HomeMy WebLinkAbout1993-08-24 - AGENDA REPORTS - STATE LEGISLATION AB 665 (2)AGENDA REPORT
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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
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', 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
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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