BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1309| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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: CONTINUED SB 1309 Page 2 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. CONTINUED SB 1309 Page 3 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 CONTINUED SB 1309 Page 4 (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 **** END **** CONTINUED