BILL ANALYSIS
SB 1236
Page 1
SENATE THIRD READING
SB 1236 (Alarcon)
As Amended June 13, 2002
Majority vote
SENATE VOTE :22-12
LABOR AND EMPLOYMENT 6-1 APPROPRIATIONS 16-6
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|Ayes:|Koretz, Negrete McLeod, |Ayes:|Steinberg, Alquist, |
| |Chu, Havice, Migden, | |Aroner, Cohn, Corbett, |
| |Shelley | |Correa, Diaz, Firebaugh, |
| | | |Goldberg, Negrete McLeod, |
| | | | |
| | | |Papan, Pavley, Simitian, |
| | | |Washington, Wiggins, |
| | | |Wright |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Wyland |Nays:|Bates, Ashburn, Daucher, |
| | | |Robert Pacheco, Runner, |
| | | |Zettel |
| | | | |
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SUMMARY : Implements the Governor's Reorganization Plan No. 1 of
2002, which creates a Labor and Workforce Development Agency
(Agency) in state government and creates a Secretary of Labor
and Workforce Development (Secretary). Specifically this bill :
1)Creates an Agency in state government, consisting of the
Department of Industrial Relations (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.
SB 1236
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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)Provides that funding for the new Agency be achieved from
reallocation of existing resources except that no funds shall
be provided by the ALRB. Specifies that no appropriation of
new General Fund monies will be permitted to implement this
bill.
6)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 :
1)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.
2)DIR, which is a cabinet-level department, not affiliated with
an agency, and is the primary labor-related department in
state government.
3)Provides for 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.
4)Provides for ALRB, which is not affiliated with a state
agency. Provides for, administration by ALRB, of the
Agricultural Labor Relations Act.
5)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: According to the Assembly Appropriations
committee analysis, the bill would result in annual General and
special fund costs of up to $2 million. The bill states that
SB 1236
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funding for the new Agency shall be achieved by redirecting
resources from existing departments, except that no funds shall
be provided by ALRB.
COMMENTS : 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. This year the Governor authored GRP No.
1, to create the new Labor and Workforce Development Agency,
which went into effect, pursuant to existing law, on July 1,
2002.
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.
Prior legislation, SB 25 (Alarcon) of the 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."
Analysis Prepared by : Liberty Sanchez / L. & E. / (916)
319-2091 FN: 0006848