BILL ANALYSIS Ó Bill No: AB 1458 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2011-2012 Regular Session Staff Analysis AB 1458 Author: Buchanan As Amended: June 28, 2012 Hearing Date: July 2, 2012 Consultant: Art Terzakis SUBJECT California Transportation Commission DESCRIPTION AB 1458 provides that notwithstanding the Governor's Reorganization Plan No. 2 of 2012 (GRP 2), the California Transportation Commission (CTC) shall retain independent authority to perform its duties as prescribed under law. Specifically, this measure: 1.Makes it explicit that the CTC will retain its independent authority to perform its duties as prescribed under law regardless of the fact that the GRP 2 places the CTC in the Transportation Agency under the authority of the Transportation Secretary. 2.Provides that this act shall become operative on 07/01/2013 and only if the GRP 2 becomes effective. 3.Stipulates that this act shall prevail over any provision of the GRP 2, regardless of the dates on which this act and the GRP 2 take effect. EXISTING LAW The CTC was established in 1978 by Assembly Bill 402 (Chapter 1106, Statutes of 1977) out of a growing concern for the development of a unified California transportation policy. The CTC replaced and assumed the responsibilities of four independent bodies: the California Highway AB 1458 (Buchanan) continued Page 2 Commission, the State Transportation Board, the State Aeronautics Board, and the California Toll Bridge Authority. The CTC is responsible for the programming and allocating of funds for the implementation of highway, passenger rail and transit improvements throughout California. In addition, the CTC advises and assists the administration and the Legislature in formulating and evaluating policies and plans for California's transportation programs. The CTC consists of eleven voting members and two non-voting ex-officio members. Of the eleven voting members, nine are appointed by the Governor, one is appointed by the Senate Committee on Rules, and one is appointed by the Speaker of the Assembly. The two ex-officio non-voting members are appointed from the State Senate and Assembly, usually the respective chairs of the transportation policy committee in each house. The CTC is also an active participant in the initiation and development of State and Federal legislation that seeks to secure financial stability for the State's transportation needs. GRP 2 proposes to change the CTC from being constituted "in the state government," a relatively independent place from which to comment on and collaborate with the administration, to being within the newly created Transportation Agency under the authority of the Transportation Secretary. The California Constitution authorizes the Legislature to delegate to the Governor the authority to assign and reorganize functions among executive branch officers, agencies and their employees. The Governor's authority to reorganize does not extend to other constitutional offices (California Constitution, Article V, Section 6). Existing law specifies the process for reorganization and places limits on that authority. Additionally, existing law specifies the purposes of the Governor's reorganization authority, in the form of a GRP is to enable the Governor to promote improved strategies for: executing the law; managing state government; reducing expenditures; increasing efficiency; improving coordination among agencies and functions; reducing the number of agencies; and, eliminating duplication and overlap among AB 1458 (Buchanan) continued Page 3 agencies. BACKGROUND Governor's Reorganization Plan Process: As stipulated in the Government Code, the Governor is required to submit any reorganization plan to the Milton Marks Commission on California State Government Organization and Economy ("Little Hoover Commission") at least 30 days prior to submitting the plan to the Legislature. The Little Hoover Commission's role in the reorganization process is only advisory - it reviews and submits a report to the Governor and the Legislature within 30 days of the Plan being submitted to the Legislature. Existing law also provides that any GRP becomes law after 60 days unless either House of the Legislature adopts a resolution rejecting the proposal. Governor's Reorganization Plan No. 2: GRP 2 (introduced May 3, 2012) would create three new agencies by relocating departments in three existing agencies with the goal of grouping like functions more closely together, reducing the number of agencies from 12 to 10 overall. It also would make a series of other moves. The Transportation Agency is one of the new agencies that would be created by GRP 2 and would include the following entities formerly housed within the Business, Transportation and Housing Agency: the Department of Transportation, the Department of Motor Vehicles, the California Highway Patrol, the Board of Pilot Commissioners and the California Traffic Safety Program. Along with those entities, the Transportation Agency would pull in the California Transportation Commission and the High-Speed Rail Authority, which are currently stand-alone boards. On May 22, 2012, the Little Hoover Commission released its report of GRP 2 and recommended that the Plan be allowed to go into effect. The deadline for a Legislative resolution affirmatively disapproving GRP 2 is July 2, 2012. If the Legislature takes no action, GRP 2 becomes effective on July 3, 2012 and operative on July 1, 2013. Joint Hearing of GRP 2: On May 23, 2012, the Senate Committee on Governmental Organization and the Senate Governance and Finance Committee held a joint informational hearing to review the plan in its entirety. AB 1458 (Buchanan) continued Page 4 As noted above, the CTC was established in 1978 to provide a unified state transportation policy. The CTC is responsible for the programming and allocating of funds for the implementation of highway, passenger rail and transit improvements throughout California. In addition, the CTC advises and assists the administration and the Legislature in formulating and evaluating policies and plans for California's transportation programs. The Governor's proposal to eliminate the independence of the CTC by placing it under the jurisdiction of the Secretary of the Transportation Agency was discussed thoroughly during the joint hearing. Concern was raised that moving the CTC within the agency may effectively make it little more than a redundant department that no longer provides much real benefit to the state. Members were unclear what value the CTC would continue to contribute should it become part of the administration, or how critical it could be of proposals or policies which originate from the new agency. Also, stakeholders argued that the GRP could have the effect of diminishing the oversight and transparency that is currently afforded by the CTC for California's transportation planning and expenditures. Purpose of AB 1458: According to the author's office, AB 1458 is intended to preserve the functional independence of the CTC. RELATED LEGISLATION AB 1498 (Buchanan) 2011-12 Session. Would modify the Governor's Reorganization Plan No. 2 by making changes to provisions related to reorganization of the California Technology Agency and the new Government Operations Agency. (Pending in this committee) AB 1019 (Buchanan) 2011-12 Session. Would modify the Governor's Reorganization Plan No. 2, as specified, by making changes to provisions related to reorganization of the Sixth District Agricultural Association which consists of the California African American Museum, the California Science Center, and Exposition Park, all in Los Angeles. It would also delete the provisions of the GRP that move the Delta Stewardship Council under the jurisdiction of the Natural Resources Agency. (Pending in this committee) AB 1458 (Buchanan) continued Page 5 AB 737 (Buchanan) 2011-12 Session. Would modify the Governor's Reorganization Plan No. 2 by re-establishing the Boating and Waterways Commission within the Division of Boating and Waterways under the Department of Parks and Recreation. (Pending in this committee) SUPPORT: None on File as of June 29, 2012. OPPOSE: None on File as of June 29, 2012. FISCAL COMMITTEE: Senate Appropriations Committee **********