Micheli Files
Basics of a governor’s reorganization plan
Editor’s Note: This is a special bonus edition of the Micheli Files.
With Governor Gavin Newsom proposing two new state agencies (both a new Consumer Protection Agency and a Housing and Homelessness Agency) to be created as part of the 2025-26 budget, I thought it would be helpful to take a look at how a Governor’s Reorganization Plan (GRP) is enacted.
What Is a GRP?
The California Constitution grants the Governor, subject to approval by the Legislature, the authority to “assign and reorganize functions among executive officers and agencies and their employees.” A reorganization of the executive branch of government is called a “Governor’s Reorganization Plan,” or more commonly known as a “GRP.”
What the Constitution Provides
Article 5, Section 6 of the California Constitution authorizes a statute to allow the Governor to reorganize functions among state agencies other than the other constitutional offices. As such, a GRP is actually a bill that is submitted to the Legislature for its approval. A GRP bill is introduced after its consideration by the Little Hoover Commission (LHC) at least 30 days prior to the GRP’s submission to the Legislature. The LHC’s role is set forth in Government Code Section 8523, which was put into statute in 1974 by Chapter 1242.
The GRP Process
Following review and one or more public hearings on the proposed GRP, the Little Hoover Commission offers a recommendation to the Legislature to either allow the GRP to go into effect or to reject the GRP. Each house of the Legislature thereafter has 60 calendar days to act on the GRP. The GRP takes effect on the 61st day after submission to the Legislature, unless a resolution rejecting the GRP is adopted by both the Senate and Assembly by a majority vote of each house.
Government Code Section 8523(a) requires the Governor to submit to the Little Hoover Commission “for study and recommendation any reorganization plan which he intends to submit to the Legislature” at least 30 days prior to submission of the GRP to the Legislature. Then the LHC must make its report to the Governor and the Legislature within 30 days of the date on which the Governor submits his or her GRP to the Legislature.
Prior to transmittal of a GRP to the LHC, the Governor must submit each GRP to the Legislative Counsel in order that it may be submitted to the Legislature in the form and language suitable for enactment as a statute. The Legislative Counsel also prepares a digest of the GRP.
Under Government Code Section 8523(b), it is the intent of the Legislature in requiring the use of statutory language to insure that GRPs submitted to the Legislature express clearly and specifically the nature and purposes of the GRP. Note that, under Section 8523(c), the Governor may submit a GRP directly to the Legislature if that GRP is substantially identical to a plan previously submitted to the LHC during the same legislative session.
Little Hoover Commission’s Role
The LHC’s role in the GRP process is advisory and the LHC begins that process by conducting one or more public hearings in order to provide a forum for affected agencies, constituencies and interest groups to comment on the proposed GRP. In addition to invited witnesses, the Commission hears testimony from other interests or members of the public who would like to testify.
The LHC assesses the GRP based on its broad mandate to assist policy-makers in “promoting economy, efficiency and improved service in the transaction of the public business.” The LHC’s report offers a recommendation on whether the plan should go into effect. A GRP may be delivered to the Legislature at any time during a regular session, provided the Legislature has at least 60 calendar days of continuous session remaining to consider the plan.
The Governor’s reorganization process is an important one for the Governor to assign new duties or change existing duties of state agencies and departments. The last GRP was done in 2012 under Governor Jerry Brown to restructure various agencies and departments under this authority and control.
Commonly Asked Questions about GRPs
What is the Governor’s reorganization authority? The California Constitution grants the Governor, subject to approval by the Legislature, the authority to “assign and reorganize functions among executive officers and agencies and their employees.”
What is the name of this authority? A reorganization of the executive branch of government is called a “Governor’s Reorganization Plan,” or more commonly known as a “GRP.”
Is a GRP in the form of a bill or resolution? Article V, Section 6 of the California Constitution authorizes a statute to allow the Governor to reorganize functions among state agencies other than the remaining constitutional offices. Hence, a GRP is in the form of a bill that is submitted to the Legislature for approval.
What must occur before the GRP is submitted to the Legislature? It must first be considered by the Little Hoover Commission (LHC) at least 30 days prior to the GRP’s submission to the Legislature.
Where is the Little Hoover Commission authority found? The LHC’s role is set forth in California Government Code Section 8523, which was put into statute in 1974 by Chapter 1242.
What must the LHC do with the GRP? It must review the GRP and hold public hearings on the proposed GRP. Thereafter, the Little Hoover Commission offers a recommendation to the Legislature to either allow the GRP to go into effect or to reject the GRP.
What does the Legislature need to do after the LHC’s recommendation? Each house of the Legislature has 60 calendar days to act on the GRP. The GRP takes effect on the 61st day after submission to the Legislature, unless a resolution rejecting the GRP is adopted by both the Senate and Assembly by a majority vote of each house.
Is the GRP treated like a bill in the Legislature? Yes, prior to transmittal of a GRP to the LHC, the Governor must submit each GRP to the Office of Legislative Counsel in order that it may be submitted to the Legislature in the form and language suitable for enactment as a statute. The Legislative Counsel also prepares a digest of the GRP.
When does the GRP have to be submitted to the Legislature? While a GRP may be delivered to the Legislature at any time during a regular session, it must be provided to the Legislature with at least 60 calendar days of continuous session remaining to consider the plan.
When was the last GRP enacted? The last GRP was done in 2012 under Governor Brown to restructure various agencies and departments under this authority and control. GRP 1 was the Governor’s Reorganization Plan on state human resources functions while GRP 1 was the on the reorganization of the executive branch of state government.
Drafting Notes for GRPs
When published, a GRP looks almost like a bill or other legislative measure. At the top of the measure, it will state (like with an Assembly measure): California Legislature 2025-26 Regular Session
Instead of an AB/SB, it will state: Governor’s Reorganization Plan No. 1
It will state: Introduced by (but it will be left blank, i.e., it does not have an author) and the date of introduction
Just like with a bill, there will be a title. The title will include all of the provisions of one or more Codes that are being added, amended, and/or repealed. And, there will be a Relating Clause.
Next there will be the Subject Line that will include: GRP 1, as introduced, Governor’s Reorganization Plan:
Before the text of the bill, there will be a Legislative Counsel’s Digest. The standard language will include:
“The California Constitution establishes …
“This reorganization plan would …
“This reorganization plan would become operative on ….”
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