NASCIO Statement on Contractor Monitoring/Billing Verification Legislation

The National Association of State Chief Information Officers (NASCIO), which represents state CIOs, opposes all state legislation that would mandate contractor monitoring or billing verification software due to the significant risks to citizen privacy and federal regulatory compliance concerns it would create. Additionally, NASCIO remains concerned that this legislation would pose risks to state computer networks, impose unnecessary and burdensome requirements on state contractors and would lead to increased costs to the states. While NASCIO certainly supports contractor productivity and transparency, cost efficiency and successful project outcomes, legislation of this nature would introduce unnecessary risks to citizen data by essentially transferring ownership of private citizen data to a third party. This type of legislation, even through mandated pilot programs, has the potential for unintended consequences, such as impacting a state’s cybersecurity insurance policy coverage. State CIOs inherently understand and appreciate the seriousness of protecting citizens’ data, and therefore do not support legislation that would serve to increase or introduce additional risk.