HOUSE BILL NO. 5494

February 18, 2020, Introduced by Reps. Glenn, Whiteford, Huizenga, Sabo and Hammoud and referred to the Committee on Appropriations.

A bill to amend 1984 PA 431, entitled

"The management and budget act,"

(MCL 18.1101 to 18.1594) by adding section 261e.

the people of the state of michigan enact:

Sec. 261e. Not later than October 1, 2021, the department of technology, management, and budget shall do all of the following for each information technology system development vendor contract or maintenance project exceeding $250,000.00:

(a) Establish and document a process for accounting for and monitoring of project cost that aligns with industry best practices and includes all of the following:

(i) Identification and monitoring of cost overruns.

(ii) Change orders and accounting for projects that exceed 1 fiscal year.

(b) Communicate process and defined roles to involved parties.

(c) Ensure information technology project spending is accurately tracked and accounted for, including total project costs, costs for contractors, state employees, hardware, software, and maintenance.

(d) Ensure that the legislature is informed of changes to the scope or budget of a project as required by law.

(e) Ensure that appropriations specific to system-related contracts or projects are only spent on the development and maintenance of that system.