BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary

                                    1236 (Alarcon)

          Hearing Date:  5/23/02          Amended: 5/14/02       
          Consultant:  Nora Lynn          Policy Vote: G.O.  8-0 
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          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:  
          
          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.