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HomeMy WebLinkAbout1993-08-24 - AGENDA REPORTS - STATE LEGISLATION AB 665 (2)AGENDA REPORT Cl Wanarl(pproval Item to be presented by: Michael P. Murphy CONSENT CALENDAR DATE: August 24, 1993 SUBJECT: State Legislation AB 665 DEPARTMENT: Management Services BACKGROUND Five consecutive years of state budget battles featuring conflicts between state and local governments over service delivery missions and revenues has prompted Assembly Member John Vasconcellos to Introduce Assembly Bill 665, establishing the Commission to Reinvent State and Local Government. The Commission to Reinvent State and Local Government would consist of 22 members; 14 appointed by the Legislature, 7 appointed by the Governor and the Chief Justice of the California Supreme Court or his designee serving as an ex -officio member. The Commission shall submit an Initial report to the Governor and Legislature not later that than October 1, 1994, setting forth specific findings and recommendations. The Commission shall cease to be operative on December 1, 1995, unless another statute Is enacted prior to January 1, 1996 to prolong the existence of the commission. The Commission is charged with several guiding principles and actions, Including but not limited to: 1. Maximizing the separation of state and local government duties through appropriate alignments and control of funding responsibilities. 2. Recognizing program linkages to promote coordination of service delivery mechanisms, removing barriers to Innovation. 3. Identification of specific incentive and sanction mechanisms to promote prevention, coordination, and performance outcomes while ensuring accountability. 4. Implementation Issues Including changes In the state Constitution, changes In laws and regulations, personnel realignments and timing and phasing of program responsibilities. AffiflayEa Agenda Item: Assembly Bill 665 Page Two AB 665 reflects much of the sentiment expressed by local government during the most recent state budget negotiations. Clearly defined responsibilities and stable revenue sources will significantly enhance service delivery at all levels of government. The City Council Legislative Committee reviewed AB 665 and while supportive of the measure suggested possible amendments. First, the composition of the commission should reflect the diversity of California to ensure that all Californians have an opportunity to be represented. Second, some meetings of the commission should be held throughout the state to ensure that regional concerns are addressed. Finally, the Legislature should be reminded that their failure to address the state and local government relationship will most likely result in some form of reform movement by special Interests. RECOMMENDATION Support Assembly Bill 665 with the Legislative Committee's suggestions for amendment and transmit statements of supportto Santa Clarita's state legislative delegation, Assembly Member Vasconcellos, appropriate legislative committees, League of California Cities, Contract Cities Association and Independent Cities Association. ATTACHMENT 1. AB 665 MPM:anab665.1c z� ', CA AB 665 07/29/93 Amended AMENDED IN ASSEMBLY JUNE 10, 1993 AMENDED IN ASSEMBLY MAY.4, 1993 AMENDED.IN ASSEMBLY APRIL 26, 1993 Page 1 ASSEMBLY BILL No. 665 _______=====vaaaaaae==aaavvaaaaaaaa=aaaaaaaasasvaaaas=axvaaacasaaaaasa_________ Introduced by Assembly Members Vasconcellos and Bronshvag February 23, 1993 aaaaaa--_---aaaacaaaa-----ae-----a=aaaasaaaaaaanaaasaaaaaasaaaaaaaaaaaaaa=amaaa An act to add and repeal Chapter 9.5 (commencing with Section 8760) of Division 1 of the Government Code, relating to the Commission to Reinvent California State and Local Government [D> , and declaring the urgency thereof, to take effect immediately <D] . LEGISLATIVE COUNSEL'S DIGEST AB 665, as amended, Vasconcellos. Commission to Reinvent State and Local Government. This bill would state that existing law should address certain perplexities surrounding antiquated government processes devised decades prior to the significant growth experienced by California in recent history. In addition, the bill would state that existing law cannot account for government's inability to respond appropriately, in too many - instances, to California's changing economic environment which, in turn, has exposed many weaknesses inherent in its system. This bill would state further that fundamental change is necessary and would .create a Commission to Reinvent State and Local Government. The membership of the commission, selected as specified, would be directed to examine the current configuration of state and local government and determine whether new approaches have the potential for significant improvements in their performance and delivery of government services to the public. This bill would also charge the commission with the responsibility of identifying any constraints or impediments that interfere with the most effective allocation of state and local responsibilities. This bill would become inoperative on -[D> February <D] [A> December <A] 1, 1995, and would be repealed on January 1, 1996, unless a later enacted statute, which is that date, deletes or extends the date. [D> This bill would declare that it is to take effect immediately as an urgency statute. <D] Vote: [D>.2/3 <D] [A> majority <A] . Appropriations no. Fiscal committee: yes. State -mandated local piograms no. CA AH 665 07/29/93 The people of the State.of California do enact as follows Page 2 SECTION 1. The Legislature finds and declares all of the following: (a) California's existing "system" of government is dysfunctional and does not work together sufficiently to achieve the public's goals. The various components have no common conception of mission and often work at cross-purposes. (b) Local governments complain that state requirements interfere with their ability to address local community needs. The state, in turn, issues more requirements to ensure that its service objectives are uniformly achieved. [D> Thus,.governments compete.to obtain larger shares of dwindling resources. Citizens <D] [A> The level of government delivering a service is often not the level of government setting program rules or providing the funding. Citizens <A] observe declining levels and quality of services and find they cannot hold any particular agency responsible. (c) The relationship between the state and local governments is characterized by fiscal and programmatic tension. Scarce resources and increasing service demands at all levels of government dominate the picture. These conditions have exacerbated long -existing conflicts over the state's role in determining local government spending priorities and the state's control over local program and fiscal decisions. (d) The increased fiscal pressure has exposed other weaknesses inherent in our system, including encouragement of cost -shifting between levels and entities of government, and the lack of accountability for program results. (e) Fundamental change is necessary. These [D> programs <D] [A> problems <A] are inherent to our system, and stem from a failure to assign clear responsibilities among government agencies and provide the necessary authority and tools. (f) The key to achieving greater effectiveness is promoting the interest of local communities in working together towards common goals. Local entities --schools, cities, [D> and counties <D] [A> counties, and special districts <A) --share a common interest in achieving the [D> higher <D] levels of health, productivity, and safety their local citizens desire, but currently pursue individual goals in a disparate fashion. (g) The state has an interest in the success of local communities, as this translates into lower demands for state services and a stronger economy. The state's existing fiscal relationship with local governments, however, is threatening local government survival. (h) Local agencies must be given greater flexibility as to [D> delivery choices <D] [A> service delivery methods <A] , but should be held more accountable for both program failures and successes. Only in this way can the Legislature assure the achievement of the public's goals, the future health of the California economy, and the fiscal integrity of.its governmental entities. 11, CA AB 665 07/29/93 Page 3 (i) Prior to this current recession, California experienced steady growth in state spending. Between 1965-66 and 1989-90 fiscal years, General Fund spending ipereased at an average annual rate of 12 percent. As a result of this growth, the state now has almost 100 departments administering hundreds of programs. Given the virtually uninterrupted growth in state revenues over that time period, the state did not have a pressing need to reevaluate many of these programs. As a result, there are numerous cases of program duplication, irrelevant missions, and outdated practices. (j) Not only has the public sector grown significantly, it has become much more complex. The passage of Propositions 13 and 98, alone, has drastically altered and complicated the relationship between the state and local governments. In addition, the federal government is far more involved in state affairs, as are the courts. As a result of these factors, government has become more centralized, and more .process -oriented, and infinitely more complicated. (k) Many of the processes used in state government were devised decades ago. New approaches have the potential for significant improvements in program operation. (1) It is likely the state will face budget gaps in future years. Projected expenditures will exceed revenues for several years. Restructuring efforts can help bridge those gaps. (m) The public sector suffers from a lack of public confidence. Restructuring efforts can address this problem to the extent that it improves services.to the public and at equal or less cost. SEC: 2. Chapter 9.5'(commencing with Section 8760) is added to Division 1 of the Government Code, to reads CHAPTER 9.5. COMMISSION To REINVENT CALIFORNIA STATE AND LOCAL GOVEP104M 8760. There is created in state government the Commission to Reinvent California State and Local Government. 8761. (a) The commission shall consist.of [D> 15 <D] [A> seven <A] members appointed by the Governor, [D> 15 <D] [A> seven <A] members appointed by the Senate Committee on Rules, [D> 15 <D] [A> seven <A] members appointed by the Speaker of the Assembly,.and the Chief Justice of California or his or her designee, who shall serve as an ex officio member. The Governor, the Senate Committee on Rules,'and the Speaker of the Assembly may each appoint no more than one Member of the Legislature to the commission. No lobbyist, as defined by Section 82039, may serve as a member of the commission. The membership of the commission shall broadly reflect the ethnic, racial, cultural, economic, geographic, and gender diversity of the state. The commission shall also reflect a broad cross-section of Californians, including representatives of business, private nonprofit organizations; consumers, taxpayers, users of public services, [D> and local governments <D] [A> local governments, and school districts <A] . . CA AB 665 07/29/93 Page 4 (b) The initial appointments to the commission shall be made not later that 60 days after the statute that added this chapter becomes operative. Any appointments that are not made by the Governor within this period shall be made by the Senate Committee on Rules or the Speaker of the Assembly, alternating in that order. Any appointments that are not made by the Senate Committee on Rules or the Speaker of the Assembly within this period shall be made by the Governor. A member may be removed by the actual appointing power only for gross misconduct or neglect of duty, and any vacancy shall be filled by the actual appointing power. 8762. Each member of the commission shall serve without compensation, but shall [D> receive one hundred dollars ($100) for each day while on official business of the commission. In addition, each member shall also be <D] [A> be <A] entitled to receive necessary expenses actually incurred in the performance of his or her duties. 8763. (a) The commission shall select one of its members as the chair of the commission. (b) The commission may appoint an executive secretary and fix his or her compensation in accordance with law. The commission may employ and fix the compensation,- in accordance with law, of any professional, clerical, and other assistants that may be necessary. (c) The Legislative Counsel, Legislative Analyst, Auditor General, and Department of Finance shall assist the commission in the -performance of its duties. 8764. The commission shall assist the Governor and the Legislature by examining the current configuration of state and local government duties, responsibilities, and priorities; the fiscal relations of state and local governments; the types -of services delivered, mechanisms of service delivery, desired program outcomes, and methods of performance measurement; and any constraints or impediments that interfere with the most effective allocation of state and local responsibilities. [A> The commission shall be guided in its efforts by the following Principles of reforms <A] [A> (a) Maximize separation of state and local government duties through appropriate alignments of control and funding responsibilities. <A] [A> (b) Match redistributive programs with redistributive revenue sources at the highest level of government. <A] [A> (c) Recognize program linkages to promote coordination of service delivery mechanisms, removing barriers to innovation. <A] [A> (d)Rely on financial incentives to promote prevention and coordination. <A] 8765. Notwithstanding Section 7550.5, the commission shall submit an initial report to the Governor and the Legislature no later than [D> January 1, 1994, that sets forth its findings with respect to the allocation of state and local government responsibilities and i - CA AB 665 07/29/93 Page 5 recommendations for the improvement of that allocation. The commission should submit interim reports before or after that date whenever it makes a finding and recommendation on a specific topic related to state and local fiscal relations or responsibilities. <D] [A> October 1, 1994, that sets forth its findings and recommendations with respect to the following: <A] [A> (a) Changes that should be made in the assignment of primary program and service delivery responsibility at the state and local levels. <A] [A> (b) Changes that should be made in state and a local revenue sources to support the suggested assignment changes. <A] [A> (c) An identification of specific incentive and sanction mechanisms to promote prevention, coordination, and performance outcomes; and ensure accountability. <A] [A>.(d) Implementation issues that must be addressed when restructuring the state and local relationship, including, but not limited to: ' recommended changes to the state constitution, federal and state laws and regulations; transfer of title for utilization of public facilities; transition of public employees between state and local levels of government; and the timing for phasing in the suggested changes in the assignment of program responsibilities. <A] [A> The commission should submit additional reports before or after that date as appropriate. <A] 8766. In carrying out its duties and responsibilities, the commission shall have the following powers: (a) To meet at such times and places as it may deem proper. The commission is a state body subject to the provisions of the Bagley -Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3). (b) To issue subpoenas to compel the attendance of witnesses and the production of books, records, papers, accounts, reports, and documents. (c) To administer oaths. (d) To contract, as it deems necessary, for the rendition of services, facilities, studies, and.reports to the commission as will best assist it to carry out its duties and responsibilities. (e) To.cooperate with and to secure the cooperation of county, city, city and county, and other local law enforcement agencies in investigating any matter within the scope of its duties and responsibilities, and to direct the sheriff of any county or any marshal to serve subpoenas, orders, and.other process. (f) To secure directly from every department, agency, or instrumentality -full cooperation, access to its records, and access to any information, suggestions, estimates, data, and statistics that it may have available. tiCA AB 665 07/29/93 Page 6 (g) To do any and all things necessary or convenient to enable it fully and adequately to perform its duties and to exercise the powers expressly granted to it. - 8767. The commission shall become inoperative on [D> February 1 <D] [A> December 1 <A] , 1995, and as of January 1, 1996, this chapter is repealed, unless a later enacted statute, which is chaptered before that date, deletes or extends that date. [D> SEC. 3. This act is an urgency statue necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article N of the Constitution and shall go into immediate effect. The facts constituting the necessity are: <D] [D> In order that the commission begin its work as expeditiously as possible, it is necessary that this act take effect immediately. <D] END OF REPORT