BILL ANALYSIS Bill No: SB 1236 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Edward Vincent, Chair 2001-2002 Regular Session Staff Analysis SB 1236 Author: Alarcon As Amended: April 1, 2002 Hearing Date: April 16, 2002 Consultant: Steve Hardy SUBJECT State Labor Agency DESCRIPTION SB 1236 legislatively implements the Governor's Reorganization Plan #1 of 2002, which would create a Labor and Workforce Development Agency in state government. The agency would consist of the Department of Industrial Relations, the Employment Development Department, the Agricultural Labor Relations Board, and the Workforce Development Board as follows: 1. Creates this new Agency in state government under the supervision of an executive officer known as the Secretary of the Labor and Workforce Agency, to be appointed by the Governor, subject to confirmation of the Senate, and to hold office at the pleasure of the Governor as specified. 2. Requires the Governor to appoint an undersecretary of this agency and 5 assistant secretaries assigned to programmatic areas as determined by the Governor. These positions will serve at the pleasure of the Agency Secretary. 3. Defines the powers and duties of the Secretary, including the power of general supervision over, and direct responsibility to the Governor, for the operations of each department, office, and unit within the Agency. Limits, as specified, power of the Secretary with respect SB 1236 (Alarcon) continued Page 2 to purposes vested by law in any board, commission, council or other appointive multimember body within this Agency or any of its departments as described. PRIOR LEGISLATION SB 25 (Alarcon) 2001 Session. Similar to this legislation. (Vetoed by Governor) SB 150 (Solis) 2000 Session. Similar to this legislation. (Held in Assembly Appropriations Committee) EXISTING LAW Existing law provides for the following state agencies: State and Consumer Services; Business, Transportation, and Housing; California Environmental Protection; California Health and Human Services; Resources; and Youth and Adult Correctional. Existing law provides for the Department of Industrial Relations (DIR) which is a cabinet-level department, not affiliated with an agency, and is the primary labor-related department in state government. Under existing law, the Employment Development Department (EDD) is part of the Health and Welfare Agency. The EDD administers the Unemployment Insurance and Disability Insurance programs, the Job Service, and numerous Job Training programs. Under existing law, the Agricultural Labor Relations Board (ALRB) is not affiliated with a state agency. The ALRB administers the Agricultural Labor Relations Act. BACKGROUND The author states that California is the only industrialized state without a cabinet level labor agency modeled after the federal scheme. Currently there is no programmatic coordination of labor-related agencies in state government. While the Director of Industrial Relations is currently designated as a cabinet member, no SB 1236 (Alarcon) continued Page 3 policy coordination exists among agencies that benefits the Governor, labor, community organizations, or workers themselves. The author is carrying this measure on behalf of the California Labor Federation, AFL-CIO. The sponsor and supporters believe that creation of this Agency has long been needed to represent the diverse workforce in California, and have identified a number of benefits from this reorganization including the following: a) The coordination and oversight of all the various relationships between the worker, his/her employer, and the workplace. b) The provision of a cohesive, coordinated strategy to prepare California's workers for the future, and ensuring a safe, healthy, and non-discriminatory workplace. c) The integration of California's social safety net with employment programs to reduce dependence on welfare and social insurance, and to ensure dignity and the highest possible living standard to the disabled, dislocated, and otherwise needy. d) To ensure a highly skilled, safe and healthy workforce, responsive to the needs of employers, thus securing California's position in the global economy. In vetoing a similar measure, SB 25 (Alarcon) last session, the Governor stated that "the working men and women of California and our economy would benefit from a more coordinated effort by the various state departments charged with ensuring a well-trained, healthy, safe and prosperous workforce." The Governor asked his Director of the Department of Industrial Relations to work with appropriate parties, and then make a recommendation to him by the end of last year. SUPPORT: California Labor Federation, AFL-CIO (Sponsor) California Professional Firefighters California School Employees Association American Federation of State, County, and Municipal SB 1236 (Alarcon) continued Page 4 Employees OPPOSE: None registered as of 4/12/02 FISCAL COMMITTEE: Senate Appropriations ********** SMH:bkh