BILL ANALYSIS Ó
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CONSENT
Bill No: SB 820
Author: Senate Governmental Organization Committee
Amended: 4/29/13
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 9-0, 4/23/13
AYES: Wright, Nielsen, Berryhill, Calderon, Cannella, Correa,
De León, Hernandez, Lieu
NO VOTE RECORDED: Galgiani, Padilla
SENATE APPROPRIATIONS COMM : Senate Rule 28.8
SUBJECT : State government: Governors Reorganization Plan No.
2 of 2012
SOURCE : Author
DIGEST : This bill enacts the statutory changes to make
conforming name changes to properly reflect the assignment and
reorganization of the functions of state government among the
newly established executive entities and offices, including,
among others, changing the name Department of Real Estate to
Bureau of Real Estate. Reallocates certain duties of abolished
executive entities and officers to newly established and
existing ones.
ANALYSIS : Governor's Reorganization Plan No. 2 of 2012 (GRP
2) will be effective July 1, 2013, and restructures various
government entities into three
agencies with coordinated and consolidated functions.
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This bill makes technical changes to GRP 2, including:
Division of Boating and Waterways
1. Amending the Harbors and Navigation Code to remove
requirements for the Boating and Waterways Commission's
(Commission) approval and consent of boating projects to be
consistent with AB 737 (Buchanan, Chapter 136, Statutes of
2012).
2. Clarifying duties between the new Division of Boating and
Waterways and the Commission.
Transportation Agency
3. Moving the Common Interest Development Program to the new
Business, Consumer Services, and Housing Agency (BCSH).
4. Conforming name changes from the Business, Transportation and
Housing Agency (BTH) to the Transportation Agency.
5. Changing references to the Secretary of BTH to the BCSH to
reflect the changes in reporting departments.
6. Changing the title of Deputy Secretary of Housing to the
Deputy Secretary of Housing Coordination.
Bureau of Real Estate
7. Changing the "Department of Real Estate" to the "Bureau of
Real Estate."
California Gambling Control Commission (CGCC)
8. Clarifying the responsibilities of the CGCC and the
Department of Justice (DOJ) including :
A. Requiring DOJ, Bureau of Gambling Control to maintain a
file of all license application rather than the CGCC.
B. Requiring applications for renewal of gambling licenses
to be filed by the licensee with DOJ instead of CGCC.
C. Requiring certain fees to be collected by DOJ instead
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of CGCC.
D. Requiring the Charity Bingo Mitigation Fund to be
administered by DOJ instead of CGCC.
E. Requiring all equipment used for remote caller bingo to
be approved in advance by DOJ, instead of CGCC.
Governor's Office of Business and Economic Development (GO-Biz)
9. Making conforming changes to reflect the transfer of the
Small Business Loan Guarantee Program, the California Film
Commission, and the Tourism Program from BTH to GO-Biz.
10.Adding the Director of GO-Biz to the California Industrial
Development Financing Advisory Commission and removes the
Secretary of BTH.
11.Adding the Director of GO-Biz to the Economic Recovery
Financing Committee and removing the Secretary of BTH.
Department of Technology
12.Changing "Technology Agency" to the "Department of
Technology."
13.Replacing "Secretary of California Technology" with "Director
of the Department of Technology."
14.Changing "Division of Public Safety Communications" to
"Office of Public Safety Communications."
Department of Business Oversight (DBO)
15.Defining the Chief Officer of DBO as the "Commissioner of the
Department of Business Oversight."
16.Establishing the title of "Senior Deputy Commissioner" of the
Division of Corporations and the Division of Financial
Institutions and their authority.
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Background
GRP Process . As stipulated in Government Code Section 12080 et
seq., the Governor is required to submit any reorganization plan
to the Milton Marks Commission on California State Government
Organization and Economy (Little Hoover Commission) at least 30
days prior to submitting the plan to the Legislature. The
Little Hoover Commission's role in the reorganization process is
only advisory - it reviews and submits a report to the Governor
and the Legislature within 30 days of the Plan being submitted
to the Legislature. Existing law also provides that any GRP
becomes law after 60 days unless either House of the Legislature
adopts a resolution rejecting the proposal.
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.
GRP 2 of 2012 . GRP 2 (introduced May 3, 2012) created three new
agencies by relocating departments in three existing agencies
with the goal of grouping like functions more closely together
and reducing the number of agencies from 12 to 10 overall. It
also made a series of other moves, as specified. With respect
to the existing State and Consumer Services Agency, GRP 2
eliminated the Agency and created the new Business and Consumer
Services Agency consisting of business-related departments
currently in the BTH along with consumer-related departments
currently within the State and Consumer Services Agency. The
make-up of the new Business and Consumer Services Agency would
be as follows: Department of Consumer Affairs, Department of
Fair Employment and Housing, Department of Business Oversight,
Department of Housing and Community Development, Department of
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Alcoholic Beverage Control, Alcoholic Beverage Control Appeals
Board, California Horse Racing Board, and Alfred E. Alquist
Seismic Safety Commission. Furthermore, the California Housing
Finance Agency will be transferred into the Department of
Housing and Community Development - thus, it will no longer be
separate and distinct. On May 22, 2012, the Little Hoover
Commission released its report of GRP 2 and recommended that the
Plan be allowed to go into effect. The deadline for a
legislative resolution affirmatively disapproving GRP 2 was July
2, 2012. GRP 2 became effective on July 3, 2012, and operative
on July 1, 2013.
Prior legislation . SB 1039 (Steinberg, Chapter 147, Statutes of
2012) modified GRP 2 by, among other things, changing the name
of the Business and Consumer Services Agency to the Business,
Consumer Services, and Housing Agency.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/7/13)
Department of Finance
ARGUMENTS IN SUPPORT : The Department of Finance states that
this bill includes technical changes necessary to implement GRP
2.
MW:k 5/7/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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