BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2100
                                                                  Page  1

          Date of Hearing:  May 16, 2000

               ASSEMBLY COMMITTEE ON CONSUMER PROTECTION, GOVERNMENTAL  
                        EFFICIENCY, AND ECONOMIC DEVELOPMENT 
                                 Susan Davis, Chair
                     AB 2100 (Dutra) - As Amended:  May 15, 2000

          SUBJECT:  California Electronic Government and Information Act.

          SUMMARY:  Requires the Department of Information Technology  
          (DOIT) to oversee the development and maintenance 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 DOIT 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)Requires DOIT to administer, manage, maintain, and establish  
            policies regarding the technical use of the Internet domain of  
            the state of California.  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)States that it is not the intent of the Legislature to create  
            a central authority to review the content proposed for posting  
            on the Internet, nor is it legislative intent to require state  








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            agencies to apply or make formal requests to a central state  
            Internet authority, as specified.

          5)States that DOIT shall develop technical criteria and policies  
            for proposed postings on the Internet and that DOIT shall  
            create and make available to all state agencies a "checklist"  
            associated with the technical criteria and policies  
            established by the bill.  The checklist shall include Internet  
            posting and privacy requirements and restrictions, digital  
            signature regulations, and electronic payment rules and  
            regulations, in addition to other specified information.

          6)Forbids any state agency from establishing a location to post  
            information on the Internet unless both a proposal for posting  
            and a completed checklist have been submitted to DOIT.  DOIT  
            has 10 days after receipt of this information to make a  
            determination as to whether the proposal meets statutory and  
            regulatory requirements.  The Secretary of State is exempted  
            from this requirement as it relates to the provisions of the  
            Political Reform Act of 1974.

          7)Authorizes DOIT to "deny the posting of information" on the  
            Internet if a state agency's proposal for posting does not  
            meet the requirements of this bill.

          8)States that a state agency "shall post information on the  
            Internet, should there be an appropriation in the annual  
            Budget Act directing the posting of specific content on the  
            Internet."

          9)Requires DOIT to approve for posting all information on the  
            Internet developed by Legislative Counsel pursuant to  
            specified statutes.

          10)Requires DOIT to submit a quarterly letter to the Joint  
            Legislative Budget Committee with a complete listing of all  
            proposals submitted, the determination made by DOIT, the cost  
            of implementing and maintaining each proposal and the  
            enterprise solutions associated with each proposal.

          11)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  








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            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.

          12)Requires DOIT to develop an Internet Security Policy by  
            December 31, 2002.

          13)Details DOIT'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.

          14)Requires DOIT to adopt regulations for state agency use of  
            digital signatures by January 1, 2002.

          15)Requires DOIT 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.

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

          17)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  








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            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 administration  
          and supervision of posting Internet information.  Additional  
          unknown, potentially significant, General Fund costs relating to  
          the establishment of the Task Force.  Unknown possible long-term  
          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  
            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)May 15 Amendments Intended to Resolve Issues Raised in May 2  
            Hearing But Fall Short  

            The bill's most recent set of amendments remove the Internet  
            Portal Management Authority previously created by the bill.   








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            However, most of the previous authority's functions are merely  
            transferred over to DOIT, within which the authority  
            previously resided.  In place of the authority is a checklist  
            that state agencies are to compete and send to DOIT, along  
            with a formal proposal for posting.  Failure of a state agency  
            to complete the checklist and a posting proposal would be a  
            violation of state law.

            While the amendments also include legislative intent  
            statements indicating that the bill is not intended to create  
            a central authority to review state agency Internet content it  
            does not appear that the practical effect of the amendments  
            differs from the previous version of the bill.

           3)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 DOIT 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 DOIT  
            would have authority as broad as that envisioned by the bill.

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

            The bill is clearly 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 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.








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           5)Related Legislation  

                 AB 2163 (Cunneen), stalled at the Assembly Information  
               Technology Committee, would make various changes to DOIT  
               authorizing statute, including establishing one Internet  
               portal.

                 AB 2934 (Information Technology Committee), awaiting  
               hearing at the Assembly Appropriations Committee, is a  
               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), on the Senate floor, 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), stalled at the Senate Governmental  
               Organization Committee, would authorize DOIT to provide for  
               the implementation of a single Internet portal by January  
               1, 2006.  The bill also 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


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