BILL ANALYSIS
SB 1236
Page 1
Date of Hearing: June 26, 2002
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Paul Koretz, Chair
SB 1236 (Alarcon) - As Amended: June 13, 2002
SENATE VOTE : 22 - 12
SUBJECT : Labor and Workforce Development Agency.
SUMMARY : This bill implements the Governor's Reorganization Plan
No. 1 of 2002, which creates a Labor and Workforce Development
Agency (Agency) in state government, creates a Secretary of
Labor and Workforce Development (Secretary), who shall receive
an annual salary of $91, 054, as adjusted, and provides that the
Director of the State Department of Industrial Relations (DIR)
shall, after January 1, 2003, receive an annual salary of
$85,402, as adjusted, instead of $91,054, as adjusted.
Specifically this bill :
1)Creates an Agency in state government, consisting of the DIR,
the Employment Development Department (EDD), the Agricultural
Labor Relations Board (ALRB) and the Workforce Investment
Board (WIB).
2)Specifies that the Agency will be under the supervision of an
executive officer known as the Secretary, to be appointed by
the Governor, subject to confirmation of the Senate, and to
hold office at the pleasure of the Governor, as specified.
3)Specifies that the Secretary shall receive an annual salary of
$91,054, as adjusted by increases comparable to, but not in
excess of, the percentage of the general salary increases
provided for state employees.
4)Authorizes the Governor to appoint two deputies, to assist the
Secretary. These deputies must be confirmed by the Senate and
will serve at the pleasure of the Agency Secretary.
5)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.
6)Limits, as specified, power of the Secretary with respect to
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purposes vested by law in any board, commission, council or
other appointive multimember body within this Agency or any of
its departments as described.
7)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 ALRB.
8)Specifies that no appropriation of new General Fund monies
will be permitted to implement this bill.
9)Provides for the director of DIR, after January 1, 2003, to
receive an annual salary of $85,402, as adjusted by increases
comparable to, but not in excess of, the percentage of the
general salary increases provided for state employees.
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.
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.
Provides for the State Department of Employment Development
(EDD) which 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.
The Agricultural Labor Relations Board (ALRB) is not affiliated
with a state agency. The ALRB administers the Agricultural
Labor Relations Act.
Provides that the Director of DIR shall receive an annual salary
of $91,054, as adjusted by increases comparable to, but not in
excess of, the percentage of the general salary increases
provided for state employees. The base salary of $91,054 was
instituted in 1988. The Director currently receives an annual
salary of $126,358.
FISCAL EFFECT : Unknown
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COMMENTS :
Background:
State law provides for the Governor to examine the organization
of state government and determine what changes are necessary to,
among other purposes, promote the better execution of the laws,
reduce expenditures, increase efficiency, reduce the number of
agencies, and to eliminate overlapping and duplication of
effort.
State law also provides for review and reporting protocol by the
Legislature and the Little Hoover Commission when the Governor
makes such a determination.
This year the Governor has authored GRP No. 1, to create the new
Labor and Workforce Development Agency. The Little Hoover
Commission, and policy committees in both houses of the
Legislature, have reviewed and reported on the GRP, and have
recommended that it take effect, pursuant to existing law, on
July 1, 2002.
SB 1236 (Alarcon), would implement the GRP No. 1.
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. While the Director of DIR
serves as the "de facto" labor secretary, no policy coordination
exists among agencies that benefits the Governor, labor,
community organizations, or workers themselves.
The sponsor, California Labor Federation, AFL-CIO believes 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
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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.
Prior Legislation: SB 25 (Alarcon) - 2001-02 Session, similar
to this bill, was 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. I believe that the
Department of Industrial Relations and the Employment
Development Department could provide better service by
being combined within a single entity. More review,
however is necessary to determine what other components of
the state, if any, should be organized in this fashion. I
have asked my Director of the Department of Industrial
Relations to work with the appropriate people and to make a
recommendation to me by the end of the year."
REGISTERED SUPPORT / OPPOSITION :
Support
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
Opposition
None on file.
Analysis Prepared by : Liberty Sanchez / L. & E. / (916)
319-2091