BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2100
                                                                  Page  1

          Date of Hearing:  May 2, 2000

               ASSEMBLY COMMITTEE ON CONSUMER PROTECTION, GOVERNMENTAL  
                        EFFICIENCY, AND ECONOMIC DEVELOPMENT 
                                 Susan Davis, Chair
                    AB 2100 (Dutra) - As Amended:  March 29, 2000

          SUBJECT:  California Electronic Government and Information Act.
                     
          SUMMARY:  Establishes the California Internet Portal Management  
          Authority to oversee the development of a single state Internet  
          portal, repeals provisions requiring the posting of specified  
          information on the Internet by state agencies and departments,  
          and requires the Director of the Department of Information  
          Technology (DOIT), also known as the Chief Information Officer  
          of the State (CIO), to convene an Electronic Government Task  
          Force, as specified.  Specifically,  this bill  :  

          1)Eliminates numerous state laws requiring agencies and  
            departments to post specified information on their respective  
            Internet websites.  These requirements currently include  
            information about individuals licensed by the Department of  
            Consumer Affairs, requirements that state Internet sites  
            provide easy access for citizen complaints, limitations on how  
            state agencies are to utilize electronically collected  
            personal information, required free access to the California  
            Code of Regulations and other specified provisions.  Many of  
            these laws are recast under the auspices of the bill's  
            framework.

          2)Establishes the California Internet Portal Management  
            Authority (Authority) in DOIT, managed by the Director of  
            DOIT.  The bill makes numerous findings and declarations  
            relating to the wisdom of using Internet technology to provide  
            more efficient and effective delivery of services to  
            California citizens.

          3)States that there shall only be one domain of the State of  
            California on the Internet, to include all state agencies, the  
            legislative and judicial branches and all entities that had  
            been identified as part of the domain of the State of  
            California as of January 1, 2000.

          4)Forbids any state agency, except the Secretary of State, from  
            posting information on the Internet unless a proposal for  








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            posting has been approved by the Authority, as specified.  The  
            Authority has 10 business days to determine whether a proposal  
            is consistent with specified rules, regulations and technical  
            criteria overseeing the Authority's workings.

          5)Requires the CIO to convene an Electronic Government Task  
            Force (Task Force), made up of individuals from within state  
            government, as determined by the CIO.  The Task Force is to  
            convene a business advisory council made up of private sector  
            individuals, as specified, and the advisory council is to  
            develop a strategic plan for the development of a "policy to  
            create an enterprise system environment for all electronic  
            government initiatives" by December 31, 2001.

          6)Allows the Authority to post information on the Internet with  
            or without the prior approval of that agency if the Authority  
            is implementing the policy recommendations of the Task Force,  
            as specified.

          7)States that the Authority shall post information on the  
            Internet, or direct a state agency to do so, "should there be  
            an appropriation in the annual Budget Act directing the  
            posting of specific content on the Internet."

          8)Requires the Authority to develop an Internet Security Policy  
            by December 31, 2002.

          9)Requires the Authority to submit a quarterly letter to the  
            Joint Legislative Budget Committee with a complete listing of  
            all posting proposals submitted, their cost and other  
            specified information.

          10)Details the Authority's Internet posting and privacy  
            requirements and restrictions, as specified.  These include a  
            prohibition on the sale or distribution of electronically  
            collected personal information by state agencies unless prior  
            written permission is received from the user.

          11)Requires the Authority to adopt regulations for state agency  
            use of digital signatures by January 1, 2002.

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








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          13)Requires the Controller to send to the Authority by November  
            1, 2001, guidelines for the adoption of electronic payment  
            rules and regulations, as specified.

          14)Deletes explicit references requiring the Public Utilities  
            Commission to publish its decisions and resolutions on the  
            Internet, as specified.

           EXISTING LAW  :   

          1)Establishes DOIT and grants it general oversight of state  
            information technology programs, as specified.

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

           FISCAL EFFECT  :  Unknown, potentially significant, General Fund  
          administrative costs to DOIT associated with the creation and  
          ongoing activities of the Authority and the Task Force.  Unknown  
          administrative and programmatic savings to state agencies  
          through the use of standardized digital signature and electronic  
          payment infrastructures.
                    
           COMMENTS  :   

           1)Purpose of Bill  

            According to the author's office, AB 2100 will provide a  
            "framework for state agencies to begin to reevaluate their  
            interaction with citizens, businesses, and other government  








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            agencies through the power of Internet technology, ultimately  
            enabling the state to provide more efficient and effective  
            state services."  The author's office indicates that the state  
            currently does not utilize a single framework for the  
            development of its websites, resulting in 115 separate agency  
            ideas about what "e-government" is and how such initiatives  
            should be implemented.

            The author additionally notes that AB 2100 is modeled after  
            legislation enacted in other states such as Arizona,  
            Massachusetts, Missouri, Utah and Washington.  The objective  
            of the bill is to enact a policy where "citizens should be  
            able to access information and services they require from and  
            initial contact point" with a state.

           2)Under Guise of "E-Government" Efficiency, Does This Bill  
            Simply Create Another Layer of Bureaucracy?  

            While the author's goals and objectives seem laudable, it  
            could be argued that the bill simply creates another layer of  
            bureaucracy by requiring state agencies and departments to  
            first gain permission from the Authority created in the bill  
            prior to posting information on their Internet site.  While it  
            is important that DOIT play a coordinating role in seeing that  
            information is easily obtainable and usable, it does not seem  
            appropriate that the Authority would be able to post  
            information on behalf of a state agency without the approval  
            or knowledge of that state agency (page 12, lines 18-26).   
            That seems to be a possible prescription for confusion.

            The author should address this general concern, and the  
            committee may wish to amend the bill accordingly if it  
            believes that it could be seen as an additional bureaucratic  
            layer.

           3)Bill Would Seem to Significantly Expand DOIT Authority; DOIT  
            May be Better Off Focusing on Core Competencies for Time Being  

            The bill could be characterized as a significant expansion of  
            the authority of DOIT.  Up to this point DOIT has been focused  
            more on overseeing major information technology procurement  
            projects and heading up the state effort to combat possible  
            Y2K disasters.  Indeed, the Governor's January Budget stated  
            that DOIT "is currently developing a new organizational  
            structure and Information Technology Model which will be  








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            designed to more fully maximize the authority" granted under  
            its authorizing legislation.  The model is to be finished in  
            the spring of this year.  Given this and the numerous problems  
            that high-profile information technology procurement projects  
            have had in California, it may be more appropriate to focus  
            DOIT's energies on these projects.  DOIT should be allowed to  
            develop their new model before requiring all state agencies to  
            ask their permission prior to posting information on their  
            Internet sites.

            The author should address this issue before the committee, and  
            the committee may wish to amend the bill accordingly.

           4)Related Legislation  

                 AB 2163 (Cunneen) - Would make various changes to DOIT  
               authorizing statute, including establishing one Internet  
               portal.

                 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.

                 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 DOIT 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.

          REGISTERED SUPPORT / OPPOSITION:   

           Support 
           
          SGI

           Opposition 
           
          None on file








                                                                  AB 2100
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          Analysis Prepared by:  Robert Herrell / C.P., G.E. & E.D. /  
          (916) 319-2076