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. AB 2408 Page 2 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 Page 3 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