Bill Summary – FastDemocracy

Fiscal Note
                                       Fiscal Services Division
HF 651 – Cloud Computing Procurement Preference (LSB1409HV)
Staff Contact: Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
Fiscal Note Version – New
Description
House File 651 relates to cloud computing procurement preferences for the Office of the Chief
Information Officer (OCIO).
Division I — The Bill requires the OCIO to procure, when feasible, cloud computing solutions
and other information technology and related services not hosted on premises by the State from
service providers that meet or exceed applicable State and federal laws, regulations, and
standards for information technology. The Bill requires the OCIO to contract with multiple
providers, establishes that the control and ownership of State data stored with cloud computing
service providers is to remain with the State, requires the data to be portable, and requires that
cloud computing service providers store State data on servers located within the United States.
The Bill also establishes or amends the following reporting requirements:
• Requires the OCIO to provide a report to the General Assembly by November 1, 2021, that
  includes a complete inventory of all State information technology applications and
  recommendations for applications that should migrate to cloud-based applications based on
  specified criteria.
• Requires the OCIO to create and submit annual reports regarding the cloud computing
  solutions procured by the Office through cooperative procurement agreements, including the
  following information:
   •   Cost, security, and capacity of the cloud computing solutions.
   •   Compatibility of the cloud computing solutions with the associated State information
       technology applications.
   •   Compliance with State and federal laws, regulations, and standards for information
       technology.
• Amends the OCIO’s quarterly reporting requirement regarding the status of technology
  upgrades or enhancements for State agencies to be an annual report.
Division II — The Bill requires the OCIO to provide salary data and information regarding
expenditures and appropriations to the Department of Management (DOM) and Legislative
Services Agency (LSA).
Background
The National Institute of Standards and Technology (NIST) defines cloud computing in Special
Publication 800-145 as a “model for enabling ubiquitous, convenient, on-demand network
access to a shared pool of configurable computing resources that can be rapidly provisioned
and released with minimal management effort or service provider interaction.” The OCIO has
reported that many State agencies have migrated to cloud services on a case-by-case basis,
including email, human resources, and Web hosting investments.
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Under current law, the OCIO is required to submit a quarterly report to the General Assembly
regarding the status of technology upgrades or enhancements for State agencies and which
agencies are coordinating with the Office. This requirement began on October 1, 2019.
Assumptions
• To manage the implementation of additional reporting requirements and the volume of
  information the OCIO is required to monitor, the OCIO estimates that it may need to hire 3.0
  additional full-time equivalent (FTE) positions: 2.0 Executive Officer 3 FTE positions and 1.0
  Budget Analyst 2 FTE position.
• The OCIO’s salary and benefit estimates are based on hiring decisions at the high end of the
  pay scale for the identified position.
Fiscal Impact
The estimated cost or cost savings from procuring third-party cloud computing solutions cannot
be estimated at this time. The OCIO estimates that cloud computing solutions may be cheaper
in some circumstances but could significantly increase costs in other circumstances. As a
result, the overall aggregate information technology costs cannot be determined.
Table 1 below shows the estimated costs associated with filling the FTE positions on an annual
basis, as reported by the OCIO.
                                           Table 1
                       OCIO Estimated Personnel Costs FY 2022 - FY 2024
                                                         FY 2022     FY 2023     FY 2024
                  Salary and Benefits
                   Executive Officer 3 (2.0 FTEs)   $      250,000   $ 250,000   $ 250,000
                   Budget Analyst 2 (1.0 FTE)              100,000     100,000     100,000
                  Total Salary and Benefits         $      350,000   $ 350,000   $ 350,000
The total cost reflects the full salary plus benefits for each position and assumes hiring at the
high end of the pay grade. Therefore, costs could be expected to vary depending on the type of
hire and selected benefit plans.
Sources
Office of the Chief Information Officer
Department of Management
                                                                         /s/ Holly M. Lyons
                                                                           March 1, 2021
Doc ID 1214177214177
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
                                            www.legis.iowa.gov
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Statutes affected: 
Introduced: 8B.1, 8B.9, 8B.24, 8.6, 262.7