California Assembly Bill AB1266 Amended / Bill

 BILL NUMBER: AB 1266AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 2, 2009 INTRODUCED BY Assembly Member Huber FEBRUARY 27, 2009  An act to amend Section 11545 of the Government Code, relating to the office of the State Chief Information Officer.   An act to amend Sections 8592.1, 8592.5, 8592.7, 11532, 11534, 11535, 11537, 11539, 11540, 11541, 11541.5, 11542, 11543, 11544, 11545, 11546.5, 11549, 11549.1, 11549.3, 11549.5,   12804, 14995, 15251, 15253, 15254, 15275, 15277, 53108.5, 53113, 53114, 53114.1, 53114.2, 53115, 53115.1, 53115.2, 53115.3, 53116, 53119, 53120, 53126.5, and 53127 of, to amend the headings of Article 2 (commencing with Section 11534) and Article 3 (commencing with Section 11544) of Chapter 5.5 of Part 1 of Division 3 of Title 2 of, to amend the heading of Chapter 5.7 (commencing with Section 11549) of Part 1 of Division 3 of Title 2 of, to amend and renumber Section 11549.6 of,   to add Sections 11549.7 and 11549.8 to, to add the headings of Article 1 (commencing with Section 11549) and Article 2 (commencing with Section 11549.5) to Chapter 5.7 of Part 1 of Division 3 of Title 2 of, and to repeal Section 11549.2 of, the Government Code, to amend Sections 12100.7, 12101, 12103, 12104, 12105, 12120, and 12121 of the Public Contract Code, to amend Sections 41030, 41031, 41032, 41136, 41136.1, 41137, 41137.1, 41138, 41139, 41140, 41141, and 41142 of the Revenue and Taxation Code, and to amend Section 16501.7 of the Welfare and Institutions Code, relating to state government information technology.  LEGISLATIVE COUNSEL'S DIGEST AB 1266, as amended, Huber.  Office of the State Chief Information Officer.   State government information technology.   (1) Existing law creates the office of the State Chief Information Officer, within the Governor's cabinet, with a State Chief Information Officer having specified duties in creating and managing the technology policy of the state. Existing law also creates the Division of Telecommunications within the Department of General Services, and requires the Telecommunications Division to perform numerous duties with regard to public safety, and emergency and nonemergency communications policies and facilities.   This bill would transfer all the duties, functions, employees, property, and related funding of the Division of Telecommunications to the office of the State Chief Information Officer.   (2) Existing law establishes the Department of Technology Services within the State and Consumer Services Agency, specifies the duties of the department's director, and establishes the Department of Technology Services Revolving Fund within the State Treasury.   This bill would rename and transfer the Department of Technology Services to the Office of Technology Services within the office of the State Chief Information Officer, rename the Department of Technology Services Revolving Fund the Technology Services Revolving Fund, and make conforming changes.   (3) Existing law establishes the Office of Information Security and Privacy Protection in the State and Consumer Services Agency and the Office of Privacy Protection within the Office of Information Security and Privacy Protection with duties to ensure the confidentiality, integrity, and availability of state systems and applications, and to promote and protect consumer privacy.   This bill would eliminate the Office of Information Security and Privacy Protection, and instead create the Office of Information Security within the office of the State Chief Information Officer, and the Office of Privacy Protection within the State and Consumer Services Agency, with a division of the duties, personnel, property, and funding of the Office of Information Security and Privacy Protection between the 2 offices.   (4) Existing law authorizes the Department of Finance, the Department of General Services, and the Department of Information Technology to create certain policies for the state's procurement of information technology.   This bill would transfer certain of those duties to the office of the State Chief Information Officer.   Existing law creates the office of the State Chief Information Officer in state government, which is responsible for the approval and oversight of certain information technology projects.   This bill would make technical, nonsubstantive changes to these provisions.  Vote: majority. Appropriation: no. Fiscal committee:  no   yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Section 8592.1 of the   Government Code   is amended to   read:  8592.1. For purposes of this article, the following terms have the following meanings: (a) "Backward compatibility" means that the equipment is able to function with older, existing equipment. (b) "Committee" means the Public Safety Radio Strategic Planning Committee,  which   that  was established in December 1994 in recognition of the need to improve existing public radio systems and to develop interoperability among public safety departments and between state public safety departments and local or federal entities, and  which   that  consists of representatives of the following state entities: (1) The  Office of Emergency Services   California Emergency Management Agency  , who shall serve as chairperson. (2) The Department of the California Highway Patrol. (3) The Department of Transportation. (4) The Department of Corrections and Rehabilitation. (5) The Department of Parks and Recreation. (6) The Department of Fish and Game. (7) The Department of Forestry and Fire Protection. (8) The Department of Justice. (9) The Department of Water Resources. (10) The State Department of Public Health. (11) The Emergency Medical Services Authority. (12) The  Department of General Services   office of the State Chief Information Officer  .  (13) The Office of Homeland Security.   (14)   (13)  The Military Department.  (15)   (14)  The Department of Finance. (c) "First response agencies" means public agencies that, in the early states of an incident, are responsible for, among other things, the protection and preservation of life, property, evidence, and the environment, including, but not limited to, state fire agencies, state and local emergency medical services agencies, local sheriffs' departments, municipal police departments, county and city fire departments, and police and fire protection districts. (d) "Nonproprietary equipment or systems" means equipment or systems that are able to function with another manufacturer's equipment or system regardless of type or design. (e) "Open architecture" means a system that can accommodate equipment from various vendors because it is not a proprietary system. (f) "Public safety radio subscriber" means the ultimate end user. Subscribers include individuals or organizations, including, for example, local police departments, fire departments, and other operators of a public safety radio system. Typical subscriber equipment includes end instruments, including mobile radios, hand-held radios, mobile repeaters, fixed repeaters, transmitters, or receivers that are interconnected to utilize assigned public safety communications frequencies. (g) "Public safety spectrum" means the spectrum allocated by the Federal Communications Commission for operation of interoperable and general use radio communication systems for public safety purposes within the state.  SEC. 2.   Section 8592.5 of the   Government Code  is amended to read:  8592.5. (a) Except as provided in subdivision (c), a state department that purchases public safety radio communication equipment shall ensure that the equipment purchased complies with applicable provisions of the following: (1) The common system standards for digital public safety radio communications commonly referred to as the "Project 25 Standard," as that standard may be amended, revised, or added to in the future jointly by the Associated Public-Safety Communications Officials, Inc., National Association of State Telecommunications Directors and agencies of the federal government, commonly referred to as "APCO/NASTD/FED." (2) The operational and functional requirements delineated in the Statement of Requirements for Public Safety Wireless Communications and Interoperability developed by the SAFECOM Program under the United States Department of Homeland Security. (b) Except as provided in subdivision (c), a local first response agency that purchases public safety radio communication equipment, in whole or in part, with state funds or federal funds administered by the state, shall ensure that the equipment purchased complies with paragraphs (1) and (2) of subdivision (a). (c) Subdivision (a) or (b) shall not apply to either of the following: (1) Purchases of equipment to operate with existing state or local communications systems where the latest applicable standard will not be compatible, as verified by the  Telecommunications Division of the Department of General Services   office of the State Chief Information Officer  . (2) Purchases of equipment for existing statewide low-band public safety communications systems. (d) This section may not be construed to require an affected state or local governmental agency to compromise its immediate mission or ability to function and carry out its existing responsibilities.  SEC. 3.   Sect   ion 8592.7 of the   Government Code   is amended to read:  8592.7. (a) A budget proposal submitted by a state agency for support of a new or modified radio system shall be accompanied by a technical project plan that includes all of the following: (1) The scope of the project. (2) Alternatives considered. (3) Justification for the proposed solution. (4) A project implementation plan. (5) A proposed timeline. (6) Estimated costs by fiscal year. (b) The committee shall review the plans submitted pursuant to subdivision (a) for consistency with the statewide integrated public safety communication strategic plan included in the annual report required pursuant to Section 8592.6. (c) The  Telecommunications Division of the Department of General Services   office of the State Chief Information Officer  shall review the plans submitted pursuant to subdivision (a) for consistency with the technical requirements of the statewide integrated public safety communication strategic plan included in the annual report required pursuant to Section 8592.6.  SEC. 4.   Section 11532 of the   Government Code   is amended to read:  11532. For purposes of this chapter, the following terms shall have the following meanings, unless the context requires otherwise: (a) "Board member" means a member of the Technology Services Board.  (b) "Department" means the Department of Technology Services established by this chapter.   (c)   (b)  "Board" means the Technology Services Board created pursuant to Section 11535.  (d)   (c)  "Director" means the Director of  the Office of  Technology Services.  (e)   (d)  "Technology" includes, but is not limited to, all electronic technology systems and services, automated information handling, system design and analysis, conversion of data, computer programming, information storage and retrieval, and business telecommunications systems and services.  (f)   (e)  "Business telecommunications systems and services" includes, but is not limited to, wireless or wired systems for transport of voice, video, and data communications, network systems, requisite facilities, equipment, system controls, simulation, electronic commerce, and all related interactions between people and machines. Public safety communications are excluded from this definition.  (g)   (f)  "Public agencies" include, but are not limited to, all state and local governmental agencies in the state, including cities, counties, other political subdivisions of the state, state departments, agencies, boards, and commissions, and departments, agencies, boards, and commissions of other states and federal agencies.  SEC. 5.   The heading of Article 2 (commencing with Section 11534) of Chapter 5.5 of Part 1 of Division 3 of Title 2 of the   Government Code   is amended to read:  Article 2.  Department   Office of Technology Services  SEC. 6.   Section 11534 of the   Government Code   is amended to read:  11534. (a) There is in state government, in the  State and Consumer Services Agency   office of the State Chief Information Officer  , the  Department   Office  of Technology Services. (b) The purpose of this article is to establish a general purpose technology services provider to serve the common technology needs of executive branch entities with accountability to customers for providing secure services that are responsive to client needs at a cost representing best value to the state. (c) The purpose of this chapter is to improve and coordinate the use of technology and to coordinate and cooperate with all public agencies in the state in order to eliminate duplications and to bring about economies that could not otherwise be obtained.  (d) Unless the context clearly requires otherwise, whenever the term "Department of Technology Services" appears in any statute, regulation, or contract, it shall be deemed to refer to the Office of Technology Services, and whenever the term "Director of Technology Services" appears in statute, regulation, or contract, it shall be deemed to refer to the State Chief Information Officer.   (e) Unless the context clearly requires otherwise, the Office of Technology Services and the State Chief Information Officer succeed to and are vested with all the duties, powers, purposes, responsibilities, and jurisdiction vested in the former Department of Technology Services and the former Director of Technology Services, respectively.   (f) All employees serving in state civil service, other than temporary employees, who are engaged in the performance of functions transferred to the Office of Technology Services, are transferred to the Office of Technology Services. The status, positions, and rights of those persons shall not be affected by their transfer and shall continue to be retained by them pursuant to the State Civil Service Act (Part 2 (commencing with Section 18500) of Division 5), except as to positions the duties of which are vested in a position exempt from civil service. The personnel records of all transferred employees shall be transferred to the Office of Technology Services.   (g) The property of any office, agency, or department related to functions transferred to the Office of Technology Services is transferred to the Office of Technology Services. If any doubt arises as to where that property is transferred, the Department of General Services shall determine where the property is transferred.   (h) All unexpended balances of appropriations and other funds available for use in connection with any function or the administration of any law transferred to the Office of Technology Services shall be transferred to the Office of Technology Services for the use and for the purpose for which the appropriation was originally made or the funds were originally available. If there is any doubt as to where those balances and funds are transferred, the Department of Finance shall determine where the balances and funds are transferred.   SEC. 7.   Section 11535 of the   Government Code   is amended to read:  11535. (a) There is, in the  department   Office of Technology Services  , the Technology Services Board. (b) The board shall consist of 13 members, as follows: (1) The  Governor's designee, who   State Chief Information Officer,   who  shall serve as the chair of the board. (2) The Director of Finance, who shall serve as vice chair of the board. (3) The Controller. (4) The  Secretaries   Secretary  of Food and Agriculture, the  Secretary of  Business, Transportation and Housing  Agency  ,  the Secretary of Corrections and Rehabilitation,  the  Secretary for  Environmental Protection  Agency  , the  Secretary of  California Health and Human Services  Agency  , the  Secretary of  Labor and Workforce Development  Agency  , the  Secretary of Natural  Resources  Agency  , the  Secretary of  State and Consumer Services  Agency  ,  and  the  Department   Secretary  of Veterans Affairs  , and the Youth and Adult Correctional Agency  . (5) The  Director   Secretary  of  the Office of   California  Emergency  Services   Management  .  SEC. 8.   Section 11537 of the   Government Code   is amended to read:  11537. (a) The  board   State Chief Information Officer  shall engage an independent firm of certified public accountants to conduct an annual financial audit of all accounts and transactions of the  department   Office of Technology Services  . The audit shall be conducted in accordance with generally accepted government auditing standards. The audited financial statements shall be presented to the board, the Governor, and the Legislature not more than 120 days after the close of the fiscal year. (b) The  board  State Chief Information Officer  may arrange for other audits as are necessary or prudent to ensure proper oversight and management of the  department   Office of Technology Services  .  SEC. 9.   Section 11539 of the  Government Code   is amended to r   ead:  11539. The director shall be responsible for managing the affairs of the  department   Office of Technology Services  and shall perform all duties, exercise all powers and jurisdiction, and assume and discharge all responsibilities necessary to carry out the purposes of this chapter. The  director   Office of Technology Services  shall employ professional, clerical, technical, and administrative personnel as necessary to carry out this chapter.  SEC. 10.   Section 11540 of the   Government Code   is amended to read:  11540. (a) The director shall propose for board consideration and approval an annual budget for  departmental   the Office of Technology Services'  operations.  As part of the annual budget development, the department shall determine the impact of any rebates, abatements, or rate reductions resulting from excess reserve funds. At least 60 days before submitting the proposed budget to the board, the director shall submit the proposed budget to the Department of Finance. Submittal of the budget to the Department of Finance shall be in a format and timeframe determined by the Department of Finance. The Department of Finance shall prepare a report to the board evaluating the reasonableness of the proposed budget and any significant impact the department's budget is likely to have upon the budgets of other departments.  (b) The  director   State Chief Information Officer  shall propose for board consideration rates for  department   Office of Technology Services'  services based on a formal rate methodology approved by the board. At least 60 days before submitting proposed rates to the board, the director   State Chief Information Officer  shall submit the proposed rates to the Department of Finance. Submittal of the rates to the Department of Finance shall be in a format and timeframe determined by the Department of Finance. The Department of Finance shall prepare a report  to   for  the board evaluating the reasonableness of the proposed rates and any significant impact the  department' s   Office of Technology Services'  rates are likely to have upon the budgets of other departments. (c) It is the intent of the Legislature that this section supersede Section 11540 of the Government Code, as added by Section 1 of the Governor's Reorganization Plan No. 2, effective July 9, 2005.  SEC. 11.   Section 11541 of the   Government Code   is amended to read:  11541. (a) The  department   Office of Technology Services  may acquire, install, equip, maintain, and operate new or existing business telecommunications systems and services. Acquisitions for information technology goods and services shall be made pursuant to Chapter 3 (commencing with Section 12100) of Part 2 of Division 2 of the Public Contract Code. To accomplish that purpose,  it   the Office of Technology Services  may enter into contracts, obtain licenses, acquire  personal  property, install necessary equipment and facilities, and do other acts that will provide adequate and efficient business telecommunications systems and services. Any system established shall be made available to all public agencies in the state on terms that may be agreed upon by the agency and the  department   Office of Technology Services  . (b) With respect to business telecommunications systems and services, the  department   Office of Technology Services  may do all of the following: (1) Provide representation of public agencies before the Federal Communications Commission in matters affecting the state and other public agencies regarding business telecommunications systems and services issues. (2) Provide, upon request, advice to public agencies concerning existing or proposed business telecommunications systems and services between any and all public agencies. (3) Recommend to public agencies rules, regulations, procedures, and methods of operation that it deems necessary to effectuate the most efficient and economical use of business telecommunications systems and services within the state. (4) Carry out the policies of this chapter. (c) The  department   Office of Technology Services has responsibilities with respect to business telecommunications systems, services, policy, and planning, which include, but are not limited to, all of the following: (1) Assessing the overall long-range business telecommunications needs and requirements of the state considering both routine and emergency operations for business telecommunications systems and services, performance, cost, state-of-the-art technology, multiuser availability, security, reliability, and other factors deemed to be important to state needs and requirements. (2) Developing strategic and tactical policies and plans for business telecommunications with consideration for the systems and requirements of public agencies. (3) Recommending industry standards, service level agreements, and solutions regarding business telecommunications systems and services to assure multiuser availability and compatibility. (4) Providing advice and assistance in the selection of business telecommunications equipment to ensure all of the following: (A) Ensuring that the business telecommunications needs of state agencies are met. (B) Ensuring that procurement is compatible throughout state agencies and is consistent with the state's strategic and tactical plans for telecommunications. (C) Ensuring that procurement is designed to leverage the buying power of the state and encourage economies of scale. (5) Providing management oversight of statewide business telecommunications systems and services developments. (6) Providing for coordination of, and comment on, plans and policies and operational requirements from departments that utilize business telecommunications systems and services as determined by the  department   Office of Technology Services  . (7) Monitoring and participating, on behalf of the state, in the proceedings of federal and state regulatory agencies and in congressional and state legislative deliberations that have an impact on state governmental business telecommunications activities. (d) The  department   Office of Technology Services  shall develop and describe statewide policy on the use of business telecommunications systems and services by state agencies. In the development of that policy, the  department   Office of Technology Services  shall  assure   ensure  that access to state business information and services is improved, and that the policy is cost effective for the state and its residents. The  department   Office of Technology   Services  shall develop guidelines that do all of the following: (1) Describe what types of state business information and services may be accessed using business telecommunications systems and services. (2) Characterize the conditions under which a state agency may utilize business telecommunications systems and services. (3) Characterize the conditions under which a state agency may charge for information and services. (4) Specify pricing policies. (5) Provide other guidance as may be appropriate at the discretion of the  department   Office of Technology Services  . (e) It is the intent of the Legislature that this section supersede Section 11541 of the Government Code, as added by Section 1 of the Governor's Reorganization Plan No. 2, effective July 9, 2005.  SEC. 12.   Section 11541.5 of the   Government Code   is amended to read:  11541.5. (a) The  Department   Office  of Technology Services shall create a link to state agency Web sites at the State of California Internet portal specifically for the use of small businesses, designed to assist entrepreneurs and small business owners in accessing information regarding startup requirements and regulatory compliance applicable to the particular business. (b) For purposes of this section, "small business" has the same meaning as set forth in Section 14837.  SEC. 13.   Section 11542 of the   Government Code   is amended to read:  11542. (a)  (1)    The Stephen P. Teale Data Center and the California Health and Human Services Agency Data Center are consolidated within, and their functions are transferred to, the  department   Office of Technology Services  .  (b) The business telecommunications systems and services functions of the Telecommunications Division of the Department of General Services are transferred to the department.   (c)   (2)  Except as expressly provided otherwise in this chapter, the  department   Office of Technology Services  is the successor to, and is vested with, all of the duties, powers, purposes, responsibilities, and jurisdiction of the Stephen P. Teale Data Center,  and  the California Health and Human Services Agency Data Center  , and the business telecommunications systems and services functions of the Telecommunications Division of the Department of General Services  . Any reference in statutes, regulations, or contracts to those entities with respect to the transferred functions shall be construed to refer to the  Department   Office  of Technology Services unless the context clearly requires otherwise.  (d)   (3)  No contract, lease, license, or any other agreement to which  either  the Stephen P. Teale Data Center  ,   or  the California Health and Human Services Agency Data Center,  or the Telecommunications Division of the Department of General Services  ,  with respect to the business telecommunications systems and services functions,  is a party, shall be void or voidable by reason of this chapter, but shall continue in full force and effect, with the  department   Office of Technology Services  assuming all of the rights, obligations, and duties of the Stephen P. Teale Data Center  ,   or  the California Health and Human Services Agency Data Center  , or the Telecommunications Division of the Department of General Services  , respectively.  (e)   (4)  Notwithstanding subdivision (e) of Section 11793 and subdivision (e) of Section 11797, on and after the effective date of this chapter, the balance of any funds available for expenditure by the Stephen P. Teale Data Center ,   and  the California Health and Human Services Agency Data Center  , and the Telecommunications Division of the Department of General Services  , with respect to business telecommunications systems and services functions in carrying out any functions transferred to the  department   Office of Technology Services  by this chapter, shall be transferred to the  Department of  Technology Services Revolving Fund created by Section 11544, and shall be made available for the support and maintenance of the  department   Office of Technology Services  .  (f)   (5)  All references in statutes, regulations, or contracts to the former Stephen P. Teale Data Center Fund or the California Health and Human Services Data Center Revolving Fund shall be construed to refer to the  Department of  Technology Services Revolving Fund unless the context clearly requires otherwise.  (g)   (6)  All books, documents, records, and property of the Stephen P. Teale Data Center  ,   and  the California Health and Human Services Agency Data Center, excluding the Systems Integration Division,  and the Telecommunications Division of the Department of General Services, with respect to business telecommunications systems and services functions,  shall be transferred to the  department   Office of Technology Services  .  (h) (1)   (7)     (A)    All officers and employees of the former Stephen P. Teale Data Center  ,   and  the California Health and Human Services Agency Data Center,  and the Telecommunications Division of the Department of General Services, with respect to business telecommunications systems and services functions,  are transferred to the  department   Office of Technology Services  .  (2)   (B)  The status, position, and rights of any officer or employee of the Stephen P. Teale Data Center  ,   and  the California Health and Human Services Agency Data Center,  and the Telecommunications Division of the Department of General Services, with respect to business telecommunications systems and services functions,  shall not be affected by the transfer and consolidation of  their   the  functions  of that officer or employee  to the  department   Office of Technology Services  .  (b) (1) All duties and functions of the Telecommunications Division of the Department of General Services are transferred to the office of the State Chief Information Officer.   (2) Unless the context clearly requires otherwise, whenever the term "Telecommunications Division of the Department of General Services" appears in any statute, regulation, or contract, it shall be deemed to refer to the office of the State Chief Information Officer.   (3) All employees serving in state civil service, other than temporary employees, who are engaged in the performance of functions transferred to the office of the State Chief Information Officer, are transferred to the office of the State Chief Information Officer. The status, positions, and rights of those persons shall not be affected by their transfer and shall continue to be retained by them pursuant to the State Civil Service Act (Part 2 (commencing with Section 18500) of Division 5), except as to positions the duties of which are vested in a position exempt from civil service. The personnel records of all transferred employees shall be transferred to the office of the State Chief Information Officer.   (4) The property of any office, agency, or department related to functions transferred to the office of the State Chief Information Officer is transferred to the office of the State Chief Information Officer. If any doubt arises as to where that property is transferred, the Department of General Services shall determine where the property is transferred.   (5) All unexpended balances of appropriations and other funds available for use in connection with any function or the administration of any law transferred to the office of the State Chief Information Officer shall be transferred to the office of the State Chief Information Officer for the use and for the purpose for which the appropriation was originally made or the funds were originally available. If there is any doubt as to where those balances and funds are transferred, the Department of Finance shall determine where the balances and funds are transferred.   SEC. 14.   Section 11543 of the   Government Code   is amended to read:  11543. (a) The  director   State Chief Information Officer  shall confer as frequently as necessary or desirable, but not less than once every quarter, with the board, on the operation and administration of the  department   Office of Technology Services . The  director   State Chief Information Officer  shall make available for inspection by the board or any board member, upon request, all books, records, files, and other information and documents of the  department   Office of Technology Services  and recommend any matters as he or she deems necessary and advisable to improve the operation and administration of the  department   Office of Technology Services  . (b) The  director   State Chief Information Officer  shall make and keep books and records to permit preparation of financial statements in conformity with generally accepted accounting principles and any state policy requirements.  SEC. 15.   The heading of Article 3 (commencing with Section 11544) of Chapter 5.5 of Part 1 of Division 3 of Title 2 of the   Government Code   is amended to read:  Article 3.  Department of  Technology Services Revolving Fund  SEC. 16.  Section 11544 of the   Government Code   , as   added by Section 1 of Chapter 533 of the Statutes of 2006, is amended to read:  11544. (a) The  Department of  Technology Services Revolving Fund, hereafter known as the fund, is hereby created within the State Treasury. The fund shall be administered by the  director   State Chief Information Officer  , pursuant to the  department's   Office of Technology Services'  plan of operations,  a plan of service offering as approved by the Technology Services Board,  to receive all revenues from the sale of technology or technology services provided for in this chapter and all other moneys properly credited to the board and  department   the Office of Technology Services  from any other source, to pay, upon appropriation by the Legislature, all costs arising from this chapter, including, but not limited to, operating and other expenses of the board and  department   the Office of Technology Services  and costs associated with approved information technology projects, and to establish reserves. At the discretion of the  director   State Chief Information Officer  , segregated, dedicated accounts within the fund may be established. (b) The fund shall consist of all of the following: (1) Moneys appropriated and made available by the Legislature for the purpose of this chapter. (2) Any other moneys that may be made available to the  department   Office of Technology Services  for the purpose of this chapter from any other source, including the return from investments of moneys by the Treasurer. (c) The  department   Office of Technology Services  may collect payments from public agencies for providing services to those agencies that the agencies have contracted with the  department   Office of Technology Services  to provide. The  department   Office of Technology Services  may require monthly payments by client agencies for the services the agencies have contracted the  department   Office of Technology Services  to provide. Pursuant to Section 11255, the Controller shall transfer any amounts so authorized by the  department   Office of Technology Services  , consistent with the annual budget of each department, to the fund. The  department   Office of Technolo   gy Services  shall notify each affected state agency upon requesting the Controller to make the transfer. (d) If the balance remaining in the fund at the end of any fiscal year exceeds 25 percent of the  department's   Office of Technology Services'  current fiscal year budget, the excess amount shall be used to reduce the billing rates for services rendered during the following fiscal year. (e) It is the intent of the Legislature that this section supersede Section 11544 of the Government Code, as added by Section 1 of the Governor's Reorganization Plan No. 2, effective July 9, 2005.  SEC. 17.   Section 11545 of the   Government Code   is amended to read:  11545. (a) There is in state government the office of the State Chief Information Officer. The State Chief Information Officer shall be appointed by, and serve at the pleasure of, the Governor, subject to Senate confirmation. The State Chief Information Officer shall be a member of the Governor's cabinet. (b) The duties of the State Chief Information Officer 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,  polices   policies  , standards, and enterprise architecture. This shall include the periodic review and maintenance of the information technology sections of the State Administrative Manual, except for sections on information technology procurement  procedures  ,  information security  and information technology fiscal policy. The State Chief Information Officer shall consult with the Director of General Services,  the Director of the Office of Information Security and Privacy Protection,  the Director of Finance, and other relevant agencies concerning policies and standards these agencies are responsible to issue as they relate to information technology. (3) Minimizing overlap, redundancy, and cost in state operations by promoting the efficient and effective use of information technology.  (4) Coordinating the activities of agency and department chief information officers and the Director of Technology Services for purposes of integrating statewide technology initiatives, ensuring compliance with information technology policies and standards, including policies and standards issued by the Department of General Services and the Office of Information Security and Privacy Protection, and promoting alignment and effective management of information technology resources.   (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 promote the alignment and effective management of information technology services. Nothing in this paragraph shall be deemed to 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 office of the State Chief Information Officer 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 office in the development of this plan, as required by the State Chief Information Officer. (1) Upon establishment of the information technology strategic plan, the State Chief Information Officer 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, 2009, and annually thereafter.  SEC. 18.   Section 11546.5 of the   Government Code   is amended to read:   11546.5. (a) Employees of the Office of Technology Review, Oversight, and Security within the Department of Finance shall be transferred to the office of the State Chief Information Officer, the Office of Information Security and Privacy Protection, or the Finance Information Technology Consulting Unit within the Department of Finance. (b) Notwithstanding Section 19050.9, the Director of Finance shall have final approval over which persons serving in the Department of Finance Office of Technology Review, Oversight, and Security as of the effective date of this chapter are transferred to the office of the State Chief Information Officer, the Office of Information Security and Privacy Protection, and the Finance Information Technology Consulting Unit. The status, position, and rights of those persons transferring and those persons remaining within the Department of Finance shall be retained by them pursuant to Section 19050.9 and the State Civil Service Act (Part 2 (commencing with Section 18500) of Division 5). (c) All relevant records and papers held for the benefit and use of the former Department of Information Technology in the performance of its statutory duties, powers, purposes, and responsibilities, and of the Office of Technology Review, Oversight, and Security within the Department of Finance in the performance of its statutory duties, powers, purposes, and responsibilities, except for records and papers with respect to information security, shall be transferred to the office of the State Chief Information Officer. (d)   11546.5.  Notwithstanding any other provision of law, all employees of the office of the State Chief Information Officer shall be designated as excluded from collective bargaining pursuant to subdivision (b) of Section 3527  , except for employees of the Office of Technology Services and the employees of the Telecommunications Division of the Department of General Services transferred to the office of the State Chief Information Officer  .  (e) Notwithstanding any other provision of law, the Director of Finance may enter into contractual agreements on behalf of the office of the State Chief Information Officer until the State Chief Information Officer is appointed by the Governor, but not later than June 30, 2008, whichever occurs first.   SEC. 19.   The heading of Chapter 5.7 (commencing with Section 11549) of Part 1 of Division 3 of Title 2 of the   Government Code   is amended to read:  CHAPTER 5.7. OFFICE OF INFORMATION SECURITY AND  OFFICE OF  PRIVACY PROTECTION  SEC. 20.   The heading of Article 1 (commencing with Section 11549) is added to Chapter 5.7 of Part 1 of Division 3 of Title 2 of the   Government Code   , to read:   Article 1. Office of Information Security   SEC. 21.   Section 11549 of the   Government Code   is amended to read:  11549. (a) There is in state government, in the  State and Consumer Services Agency   office of the State Chief Information Officer  , the Office of Information Security  and Privacy Protection  . The purpose of the  office   Office of Information Security  is to ensure the confidentiality, integrity, and availability of state systems and applications, and to promote and protect  consumer  privacy  as part of the development and operations of state systems and applications  to ensure the trust of the residents of this state. (b) The office shall be under the direction of  an executive officer   a director  , who shall be appointed by, and serve at the pleasure of, the Governor. The  executive officer   director  shall report to the  Secretary of State and Consumer Services   State Chief Information Officer  , and shall lead the  office   Office of Information Security  in carrying out its mission. (c) The duties of the  office   Office of Information Security  , under the direction of the  executive officer   director  , shall  include, but are not limited to, all of the following:   be to provide direction for information security and privacy to state government agencies, departments, and offices, pursuant to Section 11549.3.   (1) Provide direction for information security and privacy to state government agencies, departments, and offices, pursuant to Section 11549.3.   (2) Administer constituent programs and the Office of Privacy Protection pursuant to Section 11549.5.   (d) (1) Unless the context clearly requires otherwise, whenever the term "Office of Information Security and Privacy Protection" appears in any statute, regulation, or contract, it shall be deemed to refer to the Office of Information Security, and whenever the term "executive director of the Office of Information Security and Privacy Protection" appears in statute, regulation, or contract, it shall be deemed to refer to the Director of the Office of Information Security.   (2) All employees serving in state civil service, other than temporary employees, who are engaged in the performance of functions transferred from the Office of Information Security and Privacy Protection to the Office of Information Security, are transferred to the Office of Information Security. The status, positions, and rights of those persons shall not be affected by their transfer and shall continue to be retained by them pursuant to the State Civil Service Act (Part 2 (commencing with Section 18500) of Division 5), except as to positions the duties of which are vested in a position exempt from civil service. The personnel records of all transferred employees shall be transferred to the Office of Information Security.   (3) The property of any office, agency, or department related to functions transferred to the Office of Information Security is transferred to the Office of Information Security. If any doubt arises as to where that property is transferred, the Department of General Services shall determine where the property is transferred.   (4) All unexpended balances of appropriations and other funds available for use in connection with any function or the administration of any law transferred to the Office of Information Security shall be transferred to the Office of Information Security for the use and for the purpose for which the appropriation was originally made or the funds were originally available. If there is any doubt as to where those balances and funds are transferred, the Department of Finance shall determine where the balances and funds are transferred.   SEC. 22.   Section 11549.1 of the   Government Code   is amended to read:  11549.1. As used in this  chapter   article  , the following terms have the following meanings: (a)  "Executive officer"   "Director"  means the  executive officer   Director  of the Office of Information Security  and Privacy Protection  . (b) "Office" means the Office of Information Security  and Privacy Protection  . (c) "Program" means an information security program established pursuant to Section 11549.3.  SEC. 23.   Section 11549.2 of the   Government Code   is repealed.  11549.2. (a) Employees assigned to the security unit of the Office of Technology Review, Oversight, and Security within the Department of Finance, and the employees of the Office of Privacy Protection within the Department of Consumer Affairs are transferred to the office, within the State and Consumer Services Agency. (b) The status, position, and rights of an employee transferred pursuant to this section shall not be affected by the transfer.   SEC. 24.   Section 11549.3 of the   Government Code   is amended to read:  11549.3. (a) The  executive officer   director  shall establish an information security program. The program responsibilities include, but are not limited to, all of the following: (1) The creation, updating, and publishing of information security and privacy policies, standards, and procedures for state agencies in the State Administrative Manual. (2) The creation, issuance, and maintenance of policies, standards, and procedures directing state agencies to effectively manage security and risk for all of the following: (A) Information technology, which includes, but is not limited to, all electronic technology systems and services, automated information handling, system design and analysis, conversion of data, computer programming, information storage and retrieval, telecommunications, requisite system controls, simulation, electronic commerce, and all related interactions between people and machines. (B) Information that is identified as mission critical, confidential, sensitive, or personal, as defined and published by the office. (3) The creation, issuance, and maintenance of policies, standards, and procedures directing state agencies for the collection, tracking, and reporting of information regarding security and privacy incidents. (4) The creation, issuance, and maintenance of policies, standards, and procedures directing state agencies in the development, maintenance, testing, and filing of each agency's  operational   disaster  recovery plan. (5) Coordination of the activities of agency information security officers, for purposes of integrating statewide security initiatives and ensuring compliance with information security and privacy policies and standards. (6) Promotion and enhancement of the state agencies' risk management and privacy programs through education, awareness, collaboration, and consultation. (7) Representing the state before the federal government, other state agencies, local government entities, and private industry on issues that have statewide impact on information security and privacy. (b) (1) Every state agency, department, and office shall comply with the information security and privacy policies, standards, and procedures issued pursuant to this chapter by the Office of Information Security  and Privacy Protection  . (2) Every state agency, department, and office shall comply with filing requirements and incident notification by providing timely information and reports as required by policy or directives of the office. (3) The office may conduct, or require to be conducted, independent security assessments of any state agency, department, or office, the cost of which shall be funded by the state agency, department, or office being assessed. (4) The office may require an audit of information security to ensure program compliance, the cost of which shall be funded by the state agency, department, or office being audited. (5) The office shall report to the office of the State Chief Information Officer any state agency found to be noncompliant with information security program requirements.  SEC. 25.   The heading of Article 2 (commencing with Section 11549.5) is added to Chapter 5.7 of Part   1 of Division 3 of Title 2 of the   Government Code   , to read:   Article 2. Office of Privacy Protection   SEC. 26.   Section 11549.5 of the   Government Code   is amended to read:  11549.5. (a) There is hereby created  ,  in the  office,   State and Consumer Services Agency,  the Office of Privacy Protection. The purpose of the Office of Privacy Protection shall be to protect the privacy of individuals' personal information in a manner consistent with the California Constitution by identifying consumer problems in the privacy area and facilitating the development of fair information practices in adherence with the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code)  and to promote and protect consumer privacy to ensure the trust of the residents of this state  . (b) The Office of Privacy Protection shall inform the public of potential options for protecting the privacy of, and avoiding the misuse of, personal information. (c) The Office of Privacy Protection shall make recommendations to organizations for privacy policies and practices that promote and protect the interests of the consumers of this state. (d) The Office of Privacy Protection may promote voluntary and mutually agreed upon nonbinding arbitration and mediation of privacy-related disputes where appropriate. (e) The Office of Privacy Protection shall do all of the following: (1) Receive complaints from individuals concerning a person obtaining, compiling, maintaining, using, disclosing, or disposing of personal information in a manner that may be potentially unlawful or violate a stated privacy policy relating to that individual, and provide advice, information, and referral, where available. (2) Provide information to consumers on effective ways of handling complaints that involve violations of privacy-related laws, including identity theft and identity fraud. If appropriate local, state, or federal agencies are available to assist consumers with those complaints, the office shall refer those complaints to those agencies. (3) Develop information and educational programs and materials to foster public understanding and recognition of the purposes of this article. (4) Investigate and assist in the prosecution of identity theft and other privacy-related crimes, and, as necessary, coordinate with local, state, and federal law enforcement agencies in the investigation of similar crimes. (5) Assist and coordinate in the training of local, state, and federal law enforcement agencies regarding identity theft and other privacy-related crimes, as appropriate. (6) The authority of the Office of Privacy Protection to adopt regulations under this article shall be limited exclusively to those regulations necessary and appropriate to implement subdivisions (b), (c), (d), and (e).  SEC. 27.   Section 11549.6 of the   Government Code   is amended and renumbered to read:   11549.6.   11549.10.  This chapter shall not apply to the State Compensation Insurance Fund, the Legislature, or the Legislative Data Center in the Legislative Counsel Bureau.  SEC. 28.   Section 11549.7 is a   dded to the   Government Code   , to read:   11549.7. The Office of Privacy Protection shall be under the direction of a director who shall report to the Secretary of State and Consumer Services and lead the Office of Privacy Protection in carrying out its mission.   SEC. 29.   Section 11549.8 is added to the   Government Code   , to read:   11549.8. As used in this article, the following terms have the following meanings: (a) "Director" means the Director of the Office of Privacy Protection. (b) "Office" means the Office of Privacy Protection.   SEC. 30.   Section 12804 of the   Government Code   is amended to read:  12804. The Agriculture and Services Agency is hereby renamed the State and Consumer Services Agency. The State and Consumer Services Agency consists of the following: the Department of General Services;  the Department of Technology Services;  the Department of Consumer Affairs; the Franchise Tax Board; the Public Employees' Retirement System; the State Teachers' Retirement System; the Department of Fair Employment and Housing; the Fair Employment and Housing Commission; the California Science Center; the California Victim Compensation and Government Claims Board; the California  African-American   African American  Museum; the  State   California  Building and Standards Commission; the Alfred E. Alquist Seismic Safety Commission; and the Office of  Information Security and  Privacy Protection.  SEC. 31.   Section 14995 of the   Government Code   is amended to read:  14995. (a) The Electronic Funds Transfer Task Force is hereby established in state government. (b) The Electronic Funds Transfer Task Force shall consist of one representative from each of the following agencies, boards,  and  departments,  and offices,  appointed by the corresponding agency, board,  or department   department, or office  head, as follows: (1) State Board of Equalization. (2) Franchise Tax Board. (3) Employment Development Department. (4) Treasurer. (5) Controller. (6) Department of Finance. (7) Department of General Services. (8)  Department   Office  of Technology Services. (c) The Electronic Funds Transfer Task Force shall study and report to the Legislature, on or before April 1, 2008, a plan for the development and implementation of a payment disbursal system utilizing electronic funds transfer technology. The plan shall include, but not be limited to, all of the following: (1) An examination of all payments disbursed by the state and the methods currently used to transfer these funds. (2) A recommendation on which payments should be included in a new electronic payment disbursal system. (3) An examination of the cost of developing and utilizing a comprehensive electronic payment disbursal system, including, but not limited to, all of the following: (A) Costs and savings related to float time. (B) Costs and savings related to transaction process time. (C) Costs and savings related to paperless transactions. (D) Costs and savings related to system development and implementation of a new electronic payment disbursal system. (E) Costs and savings related to administration of a new electronic payment disbursal system. (4) A recommendation on how a comprehensive electronic payment disbursal system should be developed, including, but not limited to, recommendations on whether the state should contract for private administration of an electronic payment disbursal system, develop a system within state government, or use any other means available. (5) An examination of the costs and benefits of using a user-friendly, single online portal interface for the disbursal of funds through an electronic payment disbursal system. (6) A recommendation on which state agencies, boards, and departments should be required to use the electronic payment disbursal system for payment of funds, and what, if any, exceptions should be provided for these agencies, boards, and departments. (7) An examination of and recommendation on incorporating the disbursal of funds for localities into the electronic payment system. (8) An examination of and recommendation on the system's flexibility for future expansion of services. (9) An examination of and recommendation on incorporating electronic payment cards, or similar products, into the electronic payment disbursal system. This shall include, but not be limited to, the costs and savings of using electronic payment cards for social services and unbanked customers. (10) An examination of and recommendation on incorporating electronic check conversion into the electronic disbursal system. (11) A recommendation on the timely development of the electronic payment disbursal system.  SEC. 32.   Section 15251 of the   Government Code   is amended to read:  15251. As used in this part,  "department" means Department of General Services   "office" means office of the State Chief Information Officer  .  SEC. 33.   Section 15253 of the   Government Code   is amended to read:  15253. This part shall apply only to those communications facilities which are owned and operated by public agencies in connection with official business of law enforcement services, fire services, natural resources services, agricultural services, and highway maintenance and control of the state or of cities, counties, and other political subdivisions in this state. This part shall not be construed as conferring upon the  Department of General Services   office  control of programs or broadcasts intended for the general public.  SEC. 34.   Section 15254 of the   Government Code   is amended to read:  15254. Radio and other communications facilities owned or operated by the state and subject to the jurisdiction of the  Department of General Services   office  shall not be used for political, sectarian, or propaganda purposes.  Such   The  facilities shall not be used for the purpose of broadcasts intended for the general public, except for fire, flood, frost, storm, catastrophe, and  such  other warnings and information for the protection of the public safety as the  department   office  may prescribe.  SEC. 35.   Section 15275 of the   Government Code   is amended to read:  15275. The  Department of General Services   office  may do all of the following: (a) Provide adequate representation of local and state governmental bodies and agencies before the Federal Communications Commission in matters affecting the state and its cities, counties, and other public agencies regarding public safety communications issues. (b) Provide, upon request, adequate advice to state and local agencies in the state concerning existing or proposed public safety communications facilities between any and all of the following: cities, counties, other political subdivisions of the state, state departments, agencies, boards, and commissions, and departments, agencies, boards, and commissions of other states and federal agencies. (c) Recommend to the appropriate state and local agencies rules, regulations, procedures, and methods of operation that it deems necessary to effectuate the most efficient and economical use of publicly owned and operated public safety communications facilities within this state. (d) Provide, upon request, information and data concerning the public safety communications facilities that are owned and operated by public agencies in connection with official business of public safety services. (e) Carry out the policy of this part.  SEC. 36.   Section 15277 of the   Government Code   is amended to read:  15277.  There is hereby established within the department a Division of Telecommunications.  The  division shall include a policy and planning unit whose  duties  of the office  shall include, but not be limited to, all of the following: (a) Assessing the overall long-range public safety communications needs and requirements of the state considering emergency operations, performance, cost, state-of-the-art technology, multiuser availability, security, reliability, and other factors deemed to be important to state needs and requirements. (b) Developing strategic and tactical policies and plans for public safety communications with consideration for the systems and requirements of the state and all public agencies in this state, and preparing an annual strategic communications plan that includes the feasibility of interfaces with federal and other state telecommunications networks and services. (c) Recommending industry standards for public safety communications systems to assure multiuser availability and compatibility. (d) Providing advice and assistance in the selection of communications equipment to ensure that the public safety communications needs of state agencies are met and that procurements are compatible throughout state agencies and are consistent with the state's strategic and tactical plans for public safety communications. (e) Providing management oversight of statewide public safety communications systems developments. (f) Providing for coordination of, and comment on, plans, policies, and operational requirements from departments that utilize public safety communications in support of their principal function, such as the  Office of Emergency Services   California Emergency Management Agency  , National Guard, health and safety agencies, and others with primary public safety communications programs. (g) Monitoring and participating on behalf of the state in the proceedings of federal and state regulatory agencies and in congressional and state legislative deliberations that have an impact on state government public safety communications activities. (h) Developing plans regarding teleconferencing as an alternative to state travel during emergency situations.  SEC. 37.   Section 53108.5 of the   Government Code   is amended to read:  53108.5.  "Communications Division,"   "Office,"  as used in this article, means the  Communications Division of the Department of General Services   office of the State Chief Information Officer  .  SEC. 38.   Section 53113 of the   Government Code   is amended to read:  53113. The Legislature finds that, because of overlapping jurisdiction of public agencies, public safety agencies, and telephone service areas, a general overview or plan should be developed prior to the establishment of any system. In order to insure that proper preparation and implementation of such systems is accomplished by all public agencies by December 31, 1985, the  Communications Division   office  , with the advice and assistance of the Attorney General, shall secure compliance by public agencies as provided in this article.  SEC. 39.   Section 53114 of the   Government Code   is amended to read:  53114. The  Communications Division   office  , with the advice and assistance of the Attorney General, shall coordinate the implementation of systems established pursuant to the provisions of this article. The  Communications Division   office  , with the advice and assistance of the Attorney General, shall assist local public agencies and local public safety agencies in obtaining financial help to establish emergency telephone service, and shall aid  such  agencies in the formulation of concepts, methods, and procedures  which   that  will improve the operation of systems required by this article and  which   that  will increase cooperation between public safety agencies.  SEC. 40.   Section 53114.1 of the   Government Code   is amended to read: 53114.1. To accomplish the responsibilities specified in this article, the  Communications Division   office  is directed to consult at regular intervals with the State Fire Marshal, the State Department of  P   ublic  Health  Services  , the  Governor's  Office of Traffic Safety, the  Office of Emergency Services   California Emergency Management Agency  , the California Council on Criminal Justice, a local representative from a city, a local representative from a county, the public utilities in this state providing telephone service, the Associated Public Safety Communications Officers, the Emergency Medical Services Authority, the Department of the California Highway Patrol, and the Department of Forestry and Fire Protection. These agencies shall provide all necessary assistance and consultation to the  Communications Division   office  to enable it to perform its duties specified in this article.  SEC. 41.   Section 53114.2 of the   Government Code   is amended to read:  53114.2. Technical and operational standards for the development of the public agency systems shall be established and reviewed by the  Communications Division   office  on or before December 31, 1973, after consultation with all agencies specified in Section 53114.1. On or before December 31, 1976, and each even-numbered year thereafter, after consultation with all agencies specified in Section 53114.1, the  Communications Division   office  shall review and update technical and operational standards for public agency systems.  SEC. 42.   Section 53115 of the   Government Code   is amended to read:  53115. (a) On or before January 31, 1975, all public agencies shall submit tentative plans for the establishment of a system required by this article to the public utility or utilities providing public telephone service within the respective jurisdiction of each public agency. A copy of each such plan shall be filed with the  Communications Division   office  . (b) On or before October 1, 1978, all public agencies shall submit final plans to the  Communications Division   office  for approval. The final plan shall identify all planning, implementation, installation, and operating costs the local agency feels necessary to implement the system required by this article. On or before July 1, 1981, all public agencies shall place a firm order as approved by the  Communications Division   office  to the utility or utilities providing telephone service to the public agency, and shall make arrangements with such utilities for the implementation of the planned emergency telephone system no later than December 31, 1985. If the Legislature fails to take action as specified in Section 41030 of the Revenue and Taxation Code prior to January 1, 1981, then the dates specified for ordering and implementation of a system shall be respectively postponed by the number of years elapsing between 1981 and the year in which the Legislature acts. (c) If any public agency has implemented or is a part of a system required by this article on a deadline specified in subdivision (a) or (b), such public agency shall submit in lieu of the tentative or final plan a report describing the system and stating its operational date. (d) Plans filed pursuant to subdivisions (a) and (b) shall conform to minimum standards established pursuant to Section 53114.2. (e) The  Communications Division   office  shall monitor all emergency telephone systems to ensure they comply with minimal operational and technical standards as established by the division. If any system does not comply the  Communications Division   office  shall notify in writing the public agency or agencies operating the system of its deficiencies. The public agency shall bring the system into compliance with the operational and technical standards within 60 days of notice by the division. Failure to comply within such time shall subject the public agency to action by the Attorney General pursuant to Section 53116.  SEC. 43.   Section 53115.1 of the   Government Code   is amended to read:  53115.1. (a) There is in state government the State 911 Advisory Board. (b) The advisory board shall be comprised of the following members appointed by the Governor who shall serve at the pleasure of the Governor. (1) The Chief of the California 911 Emergency Communications Office shall serve as the nonvoting chair of the board. (2) One representative from the Department of the California Highway Patrol. (3) Two representatives on the recommendation of the California Police Chiefs Association. (4) Two representatives on the recommendation of the California State Sheriffs' Association. (5) Two representatives on the recommendation of the California Fire Chiefs Association. (6) Two representatives on the recommendation of the CalNENA Executive Board. (7) One representative on the joint recommendation of the executive boards of the state chapters of the Association of Public-Safety Communications Officials-International, Inc. (c) Recommending authorities shall give great weight and consideration to the knowledge, training, and expertise of the appointee with respect to their experience within the California 911 system. Board members should have at least two years of experience as a Public Safety Answering Point (PSAP) manager or county coordinator, except where a specific person is designated as a member. (d) Members of the advisory board shall serve at the pleasure of the Governor, but may not serve more than two consecutive two-year terms, except as follows: (1) The presiding Chief of the California 911 Emergency Communications Office shall serve for the duration of his or her tenure. (2) Four of the members shall serve an initial term of three years. (e) Advisory board members shall not receive compensation for their service on the board, but may be reimbursed for travel and per diem for time spent in attending meetings of the board. (f) The advisory board shall meet quarterly in public sessions in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 2 of Part 1 of Division 3 of Title 2). The  Telecommunications Division   office  shall provide administrative support to the State 911 Advisory Board. The State 911 Advisory Board, at its first meeting, shall adopt bylaws and operating procedures consistent with this article and establish committees as necessary. (g) Notwithstanding any other provision of law, any member of the advisory board may designate a person to act as that member in his or her place and stead for all purposes, as though the member were personally present.  SEC. 44.   Section 53115.2 of the   Government Code   is amended to read:  53115.2. (a) The State 911 Advisory Board shall advise the  Telecommunications Division of the Department of General Services   office  on all of the following subjects: (1) Policies, practices, and procedures for the California 911 Emergency Communications Office. (2) Technical and operational standards for the California 911 system consistent with the National Emergency Number Association (NENA) standards. (3) Training standards for county coordinators and Public Safety Answering Point (PSAP) managers. (4) Budget, funding, and reimbursement decisions related to the State Emergency Number Account. (5) Proposed projects and studies conducted or funded by the State Emergency Number Account. (6) Expediting the rollout of Enhanced 911 Phase II technology. (b) Upon request of a local public agency, the board shall conduct a hearing on any conflict between a local public agency and the  Telecommunications Division   office  regarding a final plan that has not been approved by the  Telecommunications Division   office  pursuant to Section 53114. The board shall meet within 30 days following the request, and shall make a recommendation to resolve the conflict to the  Telecommunications Division   office  within 90 days following the initial hearing by the board pursuant to the request.  SEC. 45.   Section 53115.3 of the   Government Code   is amended to read:  53115.3. When proposed implementation of the 911 system by a single public agency within its jurisdiction may adversely affect the implementation of the system by a neighboring public agency or agencies, such neighboring public agency may request that the  Communications Division   office evaluate the impact of implementation by the proposing public agency and evaluate and weigh that impact in its decision to approve or disapprove the proposing public agency's final plan pursuant to Section 53115. In order to effectuate this process, each city shall file a notice of filing of its final plan with each adjacent city and with the county in which the proposing public agency is located at the same time such final plan is filed with the  Communications Division  office  and each county shall file a notice of filing of its final plan with each city within the county and each adjacent county at the time  such   the  final plan is filed with the  Communications Division   office  . Any public agency wishing to request review pursuant to this section shall file its request with the  division   office  within 30 days of filing of the final plan for which review is sought.  SEC. 46.   Section 53116 of the   Government Code   is amended to read:  53116. The Attorney General may,  in   on  behalf of the  Communications Division   office  or on his own initiative, commence judicial proceedings to enforce compliance by any public agency or public utility providing telephone service with the provisions of this article.  SEC. 47.   Section 53119 of the   Government Code   is amended to read:  53119. Any telephone corporation serving rural telephone areas which cannot currently provide enhanced "911" emergency telephone service capable of selective routing, automatic number identification, or automatic location identification shall present to the  communications division   office  a comprehensive plan detailing a schedule by which those facilities will be converted to be compatible with the enhanced emergency telephone system.  SEC. 48.   Section 53120 of the   Government Code   is amended to read:  53120. The  communications division   office  shall not delay implementation of the enhanced "911" emergency telephone system in those portions of cities or counties, or both, served by a local telephone corporation that has equipment compatible with the enhanced "911" emergency telephone system.  SEC. 49.   Section 53126.5 of the   Government Code   is amended to read:  53126.5. For purposes of this article, the following definitions apply:  (a) "Division of Telecommunications" means the Division of Telecommunications of the Department of General Services.   (b)   (a)  "Local public agency" means a city, county, city and county, and joint powers authority that provides a public safety answering point (PSAP).  (c)   (b)  "Nonemergency telephone system" means a system structured to provide access to only public safety agencies such as police and fire, or a system structured to provide access to public safety agencies and to all other services provided by a local public agency such as street maintenance and animal control.  SEC. 50.   Section 53127 of the   Government Code   is amended to read:  53127. The  Division of Telecommunications   office of the State Chief Information Officer  may aid local public agencies in the formulation of concepts, methods, and procedures that will improve the operation of systems authorized by this article and increase cooperation among public agencies.  SEC. 51.   Section 12100.7 of the   Public Contract Code   is amended to read:  12100.7. As used in this chapter: (a) "Department" means the Department of General Services. (b) "Director" means the Director of General Services. (c) "Information technology" shall have the same definition as set forth in Section 11702 of the Government Code. (d) "Multiple award schedule" (MAS) is an agreement established between the General Services Administration of the United States and certain suppliers to do business under specific prices, terms, and conditions for specified goods, information technology, and services. (e) "Multiple award" means a contract of indefinite quantity for one or more similar goods, information technology, or services to more than one supplier. (f) "Office" means the office in the department, by whatever name it may be called, which is responsible for contracting for goods and information technology, and is headed by the state procurement officer.  (g) "Procedures" means the specific methods or courses of action to implement policies for information technology procurement.   (h) For purposes of this chapter, "policies" may be defined as setting general principles and standards for the acquisition of information technology.   (g)   (i)  For purposes of this chapter, "value-effective acquisition" may be defined to include, but not be limited to, the following: (1) The operational cost that the state would incur if the bid or proposal is accepted. (2) Quality of the product or service, or its technical competency. (3) Reliability of delivery and implementation schedules. (4) The maximum facilitation of data exchange and systems integration. (5) Warranties, guarantees, and return policy. (6) Supplier financial stability. (7) Consistency of the proposed solution with the state's planning documents and announced strategic program direction. (8) Quality and effectiveness of business solution and approach. (9) Industry and program experience. (10) Prior record of supplier performance. (11) Supplier expertise with engagements of similar scope and complexity. (12) Extent and quality of the proposed participation and acceptance by all user groups. (13) Proven development methodologies and tools. (14) Innovative use of current technologies and quality results.  SEC. 52.   Section 12101 of the   Public Contract Code   is amended to read:  12101. It is the intent of the Legislature that policies developed by the  Department of Information Technology   office of the State Chief Information Officer  and procedures developed by the Department of General Services in accordance with Section 12102 provide for  the following  : (a) The expeditious and value-effective acquisition of information technology goods and services to satisfy state requirements. (b) The acquisition of information technology goods and services within a competitive framework. (c) The delegation of authority by the Department of General Services to each state agency that has demonstrated to the department' s satisfaction the ability to conduct value-effective information technology goods and services acquisitions. (d) The exclusion from state bid processes, at the state's option, of any supplier having failed to meet prior contractual requirements related to information technology goods and services. (e) The review and resolution of protests submitted by any bidders with respect to any information technology goods and services acquisitions.  SEC. 53.   Section 12103 of the   Public Contract Code   is amended to read:  12103. In addition to the mandatory requirements enumerated in Section 12102, the acquisition policies developed and maintained by the  Department of Information Technology   office of the State Chief Information Officer  and procedures developed and maintained by the Department of General Services in accordance with this chapter may provide for the following: (a) Price negotiation with respect to contracts entered into in accordance with this chapter. (b) System or equipment component performance, or availability standards, including an assessment of the added cost to the state to receive contractual guarantee of a level of performance. (c) Requirement of a bond or assessment of a cost penalty with respect to a contract or consideration of a contract offered by a supplier whose performance has been determined unsatisfactory in accordance with established procedures maintained in the State Administrative Manual as required by Section 12102.  SEC. 54.   Section 12104 of the   Public Contract Code   is amended to read:  12104. (a) (1) Commencing on or before January 1, 2007, the State Contracting Manual shall set forth all policies, procedures, and methods that shall be used by the department when seeking to obtain bids for the acquisition of information technology, including any policies contained in the State Administrative Manual. (2) Revisions to the manual must be publicly announced, including, but not limited to, postings on the department's Internet homepage. (b) On or before January 1, 2007, the department shall designate a single entity within the department that shall be solely responsible for the development, implementation, and maintenance of standardized methods for the development of information technology requests for proposals. (c) Commencing on or before January 1, 2007, all information technology requests for proposals shall be reviewed by the Office of Legal Services prior to release to the public. (d) (1) On or before January 1, 2007, the department, in consultation with a representative from the  Department   Office  of Technology Services, the Department of Finance, the Senate, and the Assembly, along with representatives from the information technology industry, shall issue a management memorandum setting forth uniform standards for information technology procurement. The management memorandum shall prioritize how the technology will advance the public policy purpose of the state program that the information technology will serve over the department's or client's preference for a particular information product design. Prior to issuing the management memorandum, the department shall hold at least two public hearings on the standards that are proposed to be included in the management memorandum. (2) The management memorandum issued pursuant to paragraph (1) shall not apply to procurements necessary to meet the requirements of the Department of Justice Hawkins Data Center.  SEC. 55.   Section 12105 of the   Public Contract Code   is amended to read:  12105. The Department of General Services and the  Department of Information Technology   office   of the State Chief Information Officer  shall coordinate in the development of policies and procedures  which   that  implement the intent of this chapter. The  Department of Information Technology   office of the State Chief Information Officer  shall have the final authority in the determination of any general policy and the Department of General Services shall have the final authority in the determination of any procedures.  SEC. 56.   Section 12120 of the   Public Contract Code   is amended to read:  12120. The Legislature finds and declares that, with the advent of deregulation in the telecommunications industry, substantial cost savings can be realized by the state through the specialized evaluation and acquisition of alternative telecommunications systems. All contracts for the acquisition of telecommunications services and all contracts for the acquisition of telecommunications goods, whether by lease or purchase, shall be made by, or under the supervision of, the Department of General Services. All acquisitions shall be accomplished in accordance with Chapter 3 (commencing with Section 12100), relating to the acquisition of information technology goods and services, except to the extent any directive or provision is uniquely applicable to information technology acquisitions. The  Department of General Services   office  shall have responsibility for the establishment of policy and procedures for telecommunications. The  Department of General Services   office  shall have responsibility for the establishment of tactical policy and procedures for data-processing acquisitions consistent with statewide strategic policy  as established by the Department of Finance. The Department of Finance shall have review and approval responsibility of data-processing information and telecommunication acquisitions to assure consistency with budgetary objectives  . The Trustees of the California State University and the Board of Governors of the California Community Colleges shall assume the functions of the  Department of Finance and the Department of General Services   office  with regard to acquisition of telecommunication goods and services by the California State University and the California Community Colleges, respectively. The trustees and the board shall each grant to the  Department of General Services, Division of Telecommunications,   office  an opportunity to bid whenever the university or the college system solicits bids for telecommunications goods and services.  SEC. 57.   Section 12121 of the   Public Contract Code   is amended to read:  12121. As used in this chapter:  (a) "Office" means the office of the State Chief Information Officer.   (a)   (b)  "Tactical policy" means the policies of an organization necessary to direct operational staff in carrying out their day-to-day activities.  (b)   (c)  "Strategic policy" means policy which defines the goals and objectives for an organization.  SEC. 58.   Section 41030 of the   Revenue and Taxation Code   is amended to read:  41030. The  Department of General Services   office of the State Chief Information Officer  shall determine annually, on or before October 1, a surcharge rate that it estimates will produce sufficient revenue to fund the current fiscal year's 911 costs. The surcharge rate shall be determined by dividing the costs (including incremental costs) the  Department of General Services   office of the State Chief Information Officer  estimates for the current fiscal year of 911 plans approved pursuant to Section 53115 of the Government Code, less the available balance in the State Emergency Telephone Number Account in the General Fund, by its estimate of the charges for intrastate telephone communications services and VoIP service to which the surcharge will apply for the period of January 1 to December 31, inclusive, of the next succeeding calendar year, but in no event shall such surcharge rate in any year be greater than three-quarters of 1 percent nor less than one-half of 1 percent.  SEC. 59.   Section 41031 of the   Revenue and Taxation Code   is amended to read:  41031. The  Department of General Services   office of the State Chief Information Officer  shall make its determination of  such   the  surcharge rate each year no later than October 1 and shall notify the board of the new rate, which shall be fixed by the board to be effective with respect to charges made for intrastate telephone communication services and VoIP service on or after January 1 of the next succeeding calendar year.  SEC. 60.   Section 41032 of the   Revenue and Taxation Code   is amended to read:  41032. Immediately upon notification by the  Department of General Services   office of the State Chief Information Officer  and fixing the surcharge rate, the board shall each year no later than November 15 publish in its minutes the new rate, and it shall notify by mail every service supplier registered with it of the new rate.  SEC. 61.  Section 4113   6 of the   Revenue and Taxation Code   is amended to read:  41136. Funds in the State Emergency Telephone Number Account shall, when appropriated by the Legislature, be spent solely for the following purposes: (a) To pay refunds authorized by this part. (b) To pay the State Board of Equalization for the cost of the administration of this part. (c) To pay the  Department of General Services   office of the State Chief Information Officer  for its costs in administration of the "911" emergency telephone number system. (d) To pay bills submitted to the  Department of General Services   office of the State Chief Information Officer  by service suppliers or communications equipment companies for the installation of, and ongoing expenses for, the following communications services supplied to local agencies in connection with the "911" emergency phone number system: (1) A basic system. (2) A basic system with telephone central office identification. (3) A system employing automatic call routing. (4) Approved incremental costs. (e) To pay claims of local agencies for approved incremental costs, not previously compensated for by another governmental agency. (f) To pay claims of local agencies for incremental costs and amounts, not previously compensated for by another governmental agency, incurred prior to the effective date of this part, for the installation and ongoing expenses for the following communication services supplied in connection with the "911" emergency phone number system: (1) A basic system. (2) A basic system with telephone central office identification. (3) A system employing automatic call routing. (4) Approved incremental costs. Incremental costs shall not be allowed unless the costs are concurred in by the  Division of Telecommunications of the Department of General Services   office of the State Chief Information Officer  . (g) To pay the  Division of Telecommunications of the Department of General Services   office of the State Chief Information Officer  for the costs associated with the pilot program authorized by Article 6.5 (commencing with Section 53125) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code.  SEC. 62.   Section 41136.1 of the   Revenue and Taxation Code   is amended to read:  41136.1. For each fiscal year, moneys in the State Emergency Telephone Number Account not appropriated for a purpose specified in Section 41136 shall be held in trust for future appropriation for upcoming, planned "911" emergency telephone number projects that have been approved by the  Department of General Services   office of the State Chief Information Officer  , even if the projects have not yet commenced.  SEC. 63.   Section 41137 of the   Revenue and Taxation Code   is amended to read:  41137. The  Department of General Services   office of the State Chief Information Officer  shall pay, from funds appropriated from the State Emergency Telephone Number Account by the Legislature, as provided in Section 41138, bills submitted by service suppliers or communications equipment companies for the installation and ongoing costs of the following communication services provided local agencies by service suppliers in connection with the "911" emergency telephone number system: (a) A basic system. (b) A basic system with telephone central office identification. (c) A system employing automatic call routing. (d) Approved incremental costs that have been concurred in by the  Communications Division   office of the State Chief Information Officer  .  SEC. 64.   Section 41137.1 of the   Revenue and Taxation Code   is amended to read:  41137.1. The  Department of General Services   office of the State Chief Information Officer  shall pay, from funds appropriated from the State Emergency Telephone Number Account by the Legislature, as provided in Section 41138, claims submitted by local agencies for approved incremental costs and for the cost of preparation of final plans submitted to the  Communications Division   office of the State Chief Information Officer  for approval on or before October 1, 1978, as provided in Section 53115 of the Government Code.  SEC. 65.   Section 41138 of the   Revenue and Taxation Code   is amended to read:  41138. (a) It is the intent of the Legislature that the reimbursement rates for "911" emergency telephone number equipment shall not exceed specified amounts negotiated with each interested supplier and approved by the  department   office of the State Chief Information Officer  . The  department   office of the State Chief Information Officer  shall negotiate supplier pricing to ensure cost effectiveness and the best value for the "911" emergency telephone number system. The  department   office of the State Chief Information Officer  shall pay those bills as provided in Section 41137 only under the following conditions: (1) The  department   office of the State Chief Information Officer  shall have received the local agency' s "911" emergency telephone number system plan by July 1 of the prior fiscal year and approved the plan by October 1 of the prior fiscal year. (2) The Legislature has appropriated in the Budget Bill an amount sufficient to pay those bills. (3) The  department   office of the State Chief Information Officer  has reviewed and approved each line item of a request for funding to ensure the necessity of the proposed equipment or services and the eligibility for reimbursement. (4) The amounts to be paid do not exceed the pricing submitted by the supplier and approved by the  department   office of the State Chief Information Officer  . Extraordinary circumstances may warrant spending in excess of the established rate, but shall be preapproved by the  department   office of the State Chief Information Officer  . In determining the reimbursement rate, the  department   office of the State Chief Information Officer  shall utilize the approved pricing submitted by the supplier providing the equipment or service. (b) Nothing in this section shall be construed to limit an agency' s ability to select a supplier or procure telecommunications equipment as long as the supplier's pricing is preapproved by the  department   office of the State Chief Information Officer  . Agencies shall be encouraged to procure equipment on a competitive basis. Any amount in excess of the pricing approved by the  department   office of the State Chief Information Officer  shall not be reimbursed.  SEC. 66.   Section 41139 of the   Revenue and Taxation Code   is amended to read:  41139. From funds appropriated by the Legislature from the Emergency Telephone Number Account, the  department   office of the State Chief Information Officer  shall begin paying  such  bills as provided in Sections 41137, 41137.1, and 41138 in the 1977-78 fiscal year for plans submitted by local agencies by July 1, 1976  ,  to the  department   office of the State Chief Information Officer  which the  department   office of the State Chief Information Officer  has approved.  SEC. 67.   Section 41140 of the   Revenue and Taxation Code   is amended to read:  41140. The  Department of General Service  office of the State Chief Information Officer  shall reimburse local agencies, from funds appropriated from the Emergency Telephone Number Account by the Legislature, for amounts not previously compensated for by another governmental agency, which have been paid by  such  agencies for approved incremental costs or to service suppliers or communication equipment companies for the following communications services supplied in connection with the "911" emergency phone number, provided  such  local agency plans had been approved by the  department   office of the State Chief Information Officer  :  (1)   (a)  A basic system.  (2)   (b)  A basic system with telephone central office identification.  (3)   (c)  A system employing automatic call routing.  (4)   (d)  Approved incremental costs.  SEC. 68.   Section 41141 of the   Revenue and Taxation Code   is amended to read:  41141. Claims for reimbursement shall be submitted by local agencies to the  Communications Division in the Department of General Services   office of the State Chief Information Officer  , which shall determine payment eligibility and shall reduce the claim for charges  which   that  exceed the approved incremental costs, approved contract amounts, or the established tariff rates for  such  costs. No claim shall be paid until funds are appropriated by the Legislature.  SEC. 69.   Section 41142 of the   Revenue and Taxation Code   is amended to read:  41142. Notwithstanding any other provision of this article, if the Legislature fails to appropriate an amount sufficient to pay bills submitted to the  Department of General Services   office of the State Chief Information Officer  by service suppliers or communications equipment companies for the installation and ongoing communications services supplied local agencies in connection with the "911" emergency phone number system, and to pay claims of local agencies which, prior to the effective date of this part, paid amounts to service suppliers or communications equipment companies for the installation and ongoing expenses in connection with the "911" emergency phone number system, the obligation of service suppliers and local agencies to provide "911" emergency telephone service shall terminate and  such  service shall not again be required until the Legislature has appropriated an amount sufficient to pay  such   those  bills or claims. Nothing in this part shall preclude local agencies from purchasing or acquiring any communication equipment from companies other than the telephone service suppliers.  SEC. 70.   Section 16501.7 of the   Welfare and Institutions Code   is amended to read:  16501.7. (a) On or before December 1, 2005, the State Department of Social Services shall develop, and provide to the Chairperson of the Joint Legislative Budget Committee, a Child Welfare Services/Case Management System performance commitments plan. The plan shall be developed in conjunction with the Office of System Integration, the  Department   Office  of Technology Services, and the County Welfare Directors Association. (b) (1) The plan developed as required by subdivision (a) shall include, but not be limited to, performance standards for system availability, application transaction time, batch processing windows, data downloads, a process for the identification, tracking, and response of repair service requests, data backup and recovery, help desk responsiveness, and a process for security incidents. (2) The plan may include print time. (3) The plan shall describe all of the following: (A) The mechanism for tracking system performance. (B) Corrective action protocols. (C) The steps that will be taken should performance fall below standards for a specified period of time. (c) It is the intent of the Legislature that the plan developed pursuant to this section shall do all of the following: (1) Appropriately assign responsibility for ensuring service levels to the entity accountable. (2) Prioritize implementation of components of the plan. (3) Address implementation feasibility of the plan's components, including any issues regarding plan implementation that need to be addressed.  SECTION 1.   Section 11545 of the Government Code is amended to read: 11545. (a) There is in state government the office of the State Chief Information Officer. The State Chief Information Officer shall be appointed by, and serve at the pleasure of, the Governor, subject to Senate confirmation. The State Chief Information Officer shall be a member of the Governor's cabinet. (b) The duties of the State Chief Information Officer 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, except for sections on information technology procurement, information security, and information technology fiscal policy. The State Chief Information Officer shall consult with the Director of General Services, the Director of the Office of Information Security and Privacy Protection, the Director of Finance, and other relevant agencies concerning policies and standards these agencies are responsible to issue as they relate to information technology. (3) Minimizing overlap, redundancy, and cost in state operations by promoting the efficient and effective use of information technology. (4) Coordinating the activities of agency and department chief information officers and the Director of Technology Services for purposes of integrating statewide technology initiatives, ensuring compliance with information technology policies and standards, including policies and standards issued by the Department of General Services and the Office of Information Security and Privacy Protection, and promoting alignment and effective management of information technology resources. (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. (c) The office of the State Chief Information Officer 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 office in the development of this plan, as required by the State Chief Information Officer. (1) Upon establishment of the information technology strategic plan, the State Chief Information Officer 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, 2009, and annually thereafter.