BILL ANALYSIS AB 618 Page 1 Date of Hearing: May 13, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 618 (Blumenfeld) - As Amended: May 5, 2009 Policy Committee: Business and Professions Vote: 10 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the Office of the Chief Information Officer (OCIO) to submit to the Legislature an information technology strategic plan on or before January 1, 2011, and every 3 years thereafter, and in intervening years requires the OCIO to submit to the Legislature a report on the status of objectives in the plan and a progress report on the implementation of the Governor's Reorganization Plan No. 1 (GRP). FISCAL EFFECT Costs in the range of $75,000 for the OCIO to produce and submit the required report. COMMENTS 1)Purpose . According to the author, the intent of this legislation is to require the OCIO to annually report to the Legislature, the status of reorganization of the OCIO required by the GRP. An annual report would provide information by which the Legislature could measure the impact and effectiveness of the administration's IT reorganization plan. 2)Background . The OCIO currently advises the governor on the strategic management and direction of the state's IT resources. As part of the process, the OCIO prepares a strategic plan that outlines goals and objectives for technology projects and investments covering a five-year period. The strategic plan is used to guide acquisition, management and use of IT. The OCIO must take all appropriate and necessary steps to implement the plan, subject to any AB 618 Page 2 modifications and adjustments deemed necessary and reasonable. The strategic plan must be submitted to the Joint Legislative Budget Committee by January 15 each year. 3)The Governor's Reorganization Plan (GRP) Number 1 of 2009 . On March 10, 2009, the governor submitted to the Legislature his proposed IT reorganization plan to consolidate various statewide IT organizations and functions under the OCIO. The GRP would greatly expand the duties and responsibilities of the OCIO. In total, they would absorb approximately 1,200 state employees and $500 million in funding from other departments. During the budget process, the administration asserted that California IT lacks the broad and cohesive organizing logic necessary to best optimize limited state resources. To address this shortcoming, the governor proposes a "federated" governance model, in which the OCIO would have expanded authority over various IT services and functions while leaving some "local control" at the agency, department, and program levels. 4)Related Legislation . AB 1266 (Huber) codifies the Governors Reorganization Plan (GRP) Number 1. That bill is currently pending before this committee. AB 617 (Blumenfeld) requires the State Chief Information Officer (CIO) to establish and enforce a state information technology (IT) strategic plan to protect the environment and reduce energy use. That bill is currently pending before this committee. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081