Bill Text: CA AB475 | 2017-2018 | Regular Session | Amended


Bill Title: Department of Technology.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2017-07-13 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 15 pursuant to Assembly Rule 77. [AB475 Detail]

Download: California-2017-AB475-Amended.html

Amended  IN  Senate  June 07, 2017
Amended  IN  Assembly  April 18, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 475


Introduced by Assembly Member Chau

February 13, 2017


An act to amend Section 11545 Sections 11545 and 11546.2 of, and to repeal Section 11547.5 of, the Government Code, and to amend Section 6611 of the Public Contract Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


AB 475, as amended, Chau. Department of Technology.
Existing law establishes within the Government Operations Agency the Department of Technology, which is supervised by the Director of Technology. Existing law authorizes the Director of Technology and the Department of Technology to exercise various powers in creating and managing the information technology policy of the state, including, among others, reviewing and maintaining the information technology sections of the State Administrative Manual, except for those provisions relating to information technology procurement procedures and information technology fiscal policy.
This bill would require the director to also be responsible for periodically reviewing and maintaining procurement procedures related to information technology projects. The bill would also make technical changes in the provision relating to the duties of the director.
Existing law requires the director to produce an annual information technology performance report, and to submit that report to the Joint Legislative Budget Committee by January 15 of every year.
This bill would recast the requirements of that report by consolidating therein reports of cost savings and other avoidances that are currently included in another annual report, and would require the director to include any changes in the report when submitting it to the Joint Legislative Budget Committee.
Existing law requires the department to submit an information technology performance management framework to the Joint Legislative Budget Committee by May 15, 2009, and to notify the Legislature if the agency modifies that framework.
This bill instead would require the department to maintain an information technology performance management framework that includes specified information relating to the state’s information technology program. The bill would remove the requirement that the department submit the framework to the Joint Legislative Budget Committee and notify the committee of any changes to the framework.
Existing law requires the director to review a specified manual and draft a report, based on that manual and other specified factors, to be transmitted to certain legislative committees on or before July 1, 2016, that recommends how a team of senior consulting information technology experts could be developed to serve as support for state agencies and senior project team members in state government. Existing law also requires the director, after transmitting the report, to establish a unit, within the department, of consulting information technology experts to serve as support for state agencies.
This bill would repeal that reporting requirement as well as the requirement to establish a unit of consulting information technology experts.
Existing law requires each state agency and certain designated state entities, on or before February 1 of every year, to report to the department a summary of its actual and projected information technology and telecommunications costs, as specified. Existing law also requires each of these state agencies and entities, on or before January 1, 2018, and annually thereafter, to report to the department a summary of its actual and projected information security costs, as specified.
This bill would instead require that both of these summaries be submitted to the department on or before February 1 of every year.
Existing law authorizes the Department of Technology, until January 1, 2018, and where any of certain conditions exist to utilize a specified negotiation process for the purpose of procuring information technology and telecommunications goods and services on behalf of state departments and information technology projects.
This bill would remove the January 1, 2018, date restriction described above and thereby would continue indefinitely the authority of the Department of Technology to utilize that specified negotiation process.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 11545 of the Government Code is amended to read:

11545.
 (a) (1) There is in state government the Department of Technology within the Government Operations Agency. The Director of Technology shall be appointed by, and serve at the pleasure of, the Governor, subject to Senate confirmation. The Director of Technology shall supervise the Department of Technology and report directly to the Governor on issues relating to information technology.
(2) Unless the context clearly requires otherwise, whenever the term “office of the State Chief Information Officer” or “California Technology Agency” appears in any statute, regulation, or contract, or any other code, it shall be construed to refer to the Department of Technology, and whenever the term “State Chief Information Officer” or “Secretary of California Technology” appears in any statute, regulation, or contract, or any other code, it shall be construed to refer to the Director of Technology.
(3) The Director of Technology shall be the State Chief Information Officer.
(b) The duties of the Director of Technology shall include, but are not limited to, all of the following:
(1) Advising the Governor on the strategic management and direction of the state’s information technology resources.
(2) Establishing and enforcing state information technology strategic plans, policies, standards, and enterprise architecture. This shall include the periodic review and maintenance of the information technology sections of the State Administrative Manual and procurement procedures related to information technology projects, except for sections on information technology fiscal policy. The Director of Technology shall consult with the Director of General Services, the Director of Finance, and other relevant agencies concerning policies and standards these agencies are responsible to issue that relate to information technology.
(3) Minimizing overlap, redundancy, and cost in state information technology operations by promoting the efficient and effective use of information technology.
(4) Providing technology direction to agency and department chief information officers to ensure the integration of statewide technology initiatives, compliance with information technology policies and standards, and the promotion of the alignment and effective management of information technology services. This paragraph does not limit the authority of a constitutional officer, cabinet agency secretary, or department director to establish programmatic priorities and business direction to the respective agency or department chief information officer.
(5) Working to improve organizational maturity and capacity in the effective management of information technology.
(6) Establishing performance management and improvement processes to ensure state information technology systems and services are efficient and effective.
(7) Approving, suspending, terminating, and reinstating information technology projects.
(8) Performing enterprise information technology functions and services, including, but not limited to, implementing Geographic Information Systems (GIS), shared services, applications, and program and project management activities in partnership with the owning agency or department.
(c) The Director of Technology shall produce an annual information technology strategic plan that shall guide the acquisition, management, and use of information technology. State agencies shall cooperate with the department in the development of this plan, as required by the Director of Technology.
(1) Upon establishment of the information technology strategic plan, the Director of Technology shall take all appropriate and necessary steps to implement the plan, subject to any modifications and adjustments deemed necessary and reasonable.
(2) The information technology strategic plan shall be submitted to the Joint Legislative Budget Committee by January 15 of every year.
(d) The Director of Technology shall produce an annual information technology performance report that shall assess and measure the state’s progress toward enhancing its information technology program for human capital management; reducing and avoiding costs and risks associated with the acquisition, development, implementation, management, and operation of information technology assets, infrastructure, and systems; improving energy efficiency in the use of information technology assets; enhancing the security, reliability, and quality of information technology networks, services, and systems; and improving the information technology procurement process. This report shall also include cost savings and avoidances achieved through improvements to the way the state acquires, develops, implements, manages, and operates state technology assets, infrastructure, and systems. The department shall establish those policies and procedures required to improve the performance of the state’s information technology program.
(1) The department shall maintain an information technology performance management framework that includes the performance measures and targets that the department will utilize to assess the performance of, and measure the costs and risks avoided by, the state’s information technology program.
(2) State agencies shall take all necessary steps to achieve the targets set forth by the department and shall report their progress to the department on a quarterly basis.
(3) Notwithstanding Section 10231.5, the information technology performance report shall be submitted to the Joint Legislative Budget Committee, including any changes, by January 15 of every year. To enhance transparency, the department shall post performance targets and progress toward these targets on its public Internet Web site.
(e) If the Governor’s Reorganization Plan No. 2 of 2012 becomes effective, this section shall prevail over Section 186 of the Governor’s Reorganization Plan No. 2 of 2012, regardless of the dates on which this section and that plan take effect, and this section shall become operative on July 1, 2013.

SEC. 2.

 Section 11546.2 of the Government Code is amended to read:

11546.2.
 (a) On or before February 1 of every year, each state agency and state entity subject to Section 11546.1, shall submit, as instructed by the Department of Technology, a summary of its actual and projected information technology and telecommunications costs, including, but not limited to, personnel, for the immediately preceding fiscal year and current fiscal year, showing current expenses and projected expenses for the current fiscal year, in a format prescribed by the Department of Technology in order to capture statewide information technology expenditures.
(b) On or before January 1, 2018, and annually thereafter, February 1 of every year, each state agency and state entity subject to Section 11546.1 shall submit, as instructed and in a format prescribed by the Department of Technology, a summary of its actual and projected information security costs, including, but not limited to, personnel, for the immediately preceding fiscal year and current fiscal year, showing current expenses and projected expenses for the current fiscal year, in order to capture statewide information security expenditures, including the expenditure of federal grant funds for information security purposes.

SEC. 2. SEC. 3.

 Section 11547.5 of the Government Code is repealed.

SEC. 3. SEC. 4.

 Section 6611 of the Public Contract Code is amended to read:

6611.
 (a) Notwithstanding any other law, the Department of General Services may, relative to contracts for goods, services, information technology, and telecommunications, use a negotiation process if the department finds that one or more of the following conditions exist:
(1) The business need or purpose of a procurement or contract can be further defined as a result of a negotiation process.
(2) The business need or purpose of a procurement or contract is known by the department, but a negotiation process may identify different types of solutions to fulfill this business need or purpose.
(3) The complexity of the purpose or need suggests a bidder’s costs to prepare and develop a solicitation response are extremely high.
(4) The business need or purpose of a procurement or contract is known by the department, but negotiation is necessary to ensure that the department is receiving the best value or the most cost-efficient goods, services, information technology, and telecommunications.
(b) When it is in the best interests of the state, the department may negotiate amendments to the terms and conditions, including scope of work, of existing contracts for goods, services, information technology, and telecommunications, whether or not the original contract was the result of competition, on behalf of itself or another state agency.
(c) (1) The department shall establish the procedures and guidelines for the negotiation process described in subdivision (a), those procedures and guidelines shall include, but not be limited to, a clear description of the methodology that will be used by the department to evaluate a bid for the procurement of goods, services, information technology, and telecommunications.
(2) The procedures and guidelines described in paragraph (1) may include provisions that authorize the department to receive supplemental bids after the initial bids are opened. If the procedures and guidelines include these provisions, the procedures and guidelines shall specify the conditions under which supplemental bids may be received by the department.
(d) An unsuccessful bidder shall have no right to protest the results of the negotiating process undertaken pursuant to this section. As a remedy, an unsuccessful bidder may file a petition for a writ of mandate in accordance with Section 1085 of the Code of Civil Procedure. The venue for the petition for a writ of mandate shall be Sacramento, California. An action filed pursuant to this subdivision shall be given preference by the court.
(e) (1) The Department of Technology may utilize the negotiation process described in subdivisions (a) and (b) for the purpose of procuring information technology and telecommunications goods and services on behalf of state departments and information technology projects.
(2) Nothing in this section shall be interpreted to supersede the department’s existing statutory control over procurement processes as dictated in Section 12100.
(f) On or before January 1, 2013, and annually thereafter, the Department of Technology and the Department of General Services shall report to the relevant budget subcommittees of each house of the Legislature on the use of subdivision (e) during budget hearings.