BILL NUMBER: SB 1898 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 18, 1996
INTRODUCED BY Senators Alquist and Kopp
(Coauthors: Assembly Members Bowen and Cunneen)
FEBRUARY 22, 1996
An act to add Article 9.5 (commencing with Section 11776)
to Chapter 7 of, and to add Chapter 8 (commencing with Section
11781) to, Part 1 of Division 3 of Title 2 of the Government Code, to
amend Section 11112.3 of the Penal Code, to repeal Chapter 3
(commencing with Section 12100) of, and Chapter 3.5 (commencing with
Section 12120) of, Part 2 of Division 2 of the Public Contract Code,
and to amend Sections 4902 and 4903 of the Unemployment Insurance
Code, An act to amend Section 11710 of the Government
Code, relating to information technology.
LEGISLATIVE COUNSEL'S DIGEST
SB 1898, as amended, Alquist. Department of Information
Technology.
There is in existing law in the executive branch the Department of
Information Technology, that is managed by the Director of
Information Technology, who is appointed by the Governor with the
consent of the Senate. Existing law requires the director, subject to
the State Civil Service Act, to appoint any other assistants and
other employees as are necessary for the administration of the
department and to prescribe their duties.
This bill would require the Governor, upon recommendation by the
director, to appoint 3 officers exempt from civil service who are
necessary for the administration of the department.
Existing law provides for the establishment of the Department of
Information Technology that is managed by the Director of Information
Technology. The duties of the department include providing
statewide guidance to state agencies regarding acquisition,
management, and appropriate uses of information technology and
developing statewide policies and plans for information technology.
This bill would require the Director of Information Technology to
form an advisory committee, as specified, to review state information
technology plans and issues and provide recommendations and counsel
to the director on information technology. This bill would require
the Department of Information Technology to provide necessary staff
support for the advisory committee.
Existing law requires the Department of General Services to
perform specified responsibilities with respect to the acquisition of
information technology and telecommunications goods and services.
This bill would transfer those responsibilities from the
Department of General Services to the Department of Information
Technology.
This bill would also make conforming changes to various provisions
of existing law.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 9.5 (commencing with Section
SECTION 1. Section 11710 of the Government Code is amended to
read:
11710. (a) There is hereby created in the executive branch the
Department of Information Technology, that shall be managed by the
Director of Information Technology, who shall be appointed by the
Governor, with the consent of the Senate, and who shall serve at the
pleasure of the Governor.
(b) The department, among other duties, shall perform the
statutory duties and responsibilities of the former Office of
Information Technology. Any reference in any law to the Office of
Information Technology or the director of that office shall be
considered a reference to the Department of Information Technology
and the Director of Information Technology, as the case may be,
unless the context otherwise requires.
(c) The Governor, upon recommendation of the director, shall
appoint three officers exempt from civil service who are necessary
for the administration of the department. Subject to the State
Civil Service Act (Part 2 (commencing with Section 18500) of Division
5 of Title 2 of the Government Code), the director shall appoint any
other assistants and other employees as are necessary for the
administration of the department and shall prescribe their duties.
(d) The department shall provide leadership, guidance, and
oversight of information technology in state government, including,
but not limited to, all of the following:
(1) Development of statewide vision, strategies, plans, policies,
requirements, standards, and infrastructure.
(2) Implementation of efficient, effective, and timely information
technology acquisition and project management processes.
(3) Identification of available information technology resources
from both public and private sectors.
(4) Development and implementation of an information technology
equipment and software acquisition strategy that moves the state
steadily to an architecture to provide maximum practical
compatibility to facilitate information sharing among all computing
systems in state government.
(5) Promotion of reforms in information technology personnel
classifications and in systems and procedures that reward skill in
meeting business needs and facilitation of change with effective
application of information technology.
(e) The Department of Information Technology shall have possession
and control of all relevant records and papers held for the benefit
or use of the former Office of Information Technology in the
performance of its statutory duties, powers, purposes, and
responsibilities. 11776) is added to Chapter 7 of Part 1
of Division 3 of Title 2 of the Government Code, to read:
Article 9.5. Information Technology Advisory Committee
11776. The Director of Information Technology shall form an
advisory committee to review state information technology plans and
issues and provide recommendations and counsel to the director for
the purpose of meeting the intent of the Legislature as expressed in
this chapter. The advisory committee shall consist of seven members
appointed by the Director of Information Technology.
11777. Individuals appointed to the advisory committee shall be
expert in matters of information technology planning, implementation,
or management, and are to be selected from the public, business,
academic, or other governmental sectors. Members of the committee
shall serve without compensation but may be reimbursed for actual and
necessary travel expenses.
11778. The Department of Information Technology shall provide
necessary staff support for the advisory committee.
11779. The advisory committee shall prepare a written agenda for
each of its meetings, and the advisory committee's findings and
recommendations shall be in writing. These written documents shall
be available to interested parties upon request.
SEC. 2. Chapter 8 (commencing with Section 11781) is added to Part
1 of Division 3 of Title 2 of the Government Code, to read:
CHAPTER 8. INFORMATION TECHNOLOGY SYSTEMS AND
TELECOMMUNICATIONS SYSTEMS
11781. The Legislature finds that the unique aspects of
information technology systems and telecommunications systems and the
importance of those systems to state programs warrant a separate
acquisition authority for information technology and
telecommunications goods and services. The Legislature further finds
that this separate authority should enable the timely acquisition of
goods and services in order to meet the state's needs in the most
value-effective manner.
Notwithstanding any other provision of law, all contracts for the
acquisition of information technology or telecommunications services
and all contracts for the acquisition of information technology or
telecommunications goods, whether by lease or purchase, shall be made
by or under the supervision of the Department of Information
Technology.
11782. The Regents of the University of California and the
Trustees of the California State University shall not be subject to
this chapter except that the trustees shall develop policies and
procedures maintained in its state university administrative manual
that further the legislative policies for procurement expressed in
this chapter but without the involvement of the Director of
Information Technology or the Department of Information Technology.
11783. The Trustees of the California State University are
subject to Article 1.5 (commencing with Section 10115) of Chapter 1
of Part 2 of Division 2 of the Public Contract Code. The contents of
any report that the trustees are required to submit to the Governor
and the Legislature pursuant to that article shall be organized so
that, whenever applicable, each campus is individually featured.
11784. For purposes of this chapter, the definitions contained in
Section 11702 shall apply and "value-effective acquisition" may be
defined to include, but not be limited to, the following:
(a) The operational cost that the state would incur if the bid or
proposal is accepted.
(b) Quality of the product or service, or its technical
competency.
(c) Reliability of delivery and implementation schedules.
(d) The maximum facilitation of data exchange and systems
integration.
(e) Warranties, guarantees, and return policy.
(f) Vendor financial stability.
(g) Consistency of the proposed solution with the state's planning
documents and announced strategic program direction.
(h) Quality and effectiveness of business solution and approach.
(i) Industry and program experience.
(j) Prior record of vendor performance.
(k) Vendor expertise with engagements of similar scope and
complexity.
(l) Extent and quality of the proposed participation and
acceptance by all user groups.
(m) Proven development methodologies and tools.
(n) Innovative use of current technologies and quality results.
11785. It is the intent of the Legislature that policies
developed by the Department of Information Technology in accordance
with subdivision (a) of Section 11711 provide for:
(a) The expeditious and value-effective acquisition of information
technology and telecommunications goods and services to satisfy
state requirements.
(b) The acquisition of information technology and
telecommunications goods and services within a competitive framework.
(c) The delegation of authority by the Department of Information
Technology to each state agency that has demonstrated to the
department's satisfaction the ability to conduct value-effective
information technology and telecommunications goods and services
acquisitions.
(d) The exclusion from state bid processes, at the state's option,
of any vendor having failed to meet prior contractual requirements
related to information technology or telecommunications goods and
services.
(e) The review and resolution of protests submitted by a vendor or
vendors with respect to any information technology or
telecommunications goods and services acquisitions.
11786. Commencing on January 1, 1997, the Department of
Information Technology shall prenegotiate the repetitively used terms
and conditions in the state's model contract with each interested
vendor who bids or proposes on information technology or
telecommunications procurements. The contract language shall be kept
on file, as a matter of public record, and shall remain operational
until either the state or the vendor provides 30 days' notice to the
other party that new negotiations are deemed appropriate.
If, for a particular procurement, the state seeks to make any
further changes to either the negotiated or the standard contract
language, or both, it shall identify those changes to each bidder or
proposer prior to the due date for the bid or proposal. If for a
particular procurement, a bidder or proposer seeks to propose a
negotiated change or standard contract language change, it shall make
this identification within the timeframe identified in the
solicitation document.
11787. (a) It is the intent of the Legislature that agencies of
the State of California utilize an acquisition method that is
compatible with their short- and long-term fiscal needs in contracts
relating to commodities and information technology and
telecommunications goods and services. State agencies should be able
to specify their anticipated life cycle requirements that would
become one of the criteria for procurement selection. These agencies
should be given the choice of vendors to meet statewide
standardization needs, unique service requirements, application
requirements, and long-term satisfaction criteria. There is a need
for the State of California to enter into long-term contracts with
annual cancellation and fund-out clauses, as required, to protect the
state's interests as well as provide the option for multiyear
renewals to encourage vendors to develop higher levels of service and
support throughout the contracts.
(b) The state may utilize multiple awards including federal
General Service Administration Multiple Awards Schedules in
procurements for commodities and information technology and
telecommunications goods; master services agreements for information
technology personal services; master agreements for equipment; and
master equipment services agreements. For purposes of this
subdivision, a multiple award is an award of an indefinite quantity
contract for one or more similar goods to more than one vendor.
Except for possible multiple awards as permitted by this subdivision,
all the requirements of this chapter pertaining to other types of
information technology and telecommunications procurements shall be
followed. The Department of Information Technology shall ensure that
multiple award schedules are in compliance with all other applicable
statutes.
Notwithstanding any other provision of law, state agencies, in
exercising their delegation of procurement authority from the
Department of Information Technology, may make awards to vendors, in
an amount not to exceed two hundred fifty thousand dollars ($250,000)
per transaction, who have multiple award schedules with the General
Services Administration of the United States on the same terms,
conditions, and prices if the vendor is willing to do so. The
Department of Information Technology may also develop multiple award
agreements for use by state agencies in the same manner.
11788. The Department of Information Technology shall maintain,
in the State Administrative Manual, policies and procedures governing
the acquisition and disposal of information technology and
telecommunications goods and services.
(a) Acquisition of information technology and telecommunications
goods and services shall be conducted through competitive means,
except when the Department of Information Technology determines that
(1) the goods and services proposed for acquisition are the only
goods and services that can meet the state's need, or (2) the goods
and services are needed in cases of emergency where immediate
acquisition is necessary for the protection of the public health,
welfare, or safety. The acquisition mode to be used and the
procedure to be followed shall be approved by the Director of
Information Technology. The Department of Information Technology
shall maintain, in the State Administrative Manual, appropriate
criteria and procedures to ensure compliance with the intent of this
chapter. These criteria and procedures shall include acquisition and
contracting guidelines to be followed by state agencies with respect
to the acquisition of information technology and telecommunications
goods and services. These guidelines may be in the form of standard
formats or model formats.
(b) Contract awards for all large-scale systems integration
projects shall be based on the proposal that provides the most
value-effective solution to the state's requirements, as determined
by the evaluation criteria contained in the solicitation document.
Evaluation criteria for procurement of information technology and
telecommunications services, including systems integration, shall
provide for the selection of a vendor on an objective basis not
limited to cost alone.
(1) The Department of Information Technology shall invite active
participation, review, advice, comment, and assistance from the
private sector and state agencies in developing procedures to
streamline and to make the acquisition process more efficient,
including, but not limited to, consideration of comprehensive
statements in the request for proposals of the business needs and
governmental functions, access to studies, planning documents,
feasibility study reports and draft requests for proposals applicable
to procurements, minimizing the time and cost of the proposal
submittal and selection process, and development of a procedure for
submission and evaluation of a single rather than multiple proposals.
(2) Solicitations for acquisitions based on evaluation criteria
other than cost alone shall provide that sealed cost proposals shall
be submitted and that they shall be opened at a time and place
designated in the solicitation for bids and proposals. Evaluation of
all criteria, other than cost, shall be completed prior to the time
designated for public opening of cost proposals, and the results of
the completed evaluation shall be published immediately before the
opening of cost proposals. The state's contact person for
administration of the procurement shall be identified in the
solicitation for bids and proposals, and that person shall execute a
certificate under penalty of perjury, which shall be made a permanent
part of the official procurement file, that all cost proposals
received by the state have been maintained sealed and under lock and
key until the time cost proposals are opened.
(c) The acquisition of hardware purchased independently of a
system integration project may be made on the basis of lowest cost
meeting all other specifications.
(d) Whenever an acquisition is based upon cost alone, so that the
award of a contract, purchase order, or delegated purchase order is
made to the lowest responsible bidder meeting the specifications, the
5-percent small business preference provided for in Chapter 6.5
(commencing with Section 14835) of Part 5.5 and the regulations
implementing that chapter shall be accorded to all qualifying small
businesses.
(e) For all transactions formally advertised, evaluation of
bidders' proposals for the purpose of determining contract award for
information technology and telecommunications goods shall provide for
consideration of a bidder's best financing alternatives, including
lease or purchase alternatives, if any bidder so requests, not less
than 30 days prior to the date of final bid submission, unless the
acquiring agency can prove to the satisfaction of the Department of
Information Technology that a particular financing alternative should
not be so considered.
(f) Acquisition authority may be delegated by the Department of
Information Technology to any state agency that has been determined
by the Department of Information Technology to be capable of
effective use of that authority. This authority may be limited by
the Department of Information Technology. Acquisitions conducted
under delegated authority shall be reviewed by the Department of
Information Technology on a selective basis.
(g) To the extent practical, the solicitation documents shall
provide for a contract to be written to enable acquisition of
additional items to avoid essentially redundant acquisition processes
when it can be determined that it is economical to do so.
Further, it is the intent of the Legislature that, if a state
information technology advisory committee or a state
telecommunications advisory committee is established by the Governor
or the Director of Information Technology, the policies and
procedures developed by the Director of Information Technology in
accordance with this chapter shall be submitted to that committee,
including vendor representatives, for review and comment, and that
the comment be considered by the agency prior to the adoption of any
policy or procedure.
(h) Protest procedures shall be developed to provide bidders an
opportunity to protest formally with respect to any acquisition
conducted in accordance with this chapter. The procedures shall
provide that protests must be filed no later than five working days
after the issuance of an intent to award. Authority to protest may
be limited to participating bidders. The Director of Information
Technology, or a person designated by the director, may consider and
decide on initial protests. A decision regarding an initial protest
shall be final. If prior to the last day to protest, any vendor who
has submitted an offer files a protest with the agency against the
awarding of the contract or purchase order on the ground that his or
her bid or proposal should have been selected in accordance with the
selection criteria in the solicitation document, the contract or
purchase order shall not be awarded until either the protest has been
withdrawn or the State Board of Control has made a final decision as
to the action to be taken relating to the protest. Within 10
calendar days after filing a protest, the protesting vendor shall
file with the State Board of Control a full and complete written
statement specifying in detail the grounds of the protest and the
facts in support thereof.
(i) Information technology and telecommunications goods that have
been determined to be surplus to state needs shall be disposed of in
a manner that will best serve the interests of the state. Procedures
governing the disposal of surplus goods may include auction or
transfer to local governmental entities.
(j) A vendor may be excluded from bid processes if the vendor's
performance with respect to a previously awarded contract has been
unsatisfactory, as determined by the state in accordance with
established procedures which shall be maintained in the State
Administrative Manual. This exclusion may not exceed 360 calendar
days for any one determination of unsatisfactory performance. Any
vendor excluded in accordance with this section shall be reinstated
as a qualified vendor at any time during this 360-day period, upon
demonstrating to the agency's satisfaction that the problems which
resulted in the vendor's exclusion have been corrected.
11789. In addition to the mandatory requirements enumerated in
Section 11788, the acquisition policies developed and maintained by
the Department of Information Technology in accordance with this
chapter may provide for:
(a) Price negotiation with respect to contracts entered into in
accordance with this chapter.
(b) System or equipment component performance, or availability
standards, including an assessment of the added cost to the state to
receive contractual guarantee of a level of performance.
(c) Requirement of a bond or assessment of a cost penalty with
respect to a contract or consideration of a contract offered by a
vendor whose performance has been determined unsatisfactory in
accordance with established procedures maintained in the State
Administrative Manual as required by Section 11788.
11790. Beginning on December 15, 1997, and annually thereafter,
the Department of Information Technology shall provide a report
listing all acquisitions from the previous fiscal year that were
subject to this chapter and involved the replacement of a computer
central processing unit when only one bid was received and the bid
was from the vendor whose equipment was being replaced. The report
shall be submitted to the chairperson of the committee in each house
that considers appropriations, the Chairperson of the Joint
Legislative Committee on Information Technology in State Government,
and the Chairperson of the Joint Legislative Budget Committee.
11791. The Department of Information Technology shall develop
policies and procedures that implement the intent of this chapter.
11792. The Department of Information Technology may, in addition
to fulfilling the mandatory requirements enumerated in Section 11788,
adopt rules and regulations that are necessary for the purposes of
this chapter.
11793. Until such time as the Department of Information
Technology has published in the State Administrative Manual the
procedures required in accordance with Section 11788, acquisitions of
information technology and telecommunications goods and services
shall be accomplished in accordance with existing State
Administrative Manual procedures for the acquisition of information
technology goods and services with the Department of Information
Technology serving in the place of the Department of General
Services.
11794. The Director of Information Technology may make the
services of the agency under this chapter available, upon those terms
and conditions as may be deemed satisfactory, to any tax-supported
public agency in the state, including a school district, for
assisting the agency in the purchase or lease of information
technology or telecommunications goods or services.
11795. (a) The Department of Information Technology is authorized
to make purchases or leases of information technology or
telecommunications goods and services, other than printed material,
on behalf of any city, county, city and county, district, or other
local governmental body or corporation empowered to expend public
funds for the acquisition of goods or services, upon written request
of the local agency, provided that the purchase or lease can be made
by the Department of Information Technology upon the same terms,
conditions, and specifications at a price lower than the local agency
can obtain through its normal acquisition procedures. The state
shall incur no financial responsibility in connection with purchases
for local agencies under this section. No purchase or lease shall be
for less than five hundred dollars ($500) and the local agency shall
accept sole responsibility for payment to the vendor. All purchases
and leases shall be subject to audit and inspection by the local
agency for which made.
(b) Purchases and leases under this section shall be subject to
the provisions of this chapter.
(c) A charge shall be made to each local agency availing itself of
this service, the charge to be not less than the estimated cost to
the Department of Information Technology of rendering the service,
including costs incurred by the Department of Information Technology
in preparation for a purchase or lease requested
by a local agency in instances where the
request is canceled or withdrawn by the local agency prior to award
of the contract or purchase order by the Department of Information
Technology.
11796. Any contract for information technology or
telecommunications goods or services, to be manufactured or performed
by the contractor especially for the state and not suitable for sale
to others in the ordinary course of the contractor's business may
provide, on the terms and conditions the agency deems necessary to
protect the state's interests, for progress payments for work
performed and costs incurred at the contractor's shop or plant,
provided that not less than 10 percent of the contract price is
required to be withheld until final delivery and acceptance of the
goods or services, and provided further, that the contractor is
required to submit a faithful performance bond, acceptable to the
agency, in a sum not less than one-half of the total amount payable
under the contract securing the faithful performance of the contract
by the contractor.
11797. (a) Notwithstanding any other provision of law, state and
local agencies may enter into agreements to pay for
telecommunications services to be utilized beyond the current fiscal
year. "Telecommunications services" for purposes of this section
shall include, but not be limited to, central office-based leased
communications systems equipped with primary station lines, capable
of receiving in-dialed voice and data communications and capable of
out-dialing voice and data communications and any customer-premised
equipment, software, and installation costs necessary for utilization
by the state or local agency.
(b) State and local agencies may enter into financing agreements
for the procurement of telecommunications services whenever the state
or local agency may derive monetary benefit and greater services as
a result of its ability to acquire capital at lower interest cost
than the supplier of those services can provide directly to the
agency or whenever the state or local agency may obtain a reduced
cost of service based on length of agreement if offered by the
supplier of telecommunications service.
(c) Procurement requirements for financing of telecommunications
equipment and services shall be considered to have been met whenever
the financing is within the scope of public sector requests for
proposals or whenever the financing is offered by a sole source
provider or that provider's assignee.
(d) This section shall not be construed to alter or circumvent any
existing procurement procedure or requirement, nor to alter or
circumvent the procurement authority of any state or local agency.
11798. (a) The Director of Information Technology shall conduct a
feasibility study assessing fiscal, technical, and operational
factors to be considered in reforming the state's procurement process
from a labor and paper intensive procurement process to an
end-to-end all electronic system of on-line procurement whereby data
bases of open procurements are made accessible to vendors by computer
and modem. A component of the feasibility study shall continue a
pilot program established to define the requirements of an end-to-end
all electronic procurement system. The feasibility study shall
encompass all aspects of procurement, including construction,
information technology and telecommunications, commodities, supplies,
materials, and physical or consulting services.
(b) The feasibility study shall be designed to explore the
potential for realizing, through applications of appropriate
end-to-end all electronic procurement systems and information
technology applications, procurement enhancements that may include,
but not be limited to, the following:
(1) Providing capacity to electronically categorize procurement by
approximate dollar value, geography, and due date.
(2) Offering ability for immediate access of status of
procurements, through posting of completed procurements.
(3) Realizing cost savings through a resulting shift from a labor
and paper intensive system to an electronic system.
(4) Achieving long-term savings in procurements by expanding the
network of qualified suppliers through electronic marketing of public
contract opportunities.
(5) Developing strategies to ensure equitable access to contract
opportunities and procurement information to small and emerging
business enterprises.
(c) The feasibility study shall include recommendations, based on
study findings, to validate the requirements and value of an
end-to-end all electronic procurement system, and provide for the
development of specified data. Study recommendations shall also
include a timeline from a pilot phase to full implementation of an
electronic system for all aspects of procurement, including
construction, electronic data processing and telecommunications,
commodities, supplies, materials, and physical or consulting
services.
(d) The feasibility study shall include consideration of the
Controller's prepayment claim audit requirements and identify means
to incorporate these requirements into any payment system resulting
from this study.
(e) The results of the feasibility study shall be submitted, not
later than August 1, 1997, to the Governor and the Legislature.
11799. The Legislature finds and declares that, with the advent
of deregulation in the telecommunications industry, substantial cost
savings can be realized by the state through the specialized
evaluation and procurement of alternative telecommunications systems.
All contracts for the acquisition of telecommunications services
and all contracts for the acquisition of telecommunications goods,
whether by lease or purchase, shall be made by, or under the
supervision of, the Department of Information Technology. All
procurements shall be accomplished in accordance with this chapter,
except to the extent any directive or provision is uniquely
applicable to information technology acquisitions. The Department of
Information Technology shall have responsibility for the
establishment of policy and procedures for telecommunications. The
Department of Information Technology shall have responsibility for
the establishment of tactical policy and procedures for information
technology consistent with statewide strategic policy. The
Department of Information Technology shall have review and approval
responsibility of information technology and telecommunication
acquisitions to assure consistency with budgetary objectives. The
Trustees of the California State University shall assume the
functions of the Department of Information Technology with regard to
procurement of telecommunication goods and services by the California
State University. The trustees shall grant to the Department of
Information Technology an opportunity to bid whenever the university
solicits bids for telecommunications goods and services.
SEC. 3. Section 11112.3 of the Penal Code is amended to read:
11112.3. (a) The Attorney General shall appoint a RAN Advisory
Committee to review the master plan, policy guidelines, and
administrative procedures prepared by the department and advise the
Attorney General of any modifications the committee deems necessary.
Final approval and acceptance of the RAN Advisory Committee
proposals shall be made by the Attorney General.
(b) The RAN Advisory Committee shall be composed of one
representative from each of the following: The League of California
Cities, California Peace Officers' Association, California District
Attorneys' Association, California Police Chiefs' Association,
California State Sheriffs' Association, County Supervisors'
Association of California, Department of General Services, Department
of Information Technology, and the Department of Justice. The
members of the committee shall select a chairperson. The members
shall serve without compensation, but reasonable and necessary travel
and per diem expenses incurred by committee members shall be
reimbursed by the department. The RAN Advisory Committee shall
terminate January 1, 1989, unless extended by legislation enacted
prior thereto.
SEC. 4. Chapter 3 (commencing with Section 12100) of Part 2 of
Division 2 of the Public Contract Code is repealed.
SEC. 5. Chapter 3.5 (commencing with Section 12120) of Part 2 of
Division 2 of the Public Contract Code is repealed.
SEC. 6. Section 4902 of the Unemployment Insurance Code is amended
to read:
4902. The report, required by Section 4901, shall be transmitted
to the Legislative Analyst, the Assembly Committees on Insurance,
Consumer Protection, Governmental Efficiency, and Economic
Development, Labor and Employment, and Ways and Means, the Senate
Committees on Industrial Relations and Budget and Fiscal Review, the
Department of Finance, and the Governor, on or before February 1 of
each even-numbered year. The report shall do all of the following:
(a) Provide a strategic information plan that describes the
long-term goals and strategies which shall be undertaken by the
department to create an information technology environment that will
not only support the achievement of the department's strategic
business mission and goals but set the foundation for using
information technology to make substantial and sustainable
improvements in how it conducts business. The plan shall cover a
10-year planning horizon and include the department's information
vision, its information management principles, and long-term goals
and strategies for achieving its information vision.
(b) Provide a tactical information plan of specific automation and
infrastructure projects to be undertaken within three years of the
date of the report. The plan shall include project description and
scope, consistency with the strategic information plan, relationship
to other projects, priority of development, estimated project costs
and benefits, and improvements in services. For automation projects,
it shall also provide reductions in personnel and operating costs,
and identification of how personnel and cost savings will be used,
transferred, or otherwise accounted for.
(c) Not necessarily be in addition to or replace any reports now
submitted by the director to the Department of Information
Technology.
SEC. 7. Section 4903 of the Unemployment Insurance Code is amended
to read:
4903. (a) Thirty days prior to the release of the report
identified in Section 4901, the director shall submit it to the
Department of Information Technology, which shall review and comment
on it. These comments shall be attached to the report by the
director and distributed with the report.
(b) When commenting on the report, the Department of Information
Technology shall include, but not be limited to, an assessment of
whether:
(1) The requirements for the report have been met.
(2) The strategic plan is consistent with the formal strategic
plan submitted separately to the Office of Information Technology.
(3) The costs and benefits identified in the report are consistent
with the projects previously submitted for approval or contained in
the Information Management Annual Plans.