BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                       Bill No:  AB  
          1317
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2013-2014 Regular Session
                                 Staff Analysis



          AB 1317  Author:  Frazier
          As Amended:  March 21, 2013
          Hearing Date:  June 11, 2013
          Consultant:  Paul Donahue


                                     SUBJECT  

           State government operations: Governor's Reorganization No.  
                                   2 of 2012

                                   DESCRIPTION
           
           Existing law  and the Governor's Reorganization Plan No. 2  
          of 2012 (GRP 2), effective on July 3, 2012, and operative  
          on July 1, 2013, assigns and reorganizes the functions of  
          state government among executive officers and agencies by  
          creating the following general agency structure in the  
          executive branch:

          a) Business, Consumer Services, and Housing
          b) Government Operations
          c) Corrections and Rehabilitation
          d) Labor and Workforce Development
          e) California Health and Human Services
          f) Environmental Protection
          g) Natural Resources; and 
          h) Transportation. 

          In creating the new general agency structure listed above,  
          GRP abolished certain existing state entities and offices,  
          including, among others, the Business, Transportation and  
          Housing Agency and its secretary.

          In general,  this bill  enacts the statutory changes to make  
          conforming name changes to properly reflect the assignment  




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          and reorganization of the functions of state government  
          among the newly established executive entities and  
          officers.

                                    BACKGROUND
           
          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.  
          Existing law specifies the process for a reorganization and  
          places limits on that authority.

          Existing law sets forth the purposes of the Governor's  
          reorganization authority, providing in the form of a GRP a  
          means by which the Governor can reorganize government 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. 

          To achieve those goals, the Governor can use a GRP to  
          transfer functions among state agencies, eliminate  
          functions or entire agencies, consolidate operations or  
          specific functions, and establish new entities to perform  
          the functions of an existing entity. 

          State law prohibits a GRP from:

           Extending the authority of an agency or a function beyond  
          the period authorized by law.
           Authorizing any agency to exercise any function not  
          expressly authorized by law.
           Increasing the term of an office beyond that provided by  
          law, or 
           Abolishing any agency created by the California  
          Constitution or transferring jurisdiction and control of a  
          function by the California Constitution.

           1)How the process works  :  A reorganization plan may be  




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            delivered to the Legislature at any time during a regular  
            session, provided the Legislature has at least 60  
            calendar days of a continuous session to consider the  
            plan. The Governor's plan becomes effective on the 61st  
            day after it is given to the Legislature, unless either  
            the Senate or the Assembly adopts a resolution rejecting  
            the plan. The resolution requires a majority vote.

            At least 30 days prior to submitting a GRP to the  
            Legislature, the Governor must provide a copy to the  
            Little Hoover Commission, in its advisory capacity. The  
            Commission must review the plan and submit a report to  
            the Legislature within 30 days of transmission to the  
            Legislature. 

           2)Implementation of a GRP  :  After the effective date of a  
            GRP, Legislative Counsel prepares a bill for introduction  
            that would conform the statutes to the GRP. The GRP  
            itself does not amend the statutes. However, unless  
            either house of the Legislature does not affirmatively  
            reject the GRP, it becomes law whether or not an  
            implementing bill is passed. 

            Typically, implementing legislation, in one or more  
            bills, is passed in the year following the effective date  
            of a GRP. While the GRP itself cannot be amended by the  
            Legislature, implementing legislation can modify a GRP's  
            provisions. 

            A GRP may provide for the appointment of individuals,  
            subject to Senate confirmation, to lead an entity that  
            results from consolidation or other type of  
            reorganization. 


                            PRIOR/RELATED LEGISLATION
           
          GRP 2, 2011-2012 Session. Reorganized the Executive Branch  
          of state government. GRP 2 took effect on July 3, 2012. 

           SUPPORT:   

          None on file

           OPPOSE:   





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          None on file

           FISCAL COMMITTEE:   Senate Appropriations Committee


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