BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2408
                                                                  Page  1

          Date of Hearing:   May 5, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 2408 (Smyth) - As Introduced:  February 19, 2010 

          Policy Committee:                              Business and  
          Professions  Vote:                            11 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill codifies the Governors Reorganization Plan (GRP)  
          Number 1.  Specifically, this bill: 

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

          2)Renames the Department of Technology Services (DTS) to the  
            Office of Technology Services and transfers it from the State  
            Consumer Services Agency (SCSA) to the CIO, along with the  
            applicable revolving fund.

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

          4)Transfers all necessary employees to the OCIO and maintains  
            the status, position, and rights of those employees.

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

           FISCAL EFFECT  

          There are no new costs associated with this legislation.   
          Funding for the implementation of the GRP was included in the  








                                                                  AB 2408
                                                                  Page  2

          2009-10 budget and the governor's proposed 2010-11 budget.

           COMMENTS  

           1)Purpose  . 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.

           2)Governor's Reorganization Plan Number 1  . 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.

           3)Related Legislation  . AB 1266 (Huber) of 2009, which also  
            attempted to codify GRP 1, was held on this committee's  
            suspense file.

            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 9-0.  As neither house adopted nor  
            rejected the plan, GRP 1 became effective on May 10, 2009  
            after the 60 day mandatory period ended.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081