BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
835 (Strickland)
Hearing Date: 5/27/2010 Amended: A I
Consultant: Bob Franzoia Policy Vote: G O 7-1
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BILL SUMMARY: SB 835 would enact the Bureaucracy Realignment
and Closure Commission. Beginning January 1, 2011, the
Controller, the Director of Finance, the Legislative Analyst,
the Legislative Counsel, the Little Hoover Commission, and the
State Auditor would be required to develop recommendations for
the closure or realignment of state bureaucracies for
consideration by the commission. The Governor would be
required, upon approval of the list of recommendations, to
prepare the list as a reorganization plan to be submitted to the
Legislature. This bill would appropriate $250,000 from the
General Fund to the commission to defray costs incurred during
its first year of operation and prohibit the commission from
expending more than $500,000 in carrying out its duties.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Appropriation $250* $250 Unknown;
Generallesser costs
* Appropriated in the bill
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STAFF COMMENTS: SUSPENSE FILE.
The timeline for the provisions of this bill are:
January 1, 2011 to July 15, 2011
The Controller, Director of Finance, the Legislative Analyst,
Little Hoover Commission and the State Auditor shall develop
recommendations for the closure or realignment of state
bureaucracies for consideration by the commission. These
recommendations shall be reported to the commission by July 15,
2011.
July 16, 2011 to January 1, 2012
The commission shall independently evaluate the recommendations.
In addition, the commission may add other state bureaucracies
to study for realignment or closure, which may include proposals
submitted by residents outside of state government. By January
1, 2012, at least one member of the commission shall have
visited each state bureaucracy considered for realignment or
closure.
Before March 15, 2012
In addition, as part of its review process, the commission shall
conduct three hearings in the state with the final hearing
occurring at Sacramento.
Not later than July 15, 2012
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SB 835 (Strickland)
The commission shall complete its evaluation and shall submit
its final recommendations to the Governor and the Legislature.
The commission shall transmit a copy of these recommendations to
the Director Finance who shall prepare and issue a public report
that displays the forecasted savings in state expenditures that
would result from these recommendations.
By August 15, 2012
The Governor shall act on the commission's recommendations. The
Governor may approve the recommendations or return the
recommendations to the commission for revision. If the Governor
returns the recommendations, the commission has one month to
revise and transmit to the Governor an updated list. If the
Governor rejects the revised list, that action shall end the
realignment and closure process for the year without action.
The commission may submit a revised list in the following year
after consideration and at least one public hearing. If the
Governor approves the list as submitted by the commission, the
Governor shall prepare the list, without alteration or amendment
as a reorganization plan and submit the plan to the Legislature.
Upon being transmitted to the Legislature, the plan shall become
effective the first day after 60 days of continuous legislative
session, unless, prior to the end of the 60 day period, either
house of the Legislature adopts, by majority vote, a resolution
resolving that the Assembly or the Senate does not favor the
reorganization plan.
This bill proposes that by August 15, 2012, the Governor shall
act on the commission's recommendations. If the Governor
returns the recommendations, the commission has one month to
revise and transmit to the Governor and the Department of
Finance an updated list. Staff recommends this bill be amended
to (1) require the Governor to state the reasons for returning
the recommendations and (2) require the commission to transmit
its revised recommendations to the Legislature.
This bill provides that if the Governor rejects the revised list
of recommendations submitted by September 15, 2012, the
commission to submit a revised list in the following year after
consideration and at least one public hearing. Staff recommends
this bill be amended to sunset the commission on June 30, 2013.