responsible for all wide area network services planning, selection, and implementation for all state agencies, including institutions under the control of the State Board of Higher Education, counties, cities, and school districts. With respect to a county, city, or school district, wide area network services are those services necessary to transmit voice, data, or video outside the county, city, or school district. The department is also responsible for computer support services, host software development, statewide communications services, standards for providing information to other state agencies and the public through the Internet, technology planning, process redesign, and quality assurance.

1999-2000 Study

The Legislative Council Information Technology Committee appointed for the 1999-2000 interim reviewed information regarding the implementation of a new statewide information technology network, major information technology projects, the financing of information technology projects, the statewide information technology plan, the Information Technology Department's business plan, and initiatives of the department, including e-government, enterprise resource planning, geographic information systems, electronic document management systems, and information technology purchasing.

The committee recommended 2001 Senate Bill No. 2043, which, as introduced, required the Information Technology Committee to review the cost-benefit analysis of any major project of the State Board of Higher Education or any institution under the control of the board if the project significantly impacts the statewide wide area network, impacts the statewide library system, or is an administrative project. The bill also authorized the Information Technology Department to purchase equipment and software through financing arrangements, specified additional requirements that must be included in the department's business plan, replaced the Statewide Wide Area Network Advisory Committee with the Statewide Information Technology Advisory Committee, changed the deadline for agencies submitting information technology plans from January 15 to March 15 of each even-numbered year, and clarified that information collected by the Information Technology Department from agencies regarding information technology standards, compliance review, and plans is exempt from open records requirements.

2001 Legislation

The 2001 Legislative Assembly adopted Senate Bill Nos. 2043 and 2251 and House Bill No. 1015 relating to the duties of the legislative Information Technology Committee and the operations of the Information Technology Department.

Senate Bill No. 2043, which was recommended by the 1999-2000 interim Information Technology Committee, included all the provisions as introduced and in addition requires the Information Technology Department to prepare an annual report regarding major information technology projects, rates, and benefits and to develop performance measures to assist the Legislative Assembly in determining the effectiveness and efficiency of the department's operations.

Senate Bill No. 2251 created a new Educational Technology Council to replace the Educational Telecommunications Council and provided that funding appropriated by the 2001 Legislative Assembly for the Division of Independent Study, SENDIT Technology Services, and the Center for Innovation in Instruction be transferred to the Information Technology Department for use by the Educational Technology Council.

Section 28 of House Bill No. 1015 requires the Information Technology Department to provide the Office of Management and Budget an analysis of the technology costs and savings involved in proposed building construction projects.

STUDY OF THE TECHNOLOGICAL CAPACITY AND NEEDS OF THE STATE

The Legislative Council assigned the committee the study of the technological capacity and needs of the state as provided in House Concurrent Resolution No. 3057 and directed the committee to expand the study to include the delivery of library services by technology. The study was to include an analysis of the state, national, and global information technology trends, an examination of the future short-term and long-term information technology needs of the state, a review of the development capacity and needs in the various regions of the state, an analysis of changes in the role of communications, media, networks, and public utilities, and a review of the public policy with respect to the role of regulation and deregulation.

In response to the study directives, the committee reviewed information regarding:

Information technology services, including information on current coverage areas, planned coverage areas, service rates, service trends, service issues and barriers, and the desired role of government in information technology services.
Information technology service regulations, issues, and trends.
The potential for wireless tower sharing.
Commercial use of the statewide information technology network.
Key trends impacting technology in the near future and the general impact of technology on state government.
A citizen and business survey completed by the University of North Dakota Social Science Research Institute regarding Internet accessibility, current and planned use of the Internet, barriers to the use of the Internet, desire for on-line government applications, and trends in the use of information technology.
The delivery of library services by technology.

Information Technology Services

The committee received information from representatives of Dakota Carrier Network, Qwest, Midcontinent Communications, Western Wireless Corporation, Extend America, Monet Mobile Networks, AT&T, Northwest Communications Cooperative, Polar Communications, and Consolidated Telcom regarding issues relating to information technology services, including current coverage areas, planned coverage areas, service rates, service trends, service issues and barriers, and the desired role of government in information technology services. The committee learned:

Dakota Carrier Network is a broadband carrier, not an Internet service provider, that operates a fiber optics communications network to provide broadband services to all regions of North Dakota.
Qwest provides digital subscriber line (DSL) service to individuals in the Bismarck, Grand Forks, Fargo, and West Fargo areas. Qwest believes the expansion of broadband services is difficult because individuals are not willing to pay for broadband services, and Qwest is required to share its information technology network infrastructure with other service providers.
Midcontinent Communications provides cable television services and information technology services to individuals in North Dakota and South Dakota. The information technology services include cable modem high-speed Internet services and private data network services. Midcontinent Communications believes barriers to deployment of information technology in North Dakota include the lack of market density, the limited number of major business customers in small communities in need of broadband services, and regulatory control and jurisdiction. Midcontinent Communications suggested government play a significant role in the development and deployment of information technology services by working with all providers of services and restraining any desire to tax the industry before development is complete.
Western Wireless Corporation has made a significant investment in North Dakota through the development of a wireless infrastructure, the introduction of new digital technologies, and the expansion of coverage in rural areas.
Extend America, a Bismarck-based company, plans to invest in a digital wireless high-speed technology infrastructure in North Dakota, South Dakota, Montana, Wyoming, and Nebraska. Extend America believes it is important to build the information technology infrastructure of the state to provide access to education and medical care, and the Legislative Assembly's responsibility is to develop policies to promote growth in the information technology industry.
Monet Mobile Networks, a wireless carrier that provides high-speed, data-only mobile Internet service, launched a wireless technology in Fargo, North Dakota, and Sioux Falls, South Dakota, in January 2002 and planned to launch the technology in Grand Forks and Bismarck, North Dakota, by September 2002.
AT&T completed a $50 million network upgrade in North Dakota in 2000 by constructing a fiber optics backbone infrastructure across the state from east to west. AT&T offers Internet access through a variety of technologies, including DSL, direct private line access, Ethernet, or AT&T's ATM or frame-relay services.
Northwest Communications Cooperative provides Internet services to customers through dial-up service, DSL service, and wireless DSL service. The DSL service is available to 60 to 70 percent of the individuals in the cooperative, and the wireless DSL service is available to 90 to 95 percent of those individuals.
Polar Communications expanded into the Mayville and Portland areas by investing $3.5 million in infrastructure to provide telephone, cable television, and cable high-speed Internet services. In addition DSL service or wireless DSL service is available to approximately 98 percent of the individuals in the cooperative's coverage area.
Consolidated Telcom provides DSL service to individuals in Dickinson, New England, Rhame, Killdeer, Halliday, Scranton, Dodge, South Heart, Watford City, Bowman, Regent, Mott, Hettinger, and Richardton and wireless DSL service to individuals in Ladd, Amidon, Reeder, Manning, Dunn Center, and Grassy Butte.

Information Technology Service Regulations, Issues, and Trends

The committee received information regarding information technology service regulations, issues, and trends. The committee learned in regard to information technology service regulation in North Dakota, services basically fall into two categories--essential and nonessential. The essential services are largely regulated services that include basic telephone rates and interstate switched access. The services beyond those are considered nonessential and in North Dakota that means the services are unregulated. In regard to information technology trends the committee learned there are four proceedings before the Federal Communications Commission that will have a large impact on the regulatory framework for broadband services. The proceedings involve the treatment of cable modem service, the treatment of incumbent local exchange carriers, the review of the unbundled network elements, and the review of Internet access providers using the traditional telephone network as a platform.

Potential for Wireless Tower Sharing

The committee received information regarding the potential for wireless tower sharing and learned there are 40 state-owned radio towers in the state used for mobile public safety communications and for State Radio Communications law enforcement communications. The Department of Transportation does not have a formal policy regarding state-owned radio tower sharing, instead the department reviews requests to use state-owned radio tower sites on a case-by-case basis. The department has allowed the United States Fish and Wildlife Service to use four radio tower sites near national wildlife refuges, and the department has signed an agreement with Adams County and the Rural Economic Area Partnership Investment Board for the placement of wind-monitoring devices on the state-owned radio tower facility in Mott.

Commercial Use of the Statewide Information Technology Network

The committee received information regarding commercial use of the statewide information technology network. The committee learned that Dakota Carrier Network believes the private sector should be responsible for providing commercial broadband services instead of allowing different entities to be connected to the statewide information technology network. The Valley City-Barnes County Development Corporation believes private sector companies in communities where interactive video services are not available should be able to utilize the state's interactive video services at a state "postal rate."

Key Trends Impacting Technology and the Impact of Technology on State Government

The committee received information regarding the key trends impacting technology in the near future and the general impact of technology on state government. The committee learned the trends in federal legislation relating to information technology include the Telecommunications Act of 1996 that established a federal universal service fund and the 2002 farm bill that included provisions to provide United States Department of Agriculture grants, loans, and loan guarantees at 4 percent, or market rate interest, to construct, improve, and acquire facilities and equipment to provide broadband service to rural communities with fewer than 20,000 residents. The committee also learned state government may be impacted by other emerging information technology issues such as the identification of security and fraud and the addressing of privacy concerns.

Citizen and Business Information Technology Survey

The Information Technology Department and the Legislative Council contracted with the University of North Dakota Social Science Research Institute for a citizen and business information technology survey regarding Internet accessibility, current and planned use of the Internet, barriers to the use of the Internet, desire for on-line government applications, and trends in the use of information technology.

The committee received the resulting report entitled E-Government Services and Computer and Internet Use in North Dakota that provides information regarding Internet usage in North Dakota, the types and speeds of Internet connectivity in North Dakota, attitudes toward and behaviors in using computers and the Internet for various services, and how residents may use e-government services. The results of the report were based on 801 random telephone interviews conducted in April and May 2002 with North Dakota residents aged 18 or older. Of those, 400 comprised a random sample of urban residents and 401 represent a random sample of residents from rural areas. The survey indicated that older and poorer residents display a lower use of computers and the Internet, residents are extremely sensitive to the privacy- and security-related issues of e-government applications, and residents prefer advertising or charging the individuals who use electronic services as means to support e-government services.

The committee also received a report entitled North Dakota Business Use of Information Technology that provided information regarding the percentage of businesses that do and do not use computer applications and the Internet, the types and speeds of Internet connectivity, attitudes toward and behaviors in using computers and the Internet for various services, and how business may use e-government services. The results of the report were based on telephone interviews of 875 North Dakota businesses stratified by employee size conducted in April and May 2002. The target business survey populations were defined as all private sector businesses with 100 or more employees and a random sample of businesses with 99 employees or fewer. The survey indicated that although computer and Internet use among North Dakota companies is at high overall levels, firm employee size and community location factors differentiate how or whether a company uses Internet technologies. The survey also indicated that dial-up modems are the predominant Internet connection and a majority of businesses are satisfied with their connection speeds and Internet providers. Businesses are supportive of e-government services, but they are cautious with respect to trusting the government's handling of personal and financial information.

The University of North Dakota Social Science Research Institute recommended the state develop and market strategies to call attention to privacy and security standards that address citizen and business concerns, develop strategies to target groups using the Internet the least, and continue to measure Internet use in order to assess who does and does not use the Internet and why.

Delivery of Library Services by Technology

The committee received information regarding the delivery of library services by technology and learned in October 1995 a Library Study Steering Committee met to discuss concerns and issues within the state's library community. The committee's participants defined a set of priorities for statewide library services in a planning document entitled Library Vision 2004. The number one priority of the document was to create a systemwide community of strong libraries working together. One of the methods used to accomplish the priority was the development of a comprehensive statewide electronic bibliographic data base that allows individuals to simultaneously search On-line Dakota Information Network (ODIN), Bismarck, Minot, and Williston library consortiums.

The committee learned libraries are using technology to utilize on-line magazines, newspapers, and references resources, utilize electronic books, establish a statewide virtual library catalog, assist with resource sharing among libraries, and perform day-to-day functions such as checking in and checking out books, tracking overdue material, and recording fines. The second phase of the statewide information technology network implementation includes the connection of 25 public libraries. The number of libraries to be connected is approximately 78 fewer than the original estimate of 103 made during the 2001 Legislative Assembly due to many libraries not being technically equipped or large enough to necessitate connection to the statewide information technology network. The committee also learned libraries will be expected to continue services to the state's senior citizen population, adapt to the needs of Generation Y (ages 10 through 17), and be the center of the educational process.

Other Information

In relation to the committee's study of the technological capacity and needs of the state, the committee received information regarding the federal universal service fund. The committee learned the Federal Communications Commission, under direction from the United States Congress, established a federal universal service fund to ensure that all people in the United States have access to fast, efficient, nationwide communications services at reasonable charges.

The federal universal service fund programs include the high-cost program, low-income program, rural health care program, and schools and libraries program. The high-cost program provides support to telecommunications service providers that serve residents in areas of the United States that are more costly to serve. The low-income program assists eligible low-income individuals with establishing and maintaining of telecommunications services by discounting services provided by local telephone companies. The rural health care program provides support to telecommunications companies that provide reduced rates to rural health care providers for telecommunications services related to the use of telemedicine and telehealth. The schools and libraries program provides support to telecommunications companies that make telecommunications affordable for schools and libraries in the United States.

All companies that provide telecommunications services between states, including long-distance telephone companies, local telephone companies, wireless telephone companies, paging companies, and pay telephone providers, are required to provide contributions to the federal universal service fund. The amount of contributions is based on a specific percentage or contribution factor of interstate and international revenues. The companies may recover their federal universal service fund contribution from their customers, and the actual percentage or fee that a company recovers from its customers may be different from the contribution factor.

All telecommunications companies providing eligible universal services may receive distributions from the federal universal service fund. For calendar year 2001 North Dakota received federal universal service funding totaling $30,716,000, of which $27,732,000 was for the high-cost program, $1,389,000 was for the low-income program, $341,000 was for the rural health care program, and $1,254,000 was for the schools and libraries program.

Also in relation to the committee's study of the technological capacity and needs of the state, the committee received information from Mr. Dewayne Hendricks, Chief Executive Officer, Dandin Group, Fremont, California, regarding information technology initiatives. The committee learned the Federal Communications Commission can be seen as a policy roadblock because the commission's rules are based upon technologies present in the 1930s. The committee also learned an Advanced Networking With Minority-Serving Institutions wireless project was completed with the Fort Berthold Community College in New Town and the Turtle Mountain Community College in Belcourt. The project developed a wireless infrastructure at each college to provide high-speed wireless services.

Conclusion

The committee does not make any recommendation regarding its study of the technological capacity and needs of the state.

INFORMATION TECHNOLOGY DEPARTMENT BUSINESS PLAN AND PERFORMANCE MEASURES

North Dakota Century Code Section 54-59-06 requires the Information Technology Department to develop and maintain a business plan, and Section 9 of 2001 Senate Bill No. 2043 requires the Information Technology Department to develop performance measures to assist the Legislative Assembly in determining the effectiveness and efficiency of the department's operations. Pursuant to those directives the department prepared a business plan that is designed around four business drivers and includes performance measures, objectives, and strategies. The following is a summary of the plan's business drivers and related performance measures, including information on the status of the performance measures:

Business Driver - Performance Measures	Baseline (2001)	Status as of July 2002	Target
Provide value to our customers - Continually improve the quality and timeliness of Information Technology Department's products and services while maintaining competitive rates
Percentage of strategic initiatives completed	2000 - 35% 2001 - 50%	21.9% (with six months remaining)	65%
Percentage of completed strategic initiatives meeting objectives	Data not available	100% (with six months remaining)	2002 will establish baseline
Percentage of system availability	98.82%	98.89%	98.90%
Percentage of Information Technology Department projects completed on time within scope and budget	Data not available	76% on time 83% on budget	To be determined
Statewide direction and leadership - Provide strategic information technology direction for government and education in North Dakota and influence the deployment of information technology throughout the state
Number of coordinated statewide initiatives	6	8	Maintain/increase
Information Technology Department's compliance with legislative mandates	100%	100%	100%
Information technology percentage of overall state budget	4.64%	4.64%	Monitor
Percentage of large information technology projects completed successfully	100%	100%	100%
Number of web-enabled applications available to citizens	19	33	Increase
Customer relationships and satisfaction - Understand customer business requirements and raise awareness of technologies available in order to provide products and services that will meet or exceed their expectations and assist in accomplishing their goals
Percentage of reported problems resolved within support center (unassigned)	72%	66.2%	75%
Percentage of reported and assigned problems responded to within one hour	74%	87.5%	90%
Median time working hours required to resolve reported and assigned problems	2.53	1.98	2.25
Percentage of statewide information technology budgets directed to the Information Technology Department	1999-2001 biennium - 25% 2001-03 biennium - 31%	31%	Monitor
Customer satisfaction indexes (percentages satisfied or very satisfied) relating to:
Cost	90%	85.3%	92%
Timeliness	96.3%	94.9%	97%
Quality	96.5%	94.6%	97%
Knowledge	97.6%	95.9%	98%
Professionalism and courtesy	100%	98.6%	100%
Learning and growth - Achieve an efficient, motivated, and educated workforce with the knowledge, skills, and ability to meet current and future challenges
Voluntary employee turnover rate	4%	2.4%	Maintain 4%-6%
Average training hours and dollars spent per employee	$2,000 per FTE	$2,700 per FTE	$2,000 per FTE
Employee satisfaction index	1.96	1.98	2

INFORMATION TECHNOLOGY DEPARTMENT ANNUAL REPORT

North Dakota Century Code Section 54-59-19 requires the Information Technology Department to prepare an annual report on information technology projects, services, plans, and benefits. Pursuant to that directive the department prepared a plan that contains:

An executive summary describing and quantifying benefits the state is realizing from investments in information technology.
Information on the state's information technology planning process.
A status report on the costs and benefits of large information technology projects, including a summary of each project completed in the last 12 months and information on ongoing large information technology projects.
Information on the department's performance, including a rate comparison and information on the department's performance measures.

The committee learned the department tracks and monitors the cost and the revenue for each service to ensure that one service is not subsidizing another service. The federal government does not allow the department to charge rates that generate revenues in excess of costs; therefore, the department monitors its cash balances and adjusts rates accordingly. The department also monitors what other entities are charging for similar services in an effort to maintain quality services at a fair price. The following is a summary of rate comparisons for the 16 services that generate approximately 73 percent of the department's total revenue:

Service	North Dakota Information Technology Department Rates	South Dakota Bureau of Information Technology Rates	Montana Information Technology Services Division Rates
Systems analyst/programmer	Systems analyst - $55.60 per hour Programmer - $51.60 per hour	Software developer - $46.00 per hour	Agencies hire their own developers as employees or they contract for the service from local providers
Central computer central processing unit (CPU) rate	Batch CPU - $.70 per second CICS CPU - $.70 per second ADABAS CPU - $.75 per second TSO CPU - $.70 per second	Batch CPU - $.28 per second CICS CPU - $.34 per second	Batch CPU - $1.12 per second CICS CPU - $.23 per second ADABAS CPU - $.61 per second TSO CPU - $1.38 per second
Network access	Device fee - $28.40 per device per month DSL service - Actual cost (ranges from $40-$120) ATM T-1 service - $840 per month	Device fee - $21 per device per month User fee - $54 per user per month DSL service - $125 per month Frame relay T-1 service - $495 per month	Device fee - $72.60 per device per month DSL service - $360 per month ATM T-1 service - $1,140 per month
Telephone service	Telephone circuit - $21 per device per month Speaker function - $2 per month Display function - $1 per month Voice mail (unlimited) - $3 per month	Telephone circuit - $13 per device per month Speaker function - Actual cost Display function - Actual cost Voice mail - Actual cost	Telephone circuit - $9 per device per month Speaker function - $11 per month Display function - $7 per month Voice mail (three-minute limit) - $5 per month Voice mail (six-minute limit) - $8 per month Voice mail (eight-minute limit) - $10 per month
Long distance	In state - $.06 per minute Out of state - $.06 per minute 800 service - $.10 per minute	In state - $.07 per minute Out of state - $.08 per minute 800 service - $.14 per minute	In state - $.135 per minute Out of state - $.135 per minute 800 service - $.10 per minute

POLICIES, STANDARDS, AND GUIDELINES

North Dakota Century Code Section 54-59-09 requires the Information Technology Department to develop statewide information technology policies, standards, and guidelines based upon information received from state agencies and institutions. Except with respect to academic and research uses of information technology at the institutions under the control of the State Board of Higher Education, each executive branch state agency and institution is required to comply with the policies and standards developed by the department.

The department has adopted policies, standards, and guidelines in a variety of areas and continues to update and adopt new policies, standards, and guidelines as necessary. Policies, standards, and guidelines adopted include guidelines for information technology purchasing, contract guidelines for information technology projects, information technology project management standards, and electronic document management system standards.

In addition the department is in the process of implementing an enterprise architecture for providing an overall plan for the integration of information and services at the design level across agency boundaries. The enterprise architecture is to facilitate interdepartment information sharing and interoperability and does not specify standards for unique department requirements.

INFORMATION TECHNOLOGY INITIATIVES

The committee is authorized to review the activities of the Information Technology Department; and therefore, the committee received information from the department regarding the following information technology initiatives.

Statewide Information Technology Network

North Dakota Century Code Section 54-59-08 requires each state agency and institution that desires access to wide area network services and each county, city, and school district to obtain those services from the Information Technology Department. The Chief Information Officer is authorized to exempt a city, county, or school district from that requirement if its current wide area network services are more cost-effective or more appropriate for the specific needs of that entity than wide area network services available from the department.

In 1984 the Higher Education Computer Network was integrated into the statewide network, which was initiated in 1982, and the North Dakota Information Network was created to jointly manage the network. North Dakota was the first state with combined state government and higher education networks. In 1985 the network was extended to all counties to provide connectivity between county social service boards and the Department of Human Services.

In 1991 the network's backbone was converted to digital facilities, and the Interactive Video Network was implemented on these new digital facilities. In 1992 the North Dakota Information Network selected AT&T's Software Defined Network (SDN) long-distance voice services, and North Dakota became an early adopter of virtual private network technology. In 1994 the North Dakota Information Network committed as the anchor tenant for U S West Communications (now known as Qwest) to establish a statewide frame-relay network. Also, in 1994 the North Dakota Information Network provided Internet access from the state network, and Northwest Network was selected as the Internet provider.

In 1996 all buildings on the State Capitol grounds with the exception of the Governor's residence were connected with fiber optics cable, and in 1997 state government entered a partnership with Montana-Dakota Utilities Company for fiber optics cable connection of 10 state government buildings in Bismarck to the Capitol. In 1998 the state moved its cross-LATA connections to Dakota Carrier Network.

On March 27, 2000, the department issued a request for proposals for a new ATM T-1 statewide information technology network. The contract proposal was divided into four components, and the department received 12 responses to the four components. The bid awards were:

Contract Proposal Component	Bid Awards
Internet access component	Sprint
Video-bridging component	Qwest
Customer premises equipment component	Corporate Technologies
Transport component	Dakota Carrier Network

The department selected the name StageNet for the new statewide information technology network. "Stage" stands for statewide technology access for government and education. The implementation of the statewide information technology network involves connecting approximately 194 cities and 500 physical locations across the state. The first phase of the implementation, which was completed in December 2000, involved connecting 64 cities and 218 physical locations. The second phase of the implementation, which will be completed by the end of November 2002, involves connecting 202 kindergarten through grade 12 schools and 25 public libraries. The standard access connection to the statewide information technology network is an ATM T-1 connection; however, the department is utilizing the Internet and virtual private network technology for providing information technology services to customers in rural areas.

Regarding the state's e-rate reimbursement funding for the statewide information technology network, the department was required to complete two forms--Form 470 and Form 471--to receive e-rate reimbursement funding for July 1, 2001, through June 30, 2002. Form 470 was properly filed in December 2000, and Form 471 was properly filed electronically on January 18, 2001. The state's paper filing of Form 471, however, was not postmarked by January 18, 2001, and therefore, the department was notified on October 9, 2001, that its application for e-rate reimbursement funding for fiscal year 2002 was not approved. The department filed an appeal and a request for waiver with the Federal Communications Commission on October 18, 2001, but the department was notified that its appeal was denied. The state's e-rate reimbursement funding for the second year of the 2001-03 biennium was approved, and the department was notified that the reimbursement will fund approximately 63 percent of related costs instead of 50 percent as estimated during the 2001 Legislative Assembly. The department estimates a balance of $302,837 available on June 30, 2003, due to the higher than anticipated e-rate reimbursement percentage for fiscal year 2003 and the timing of public library connections to the statewide information technology network. The balance available on June 30, 2003, would have been $1,692,612 if the state would have received e-rate reimbursement funding for both years of the biennium.

Enterprise Resource Planning System - Connect North Dakota

An enterprise resource planning (ERP) system is a multimodule system that includes a relational data base and applications for managing purchasing, inventory, personnel, financial planning, and other management aspects. The ERP system initiative of the Information Technology Department for the state will integrate the core financial and administrative applications of state government, higher education, and public education, including financial management, purchasing, budgeting, human resources, payroll, asset management, and student information functions, into one multisuite software system that will enable all entities to share and use data.

The department issued an ERP system request for proposal on September 18, 2000. The department reviewed the request for proposal responses and selected three finalists--SCT, Oracle, and PeopleSoft. In April 2001 the three finalists submitted their final proposals. Shortly thereafter the request for proposal evaluation process was halted to explore the possibility of entering into a joint venture partnership with Microsoft-Great Plains for development of an ERP system. On October 17, 2001, consideration of the joint venture partnership was discontinued since it would take Microsoft-Great Plains up to 24 months to develop the human resources and financial components of the ERP system and approximately four to six years to complete the ERP system integration. The department returned to the original request for proposal evaluation process and reduced the finalists to two--Oracle and PeopleSoft. Based on a review of final proposals, the department awarded contracts to PeopleSoft for the purchase of an ERP software system and Maximus for implementation consultant services.

The estimated vendor fees and maintenance costs associated with the ERP system for the 2001-03 biennium are approximately $12.4 million, $4.9 million more than the 2001-03 legislative general fund appropriation of $7.5 million. In order to fund the costs associated with the system, the department received approval from the Budget Section to enter into a finance agreement with PeopleSoft for approximately $4.9 million. Under the finance agreement, the department paid PeopleSoft $150,000 on August 15, 2002, and will pay the remainder of $4,746,053 debt plus related interest of $117,967 on August 1, 2003. In addition the department, along with other state agencies and higher education institutions, are reallocating funds within their 2001-03 biennium budgets to fund personnel, training, and equipment costs associated with the initiative.

The estimated amount of funding needed for the ERP system initiative for the 2003-05 biennium is approximately $20 million. Due to the anticipated limited growth in general fund revenue for the 2003-05 biennium, the committee was informed the department and the Governor are considering ways to finance the system, including the issuance of 10-year revenue bonds. If revenue bonds are issued, the estimated debt service requirement would be $5.2 million per biennium, of which approximately 55 percent would be the responsibility of higher education institutions and approximately 45 percent would be the responsibility of state agencies. The higher education institutions have instituted a student fee for paying their portion of the debt service, and state agencies would be assessed a fee for their portion of the debt service beginning with the 2005-07 biennium. The fee may be assessed agencies on a per FTE employee basis.

The implementation schedule for the ERP system initiative began with a pilot of two selected higher education institutions, Valley City State University and Mayville State University, implementing all three of the ERP system components--financial, human resources, and student administration--and a pilot of one selected state agency, Office of Management and Budget, implementing the financial and human resources components of the system. The implementation of the ERP system is on schedule and on budget with no imminent or anticipated delays identified, and the pilot phases are to be fully functional by April 2003.

In association with the implementation of the ERP system, the Governor sent a letter to all state agencies encouraging them to eliminate redundant systems that can be replaced by the ERP system and to reengineer business processes. The Office of Management and Budget has determined there are approximately 378 information technology systems in state government. Of those 378 systems, the department estimates that 164 systems will be directly impacted by the ERP system, 204 systems will not be impacted by the ERP system, and 10 systems need to be further analyzed.

Also in association with the implementation of the ERP system, the state needed to determine if the existing budget preparation system, the statewide integrated budget and reporting (SIBR) system, should be retained and interfaced with the ERP system or if the budget preparation component of the ERP system should be implemented for the state. The Office of Management and Budget and the Legislative Council staff reviewed the SIBR system and the ERP system budget preparation module. The SIBR system provides for the publication of the executive budget. The state plans to proceed with the SIBR system and when the time comes to interface the budget preparation system with the ERP system, the state plans to reevaluate both products.

PowerSchool Application Initiative

The PowerSchool application is a web-based student information system for kindergarten through grade 12 that includes features such as student scheduling, student attendance, and student performance. The Information Technology Department serves as the application service provider, and the initiative's cost to school districts is on a per student per year basis. The application may be integrated with the human resources and financial components of the state's ERP system for a complete software suite for kindergarten through grade 12. The Bismarck School District was selected as the pilot school district and implemented the application in August 2001. Eight other school districts have since implemented the application, and 43 school districts are interested in implementing the application.

Geographic Information System Initiative

A geographic information system (GIS) is a system capable of capturing, storing, updating, manipulating, analyzing, and displaying all forms of geographical information. The Information Technology Department received a $750,000 general fund appropriation for the 2001-03 biennium for a GIS initiative, including the employment of a GIS coordinator position and the creation of a centralized data hub for storing of GIS information. The department also received a federal grant from the Division of Emergency Management and the Federal Emergency Management Agency in the amount of $451,000 to purchase hardware and software to house GIS data for the Devils Lake region.

The department hired a GIS coordinator to work closely with the GIS Technical Advisory Committee, which was formed by Governor Edward T. Schafer in 1995 and reinstated by Governor John Hoeven in July 2001, to coordinate GIS activities and establish a GIS centralized data hub. The design and development of the centralized data hub began in November 2001, and full implementation of the initiative was completed in October 2002. The benefits of the centralized data hub include a reduction in costs due to agencies not developing individual infrastructures, an increased accessibility to data, and an improved distribution of information to the public. The committee received a demonstration of the functionality of the GIS centralized data hub.

Electronic Document Management System Initiative

An electronic document management system is a collection of technologies that enables functions such as imaging, document management, forms processing, electronic forms, computer output to laser disk, and workflow. The Information Technology Department received a special funds appropriation of approximately $1.3 million for the 2001-03 biennium for implementation of an electronic document management system initiative, and the department is working with the Tax Department, Department of Human Services, Department of Transportation, Job Service North Dakota, Secretary of State, and Public Employees Retirement System on electronic document management system projects. The benefits of the initiative include improved access to information, automation of manual tasks, and improved efficiency of information processing.

Criminal Justice Information Sharing Initiative

In the fall of 2000 the state received a $25,000 grant from the National Governors Association to develop a criminal justice information sharing plan. The plan that was established outlined short-term objectives and the necessary next steps to implement criminal justice information sharing. Subsequently the Information Technology Department was awarded a $310,000 federal grant from the United States Department of Justice for development of a technical architecture, data standards, and implementation plan necessary for criminal justice information sharing. In September 2001 the department issued a criminal justice information sharing request for proposals, and after receiving oral presentations from three selected finalists, the department signed a contract with MTG Consulting in the amount of $175,000 for development of a technical architecture, data standards, and implementation plan for criminal justice information sharing. The department also signed a contract with Nexus Innovations in the amount of $47,500 for project coordination services.

The implementation plan developed by MTG Consulting provides that common components of the initiative should be governed by the Criminal Justice Information Sharing Board and noncommon components should be governed and funded by the respective primary agency. The department provided that for the 2001-03 biennium, related funding appropriated by the 2001 Legislative Assembly will be directed toward building a criminal justice information sharing infrastructure and implementing previously identified projects. One of the department's new FTE positions authorized for the 2001-03 biennium, which was originally intended to be a cybercrime investigator, will be used for a criminal justice information sharing director. The department indicated that possible funding sources for criminal justice information sharing activities in future bienniums include fees from criminal history records checks and concealed weapons permits currently deposited in the general fund and fees collected from nonstate agencies for providing information technology hosting services.

E-Government Initiatives

E-commerce is the use of internetworked computers to create and transform business relationships. E-commerce applications are designed to provide business solutions to improve the quality of goods and services, increase the speed of service delivery, and reduce the cost of business operations. The Information Technology Department suggested an initiative to be considered for the 2003-05 biennium is the establishment of an enterprise fund that could be used to fund the development of e-government applications that integrate services of several state agencies. An example of such an application would be an on-line "Green Book" application that would allow individuals to complete and submit all of the new business registration forms found in the state's "Green Book" via the Internet. At the present time the forms may be accessed on-line by individuals; however, the forms may not be electronically submitted. The estimated cost for developing electronic submission for all the forms is approximately $240,000 to $450,000.

INFORMATION TECHNOLOGY DEPARTMENT COORDINATION OF SERVICES

North Dakota Century Code Section 54-59-12 provides for the review and coordination of information technology between the Information Technology Department, higher education, and political subdivisions. Pursuant to that directive the committee received information from representatives of elementary and secondary education, higher education, the judicial branch, and political subdivisions regarding information technology activities.

Elementary and Secondary Information Technology Initiatives

The committee learned the Educational Technology Council is responsible for coordinating education technology initiatives for elementary and secondary education. The council's education technology initiatives include the merger of Center for Innovation in Instruction and SENDIT Technology Services into EduTech, the funding of six new video consortia and the expansion and enhancement of five existing video consortia, the converting of courses to an on-line format by the Division of Independent Study, and the implementation of a virus protection plan for all kindergarten through grade 12 schools.

Higher Education Information Technology Initiatives

The committee learned the University System plans on developing an information technology plan that focuses on the State Board of Higher Education's strategies and will be integrated into the statewide information technology plan. The committee also learned the University System's existing ODIN library system, PALS, will no longer have system support after June 30, 2004. The University System issued a request for proposals for a library system replacement and has selected three finalists. The estimated cost of a replacement system is $1,317,000, of which $900,000 will be funded from the ODIN libraries and $417,000 will be requested from the 2003 Legislative Assembly.

Judicial Branch Information Technology Initiatives

The committee learned the judicial branch information technology initiatives for the 2001-03 biennium include the integration of the East Central Judicial District into the unified court information system (UCIS), increasing the number of counties using the UCIS for daily workload processing by 10, from 30 to 40, and the integration of Grand Forks County onto the judicial branch's AS400 system in Bismarck. In addition the judicial branch anticipates completing a review and analysis of an enhanced records management system initiative in the second half of the 2001-03 biennium for possible implementation during the 2003-05 biennium.

Political Subdivisions

The committee learned the Association of Counties has used a 2001-03 biennium general fund appropriation of $248,000 to provide partial support for the placement of four regional staff in Stark, Williams, Ward, and Walsh Counties to complement the staff in Bismarck and Fargo.

INFORMATION TECHNOLOGY PLANS

North Dakota Century Code Section 54-59-11 requires every executive branch agency to prepare an information technology plan, subject to approval by the department. The plan must be submitted to the department by March 15 of each even-numbered year. The plan must be prepared based on guidelines developed by the department, must emphasize the long-term strategic information technology goals, objectives, and activities for the current biennium and next two bienniums, and must include a list of information technology assets owned, leased, or employed by the entity. The department is required to review each entity's plan for compliance with statewide information technology policies and standards, and the department may require an entity to change its plan to comply with statewide policies and standards or to resolve conflicting directions among plans. Agencies of the judicial and legislative branches are required to file their information technology plans with the department by March 15 of each even-numbered year. Based on the information technology plans, the department must prepare a statewide information technology plan.

The committee received information from the Information Technology Department regarding information technology plans and learned all but two of the plans were received by the March 15, 2002, due date and the remaining two plans were received within a week of the due date. The department will present to the 2003 Legislative Assembly a statewide information technology plan that will communicate a shared vision between state government, higher education, and kindergarten through grade 12; outline strategic initiatives; provide decisionmakers with criteria for evaluating technology projects; and establish goals and strategies that will serve as a basis for more detailed planning efforts.

In addition the department has decided to change the general direction of information technology planning from a tactical focus to a strategic focus. Under the new direction state agencies will be asked to tie information technology planning to business requirements, and the department will emphasize the development of more formalized business cases for major information technology projects and will conduct postproject reviews to document benefits achieved.

MAJOR INFORMATION TECHNOLOGY PROJECTS

The committee is authorized to review any information technology project or information technology plan. If the committee determines that a project or plan is at risk of failing to achieve its intended results, the committee may recommend to the Office of Management and Budget the suspension of the expenditure of money appropriated for the project or plan. In addition the committee is directed to review the cost-benefit analysis of any major information technology project, which is defined in statute to be an executive or judicial branch agency project with a cost of $250,000 or more in one biennium or a total cost of $500,000 or more or a higher education project that impacts the statewide wide area network, impacts the statewide library system, or is an administrative project.

The committee reviewed quarterly reports of major projects compiled by the Information Technology Department and received information regarding specific projects, including the Health Insurance Portability and Accountability Act (HIPAA), the Department of Public Instruction's student data analysis and reporting system project, the State Radio Communication's statewide plan for public safety communications, and the Job Service North Dakota NDWORKS project. The committee did not recommend the suspension of any project. However, the committee did express concern with respect to the motor vehicle registration and titling system of the Department of Transportation.

The committee learned in regard to the motor vehicle registration and titling system that the Department of Transportation awarded the development contract for the system to Unisys with Revenue Systems, Inc. (RSI) as the application subcontractor. Unisys delivered the finished product in October 2000. In June 2001 as a followup to the implementation of the system, the department entered into a 13-month service agreement in the amount of $275,000 with RSI. Under the agreement RSI was to complete system maintenance and provide system support and maintenance training to the Information Technology Department. The Department of Transportation was notified by RSI in August 2001 that it was unable to complete its contractual obligation as a result of bankruptcy.

As a result of the inability of RSI to complete contract requirements, the Department of Transportation accelerated the process of the Information Technology Department becoming the system's primary support provider. The Information Technology Department contracted with four former RSI employees to complete system maintenance and to train Information Technology Department employees.

The committee asked the chairman of the Legislative Council to request the Attorney General's office to review the related contracts, RSI's inability to complete contract obligations and the related state costs, and to take appropriate action to recover related state costs. The Department of Transportation along with the Attorney General's office worked to recover the additional costs incurred, which totaled approximately $200,000. The Attorney General's office demanded RSI repay costs associated with the unfulfilled service agreement. The Attorney General's office received a response from RSI stating it was sorry for the cost and inconvenience of the situation; however, it would be unable to provide the state with any repayment of costs. The department negotiated with Unisys for reimbursement of additional costs incurred by the department relating to system warranty services performed under the contract with former RSI employees and received a payment from Unisys of $80,000.

911 TELEPHONE SYSTEM STANDARDS AND GUIDELINES

The committee was assigned the responsibility to receive a report from State Radio Communications on any recommended changes in 911 telephone system standards and guidelines pursuant to NDCC Section 57-40.6-11.

Pursuant to that directive the committee received information from State Radio Communications and learned there are no recommended changes to the 911 telephone system standards and guidelines.

PUBLIC SAFETY ANSWERING POINTS COORDINATING COMMITTEE

The committee was assigned the responsibility to receive a report from the Public Safety Answering Points Coordinating Committee on city and county fees on telephone exchange access service and wireless service pursuant to NDCC Section 57-40.6-12.

Pursuant to that directive the committee received information from the Public Safety Answering Points Coordinating Committee and learned the 2001 Legislative Assembly enacted legislation to establish a Public Safety Answering Points Coordinating Committee responsible for reporting information on income and expenditures of the emergency services communications systems in the state. Operating costs for emergency services communications systems for calendar year 2001 were approximately $9.5 million, of which $3.3 million was paid from revenue from wireline 911 fees and $6.2 million was paid from other sources, including county property taxes. The income and expenses for calendar year 2002 are expected to change slightly with the addition of the collection of wireless 911 fees authorized by the 2001 Legislative Assembly.

DEPARTMENT OF PUBLIC INSTRUCTION - PURSUIT OF GRANT FUNDS

The committee was assigned the responsibility to receive reports from the Department of Public Instruction on the department's pursuit of grant funds during the 2001-03 biennium for projects relating to the use of technology in elementary and secondary education in accordance with Section 10 of 2001 Senate Bill No. 2251.

Pursuant to that directive the committee received information from the Department of Public Instruction and learned the department displays grant information received from grant newsletters, educational and technology periodicals, and listservs on its web site and notifies school districts each time the information is updated. The department, in cooperation with the State Board for Vocational and Technical Education, received 10 information technology stations from the Beaumont Foundation. The information technology stations include wireless Toshiba laptops, digital projectors, digital cameras, and printers and were distributed to high-need school districts in the state through an application process. The department also forwarded information regarding implementing the Intel Corporation's Teach to the Future program to EduTech.

OTHER INFORMATION

The committee received information from a representative of the State Board for Vocational and Technical Education regarding the use of funding appropriated by the 2001 Legislative Assembly for information technology technical education. The committee learned the 2001 Legislative Assembly provided a $422,300 general fund appropriation to the State Board for Vocational and Technical Education for information technology technical education. The funds were to be spent based on an agreement between ExplorNet, a nonprofit organization based in North Carolina, and the State Board for Vocational and Technical Education. The agreement provided for $168,300 to be given directly to ExplorNet for administrative uses and $254,000 to be granted to North Dakota schools that started ExplorNet programs.

The committee learned as of July 12, 2002, ExplorNet does not have employees in the state. The committee encouraged the State Board for Vocational and Technical Education to request the return of the funding provided to ExplorNet for administrative uses, and the committee requested the Attorney General's office to review the agreement between the State Board for Vocational and Technical Education and ExplorNet and protect the state's interest. The State Board for Vocational and Technical Education has requested the return of $84,000 of the administrative funding that was to be used for the second year of the 2001-03 biennium. Of the $254,000 for North Dakota schools that started ExplorNet programs, $122,500 was distributed to schools during the first year of the 2001-03 biennium and $131,500 has been obligated to schools for the second year of the biennium.

COMMITTEE RECOMMENDATIONS

The committee recommends House Bill No. 1043 relating to the powers and duties of the Information Technology Department, information technology plans, and the State Information Technology Advisory Committee. The bill changes the reference for the responsibility of establishing a statewide forms management program from the Office of Management and Budget to the Information Technology Department, allows the department to purchase, finance the purchase, or lease equipment, software, or implementation services only to the extent the purchase amount does not exceed 10 percent of the appropriation for the department for that biennium, changes the due date for information technology plans from March 15 to July 15, and repeals NDCC Section 54-59-07 relating to the State Information Technology Advisory Committee.

The committee recommends Senate Bill No. 2038 relating to an exemption of security-related records from the open records requirements. The bill creates a new section to NDCC Chapter 44-04 providing that any portion of a record containing plans, security codes, passwords, combinations, or other security-related data used to protect electronic information and government property and to prevent access to computers, computer systems, or computer or telecommunications networks is exempt from the open records requirements.

The committee recommends Senate Bill No. 2039 to exempt the Information Technology Department from the administrative hearing process. The bill provides that the policies, standards, and guidelines adopted by the department under NDCC Chapter 54-59 are not considered rules under the Administrative Agencies Practice Act.

The committee recommends Senate Bill No. 2040 relating to the Educational Technology Council as the governing entity of the Division of Independent Study. The bill changes the entity responsible for the Division of Independent Study's curriculum approval from the State Board of Public School Education to the Superintendent of Public Instruction, provides that the director of the Division of Independent Study is to carry out the administration of the division in a manner approved by the Educational Technology Council instead of the State Board of Public School Education, and provides that the Department of Public Instruction is responsible for ensuring the Division of Independent Study courses meet state content standards.

The committee recommends Senate Bill No. 2041 relating to the criminal justice information sharing initiative. The bill creates a new section to the North Dakota Century Code establishing a criminal justice information sharing board. The bill increases the fee for a record check from $20 to $25, provides that 80 percent of all fees collected must be deposited in a criminal justice information sharing fund that, subject to legislative appropriations, is available to the Information Technology Department for criminal justice information sharing activities, and provides that the remaining 20 percent of the fees must be deposited in the Attorney General's operating fund. The bill also provides that $10 of the $25 fee for a concealed weapons license must be deposited into the criminal justice information sharing fund instead of the general fund.

The committee recommends Senate Bill No. 2042 relating to exceptions from the definition of telecommunications service and the entities allowed use of the statewide information technology network. The bill provides that higher education institutions may not incur costs for the services provided to others when the services are provided over institution telecommunications infrastructure. The bill also provides that the private sector may be allowed use of kindergarten through grade 12 entities and higher education institutions' interactive videoconferencing services if videoconferencing services are not available from private sector providers, the offering of videoconferencing services should not inhibit future private sector service, and educational and governmental users are given priority in the use of the videoconferencing services.