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LAO Weighs Newsom's Plans to Consolidate

The “Center for Data Insight and Innovation” and the “Department of Cannabis Control” would be the result of consolidation of other offices and functions.

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A state oversight office has given qualified approval to a plan by Gov. Gavin Newsom to consolidate, streamline or otherwise reorganize six state government functions or agencies.

The state Legislative Analyst’s Office, in an analysis issued Friday afternoon, addressed the plan that Newsom put forth in his proposed state budget last month. Of the governor’s half-dozen proposed changes, two would most directly relate to technology:

— The establishment of a “Center for Data Insight and Innovation” within the California Health and Human Services Agency that would be a consolidation of the agency’s Office of Innovation, its Office of the Patient Advocate, and the Office of Health Information Integrity.

— The creation of a “Department of Cannabis Control,” which would encompass the existing regulatory entities – the Bureau of Cannabis Control, the California Department of Food and Agriculture, and the California Department of Public Health.

These changes appear to satisfy at least some of the guidelines set forth by LAO:

  • Would the reorganization make programs more effective?
  • Would the reorganization improve efficiency?
  • Would the new structure enhance accountability?
  • Is the reorganization based on a policy rationale?
  • Does it reflect legislative priorities?
  • Do the benefits outweigh the costs?
  • Is the reorganization well-planned?
  • How should the reorganization be implemented?
When the CHHS aspect of the plan was made public last month, Agency Information Officer Adam Dondro told Techwire he was “very excited” about the proposed Center for Data Insight and Innovation.

“By combining a focused, coordinated effort towards integrated data across our departments, with the person-centered design approach that our Office of Innovation has been leading, the Center will be uniquely positioned to drive the agencies’ goal of whole-person care and the person-centered approach needed to achieve that goal,” Dondro said via email.

Under Newsom’s proposal, the CHHS data initiative would be funded for the coming fiscal year with existing resources.

Less is known about the cannabis agency consolidation; the administration says it plans to submit a detailed proposal to the Legislature this spring. The LAO report notes that that aspect of Newsom’s plan “may have the potential to improve accountability by creating a single entity responsible for licensing the legal cannabis market.”

Dennis Noone is Executive Editor of Industry Insider. He is a career journalist, having worked at small-town newspapers and major metropolitan dailies including USA Today in Washington, D.C.