BILL NUMBER: SB 1236	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 1, 2002
	AMENDED IN SENATE  MARCH 21, 2002

INTRODUCED BY   Senator Alarcon

                        JANUARY 7, 2002

   An act to amend Sections 11550, 11552, 12800, and 12803 of, to add
Section 12813 to, and to add Part 8.5 (commencing with Section
15550) to Division 3 of Title 2 of, the Government Code, to amend
Sections 50 and 1141 of, and to add Sections 18.5 and 19.5 to, the
Labor Code, and to amend Section 301 of the Unemployment Insurance
Code, relating to governmental reorganization.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1236, as amended, Alarcon.  Labor and Workforce Development
Agency.
   (1) Existing law does not provide for the establishment of a Labor
and Workforce Development Agency in state government.
   This bill would create a Labor and Workforce Development Agency in
state government consisting of the Department of Industrial
Relations, the Employment Development Department, the Agricultural
Labor Relations Board, and the Workforce  Development
  Investment  Board.  The agency would be under the
supervision of the Secretary of Labor and Workforce Development who
would be appointed by the Governor, subject to confirmation by the
Senate.
   (2) Existing law provides for the Director of Industrial Relations
to receive an annual salary of $91,054, as adjusted.
   This bill instead would provide for the director to receive an
annual salary of $85,402, as adjusted.
   (3) This bill would make conforming changes and other related
changes in governmental reorganization of state agencies.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11550 of the Government Code is amended to
read:
   11550.  Effective January 1, 1988, an annual salary of ninety-one
thousand fifty-four dollars ($91,054) shall be paid to each of the
following:
   (a) Director of Finance.
   (b) Secretary of Business, Transportation and Housing.
   (c) Secretary of Resources.
   (d) Secretary of  the California  Health and
Human Services  Agency  .
   (e) Secretary of State and Consumer Services.
   (f) Commissioner of the California Highway Patrol.
   (g) Secretary of Youth and Adult Correctional Agency.
   (h) Secretary of Food and Agriculture.
   (i) Secretary of Technology, Trade, and Commerce.
   (j) Secretary of Veterans Affairs.
   (k) Secretary of Labor and Workforce Development.
   The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees.  The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
  SEC. 2.  Section 11552 of the Government Code is amended to read:
   11552.  Effective January 1, 1988, an annual salary of eighty-five
thousand four hundred two dollars ($85,402) shall be paid to each of
the following:
   (a) Commissioner of Financial Institutions.
   (b) Commissioner of Corporations.
   (c) Insurance Commissioner.
   (d) Director of Transportation.
   (e) Real Estate Commissioner.
   (f) Director of Social Services.
   (g) Director of Water Resources.
   (h) Director of Corrections.
   (i) Director of General Services.
   (j) Director of Motor Vehicles.
   (k) Director of the Youth Authority.
   (l) Executive Officer of the Franchise Tax Board.
   (m) Director of Employment Development.
   (n) Director of Alcoholic Beverage Control.
   (o) Director of Housing and Community Development.
   (p) Director of Alcohol and Drug Abuse.
   (q) Director of the Office of Statewide Health Planning and
Development.
   (r) Director of the Department of Personnel Administration.
   (s) Chairperson and Member of the Board of Equalization.  

   (t) Secretary of Technology, Trade, and Commerce. 
   (u) Director of Health Services.
   (v) Director of Mental Health.
   (w) Director of Developmental Services.
   (x) State Public Defender.
   (y) Director of the California State Lottery.
   (z) Director of Fish and Game.
   (aa) Director of Parks and Recreation.
   (ab) Director of Rehabilitation.
   (ac) Director of Veterans Affairs.
   (ad) Director of Consumer Affairs.
   (ae) Director of Forestry and Fire Protection.
   (af) The Inspector General pursuant to Section 6125 of the Penal
Code.
   (ag) Director of Child Support Services.
   (ah) Director of Industrial Relations.
   The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees.  The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
  SEC. 3.  Section 12800 of the Government Code is amended to read:
   12800.  There are in the state government the following agencies:
State and Consumer Services; Business, Transportation and Housing;
California Environmental Protection; California Health and Human
Services; Labor and Workforce Development; Resources; Technology,
Trade, and Commerce; and Youth and Adult Correctional.
   Whenever the term "Agriculture and Services Agency" appears in any
law, it means the "State and Consumer Services Agency," and whenever
the term "Secretary of Agriculture and Services Agency" appears in
any law, it means the "Secretary of State and Consumer Services."
   Whenever the term "Business and Transportation Agency" appears in
any law, it means the "Business, Transportation and Housing Agency,"
and whenever the term "Secretary of the Business and Transportation
Agency" appears in any law, it means the "Secretary of Business,
Transportation and Housing."
   Whenever the term "Health and Welfare Agency" appears in any law,
it means the "California Health and Human Services Agency," and
whenever the term "Secretary of the Health and Welfare Agency"
appears in any law, it means the "Secretary of California Health and
Human Services."
  SEC. 4.  Section 12803 of the Government Code is amended to read:
   12803.  (a) The California Health and Human Services Agency
consists of the following departments:  Health Services; Mental
Health; Developmental Services; Social Services; Alcohol and Drug
Abuse; Aging; Rehabilitation; and Community Services and Development.

   (b) The agency also includes the Office of Statewide Health
Planning and Development and the State Council on Developmental
Disabilities.
   (c) The Department of Child Support Services is hereby created
within the agency commencing January 1, 2000, and shall be the single
organizational unit designated as the state's Title IV-D agency with
the responsibility for administering the state plan and providing
services relating to the establishment of paternity or the
establishment, modification, or enforcement of child support
obligations as required by Section 654 of Title 42 of the United
States Code.  State plan functions shall be performed by other
agencies as required by law, by delegation of the department, or by
cooperative agreements.
  SEC. 5.  Section 12813 is added to the Government Code, to read:
   12813.  The Labor and Workforce Development Agency consists of the
Department of Industrial Relations, the Employment Development
Department, the Agricultural Labor Relations Board, and the Workforce
 Development   Investment  Board.
  SEC. 6.  Part 8.5 (commencing with Section 15550) is added to
Division 3 of Title 2 of the Government Code, to read:

      PART 8.5.  LABOR AND WORKFORCE DEVELOPMENT AGENCY
      CHAPTER 1.  GENERAL PROVISIONS

   15550.  As used in this part, "agency" and "secretary" refer to
the Labor and Workforce Development Agency and the Secretary of Labor
and Workforce Development, respectively, unless the context
otherwise requires.
   15551.  (a) The Labor and Workforce Development Agency in state
government is under the supervision of an executive officer known as
the Secretary of Labor and Workforce Development.  The secretary
shall be appointed by the Governor, subject to confirmation by the
Senate, and shall hold office at the pleasure of the Governor.
   (b) The annual salary of the secretary is provided for by Chapter
6 (commencing with Section 11550) of Part 1.
   15552.  (a) The Governor shall appoint an Undersecretary of Labor
and Workforce Development and five assistant secretaries assigned to
programmatic areas, as determined by the Governor.
   (b) The undersecretary and the assistant secretaries shall serve
at the pleasure of the secretary.
   15553.  Before entering upon the duties of office, the secretary
shall execute an official bond to the state in the penal sum of fifty
thousand dollars ($50,000) conditioned upon the faithful performance
of those duties.

      CHAPTER 2.  DUTIES

   15554.  The secretary has the power of general supervision over,
and is directly responsible to the Governor for, the operations of
each department, office, and unit within the agency.  The secretary
may issue those orders as the secretary deems appropriate to exercise
any power or jurisdiction, or to assume or discharge any
responsibility, or to carry out or effect any of the purposes vested
by law in any department in the agency.  However,  except with
respect to the Workforce Investment Board,  nothing in this part
authorizes the secretary to exercise any power or jurisdiction,
assume or discharge any responsibility, or carry out or effect any of
the purposes vested by other provisions of law in any board,
commission, council, or other appointive multimember body that is
organizationally located within the Labor and Workforce Development
Agency or within any of its departments.
   15555.  The secretary shall advise the Governor on, and assist the
Governor in, establishing major policy and program matters affecting
each department, office, or other unit within the agency, and shall
serve as the principal communication link for the effective
transmission of policy problems and decisions between the Governor
and each department, office, or other unit.
   15556.  The secretary shall exercise the authority vested in the
Governor in respect to the functions of each department, office, or
other unit within the agency, including the adjudication of conflicts
between or among the departments, offices, or other units, and shall
represent the Governor in coordinating the activities of each
department, office, or other unit within the agency with those of
other agencies, whether federal, state, or local.
   15557.  The secretary shall be generally responsible for the sound
fiscal management of each department, office, or other unit within
the agency. The secretary shall review and approve the proposed
budget of each department, office, or other unit.  The secretary
shall hold the head of each department, office, or other unit
responsible for management control over the administrative, fiscal,
and program performance of his or her department, office, or other
unit.  The secretary shall review the operations and evaluate the
performance at appropriate intervals of each department, office, or
other unit, and shall seek continually to improve the organizational
structure, the operating policies, and the management information
systems of each department, office, or other unit.
   15558.  The secretary shall develop and report to the Governor on
legislative, budgetary, and administrative programs to accomplish
comprehensive, long-range, coordinated planning and policy
formulation in the matters of public interest related to the agency.
To accomplish this end, the secretary may hold public hearings,
consult with and use the services and cooperation of other state
agencies, employ staff and consultants, and appoint advisory and
technical committees to assist in the work.
   15559.  For the purpose of administration, the secretary shall
review the organization of the agency and report to the Governor on
changes necessary to segregate and conduct the work of the agency.
   15560.  The secretary and any other officer or employee within the
agency designated in writing by the secretary shall have the power
of a head of a department pursuant to Article 2 (commencing with
Section 11180) of Chapter 2 of Part 1.
   15561.  Whenever a power is granted to the secretary, the power
may be exercised by an officer or employee within the agency as
designated in writing by the secretary.
  SEC. 7.  Section 18.5 is added to the Labor Code, to read:
   18.5.  "Agency" means the Labor and Workforce Development Agency.

  SEC. 8.  Section 19.5 is added to the Labor Code, to read:
   19.5.  "Secretary" means the Secretary of Labor and Workforce
Development.
  SEC. 9.  Section 50 of the Labor Code is amended to read:
   50.  There is in the Labor and Workforce Development Agency the
Department of Industrial Relations.
  SEC. 10.  Section 1141 of the Labor Code is amended to read:
   1141.  (a) There is hereby created in the Labor and Workforce
Development Agency the Agricultural Labor Relations Board, which
shall consist of five members.
   (b) The members of the board shall be appointed by the Governor
with the advice and consent of the Senate.  The term of office of the
members shall be five years, and the terms shall be staggered at
one-year intervals.  Upon the initial appointment, one member shall
be appointed for a term ending January 1, 1977, one member shall be
appointed for a term ending January 1, 1978, one member shall be
appointed for a term ending January 1, 1979, one member shall be
appointed for a term ending January 1, 1980, and one member shall be
appointed for a term ending January 1, 1981.  Any individual
appointed to fill a vacancy of any member shall be appointed only for
the unexpired term of the member to whose term he or she is
succeeding.  The Governor shall designate one member to serve as
chairperson of the board.  Any member of the board may be removed by
the Governor, upon notice and hearing, for neglect of duty or
malfeasance in office, but for no other cause.
  SEC. 11.  Section 301 of the Unemployment Insurance Code is amended
to read:
   301.  There is in the Labor and Workforce Development Agency the
Employment Development Department, which is vested with the duties,
purposes, responsibilities, and jurisdiction heretofore exercised by
the State Department of Benefit Payments or the California Health and
Human Services Agency with respect to job creation activities.  The
Employment Development Department shall be administered by an
executive officer known as the Director of Employment Development who
is vested with the duties, purposes, responsibilities, and
jurisdiction heretofore exercised by the Director of Benefit Payments
with respect to the following functions:
   (a) Job creation activities.
   (b) Making manual computations and making or denying
recomputations of the amount and duration of benefits.
   (c) Determination of contribution rates and the administration and
collection of contributions, penalties and interest, 
including but not limited to   including, but not
limited to,  filing and releasing liens.
   (d) Establishment, administration, and transfer of reserve
accounts.
   (e) Making assessments and the administration of credits and
refunds.
   (f) Approving elections for coverage or for financing unemployment
and disability insurance coverage.
  SEC. 12.  Notwithstanding Section 11552 of the Government Code, the
person appointed and serving as the Director of Industrial Relations
as of January 1, 2003, shall retain the annual salary prescribed by
Section 11550 of the Government Code for the duration of his or her
term of office.