BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1308
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          Date of Hearing:   June 20, 2012

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL 
                                      SECURITY
                              Warren T. Furutani, Chair
             SB 1308 (P.E.& R. Com.) - As Introduced:  February 23, 2012

           SENATE VOTE  :   37-0
           
          SUBJECT  :   State human resources functions.

           SUMMARY  :   Codifies the statutory changes that were put into 
          effect upon passage of the Governor's Reorganization Plan 1 (GRP 
          1) which consolidates the Department of Personnel Administration 
          (DPA) and the State Personnel Board (SPB) into a single agency 
          to be known as the California Department of Human Resources 
          (CalHR).  Specifically,  this bill  :   

          1)Combines the day-to-day staff operations of the DPA and SPB 
            organizations into a new, consolidated agency:  CalHR, and 
            will result in relocating the two former departments into a 
            single location (ideally by July 1, 2013.).

          2)Identifies a staff-reduction goal of 15% - 20% following 
            consolidation, which will be achieved over approximately three 
            years through attrition of existing staff in the two 
            departments.

          3)Specifies that the authority of the DPA director is 
            transferred to the CalHR director, who will be appointed by 
            the Governor and approved by the Senate.

          4)Preserves the constitutionally created, five-member SPB and 
            its constitutional role as an independent and objective merit 
            oversight organization, and retains staff dedicated to the 
            specific work of the Board, including a board-appointed 
            executive officer, an appeals division, and legal staff.  SPB 
            will have its own budget, which will not require approval by 
            CalHR.

          5)Transfers appeals of discrimination in state employment that 
            are not based on violations of the merit principle to the 
            Department of Fair Employment and Housing (DFEH) (for example, 
            general complaints of discrimination would go to DFEH; appeals 
            of state examination results based on gender, race, or other 








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            protected factors would continue to be heard by SPB).  These 
            types of cases comprise fewer than 100 of the 2,500-2,800 
            cases heard by SPB annually.

          6)Preserves intact some of the current operations and divisions 
            within DPA, such as the labor-relations division and certain 
            benefit programs, while combining other functions that overlap 
            with current administration of SPB into two new divisions:  
            the Personnel Management Division and the Statewide Services 
            Division.

          7)Includes mostly technical statutory changes, but also includes 
            provisions allowing CalHR to establish disciplinary criteria 
            applicable to adverse actions taken by appointing bodies, and 
            stating that SPB, in arriving at a decision or proposed 
            decision regarding an appeal on a disciplinary matter, shall 
            give consideration and respect to the disciplinary criteria, 
            as specified, consistent with its discretion and authority.

           EXISTING LAW  :

          Establishes, in the California Constitution, SPB and requires 
          SPB to, among other things, enforce the civil service statutes, 
          prescribe probationary periods and classifications, adopt rules 
          authorized by statute, and review disciplinary actions and 
          requires the executive officer of the SPB to administer the 
          civil service statutes under the rules of SPB.

          Establishes DPA for purposes of managing the nonmerit aspects of 
          the state's personnel system.

          Creates, through GRP 1, operative July 1, 2012, CalHR, which is 
          vested with the duties, purposes, responsibilities, and 
          jurisdiction exercised by SPB as its designee with respect to 
          SPB's administrative and ministerial functions.  

          Abolishes, through GRP 1, DPA, and transfers the functions and 
          duties performed by the DPA to CalHR.  

           FISCAL EFFECT  :  Unknown.  This bill is keyed non-fiscal by the 
          Legislative Counsel.   

           COMMENTS  :   The Committee is informed that GRP 1 eliminates 
          certain functions of SPB relating to investigating and hearing 
          complaints of discrimination in the civil service.  The plan 








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          also authorizes CalHR to establish disciplinary criteria 
          applicable to adverse actions taken by appointing bodies 
          pursuant to causes of discipline for employees and individuals 
          established pursuant to specified provisions of law.  The plan 
          requires SPB to give consideration and respect to any applicable 
          disciplinary criteria established by CalHR in making certain 
          decisions relating to disciplinary proceedings.

          According to the sponsor, DPA, "SB 1308 repeats the language in 
          GRP 1 that the Little Hoover Commission and the Legislature 
          review last year when they considered the reorganization plan.  
          Following testimony from the Administration, employee 
          representatives, and non-profit groups, the Little Hoover 
          Commission and Senate Committees on Governmental Reorganization 
          and Public Employment and Retirement recommended GRP 1 go into 
          effect."

          DPA concludes that merging DPA and SPB into a single entity, 
          CalHR, will result in the elimination of 60 positions (15% 
          reduction) over the next two fiscal years and a savings of $8.6 
          million ($3.7 General Fund).

          A companion measure, SB 1309 (Negrete McLeod) of this year, 
          makes numerous statutory changes necessary to implement the GRP 
          1.

           






          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           California Department of Human Resources (Sponsor)
           
            Opposition 
           None on file

           Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
          319-3957 










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