BILL ANALYSIS Ó SB 1308 Page 1 SENATE THIRD READING SB 1308 (Public Employment and Retirement Committee) As Amended August 21, 2012 Majority vote SENATE VOTE : 37-0 PUBLIC EMPLOYEES 5-0 ----------------------------------------------------------------- |Ayes:|Furutani, Mansoor, Allen, | | | | |Ma, Wieckowski | | | | | | | | ----------------------------------------------------------------- SUMMARY : Codifies the statutory changes that were put into effect upon passage of the Governor's Reorganization Plan 1 (GRP 1) which consolidates the Department of Personnel Administration (DPA) and the State Personnel Board (SPB) into a single agency to be known as the California Department of Human Resources (CalHR). Specifically, this bill : 1)Combines the day-to-day staff operations of the DPA and SPB organizations into a new, consolidated agency: CalHR, and will result in relocating the two former departments into a single location (ideally by July 1, 2013.). 2)Identifies a staff-reduction goal of 15% - 20% following consolidation, which will be achieved over approximately three years through attrition of existing staff in the two departments. 3)Specifies that the authority of the DPA director is transferred to the CalHR director, who will be appointed by the Governor and approved by the Senate. 4)Preserves the constitutionally created, five-member SPB and its constitutional role as an independent and objective merit oversight organization, and retains staff dedicated to the specific work of the SPB, including a board-appointed executive officer, an appeals division, and legal staff. SPB will have its own budget, which will not require approval by CalHR. 5)Transfers appeals of discrimination in state employment that are not based on violations of the merit principle to the SB 1308 Page 2 Department of Fair Employment and Housing (DFEH) (for example, general complaints of discrimination would go to DFEH; appeals of state examination results based on gender, race, or other protected factors would continue to be heard by SPB). These types of cases comprise fewer than 100 of the 2,500-2,800 cases heard by SPB annually. 6)Preserves intact some of the current operations and divisions within DPA, such as the labor-relations division and certain benefit programs, while combining other functions that overlap with current administration of SPB into two new divisions: the Personnel Management Division and the Statewide Services Division. 7)Includes mostly technical statutory changes, but also includes provisions allowing CalHR to establish disciplinary criteria applicable to adverse actions taken by appointing bodies, and stating that SPB, in arriving at a decision or proposed decision regarding an appeal on a disciplinary matter, shall give consideration and respect to the disciplinary criteria, as specified, consistent with its discretion and authority. EXISTING LAW : 1)Establishes, in the California Constitution, SPB and requires SPB to, among other things, enforce the civil service statutes, prescribe probationary periods and classifications, adopt rules authorized by statute, and review disciplinary actions and requires the executive officer of the SPB to administer the civil service statutes under the rules of SPB. 2)Establishes DPA for purposes of managing the nonmerit aspects of the state's personnel system. 3)Creates, through GRP 1, operative July 1, 2012, CalHR, which is vested with the duties, purposes, responsibilities, and jurisdiction exercised by SPB as its designee with respect to SPB's administrative and ministerial functions. 4)Abolishes, through GRP 1, DPA, and transfers the functions and duties performed by the DPA to CalHR. FISCAL EFFECT : Unknown. This bill is keyed non-fiscal by the Legislative Counsel. SB 1308 Page 3 COMMENTS : The Assembly Public Employees, Retirement and Social Security Committee is informed that GRP 1 eliminates certain functions of SPB relating to investigating and hearing complaints of discrimination in the civil service. The plan also authorizes CalHR to establish disciplinary criteria applicable to adverse actions taken by appointing bodies pursuant to causes of discipline for employees and individuals established pursuant to specified provisions of law. The plan requires SPB to give consideration and respect to any applicable disciplinary criteria established by CalHR in making certain decisions relating to disciplinary proceedings. According to the sponsor, DPA, "SB 1308 repeats the language in GRP 1 that the Little Hoover Commission and the Legislature review last year when they considered the reorganization plan. Following testimony from the Administration, employee representatives, and non-profit groups, the Little Hoover Commission and Senate Committees on Governmental Reorganization and Public Employment and Retirement recommended GRP 1 go into effect." DPA concludes that merging DPA and SPB into a single entity, CalHR, will result in the elimination of 60 positions (15% reduction) over the next two fiscal years and a savings of $8.6 million ($3.7 General Fund). A companion measure, SB 1309 (Negrete McLeod) of this year, makes numerous statutory changes necessary to implement the GRP 1. Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957 FN: 0004513