BILL ANALYSIS �
Bill No: SB
1039
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
SB 1039 Author: Steinberg
As Amended: July 2, 2012
Hearing Date: July 2, 2012
Consultant: Art Terzakis
SUBJECT
Business, Consumer Services and Housing Agency
DESCRIPTION
SB 1039 proposes to modify the Governor's Reorganization
Plan No. 2 of 2012 (GRP 2) as follows:
1)Renames the Business and Consumer Services Agency as the
Business, Consumer Services, and Housing Agency.
2)Requires the Department of Housing and Community
Development, the Department of Transportation and the
California Transportation Commission to coordinate state
housing and transportation policies and programs to help
achieve state and regional planning priorities and to
maximize co-benefits of infrastructure investments.
3)Stipulates that the provisions of this act shall prevail
over specified provisions of GRP 2 regardless of the
dates on which this act and GRP 2 take effect.
4)Provides that this act shall become operative only if GRP
2 becomes effective and makes it explicit that the
provisions of this act shall become operative on
07/01/2013.
EXISTING LAW
Existing law provides for the State and Consumer Services
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Agency within the executive branch of government consisting
of the Department of General Services, the Department of
Consumer Affairs, the Franchise Tax Board, the Public
Employees' Retirement System, the State Teacher's
Retirement System, the Department of Fair Employment and
Housing, the Fair Employment and Housing Commission, the
California Science Center, the California Victim
Compensation and Government Claims Board, the California
African-American Museum, the California Building Standards
Commission, the Alfred E. Alquist Seismic Safety
Commission, and the Office of Privacy Protection.
The California Department of Housing and Community is a
department currently within the Business, Transportation
and Housing Agency that develops housing policy and
building codes, regulates manufactured homes and mobile
home parks, and administers housing finance, economic
development and community development programs.
The California Housing Finance Agency (CalHFA) is a
California state agency within the Business, Transportation
and Housing Agency that makes low-rate loans through the
sale of taxable and tax exempt bonds. CalHFA provides
assistance in below-market interest rate mortgages and down
payment assistance for first-time homebuyers, insurance for
single-family home purchase mortgages, and loans for the
development of multifamily rental housing. The operating
costs of the agency are paid by origination and service
fees, and the difference between the interest paid on
outstanding debt and the interest charged on the loans
made.
The California Constitution authorizes the Legislature to
delegate to the Governor the authority to assign and
reorganize functions among executive branch officers,
agencies and their employees. The Governor's authority to
reorganize does not extend to other constitutional offices
(California Constitution, Article V, Section 6). Existing
law specifies the process for reorganization and places
limits on that authority.
Additionally, existing law specifies the purposes of the
Governor's reorganization authority, in the form of a GRP
is to enable the Governor to promote improved strategies
for: executing the law; managing state government; reducing
expenditures; increasing efficiency; improving coordination
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among agencies and functions; reducing the number of
agencies; and, eliminating duplication and overlap among
agencies.
BACKGROUND
Governor's Reorganization Plan Process: As stipulated in
Government Code Section 12080 et seq, the Governor is
required to submit any reorganization plan to the Milton
Marks Commission on California State Government
Organization and Economy (Little Hoover Commission) at
least 30 days prior to submitting the plan to the
Legislature. The Little Hoover Commission's role in the
reorganization process is only advisory - it reviews and
submits a report to the Governor and the Legislature within
30 days of the Plan being submitted to the Legislature.
Existing law also provides that any GRP becomes law after
60 days unless either House of the Legislature adopts a
resolution rejecting the proposal.
Governor's Reorganization Plan No. 2 of 2012: GRP 2
(introduced May 3, 2012) would create three new agencies by
relocating departments in three existing agencies with the
goal of grouping like functions more closely together and
reducing the number of agencies from 12 to 10 overall. It
would also make a series of other moves, as specified.
With respect to the existing State and Consumer Services
Agency, GRP 2 would eliminate the agency and create the new
Business and Consumer Services Agency consisting of
business-related departments currently in the Business,
Transportation and Housing Agency along with
consumer-related departments currently within the State and
Consumer Services Agency. The make-up of the new Business
and Consumer Services Agency would be as follows:
Department of Consumer Affairs, Department of Fair
Employment and Housing, Department of Business Oversight,
Department of Housing and Community Development, Department
of Alcoholic Beverage Control, Alcoholic Beverage Control
Appeals Board, California Horse Racing Board, and Alfred E.
Alquist Seismic Safety Commission. Furthermore, the
California Housing Finance Agency would be transferred into
the Department of Housing and Community Development - thus,
it will no longer be separate and distinct.
On May 22, 2012, the Little Hoover Commission released its
report of GRP 2 and recommended that the Plan be allowed to
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go into effect. The deadline for a Legislative resolution
affirmatively disapproving GRP 2 is July 2, 2012. If the
Legislature takes no action, GRP 2 becomes effective on
July 3, 2012 and operative on July 1, 2013.
Purpose of SB 1039: On May 23, 2012, the Senate Committee
on Governmental Organization and the Senate Governance and
Finance Committee held a joint informational hearing to
review GRP 2 in its entirety.
One of the concerns raised with respect to GRP 2 was the
perception of a lack of representation of housing issues
within the new Business and Consumer Services Agency.
According to the author's office, this measure simply
includes "housing" within the title of the new agency to
highlight its importance and the Legislature's on-going
commitment to the importance of ensuring affordable housing
throughout the state.
Additionally, the author's office points out that as
transportation and housing decisions are increasingly
linked in regional planning, it is crucial to give
direction to the agencies to maintain cooperative
discussions. Thus, this measure would require the
Department of Housing and Community Development, the
Department of Transportation and the California
Transportation Commission to coordinate state housing and
transportation policies to further that goal.
RELATED LEGISLATION
AB 1498 (Buchanan) 2011-12 Session. Would modify the
Governor's Reorganization Plan No. 2 of 2012 so that the
Director of Technology reports directly to the Governor on
issues relating to information technology. Also, would
declare the intent of the Legislature that a plan for
transitioning information technology procurement authority
from the Department of General Services to the Department
of Technology be developed by the administration. (Pending
in this committee)
AB 1458 (Buchanan) 2011-12 Session. Would provide that
notwithstanding the Governor's Reorganization Plan No. 2 of
2012, the California Transportation Commission shall retain
independent authority to perform its duties as prescribed
under law. (Pending in this committee)
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AB 1019 (Buchanan) 2011-12 Session. Would modify the
Governor's Reorganization Plan No. 2 of 2012 by making
changes to provisions related to reorganization of the
Sixth District Agricultural Association which consists of
the California African American Museum, the California
Science Center, and Exposition Park, all in Los Angeles. It
would also delete the provisions of the GRP that move the
Delta Stewardship Council under the jurisdiction of the
Natural Resources Agency. (Pending in this committee)
AB 737 (Buchanan) 2011-12 Session. Would modify the
Governor's Reorganization Plan No. 2 of 2012 by
re-establishing the Boating and Waterways Commission within
the Division of Boating and Waterways under the Department
of Parks and Recreation. (Pending in this committee)
SUPPORT: None on file as of July 2, 2012.
OPPOSE: None on file as of July 2, 2012.
FISCAL COMMITTEE: Senate Appropriations Committee
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