BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 820
          Author:   Senate Governmental Organization Committee
          Amended:  8/26/13
          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

           SENATE FLOOR  :  34-0, 5/9/13 (Consent)
          AYES:  Anderson, Beall, Block, Calderon, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Emmerson, Evans, Fuller, Gaines,  
            Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,  
            Knight, Leno, Lieu, Liu, Monning, Nielsen, Padilla, Roth,  
            Steinberg, Walters, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Berryhill, Lara, Pavley, Price, Vacancy,  
            Vacancy

           ASSEMBLY FLOOR  :  77-0, 9/9/13 (Consent) - See last page for vote


           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  
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          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.

           Assembly Amendments  make technical changes and address  
          chaptering out issues with the Governor's Reorganization Plan  
          No. 2 of 2012 (GRP 2).

           ANALYSIS  :    GRP 2 will be effective July 1, 2013, and  
          restructures various government entities into three agencies  
          with coordinated and consolidated functions.

          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
           

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          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  
                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."


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          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  
             Business Oversight."

          16.Establishing the title of "Senior Deputy Commissioner" of the  
             Division of Corporations and the Division of Financial  
             Institutions and their authority.

           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  

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          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  
          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  9/9/13)

          Department of Finance

           ARGUMENTS IN SUPPORT  :    The Department of Finance states that  
          this bill includes technical changes necessary to implement GRP  
          2.

           ASSEMBLY FLOOR  :  77-0, 9/9/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  

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            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Harkey, Roger Hernández, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,  
            Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,  
            V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,  
            Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,  
            Williams, Yamada, John A. Pérez
          NO VOTE RECORDED:  Holden, Vacancy, Vacancy

          MW:k  9/9/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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