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Governor Sends Reorganization Plan to Little Hoover Commission

April 6, 2012

Last Friday, Gov. Jerry Brown sent his Governor's Reorganization Plan (GRP) to the Little Hoover Commission (commission), activating a 90 day clock in which the Commission and Legislature have to act.


In the Feb. 3 CA Cities Advocate story "What Path for Governor's State Agency Consolidation Plans: Budget Process or Reorganization Plan?" the League outlined two possible paths that Governor could follow to implement his GRP. Those paths were either the budget process or through the commission. By sending the GRP through the commission process, the Governor not only sets a firm time limit for the consideration of the proposal, but also limits the legislature's ability to make changes.

The commission has 30 days from March 30, to review and analyze the GRP. The commission plans to hold at least one public hearing during their review process. The date for the public hearing has not yet been set. It will then be sent to the Legislature, where it will be given a number (e.g. GRP No. 1) and referred to legislative policy committees in both the Senate and Assembly. If the Legislature does not adopt a resolution to reject the plan within 60 days it becomes effective on the 61st day. Under this process the Legislature has no authority to amend the plan.

The Governor's Reorganization Plan (GRP) revises the structure of various state agencies, departments, and boards. The Governor has set an operative date of July 1, 2013 in order to allow time for the impacted agencies to plan for the necessary transfers of roles, responsibilities, funding, staff, data and relevant assets. Cities should be aware that additional program, commission, or task force eliminations may be included in the May Revise and subsequent trailer bill language. League staff will continue to monitor these developments.

If implemented, the GRP would eliminate the State and Consumer Services Agency (SCSA), Business, Transportation and Housing Agency (BTH), and Technology Agency (TA), and establish the following agencies in their stead.

Business and Consumer Services Agency (new Agency)

Department of Consumer Affairs (currently in SCSA)

  • State Board of Chiropractic Examiners
  • Bureau of Real Estate (currently in BT&H)
  • Bureau of Real Estate Appraisers (currently in BT&H)
  • Structural Pest Control Board (currently in Dept. of Pesticide Regulation)

Department of Housing and Community Development (currently in BT&H)

  • California Housing Finance Agency (currently in BT&H)

Department of Fair Employment and Housing (currently in SCSA)

Department of Business Oversight (absorbs all the roles and responsibilities of the Dept. of Corporations and Dept. of Financial Institutions, both of which would be abolished)

Department of Alcoholic Beverage Control (currently in BT&H)

Alcoholic Beverage Control Appeals Board

California Horse Racing Board

Alfred E. Alquist Seismic Safety Commission (currently in SCSA)

Government Oversight Agency (new Agency)

Office of Administrative Law

Department of Technology (currently is the California Technology Agency)

Public Employees' Retirement System (currently in SCSA)

State Teachers' Retirement System (currently in SCSA)

State Personnel Board (currently in SCSA)

California Victim Compensation and Government Claims Board (currently in SCSA)

Department of General Services (currently in SCSA)

  • California Building Standards Commission (currently in SCSA)

Franchise Tax Board (currently in SCSA)

Department of Human Resources (currently Dept. of Personnel Administration, in SCSA)


The Director, Department of Technology will be the State Chief Information Officer.

The Director, Department of Human Resources will report directly to the Governor on issues relating to labor relations.

Transportation Agency (new Agency)

California Highway Patrol (currently in BT&H)

California Transportation Commission

Department of Motor Vehicles (currently in BT&H)

Department of Transportation (currently in BT&H)

High-Speed Rail Authority

Board of Pilot Commissioners (currently in BT&H)

California Traffic Safety Program (currently in BT&H)

Governor's Office of Business and Economic Development (new - within the Governor's Office)

Small Business Loan Guarantee Program (currently in BT&H)

Office of Tourism (currently in BT&H)

California Infrastructure and Economic Development Bank (currently in BT&H)

California Film Commission (currently in BT&H)

  • Film California First Program (currently in BT&H)

Natural Resources Agency (existing Agency)

  • Adds Exposition Park (California Science Center and California African American Museum) (currently in SCSA)
  • Changes the Department of Boating and Waterways to the Division of Boating and Waterways and moves it within the Department of Parks and Resources
  • Removes the Department of Resources, Recycling and Recovery

Environmental Protection Agency (existing Agency)

  • Adds the Department of Resources, Recycling and Recovery


  • Eliminates the California Emergency Management Agency and transfers all the authority and responsibilities to the re-established Governor's Office of Emergency Services
  • Abolishes the Secretary and Office of Service & Volunteering (currently in OPR)
  • Consolidates the support, investigatory, auditing, and compliance functions of the California Gambling Control Commission and transfers those duties to the Department of Justice. The Commission would retain jurisdiction over the licensing, policies, regulations, criteria, and standards pertaining to gaming.

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