BILL ANALYSIS
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THIRD READING
Bill No: AB 2408
Author: Smyth (R)
Amended: 8/16/10 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 8/16/10 (1) address concerns
raised by the Secretary of State and narrow the scope of
the bill to entities within the executive branch that is
under the direct authority of the Governor, including, but
not limited to, all departments, boards, bureaus,
commissions, councils, and offices that are not defined as
CONTINUED
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a state agency, (2) provides that a state entity that is
not listed per the bill's existing provisions may
voluntarily comply with specified requirements and may
request assistance from 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
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
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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)
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
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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. Defines "state entity" to mean an entity within the
executive branch that is under the direct authority of
the Governor, including, but not limited to, all
departments, boards, bureaus, commissions, councils, and
offices that are not defined as a "state agency" under
this bill.
10. Makes other technical, clarifying and conforming
changes.
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
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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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/17/10)
Office of the State Chief Information Officer
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
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program for greater coordination and efficiency while
reducing costs and saving the state approximately $1.5
billion over the next five years.
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 8/17/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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