[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6573036,"mediaKeyId","3119772-45d4a2826dbb29b5abbdf2e9f2481006","parentId",3119772,"title","Little Hoover Commission holds hearings on governor reorganization plan; aims to deliver report before statutory deadline","audioSeconds",202,"startMs",78000,"endMs",280000,"viewUrl","/Search/View?dp=1&key=3119772-45d4a2826dbb29b5abbdf2e9f2481006&start=78&end=280","thumbnailUrl","https://assets.pipeline.soar.com/3119772-45d4a2826dbb29b5abbdf2e9f2481006/thumbnail_78000.jpg","articleUrl","/articles/6573036/California/Little-Hoover-Commission-holds-hearings-on-governor-reorganization-plan-aims-to-deliver-report-before-statutory-deadline","mediaUrl","https://secure.pipeline.soar.com/6573036-68a303d926f4e07ccc9cd28c3e36aeeb/orig.mp4?Expires=1770736785&Signature=IlO2lKVZGNm9Sc~6uANZXxVdzvtNvNwWsF6k1Mojv9cekl7R9Q34mEY8thO0diUHpYSbZ3neMkGjwHOLvd9A88aquDZdFGWobNdDaeS6Jf~uEOS3-MjNR3oITP-cO34lesIb1N5~YLMHWqh6A3bn00WMNM66a6JFDNaaEv9N39uD4is0cJHdG-ezqajGezC7jwHVZXXoUjwkvptFs4cAkVaRBesi-FACfh9wU6GLPvDzeMyRdbp8gqVMW7hlpgNKtLxxlbxbVfzdfCaE38Pvn~A9DISJ2b6Cc~Bdj8t3HcGibZfFpL-gV2GOVgDxuP3faHhTxpp0xHYwZD~7TJhCrw__&Key-Pair-Id=KUT5TJCACFTXG","author","California State Senate","date","2025-04-24T00:00:00Z","article","Ethan Rarick, executive director of the Milton Marks Little Hoover Commission, gave the subcommittee an informational briefing on April 24 describing the commission’s statutory role and its current review of the governor’s reorganization plan.

Rarick said the commission was created to \"review state operations and make recommendations for policy change that foster efficiency, economy, or improve service in state government.\" He told the subcommittee the commission received the reorganization plan 20 days earlier and has held the first of two hearings; a second hearing was scheduled the day of the subcommittee meeting. The commission will issue a report and recommendation to the Legislature within the statutory review period once it completes stakeholder outreach and final deliberations.

Key points

- Statutory role and timeline: By statute, the governor submits a reorganization plan to the commission 30 days before formally submitting it to the Legislature; the commission then conducts study and hearings and issues a recommendation. Once the governor submits the plan to the Legislature, the Legislature has 60 days to reject the plan or allow it to take effect.

- Recent activity: Rarick said the commission prepared roughly 200 pages of background material for members and has a specific section considering the placement of the civil rights department. The commission has reviewed roughly 31 formal reorganization plans since 1968; the last major plan processed through the formal reorganization mechanism occurred in February 2012.

- Timeline expectations: Rarick told the subcommittee he expected to deliver the commission’s report to the Legislature around mid-May, subject to the governor’s formal submission and the commission’s deliberations. He cautioned there was not a specific calendar date yet but that staff were pushing to meet the statutory deadlines.

Why this matters

The commission’s statutory recommendation can influence legislative consideration of executive reorganization proposals and provide analyses on likely operational impacts and implementation timelines. Senators on the subcommittee noted the importance of coordinating budget and organizational changes so that appropriation and program structure align in the May revision and budget process.

Speakers quoted or relied on in this article: Ethan Rarick, executive director, Little Hoover Commission; Senator Smallwood Cuevas and Senator Nilo asked questions about the commission’s review criteria and history.

Ending: The Little Hoover Commission said it will continue hearings, collect stakeholder testimony and aim to transmit its recommendation to the Legislature within the statutory window.","mediaType","Video","parentTitle","Senate Budget and Fiscal Review Subcommittee No. 4 on State Administration and General Government","oneSentenceSummary","The Little Hoover Commission briefed the subcommittee on its role in reviewing the governor’s reorganization plan, its recent hearings and likely timeline to issue a recommendation to the Legislature within statutory deadlines.","taxTitle","California State Senate, Senate, Legislative, California","taxId",77650,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6573041,"CDTFA seeks one-year funding to implement flavored tobacco seizure authority",414,3650000,4064000,"/Search/View?dp=1&key=3119772-45d4a2826dbb29b5abbdf2e9f2481006&start=3650&end=4064","https://assets.pipeline.soar.com/3119772-45d4a2826dbb29b5abbdf2e9f2481006/thumbnail_3650000.jpg","/articles/6573041/California/CDTFA-seeks-one-year-funding-to-implement-flavored-tobacco-seizure-authority","https://secure.pipeline.soar.com/6573041-272bd98f27bd1f82d7c2615c1e66bc49/orig.mp4?Expires=1770736785&Signature=Qgutip~P20pw3dwx8gEfEkpkSYUsCqCvQJRNiYfn625gXCwT5LWAgyUpBdG7VWUr9u1hF5xuDQj4oGLLgv2nqUzuFoy78yqK7sCT9yp4dyRMAAzvZOEZ56AEMZaT-2ei76IjmXTRcyz3nBDksmSt~p7BgpGNWGolh64sUE4MHl8JYyKW-BnNHyt~AzJkL1jZFmwK2Ou9AZiy1SIr-OwHKK288qA5Lp9dQeIxsVZhLw-1IfjOZxTVsNUy~yeGeOEP9LVvzv2la~b0KhmACudDhz1KozGwyVpQmPygNGd4TgFMqWXTXZ6klkkWSqhCVA8oKUI7yjUI9~GJVcNuUCBJDw__&Key-Pair-Id=KUT5TJCACFTXG","The California Department of Tax and Fee Administration asked the Senate Budget Subcommittee No. 4 on April 24 for a one-year augmentation of $3.5 million from the Cigarette and Tobacco Compliance Special Fund to implement recent laws authorizing seizure and destruction of flavored tobacco.

CDTFA director Trista Gonzales and Chief Financial Officer Jason Mallett said AB 3218 and SB 1230 (as referred to in the department’s submission) authorized the agency, beginning Jan. 1, 2025, to seize flavored tobacco products from retailers. CDTFA requested limited-term funding for FY 2025–26 because the department does not yet have a reliable estimate of how much seized product value or penalty revenue the program will generate.

LAO summary and department response

Seth Kirstein of the Legislative Analyst’s Office told the subcommittee that recent state-level revenue trends suggest flavor-related tobacco revenue losses might be in the $300 million–$400 million range, but it is uncertain how much of that loss is due to tax avoidance versus actual declines in use. The LAO also flagged that CDTFA’s tobacco program staffing and inspections decreased substantially in recent years: the department had about 32% fewer filled positions for tobacco programs in FY 2023–24 than in FY 2018–19, and inspections fell by about 52% over the period cited by the LAO.

CDTFA replied that it has made hiring progress: the tobacco program vacancy rate has fallen from 40% to about 10% since earlier shortfalls and that the agency has targeted inspectors toward smaller retailers and higher-return enforcement. Jason Mallett told the subcommittee that product seizures and the value of seized product have risen in recent years (from roughly 600,000 cigarette sticks seized four years ago to more than 2 million last fiscal year), and that since Jan. 1, 2025 the department has conducted more than 100 inspections and seized more than 300,000 packages of illegal flavored product.

Why the one-year request

CDTFA said it seeks one-year funding because the value of seized product and penalty revenues is uncertain: seizing illegal inventory that otherwise would have been sold reduces the pool of taxable product and may depress future revenues. The agency told the subcommittee it will return with an ongoing funding recommendation once actual seizure and penalty outcomes are better understood.

Legislative issues and next steps

- Funding source: CDTFA proposed to use the Cigarette and Tobacco Compliance Special Fund; that fund also supports licensing and other tobacco enforcement work.

- Implementation risk: LAO cautioned that even if funding is approved, CDTFA has historically struggled to hire and retain inspectors, and new duties could spread enforcement resources thin until staffing stabilizes. CDTFA reported recent hiring successes and said it will monitor workload and revenue closely.

- Possible licensing fee increase: CDTFA noted that if the compliance fund is insufficient, the licensing fee (around $265 per retailer, as cited by the department) could require an increase to sustain enforcement.

Speakers quoted or relied on in this article: Trista Gonzales, director, California Department of Tax and Fee Administration; Jason Mallett, CFO, CDTFA; Seth Kirstein, Legislative Analyst’s Office.

Ending: The subcommittee held the item open for further agency reporting and directed CDTFA to provide metrics and evaluation criteria to guide any decision about ongoing funding.","The California Department of Tax and Fee Administration requested $3.5 million from the cigarette and tobacco compliance fund to implement new seizure authority under AB 3218 and SB 1230, while the LAO cautioned about staffing and revenue uncertainty after recent declines in tobacco inspections and staffing.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6573046,"CalSavers reports growth, readies outreach as employer mandate expands to micro employers",2117,1223000,3340000,"/Search/View?dp=1&key=3119772-45d4a2826dbb29b5abbdf2e9f2481006&start=1223&end=3340","https://assets.pipeline.soar.com/3119772-45d4a2826dbb29b5abbdf2e9f2481006/thumbnail_1223000.jpg","/articles/6573046/California/CalSavers-reports-growth-readies-outreach-as-employer-mandate-expands-to-micro-employers","https://secure.pipeline.soar.com/6573046-fc9ce074c475c515caf5d1242b02a97a/orig.mp4?Expires=1770736785&Signature=hxDLaeQjWQCY2ATHdPRj2CAFLONtoIQInld6EAWI4WcVOG2X85gLSg5FcEvLlcAPmQEAdpUGAN4FmkWeLDIOTLym8QiEyuw9tjBKFmsp43u~T7~ydeLtHI0HpI~loybPOoObPJ04YotNEfWhF1lfHmarLXkso~B2l2Kx0C1qqWpwbJL~b2vXsWPQPW6L9lj0t9DrwTQyrUrBQbT4SMvErg-WqqRwVVEIpr9xfCnDjivyES-E8bOPl4InsmWTT9aPErOYYFKSdjaZTI1TvOlgOGq8OphUAWjF9rd5Vy1lNJRGlTiJLt6uh8VUZ5vMgmM7~vMw2V3kaVvWG1IscrlIPg__&Key-Pair-Id=KUT5TJCACFTXG","CalSavers executive director David Takartz told the Senate Budget and Fiscal Review Subcommittee No. 4 on April 24 that the state-run retirement program has more than 550,000 funded saver accounts and about $1.2 billion in assets under management.

The program, formally the California Secure Choice Retirement Savings Board’s CalSavers program, requires employers that do not offer a qualified retirement plan to facilitate payroll-deduction access to a Roth IRA for employees. Takartz said the program has about 58,000 employers actively moving payroll deductions and roughly 58,000 businesses that have uploaded rosters and are facilitating contributions.

CalSavers emphasized the program’s design features: automatic enrollment, automatic 1 percentage-point escalation in contribution rates up to 8% and no employer fees or fiduciary exposure for participating employers. \"If the employee decides not to do anything, if they just simply passively allow this to happen, then the savings does occur for them,\" Takartz said.

Why this matters: CalSavers targets workers without employer plans, often low- and moderate-income earners. The program’s fiscal model depends on growing assets under management (AUM) because its operating revenue comes from a small percentage of saver assets rather than direct state funding. Takartz told the subcommittee CalSavers’ break-even AUM target is roughly $6 billion; the program currently averages about $2,000 per account.

Key details and near-term priorities

- Enrollment and scale: CalSavers reported more than 550,000 funded accounts and 1,200,000,000 in AUM. The average participant salary range is roughly $32,000–$45,000 a year and the average account balance is slightly above $2,000.

- Employer mandate expansion: On Dec. 30, 2025, the legislative deadline for facilitation expands to nearly all employers, including those with a single employee (not the owner or spouse). CalSavers staff said that expansion will roughly triple the pool of employers subject to the mandate and is the program’s largest near-term outreach challenge.

- Outreach strategy: CalSavers described a multi-pronged campaign aimed at micro-employers and their workforces: targeted mailings using Employment Development Department (EDD) data, partnerships with small-business development organizations, unions (for example, SEIU outreach to in‑home health providers), chambers of commerce, translated materials in the top 10 state languages, and paid and social media. The program is launching an early-employer incentive campaign that uses a portion of penalty funds to reward employers who sign up early and integrate payroll providers.

- Technology and ease of integration: Officials said integration with payroll providers (QuickBooks, ADP and others) is a top priority; CalSavers is developing automatic payroll connections and chatbot support (multilingual) to answer employer and worker questions.

Concerns, performance and timeline

Legislators and analysts pressed CalSavers on account balances, turnover and financial sustainability. The Legislative Analyst’s Office and several senators noted the program was slower to reach financial self-sufficiency than originally projected; CalSavers now projects it could reach break-even in the neighborhood of fiscal 2029–30. CalSavers said staff expect to reach the $6 billion AUM threshold before then, though projections are uncertain.

CalSavers described high participant mobility (typical for small-employer workforces) and said it cannot track savers who leave for employers that offer private retirement plans. The agency reported that the program has raised employer offers among private-sector firms: \"there has been a 20% bump in larger businesses that offer private sector plans since CalSavers came up,\" Takartz said.

What’s next

CalSavers will focus staff and marketing resources on the employer-mandate expansion this year, strengthen payroll-provider integrations, scale multilingual outreach to micro employers and develop automated help features for employers and employees. Lawmakers asked CalSavers to return with updated metrics and projections as the December 2025 threshold approaches.

Speakers quoted or relied on in this article: David Takartz, executive director, CalSavers Retirement Savings Board; Senators and staff who questioned CalSavers included Senator Nilo and Senator Smallwood Cuevas.

Ending note: CalSavers framed the mandate expansion as its most complex operational step yet: the agency must combine technical integrations with broad community outreach to micro employers who have little payroll-administration experience.","CalSavers told the Senate Budget Subcommittee No. 4 it has 550,000 funded saver accounts and $1.2 billion in assets under management, and outlined outreach and technical steps ahead of a December 2025 deadline expanding the employer mandate to firms with one or more employees.","actionData","errors"]

Article not found

Little Hoover Commission holds hearings on governor reorganization plan; aims to deliver report before statutory deadline

CDTFA seeks one-year funding to implement flavored tobacco seizure authority

CalSavers reports growth, readies outreach as employer mandate expands to micro employers