(a)    There is a Major Information Technology Development Project Fund.

(b)    The purpose of the Fund is to support major information technology development projects.

(c)    The Secretary:

(1)    shall administer the Fund in accordance with this section; and

(2)    subject to the provisions of § 2–201 of this article and § 3A–307 of this subtitle, may receive and accept contributions, grants, or gifts of money or property.

(d)    (1)    The Fund is a special, nonlapsing fund that is not subject to § 7–302 of this article.

(2)    The State Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund.

(3)    The State Treasurer shall invest and reinvest the money of the Fund in the same manner as other State money may be invested.

(4)    Any investment earnings of the Fund shall be paid into the Fund.

(e)    Except as provided in subsection (f) of this section, the Fund consists of:

(1)    money appropriated in the State budget to the Fund;

(2)    as approved by the Secretary, money received from:

(i)    the sale, lease, or exchange of communication sites, communication facilities, or communication frequencies for information technology purposes; or

(ii)    an information technology agreement involving resource sharing;

(3)    that portion of money earned from pay phone commissions to the extent that the commission rates exceed those in effect in December 1993;

(4)    money received and accepted as contributions, grants, or gifts as authorized under subsection (c) of this section;

(5)    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;

(6)    any investment earnings; and

(7)    any other money from any source accepted for the benefit of the Fund.

(f)    The Fund does not include any money:

(1)    received by the Maryland Transportation Authority, Baltimore City Community College, or the 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 State budget or through an approved budget amendment.

(g)    The Governor shall submit with the State 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 State budget is submitted; and

(3)    a descriptive listing of projects reflecting projected costs for the fiscal year for which the State budget is submitted and any estimated future year costs.

(h)    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 State budget amendment under Title 7, Subtitle 2, Part II of this article, provided that a State budget amendment for any project not requested as part of the State 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.

(i)    The Fund may be used:

(1)    for major information technology development projects;

(2)    as provided in subsections (j) and (l) of this section; or

(3)    notwithstanding § 3A–301(b)(2) of this subtitle, for the costs of the first 12 months of operation and maintenance of a major information technology development project.

(j)    Notwithstanding subsection (b) of this section and except for the cost incurred in administering the Fund, each fiscal year up to $1,000,000 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; or

(3)    information technology projects, including:

(i)    pilots; and

(ii)    prototypes.

(k)    A unit of State government or local government may submit a request to the Secretary to support the cost of an information technology project with money under subsection (j) of this section.

(l)    Notwithstanding subsection (b) of this section, money paid into the Fund under subsection (e)(2) of this section may be used to support the State telecommunication and computer network established under § 3A–404 of this title, including program development for these activities.

(m)    (1)    On or before November 1 of each year, the Secretary shall report to the Governor, the Secretary of Budget and Management, and to the budget committees of the General Assembly and submit a copy of the report to the General Assembly, in accordance with § 2–1257 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 money 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 money 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 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.

(n)    On or before January 15 of each year, for each major information technology development project currently in development or for which operations and maintenance funding is being provided in accordance with subsection (i)(3) of this section, subject to § 2–1257 of the State Government Article, the Secretary shall provide a summary report to the Department of Legislative Services with the most up–to–date project information including:

(1)    project status;

(2)    any schedule, cost, and scope changes since the last annual report;

(3)    a risk assessment including any problems identified by any internal or external review and any corrective actions taken; and

(4)    any change in the monitoring or oversight status.