BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2408
                                                                  Page  1

          Date of Hearing:   April 20, 2010

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER  
                                     PROTECTION
                                 Mary Hayashi, Chair
                 AB 2408 (Smyth) - As Introduced:  February 19, 2010
           
          SUBJECT  :   State government information technology.

           SUMMARY  :   Codifies the Governor's Reorganization Plan No. 1 of  
          2009 (GRP 1), which consolidated state information technology  
          functions under the Office of the State Chief Information  
          Officer (OCIO), and repeals the sunset on the OCIO, as  
          specified.

           EXISTING LAW  :

          1)Transfers all the duties, functions, employees, property, and  
            related funding of the Division of Telecommunications from the  
            Department of General Services (DGS) to the OCIO. 

          2)Renames the Department of Technology Services (DTS) the Office  
            of Technology Services, and transfers it from the State and  
            Consumer Services Agency (SCSA) to the OCIO. 

          3)Renames the DTS Revolving Fund the Technology Services  
            Revolving Fund, and makes conforming changes. 

          4)Eliminates the Office of Information Security and Privacy  
            Protection (OISPP), and instead creates the Office of  
            Information Security within the OCIO and the Office of Privacy  
            Protection within the SCSA. 

          5)Transfers to the OCIO all employees serving in state civil  
            service, other than temporary employees, who are engaged in  
            the performance of functions transferred to the OCIO and  
            maintains the status position and rights of those employees.

          6)Transfers certain responsibilities related to creating the  
            state's Information Technology (IT) procurement policies from  
            the Department of Finance (DOF), DGS, and the Department of  
            IT, to the OCIO.

          7)Mandates that GRP 1 become law unless either House of the  
            Legislature enacts a resolution disapproving such a plan  
            within 60 days.







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          8)Requires the introduction of a bill not later than the next  
            regular legislative session after a Governor's reorganization  
            plan has taken effect, as specified, as may be necessary to  
            reflect the changes made by the reorganization plan.  Such  
            bills ensure that statutory law is amended to conform to the  
            changes made by the reorganization plan, but failure to enact  
            such a bill shall not affect the validity of the plan.

          9)Makes technical changes.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :

           Background  .  GRP 1 took effect on May 10, 2009.  This bill was  
          introduced as a clean-up bill to change statutory language to  
          reflect the law.
           
           According to the Governor's February 2009 report submitted to  
          the Little Hoover Commission "The Reorganization Plan  
          consolidates enterprise information technology functions under  
          the OCIO to improve coordination and realize significant  
          efficiencies in procurement and technology implementation.

          "In the federated governance model, responsibilities will be  
          divided as follows:

                 The Enterprise Tier (OCIO) will provide robust IT  
               infrastructure for the entire government, offer shared  
               technology services across government, provide oversight to  
               reduce risk in IT project management, and enhance security  
               and stakeholder privacy. 
                 The Agency Tier will provide program policy and  
               direction, prioritize Agency IT investments, and  
               consolidate IT resources to reduce operational costs.
                 The Department Tier will provide local desktop/LAN  
               support, manage business specific applications and purchase  
               IT resources necessary for department activities.

          "This approach flows from business strategies and drivers and  
          uses enterprise architecture to ensure the wise investment of  
          limited resources.  The federated governance framework enables  
          operational improvements by defining common or shared technology  
          (enterprise architecture) standards across diverse program  
          areas, providing interoperability and supporting the diverse  







                                                                  AB 2408
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          programmatic missions of state agencies.  This approach also  
          establishes a common platform and standards for operations and  
          growth, improves the speed of implementations and provides an  
          optimal return on investment."

          Previous legislation  .

          AB 1266 (Huber) of 2009, which also attempted to codify GRP 1,  
          was held in the Assembly Appropriations Committee.

          GRP 1 (Governor's Administration) of 2009 was heard in the  
          Assembly Business and Professions Committee on April 14, 2009.   
          The Committee recommended that GRP 1 be permitted to take effect  
          by a vote of nine to zero.  As neither house adopted nor  
          rejected the plan, GRP 1 became effective on May 10, 2009 after  
          the sixty day mandatory period ended.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Office of the Chief State Information Officer (OCIO)

           Opposition 
           
          None on file.

           Analysis Prepared by  :    Marina Wiant / B.,P. & C.P. / (916)  
          319-3301