STAND. COM. REP. NO. 652

Honolulu, Hawaii

RE: S.B. No. 284

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committees on Labor and Technology and Government Operations, to which was referred S.B. No. 284 entitled:

"A BILL FOR AN ACT RELATING TO INFORMATION TECHNOLOGY,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Require the Technology Services Consolidation Working Group (Working Group) to:

(A) Decommission the Office of Enterprise Technology Services' (ETS) data center located in the Kalanimoku Building;

(B) Relocate the entire ETS data center to a single, standalone facility; and

(C) Use cloud storage for all state data;

(2) Extend the dissolution date of the Working Group to June 30, 2028; and

(3) Establish requirements for procurement contracts for information technology-related projects.

Your Committees received testimony in support of this measure from the Department of Labor and Industrial Relations, Office of Enterprise Technology Services, Servpac, and Transform Hawai‘i Government. Your Committees received comments on this measure from the State Procurement Office and DR Fortress, LLC.

Your Committees find that ETS' primary data center at the Kalanimoku Building can no longer be brought to acceptable modern data center standards. In order for ETS to ensure the continued, uninterrupted provision of state services, your Committees find that the ETS' primary data center should be decommissioned and relocated to an interim primary, secure, and resilient facility.

Your Committees have amended this measure by:

(1) Placing language that establishes requirements for procurement contracts for information technology-related projects under part X rather than part III, of the State Procurement Code;

(2) Clarifying that the preference for cloud systems to be procured be physically located within the State;

(3) Inserting a definition for "cloud servers and services";

(4) Requiring the Working Group to make recommendations that include partnering with private providers and carriers;

(5) Specifying that the ETS data center be relocated to an interim facility;

(6) Updating the standards of the interim data center facility to include specific resiliency, sea level rise impact, and connectivity requirements;

(7) Clarifying the specifications of the cloud computing to be used by the Working Group by June 30, 2026;

(8) Amending section 1 to reflect its amended purpose;

(9) Inserting an effective date of January 1, 2050, to encourage further discussion; and

(10) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committees note that should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully request that it consider inserting language that provides for the establishment of backup continuity equipment in a secondary geographically-diverse, secure, and resilient facility. It may also review the applicability of federal requirements regarding investments or ties with any countries listed in Export Administration Regulations Supplement No. 1 to Part 740 – Country Group D or E.

As affirmed by the records of votes of the members of your Committees on Labor and Technology and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 284, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 284, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Labor and Technology and Government Operations,

________________________________ ANGUS L.K. MCKELVEY, Chair

________________________________ SHARON MORIWAKI, Chair