BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2754 (J. Perez)
          
          Hearing Date:  08/09/2010           Amended: 07/15/2010
          Consultant: Mark McKenzie       Policy Vote: L Gov 4-0
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          ____
          BILL SUMMARY:  AB 2754 would establish the Planning and State  
          Clearinghouse Unit within the Governor's Office of Planning and  
          Research (OPR) and prescribe the duties and responsibilities of  
          the Clearinghouse Unit.  Specifically, this bill would:
           Establish the Clearinghouse Unit, under the control and  
            oversight of the Director of the Planning and State  
            Clearinghouse Unit, who reports to the Director of OPR.
           Require the Department of Personnel Administration to convey  
            civil service status to the Director and staff of the  
            Clearinghouse Unit.
           Require the Clearinghouse Unit to assume long term planning  
            functions, annually ensure the functional plans of state  
            agencies are consistent with state planning priorities,  
            biennially report to the Governor and Legislature on its  
            efforts to formulate, evaluate, and update long-range goals  
            and policies, and develop long-range policies  for growth and  
            development every five years.
           Require the Unit to assist the Air Resources Board in  
            providing technical assistance to local governments regarding  
            sustainable communities strategies, and work with the  
            Strategic Growth Council with sustainable planning and meeting  
            the goals of the California's Global Warming Solution Act.
           Require OPR to serve as the state's liaison with the U.S.  
            Department of Defense (DOD) and prescribe the duties related  
            to this role.
           Require OPR, rather than the Natural Resources Agency, to  
            administer the functions of the Strategic Growth Council, and  
            transfer any funds remaining from the original appropriation  
            to the Agency for administering the Council to OPR for this  
            purpose.

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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Clearinghouse Unit staff          $115        $230       










          $230General
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          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          The Governor's Office of Planning and Research acts as the  
          state's comprehensive planning agency and coordinates state  
          agencies' planning activities.  OPR has numerous statutory  
          duties, but since the office is under the direct control of the  
          Governor, it suffers from high turnover rates and is generally  
          underutilized as a planning resource.  The Governor's 2010-11  
          proposed budget calls for the outright elimination of OPR,  
          reassigning some of its activities to other state agencies.  The  
          Legislature rejected the outright elimination of OPR, and  
          instead voted in Budget Conference Committee to reduce  
          positions, but retain OPR's clearinghouse and environmental  
          planning and coordination functions.

          Page 2
          AB 2754 (J. Perez)

          AB 2754 would establish the Planning and State Clearinghouse  
          Unit and insulate staff from frequent turnover by converting OPR  
          staff under the Unit to civil service status.  This provision  
          would result in unknown costs related to the transition, perhaps  
          in the range of $100,000, as well as salary and benefits  
          changes.  

          The bill would also codify portions of a 2006 executive order,  
          signed by Governor Schwarzenegger in 2006, that created the  
          position of Governor's Advisor of Military Affairs within OPR to  
          coordinate planning and regulatory activities that affect  
          defense operations, issues related to military personnel and  
          their families, and to support the states relationship with the  
          DOD.  This position is currently inactive.  AB 2754 would codify  
          OPR's role as the liaison with the DOD.  

          This bill would also shift the administration and support  
          funding for the Strategic Growth Council from the Natural  
          Resources Agency to OPR.  SB 732 (Steinberg), Chapter 729 of  
          2008, appropriated $500,000 in Proposition 84 bond funds for  
          support of the Council's activities.  AB 2754 would shift  
          approximately $300,000 in remaining funds to OPR for the  
          administration of the Council.











          OPR indicates that this bill would increase workload and costs  
          by approximately $230,000 and require three new staff positions  
          (one DOD liaison and two new planning positions).