BILL ANALYSIS
Bill No: AB
2408
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2408 Author: Smyth
As Amended: June 15, 2010
Hearing Date: June 22, 2010
Consultant: Chris Lindstrom
SUBJECT
State Chief Information Officer
DESCRIPTION
AB 2408 codifies the Governor's Reorganization Plan No. 1
(GRP 1) of 2009 which consolidated state information
technology functions under the Office of the State Chief
Information Officer and changes the name of the Office to
the "California Technology Agency." Specifically, this
measure:
1. Renames the Office of the State Chief Information
Officer (OCIO) to the California Technology Agency (CTA)
and the position of the State Chief Information Officer
(SCIO) to the Secretary of California Technology and
imposes additional duties on both regarding state
information technology governance and implementation.
2. Transfers all aspects of the Division of
Telecommunications from the Department of General
Services (DGS) to the CTA and creates the positions of
chief information officer and information security
officer in various state agencies.
3. Transfers the Department of Technology Services from
the State and Consumer Services Agency to the CTA.
4. Eliminates the Office of Information Security and
Privacy Protection and instead creates the Office of
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Information Security within the CTA and the Office of
Privacy Protection in the State and Consumer Services
Agency.
5. Renames the Department of Technology Services Revolving
Fund to the Technology Services Revolving Fund and
authorizes that Fund to receive revenues for services
rendered by the CTA. Also, authorizes the CTA to collect
payments from public agencies for services requested by
the CTA and revises the conditions used to determine
whether a balance remains in the Fund at the end of the
year. (This Fund used to contain only revenues from one
department but under the reorganization will contain
multiple funds which must be separated for calculations.)
6. Deletes an obsolete requirement on the Office of
Information Security to investigate and assist in the
prosecution of crimes. (These activities are carried out
by the Department of Justice.)
7. Changes the annual financial audit due date from more
than 120 days following the close of the fiscal year, to
no more than 120 days following the submittal of the
annual financial statements.
8. Deletes the January 1, 2013 sunset on the provisions
establishing the OCIO.
9. Makes other technical, clarifying and conforming
changes.
EXISTING LAW
Existing law, the Governor's Reorganization Plan No. 1 of
2009 (GRP No. 1), transferred all the duties, functions,
employees, property, and related funding of the Division of
Telecommunications in the Department of General Services
(DGS) to the Office of the State Chief Information Officer
(OCIO). The plan also renamed and transferred the
Department of Technology Services in the State and Consumer
Services Agency (CSA) to the Office of the Department of
Technology Services within the OCIO, renamed the Department
of Technology Services Revolving Fund the Technology
Services Revolving Fund, and made conforming changes. The
plan also abolished the Office of Information Security and
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Privacy Protection, and instead created the Office of
Information Security within the OCIO, and the Office of
Privacy Protection within the CSA, with a division of the
duties, personnel, property, and funding of the Office of
Information Security and Privacy Protection between the two
offices. The plan also transferred duties relating to the
state's procurement of information technology from the
Department of Finance, the DGS, and the Department of
Information Technology to the OCIO.
Existing law, Government Code Section 12080 et seq, grants
the Governor authority to propose administrative
reorganization plans. The statute requires the Governor to
submit any reorganization plan to the Milton Marks
Commission on California State Government Organization and
Economy (Little Hoover Commission) at least 30 days prior
to submitting the plan to the Legislature. The
Commission's role is to evaluate the plan and to make
recommendations to the Governor and Legislature within 30
days of the date the plan is submitted to the Legislature.
Pursuant to Government Code Section 12080.2, the Rules
Committee of the Senate and the Speaker of the Assembly
refer the Governor's Reorganization Plan to the appropriate
standing committee(s) of their respective houses for study
and a report. Existing law provides a 60-day time frame
(60 calendar days of continuous legislative session) for
the study and report by the standing committee. If the
Legislature does not take action by adopting a resolution
disapproving the plan, the reorganization plan becomes
effective.
BACKGROUND
History: The Department of Information Technology (DOIT)
was created by SB 1 (Alquist) of 1995 (Chapter 508) for the
purpose of planning and overseeing the state's uses of
information technology (IT). It was created as an
independent state department that reported directly to the
Governor rather than a cabinet level agency. The DOIT was
responsible for ensuring that appropriate plans, policies,
and procedures are in place to assure successful
implementation of IT projects. DOIT struggled to meet its
statutory mandates and the statutory provisions pertaining
to DOIT became inoperative on July 1, 2002, when the
Legislature refused to extend the sunset.
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GRP 2 of 2005, established the Department of Technology
Services (DTS) within the State and Consumer Services
Agency, as a reorganized entity comprised of the former
Stephen P. Teale Data Center, the California Health and
Human Services Agency Data Center, and the
Telecommunications Division of the Department of General
Services. DTS was charged with responsibility for the
planning, acquisition, and administration of state
technology and telecommunications systems.
In 2006, the Legislature enacted and the Governor signed SB
834 (Figueroa) which established the OCIO. SB 834 made the
State CIO a member of the Governor's cabinet, with the
position appointed by the Governor and subject to Senate
confirmation. SB 834 also codified the responsibilities of
the State CIO, making the State CIO the nominal leader for
the Executive Branch's IT program.
The 2007-2008 Budget and related legislation (SB 90 -
Committee on Budget, Chapter 183 of 2007) substantially
expanded on SB 834 and provided an appropriation to
establish the OCIO.
In May of 2009, the Governor's Reorganization Plan No.1
(GRP 1) was allowed to move forward by the Legislature,
formally creating the OCIO as an Agency to consolidate
statewide information technology functions under, and to
consolidate software contracts, office automation tools,
data centers, servers, and storage. The OCIO also has
authority over IT procurement policy and enterprise IT
management. Since the implementation of GRP 1, the
Legislature has continued to expand the role and
responsibilities of the OCIO. In July of 2009, as part of
the special session budget package, the Legislature
required the OCIO to review and make recommendations to the
Joint Legislative Budget Committee regarding large IT
projects (including the California Case Management System)
at the Judicial Council.
Purpose of AB 2408: The intent of this measure is to
codify GRP No. 1 of 2009 - the GRP was allowed to go into
effect in May 2009 based on 60 days having passed and no
action on the part of the Legislature to disapprove it.
According to the author's office, by creating a central IT
organization, the state will leverage California's IT
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program for greater coordination and efficiency while
reducing costs and saving the state approximately $1.5
billion over the next 5 years.
Staff Comments - Suggested Amendment : "Sunsets" are
Important!
The possibility exists that this new governmental entity -
The California Technology Agency - may turn out to be a
failure like the Department of Information Technology
(DOIT). Thus, the committee may wish to reinstate the
January 1, 2013 sunset provision to enable the Legislature
to review and evaluate the worth of this new entity.
PRIOR/RELATED LEGISLATION
AB 1266 (Huber) of 2009-10 Session. Would codify the GRP 1
of 2009. (Held in Assembly Appropriations Committee)
AB 618 (Blumenfield) 2009-10 Session. Requires the OCIO to
submit a strategic plan by January 1, 2011, and every three
years thereafter, that includes information on the key
performance measures identified by the OCIO for the
Governor's GRP NO.1 of 2009. (Held in Assembly
Appropriations Committee)
AB 617 (Blumenfield ) 2009-10 Session. Requires the OCIO
to establish and enforce a state information technology
(IT) strategic plan to protect the environment and reduce
energy use. (Held in Assembly Appropriations Committee)
SB 834 (Figueroa) Chapter 533, Statutes of 2006. Made the
statutory changes necessary to reflect GRP 2 of 2005 which
established the Department of Technology Services in state
government under the Director of Technology Services within
the Consumer Services Agency.
SB 954 (Figueroa) Chapter 556, Statutes of 2005. Provided
that DGS must conform to the Information Technology
Procurement Guidelines for Best Practices when purchasing
new information technology.
AB 1559 (Diaz) Chapter 45, Statutes of 2002. Repealed
sunset provisions governing the Department of Justice's
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Hawkins Data Center, the Health and Human Services Agency
Data Center, and the Stephen P. Teale Data Center. Also,
allowed the Department of Information Technology (DOIT) to
die by not extending its sunset date.
AB 1624 (Zettel) 2001-02 Session. Would have renamed DOIT
the Information Technology Agency and elevated the director
of DOIT to Secretary of the new agency. Also, would have
extended the sunset date to July 1, 2007 and would have
made other substantive changes. (Died in Assembly policy
committee)
AB 2936 (Information Technology Committee) 1999-2000
Session. Would have eliminated the sunset date for the
DOIT, the Hawkins Data Center, the Health and Human
Services Data Center, and the Teale Data Center. (Died on
Senate Appropriations Committee Suspense File)
AB 1686 (Information Technology Committee) Chapter 873 of
1999. Extended sunset dates on the state's information
data centers and the DOIT by 2 years (from July 1, 2000 to
July 1, 2002).
SB 1 (Alquist) Chapter 508, Statutes of 1995. Eliminated
the Office of Information Technology and created the
Department of Information Technology (DOIT) with expanded
duties and authority.
SUPPORT: Office of the State Chief Information Officer
OPPOSE: None on file as of June 18, 2010.
FISCAL COMMITTEE: Senate Appropriations Committee