BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 1039
Author: Steinberg (D)
Amended: 7/2/12
Vote: 21
PRIOR SENATE VOTES NOT RELEVANT
SENATE GOV. ORG. COMM. : 7-2, 7/2/12 - Ý29.10 HEARING]
AYES: Wright, Calderon, Corbett, De León, Evans,
Hernandez, Yee
NOES: Berryhill, Walters
NO VOTE RECORDED: Anderson, Cannella, Padilla, Wyland
ASSEMBLY FLOOR : 52-26, 7/2/12 - See last page for vote
SUBJECT : Business, Consumer Services, and Housing Agency
SOURCE : Author
DIGEST : This bill modifies the Governors Reorganization
Plan No. 2 (GRP 2) by changing the name of the Business and
Consumer Services Agency to the Business, Consumer
Services, and Housing Agency, and requiring the Department
of Housing and Community Development (HCD), the Department
of Transportation (Caltrans), and the California
Transportation Commission (CTC) to coordinate state housing
and transportation policies and programs to help achieve
state and regional planning priorities and to maximize
co-benefits of infrastructure investments.
CONTINUED
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Assembly Amendments delete the Senate version of the bill,
which expressed legislative intent to enact changes
relative to the Budget Act of 2012, and instead add the
current language.
ANALYSIS : Existing law provides for the State and
Consumer Services Agency within the executive branch of
government consisting of the Department of General
Services, the Department of Consumer Affairs, the Franchise
Tax Board, the Public Employees' Retirement System, the
State Teacher's Retirement System, the Department of Fair
Employment and Housing, the Fair Employment and Housing
Commission, the California Science Center, the California
Victim Compensation and Government Claims Board, the
California African-American Museum, the California Building
Standards Commission, the Alfred E. Alquist Seismic Safety
Commission, and the Office of Privacy Protection.
The HCD is a department currently within the Business,
Transportation and Housing Agency that develops housing
policy and building codes, regulates manufactured homes and
mobile home parks, and administers housing finance,
economic development and community development programs.
The California Housing Finance Agency (CalHFA) is a
California state agency within the Business, Transportation
and Housing Agency that makes low-rate loans through the
sale of taxable and tax exempt bonds. CalHFA provides
assistance in below-market interest rate mortgages and down
payment assistance for first-time homebuyers, insurance for
single-family home purchase mortgages, and loans for the
development of multifamily rental housing. The operating
costs of the agency are paid by origination and service
fees, and the difference between the interest paid on
outstanding debt and the interest charged on the loans
made.
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
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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.
This bill:
1. Renames the Business and Consumer Services Agency as the
Business, Consumer Services, and Housing Agency.
2. Requires HCD, Caltrans, and CTC to coordinate state
housing and transportation policies and programs to help
achieve state and regional planning priorities and to
maximize co-benefits of infrastructure investments.
3. Stipulates that the provisions of this act shall prevail
over specified provisions of GRP 2 regardless of the
dates on which this act and GRP 2 take effect.
4. Provides that this act shall become operative only if
GRP 2 becomes effective and makes it explicit that the
provisions of this act shall become operative on July 1,
2013.
Background
GRP Process . As stipulated in Government Code Section
12080 et seq., 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
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proposal.
GRP 2 (2012) . 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 and reducing the number of agencies
from 12 to 10 overall. It would also make a series of
other moves, as specified. With respect to the existing
State and Consumer Services Agency, GRP 2 would eliminate
the agency and create the new Business and Consumer
Services Agency consisting of business-related departments
currently in the Business, Transportation and Housing
Agency along with consumer-related departments currently
within the State and Consumer Services Agency. The make-up
of the new Business and Consumer Services Agency would be
as follows: Department of Consumer Affairs, Department of
Fair Employment and Housing, Department of Business
Oversight, Department of Housing and Community Development,
Department of Alcoholic Beverage Control, Alcoholic
Beverage Control Appeals Board, California Horse Racing
Board, and Alfred E. Alquist Seismic Safety Commission.
Furthermore, the California Housing Finance Agency would be
transferred into the HCD - thus, it will no longer be
separate and distinct.
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.
Comments
Purpose of this bill . On May 23, 2012, the Senate
Governmental Organization Committee and the Senate
Governance and Finance Committee held a joint informational
hearing to review GRP 2 in its entirety.
One of the concerns raised with respect to GRP 2 was the
perception of a lack of representation of housing issues
within the new Business and Consumer Services Agency.
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According to the author's office, this measure simply
includes "housing" within the title of the new agency to
highlight its importance and the Legislature's on-going
commitment to the importance of ensuring affordable housing
throughout the state.
Additionally, the author's office points out that as
transportation and housing decisions are increasingly
linked in regional planning, it is crucial to give
direction to the agencies to maintain cooperative
discussions. Thus, this bill requires the HCD, Caltrans,
and CTC to coordinate state housing and transportation
policies to further that goal.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 52-26, 07/02/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Block, Blumenfield, Bonilla, Bradford, Brownley,
Buchanan, Butler, Charles Calderon, Campos, Carter,
Cedillo, Chesbro, Davis, Dickinson, Eng, Feuer, Fong,
Fuentes, Furutani, Galgiani, Gatto, Gordon, Hall,
Hayashi, Hill, Huber, Hueso, Huffman, Lara, Bonnie
Lowenthal, Ma, Mendoza, Mitchell, Monning, Pan, Perea, V.
Manuel Pérez, Portantino, Skinner, Solorio, Swanson,
Torres, Wieckowski, Williams, Yamada, John A. Pérez
NOES: Bill Berryhill, Conway, Cook, Donnelly, Fletcher,
Beth Gaines, Garrick, Grove, Hagman, Halderman, Harkey,
Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell,
Nestande, Nielsen, Norby, Olsen, Silva, Smyth, Valadao,
Wagner
NO VOTE RECORDED: Gorell, Roger Hernández
JJA:m1 7/3/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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