House Bill 1123

AN ACT TO AMEND SECTIONS 25-53-29 AND 25-53-263, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FEES COLLECTED BY THE MISSISSIPPI DEPARTMENT OF INFORMATION TECHNOLOGY SERVICES FOR CERTAIN SERVICES SHALL BE DEPOSITED INTO THE TECHNOLOGY INNOVATION FUND; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 25-53-29, Mississippi Code of 1972, is amended as follows:

25-53-29. (1) For the purposes of this section the term "bureau" shall mean the "Mississippi Department of Information Technology Services." The authority shall have the following powers and responsibilities to carry out the establishment of policy and provide for long-range planning and consulting:

(a) Provide a high level of technical expertise for agencies, institutions, political subdivisions and other governmental entities as follows: planning; consulting; project management; systems and performance review; system definition; design; application programming; training; development and documentation; implementation; maintenance; and other tasks as may be required, within the resources available to the bureau.

(b) Publish written planning guides, policies and procedures for use by agencies and institutions in planning future information technology. The bureau may require agencies and institutions to submit data, including periodic electronic equipment inventory listings, information on agency staffing, systems under study, planned applications for the future, and other information needed for the purposes of preparing the state master plan. The bureau may require agencies and institutions to submit any additional data required for purposes of preparing the state master plan.

(c) Inspect agency facilities and equipment, interview agency employees and review records at any time deemed necessary by the bureau for the purpose of identifying cost-effective applications of electronic information technology. Upon conclusion of any inspection, the bureau shall issue a management letter containing cost estimates and recommendations to the agency head and governing board concerning applications identified that would result in staff reductions, other monetary savings and improved delivery of public services.

(d) Conduct classroom and on-site training for end users for applications and systems developed by the bureau.

(e) Provide consulting services to agencies and institutions or Mississippi governmental subdivisions requesting technical assistance in information technology. The bureau may submit proposals and enter into contracts to provide services to agencies and institutions or governmental subdivisions for such purposes.

(2) The bureau shall annually issue a three-year master plan in writing to the Governor, available on request to any member of the Legislature, including recommended statewide strategies and goals for the effective and efficient use of information technology in state government. The report shall also include recommended information policy actions and other recommendations for consideration by the Governor and members of the Legislature.

(3) The bureau shall make an annual report in writing to the Governor, available on request to any member of the Legislature, to include a full and detailed account of the work of the authority for the preceding year. The report shall contain recommendations to agencies and institutions resulting from inspections or consulting contracts. The report shall also contain a summary of the master plan, progress made, and legislative and policy recommendations for consideration by the Governor and members of the Legislature.

(4) The bureau may charge fees to agencies and institutions for services rendered to them. The bureau may charge fees to vendors to recover the cost of providing procurement services and the delivery of procurement awards to public bodies. The amounts of such fees shall be set by the authority upon recommendation of the Executive Director of the ITS, and all such fees collected shall be paid into the fund established for carrying out the purposes of this section. However, the one percent (1%) fee collected by the bureau on IaaS (infrastructure as a service), PaaS (platform as a service), SaaS (software as a service) and cloud-related professional services provided to state agencies through the bureau's cooperative agreements with vendors shall be paid into the Technology Innovation Fund created in Section 25-53-263.

(5) The bureau may, from time to time, at the discretion of the Executive Director of ITS, contract with firms or qualified individuals to be used to augment the bureau's professional staff in order to assure timely completion and implementation of assigned tasks, provided that funds are available in the fund established for carrying out the purposes of this section. Such individuals may be employees of any agency, bureau or institution provided that these individuals or firms meet the requirements of other individuals or firms doing business with the state through the ITS. Individuals who are employees of an agency or institution may contract with the ITS only with the concurrence of the agency or institution for whom they are employed.

From and after July 1, 2018, the expenses of this agency shall be defrayed by appropriation from the State General Fund. In addition, in order to receive the maximum use and benefit from information technology, expenses for the provision of statewide shared services that facilitate cost-effective information processing and telecommunication solutions shall be defrayed by pass-through funding and shall be deposited into the Mississippi Department of Information Technology Services Revolving Fund unless otherwise specified by the Legislature. These funds shall only be utilized to pay the actual costs incurred by the ITS for providing these shared services to state agencies. Furthermore, state agencies shall work in full cooperation with the ITS to identify information technology to minimize duplication, reduce costs, and improve the efficiency of providing common technology services across agency boundaries.

SECTION 2. Section 25-53-263, Mississippi Code of 1972, is amended as follows:

25-53-263. (1) The purpose of Sections 25-53-251 through 25-53-263 is to establish a Technology Innovation Fund, hereafter referred to as "Fund," to facilitate the development and deployment of innovative technological solutions that enhance the efficiency, transparency and responsiveness of government services. The fund is intended to support collaborative efforts between government agencies, educational institutions, private sector partners and nonprofit organizations in the implementation of digital solutions that drive public sector modernization.

(2) (a) There is * * *~~hereby~~ established the Technology Innovation Fund, which shall be administered by the Mississippi Department of Information Technology Services (ITS) under the authority of the Chief Information Officer (CIO) of the State of Mississippi.

(b) The fund shall provide financial support for projects that utilize technology to address critical needs, improve service delivery, and foster collaboration between public and private entities.

(3) The objectives of the fund shall include, but are not limited to, the following:

(a) Promote the development of digital solutions that improve government service delivery and operational efficiency;

(b) Foster cross-agency and intergovernmental collaboration in the adoption of shared technologies and best practices;

(d) Facilitate research, prototyping, and piloting of emerging technologies such as artificial intelligence, blockchain, data analytics, and cloud computing;

(e) Ensure equitable access to technological innovations that can benefit underserved communities and regions; and

(f) Enhance cybersecurity and protect the integrity of state digital infrastructure.

(4) (a) The following entities shall be eligible to apply for funding under Sections 25-53-251 through 25-53-263:

(i) State and local government agencies;

(ii) Public and private educational institutions;

(iii) Nonprofit organizations engaged in technology-driven public service initiatives; and

(iv) Private sector entities, in partnership with public sector agencies, for collaborative projects.

(b) Applications for funding must demonstrate how the proposed project will contribute to the digital transformation of government services and the achievement of the objectives outlined in Section 25-53-255.

(5) (a) The CIO of the Mississippi Department of Information Technology Services shall establish criteria for the evaluation of proposals and the allocation of funds, prioritizing projects that:

(i) Provide measurable benefits to the public and improve government operations;

(ii) Demonstrate potential for scalability and sustainability;

(iii) Foster partnerships across government, private, and nonprofit sectors; and

(iv) Address urgent challenges in service delivery, efficiency, and cybersecurity.

(b) The fund may allocate grants, matching funds, or loans to eligible projects, as deemed appropriate by the CIO.

(6) (a) Each recipient of funding from the Technology Innovation Fund shall be required to provide periodic reports to the CIO detailing the progress, outcomes, and financial expenditures associated with the funded project.

(b) The CIO shall submit an annual report to the Governor and Legislature detailing the use of the Technology Innovation Fund, including descriptions of funded projects, their outcomes, and recommendations for future innovations.

(7) (a) The fund shall be initially capitalized with an appropriation of monies from the General Fund, with additional funding to be secured from:

(i) Public-private partnerships;

(ii) Federal grants or matching programs;

(iii) Revenues from technological licensing or commercialization resulting from funded projects; * * * ~~and~~

(iv) Donations or contributions from private or philanthropic organizations * * *.;

(v) The fees collected by ITS on IaaS (infrastructure as a service), PaaS (platform as a service), SaaS (software as a service) and cloud-related professional services provided to state agencies through the department's cooperative agreements with vendors; and

(vi) Any other funds made available for the purposes provided in this section.

(b) The fund may also establish a revolving loan mechanism to replenish available resources through repayments from successful projects.

(c) Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

(8) The CIO of the Mississippi Department of Information Technology Services (ITS) is authorized to promulgate any rules and regulations necessary for the implementation and administration of Sections 25-53-251 through 25-53-263.

SECTION 3. This act shall take effect and be in force from and after July 1, 2026.