BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 953 (Strickland) - Government reorganization: realignment or
closure.
Amended: May 2, 2012 Policy Vote: GO 8-4
Urgency: No Mandate: No
Hearing Date: May 7, 2102 Consultant: Bob Franzoia
This bill meets the criteria for referral to the Suspense File.
Bill Summary: SB 953 would enact the Bureaucracy Realignment and
Closure Act of 2013. This bill would establish the Bureaucracy
Realignment and Closure Commission in state government.
Beginning January 1, 2013, state agencies would be required to
develop recommendations for the closure or realignment of state
bureaucracies for consideration by the commission.
Fiscal Impact: Up to $250,000 from the General Fund in 2013.
Up to $250,000 from the General Fund in 2014.
Unknown savings from the reduction of duplicative services
and increased productivity in future years.
Proposed Law: Beginning on January 1, 2013, the Controller, the
Director of Finance, the Legislative Analyst, the Legislative
Counsel and the Little Hoover Commission would be required to
develop recommendations for the closure or realignment of state
bureaucracies for consideration by the commission. It would
require the commission to independently evaluate the
recommendations, conduct three hearings, and, by January 1,
2014, have at least one member of the commission visit each
state bureaucracy considered for realignment or closure.
This bill would require the commission, before July 16, 2014, to
submit a report of its final recommendations to the Governor and
the Legislature that establishes a list of state bureaucracies
that are proposed to be realigned or abolished. It would
require the Governor, upon approval of the list of
recommendations, to prepare the list as a reorganization plan
and to submit the plan to the Legislature under the provisions
relating to the Governor's reorganization plans.
This bill would repeal the act on June 30, 2015.
SB 953 (Strickland)
Page 1
Related Legislation: SB 835 (Strickland) 2010 proposed the
enactment of a Bureaucracy Realignment and Closure Commission.
That bill proposed an appropriation of $250,000 from the General
Fund to defray costs incurred during its first year of operation
and prohibited the commission from expending more than $500,000
in carrying out its duties. That bill was held on the Suspense
File.
Staff Comments: The timeline for the provisions of this bill is:
January 1, 2013 to July 15, 2013
The Controller, Director of Finance, the Legislative Analyst and
the Little Hoover Commission 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, 2013.
July 16, 2013 to January 1, 2014
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, 2014, at least one member of the commission shall have
visited each state bureaucracy considered for realignment or
closure.
Before March 15, 2014
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, 2014
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, 2014
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
SB 953 (Strickland)
Page 2
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.
If the Governor approves the list as submitted, 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 be
considered and subject to Government Code provisions relating to
executive branch reorganization. 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.
Upon the reorganization plan becoming effective, the Department
of Finance shall compute the savings in state governmental
expenses that are forecast to occur due to the closure or
realignment of the state bureaucracies. The bill states it is
the intent of the Legislature that these savings be reflected in
reduced taxation or state expenditures.