WHEREAS, information technology is an indispensable tool of modern government; and

WHEREAS, the State of California invests billions of dollars to procure, manage and maintain information technology and services; and

WHEREAS, the State of California is committed to the effective planning for and management of the State's information technology; and

WHEREAS, statutory authorization for the Department of Information Technology ends July 1, 2002; and

WHEREAS, there is a compelling need to maintain oversight of ongoing information technology projects;

, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statutes of the State of California, do hereby issue this Executive Order to become effective immediately:

IT IS ORDERED that each agency immediately assume responsibility for the prudent oversight of the management of ongoing information technology projects and procurements within the agency's jurisdiction.

that each department and agency shall develop or, if already developed, reassess, its ethical guidelines as they apply to individuals involved in the procurement, management and operation of information technology systems with the goal of avoiding the appearance, as well as the reality, of impropriety or conflict of interest.

that each agency shall prepare a report to be submitted to the Department of Finance in 30 days describing what concrete steps the agency can take to increase the agency's oversight of major information technology projects and procurements within the agency to ensure that such projects stay on course, on time and on budget, and to identify any impediments to accomplishing that increase in oversight.

IT IS FURTHER ORDERED that each department and agency shall modify, if necessary, its internal reporting relationships so that the chief information officer and chief information security officer report directly to their department director or agency secretary.

IT IS FURTHER ORDERED that the Department of Finance, pursuant to its "general powers of supervision over all matters concerning the financial and business policies of the State" (Government Code section 13070), shall, in consultation with the Department of General Services, issue one or more management memoranda providing for continuity and clarity with respect to policies, standards and guidelines regarding information technology operations and security, and with respect to roles and responsibilities in information technology project approval, procurement and oversight. The Department of General Services shall assure that these policies, standards and guidelines are implemented in connection with its responsibilities under Public Contract Code section 12100.

IT IS FURTHER ORDERED that effective July 1, 2002, the Department of Finance shall become the successor to and custodian of all records and papers held for the benefit or use of the Department of Information Technology in the performance of its statutory duties, powers, purposes and responsibilities.

All State entities under the Governor's jurisdiction shall cooperate fully with the Departments of Finance and General Services, and provide assistance as needed to implement this Executive Order. All other State agencies are encouraged to assist those Departments as requested to comply with the Executive Order.

that as soon as hereafter possible, this order shall be filed with the Office of the Secretary of State and that widespread publicity and notice be given to this order.