BILL ANALYSIS
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|SENATE COMMITTEE ON RULES | 2001-2002 Regular |
| |Session |
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SENATOR JOHN BURTON, CHAIRMAN
_____________________staff analysis
Fiscal: Yes
Hearing: 06/05/02
Urgency: No
BILL NO: SB 1236
AUTHOR: Alarcon
AMENDED: May 14, 2002
SUBJECT : Labor and Workforce Development Agency.
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 Investment Board.
The governor will appoint the secretary of LWDA, subject to
Senate confirmation.
The reorganization plan was submitted to the Little Hoover
Commission for review and introduced in the Legislature on
May 2, 2002, as Governor's Reorganization Plan No. 1 (GRP
1).
As amended on May 14, 2002, SB 1236 differs from the GRP 1
as follows:
1. States the intent of the Legislature 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 shall be
provided by the Agricultural Relations Board and that no
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new expenditure of General Fund moneys be provided under
this act.
2. Allows the Governor to appointment two deputies,
subject to confirmation by the Senate.
3. Provides for the salary of the Agency Secretary and
allows the current Director of Industrial Relations to
retain his salary for the duration of his term. (The
Governor's Reorganization Plan 1 makes no provision for the
salaries of the Secretary or the Director.)
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.
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
policy coordination exists among agencies that benefits the
Governor, labor, community organizations, or workers
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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 of 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.
FISCAL EFFECT :
The May Revise provides $1.8 million (all funds) for the
agency. The Senate Budget Subcommittee #3 reduced this
amount by half, and makes the plan fiscally effective on
January 1, 2002, to coincide with SB 1236.
SB 1236 legislatively implements GRP 1 and, as such, has no
fiscal effect. If GRP 1 is rejected by the Legislature, SB
1236 will not proceed.
PRIOR LEGISLATION :
SB 25 (Alarcon) 2001 Session. Similar to this legislation.
SB 1236
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STATUS: (Vetoed by Governor)
SB 150 (Solis) 2000 Session. Similar to this legislation.
STATUS: (Held in Assembly Appropriations Committee)
SUPPORT :
California Labor Federation, AFL-CIO
California Professional Firefighters
California School Employees Association
American Federation of State, County, and Municipal
OPPOSE : None received.
SENATE RULES COMMITTEE: Sandy Kenyon/323-8897
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