BILL ANALYSIS �
AB 1498
Page 1
( Without Reference to File )
CONCURRENCE IN SENATE AMENDMENTS
AB 1498 (Buchanan and Achadjian)
As Amended June 28, 2012
Majority vote
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|ASSEMBLY: | |(March 22, |SENATE: |35-0 |(July 5, 2012) |
| | |2012) | | | |
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(vote not relevant)
Original Committee Reference: BUDGET
SUMMARY : Maintains, if the Governor's Reorganization Plan No. 2 of
2012 (GRP 2) is enacted, a direct reporting relationship to the
Governor for the State Chief Information Officer (SCIO) and states
legislative intent for the Governor to develop a transition plan for
information technology (IT) procurement authority from the
Department of General Services (DGS) to the Department of
Technology.
The Senate amendments delete the Assembly version of this bill, and
instead condition the following on the enactment of GRP 2:
1)Require the SCIO to report directly to the Governor on issues
relating to IT.
2)State the intent of the Legislature that the Governor, or his or
her designee, develop a plan for transitioning IT procurement
authority from DGS to the Department of Technology.
3)Require the plan to evaluate the appropriate scope, timing, and
methodology for:
a) Transitioning procurement authority for IT goods and
services from DGS to the Department of Technology; and,
b) Developing or transferring the appropriate human and
capital resources for IT procurement to the Department of
Technology.
4)State the intent of the Legislature for the planning process to
consider stakeholder input from relevant groups including, but not
AB 1498
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limited to, the Milton Marks "Little Hoover" Commission, the
Legislature, Department of Finance, DGS and the Department of
Technology.
EXISTING LAW :
1)Establishes in state government the California Technology Agency
(CTA), which duties include establishing and enforcing state IT
strategic plans, policies, standards, and enterprise architecture.
2)Establishes the CTA Secretary as a member of the Governor's
cabinet.
3)Declares that the CTA Secretary is the SCIO.
4)Requires that all contracts for the acquisition of IT goods or
services, whether by lease or purchase, be made by or under the
supervision of DGS.
5)Requires DGS and CTA to coordinate the development of IT
procurement policies and procedures, but that CTA shall have the
final authority in the determination of any general IT procurement
policy and DGS shall have the final authority in the determination
of any procedures.
AS PASSED BY THE ASSEMBLY , this bill expressed the intent of the
Legislature to enact statutory changes relating to the Budget Act of
2012.
FISCAL EFFECT : Unknown
COMMENTS : GRP 2 creates the new Government Operations Agency (GOA)
which consolidates entities that administer state operations. GRP 2
recreates CTA as the Department of Technology under GOA. Its
director will also be the SCIO and retain the responsibilities of
the previous CTA secretary, although the SCIO will no longer be a
member of the Governor's cabinet.
There is concern that the change to a department is a demotion and
will negatively affect the dynamic between the SCIO and other agency
heads, resulting in devolution of the state's significant technology
progress. This bill does not replace the SCIO as a member of the
Governor's cabinet, but does reestablish a direct reporting
relationship.
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California government IT procurement has long been an ongoing issue.
Currently, the SCIO develops IT acquisition policy, DGS develops
the procedures to effectuate it, and the Department of Finance
provides financial input. This trifurcated system causes large
technology projects to wind through a bureaucracy labyrinth that is
often conducted on a case-by-case basis according to the technology
and business needs of the requesting agency, department or project
staff. According to the Legislative Analyst's Office, this approach
does not allow the state to optimize service contracts, order in
bulk, or to buy strategically. In some cases, the technology is
obsolete by the time the project is finally implemented.
The Little Hoover Commission expressed support for consolidating IT
procurement in its September 2011 report commending the newly formed
CTA: "As the new agency grows, its role in procurement policy is
likely an unfinished issue and should be watched to ensure the
agency has sufficient tools to execute the state's goals for
technology."
This bill expresses legislative intent for the Governor to develop a
plan to transition IT procurement authority to the Department of
Technology from DGS.
Analysis Prepared by : Sarah Weaver / SPECIAL COMM. ON GRP NO. 2 /
(916) 319-3874
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