BILL NUMBER: SB 834	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2006
	PASSED THE ASSEMBLY  AUGUST 28, 2006
	AMENDED IN ASSEMBLY  AUGUST 24, 2006
	AMENDED IN ASSEMBLY  AUGUST 21, 2006
	AMENDED IN ASSEMBLY  JUNE 12, 2006
	AMENDED IN SENATE  APRIL 18, 2005

INTRODUCED BY   Senator Figueroa

                        FEBRUARY 22, 2005

   An act to amend Sections 12804, 13975, 14931, 14931.1, 15252,
15275, 15277, and 19857 of, to add Section 14930 to, and to add
Chapter 5.5 (commencing with Section 11531) to Part 1 of Division 3
of Title 2 of, to repeal Sections 15276 and 15279 of, and to repeal
Article 2 (commencing with Section 11792) and Article 3 (commencing
with Section 11796) of Chapter 7.5 of Division 3 of Title 2 of, the
Government Code, relating to information technology.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 834, Figueroa  Department of General Services: information
technology.
   (1) Existing law, the Governor's Reorganization Plan No. 2 (GRP
No. 2), effective July 9, 2005, established the Department of
Technology Services in state government, under the Director of
Technology Services, within the State and Consumer Services Agency,
and the Technology Services Board, with a specified membership,
within the department. That plan authorized the department to
acquire, install, equip, maintain, and operate new or existing
business telecommunications systems and services and requires it to
coordinate all matters affecting statewide business
telecommunications policy and planning. The plan also limited the
authority of the Department of General Services to acquire, install,
equip, maintain, and operate communications systems and facilities to
public safety agencies.
   The plan consolidated and transferred the functions of the Stephen
P. Teale Data Center, the California Health and Human Services
Agency Data Center, and the Telecommunications Division of the
Department of General Services to the department and required the
director to administer the department pursuant to a written plan of
operations developed with the advice of the board.
   The plan also created the Department of Technology Services
Revolving Fund within the State Treasury, which is continuously
appropriated and available for encumbrance without regard to fiscal
years.
   Existing law requires the Legislative Counsel to prepare for
introduction not later than the next Regular Session of the
Legislature occurring more than 90 days after the effective date of
GRP No. 2, a bill effecting these changes in the statutes to reflect
the changes made by the plan.
   This bill would make the statutory codification changes made
necessary by the plan taking effect on July 9, 2005, except that it
would instead provide that the Department of Technology Services
Revolving Fund would be subject to appropriation by the Legislature.

    (2) Existing law sets forth the requirements for the acquisition
of information technology goods and services by the state, and
requires all contracts for the acquisition of those goods and
services to be made by or under the supervision of the Department of
General Services, with expenditures in this regard subject to the
review and approval of the Department of Finance.
   This bill would establish in state government the office of State
Chief Information Officer, to be appointed by the Governor, subject
to Senate confirmation, and set forth the duties of the State Chief
Information Officer in the coordination of state information
technology services.
   (3) This bill would incorporate additional changes to Section
12804 of the Government Code, proposed by AB 1278, to be operative
only if AB 1278 and this bill are enacted, both bills amend the
respective section, and this bill is enacted after AB 1278.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Chapter 5.5 (commencing with Section 11531) is added to
Part 1 of Division 3 of Title 2 of the Government Code, to read:
      CHAPTER 5.5.  Technology


      Article 1.  General Provisions and Definitions

   11531.  This chapter shall be known and may be cited as the
Technology Act of 2005.
   11532.  For purposes of this chapter, the following terms shall
have the following meanings, unless the context requires otherwise:
   (a) "Board member" means a member of the Technology Services
Board.
   (b) "Department" means the Department of Technology Services
established by this chapter.
   (c) "Board" means the Technology Services Board created pursuant
to Section 11535.
   (d) "Director" means the Director of Technology Services.
   (e) "Technology" includes, but is not limited to, all electronic
technology systems and services, automated information handling,
system design and analysis, conversion of data, computer programming,
information storage and retrieval, and business telecommunications
systems and services.
   (f) "Business telecommunications systems and services" includes,
but is not limited to, wireless or wired systems for transport of
voice, video, and data communications, network systems, requisite
facilities, equipment, system controls, simulation, electronic
commerce, and all related interactions between people and machines.
Public safety communications are excluded from this definition.
   (g) "Public agencies" include, but are not limited to, all state
and local governmental agencies in the state, including cities,
counties, other political subdivisions of the state, state
departments, agencies, boards, and commissions, and departments,
agencies, boards, and commissions of other states and federal
agencies.

      Article 2.  Department of Technology Services

   11534.  (a) There is in state government, in the State and
Consumer Services Agency, the Department of Technology Services.
   (b) The purpose of this article is to establish a general purpose
technology services provider to serve the common technology needs of
executive branch entities with accountability to customers for
providing secure services that are responsive to client needs at a
cost representing best value to the state.
   (c) The purpose of this chapter is to improve and coordinate the
use of technology and to coordinate and cooperate with all public
agencies in the state in order to eliminate duplications and to bring
about economies that could not otherwise be obtained.
   11535.  (a) There is, in the department, the Technology Services
Board.
   (b) The board shall consist of 13 members, as follows:
   (1) The Governor's designee, who shall serve as the chair of the
board.
   (2) The Director of Finance, who shall serve as vice chair of the
board.
   (3) The Controller.
   (4) The Secretaries of Food and Agriculture, the Business,
Transportation and Housing Agency, the Environmental Protection
Agency, the California Health and Human Services Agency, the Labor
and Workforce Development Agency, the Resources Agency, the State and
Consumer Services Agency, the Department of Veterans Affairs, and
the Youth and Adult Correctional Agency.
   (5) The Director of the Office of Emergency Services.
   11536.  The board shall meet not less than once each quarter. A
quorum shall consist of seven members of the board. All decisions of
the board shall be made by a majority vote of a quorum of the board.

   11537.  (a) The board shall engage an independent firm of
certified public accountants to conduct an annual financial audit of
all accounts and transactions of the department. The audit shall be
conducted in accordance with generally accepted government auditing
standards. The audited financial statements shall be presented to the
board, the Governor, and the Legislature not more than 120 days
after the close of the fiscal year.
   (b) The board may arrange for other audits as are necessary or
prudent to ensure proper oversight and management of the department.

   11538.  The director shall be appointed by, and serve at the
pleasure of, the Governor, subject to Senate confirmation. The
director shall act as executive officer of the board.
   11539.  The director shall be responsible for managing the affairs
of the department and shall perform all duties, exercise all powers
and jurisdiction, and assume and discharge all responsibilities
necessary to carry out the purposes of this chapter. The director
shall employ professional, clerical, technical, and administrative
personnel as necessary to carry out this chapter.
   11540.  (a) The director shall propose for board consideration and
approval an annual budget for departmental operations. As part of
the annual budget development, the department shall determine the
impact of any rebates, abatements, or rate reductions resulting from
excess reserve funds. At least 60 days before submitting the proposed
budget to the board, the director shall submit the proposed budget
to the Department of Finance. Submittal of the budget to the
Department of Finance shall be in a format and timeframe determined
by the Department of Finance. The Department of Finance shall prepare
a report to the board evaluating the reasonableness of the proposed
budget and any significant impact the department's budget is likely
to have upon the budgets of other departments.
   (b) The director shall propose for board consideration rates for
department services based on a formal rate methodology approved by
the board. At least 60 days before submitting proposed rates to the
board, the director shall submit the proposed rates to the Department
of Finance. Submittal of the rates to the Department of Finance
shall be in a format and timeframe determined by the Department of
Finance. The Department of Finance shall prepare a report to the
board evaluating the reasonableness of the proposed rates and any
significant impact the department's rates are likely to have upon the
budgets of other departments.
   (c) It is the intent of the Legislature that this section
supersede Section 11540 of the Government Code, as added by Section 1
of the Governor's Reorganization Plan No. 2, effective July 9, 2005.

   11541.  (a) The department may acquire, install, equip, maintain,
and operate new or existing business telecommunications systems and
services. Acquisitions for information technology goods and services
shall be made pursuant to Chapter 3 (commencing with Section 12100)
of Part 2 of Division 2 of the Public Contract Code. To accomplish
that purpose, it may enter into contracts, obtain licenses, acquire
property, install necessary equipment and facilities, and do other
acts that will provide adequate and efficient business
telecommunications systems and services. Any system established shall
be made available to all public agencies in the state on terms that
may be agreed upon by the agency and the department.
   (b) With respect to business telecommunications systems and
services, the department may do all of the following:
   (1) Provide representation of public agencies before the Federal
Communications Commission in matters affecting the state and other
public agencies regarding business telecommunications systems and
services issues.
   (2) Provide, upon request, advice to public agencies concerning
existing or proposed business telecommunications systems and services
between any and all public agencies.
   (3) Recommend to public agencies rules, regulations, procedures,
and methods of operation that it deems necessary to effectuate the
most efficient and economical use of business telecommunications
systems and services within the state.
   (4) Carry out the policies of this chapter.
   (c) The department has responsibilities with respect to business
telecommunications systems, services, policy, and planning, which
include, but are not limited to, all of the following:
   (1) Assessing the overall long-range business telecommunications
needs and requirements of the state considering both routine and
emergency operations for business telecommunications systems and
services, performance, cost, state-of-the-art technology, multiuser
availability, security, reliability, and other factors deemed to be
important to state needs and requirements.
   (2) Developing strategic and tactical policies and plans for
business telecommunications with consideration for the systems and
requirements of public agencies.
   (3) Recommending industry standards, service level agreements, and
solutions regarding business telecommunications systems and services
to assure multiuser availability and compatibility.
   (4) Providing advice and assistance in the selection of business
telecommunications equipment to ensure all of the following:
   (A) Ensuring that the business telecommunications needs of state
agencies are met.
   (B) Ensuring that procurement is compatible throughout state
agencies and is consistent with the state's strategic and tactical
plans for telecommunications.
   (C) Ensuring that procurement is designed to leverage the buying
power of the state and encourage economies of scale.
   (5) Providing management oversight of statewide business
telecommunications systems and services developments.
   (6) Providing for coordination of, and comment on, plans and
policies and operational requirements from departments that utilize
business telecommunications systems and services as determined by the
department.
   (7) Monitoring and participating, on behalf of the state, in the
proceedings of federal and state regulatory agencies and in
congressional and state legislative deliberations that have an impact
on state governmental business telecommunications activities.
   (d) The department shall develop and describe statewide policy on
the use of business telecommunications systems and services by state
agencies. In the development of that policy, the department shall
assure that access to state business information and services is
improved, and that the policy is cost effective for the state and its
residents.  The department shall develop guidelines that do all of
the following:
   (1) Describe what types of state business information and services
may be accessed using business telecommunications systems and
services.
   (2) Characterize the conditions under which a state agency may
utilize business telecommunications systems and services.
   (3) Characterize the conditions under which a state agency may
charge for information and services.
   (4) Specify pricing policies.
   (5) Provide other guidance as may be appropriate at the discretion
of the department.
   (e) It is the intent of the Legislature that this section
supersede Section 11541 of the Government Code, as added by Section 1
of the Governor's Reorganization Plan No. 2, effective July 9, 2005.

   11542.  (a) The Stephen P. Teale Data Center and the California
Health and Human Services Agency Data Center are consolidated within,
and their functions are transferred to, the department.
   (b) The business telecommunications systems and services functions
of the Telecommunications Division of the Department of General
Services are transferred to the department.
   (c) Except as expressly provided otherwise in this chapter, the
department is the successor to, and is vested with, all of the
duties, powers, purposes, responsibilities, and jurisdiction of the
Stephen P. Teale Data Center, the California Health and Human
Services Agency Data Center, and the business telecommunications
systems and services functions of the Telecommunications Division of
the Department of General Services. Any reference in statutes,
regulations, or contracts to those entities with respect to the
transferred functions shall be construed to refer to the Department
of Technology Services unless the context clearly requires otherwise.

   (d) No contract, lease, license, or any other agreement to which
the Stephen P. Teale Data Center, the California Health and Human
Services Agency Data Center, or the Telecommunications Division of
the Department of General Services, with respect to the business
telecommunications systems and services functions, is a party, shall
be void or voidable by reason of this chapter, but shall continue in
full force and effect, with the department assuming all of the
rights, obligations, and duties of the Stephen P. Teale Data Center,
the California Health and Human Services Agency Data Center, or the
Telecommunications Division of the Department of General Services,
respectively.
   (e) Notwithstanding subdivision (e) of Section 11793 and
subdivision (e) of Section 11797, on and after the effective date of
this chapter, the balance of any funds available for expenditure by
the Stephen P. Teale Data Center, the California Health and Human
Services Agency Data Center, and the Telecommunications Division of
the Department of General Services, with respect to business
telecommunications systems and services functions in carrying out any
functions transferred to the department by this chapter, shall be
transferred to the Department of Technology Services Revolving Fund
created by Section 11544, and shall be made available for the support
and maintenance of the department.
   (f) All references in statutes, regulations, or contracts to the
former Stephen P. Teale Data Center Fund or the California Health and
Human Services Data Center Revolving Fund shall be construed to
refer to the Department of Technology Services Revolving Fund unless
the context clearly requires otherwise.
   (g) All books, documents, records, and property of the Stephen P.
Teale Data Center, the California Health and Human Services Agency
Data Center, excluding the Systems Integration Division, and the
Telecommunications Division of the Department of General Services,
with respect to business telecommunications systems and services
functions, shall be transferred to the department.
   (h) (1) All officers and employees of the former Stephen P. Teale
Data Center, the California Health and Human Services Agency Data
Center, and the Telecommunications Division of the Department of
General Services, with respect to business telecommunications systems
and services functions, are transferred to the department.
   (2) The status, position, and rights of any officer or employee of
the Stephen P. Teale Data Center, the California Health and Human
Services Agency Data Center, and the Telecommunications Division of
the Department of General Services, with respect to business
telecommunications systems and services functions, shall not be
affected by the transfer and consolidation of their functions to the
department.
   11543.  (a) The director shall confer as frequently as necessary
or desirable, but not less than once every quarter, with the board,
on the operation and administration of the department. The director
shall make available for inspection by the board or any board member,
upon request, all books, records, files, and other information and
documents of the department and recommend any matters as he or she
deems necessary and advisable to improve the operation and
administration of the department.
   (b) The director shall make and keep books and records to permit
preparation of financial statements in conformity with generally
accepted accounting principles and any state policy requirements.

      Article 3.  Department of Technology Services Revolving Fund

   11544.  (a) The Department of Technology Services Revolving Fund,
hereafter known as the fund, is hereby created within the State
Treasury. The fund shall be administered by the director, pursuant to
the department's plan of operations, to receive all revenues from
the sale of technology or technology services provided for in this
chapter and all other moneys properly credited to the board and
department from any other source, to pay, upon appropriation by the
Legislature, all costs arising from this chapter, including, but not
limited to, operating and other expenses of the board and department
and costs associated with approved information technology projects,
and to establish reserves. At the discretion of the director,
segregated, dedicated accounts within the fund may be established.
   (b) The fund shall consist of all of the following:
   (1) Moneys appropriated and made available by the Legislature for
the purpose of this chapter.
   (2) Any other moneys that may be made available to the department
for the purpose of this chapter from any other source, including the
return from investments of moneys by the Treasurer.
   (c) The department may collect payments from public agencies for
providing services to those agencies that the agencies have
contracted with the department to provide. The department may require
monthly payments by client agencies for the services the agencies
have contracted the department to provide. Pursuant to Section 11255,
the Controller shall transfer any amounts so authorized by the
department, consistent with the annual budget of each department, to
the fund. The department shall notify each affected state agency upon
requesting the Controller to make the transfer.
   (d) If the balance remaining in the fund at the end of any fiscal
year exceeds 25 percent of the department's current fiscal year
budget, the excess amount shall be used to reduce the billing rates
for services rendered during the following fiscal year.
   (e) It is the intent of the Legislature that this section
supersede Section 11544 of the Government Code, as added by Section 1
of the Governor's Reorganization Plan No. 2, effective July 9, 2005.

   11545.  (a) There is in state government the office of the State
Chief Information Officer. The State Chief Information Officer shall
be appointed by, and serve at the pleasure of, the Governor, subject
to Senate confirmation.  The State Chief Information Officer shall be
a member of the Governor's cabinet.
   (b) The duties of the State Chief Information Officer shall
include, but not be limited to, all of the following:
   (1) Advising the Governor on the strategic management and
direction of the state's information technology resources.
   (2) Minimizing overlap, redundancy, and cost in state operations
by promoting the efficient and effective use of information
technology.
   (3) Coordinating the activities of agency information officers,
agency chief information officers, and the Director of Technology
Services for purposes of integrating statewide technology
initiatives, ensuring compliance with information technology policies
and standards, and promoting alignment of information technology
resources and effective management of information technology
portfolios.
   (4) Working to improve organizational maturity and capacity in the
effective management of information technology.
   (5) Establishing performance management and improvement processes
to ensure state information technology systems and services are
efficient and effective.
  SEC. 2.  Article 2 (commencing with Section 11792) of Chapter 7.5
of Division 3 of Title 2 of the Government Code is repealed.
  SEC. 3.  Article 3 (commencing with Section 11796) of Chapter 7.5
of Division 3 of Title 2 of the Government Code is repealed.
  SEC. 4.  Section 12804 of the Government Code is amended to read:
   12804.  The Agriculture and Services Agency is hereby renamed the
State and Consumer Services Agency.
   The State and Consumer Services Agency consists of the following:
the Department of General Services; the Department of Technology
Services; the Department of Consumer Affairs; the Franchise Tax
Board; the Public Employees' Retirement System; the State Teachers'
Retirement System; the Department of Fair Employment and Housing; the
Fair Employment and Housing Commission; the California Science
Center; the California Victim Compensation and Government Claims
Board; the California African-American Museum; and the State Building
and Standards Commission.
  SEC. 4.5.  Section 12804 of the Government Code is amended to read:

   12804.  The Agriculture and Services Agency is hereby renamed the
State and Consumer Services Agency.
   The State and Consumer Services Agency consists of the following:
the Department of General Services; the Department of Technology
Services; the Department of Consumer Affairs; the Franchise Tax
Board; the Public Employees' Retirement System; the State Teachers'
Retirement System; the Department of Fair Employment and Housing; the
Fair Employment and Housing Commission; the California Science
Center; the California Victim Compensation and Government Claims
Board; the California African-American Museum; the State Building and
Standards Commission; and the Alfred E. Alquist Seismic Safety
Commission.
  SEC. 5.  Section 13975 of the Government Code is amended to read:
   13975.  The Business and Transportation Agency in state government
is hereby renamed the Business, Transportation and Housing Agency.
The agency consists of the State Department of Alcoholic Beverage
Control, the Department of the California Highway Patrol, the
Department of Corporations, the Department of Housing and Community
Development, the Department of Motor Vehicles, the Department of Real
Estate, the Department of Transportation, the Department of
Financial Institutions, the Department of Managed Health Care; and
the California Housing Finance Agency is also located within the
Business, Transportation and Housing Agency, as specified in Division
31 (commencing with Section 50000) of the Health and Safety Code.
  SEC. 6.  Section 14930 is added to the Government Code, to read:
   14930.  This chapter shall not apply to Department of Justice
public safety communications, including, but not limited to,
communications operated pursuant to Chapter 2.5 (commencing with
Section 15150) of Part 6 of Division 3 of Title 2.
  SEC. 7.  Section 14931 of the Government Code is amended to read:
   14931.  The department may acquire, install, equip, maintain, and
operate new or existing public safety communications systems and
facilities for public safety agencies. To accomplish that purpose, it
may, in the name of the state, enter into contracts, obtain
licenses, acquire property, install necessary equipment and
facilities, and do other acts that will provide adequate and
efficient public safety communications systems. Any system
established shall be available to all public agencies in the state on
terms that may be agreed upon by the agency and the department.
  SEC. 8.  Section 14931.1 of the Government Code is amended to read:

   14931.1.  The department shall acquire, install, equip, maintain,
and operate all new or replacement public safety communications
systems operated by the state, excepting microwave equipment used
exclusively for traffic signal and signing control, traffic metering,
and roadway surveillance systems. To accomplish that purpose, it
may, in the name of the state, enter into contracts, obtain licenses,
acquire property, install necessary equipment and facilities, and do
other acts that will provide adequate and efficient microwave
communications systems. Any system established shall be available to
all public agencies in the state on terms that may be agreed upon by
the public agency and the department.
  SEC. 9.  Section 15252 of the Government Code is amended to read:
   15252.  The purpose of this part is to improve and coordinate the
use of public safety radio and other public safety communications
facilities owned and operated by the state, and to coordinate and
cooperate with cities, counties, and other political subdivisions
thereof, in order to eliminate duplications and interferences, to
bring about economies that could not otherwise be obtained.
  SEC. 10.  Section 15275 of the Government Code is amended to read:

   15275.  The Department of General Services may do all of the
following:
   (a) Provide adequate representation of local and state
governmental bodies and agencies before the Federal Communications
Commission in matters affecting the state and its cities, counties,
and other public agencies regarding public safety communications
issues.
   (b) Provide, upon request, adequate advice to state and local
agencies in the state concerning existing or proposed public safety
communications facilities between any and all of the following:
cities, counties, other political subdivisions of the state, state
departments, agencies, boards, and commissions, and departments,
agencies, boards, and commissions of other states and federal
agencies.
   (c) Recommend to the appropriate state and local agencies rules,
regulations, procedures, and methods of operation that it deems
necessary to effectuate the most efficient and economical use of
publicly owned and operated public safety communications facilities
within this state.
   (d) Provide, upon request, information and data concerning the
public safety communications facilities that are owned and operated
by public agencies in connection with official business of public
safety services.
   (e) Carry out the policy of this part.
  SEC. 11.  Section 15276 of the Government Code is repealed.
  SEC. 12.  Section 15277 of the Government Code is amended to read:

   15277.  There is hereby established within the department a
Division of Telecommunications. The division shall include a policy
and planning unit whose duties shall include, but not be limited to,
all of the following:
   (a) Assessing the overall long-range public safety communications
needs and requirements of the state considering emergency operations,
performance, cost, state-of-the-art technology, multiuser
availability, security, reliability, and other factors deemed to be
important to state needs and requirements.
   (b) Developing strategic and tactical policies and plans for
public safety communications with consideration for the systems and
requirements of the state and all public agencies in this state, and
preparing an annual strategic communications plan that includes the
feasibility of interfaces with federal and other state
telecommunications networks and services.
   (c) Recommending industry standards for public safety
communications systems to assure multiuser availability and
compatibility.
   (d) Providing advice and assistance in the selection of
communications equipment to ensure that the public safety
communications needs of state agencies are met and that procurements
are compatible throughout state agencies and are consistent with the
state's strategic and tactical plans for public safety
communications.

           (e) Providing management oversight of statewide public
safety communications systems developments.
   (f) Providing for coordination of, and comment on, plans,
policies, and operational requirements from departments that utilize
public safety communications in support of their principal function,
such as the Office of Emergency Services, National Guard, health and
safety agencies, and others with primary public safety communications
programs.
   (g) Monitoring and participating on behalf of the state in the
proceedings of federal and state regulatory agencies and in
congressional and state legislative deliberations that have an impact
on state government public safety communications activities.
   (h) Developing plans regarding teleconferencing as an alternative
to state travel during emergency situations.
  SEC. 13.  Section 15279 of the Government Code is repealed.
  SEC. 14.  Section 19857 of the Government Code is amended to read:

   19857.  (a) The appointing power of any officer or employee not a
member of the civil service may promulgate regulations governing
vacations for these officers or employees. In the absence of these
regulations, the rules of the department relating to the regulation
and methods of accumulation of vacation for civil service employees
shall govern.
   (b) Notwithstanding subdivision (a), no paid leave including, but
not limited to, vacation, annual leave, and sick leave shall be
accrued by state officers in the following positions:
   (1) Executive Director of the California Housing Finance Agency.
   (2) Director of the Office of Administrative Law.
   (3) Director of Emergency Medical Services Authority.
   (4) Executive Director of the Office of Criminal Justice Planning.

   (5) Director of the California Conservation Corps.
   (6) Director of the Arts Council.
   The department may adopt regulations for the application of this
provision to similar positions established in the future.
  SEC. 15.  Section 4.5 of this bill incorporates amendments to
Section 12804 of the Government Code proposed by both this bill and
AB 1278. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2007, (2) each bill
amends Section 12804 of the Government Code, and (3) this bill is
enacted after AB 1278, in which case Section 4 of this bill shall not
become operative.