BILL NUMBER: SB 1039 ENROLLED
BILL TEXT
PASSED THE SENATE JULY 5, 2012
PASSED THE ASSEMBLY JULY 2, 2012
AMENDED IN ASSEMBLY JULY 2, 2012
AMENDED IN ASSEMBLY JUNE 25, 2012
INTRODUCED BY Senator Steinberg
FEBRUARY 6, 2012
An act to amend Sections 100, 19404, 23050, and 23075 of the
Business and Professions Code, to amend Section 300 of the Financial
Code, to amend Sections 8870.1, 8870.2, 11535, 11546.1, 11550, 12800,
12804.5, 12855, 12856, 12901, 12944, and 13978.6 of, and to add
Section 12804 to, the Government Code, and to amend Sections 50400,
50901, and 50913 of, and to add Section 50407.5 to, the Health and
Safety Code, relating to state government.
LEGISLATIVE COUNSEL'S DIGEST
SB 1039, Steinberg. State government: Business, Consumer Services,
and Housing Agency.
Under existing law, the executive branch of state government
includes the State and Consumer Services Agency. Under existing law,
the State and Consumer Services Agency is comprised of the Department
of General Services, the Department of Consumer Affairs, the
Franchise Tax Board, the Public Employees' Retirement System, the
State Teachers' 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.
This bill would eliminate the State and Consumer Services Agency
and instead establish in state government the Business, Consumer
Services, and Housing Agency, comprised of the Department of Consumer
Affairs, the Department of Housing and Community Development, the
Department of Fair Employment and Housing, the Department of Business
Oversight, the Department of Alcoholic Beverage Control, the
Alcoholic Beverage Control Appeals Board, the California Horse Racing
Board, and the Alfred E. Alquist Seismic Safety Commission. The bill
would make conforming changes necessary to effectuate certain
provisions of the Governor's Reorganization Plan No. 2 of 2012.
The bill would require, notwithstanding these changes, 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.
This bill would provide that certain provisions of this bill shall
prevail over specified provisions of the Governor's Reorganization
Plan No. 2 of 2012, regardless of the dates on which this bill and
the plan take effect.
This bill would provide that its provisions shall become operative
only if the Governor's Reorganization Plan No. 2 of 2012 becomes
effective.
This bill would provide that its provisions shall become operative
on July 1, 2013.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 100 of the Business and Professions Code is
amended to read:
100. There is in the state government, in the Business, Consumer
Services, and Housing Agency, a Department of Consumer Affairs.
SEC. 2. Section 19404 of the Business and Professions Code is
amended to read:
19404. "Board" means the California Horse Racing Board within the
Business, Consumer Services, and Housing Agency.
SEC. 3. Section 23050 of the Business and Professions Code is
amended to read:
23050. There is in the state government, in the Business,
Consumer Services, and Housing Agency, a Department of Alcoholic
Beverage Control. The department shall be administered through a
civil executive officer who shall be known as the Director of
Alcoholic Beverage Control. The director shall be appointed and shall
serve as provided in Section 22 of Article XX of the Constitution
and shall receive an annual salary as provided for by Chapter 6 of
Part 1 of Division 3 of Title 2 of the Government Code.
SEC. 4. Section 23075 of the Business and Professions Code is
amended to read:
23075. There is in the state government, in the Business,
Consumer Services, and Housing Agency, an Alcoholic Beverage Control
Appeals Board the members of which shall be appointed and shall serve
as provided in Section 22 of Article XX of the Constitution, and
shall receive an annual salary as provided for by Chapter 6
(commencing with Section 11550) of Part 1 of Division 3 of Title 2 of
the Government Code.
SEC. 5. Section 300 of the Financial Code is amended to read:
300. (a) In this section:
(1) "Business and industrial development corporation" means a
corporation licensed under Division 15 (commencing with Section
31000).
(2) "Payment instrument" has the same meaning as set forth in
Section 33059.
(3) "Traveler's check" has the same meaning as set forth in
Section 1803.
(b) There is in the state government, in the Business, Consumer
Services, and Housing Agency, a Department of Business Oversight,
which has charge of the execution of, among other laws, the laws of
this state relating to any of the following: (1) banks or trust
companies or the banking or trust business; (2) savings associations
or the savings association business; (3) credit unions or the credit
union business; (4) persons who engage in the business of receiving
money for transmission to foreign nations or such business; (5)
issuers of traveler's checks or the traveler's check business; (6)
issuers of payment instruments or the payment instrument business;
(7) business and industrial development corporations or the business
and industrial development corporation business, or (8) insurance
premium finance agencies or the insurance premium finance business.
SEC. 6. Section 8870.1 of the Government Code is amended to read:
8870.1. (a) (1) There is created in the state government the
Alfred E. Alquist Seismic Safety Commission as an independent unit
within the Business, Consumer Services, and Housing Agency.
(2) Any reference in statute or regulation to the Seismic Safety
Commission shall be deemed to refer to the Alfred E. Alquist Seismic
Safety Commission.
(b) The commission shall report annually to the Governor and to
the Legislature on its findings, progress, and recommendations
relating to earthquake hazard reduction, and any other seismic safety
issues, as requested by the Governor or the Legislature.
SEC. 7. Section 8870.2 of the Government Code is amended to read:
8870.2. (a) The Alfred E. Alquist Seismic Safety Commission shall
consist of 15 members appointed by the Governor and confirmed by the
Senate, one member representing the Office of Emergency Services,
one member representing the Division of the State Architect in the
Department of General Services, one member representing the
California Building Standards Commission, one member appointed by the
Senate Committee on Rules, and one member appointed by the Speaker
of the Assembly. The commission shall elect annually from its
membership its own chairperson and vice chairperson and may replace
them with other commissioners by majority vote. Commission members
shall be residents of California.
(b) A quorum shall consist of 11 members if there are no
vacancies, or else a majority of the members of the commission at the
time.
(c) The Legislature declares that the individuals appointed to the
commission are intended to represent the professions of
architecture, planning, fire protection, public utilities, structural
engineering, geotechnical engineering, geology, seismology, local
government, insurance, social services, emergency services, and the
Legislature and that such representation serves the public interest.
Accordingly, the Legislature finds that for purposes of persons who
hold this office the specified professions are tantamount to and
constitute the public generally within the meaning of Section 87103.
(d) The commission exists as a separate unit within the Business,
Consumer Services, and Housing Agency, and has the functions of
prescribing policy, holding meetings and setting dates of the
meetings, conducting investigations, and holding hearings insofar as
those powers are given by statute to the commission.
(e) The decisions and actions of the commission, with respect to
exercising its authority and carrying out its duties under this
chapter, or any other applicable law, are not subject to review by
the Secretary of Business, Consumer Services, and Housing, but are
final within the limits provided by this chapter.
(f) The Legislature further declares that the highest level of
service that the individuals appointed to the commission can provide
to the residents of California is to offer professional, unbiased,
scientifically based advice to the Governor and the Legislature. To
maintain this quality of service, it is imperative that the
commission retain its functional autonomy and access to the Governor
and the Legislature. As such, the commission shall retain its
existing authority to issue reports, publications, and literature, as
well as to sponsor legislation, and to take official positions on
proposed state and federal legislation.
SEC. 8. Section 11535 of the Government Code is amended to read:
11535. (a) There is, in the Department of Technology, the
Technology Services Board.
(b) The board shall consist of 13 members, as follows:
(1) The Director of Technology, who shall serve as the chair of
the board.
(2) The Director of Finance, who shall serve as vice chair of the
board.
(3) The Controller.
(4) The Secretary of Food and Agriculture, the Secretary of
Transportation, the Secretary of the Department of Corrections and
Rehabilitation, the Secretary for Environmental Protection, the
Secretary of California Health and Human Services, the Secretary of
Labor and Workforce Development, the Secretary of the Natural
Resources Agency, the Secretary of Business, Consumer Services, and
Housing, and the Secretary of Veterans Affairs.
(5) The Director of Emergency Services.
SEC. 9. Section 11546.1 of the Government Code is amended to read:
11546.1. The Department of Technology shall improve the
governance and implementation of information technology by
standardizing reporting relationships, roles, and responsibilities
for setting information technology priorities.
(a) (1) Each state agency shall have a chief information officer
who is appointed by the head of the state agency, or by the head's
designee, subject to the approval of the Department of Technology.
(2) A chief information officer appointed under this subdivision
shall do all of the following:
(A) Oversee the information technology portfolio and information
technology services within his or her state agency through the
operational oversight of information technology budgets of
departments, boards, bureaus, and offices within the state agency.
(B) Develop the enterprise architecture for his or her state
agency, subject to the review and approval of the Department of
Technology, to rationalize, standardize, and consolidate information
technology applications, assets, infrastructure, data, and procedures
for all departments, boards, bureaus, and offices within the state
agency.
(C) Ensure that all departments, boards, bureaus, and offices
within the state agency are in compliance with the state information
technology policy.
(b) (1) Each state entity shall have a chief information officer
who is appointed by the head of the state entity.
(2) A chief information officer appointed under this subdivision
shall do all of the following:
(A) Supervise all information technology and telecommunications
activities within his or her state entity, including, but not limited
to, information technology, information security, and
telecommunications personnel, contractors, systems, assets, projects,
purchases, and contracts.
(B) Ensure the entity conforms with state information technology
and telecommunications policy and enterprise architecture.
(c) Each state agency shall have an information security officer
appointed by the head of the state agency, or the head's designee,
subject to the approval by the Department of Technology. The state
agency's information security officer appointed under this
subdivision shall report to the state agency's chief information
officer.
(d) Each state entity shall have an information security officer
who is appointed by the head of the state entity. An information
security officer shall report to the chief information officer of his
or her state entity. The Department of Technology shall develop
specific qualification criteria for an information security officer.
If a state entity cannot fund a position for an information security
officer, the entity's chief information officer shall perform the
duties assigned to the information security officer. The chief
information officer shall coordinate with the Department of
Technology for any necessary support.
(e) (1) For purposes of this section, "state agency" means the
Transportation Agency, Department of Corrections and Rehabilitation,
Department of Veterans Affairs, Business, Consumer Services, and
Housing Agency, Natural Resources Agency, California Health and Human
Services Agency, California Environmental Protection Agency, Labor
and Workforce Development Agency, and Department of Food and
Agriculture.
(2) For purposes of this section, "state entity" means an entity
within the executive branch that is under the direct authority of the
Governor, including, but not limited to, all departments, boards,
bureaus, commissions, councils, and offices that are not defined as a
"state agency" pursuant to paragraph (1).
(f) A state entity that is not defined under subdivision (e) may
voluntarily comply with any of the requirements of Sections 11546.2
and 11546.3 and may request assistance from the Department of
Technology to do so.
SEC. 10. Section 11550 of the Government Code is amended to read:
11550. (a) Effective January 1, 1988, an annual salary of
ninety-one thousand fifty-four dollars ($91,054) shall be paid to
each of the following:
(1) Director of Finance.
(2) Secretary of Transportation.
(3) Secretary of the Natural Resources Agency.
(4) Secretary of California Health and Human Services.
(5) Secretary of Business, Consumer Services, and Housing.
(6) Commissioner of the California Highway Patrol.
(7) Secretary of the Department of Corrections and Rehabilitation.
(8) Secretary of Food and Agriculture.
(9) Secretary of Veterans Affairs.
(10) Secretary of Labor and Workforce Development.
(11) Secretary for Environmental Protection.
(12) Secretary of Government Operations.
(b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
SEC. 11. Section 12800 of the Government Code is amended to read:
12800. (a) There are in the state government the following
agencies: Business, Consumer Services, and Housing; Transportation;
California Environmental Protection; California Health and Human
Services; Labor and Workforce Development; Natural Resources;
Government Operations; and Corrections and Rehabilitation.
(b) The secretary of an agency shall be generally responsible for
the sound fiscal management of each department, office, or other unit
within the agency. The secretary shall review and approve the
proposed budget of each department, office, or other unit. The
secretary shall hold the head of each department, office, or other
unit responsible for management control over the administrative,
fiscal, and program performance of his or her department, office, or
other unit. The secretary shall review the operations and evaluate
the performance at appropriate intervals of each department, office,
or other unit, and shall seek continually to improve the organization
structure, the operating policies, and the management information
systems of each department, office, or other unit.
SEC. 12. Section 12804 is added to the Government Code, to read:
12804. (a) There is in the state government the Business,
Consumer Services, and Housing Agency.
(b) The Business, Consumer Services, and Housing Agency shall
consist of the following: the Department of Consumer Affairs, the
Department of Housing and Community Development, the Department of
Fair Employment and Housing, the Department of Business Oversight,
the Department of Alcoholic Beverage Control, the Alcoholic Beverage
Control Appeals Board, the California Horse Racing Board, and the
Alfred E. Alquist Seismic Safety Commission.
SEC. 13. Section 12804.5 of the Government Code is amended to
read:
12804.5. The Secretary of Business, Consumer Services, and
Housing is hereby authorized to develop programs for technical and
fiscal assistance to facilitate nonprofit, self-help community
vegetable gardens and related supporting activities.
SEC. 14. Section 12855 of the Government Code is amended to read:
12855. For the purpose of this chapter, "agency" means the
Business, Consumer Services, and Housing Agency, the California
Environmental Protection Agency, the California Health and Human
Services Agency, the Natural Resources Agency, the Labor and
Workforce Development Agency, the Government Operations Agency, the
Transportation Agency, or the Corrections and Rehabilitation Agency,
and "secretary" means the secretary of any such agency.
SEC. 15. Section 12856 of the Government Code is amended to read:
12856. In addition to any other provision of law, the Secretary
of Business, Consumer Services, and Housing may appoint an assistant,
who is exempt from the civil service laws. The secretary shall
prescribe the duties of the appointed assistant and shall fix the
salary of such assistant subject to the approval of the Director of
Finance. The appointed assistant shall serve at the pleasure of the
secretary.
SEC. 16. Section 12901 of the Government Code is amended to read:
12901. There is in the state government, in the Business,
Consumer Services, and Housing Agency, the Department of Fair
Employment and Housing. The department is under the direction of an
executive officer known as the Director of Fair Employment and
Housing, who is appointed by the Governor, subject to confirmation by
the Senate, and who holds office at the pleasure of the Governor.
The annual salary of the director is provided for by Chapter 6
(commencing with Section 11550) of Part 1 of Division 3 of Title 2.
SEC. 17. Section 12944 of the Government Code is amended to read:
12944. (a) It shall be unlawful for a licensing board to require
any examination or establish any other qualification for licensing
that has an adverse impact on any class by virtue of its race, creed,
color, national origin or ancestry, sex, gender, gender identity,
gender expression, age, medical condition, genetic information,
physical disability, mental disability, or sexual orientation, unless
the practice can be demonstrated to be job related.
Where the commission, after hearing, determines that an
examination is unlawful under this subdivision, the licensing board
may continue to use and rely on the examination until such time as
judicial review by the superior court of the determination is
exhausted.
If an examination or other qualification for licensing is
determined to be unlawful under this section, that determination
shall not void, limit, repeal, or otherwise affect any right,
privilege, status, or responsibility previously conferred upon any
person by the examination or by a license issued in reliance on the
examination or qualification.
(b) It shall be unlawful for a licensing board to fail or refuse
to make reasonable accommodation to an individual's mental or
physical disability or medical condition.
(c) It shall be unlawful for any licensing board, unless
specifically acting in accordance with federal equal employment
opportunity guidelines or regulations approved by the commission, to
print or circulate or cause to be printed or circulated any
publication, or to make any non-job-related inquiry, either verbal or
through use of an application form, which expresses, directly or
indirectly, any limitation, specification, or discrimination as to
race, religious creed, color, national origin, ancestry, physical
disability, mental disability, medical condition, genetic
information, sex, gender, gender identity, gender expression, age, or
sexual orientation or any intent to make any such limitation,
specification, or discrimination. Nothing in this subdivision shall
prohibit any licensing board from making, in connection with
prospective licensure or certification, an inquiry as to, or a
request for information regarding, the physical fitness of applicants
if that inquiry or request for information is directly related and
pertinent to the license or the licensed position the applicant is
applying for. Nothing in this subdivision shall prohibit any
licensing board, in connection with prospective examinations,
licensure, or certification, from inviting individuals with physical
or mental disabilities to request reasonable accommodations or from
making inquiries related to reasonable accommodations.
(d) It is unlawful for a licensing board to discriminate against
any person because the person has filed a complaint, testified, or
assisted in any proceeding under this part.
(e) It is unlawful for any licensing board to fail to keep records
of applications for licensing or certification for a period of two
years following the date of receipt of the applications.
(f) As used in this section, "licensing board" means any state
board, agency, or authority in the Business, Consumer Services, and
Housing Agency that has the authority to grant licenses or
certificates which are prerequisites to employment eligibility or
professional status.
SEC. 18. Section 13978.6 of the Government Code is amended to
read:
13978.6. (a) There is in the Business, Consumer Services, and
Housing Agency a Department of Business Oversight containing the
Division of Corporations, which has the responsibility for
administering various laws. In order to effectively support the
Division of Corporations in the administration of these laws, there
is hereby established the State Corporations Fund. All expenses and
salaries of the Division of Corporations shall be paid out of the
State Corporations Fund. Therefore, notwithstanding any provision of
any law administered by the Division of Corporations declaring that
fees, reimbursements, assessments, or other money or amounts charged
and collected by the Division of Corporations under these laws are to
be delivered or transmitted to the Treasurer and deposited to the
credit of the General Fund, all fees, reimbursements, assessments,
and other money or amounts charged and collected under these laws
shall be delivered or transmitted to the Treasurer and deposited to
the credit of the State Corporations Fund.
(b) Funds appropriated from the State Corporations Fund and made
available for expenditure for any law or program of the Division of
Corporations may come from the following:
(1) Fees and any other amounts charged and collected pursuant to
Section 25608 of the Corporations Code, except for fees and other
amounts charged and collected pursuant to subdivisions (o) to (r),
inclusive, of Section 25608 of the Corporations Code.
(2) Fees collected pursuant to subdivisions (a), (b), (c), and (d)
of Section 25608.1 of the Corporations Code.
SEC. 19. Section 50400 of the Health and Safety Code is amended to
read:
50400. The Department of Housing and Community Development is
hereby continued in existence in the Business, Consumer Services, and
Housing Agency.
SEC. 20. Section 50407.5 is added to the Health and Safety Code,
to read:
50407.5. Notwithstanding the transfer of the department from the
Business, Transportation, and Housing Agency to the Business,
Consumer Services, and Housing Agency, the department, the Department
of Transportation, and the California Transportation Commission
shall coordinate state housing and transportation policies and
programs to help achieve state and regional planning priorities and
to maximize cobenefits of infrastructure investments.
SEC. 21. Section 50901 of the Health and Safety Code is amended to
read:
50901. The agency shall be administered by a board of directors
consisting of 11 voting members, including a chairperson selected by
the Governor from among his or her appointees. The Treasurer, the
Secretary of Business, Consumer Services, and Housing, and the
Director of Housing and Community Development, or their designees,
shall be members, in addition to six members appointed by the
Governor, one member appointed by the Speaker of the Assembly, and
one member appointed by the Senate Committee on Rules. The Director
of Finance, the Director of Planning and Research, and the executive
director of the agency shall serve as nonvoting ex officio members of
the board.
SEC. 22. Section 50913 of the Health and Safety Code is amended to
read:
50913. For its activities under this division, the executive
director shall prepare a preliminary budget on or before December 1
of each year for the ensuing fiscal year to be reviewed by the
Secretary of Business, Consumer Services, and Housing, the Director
of Finance, and the Joint Legislative Budget Committee.
SEC. 23. (a) Notwithstanding Section 12080.8 of the Government
Code or any other law, Sections 1 to 19, inclusive, and Sections 21
and 22 of this act shall prevail over Sections 1, 23, 32, 33, 45,
158, 159, 178, 188, 196, 199, 202, 203, 207, 208, 209, 210, 215, 285,
287, and 288 of the Governor's Reorganization Plan No. 2 of 2012,
regardless of the dates on which this act and that plan take effect.
(b) This act, including subdivision (a), shall become operative
only if the Governor's Reorganization Plan No. 2 of 2012 becomes
effective.
(c) Except as otherwise provided in subdivision (b), Sections 1 to
22, inclusive, of this act shall become operative on July 1, 2013.