BILL ANALYSIS Appropriations Committee Fiscal Summary 1236 (Alarcon) Hearing Date: 5/13/02 Amended: 4/23/02 Consultant: Nora Lynn Policy Vote: G.O. 8-0 ____________________________________________________________ ___ BILL SUMMARY: SB 1236 legislatively implements the governor's Reorganization Plan #1 of 2002, which would create a Labor and Workforce Development Agency (LWDA) in state government consisting of the Department of Industrial Relations (DIR), the Employment Development Department, the Agricultural Labor Relations Board and the Workforce Development Board. The governor will appoint the the secretary of LWDA, subject to Senate confirmation. Additionally, SB 1236 reduces the annual salary of the director of DIR from $91,054 to $85,402. Fiscal Impact (in thousands) Major Provisions 2002-03 2003-04 2004-05 Fund Labor Agency ------ Up to $2 million annually ------Specials* *Reallocation of special funds STAFF COMMENTS: This bill meets the criteria to be placed on the Suspense file. The LWDA will be directed by a secretary of cabinet-level status, assisted by an undersecretary and five assistant secretaries. SB 1236 states legislative intent that funding for the new agency be achieved from the reallocation of existing resources from the various entities that will form the new agency. This bill is similar to SB 25 (Alarcon) which was vetoed last year. The governor's Reorganization Plan #1 is slated to be heard in Senate Rules Committee May 15, 2002.