Basics of a governor’s reorganization plan

Editor’s Note: This is corrected from an earlier 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 either the Senate and Assembly by a majority vote of the house. Note on this last provision that there is a legal question whether a single house veto would pass constitutional muster.

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 either the Senate and Assembly by a majority vote of the 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 ….”

Statutory Provisions

In Government Code Title 2, Division 3, Part 2, Chapter 1, Article 7.5, there are provisions on “executive reorganizations.” Section 12080 defines the following terms:

“Agency” means all entities in the executive branch of the state government, except for those administered by an elective officer.

“Reorganization” means:

* The transfer of the whole or any part of an agency, or of the whole or any part of the functions thereof, to the jurisdiction and control of any other agency; or

* The abolition of all or any part of the functions of an agency; or

* The consolidation or coordination of the whole or any part of an agency, or of the whole or any part of the functions thereof, with the whole or any part of any other agency or the functions thereof; or

* The consolidation or coordination of any part of an agency or the functions thereof with any other part of the same agency or the functions thereof; or

* The authorization of a nonelective officer to delegate any of the nonelective officer’s functions; or

* The abolition of the whole or any part of an agency which agency or part does not have, or upon the taking effect of a reorganization plan will not have, any functions.

* The establishment of a new agency to perform the whole or any part of the functions of an existing agency or agencies.

“Resolution” means a resolution of either house of the Legislature resolving as follows:

Section 12080.1 requires the Governor to examine the organization of all agencies and determine what changes are necessary to accomplish one or more of the following purposes:

* To promote the better execution of the laws, the more effective management of the executive and administrative branch of the state government and of its agencies and functions and the expeditious administration of the public business;

* To reduce expenditures and promote economy to the fullest extent practicable consistent with the efficient operation of the state government;

* To increase the efficiency of the operation of the state government to the fullest extent practicable;

* To group, consolidate and coordinate agencies and functions thereof as nearly as possible according to major purposes;

* To reduce the number of agencies by consolidating those having similar functions under a single head and to abolish such agencies or functions thereof as may not be necessary for the efficient operation of the state government;

* To eliminate overlapping and duplication of effort.

Section 12080.2 provides that, whenever the Governor finds that reorganization is in the public interest, the Governor is required to prepare one or more reorganization plans in the form and language of a bill as nearly as practicable and transmit each, bearing an identifying number, to the Legislature, with a declaration with respect to each reorganization included in the plan.

In addition, the delivery to both houses may be at any time during a regular session of the Legislature. The Governor, in transmitting a reorganization plan, is required to explain the advantages which it is probable will be brought about by the taking effect of the reorganization included in the plan. The plan must specify with each abolition of a function the statutory authority for the exercise of the function. Reorganization plans submitted to the Legislature must express clearly and specifically the nature and purposes of the plan or plans.

Upon receipt of a reorganization plan, the Rules Committee of the Senate and the Speaker of the Assembly are required to refer the plan to a standing committee of their respective houses for study and a report. That report is required to be made at least 10 days prior to the end of the 60-day period and may include the committee’s recommendation with respect to a resolution.

A resolution, by floor motion, may only be in order following a committee report or at any time during the last 10 days prior to the end of the 60-day period and that resolution must be voted upon without referral to committee.

Section 12080.3 specifies that each reorganization plan transmitted by the Governor:

• May change the name of an agency affected by a reorganization and the title of its head, and designate the name of an agency resulting from a reorganization and the title of its head.
• May include provisions for the appointment of the head and one or more other officers of an agency, whose appointment is subject to confirmation by the Senate. The term of office of an appointee, if any is provided, must be fixed at not more than four years. The Legislature sets the compensation of all department heads and officers.
• Shall provide for the transfer of employees serving in the state civil service who are engaged in the performance of a function transferred to another agency or engaged in the administration of a law.
• Shall provide for the transfer or other disposition of the personnel records and property affected by a reorganization.
• Shall provide for the transfer of unexpended balances of appropriations and of other funds available for use in connection with any function or agency affected by a reorganization.
• Shall provide for terminating the affairs of an agency abolished.
• Shall enumerate all acts of the Legislature that will be suspended if the reorganization plan becomes effective.

Section 12080.4 prohibits any reorganization plan from providing for or having the effect of:

• Continuing any agency beyond the period authorized by law for its existence;
• Continuing any function beyond the period authorized by law for its exercise, or beyond the time when it would have terminated if the reorganization had not been made;
• Authorizing any agency to exercise any function which is not expressly authorized by law to be exercised by an agency in the executive branch at the time the plan is transmitted to the Legislature;
• Increasing the term of any office beyond that provided by law for the office; or
• Abolishing any agency created by the California Constitution.

Section 12080.5 provides that a reorganization plan submitted becomes effective the first day after 60 calendar days of continuous session of the Legislature after the date on which the plan is transmitted to each house or at a later date as may be provided by the plan, unless, prior to the end of the 60-calendar-day period, either house of the Legislature adopts by a majority vote of the duly elected and qualified members thereof a resolution.

Section 12080.6 prohibits any reorganization plan from having the effect of limiting in any way the validity of any statute enacted, or any regulation or other action made, prescribed, issued, granted or performed in respect to or by any agency before the effective date of the reorganization plan, except to the extent that the plan specifically provides.

Section 12080.7 prohibits the abatement of any lawsuit, action, or other proceeding lawfully commenced by or against the head of an agency or other officer of the state in their official capacity or in relation to the discharge of the head of an agency or officer’s official duties by reason of a reorganization plan taking effect.

Section 12080.8 specifies that, from the effective date of a reorganization plan, and as long as it is in effect, the operation of any prior act of the Legislature inconsistent with the reorganization is suspended.

Section 12080.9 requires each reorganization plan which takes effect to be printed in the same volume as the acts of the session of the Legislature to which it was submitted.

Section 12081 requires the Legislative Counsel to prepare for introduction not later than the next regular session of the Legislature occurring more than 90 days after that in which a Governor’s reorganization plan takes effect a bill making changes in the statutes as may be necessary to reflect the changes made by the reorganization plan.

Section 12081.1 provides legislative intent that delegating legislative power to the Governor by this article pursuant to the authorization contained in Section 6 of Article V of the California Constitution to retain the right of review of the Governor’s action by means of action by either house of the Legislature recommending study of any proposal submitted to it.