(a)   In this section, "Fund" means the Major Information Technology
Development Project Fund.
  (b)   There is a Major Information Technology Development Project Fund.
  (c)   The purpose of the Fund is to support major information technology
development projects.
  (d)   The Fund is a continuing, nonlapsing special fund that is not subject
to § 7-302 of this article.
  (e)   Except as provided in subsection (f) of this section, the Fund consists
of:
    (1)   all moneys appropriated in the State budget to the Fund;
    (2)   moneys received from the sale, lease, or exchange of communication
sites or communication frequencies for information technology purposes
as determined by the Chief and as approved by the Secretary;
    (3)   moneys received as commissions, rebates, refunds, rate reductions, or
telecommunication bypass agreements resulting from information
technology services or purchases;
    (4)   except as provided in subsection (f) of this section, that portion of
moneys earned from pay phone commissions to the extent that the
commission rates exceed those in effect in December 1993;
    (5)   any moneys received and accepted as gifts, contributions, or grants as
authorized under subsection (h) of this section; and
    (6)   general funds appropriated for major information technology development
projects of any unit of State government other than a public
institution of higher education that:
      (i)   are unencumbered and unexpended at the end of a fiscal year;
      (ii)   have been abandoned; or
      (iii)   have been withheld by the General Assembly or the Secretary.
  (f)   The Fund does not include any moneys:
    (1)   received by the Department of Transportation, Maryland Transportation
Authority, or Maryland Public Broadcasting Commission;
    (2)   received by the Judicial or Legislative Branches of State government;
or
    (3)   generated from pay phone commissions that are credited to other
accounts or funds in accordance with other provisions of law or are
authorized for other purposes in the budget or through an approved
budget amendment.
  (g)   (1)   The State Treasurer shall hold and the State Comptroller shall account
for the Fund.
    (2)   The Fund shall be invested and reinvested in the same manner as other
State funds.
    (3)   Investment earnings shall accrue to the credit of the Fund.
  (h)   The Chief:
    (1)   shall administer the Fund in accordance with this section; and
    (2)   subject to the provisions of §§ 2-201 and 3-405 of this article,
may receive and accept contributions, grants, or gifts of money or
property.
  (i)   The Governor shall submit with the budget:
    (1)   a summary showing the unencumbered balance in the Fund as of the close
of the prior fiscal year and a listing of any encumbrances;
    (2)   an estimate of projected revenue from each of the sources specified in
subsection (e) of this section for the fiscal year for which the budget
is submitted; and
    (3)   a descriptive listing of projects reflecting projected costs for the
fiscal year for which the budget is submitted and any estimated future
year costs.
  (j)   Expenditures from the Fund shall be made only:
    (1)   in accordance with an appropriation approved by the General Assembly in
the annual State budget; or
    (2)   through an approved budget amendment under Title 7, Subtitle 2, Part II
of this article, provided that a budget amendment for any project not
requested as part of the budget submission or for any project for which
the scope or cost has increased by more than 5% or $250,000 shall be
submitted to the budget committees allowing a 30-day period for their
review and comment.
  (k)   The Fund may be used for:
    (1)   major information technology development projects; or
    (2)   as provided in subsection (l) of this section.
  (l)   Notwithstanding subsection (c) of this section and except for the cost
incurred in administering the Fund, each fiscal year up to $1 million
of this Fund may be used for:
    (1)   educationally related information technology projects;
    (2)   application service provider initiatives as provided for in Title 9,
Subtitle 22 of the State Government Article; and
    (3)   information technology projects, including:
      (i)   pilots; and
      (ii)   prototypes.
  (m)   A unit of State government or local government may submit a request to
the Chief to support the cost of an information technology project with
moneys under subsection (l) of this section.
  (n)   (1)   On or before November 1 of each year, the Chief shall report to the
Governor and to the budget committees of the General Assembly and
submit a copy of the report to the General Assembly in accordance with
§ 2-1246 of the State Government Article.
    (2)   The report shall include:
      (i)   the financial status of the Fund and a summary of its operations for
the preceding fiscal year;
      (ii)   an accounting for the preceding fiscal year of all moneys from each of
the revenue sources specified in subsection (e) of this section,
including any expenditures made from the Fund; and
      (iii)   for each project receiving moneys from the Fund in the preceding fiscal
year and for each major information technology development project
receiving funding from any source other than the Fund in the preceding
fiscal year:
        1.   the status of the project;
        2.   a comparison of estimated and actual costs of the project;
        3.   any known or anticipated changes in scope or costs of the project;
        4.   an evaluation by the State chief information officer of whether the
project is using best practices; and
        5.   a summary of any monitoring and oversight of the project from outside
the agency in which the project is being developed, including a
description of any problems identified by any external review and any
corrective actions taken.
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