BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2501
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          Date of Hearing:   April 24, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                   AB 2501 (Garrick) - As Amended:  March 29, 2012
           
          SUBJECT  :   State government. 

           SUMMARY  :   Requires every state agency to locate its primary 
          administrative office, and all Supreme Court cases to be heard, 
          within Sacramento, on or before January 1, 2025.  Specifically, 
           this bill  :  

          1)Requires every state agency to locate its primary 
            administrative office within the Sacramento metropolitan area 
            by January 1, 2025.  Authorizes a state agency that requires 
            direct public interaction to facilitate its function to 
            maintain local and regional offices for that purpose. 

          2)Requires the Supreme Court, on or before January 1, 2025, to 
            hear cases in Sacramento. 

          3)Requires the Department of General Services (DGS) to 
            coordinate with the heads of every state agency to establish a 
            plan to relocate facilities to Sacramento. 

          4)Creates the following definitions: 

             a)   "Sacramento metropolitan area" to mean the greater 
               metropolitan Sacramento area, including the City of 
               Sacramento, the County of Sacramento, and the eastern part 
               of Yolo County; and, 

             b)   "State agency" to mean every state agency, department, 
               office, division, bureau, board, commission, or state 
               entity under the direction of a constitutional officer. 

          5)Makes findings and declarations related to the relocation of 
            state administrative and executive facilities to Sacramento to 
            achieve cost savings. 

           EXISTING LAW  

          1)Authorizes DGS to plan, acquire, construct, and maintain state 








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            buildings and property, and subject to legislative approval, 
            to sell, lease, exchange, or transfer various specified 
            properties for current market value, or upon terms and 
            conditions as DGS determines are in the state's best 
            interests.

          2)Requires the headquarters (HQ) of the California Coastal 
            Commission (Coastal Commission) to be located in a coastal 
            county, but authorizes the Coastal Commission to meet and 
            exercise any or all of its powers in any part of the state.  
            Authorizes the Coastal Commission to maintain regional 
            offices, if it finds that accessibility to, and participation 
            by, the public will be better served, or implementation of 
            duties will be more efficient. �Public Resources Code (PRC) 
            Section 30317]

          3)Requires specified conservancies to maintain their HQ in 
            specified locations. (PRC Sections 32340 and 33327)

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, "The 
          purpose of this bill is to decrease the cost for the government 
          to do business in the State of California by implementing a 
          'lean production' practice.  Certain agencies and departments 
          currently have multiple locations for their administrative 
          offices.  By limiting administrative offices to one, and moving 
          them to the more central cost effective location of Sacramento, 
          we can reduce excessive, unnecessary costs to the taxpayers.

          "This bill is necessary because our state is experiencing an 
          ongoing fiscal crisis and we need to begin looking internally at 
          ways to curb the superfluous spending by bureaucracies instead 
          of cutting essential programs that serve the most vulnerable 
          populations."

           Background  .  This bill requires every state agency to locate its 
          primary administrative office within the Sacramento metropolitan 
          area by January 1, 2025.  According to DGS, the majority of 
          state agency HQ are already located in Sacramento and would 
          apply the Public Utilities Commission (PUC) and the Coastal 
          Commission.  This bill may also apply to conservancies, 
          agricultural districts, and small agencies that are not 








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          expressly listed in this bill.  

          Existing law allows state agencies who wish to relocate their 
          offices to work with DGS to do so.  Neither PUC nor the Coastal 
          Commission has requested to relocate their primary 
          administrative offices.  The author's office contends that "By 
          limiting administrative offices to one, and moving them to the 
          more central cost-effective location of Sacramento, we can 
          reduce excessive, unnecessary costs to the taxpayer."  However, 
          the language in this bill does not require state agencies to 
          consolidate their administrative functions to one office and it 
          is unclear whether there would be any cost savings resulting 
          from relocation - affected state agencies would have to pay for 
          relocation costs and replacing staff lost to attrition.  

          Existing law requires that the HQ of the Coastal Commission and 
          specified conservancies be located in specified regions, and 
          appears to conflict with this bill's requirement that they be 
          located in Sacramento.  PRC Section 30317 requires that the 
          Coastal Commission's HQ be located in a coastal county; the 
          Coastal Commission is currently located in San Francisco.  The 
          nature of the Coastal Commission's work - coastal plan use 
          planning, permitting and enforcement, requires regular site 
          visits and ongoing work with coastal local governments and 
          special districts.  The Coastal Commission works closely with 
          local coastal governments, applicants, property owners, and the 
          public in a location that is accessible to its constituents.  
          Locating the Coastal Commission HQ in Sacramento would 
          necessitate longer, more costly travel, cause permitting delays, 
          and divert staff time.  

          This bill, as written, would require Supreme Court cases to be 
          heard in Sacramento, until January 1, 2025.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file. 

           Opposition 
           
          None on file. 
           
          Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 








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          319-3301