BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2408| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2408 Author: Smyth (R) Amended: 8/5/10 in Senate Vote: 21 SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 6/22/10 AYES: Wright, Harman, Calderon, Florez, Negrete McLeod, Padilla, Price, Yee NO VOTE RECORDED: Denham, Oropeza, Wyland SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 73-0, 5/17/10 - See last page for vote SUBJECT : State government information technology SOURCE : Author DIGEST : This bill codifies the Governors 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." Senate Floor Amendments of 8/5/10 make technical changes to correct a drafting error. ANALYSIS : 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 CONTINUED AB 2408 Page 2 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 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 Privacy Protection, and instead created the Office of Information Security within the OCIO, and the Office of Privacy Protection within the Consumer Services Agency, 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. This bill: 1.Renames OCIO to the California Technology Agency (CTA) CONTINUED AB 2408 Page 3 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 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 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. CONTINUED AB 2408 Page 4 Background 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. 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, CONTINUED AB 2408 Page 5 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. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/5/10) Office of the State Chief Information Officer OPPOSITION : (Verified 8/5/10) Secretary of State ARGUMENTS IN SUPPORT : The intent of this bill 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 program for greater coordination and efficiency while reducing costs and saving the state approximately $1.5 billion over the next five years. ARGUMENTS IN OPPOSITION : According to the Secretary of State, under GRP 1, constitutional officers are provided certain exemptions from the policies of the OCIO thereby allowing them to retain their constitutional autonomy. The Secretary of State contends that this bill gives the OCIO greater authority than it currently exercises under GRP 1 over the information technology policies and practices of the independently elected constitutional officers. The Secretary of State contends that this bill will hinder the ability to make their own business decisions which otherwise will likely cost millions of dollars if required to adhere to the telecommunications infrastructure policies CONTINUED AB 2408 Page 6 dictated by the OCIO. The Secretary of State points out that through its business practices, they have been able to reduce their telecommunications costs through a series of policies which would have to be abandoned if this bill takes effect. ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield, Bradford, Brownley, Buchanan, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Gaines, Galgiani, Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello, Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, John A. Perez NO VOTE RECORDED: Bass, Caballero, Furutani, Norby, Silva, Yamada, Vacancy TSM:nl 8/5/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED