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
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            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