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 




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          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 




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          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.  





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          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)




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          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
                                        
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