BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1236| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 1236 Page 2 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 SB 1236 Page 3 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 SB 1236 Page 4 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. SB 1236 Page 5 TSM:cm 6/18/02 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****