BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1309|
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                                 THIRD READING


          Bill No:  SB 1309
          Author:   Negrete McLeod (D)
          Amended:  As introduced
          Vote:     21

           
           SENATE PUBLIC EMPLOY. & RETIRE.COMMITTEE  :  4-0, 3/26/12
          AYES:  Negrete McLeod, Walters, Gaines, Vargas
          NO VOTE RECORDED:  Padilla

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 4/30/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Price, 
            Steinberg


           SUBJECT  :    Human resources:  Governors Reorganization Plan 
          1

           SOURCE  :     Department of Human Resources


           DIGEST  :    This bill makes conforming statutory changes to 
          assist in implementing the Governors plan (GRP 1, 2011) to 
          consolidate the Department of Personnel Administration 
          (DPA) and the administrative functions of the State 
          Personnel Board (SPB) into a single agency:  the Department 
          of Human Resources (CalHR).  The constitutional autonomy of 
          the governing body of the SPB with regard to oversight of 
          the merit principal and state civil service is retained 
          with that body.

           ANALYSIS  :    Existing law:

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          1. Merges, effective July 1, 2012, 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. Retains the independence and autonomy of the SPB with 
             regard to hearing matters related to the merit principle 
             for state civil service employees, as required in the 
             Constitution.

          3. Requires that in the year following passage of a 
             Governor's Reorganization Plan, conforming statutory 
             changes be made as needed to implement the Plan.

          This bill makes technical and non-controversial statutory 
          changes in order to implement GRP 1, 2011, as follows:

          1. Clarifies that CalHR inherits DPA's powers and duties as 
             well as those necessary to operate the civil service 
             system in accordance with the Constitution, merit 
             principle, and SPB rules.

          2. Clarifies that the SPB will continue to hear cases and 
             prescribe rules consistent with the merit principle and 
             will conduct audits to ensure compliance with the merit 
             principle.

          3. States that appointing powers in state agencies and 
             departments shall provide the SPB and CalHR with access 
             to records and prepare reports as needed to comply with 
             the SPB's authority over the merit system and CalHR's 
             oversight of non-merit personnel components.

          4. Establishes audit authority for the SPB over personnel 
             practices delegated to departments relative to the merit 
             principle (e.g., exams, promotions, discipline) and 
             provides enforcement authority, including authority to 
             order remedies for department misconduct, loss of 
             departmental delegation over personnel, voided 
             appointments, and redirection of departmental authority 
             to CalHR to perform certain of the department's 
             personnel functions with compensation to CalHR for costs 
             related to assuming the those functions.

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          5. Clarifies that laws, programs and rules formerly under 
             the jurisdiction and administration of DPA and SPB shall 
             now be under the jurisdiction and administration of 
             CalHR.

          6. Eliminates references and funding parameters for the 
             Human Resources Modernization project, which shall cease 
             to exist as an independent project.

          7. Makes name changes and includes other technical clean-up 
             to the statutes governing programs formerly administered 
             by DPA and SPB.

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

          According to the Senate Appropriations Committee analysis:

          Redirection of an existing 14 personnel years (PYs) to 
          support the new audit function as follows:

            Four PYs in the Policy Unit in the amount of $442,000 
             (General).
            10 PYs in the Audit Unit in the amount of $1.266 million 
             (General/Special, reimbursed from departments that are 
             audited).

          The Department of Finance has identified total savings of 
          $8.6 million ($3.7 million General Fund) as a result of the 
          reorganization, mostly due to a 15% reduction in positions 
          equal to 60.5 PYs when the consolidation is complete.  Most 
          reductions are expected to be achieved through vacancies 
          and attrition over the next few years.  Additionally, 14 
          existing positions will be maintained to support the new 
          audit function created in this bill.

           SUPPORT  :   (Verified  5/1/12)

          Department of Human Resources (source)
          Association of California State Employees with Disabilities 
            (if amended)

          ARGUMENTS IN SUPPORT  :    According to the sponsor, GRP 1 

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          (2011), merges DPA and the SPB into a single entity:  the 
          CalHR.  To be properly reflected in statute, the plan 
          requires many technical changes.  While SB 1308 (Senate 
          Public Employment and Retirement Committee) contains many 
          of the changes, this bill includes technical "clean-up" 
          items not included in SB 1308.

          The changes in this bill ensure that the SPB 
          non-constitutional functions transferred to CalHR are 
          reflected in statute, including oversight of bilingual and 
          interpreter services, administering exams and appointments, 
          ensuring employment forms comply with federal and state 
          laws, and responsibility over certain civil rights issues 
          (e.g., monitoring departments' Equal Employment Opportunity 
          program obligations).

          This bill also contains language to ensure SPB preserves 
          its constitutional jurisdiction and independence, 
          specifying that its five-member board maintains oversight 
          and authority over the civil service merit system, 
          disciplinary appeals process, and other constitutionally 
          defined duties.


          DLW:kc  5/2/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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