BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 2100
                                                                    Page  1

          Date of Hearing:   April 3, 2000

                    ASSEMBLY COMMITTEE ON INFORMATION TECHNOLOGY 
                                  John Dutra, Chair
                AB 2100 (Dutra & Honda) - As Amended:  March 29, 2000
           
          SUBJECT  : California Electronic Government and Information Act.


           SUMMARY  : AB 2100 would establish the California Internet Portal  
          Management Authority to administer general policies for the  
          management and maintenance of the State of California domain and  
          enact a strategic plan for the development of an enterprise  
          system environment, as developed by an Electronic Government  
          Task Force and its business advisory council.   Specifically,  
           this bill  :  

          1)Enacts the California Electronic Government and Information  
            Act.

          2)Finds and declares that the use of internet technology can  
            provide more efficient and effective delivery of services to  
            citizens and that it is the purpose of the chapter to increase  
            the amount of information available to Californians.

          3)Declares the intent of the Legislature to encourage uniform  
            standards across departments, maximize cost savings through  
            the use of enterprise systems, improve the provision of  
            services by allowing for on-line payments, applications, and  
            public records posting, encourage improved internal business  
            models, and protect the privacy of Californians through the  
            use of advanced digital signature and encryption technologies.

          4)Defines the terms domain, Internet, and state agencies.

          5)Provides for full execution of the obligations imposed on  
            agencies under the Public Records Act and Information  
            Practices Act, unless specifically provided otherwise by this  
            Act.

          6)Affirmatively declares that there shall only be one domain of  
            the State of California, that the domain includes all branches  
            and agencies of state government, and that the domain shall be  
            administered by the California Internet Portal Management  
            Authority.








                                                                    AB 2100
                                                                    Page  2


          7)Establishes the California Internet Portal Management  
            Authority.

          8)Vests the Authority with the responsibilities of  
            administering, managing, maintaining, and establishing  
            policies for the use of the California Internet domain.

          9)Requires that a proposal for posting information on the  
            Internet be approved by the Authority, in accordance with the  
            criteria established by this chapter for departments to  
            implement new Internet postings.

          10)Requires the Authority to establish technical criteria and  
            guidelines for the approval and denial of proposed Internet  
            postings.

          11)Requires the Authority to respond to proposals for posting  
            within 10 days of submission.

          12)Denies the Authority the ability to deny a posting request  
            based on the content of the proposal, unless the proposal  
            fails to include the content provisions required by this Act,  
            subsequently, all content proposed by a state agency shall be  
            owned by the state agency.

          13)Allows the Authority to post information on the Internet on  
            behalf of any state agency in the implementation of the  
            Electronic Government Task Force's enterprise system  
            recommendations or in response to a direct appropriation in  
            the Budget Act.

          14)Directs the Authority to submit quarterly reports to the  
            Joint Legislative Budget Committee with a listing of all  
            proposals submitted, the determination made, the  
            implementation and maintenance costs of the proposal and,  
            additionally, the same listing of all proposals requested by  
            individual legislators and generated in the Budget Act.

          15)Requires the Authority to post information submitted to it by  
            the Legislature in accordance with current statutory  
            requirements that the Legislature to provide specific  
            information on the Internet.

          16)Directs the Authority to submit quarterly reports to the  








                                                                    AB 2100
                                                                    Page  3

            Joint Legislative Budget Committee with a listing of all  
            proposals submitted, the determination made, the  
            implementation and maintenance costs of the proposal and,  
            additionally, the same listing of all proposals requested by  
            individual legislators and generated in the Budget Act.

          17)Grants all information posted on the Internet prior to the  
            establishment of the Authority statutory approval until June  
            30, 2002, except as specified.

          18)Requires the Authority to implement the enterprise system  
            policy recommendations of the Electronic Government Task Force  
            by December 31, 2002.

          19)Requires the Authority to develop an Internet Security  
            Policy, and issue guidelines for its implementation. The  
            guidelines would be exempt from the Public Records Act.

          20)Allows the Authority to develop the necessary rules and  
            regulations for the implementation and administration of the  
            Act.

          21)Establishes an Electronic Government Task Force, which is  
            charged with convening a business advisory council twice a  
            year, and requires that the Task Force develop a strategic  
            plan for the development of an enterprise system environment.

          22)Disapproves for posting any proposal which does not include  
            direct access to a plain-language privacy policy or any other  
            notice required by the Act.

          23)Restates existing law regarding the electronic collection of  
            personal information by any state agency and requires notice  
            to any user of the use or existence of any information  
            gathering method, device or identifier.

          24)Reinstates existing law regarding the prohibition of a state  
            agency distributing or selling electronically collected  
            personal information about individuals without prior, written  
            permission and requires its disposal upon request.

          25)Restates existing law regarding the privacy of personal  
            information of public officials on the Internet.

          26)Restates the Citizen Complaint Act of 1997, which required  








                                                                    AB 2100
                                                                    Page  4

            certain complaint and comment forms to be posted on the  
            Internet.

          27)Restates the Grant Information Act of 1999, which required  
            specific information regarding grant availability and  
            eligibility to be posted on the Internet.

          28)Requires state agencies to submit proposals to the Authority  
            for the posting of information on the Internet pursuant to the  
            requirements of the Bagley-Keene Open Meeting Act.

          29)Requires the Office of Administrative Law to submit a  
            proposal for posting of the full text of the California Code  
            of Regulations.

          30)Requires by January 1, 2002 that the Authority adopt  
            regulations for the use of digital signatures by state  
            agencies, restating guidelines similar to those in existing  
            law, and grandfathers in the guidelines developed by the  
            Secretary of State under existing law until such time as the  
            regulations proposed by the Authority go into effect.

          31)Directs the Authority to adopt rules and regulations for  
            public entities to receive electronic payments for any tax,  
            assessment, rate, fee, charge, rent, interest, penalty or any  
            other account receivable by December 31, 2001.

          32)Requires the Controller to provide by November 1, 2001  
            guidelines for the adoption of rules and regulations for  
            electronic payment functions including, receipting,  
            disbursing, and accounting and requires the Authority to  
            confer with the Controller 60 days prior to amending any  
            electronic payment rules or regulations.

          33)States the intent of the Legislature that state agencies  
            absorb any additional fees or chares associated with the use  
            of electronic payments whenever possible.  The Authority is  
            required to set up guidelines for the pass through of those  
            charges should they be a necessary association of the use of  
            electronic payment.

          34)Updates the Public Records Act exemption rolls to include the  
            guidelines adopted for implementation of the Internet Security  
            Policy.









                                                                    AB 2100
                                                                    Page  5

          35)Repeals Internet posting requirements in current law  
            regarding information on the suspension and revocations of  
            licenses issued by a board, specified information regarding  
            physicians and surgeons, enforcement actions taken by the  
            Department of Real Estate, the posting of the California State  
            Contracts Register, information forwarded to the Cal-EPA from  
            local governments regarding changes in regulated substance  
            regulations, written reports by the Insurance Commissioner,  
            Public Utility Commission meeting notes and agendas, and PUC  
            minority and women business database clearinghouse posting.

           EXISTING LAW:   

          1)Establishes the Department of Information Technology (DOIT)  
            and grants the Department general oversight of state  
            information technology programs.

          2)Requires the Secretary of State to issue and maintain rules  
            and regulations for the use of digital signatures (Digital  
            Signature Act of 1995) and establishes the Uniform Electronic  
            Transactions Act.

          3)Upholds the provisions of the Public Records Act and the  
            Information Practices Act as they apply to statutes requiring  
            or restricting specific Internet-related activities by state  
            agencies.

          4)Establishes specific privacy and security guidelines for state  
            agencies to adhere to when involved in Internet-related  
            activities.

          5)Establishes the Citizen Complaint Act of 1997 and the Grant  
            Information Act of 1999.

          6)Requires that numerous departments and agencies post specific  
            information and content on the Internet. 

           FISCAL EFFECT  : Unknown, potentially significant administrative  
          costs to the Department of Information Technology associated  
          with the creation and on-going activities of the California  
          Internet Portal Management Authority and the Electronic  
          Government Task Force.  Unknown, potentially significant  
          administrative and programmatic savings to state agencies  
          implementing enterprise system environment, embracing new, more  
          efficient business practices, and using standardized digital  








                                                                    AB 2100
                                                                    Page  6

          signature and electronic payment infrastructures.

           COMMENTS  :   

          1)Need for Bill  

            According to the author's office, "the California Electronic  
            Government and Information Act, provides a framework for the  
            state to begin to reevaluate the way agencies interact with  
            citizens, businesses and each other through the Internet,  
            enabling agencies to truly provide more efficient and  
            effective state services.  Internet technology has transformed  
            the private sector because it has forced them to re-engineer  
            their business practices; this measure would direct one  
            Authority to determine how the State could best utilize  
            Internet technology to that end.  This new enterprise directly  
            counters the 'stovepipe' approach to technology that we  
            currently employ across departments -  where each department  
            is responsible for its own technology and electronic  
            government initiatives."

           2)Enterprise Architecture and Single Portal Approaches to  
            Electronic Government Initiatives.  

            Many other states, including Arizona, Massachusetts, Missouri,  
            Utah and Washington have adopted enterprise-wide, strategies  
            for implementation of new "e-government", "digital state"and  
            "one-portal" policies.  The basis for the successful  
            implementation of these policies has been approaching the  
            Internet, and its promise of efficiency and ease of use,  
            through a single technological architecture, attached to a  
            specific policy objective of improving citizen access and  
            "customer" service. "No Wrong Door" initiatives are based on a  
            policy that citizens should be able to access information and  
            services they require from any initial contact point with the  
            state.  

            The implementation of a "No Wrong Door" initiative in Arizona,  
            for example, requires that the CIO be aware of, set common  
            architectures, and police the electronic architecture and  
            accompanying infrastructure, including hardware, software,  
            personnel and the legal and financial restrictions, that will  
            enable the state to operate effectively.  Utah's "Digital  
            State" initiative, enacted in 1998 (SB 188, Hillyard), directs  
            the state CIO to set specific technology guidelines for state  








                                                                    AB 2100
                                                                    Page  7

            agencies, which are required to allow certain services to be  
            transacted on the Internet by July 1, 2002.

            These enterprise architecture requirements reemphasize the  
            fact that to add value to citizens, and truly make these  
            improvements cost effective and efficient propositions for the  
            state, that "e-government" cannot simply be about web pages  
            and e-mail, remote access to government information, or the  
            ability to pay fees and taxes on-line.  "E-government" must  
            represent new and better business processes and interactions  
            with citizens, businesses, and other government agencies,  
            state, local, and federal.

            The enterprise-system strategy, to be developed by the task  
            force contemplated by this measure, would be implemented by  
            the new Internet Portal Management Authority within the  
            context of the budgetary process in lieu of future statutory  
            posting requirements.  This measure would require the  
            submission of quarterly letters to the Joint Legislative  
            Budget by the Authority that detail proposals submitted, the  
            circumstances under which they were approved or denied, the  
            costs associated with the proposal for implementation and  
            long-term maintenance costs, and the enterprise solutions  
            associated with each proposal.  The cementing the role of the  
            Legislature through the budgetary process is intended to  
            resolve the "silo", "stovepipe" or "piece meal" problems  
            associated with current law.  AB 2100 also intends to resolve  
            "stovepipe" issues as far as implementation of the enterprise  
            plan is concerned by repealing existing stand-alone content  
            specific Internet posting requirements in current statute,  
            except for the posting requirements associated with the  
            Political Reform Act. 

           RELATED LEGISLATION:  

          AB 2163 (Cunneen) - Would make various changes to the Department  
          of Information Technology authorizing statute, including  
          establishing one internet portal.  The Department of Motor  
          Vehicles would issues a digital identification certificate.  CIO  
          must convene a more business and private sector-oriented  
          advisory council.

          AB 2934 (Information Technology Committee) - Clean up measure to  
          further define the ability of the Department of Motor Vehicles  
          to proceed with its on-line automobile registration project








                                                                    AB 2100
                                                                    Page  8


          SB 1371 (Sher) - Would expand the Uniform Electronic  
          Transactions Act to include a definition of transferable  
          records, specify who has control of a transferable record, and  
          establish the rights and obligations of a person who has control  
          of a transferable record.

          SB 1750 (Murray) - Would authorize the Department of Information  
          Technology to provide for the implementation of a single  
          Internet portal by January 1, 2006.  Requires the Franchise Tax  
          Board to submit to the Legislature a plan for electronic filing  
          of returns for and electronic payment of every state tax.
          
          
           SUPPORT:
           
          None on File.

           OPPOSITION:  

          None on File
           
          Analysis Prepared by  :  Mike Jacob / INFO. TECH / (916)319-3945