BILL ANALYSIS �
AB 2213
Page 1
Date of Hearing: April 24, 2012
ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER
PROTECTION
Mary Hayashi, Chair
AB 2213 (Donnelly) - As Amended: April 16, 2012
SUBJECT : Government reorganization: realignment or closure.
SUMMARY : Establishes the Bureaucracy Realignment and Closure
Commission (Commission). Specifically, this bill :
1)Establishes the Commission and requires the Governor to
appoint the members of the Commission, by April 1, 2014, as
follows:
a) One member upon consultation with the Speaker of the
Assembly;
b) One member upon consultation with the Minority Leader of
the Assembly;
c) One member upon consultation with President pro Tempore
of the Senate;
d) One member upon consultation with the Minority Leader of
the Senate; and,
e) Three members, at the Governor's discretion, subject to
confirmation by the Senate.
2)Requires each member of the Commission to have management
experience prior to his or her appointment to the Commission,
and be both a United States citizen and resident of
California.
3)Requires the Governor to designate one member of the
Commission as the chairperson.
4)Authorizes the Commission to employ an executive secretary and
any clerical, professional, and technical assistants as
necessary, as specified.
5)Prohibits the appointment of any person to the Commission:
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a) Who has had a paid position with a federal, local, or
state governmental agency within the past five years;
b) Is party to or employed by an entity that is party to an
ongoing contract with a federal, local, or state
governmental agency;
c) A lobbyist, as defined.
6)Specifies that each member of the Commission be appointed for
a term of two years and may be reappointed for a second term
of two years, but may not serve more than four years total on
the Commission.
7)Provides that the Chairperson and each member of the
Commission serves without compensation, but will receive the
daily equivalent of the average salary paid to agency heads
and deputy directors of agencies, respectively, for each day
while on official business of the Commission, as specified.
8)Entitles each member of the Commission to receive necessary
expenses actually incurred in the performance of his or her
duties.
9)Requires the Commission to:
a) Examine state bureaucracies to determine if the
jurisdictions of various state bureaucracies overlap, or if
a state bureaucracy's mission has become obsolete;
b) Submit a report to the Governor and the Legislature
recommending needed reforms and establishing a list of
state bureaucracies to be realigned or abolished;
c) Propose realignment and closure of state bureaucracies
to reduce duplication of services, increase productivity,
and reestablish the proper role of government; and,
d) Examine the current configuration of state bureaucracies
and investigate their duties and responsibilities.
10)Authorizes the Commission to:
a) Meet at times and places that it deems proper;
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b) Issue subpoenas to compel the attendance of witnesses
and the production of books, records, papers, accounts,
reports, and documents;
c) Administer oaths; and,
d) Contract for the rendition of services, facilities,
studies, and reports that will best assist the Commission
in carrying out its duties and responsibilities.
11)Requires the Controller, the Director of Finance (DOF), the
Legislative Analyst (LAO), the Milton Marks "Little Hoover"
Commission on California State Government Organization and
Economy (LHC), and the State Auditor (BSA) to develop
recommendations for the closure or realignment of state
bureaucracies for consideration by the Commission, beginning
on January 1, 2014, and report these recommendations to the
Commission by July 15, 2014.
12)Requires the Commission to independently evaluate these
reports and authorizes the Commission to add other state
bureaucracies to study for realignment or closure, which may
include proposals submitted by residents outside of state
government.
13)Requires at least one member of the Commission to visit each
state bureaucracy considered for realignment or closure by
January 1, 2015, and as part of its review process, conduct
three public hearings with a final hearing occurring on or
before March 15, 2015, as specified.
14)Requires the Commission to take into consideration reports
and analysis of the Joint Sunset Review Committee prior to
submitting final recommendations to the Governor.
15)Requires the Commission to submit its final recommendations
to the Governor and the Legislature and transmit a copy of
these recommendations to DOF by July 15, 2015, and requires
DOF to prepare and issue a public report that displays the
forecasted savings in state expenditures that would result
from these recommendations.
16)Requires the Governor to act on the Commission's
recommendations by August 15, 2015, by approving or returning
the recommendations to the Commission for revision.
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17)Grants the Commission one month to revise and transmit to the
Governor and DOF an updated list if the Governor returns the
initial recommendations, however specifies that the Commission
is not required to incorporate recommendations of the Governor
in its list.
18)Requires DOF to prepare a revised public forecast from the
updated list.
19)Specifies that if the Governor rejects the revised list, the
realignment and closure process for the year shall end without
action.
20)Authorizes the Commission to submit a revised list the
following year after consideration and at least one public
hearing.
21)Requires the Governor, if he or she approves the list as
submitted by the Commission, to prepare the list, without
alteration or amendment, as a reorganization plan and submit
the plan to the Legislature for consideration, as specified.
22)Specifies the plan is effective 60 calendar days of
continuous session of the Legislature after the date on which
the plan is transmitted to each house or at a later date as
may be provided by the plan, unless, prior to the end of the
60-calendar-day period, both houses of the Legislature adopt
as resolution, as specified.
23)Requires the plan specify that the state bureaucracies
recommended for closure or realignment be closed or realigned
one year after the effective date of the plan and completed
within three years of the effective date.
24)Requires DOF to compute the savings in state governmental
expenses forecasted to occur due to the closure or realignment
of the state bureaucracies and transmit this information to
the Governor and the Legislature, once the reorganization plan
becomes effective.
25)Appropriates $250,000 from the General Fund to the Commission
in order to defray costs incurred during the first year of
operation.
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26)Prohibits the Commission from expending more than $500,000 in
carrying out its duties.
27)Defines the following terms:
a) "Management experience" means a person who possesses a
Master of Arts degree, an equivalent degree or business
experience, or a more advanced degree in the field of
business management or public administration; and,
b) "State bureaucracy" means every state agency, office,
officer, department, division, bureau, board, or
commission, as specified.
28)States legislative intent.
EXISTING LAW
1)Requires each state agency, department, office, and commission
for which strategic planning efforts are recommended to
develop a strategic plan, as specified, that identifies the
steps being taken to develop performance measures to implement
a performance budgeting system or a performance review under
the State Government Strategic Planning and Performance and
Review Act.
2)Requires these entities to report to the Governor and the
Joint Legislative Budget Committee by April 1 of each year on
the steps being taken to develop and adopt a strategic plan.
3)Establishes BSA and requires it to conduct audits of state and
local government agencies, as specified.
4)Funds the activities of the BSA by the State Audit Fund, which
is continuously appropriated for these purposes.
FISCAL EFFECT : Unknown
COMMENTS : According to the author, "In a time of fiscal crisis
it is absurd to continue to waste taxpayer money on duplicative,
outdated or unnecessary bureaucracies. Under this bill,
California will analyze and reassess government agencies to
streamline spending and ensure that money is directed where it
needs to go, instead of being wasted or lost because of
bureaucratic excess. This bill is essentially an efficiency
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check to make certain that state organizations live up to their
purposes and expected standards."
Background . This bill is substantially similar to SB 1428
(McClintock) of 2003. Similar to SB 1428, this bill establishes
the Commission with the purpose of examining state bureaucracies
to determine if the jurisdictions of various state bureaucracies
overlap or if a state bureaucracy's mission has become obsolete
and to report its findings to the Governor and the Legislature.
The Legislature has several distinct processes in place to
maintain oversight and review of the state's bureaucracy and its
performance within current resources. Assembly and Senate
policy and budget committees provide oversight and "sunset
review" through the legislative process. Additionally, the
Joint Legislative Audit Committee is authorized to request
audits conducted by the BSA on virtually any state operation.
This bill creates and funds an entirely new Commission that
duplicates oversight duties already provided by LHC. Created in
1962, the LHC is an independent state oversight agency to
investigate state government operations and - through reports,
recommendations and legislative proposals - promote efficiency,
economy and improved service. The LHC selects study topics that
come to its attention from citizens, legislators and other
sources. In addition, it has a statutory obligation to review
and make recommendations on proposed government reorganization
plans.
Opposition . The Professional Engineers in California Government
(PECG) writes in opposition, "PECG believes the Legislature
currently has adequate tools to review state agencies and
determine their effectiveness and the manner in which they
should proceed. For example, each year, the budget
subcommittees of both houses review the budgets of every state
agency. Similarly, the DOF and the LAO, two entities included
in the proposed Commission, regularly review the budgets and
activities of every agency in state government and makes
recommendations to the Legislature. PECG does not believe that
an additional layer of bureaucracy will unearth the mystical
waste, fraud and abuse that some believe exists."
Previous legislation . SB 1428 (McClintock) of 2002, establishes
the Commission for the purpose of recommending the closure or
realignment of state bureaucracies. This bill was held in the
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Assembly Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
Professional Engineers in California Government
Sierra Club California
Analysis Prepared by : Rebecca May / B.,P. & C.P. / (916)
319-3301