BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  SB 1236|
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                                 THIRD READING


          Bill No:  SB 1236
          Author:   Alarcon (D), et al
          Amended:  6/13/02
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  8-0, 4/16/02
          AYES:  Vincent, Johnson, Chesbro, Dunn, Karnette, Machado,  
            Perata, Soto

           SENATE APPROPRIATIONS COMMITTEE  :  9-4, 5/23/02
          AYES:  Alpert, Bowen, Burton, Escutia, Johnson, Karnette,  
            Murray, Perata, Speier
          NOES:  Battin, Johannessen, McPherson, Poochigian

           SENATE RULES COMMITTEE  :  4-0, 6/5/02
          AYES:  Karnette, Knight, Johnson, Burton

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Labor and Workforce Development Agency

           SOURCE  :     California Labor Federation, AFL-CIO


           DIGEST  :    This bill implements the Governors  
          Reorganization Plan #1 of 2002, which created a Labor and  
          Workforce Development Agency in state government.  The  
          Labor and Workforce Development Agency is to consist of the  
          State Department of Industrial Relations, the State  
          Department of Employment Development, the Agricultural  
          Labor Relations Board, and the Workforce Development Board,  
          as specified.  This bill also provides that the Director of  
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          the State Department of Industrial Relations shall receive  
          an annual salary of $85,402 instead of $91,054.

           ANALYSIS  :    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 State 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 State Department of Employment  
          Development (EDD) is part of the Health and Welfare Agency.  
           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.

          This bill:

          1.Creates the Labor and Workforce Development Agency  
            (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 five 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.

          4.Provides that funding for the new agency be achieved from  
            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.

          5.Specifies that no appropriation of new General Fund  
            monies will be permitted to implement this bill.

          Existing law provides for the Director of DIR to receive an  
          annual salary of $91,054.

          This bill, instead, provides for the director to receive an  
          annual salary of $85,402, as adjusted.

           Prior/Related Legislation
           
           SB 25 (Alarcon) - 2001-02 Session  .  Similar to this bill.   
          Passed the Senate with a vote of 24-14 on September 12,  
          2001, but was ultimately vetoed by the Governor.  In his  
          veto message, 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  
          DIR to work with appropriate parties, and then make a  
          recommendation to him by the end of last year.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

                          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







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          SUPPORT :   (Verified  6/18/02)

          California Labor Federation, AFL-CIO  (source)
          California Professional Firefighters
          California School Employees Association
          American Federation of State, County, and Municipal  
          Employees
          United Steel Workers of America

           ARGUMENTS IN SUPPORT  :    The author's office 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 DIR is currently designated as a cabinet  
          member, no policy coordination exists among agencies that  
          benefits the Governor, labor, community organizations, or  
          workers themselves.

          The author is carrying this bill 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:

          1.The coordination and oversight of all the various  
            relationships between the worker, his/her employer, and  
            the workplace.

          2.The provision of a cohesive, coordinated strategy to  
            prepare California's workers for the future, and ensuring  
            a safe, healthy, and non-discriminatory workplace.

          3.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.

          4.To ensure a highly skilled, safe and healthy workforce,  
            responsive to the needs of employers, thus securing  
            California's position in the global economy.







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          TSM:cm  6/18/02   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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