BILL ANALYSIS                                                                                                                                                                                                    

                                                       Bill No:  AB  
                           Senator Lou Correa, Chair
                           2013-2014 Regular Session
                                 Staff Analysis

          AB 2763  Author:  Committee on Accountability &  
          Administrative Review
          As Introduced:  March 26, 2014
          Hearing Date:  June 24, 2014
          Consultant:  Paul Donahue


                          State government operations

          This bill makes additional changes in the statutes  
          necessary to reflect the changes made by the Governor's  
          Reorganization Plan 2 (GRP2) as introduced to the  
          Legislature on May 3, 2012, and made effective on July 3,  
          2012. Specifically, this bill reallocates specified duties  
          of reorganized and abolished state entities and their  
          officers to established state entities including, but not  
          limited to the following:

          1)Reallocates specified duties of the abolished Business,  
            Transportation and Housing Agency

          2)Reallocates certain existing duties to the Department of  
            Business Oversight and the Department of Justice.

          3)Repeals provisions and authorities, as specified, of the  
            California Collider Commission.

          4)Makes other technical, nonsubstantive, and conforming  
            changes to implement GRP2.

                                   EXISTING LAW


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           The California Constitution grants the Governor the  
          authority to reorganize the functions of executive officers  
          and agencies. Existing statutes set forth definitions and  
          procedures concerning how the Legislature reviews and  
          reports on a Governor's reorganization plan.<1>

          The Legislature may elect to vote on the plan, or allow the  
          plan to become effective without action on the first day  
          after 60 days of continuous session following receipt of  
          the plan. 

          Once the plan becomes effective, a bill, or bills, must be  
          introduced, not later than the next regular session,  
          effecting such changes in the statutes as may be necessary  
          to reflect the changes made by the reorganization plan.  
          Failure to enact such a bill shall not affect the validity  
          of the plan.

          The Brown Administration introduced GRP2 on March 30, 2012,  
          and upon review by the Legislature, it became effective  
          July 3, 2012. This bill makes conforming changes in the  
          statutes necessary to reflect the changes made by GRP2.

          The Governor's office states that GRP2 makes government  
          less costly, more efficient and more sensible through  
          changes, including, but not limited to, restructuring the  
          State and Consumer Services and the Business,  
          Transportation and Housing agencies and other scattered  
          government entities into the following three agencies with  
          coordinated and consolidated functions:

          1)The Government Operations Agency - responsible for  
            administering state operations, such as procurement,  
            information technology and human resources;

          2)The Business, Consumer Services and Housing Agency -  
            responsible for licensing and oversight of industries,  
            businesses and other professionals; and,

          3)The Transportation Agency - responsible for addressing  
            the state's transportation needs.

          In addition to creating three new agencies, GRP2  
          <1> Govt. Code  12080 et seq.


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          Review) continued                                         

          restructures other parts of the state's organization. This  
          bill contains additional technical and conforming changes  
          to effect the implementation of GRP2.

                            PRIOR/RELATED LEGISLATION
          GRP 2 (Brown) of 2012 implemented a major reorganization  
          and recasting of the Executive Branch of California's  
          government. GRP2 reduced the total number of Executive  
          Branch agencies from 12 to 10 and consolidates and  
          reassigns the placement of various departments thereunder.  
          It places several stand-alone independent commissions, such  
          as the California Transportation Commission and the Delta  
          Stewardship Council under auspices of Executive Branch  
          agencies. It diminishes the status of several entities,  
          such as the Technology Agency and Department of Real Estate  
          by instead creating the Department of Technology within the  
          new Government Operations Agency, and the Real Estate  
          Bureau under the Department of Consumer Affairs.  
          Furthermore, it merges the Department of Boating and  
          Waterways into the Department of Parks and Recreation. 


          None on file


          None on file

           FISCAL COMMITTEE:   Senate Appropriations Committee



          AB 2763 (Committee on Accountability & Administrative  
          Review) continued