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  




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            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  




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          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




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                                    Employees

           OPPOSE:       None registered as of 4/12/02

           FISCAL COMMITTEE:   Senate Appropriations


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          SMH:bkh