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