BILL NUMBER: SB 1236	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 13, 2002
	AMENDED IN SENATE  MAY 14, 2002
	AMENDED IN SENATE  APRIL 23, 2002
	AMENDED IN SENATE  APRIL 1, 2002
	AMENDED IN SENATE  MARCH 21, 2002

INTRODUCED BY   Senator Alarcon
    (Coauthor:  Assembly Member Alquist) 

                        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 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.  The bill would  declare the
intent of the Legislature   specify  that funding
for the new agency be achieved from reallocation of existing
resources currently allocated to the various entities that would form
the agency,  except   but would provide 
that no funds  shall   may  be provided by
the Agricultural  Labor  Relations Board.   It would
also specify that no appropriation of new General Fund moneys would
be permitted to implement the bill. 
   (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.  It is in the public interest to create a Labor and
Workforce Development Agency, and to appoint a secretary and other
officers of this agency, because the creation of this agency,
appointment of these officers, and the corresponding reorganization
of other agencies, will do all of the following:
   (a) Simplify, strengthen, and improve the operation and management
of programs that protect and provide services to California's
workers and employers.
   (b) Eliminate duplication, achieve cost efficiencies, and promote
accountability and program access.
   (c) Allow the state to marshal its resources to systematically
match worker training programs with regional labor market needs to
create skilled, middle-class jobs that offer a secure future to
Californians.
   (d) Create a primary point of accountability for the
administration and the Legislature to measure the success and the
needs of the workforce investment system.
   (e) Ensure that there is a cabinet-level voice for
workforce-related issues raised for the Governor's consideration and
decision.
   (f) More closely coordinate enforcement activities so the
Employment Development Department can capture lost revenue from the
underground economy while the Department of Industrial Relations
protects workers exploited in the underground economy.
   (g) Coordinate and manage information and data on the workforce
and economy with a partnership between the Department of Industrial
Relations Division of Labor Statistics and Research and the
Employment Development Department Labor Market Information Division.

   (h) Build on the successful One-Stop Taxpayer Service Centers
operated by the Employment Development Department, the Franchise Tax
Board, and the Board of Equalization by adding services for employers
and workers, including information on workers' compensation, labor
standards, safe working conditions, and job training opportunities.
   (i) Consolidate service points throughout California for the
Employment Development Department, Department of Industrial
Relations, and the Agricultural Labor Relations Board.
   (j) Coordinate the apprenticeship programs in the Department of
Industrial Relations with the employment and training programs at the
Employment Development Department to meet the growing need and
demand for skilled trade and craft workers.
   (k) Strengthen protection for sick or injured California workers
by closer cooperation between the disability insurance program at
 the  Employment Development Department and the workers'
compensation program at  the  Department of Industrial
Relations.
  SEC. 2.  (a) It is the intent of the Legislature in enacting this
act that the reorganization plan provided for in this act does not
transfer any functions to or from the Agricultural Labor Relations
Board, the California Workforce Investment Board, California
Apprenticeship Council, California Occupational Safety and Health
Appeals Board, Occupational Safety and Health Standards Board,
Commission on Health and Safety and Workers' Compensation, Industrial
Medical Council, Industrial Welfare Commission, Workers'
Compensation Appeals Board, State Compensation Insurance Fund,
Employment Development Department, California Unemployment Insurance
Appeals Board, and Employment Training Panel.
   (b) It is the intent of the Legislature in enacting this act that,
in order to effectuate the reorganization plan provided for in this
act, and pursuant to subdivisions (c), (d), and (e) of Section
12080.3 of the Government Code, all of the following related to any
governmental entity that become a part of the Labor and Workforce
Development Agency as a result of this plan shall be transferred to,
and be under the jurisdiction of, the Labor and Workforce Development
Agency:
   (1) State civil service employees.
   (2) Personnel records and property.
   (3) Unexpended balances of appropriations and of other funds
available for use.  
   (c) It is the intent of the Legislature in enacting this act that
funding for the new agency be achieved through reallocation of
existing resources currently allocated to the various entities that
would form the agency, except that no funds would be provided by the
Agricultural Relations Board.
   (d) It is the intent of the Legislature in enacting this act that
no new expenditure of General Fund moneys be provided under this act.

  SEC. 3.  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 Health and Human Services.
   (e) Secretary of State and Consumer Services.
   (f) Commissioner of the California Highway Patrol.
   (g) Secretary of the 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. 4.  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) State 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. 5.  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. 6.  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. 7.  Section 12813 is added to the Government Code, to read:
   12813.  The Labor and Workforce Development Agency consists of the
following:
   (a) Office of the Secretary of Labor and Workforce Development.
   (b) Agricultural Labor Relations Board.
   (c) California Workforce Investment Board.
   (d) Department of Industrial Relations, including the California
Apprenticeship Council, California Occupational Safety and Health
Appeals Board, California Occupational Safety and Health Standards
Board, Commission on Health and Safety and Workers' Compensation,
Industrial Medical Council, Industrial Welfare Commission, State
Compensation Insurance Fund, and Workers' Compensation Appeals Board.

   (e) Employment Development Department, including the California
Unemployment Insurance Appeals Board, and the Employment Training
Panel.
  SEC. 8.  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.  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.
   15552.  The Governor may appoint two deputies, subject to
confirmation by the Senate, to assist the secretary.  These officers
shall serve at the pleasure of the secretary.
   15553.  Any entity within the Labor and Workforce Development
Agency may share information for research, enforcement, or training
with any other entity in the agency without a confidentiality
agreement, except as the secretary may require.

      CHAPTER 2.  POWERS AND 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, or assume or
discharge any responsibility related to the administration of the
state Compensation Insurance Fund, or to investigation, adjudication,
rulemaking, or legal representation that is vested by other
provisions of law exclusively 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.  Other duties of the secretary include, but are not limited
to, reviewing personnel management, acting as public advisor and
providing public information in connection with all functions of the
agency, overseeing the implementation of the workforce investment
system to ensure that it better responds to the employment, training,
and education needs of its customers, and consolidating service
points and One-Stop Taxpayer Service Centers for employers and
workers by adding services that are within the agency's authority.
   15559.  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.
   15560.  For the purpose of administration, the secretary shall
organize the agency, subject to the approval of the Governor, in the
manner he or she deems necessary to segregate and conduct the work of
the agency.  The secretary may require any department, office, or
unit to assist in enforcing any law within the jurisdiction of the
agency, except as provided in Section 15554.
   15561.  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.
   15562.  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. 9.  Section 18.5 is added to the Labor Code, to read:
   18.5.  "Agency" means the Labor and Workforce Development Agency.

  SEC. 10.  Section 19.5 is added to the Labor Code, to read:
   19.5.  "Secretary" means the Secretary of Labor and Workforce
Development.
  SEC. 11.  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. 12.  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. 13.  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 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. 14.  Notwithstanding Section 11552 of the Government Code, as
amended by Section 4 of this act, the person appointed and serving as
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.  
  SEC. 15.  (a) Funding for the Labor and Workforce Development
Agency shall be achieved through reallocation of existing resources
currently allocated to the various entities that would form the
agency, except that no funds may be provided by the Agricultural
Labor Relations Board.
   (b) No new General Fund moneys may be appropriated to implement
this act.