BILL ANALYSIS Ó
Bill No: SB
820
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2013-2014 Regular Session
Staff Analysis
SB 820 Author: Committee on Governmental Organization
As Amended: April 15, 2013
Hearing Date: April 23, 2013
Consultant: Paul Donahue
SUBJECT
State government: Governor's Reorganization No. 2 of 2012
DESCRIPTION
1) 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 offices 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 2 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
and reorganization of the functions of state government
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among the newly established executive entities and offices.
This bill also reallocates certain duties of abolished
executive entities and offices to the newly established
ones.
2) Existing law and GRP 2 transfers the duties and
authorities of the Department of Boating and Waterways to
the Division of Boating and Waterways in the Department of
Parks and Recreation and reassign specified duties between
the division and the Boating and Waterways Commission.
This bill further modifies duties between the division and
the commission, including, among others, removing
requirements for the consent of the commission for the
department to make certain transfers, loans, or grants
under various programs and other proposals, as specified.
3) Existing law and GRP 2 transfers a requirement that the
Business, Transportation and Housing Agency establish small
business financial development corporations to the
Governor's Office of Business and Economic Development.
This bill makes conforming changes to provide for the
transfer of this duty.
4) Existing law authorizes the State Energy Resources
Conservation and Development Commission (CEC) to work with
the Business, Transportation and Housing Agency to
implement the program funded by federal funds allocated to,
and received by, the state for energy-related projects
pursuant to the American Recovery and Reinvestment Act of
2009 and other federal acts related to the American
Recovery and Reinvestment Act of 2009.
This bill authorizes the CEC to work instead with the
Governor's Office of Business and Economic Development.
5) The California Tourism Marketing Act provides for the
establishment of the California Travel and Tourism
Commission within the Business, Transportation and Housing
Agency.
This bill removes references to the abolished agency in the
act and deletes obsolete provisions.
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6) Existing law and GRP 2 transfers the California Film
Commission and the Film California First Program from the
Business, Transportation and Housing Agency to the
Governor's Office of Business and Economic Development.
This bill makes administrative changes consistent with that
transfer.
7) The GRP 2 reallocates certain licensing and regulatory
functions between the California Gambling Control
Commission (CGCC) and the Department of Justice (DOJ)
related to gaming.
This bill reassigns additional functions among the
commission to the department, including, among others,
requiring DOJ, rather than the CGCC, to decide whether the
payment of the annual gambling license fee is on an annual
or installment basis.
8) Existing law and GRP 2 reallocates certain duties and
functions of the Business, Transportation and Housing
Agency related to the small business loan guarantee
program, the disaster assistance loan program, the economic
adjustment assistance grant, the employment training panel,
green collar jobs program, and the film industry.
This bill further reassigns the duties and functions of
this abolished agency with regard to these programs and
this industry.
9) Existing law requires common interest developments to
submit specified information, including personal
identifying information regarding the president of the
association, to the Secretary of State, who is required to
make the information available for governmental purposes
under specified conditions to certain entities, including,
among others, the Business, Transportation and Housing
Agency.
This bill replaces the abolished agency with the Business,
Consumer Services, and Housing Agency.
10) Existing law authorizes the Secretary of Business,
Transportation and Housing to prescribe specified rules and
regulations relating to certain mortgage instruments.
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This bill transfers the duties of the abolished office with
the Secretary of Business, Consumer Services, and Housing.
(11) Existing law authorizes the Governor to, with respect
to the Business, Transportation and Housing Agency, appoint
a Deputy Secretary of Housing to advise that agency's
secretary on housing matters.
This bill modifies the Governor's authorization to appoint
a Deputy Secretary of Housing Coordination to serve as the
Secretary of Transportation's primary advisor on housing
matters, as specified.
12) Existing law provides that, among other things, the
powers and duties of the Department of Transportation
include investigating and reporting to the Secretary of
Business, Transportation and Housing upon the consistency
between housing plans and programs and federal
transportation plans and programs.
This bill instead provides that the Department of
Transportation report under these circumstances to the
Secretary of Transportation and the Secretary of Business,
Consumer Services, and Housing, as specified.
13) Existing law requires the Director of the Office of
Planning and Research to consult with the Secretary of
Business, Transportation and Housing, as specified.
This bill instead requires the director to consult with the
Secretary of Business, Consumer Services, and Housing under
these circumstances, as specified.
14) Existing law and GRP 2 reorganizes the Department of
Corporations and the Department of Financial Institutions
into divisions under the Department of Business Oversight,
within the Business, Consumer Services, and Housing Agency.
Under the GRP 2, the executive officer of the Department of
Business Oversight is the Commissioner of Business
Oversight, and the department's administration includes a
Deputy Commissioner of Business Oversight for the Division
of Corporations, and a Deputy Commissioner of Business
Oversight for the Division of Financial Institutions.
This bill enacts statutory changes to implement the
above-described organizational structure by transferring
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the responsibilities of the Department of Corporations and
the Department of Financial Institutions to the newly
established Department of Business Oversight and its
Division of Corporations and Division of Financial
Institutions, headed by Senior Deputy Commissioners and the
Office of Credit Unions, as specified.
This bill makes additional conforming changes to the duties
of the Department of Business Oversight to include
additional activities relating to the functions of
corporations and financial institutions.
This bill requires the Senior Deputy Commissioner of
Business Oversight for the Division of Financial
Institutions to employ legal counsel to act as the attorney
for the commissioner under specified circumstances.
(15) GRP 2 renames the California Technology Agency as the
Department of Technology within the Government Operations
Agency.
This bill makes various technical, nonsubstantive
conforming changes to further reflect this reorganization.
It also specifies that the Office of Technology Services
and the Office of Information Security, each within the
Department of Technology, is managed or under the direction
of a chief.
This bill renames the Public Safety Communications
Division, also within the department, as the Public Safety
Communications Office.
16) This bill would become operative on July 1, 2013.
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.<1> Existing law specifies the process for a
reorganization and places limits on that authority.
Existing law sets forth the purposes of the Governor's
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<1> Cal. Const., Art. V, § 6
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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
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
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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:
None on file.
FISCAL COMMITTEE: Senate Appropriations Committee
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