BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                  AB 1458|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                                 THIRD READING


          Bill No:  AB 1458
          Author:   Buchanan (D)
          Amended:  7/28/12 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORGANIZATION COMM. :  12-0, 7/02/12
          AYES:  Wright, Anderson, Berryhill, Cannella, Corbett, De 
            León, Evans, Hernandez, Padilla, Walters, Wyland, Yee
          NO VOTE RECORDED:  Calderon

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT :    California Transportation Commission

           SOURCE  :     Author


           DIGEST  :    This bill provides that notwithstanding the 
          Governors 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 bill (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; and (3) stipulates that this act shall 
                                                           CONTINUED





                                                               AB 1458
                                                                Page 
          2

          prevail over any provision of the GRP 2, regardless of the 
          dates on which this act and the GRP 2 take effect.   

           ANALYSIS  :    The CTC was established in 1978 by AB 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 
          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 

                                                           CONTINUED





                                                               AB 1458
                                                                Page 
          3

          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 
          agencies.  
           
          Background

          GRP 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. 
           
          GRP 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 
          CTC and the High-Speed Rail Authority, which are currently 
          stand-alone boards.  
              
          On May 22, 2012, the Little Hoover Commission released its 

                                                           CONTINUED





                                                               AB 1458
                                                                Page 
          4

          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 
          Governmental Organization Committee and the Senate 
          Governance and Finance Committee held a joint informational 
          hearing to review the plan in its entirety.  

          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 this bill  .  According to the author's office, AB 
          1458 is intended to preserve the functional independence of 
          the CTC.
           
          Related Legislation
          
           AB 1498 (Buchanan) modifies GRP 2 by making changes to 

                                                           CONTINUED





                                                               AB 1458
                                                                Page 
          5

          provisions related to reorganization of the California 
          Technology Agency and the new Government Operations Agency. 
           

          AB 1019 (Buchanan) modifies GRP 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 also deletes the provisions of the GRP that move the 
          Delta Stewardship Council under the jurisdiction of the 
          Natural Resources Agency.  

          AB 737 (Buchanan) modifies GRP 2 by re-establishing the 
          Boating and Waterways Commission within the Division of 
          Boating and Waterways under the Department of Parks and 
          Recreation. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No


          DLW:m  7/2/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

                                ****  END  ****
          

















                                                           CONTINUED