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[State of the State - Press Kits] - [Agricultural and Services Agency]
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[State of the State - Press Kits] - [Agricultural and Services Agency]
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Ronald Reagan's Governor's Papers of the Press Unit
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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Reagan, Ronald: Gubernatorial Papers,
1966-74: Press Unit
Folder Title: [State of the State - Press Kits] -
[Agricultural and Services Agency]
Box: P38
To see more digitized collections visit:
https://reaganlibrary.gov/archives/digital-library
To see all Ronald Reagan Presidential Library inventories visit:
https://reaganlibrary.gov/document-collection
Contact a reference archivist at: [email protected]
Citation Guidelines: https://reaganlibrary.gov/citing
National Archives Catalogue: https://catalog.archives.gov/
STATE OF CALIFORNIA
RONALD REAGAN, Governor
AGRICULTURE AND SERVICES AGENCY
1220 N Street
Sacramento 95814
March 6, 1969
Honorable Lt. Governor Reinecke
President of the State Senate
State Capitol
Honorable Robert T. Monagan
Speaker of the State Assembly
State Capitol
Gentlemen
As promised by Governor Ronald Reagan in his State of the State
Message, I am submitting this report on the Agriculture and Ser-
vices Agency.
The Agriculture and Services Agency was established by the
Governor's reorganization plan No. 1 of 1968 and includes the
following departments:
Agriculture
Commerce
Employees' Retirement System
Fire Marshal
Franchise Tax Board
General Services
Professional and Vocational Standards
Teachers' Retirement System
Veterans Affairs
Administrative action has established liaison between this agency,
the State Personnel Board, Management Services and the Consumer
Counsel.
Agency Goals
The primary goal of the Agriculture and Services Agency is to
provide policy guidance and effective communications between the
Governor and the assigned departments. The following policy state-
ments have been formulated for implementation within this framework
of potential goals:
Honorable Lt. Governor Reinecke
Honorable Robert Monagan
Page Two
March 6, 1969
Agriculture and Services
1.
Identify, study and recommend solutions to the State's agri-
business problems so as to insure an adequate supply of food
and fibre.
2.
Promote and protect the economy of the State's agribusiness
to the fullest extent commensurate with the public welfare.
3.
Within its delegated authority to actively further and pro-
tect the health and welfare of the people of the State.
4.
Assume active leadership in meeting current agricultural pro-
blems and assure that producers, handlers and consumers
receive the true weights and measures of commodities and ser-
vices purchased.
5.
Focus regulatory efforts on areas of potential problems to
assure public protection while minimizing harassment.
6.
Maintain careful surveillance of professional and vocational
licensing to protect the California citizenry.
7.
Carefully evaluate all government programs to eliminate
waste, red tape, inefficiency, and the duplication of
private sectors.
8.
Key departmental functions are to collect tax revenues,
assure veterans' benefits, stimulate economic growth,
assure public employee security, provide a fire-safe
environment, and assure a public work force.
Attainment of these goals requires not only cooperative govern-
mental action at all levels, but also the support of labor,
industry, the private agencies and the individual citizens of the
State. We are actively seeking to secure and increase such parti-
cipation. I have attached the individual reports of the depart-
ments of the Agency which will provide additional information
concerning their accomplishments and goals.
Sincerely
Earl Earl Coke
Coke
Secretary
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
DEPARTMENT OF AGRICULTURE
Established in 1919, the California Department of Agriculture
this year is celebrating its 50th anniversary. An agency
serving the nation's leading agricultural state for the past 20
years, the department has five primary areas of responsibility:
(1) to promote and protect the economy of the state's agribusiness
industry to the fullest extent commensurate with the public
welfare; (2) to assure that producers, handlers and consumers
receive the true weights and measures of commodities and services
purchased; (3) within its delegated authority, to actively further
and protect the health and welfare of the people of the state;
(4) to assume active leadership in meeting current agricultural
problems; and (5) to identify, study and recommend solutions to
the state's agribusiness problems so as to assure an adequate
supply of food and fiber.
CURRENT PROGRAMS AND PROGRESS
General Economic Conditions
California agriculture, the State's principal industry, had a
record-breaking year in 1968, with new highs in farm production.
40.2 million tons of agricultural products were produced,
representing a gross value of $4.35 billion to the farmers. A
long, hot growing season followed by good harvest weather resulted
in crops high in both quality and quantity.
The California farmer is still trapped in a severe cost-price
squeeze, however, and his net income lags badly behind his gross.
The price he gets for his products remains fairly level, but the
cost to him of labor, equipment, taxes and supplies spirals higher
and higher. So it is increasingly difficult for him to accumulate
the cash reserves necessary to finance the improvements needed to
keep pace with the rapid advances in farm technology.
The economic health of California agriculture is important to all
of us, because the $4 billion-plus of gross farm income expands
into about $16 billion in value to the State's economy as the
products are processed, packaged, stored, shipped, distributed
and sold. This year-round agribusiness activity creates a host
of jobs and opportunities, and is vital to the continuing growth
and prosperity of California.
-2-
Meat Inspection
One of the most important responsibilities of any state is to assure
its citizens of clean and wholesome food products. California is
a recognized leader in this field. And we made giant strides in
1968 to strengthen even further our protection of the meat consumer.
Through a cooperative agreement with the U.S. Department of
Agriculture, our State Department of Agriculture has closed several
loopholes in the law, extended its inspection services into new
areas, and is presently providing Californians with the finest
meat inspection system in the nation. The same kind of Federal-
State program for poultry meat inspection has been approved and
will be in effect this Spring.
Protection Against Plant Pests
Losses from harmful insects, weeds and plant diseases, and farmers'
efforts to control them, represent a cost of over one billion
dollars per year in California--nearly 25 percent of the State's
gross farm income.
The damage done by plant pests to California gardens, parks and
forests is also costly. Foresters say that losses due to pests
exceed losses due to forest fires.
For the past half century we have operated a system of border
quarantine stations in an attempt to exclude plant pests from
California. This system has been effective in reducing or delaying
the entry of such pests.
In recent years, however, the threat of new pest introductions
has been increasing rapidly. Vehicle traffic at the borders has
tripled in the last 15 years, and it will double in the next 15
years. It is also predicted that within seven years the number
of visitors to California arriving by air will equal those coming
by land.
To meet these challenges our State Department of Agriculture has
proposed a new and highly sophisticated plant pest survey and
detection system. The goal would be to find, identify and
eradicate new pests before they become widespread. This program
calls for the use of all the new weapons science can devise, such
as modern aerial sensing techniques and more ingenious methods of
trapping, as well as additional research into pest detection
methods.
As our capabilities increase in this area, we propose to phase out
passenger car inspection at the border stations, which will lose
their effectiveness in the face of the enormous increase in
traffic and are a source of irritation and delay to motorists
entering California. Commercial shipments will continue to be
inspected, at the most effective locations.
-3-
Details of this proposed plan will be worked out by the State
Department of Agriculture after meetings with county agricultural
commissioners and with advice from a special committee made up of
representatives from a wide cross-section of agricultural interests.
Farm Labor
The year 1968 saw the very survival of California table grape
growers threatened by an unwarranted boycott imposed by labor
union organizers. The controversy and bitterness caused by this
issue have helped no one--certainly not the grape workers.
Agricultural problems of this type must be solved by reason and
intelligent action rather than by coercion. California has been,
and is today, a leader in the fair treatment of farm workers.
Their wages, housing and working conditions are excellent in
California as compared with other states. Farm workers are covered
by more protective laws in California than in any other state in
the nation.
We are proud that this is so, but at the same time we recognize
that we cannot serve our farm workers well by being so far in
front as to jeopardize the farms which provide jobs.
To resolve this problem equitably, Federal legislation is needed
whereby all states may move more promptly to establish uniform
standards for farm employment.
In California, meanwhile, all agencies of government will vigorously
enforce those laws and regulations now in effect. It would be
desirable, also, for the major farm organizations, national and
local, to establish written codes of conduct for their members
which set up minimum employment standards for wages, hours, rest
and meal periods, and housing and sanitary facilities. The
involvement of agricultural organizations is important because
self-help is usually the best method for improvement. Problems of
farm labor cannot be solved by merely passing laws or posting
notices.
We in the state government will watch hopefully for signs of progress
in these matters. At the same time, we shall review and study any
proposed legislative solutions, and will support those measures
which we believe are in the public interest.
Milk Pooling
Primarily to eliminate inequities in payments to dairymen by milk
distributors and processors, a statewide milk pooling plan has been
devised by the California Department of Agriculture. The dairy
industry overwhelmingly approved adoption of this plan after
extensive public hearings. Details of organization, staffing and
-4-
systems are being worked out, and we anticipate this program will
be in effect about June 1. The result should be to create
economic conditions more stable and equitable for all California
milk producers.
Milk Prices
For the past several months, the Department of Agriculture has been
conducting an intensive study of the economics and trade practices
in the milk industry. This continuing study involves public
hearings in milk marketing areas throughout the State. As a
result, the Department has been able to reduce minimum wholesale
and minimum retail prices of milk in many parts of the State
without reducing the price to the producer. This is made possible
by the considerable savings in distribution costs by efficient
milk distributors and large retail chains. The milk consumer in
California is now sharing in these savings through lower milk
prices.
Statistical Sampling
One of the Department's most important functions is the inspection
of agricultural products for compliance with California law. This
is done through sampling of lots or shipments of produce.
Recognizing the limitations of time and manpower, the Department
of Agriculture is conducting an aggressive and innovative campaign
to review the statistical validity of each of the many commodity
sampling programs. The result will be to assure the most economical
and valid application of the sampling manpower available.
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
DEPARTMENT OF COMMERCE
The administration during the past two years has initiated numerous
executive and legislative programs to improve the "climate" for
business and industry in California. An important step in this
direction was the creation of a Department of Commerce to provide
a means of aiding in the coordination of state and non governmental
programs pertaining to tourism, world trade, and industrial and
business development.
Divisions of the Department now include: World Trade Division,
Office of Tourism, Division of Economic Development, and the
Museum of Science and Industry.
Overall objective of the Department of Commerce is to provide
state level assistance to ensure the continuing growth of the
state's industry, commerce, and agriculture. To this end the
four key elements of the Department's program place emphasis on:
-- Aiding the expansion of California's world trade in natural
and processed products by identifying trade opportunities, dis-
seminating trade information, and assisting in trade promotion
activities.
-- Relating the activities of regional and local organizations
engaged in the promotion of tourism to develop and maintain a
concerted statewide program for attracting an increasing number
of visitors to California from other states and foreign nations.
-- Providing information, in confidence if requested, which will
help prospective investors to evaluate the suitability of a
California location for a new or expanded business or industry.
-- Contributing to the development of a more favorable business
climate through investigations of special problems that may be
affecting economic growth and development.
It should be noted that California's extensive geographical area
and the diversity of its economy has given rise to numerous local
and regional, public and private organizations to promote the
development of the state's economy. Each, however, provides ser-
vices limited by the area of its jurisdiction or interest.
-2-
The Department of Commerce provides information and services of
a statewide scope to insure that all essential assistance is avail-
able on behalf of expanded world trade, tourism, commerce, and
industry.
CURRENT PROGRAMS AND PROGRESS
WORLD TRADE DIVISION
Single Authority Established
An initial act of the new department was to re-evaluate the pro-
grams of the World Trade Authorities. Last year legislation was
enacted to establish a single statewide California World Trade
Authority. For a number of years, the world trade program has
been organized into three largely autonomous groups: an authority
each in Los Angeles and San Francisco and a World Trade Authority
Coordinating Council.
Two Offices Closed
Taking note of the recent transfer of the Port of San Francisco
to the City-County of San Francisco and the plans of a citizen
group in Los Angeles to build a world trade center there, it was
decided to close the state's two small world trade offices in
those cities. A statewide office has been established within
the Department at Sacramento.
New York Office Planned
A proposal will be submitted to open a single office in the
New York World Trade Center to establish day-to-day contact with
the commercial attaches and the exporters-importers of most of the
nations trading with America.
Restrictions on Exports to be Examined
The Division will continue to examine and act on regulations and
restrictions imposed by foreign governments on the sale of certain
California products abroad. Such restrictions, which have the
effect of a tariff, place these California exports at a competi-
tive disadvantage.
OFFICE OF TOURISM
Private Sector Helps Print California Brochure
The Office of Tourism is giving increased emphasis to cooperative
projects with the private sector. An example is the recently
-3-
published four-color, statewide promotional brochure describing
outstanding tourist attractions. The folder was printed by a
California airline company at a price 21 times lower than bids
from private firms and the State Office of Printing.
Similarly, a restaurant paid 75 percent of the printing bill for
25,000 copies of a multi-colored postcard now being used by the
Office. The Office annually distributes some 400,000 pieces of
tourism literature out-of-state and prepares numerous news re-
leases and magazine articles.
California Exhibit Financed by Donations
Acting as a catalys) and project coordinator for state-private
sector ventures, the Office has obtained donations from private
industry to entirely finance an $8,000 exhibit which is being
used in the state's first participation in major U. S. Travel
shows in Los Angeles, New York and Chicago. The Office will
provide staffing at the shows, but the cost of the exhibit is
being borne by such tourist-oriented groups as regional promo-
tional organizations, hotels, motels, bus and railroad companies,
airlines, oil companies, utilities, boards of trade, individual
attractions, tour companies, and more than 30 local chambers of
commerce.
Travel Study to be Updated
During 1968 the Office also awarded a $10,000 contract to Economic
Research Associates of Los Angeles to compile information on the
travel patterns of out-of-state visitors and the economic impact
of tourism in California. The study will update an earlier
$150,000 research project on California tourism industry funded
largely by the Federal Government. The continuing study is ex-
pected to encourage increased investments in tourism facilities
and to permit more effective planning of public and private tour-
ism programs.
Foreign Language Brochure Sought
Future projects under consideration include publication of a
California tourism brochure in several foreign languages. The
brochures would be placed in the seven worldwide offices of the
United States Travel Service to encourage more foreign travelers
to visit California. Possible joint state and federal funding
for the publication is being investigated.
-4-
DIVISION OF ECONOMIC DEVELOPMENT
Site-Location Data Provided
The Division responded to 1,163 requests for site-location infor-
mation (employment, wages, taxes, industrial sites, transporta-
tion, utilities, community services, etc.), marketing statistics,
and general business information. The requests came from two
sources: from businessmen and industrialists who during 1968
were evaluating the feasibility of locating facilities in
California; and from other persons and organizations seeking
business-oriented information.
Nevada's Tax-Free Warehousing Examined
The Division prepared a report on the extent and impact of the
tax-exempt warehousing and assembly in Nevada which has resulted
from that state's exemption of a tax on business inventories.
The report was prepared to help the administration evaluate the
need for a reduction in the tax on business inventories in
California.
New Industry Report Underway
In cooperation with the Department of Employment and the California
State Chamber of Commerce, the Division has begun a system to
obtain data on newly-registered manufacturing firms in California.
For the first time information is available on the number, type,
and county of location of all manufacturing firms which registered
during 1968. Findings of the first year's tabulations will be
released soon. The current data will be expanded to include
number of jobs created, annual payrolls and capital investments
in plant and equipment.
Standard Business Index Needed
In cooperation with the private sector, the Division will ini-
tiate and coordinate the preparation of a standardized business
index for measuring condition and growth of the state's economy.
Various private and government groups now publish differing
economic indicators, but there is no acceptable, uniform, state-
wide index available to accurately measure the state's economic
health and trends.
Division to Seek Earlier Release of Federal Data
The Division will spearhead efforts to identify data prepared
by the U. S. Department of Commerce and other federal agencies
which should be released earlier to permit improved economic
analysis, forecasting, and decision-making at the State level.
-5-
The Economic Development Division will encourage action by other
state development agencies, trade associations, and Congressional
representatives to speed preparation and release of data and to
make such publications more responsive to the needs of the states.
"Doing Business" Booklet to be Published
The Division will prepare a publication on "Doing Business in
California. Businessmen and industrialists investigating
California's potential for new commercial, manufacturing or
distribution facilities frequently request information on state
regulations, laws, and fees, etc., involved in establishing a new
business. No such statewide publication is available.
MUSEUM OF SCIENCE AND INDUSTRY
The Museum of Science and Industry started two new programs in
fiscal 1967-68 centered about the extension of education facili-
ties and increased community involvement in museum activities.
Health Exhibit Opened
Opening of the new Hall of Health building and exhibit launched
an outstanding human physiology presentation. The 8,000 square
foot permanent exhibit provided the general public and more than
130,000 touring students with a dramatic and exciting acquaintance
with the wonders of biology. As part of the presentation, young-
sters also learned about the dangers of narcotics and addictive
drugs. This program will be extended by using the exhibit as a
tool in the Governor's program to enlist the support of service
clubs, PTA's, and other community organizations in the fight
against consumption of addictive drugs.
Citizen Support Groups Formed
Three citizen support groups, each representing a vital segment
of the community were formed.
The Muses, a senior women's group of more than 50 prominent
members, has assumed the financial support of the 3,000 plus
student Summer Science Workshop Program, the Junior Science
Symposium, the Math Seminar, and other special educational pro-
grams for science-oriented youngsters.
The Associate Board of the California Museum Foundation, comprised
of 36 youthful executives from the professions, arts, and business
now offer to the senior board a flow of ideas and direct assist-
ance to enhance the Museum's programs of temporary exhibits, pro-
motion, and community involvement.
And the Docents, some 200 young professional women, are serving
as year around volunteer Museum guides.
-6-
Space Museum Proposed
Future projects include a proposed Space Museum designed to de-
scribe the universe and its relation to man's efforts to explore
and conquer space; a Physics and Chemistry Exhibit; a working
nuclear reactor with facilities where junior and high school
students can conduct experiments; and a 500-seat auditorium
adjoining the museum complex.
Health Hall Expansion Planned
Also planned is an expansion of the Hall of Health Building which
will permit permanent exhibits to educate visitors on problems
of public health. Each exhibit will be sponsored by specialized
health organizations, such as the American Cancer Society and
the American Heart Association.
And during fiscal 1968-69, the Museum will serve as a staging area
for exhibits relating to the observance of California's bicen-
tennial.
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
OFFICE OF CONSUMER COUNSEL
Involvement of all sectors of society are required to solve con-
sumer problems in a creative, constructive manner and on a long
range basis. Toward this end, the Consumer Counsel has worked with
government officials, business and professional organizations, in-
dividual consumers and consumer organizations in a consistent effort
to strengthen the consumer-business-government relationship. The
Consumer Counsel views her role as that of a catalyst causing those
agencies of government which have regulatory and enforcement powers
to act only when there is evidence of fraud or misrepresentation,
violation of existing laws, or when business deliberately abdicates
its responsibility.
CURRENT PROGRAMS AND PROGRESS
The Consumer Counsel continues to help promote dialog and under-
standing among consumers, business and government interests. hope-
fully to bridge what appears to be a communication gap. While
stressing the need for vigorous enforcement of consumer protection
laws and for business to take the initiative by anticipating con-
sumer demands, the Consumer Counsel also encourages the consumer
to understand his rights and privileges as a partner in the economic
system.
The Consumer Counsel continues to function as an advisor to the
Governor on issues of importance to the consumers of California,
to receive reports from consumers on a wide variety of consumer
problems and requests for information or educational material. A
total of more than 1,400 requests and reports have been received
in the past two years. These letters contain reports of fraudulent
or unethical business practices, complaints of inefficiency. fraud,
and overcharging on automobile and appliance repairs, protests on
the increases in the cost of living and high interest rates and
unfair or misleading packaging, labelling and advertising.
All reports are first referred to the business or industry involved
and most are satisfactorily adjusted at that level. When there
appears to be evidence of fraud, misrepresentation or other illegal
practices, the complaint is referred to the federal or state govern-
mental agency having enforcement or regulatory authority. Copies
of all reports and complaints are filed and used for advising the
Governor and the Legislature on needed corrective legislation or
regulation.
During the past two legislative sessions the office has prepared,
and made available upon request, a list of proposed legislation
of direct interest to consumers. The office also conducted research
on bills and made information available to those who requested this
service.
The increasing complexity of the market place, the proliferation
of consumer protection laws and the widespread use of credit are
some of the factors which contribute to the continuing need for
consumer education in the following areas: (a) family economics,
so that the consumer can obtain the highest standard of living
possible from his available resources; (b) wise use of credit and
its effect on the living standard and financial security of the
individual; (c) existing consumer protection laws and sources of
assistance through federal or state regulatory and enforcement
agencies; (d) rights, privileges and responsibilities of the con-
sumer as a partner in the economic system.
The Consumer Counsel is working closely with the community relations
consultants at the State Service Centers in an effort to solve some
of the problems that confront consumers in low income areas, and
with the cooperation of business and industry, an effective program
of education and involvement is currently under way.
Surveys that have come to the attention of this office indicate that
if, indeed, the "poor pay more, it is because it is often necessary
for them to shop at so-called "mom and pop" stores rather than the
large supermarkets. The Consumer Counsel has encouraged supermarkets
to open branches in the so-called "disadvantaged" areas and has
also been instrumental in bringing supermarket management together
with community relations consultants for the purpose of discussing
and working out consumer problems in those areas.
It was noted that very often welfare recipients could not readily
get their checks cashed at other than small, independent stores where
a fee is charged and where it is assumed the consumer will do his
shopping. The Consumer Counsel is publicizing the recently enacted
legislation making it possible for consumers to obtain identifica-
tion cards (other than a driver's license) from the State Department
of Motor Vehicles.
Steps have been taken to encourage industry, in cooperation with the
Consumer Counsel to take an active interest in consumer protection
through consumer education which we believe to be a potent creative
alternative to what has been described as a proliferation of regu-
latory legislation at the federal and state levels of government.
The Consumer Counsel, in cooperation with the Division of Adult
Education of the Los Angeles city schools, has been assigned to a
series of six half-hour television productions on issues which
relate directly to consumers. These will include how to purchase
and obtain repairs to automobiles, family law, purchase and care
of fabrics, real estate rental and purchase, etc.
-2-
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
The California Public Employees' Retirement System provides and administers a
broad range of retirement, health insurance and Social Security benefits for a
large segment of California's public employees.
A series of retirement, death and disability benefits for State employees, all
classified school employees (excluding those of the City and County of San
Francisco) the employees of 260 cities, 34 counties and of some 270 other public
agencies constitutes the System's major programs. From 40 to 60 public agencies
are brought under contract for retirement purposes each year. This State-wide
retirement system operates on a reserve, or funded, basis with the result that
nearly one-third of the cost now comes from investment income. In close co-
ordination with retirement action are the coverage and reporting phases of the
Federal Social Security program for California's public agencies, which provides
Social Security coverage for some 390,000 employees of 2,570 California public
agencies.
Multiple choice plans of both basic and major medical insurance are developed
and administered for State employees and, as a result of recent legislation,
for employees of public agencies by contract.
CURRENT PROGRAMS AND PROGRESS
Retirement Benefits
Almost 400,000 public employees in California participate as potential recipients
in the benefits that are provided. Unfortunately, the level of benefits provided
varies from employer to employer.
In cooperation with the local jurisdictions, we look forward to the time when a
common level of benefits, sufficiently high to provide a realistic benefit will
be available to all our recipients. A small step in this direction was achieved
in 1968 when a modest increase, related to the cost-of-living index, was incor-
porated into our benefit structure. This increase was not just a "one-time"
feature but will be automatic in the future as it relates to the 48,000 presently
retired employees together with those who will retire in the future. This benefit
is being provided by increased fund income due to improvements in investment
policies and practices.
Health Insurance
Absenteeism due to sickness or illness and the resulting costs of the employer
have long been a problem to both private and government organizations. One
effective method of reducing these costs is to encourage and make it possible
for employees to take advantage of available medical measures and to seek
treatment at the first appearance of symptoms indicating illness or disease.
Income maintenance to the employee who faces high medical costs is equally
important.
From a governmental rather than an employer viewpoint, we must also consider the
problems faced by those who retire. Usually they are an older group more apt
to incur medical expenses and usually suffer a decrease in coverage at a higher
cost, or in some cases, total loss of coverage, upon termination of employment.
Our basic plans provide equal benefits for the retired persons at the same cost
as for present employees. We are one of the few employers throughout the nation
who initially provided equality of treatment between employees and annuitants.
Coverage under these plans now extends to over 100,000 employees and 16,000
annuitants. Despite significant increases in medical costs, the premiums in our
two largest plans were either held level or decreased this year.
Recently, participation in our health benefits plans has been extended to those
public employers who contract with us for retirement coverage.
Late in 1968, major medical plans, providing true catastrophic benefits were
developed and offered to our members. Over 20,000 persons enrolled immediately
and we expect this number to increase to 40,000 in the near future. The pre-
miums for these plans were realistic in terms of the coverage.
Further advances are needed in coping with the continuing increase in cost of
medical and hospital services and in providing increased employer participation
in the premium cost.
Economic Impact
As a public function, the employer contributions must rely upon tax revenues
as a source of funding. However, such revenues eventually are returned to the
economy of the country with the major impact within the State.
There are three major ways in which this occurs. The ultimate payment of bene-
fits tends to reduce demands on other social benefits provided by government to
those in need. Each year the monies paid in benefits is returned to the economy
by way of the recipients' purchasing power. In 1968, monthly payments were made
to 48,000 persons, predominately California residents, totaling $145 million.
-2-
Last, and perhaps most important, the employer and employee contributions
held in trust (now in excess of 3 billion dollars) have a strong emphasis on
California's economy. These funds are invested in a wide variety of holdings
with current heavy emphasis on common stocks which were purchased for the
first time in December, 1967.
During the last five years over $600 million has been placed in California
mortgages and this will continue, based on the present market conditions, at
an annual rate of about $150 million for at least the next five years.
The revenue produced by the fund is now funding nearly one-third of the total
retirement costs. The remaining two-thirds is split between employee contri-
butions and employer contributions.
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March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
DEPARTMENT OF STATE FIRE MARSHAL
The responsibility and objective of the State Fire Marshal is
to protect the lives and property of California citizens from
the effects of fire, panic, and explosion. This responsibility
is fulfilled through the establishment and enforcement of regu-
lations regarding fire, panic, and explosion safety.
A coordinated program for administering state fire safety laws,
rules and regulations has been established between the office
of the State Fire Marshal and local city, county and district
fire officials. This coordinated program was made possible by
the creation of the State Fire Advisory Board in 1945. The State
Fire Marshal, with the assistance of this board, develops fire
safety standards and administers and enforces these standards.
Through the board, it has been possible to develop uniform state-
wide standards of fire safety and provide for their administration
and enforcement without creating overlapping authority and dupli-
cation of effort, and at the same time preserve local autonomy.
Design drawings and specifications of public and private buildings
are reviewed for conformance to minimum fire safety regulations
and standards. Field enforcement assures continual conformance
through on-site inspections. Materials and equipment which con-
form to fire and panic safety regulations and standards for
building construction are compiled and published annually.
The State Fire Marshal also establishes regulations relating to
fireworks, explosives, portable fire extinguishers, decorative
materials, wearing apparel, and flammable liquids. In addition
the State Fire Marshal maintains a laboratory for research and
for the testing of various construction and other flammable
materials.
-2-
CURRENT PROGRAMS AND PROGRESS
Uniform Hospital Fire Safety
Due to the construction of many new hospital facilities in Cali-
fornia and the rate of hospital employee turnover, the problem of
fire safety oriented hospital personnel is critical in many areas
of the State.
Today, however, all hospital employees in California are embarked
upon a uniform fire safety training program which, over a period
of time, will encompass most of these employees wherever they may
locate within the State.
This program, developed by the State Fire Marshal in cooperation
with the State Department of Public Health, will provide a state-
wide standardized level of safety beneficial to both patients and
employees alike. The program has received such widespread atten-
tion that ten other states have requested copies of the training
material and details of the entire program and have indicated they
intend to adopt the same program.
Within the more than 1,700 hospitals, nursing homes, and similar
patient care facilities in California, an average of 110,000
patients annually will be the ultimate beneficiaries of the pro-
gram.
Family Care Homes
Because of the change of emphasis in the mental health program,
directed toward getting people out of institutions and into an
environment more nearly that of the family home, and the need to
house juveniles in other than custodial or correctional facilities,
there is a constant need for people who will open their homes to
these purposes.
There was, however, a problem in that the regulations of the State
Fire Marshal imposed certain restrictions, sometimes hard to accom-
modate, upon these homes.
Recognizing this problem, the State Fire Marshal, after securing
the cooperation and advice of the appropriate state agencies and
meeting with the organizations operating programs of this type
throughout the State, has written regulations for the purpose of
providing reasonable fire and life safety in family care homes,
licensed or certified to care for six or less persons, and, inso-
far as possible, at the same time preserving the basic concept of
a private family home.
-3-
By doing so, there will now be available many more homes for
those people coming out of our institutions and for those juve-
niles in need of a foster home.
Regulation of Explosives
Some years ago a truck loaded with dynamite and a blasting agent,
formulated out of ammonium nitrate, caught fire and exploded in
the city of Roseburg, Oregon. Death and destruction were wide-
spread. Subsequent investigation revealed it was common practice
not to include blasting agents when computing the amount of explo-
sive material that could be stored or transported and, in fact,
normal explosives regulations did not apply to these blasting agents.
Blasting agents are nitro carbo nitrate substances, usually ammo-
nium nitrate, mixed with certain organic compounds. One of the
problems was that ammonium nitrate has such widespread use in agri-
culture as a fertilizer there is a tendency to overlook its
explosive qualities when formulated as a blasting agent.
Because blasting agents are materially less expensive than dynamite
or other explosives, and because they are considerably easier to
work with, they are gaining widespread use in quarry operations
and highway construction. Consequently, the law relating to explo-
sives was rewritten to include blasting agents among all other
explosive materials. At the same time, the law was also strength-
ened in the issuing of permits and in the use, storage, and
transportation of all explosives so as to preclude the possibility
of explosives getting into the hands of unauthorized or unreliable
persons. Better safety will be provided without restricting the
legitimate use of explosive materials.
Fireworks Kits, Emergency Signaling Devices, Model Rocket Engines,
and Agriculture and Wildlife Fireworks
California has long enjoyed one of the better state laws regulating
the use of fireworks. This law provides for the use of certain
closely inspected and regulated "safe and sane" fireworks but pro-
hibits the use of "dangerous fireworks."
Over the past few years, however, there has been a growing trend
to make available, through advertisements in several national
magazines, materials and explosive substances that could be mixed
or assembled into dangerous fireworks. Also, these materials
could be obtained within the State. Numerous injuries were the
result of these so-called fireworks kits.
Consequently, the law regulating fireworks was amended, prohibiting
the sale of any assembly of materials or explosive substances which
are designed or intended by the seller to be assembled by the
person receiving the material or explosive substance into dangerous
-4-
fireworks. This prohibits the sale of such material and explosive
substances within the State. Taken into consideration with a
federal law that prohibits their shipment into a state which for-
bids their use should remove the availability of these materials
and substances and should reduce the injuries that were occurring.
At the same time, recognizing the need for emergency signaling
devices for use by aircraft, boats, and outdoorsmen, a simplified
method of approving such devices was adopted and the fee for their
manufacture, export, import, or sale was reduced.
Also, because of their need by the farmers, the fee to manufacture,
import, export, or wholesale agriculture and wildlife fireworks
was reduced.
In addition, because of the growing interest in outer space and
the development of scientists, model rocket clubs are on the
increase. To make available a wider variety of rocket engines to
these clubs, the fee to manufacture, import, export, or wholesale
these engines was reduced.
By these changes, greater safety will be provided while at the
same time making available at a reduced cost those products in
which there is actually a need.
Protecting California's Educational Facilities Against Fires
During 1968 hundreds of thousands of dollars worth of school,
college, and university properties were destroyed by fires of
incendiary origin. While exact figures are not available, there
has been an alarming increase each year of this type of fire involv-
ing our educational facilities. The very recent incidents and
losses incurred on the campuses of the University of California at
Berkeley, San Fernando State College, and San Francisco State Col-
lege have accentuated the issue.
Although there does not seem to be an immediate solution or cure
available, since there appears to be a relationship between these
fires and the overall socio-economic problem existing today, the
State Fire Marshal is studying the feasibility of reducing these
large losses by means of the installation of early detection and
warning devices or by fixed fire extinguishing systems.
The total problem, including a comparison of the fiscal impact of
cost and loss factors, will require a very careful and comprehen-
sive study and analysis.
Franchise Tax Board
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
FRANCHISE TAX BOARD
The Franchise Tax Board is responsible for the administration of three laws,
the Personal Income Tax Law, the Bank and Corporation Franchise Tax Law, and
the Senior Citizens Property Tax Assistance Law.
The Bank and Corporation Franchise Tax was first imposed in 1929 and the Per-
sonal Income Tax in 1935. The Senior Citizens Program took effect for the
first time in 1968.
CURRENT PROGRAMS AND PROGRESS
MAJOR CHANGES IN TAX LEGISLATION
When a Legislature enacts major changes in an income tax law, the impact is
felt immediately by the agency which administers the law and later, during
filing time, by the public.
The impact of Senate Bill 556, enacted during the 1967 legislative session,
can be shown by comparison of revenue collected during 1966-67 fiscal year
and 1967-68 fiscal year when the provisions of SB 556 were in effect.
During the 1966-67 fiscal year, the department collected $500 million in Per-
sonal Income Tax and $452 million in Bank and Corporation Tax for a net total
of $952 million. In contrast, Personal Income Tax collected during the
1967-68 fiscal year was $951 million; Bank and Corporation Tax was $579 mil-
lion for a total of $1.53 billion.
This increase in revenue caused many added problems for the taxpayer and
added responsibilities for the administering department. For example, part
of the new tax law involved a personal income tax estimate payment for cer-
tain taxpayers. In a very short time, the department had to locate the tax-
payer liable for estimate payments, prepare and send out billings, and also
educate them to the necessity for this new program in order to obtain com-
pliance.
The initial results were satisfactory, bringing in $131 million by the
October 31, 1967, filing deadline. Matching returns filed with estimate pay-
ments represented a major new function complicated in many cases by individuals
using different social security numbers on documents meant to match.
3/6/69
Franchise Tax Board
RESULTING COMPLIANCE PROBLEMS
Because of the changes in the tax structure, almost every taxpayer found his
liability to be considerably heavier in April of 1968 than it had been pre-
viously. This left many individuals either unable or unwilling to pay their
liability in full on April 15.
From this point forward, the impact of the new legislation was felt by the
compliance sections which were faced with the task of collecting delinquent
accounts. Considerable effort was put into this phase of operation in an
effort to educate the delinquent taxpayers in order to prevent recurrence
during the 1968-69 filing period.
SENIOR CITIZENS PROPERTY TAX ASSISTANCE PROGRAM
The Senior Citizens Property Tax Assistance Program functioned very well dur-
ing its initial year, 1968, and nearly eight million dollars was returned to
58,000 qualified claimants. All claims paid last year have been stored on
computer tape, and during the filing season this year, forms will automatically
be mailed to the eligible claimants who filed with us originally. This should
accelerate the filing and handling of claims during 1969.
WORK STANDARDS PROGRAM
In 1966, this department was authorized to initiate the installation of a pro-
gram of using engineered work standards. Work standards systems identify how
much time operations should take as contrasted to the historical standards
which identify how much time they did take. The program was intended as, and
has been, a pilot program for application in other areas of State government.
Through the program, the department is achieving improved effectiveness
through better manpower planning and scheduling. It is also able to effect
orderly adjustments between manpower and workload while executing a highly var-
iable number of functions.
Savings on the last completed fiscal year, compared with the costs of carry-
ing out the program, are indicative of the progress being made. The program
cost $189,000 during fiscal year 1967-68, and realized savings of $403,000.
This resulted in a net saving of $214,000. Most of this was accomplished through
the abolition of 93 permanent positions as well as the absorption of normal
workload increases for the 1968-69 year. This latter represents an estimated
24 equivalent positions. Work improvements, although relatively intangible,
are an additional source of savings.
These savings represent a major accomplishment when it is considered that this
program was established and developed during the same period that the depart-
ment was coping with the added administrative responsibilities and procedures
resulting from the major tax changes introduced with the passage of Senate
Bill 556.
3/6/69
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
DEPARTMENT OF GENERAL SERVICES
From its inception, the Department has been dedicated to the con-
cept of better business methods in State government. The frame-
work has been provided to assure continuing improvements by
consolidation of administrative functions and the centralization
of operating services. Appropriate liaison has been established
with all client agencies to assure a continuation of essential
services formerly provided by themselves. Emphasis has been
placed on both immediate and long range planning to improve
internal operations and management information systems.
The prime objective of the Department is to make the maximum
contribution possible to the operating efficiency and economy
of all agencies, departments and organizations of State govern-
ment. The Department's policy is to accomplish the goal by
continuing improvement in the quality of its services combined
with judicious and moderate exercise of its various statutory
controls, powers and authorities.
The Department is pursuing its goals by the development and
application of uniform standards and administrative policies
throughout State government. Centralized purchasing, stringent
contract administration, and the expertise of highly qualified
staff specialists have provided agencies with services which
would be difficult for them to justify individually. By place-
ment of these responsibilities under a central control, State
agencies are better able to concentrate their time and effort
on their principal missions.
In law, and in practice, the Department of General Services has
a dual role. An obvious role is to provide a variety of ser-
vices to other State agencies more efficiently and economically
than they can provide for themselves. The Department also has
the responsibility of providing leadership in the improvement
of Statewide administration.
Progress has been realized by increasing workload without
adding staff, by raising the quality level of service, and by
making improvements that have resulted in substantial savings.
Although the Department feels it is making substantial progress
toward meeting the established goals, there is still much to
be done. The scope of the departmental activities is dictated
by the development of the State and its ever-growing population.
The Department is striving to further improve its communications
with all State agencies so that their requirements may receive
prompt and effective solutions.
-2-
The Department assumed 217 Task Force recommendations estimated
to produce savings of $50.6 million. 122 recommendations have
been implemented, 89 are in process of implementation, and 6
require legislative approval. The Task Force savings can be
exceeded in the foreseeable future. It is believed that $80
million or more is a possibility when other departmental economy
plans underway are fully implemented. From 1 February 1967 to
31 December 1968, in carrying out the Governor's program, direct,
indirect and deferred savings of more than $40 million have been
realized in its areas of responsibility.
As the sixth largest Department in State government, the activ-
ities and accomplishments are extremely diversified. In many
instances, the public is unaware of the scope of the complex
departmental responsibilities. General Services is a supplier
(purchasing and stores) a landlord (facilities planning) a
communicator (communications and transportation), a producer
(printing plant), and a builder (office of architecture and
construction).
Divisions that have recorded noteworthy accomplishments during
this period through the implementation of departmental and Task
Force recommendations are:
CURRENT PROGRAMS AND PROGRESS
PROCUREMENT: During 1967 and 1968, in Purchases, State Agencies
Allocated $213.4 million, Spent $199.9 million, Saved $13.5
million. These savings are the result of new purchasing pro-
cedures, sealed bids, elimination of negotiated actions and the
reduction of sole source purchases. The Comptroller General of
the United States in his March 29, 1968, report to the Congress,
after a study of purchasing procedures in several states, recom-
mended that the U. S. Government consider the adoption of certain
California purchasing procedures. The review indicated that out
of 197 comparable items, the State of California obtained lower
prices on 156 items. The report on items checked showed that U.S.
costs for like items averaged 12.4% above those of California.
Procurement went generic in the purchase of drugs. It established
a Drug Advisory Committee and a Generic Drug Contract. The
Committee consists of professional medical persons and manufac-
turers' representatives who provide an expertise that will be
beneficial to the State. The Committee has identified critical
and non-critical drugs, assisted in the formulation of stringent
criteria for prequalification of vendors, reviewed drug contracts
and recommended changes in formulary when determined necessary.
The result has been 30-day faster delivery, smaller inventories,
fresher stock, and a single supplier. Hospitals are now able to
make direct purchase through sub-purchase orders to further
expedite delivery of needed pharmaceuticals.
The law permits local agencies to enjoy State purchasing power.
On a voluntary basis, nine public entities enjoy substantial
savings for the taxpayer (gasoline, oil, automobiles).
-3-
FACILITIES PLANNING: State agency landlord takes hard look at
space requirements. On 1 April 1967, refined 1 August 1967,
the Governor approved a State Space Standard. Potential econ-
omies when completed reduce the present State space from 10
million square feet to 8 million square feet, a projected savings
of $8 million per year.
Will it work? Yes, inventory of facilities, space control,
centralized leasing with computerized information will in time
be a reality. The Governor's Task Force indicates savings of
$300 million in 25 years.
Facilities Planning is charged with the responsibility of space
utilization, centralized control of leasing, and the enforcement
of new space standards for all State agencies. The impact of
Division activities is directed to both leased and State-owned
facilities. Their advanced planning program is now approaching
realization. In one Northern California area there are 17 State
agencies scattered in 12 locations. It is proposed to consoli-
date these agencies into one facility which will result in
common utilities, parking and combined supporting office func-
tions.
COMMUNICATIONS: Governor's Task Force estimates savings potential
approaching $2 million. The Communications Division has currently
accomplished 70% of these savings; it is estimated the Task
Force's prediction will be exceeded. Working cooperatively with
the telephone industry, unnecessary equipment has been removed,
increasing the usage of State leased line. The standardization
of specifications and the consolidation of 1967/68 communications
equipment purchases have resulted in savings and maximized com-
petitive bidding. Revised accounting procedures have provided
a monthly billing on a direct cost basis to State agencies.
Future services to the State agencies and the public will be
realized through the advisory capacity that this division main-
tains over the State's communications system. This division
maintains 9,000 two-way radios and 2,000 radio stations with a
budget that exceeds $2 million.
Communications Division advises and assists law enforcement.
Implementation of an automated, expeditious and expandable tele-
type net for State and local law enforcement agencies has been
guided by the Communications Division. This system--known as
"CLETS" (California Law Enforcement Telecommunications System) --
permits agency access to computerized information systems oper-
ated by the FBI, Department of Justice, California Highway Patrol,
Department of Motor Vehicles, and local law enforcement on a
Statewide basis.
Through joint effort with Water Resources, the Division has been
instrumental in design, procurement, and maintenance of communi-
cations equipment for flood forecasting operations which is
utilized as an early warning device to area residents.
-4-
STATE PRINTING PLANT: Board of Education experiences early
delivery of textbooks for $1,005,439 less than estimated amount.
This action prompted a current study by the Department of Educa-
tion. The Legislative Analyst stated in his report (HR 249/69)
that the State printing costs were 62% of the textbook publishers'
sale price. Procedures have been proposed and implemented to
assure an even further streamlining of the textbook project to
provide better service and approach additional savings. 26,503
orders were processed by the State Printing Plant last year.
Of this amount, $2,435,289 was billed to the Legislature for
its printing requirements.
Composition represents the most costly segment of the printing
operations. 71% of the cost of legislative publications is in
this area. Therefore, it is logical that automation should be
given a high priority in the modernization program. Composition
costs for Legislative journals for April and May 1968 were twice
as high as national industry production standards, and small
job printing projects almost 2-1/2 times higher in composing room
costs.
Office of State Printing reports that savings from February 1967
through October 1968 are $2,901,583, quality remaining equal to
that of private industry.
BUILDING AND GROUNDS: Intensive studies and careful analysis
clearly indicated a major change in the State's custodial program
could be accomplished with substantial savings to the taxpayer.
The program, now in its second year of implementation, has been
a complete success. 141 positions were abolished; there were no
layoffs; staff supported management's decision; results were
acceptable, and the taxpayer benefited by a $700,000 annual
actual reduction in cost of State government.
TRANSPORTATION: The Governor's Task Force recommends a Statewide
Transportation Fleet Management with potential savings of $3
million to $6 million. The Department is undertaking to work
toward implementation of this recommendation with funds available.
Potential development of a departmental fleet operation consist-
ing of a management information system and a cost-accounting
system is a possibility. This will be the first step toward
obtaining a Statewide multi-agency information and accounting
system to measure fleet usage.
OFFICE OF ARCHITECTURE AND CONSTRUCTION: Staff reduced by 121
positions (15%) ; work methods improved through team production,
use of computerized calculations, workload forecasting, manpower
planning and project controls. Private architects and engineers
are hired as needed. Output increased by 23% (from $185,000 to
$228,000 annually per man; goal $500,000 by July 1970). Corres-
pondingly, overall savings equal 3% of projects' construction
-5-
value. The goal of 4% reduction by July 1970 will provide $2.6
million annual savings (based on $65 million production).
Savings--direct, indirect, deferred: Funds returned to appro-
priation source following project completion, less augmentations
expended and exclusive of savings from deferred or cancelled
projects, $5,910,981; capital outlay program modifications,
$167,500; administrative savings, $162,371; personnel reductions,
$2,063,496; total savings $8,304,348.
TO CARRY OUT THE GOVERNOR'S PROGRAM, THE DEPARTMENT'S GOALS MUST
REMAIN HIGH AND CONTROLS TOUGH. Many areas remain untapped; the
potential for further savings, with good service and quality
merchandise, is within our grasp. Cost conscious attitudes,
cooperation between departments and enlightened management with
enthusiasm should even surpass the Governor's expectations.
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
OFFICE OF MANAGEMENT SERVICES
Current Progress and Programs
The State of California, consistent with the intent to curtail
costs and suppress taxes, is employing electronic data pro-
cessing (EDP) wherever possible. The State views electronic
data processing technology as an indispensable tool for handling
information and assisting decision makers in achievement of
organizational goals.
The FY 1968-69 Budget includes an expenditure of approximately
$46,000,000 for this purpose. In addition, the University of
California receives some $15,000,000 annually from other sources
(i.e., federal grants) for research activities involving EDP.
Some 3,600 data processing personnel and 125 computers are
involved.
In late 1967, the Office of Management Services, the State
Electronic Data Processing Policy Committee and the Intergovern-
mental Board on Electronic Data Processing were established by
Governor Reagan for more effective utilization of EDP. All
three entities were given statutory authority during the 1968
Regular Session of the Legislature.
The EDP Policy Committee, chaired by Lieutenant Governor Ed
Reinecke, is composed of all elected constitutional officers,
representatives of both houses of the Legislature, all Agency
Secretaries, the Chairman of the Intergovernmental Board on EDP,
three public members, and the Directors of Finance and General
Services. The Director of Management Services acts as Execu-
tive Secretary of the Committee.
Management Services and the Policy Committee focus their efforts
on the development and implementation of policies, plans, stan-
dards, procedures and methods of evaluation for the utilization
of EDP within the State government.
The Intergovernmental Board on EDP, composed of four represen-
tatives from the State, three from the counties, three from the
cities and two from the schools, is concerned with the exchange
of data between these levels of government as well as with the
federal government and special districts.
-2-
Coordination of EDP Usage
As a result of the program, greater control and awareness of
EDP now exists, some money has been saved and an environment
has been created for further positive improvements very shortly.
For example, since program inception, consolidation of data
processing services for five departments into two data processing
centers was accomplished, studies were initiated on additional
consolidations, new procedures for the acquisition of EDP
equipment and services were established and new EDP personnel
policies were adopted.
In addition, policies have been established that EDP should be
performed at minimum cost consistent with the level of service
required and that, while full consideration should be given to
needs of individual agencies, the interests of the State as a
whole are paramount.
Further, the program has been involved with the establishment or
improvement of EDP facilities or systems for some fourteen
government agencies during the last year.
Master Plan Development
In January, 1969, a short-range master plan for the use of EDP
in the State of California that was prepared by Management
Services was adopted by the State EDP Policy Committee.
The plan, focusing on the executive branch of State government
(excluding the University of California) includes a statement of
the problem, a discussion of the environment, a schedule for
action, and a discussion of the constraints that exist in the
California governmental setting related to effective use of EDP.
Actions scheduled as part of the plan include the further con-
solidation of data processing facilities, a detailed study of
data processing personnel policies and practices, development of
an improved method of maintaining cognizance of data processing
expenditures, equipment, personnel and applications, and
establishment of methods and criteria to evaluate effectiveness.
A long-range EDP master plan will be recommended by Management
Services for adoption by the State EDP Policy Committee by
approximately June, 1969. This will provide optimum utilization
of electronic data processing systems by State government and
also will enhance coordination with local and federal govern-
ment agencies.
-3-
Fiscal and Personnel Management Information System
The 1968 Legislature charged Management Services with the
responsibility to conduct a study of the feasibility of a
comprehensive fiscal and personnel management information
system to improve availability of information for executive
and legislative decisions and to reduce duplication of
records and processes which entail substantial costs. The
study is underway and a progress report will be submitted to
the Joint Legislative Budget Committee by April 1, 1969.
Manual on Intergovernmental Information Exchange
The Intergovernmental Board on Electronic Data Processing has
published a "Manual of Guidelines for Development of Inter-
governmental Information Systems." This manual provides
standards for electronic data processing in the areas of pro-
gramming, system design, communications, documentation and
personnel.
March 4, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
STATE PERSONNEL BOARD
Its employees are an organization's most important resource. Based on this
premise, the State's personnel program is geared toward attracting, motivating,
developing, and retaining an effective work force.
The State Constitution requires the appointment and promotion of employees in
the civil service be by competitive examination. The State Personnel Board
administers this program. In addition, it performs other basic activities which
make up a comprehensive personnel program such as recruitment, job evalu-
ation, compensation, training, and employee relations. The scope of the State's
personnel program reflects the belief that the development and utilization of
employees are a vital ingredient in providing the most effective services at the
most reasonable cost to the citizens of California.
CURRENT PROGRAMS AND PROGRESS
Greater Career Opportunities for the Disadvantaged
In keeping with the Governor's executive order calling for State assistance in
hiring the disadvantaged, a Career Opportunities Development Unit has been set
up to: (1) ease the hiring of the disadvantaged; (2) publicize existing job oppor-
tunities; (3) reshape jobs to create new career opportunities and to increase the
use of employee skills; and (4) to upgrade skills of disadvantaged persons who
have been recruited for State service. Examples of the new job opportunities
created include Hospital Worker, Correctional Program Assistant, and Parole
Aid. Also being developed is a "career ladder" which allows disadvantaged
individuals who have been hired by the State to prepare for professional and
technical positions through a combination of experience and appropriate train-
ing. By monitoring the progress of these efforts, the Personnel Board will
endeavor to make sure that successes achieved will be consistent with merit
employment standards.
-2-
Innovative Approach to Management Development
A Management Development Institute including a training center facility has
been established within the past year. In its first year of operation, the Insti-
tute is offering three programs. First, is the Management Development School
where 450 middle managers this fiscal year are receiving a comprehensive
course covering the concepts and practices of successful management. Second,
is a program for the coordination of college level training in government, organi-
zation, and management for individuals in the early stages of their careers as
supervisors. Third, is a program providing participation by State and local
government managers in training directed to the management of resources for
community development. Through a Federal grant-in-aid, this activity will
seek to improve management capability and to emphasize the intergovernmental
nature of community development.
New Focus on Employee Training and Development
As a part of the Governor's Policy on Individual and Team Development, a new
focus on training in State service of the individual and of management teams
within an organization is taking place. The goals of this policy include: (1)
increasing the problem-solving and leadership capacity of State managers;
(2) encouraging self-development efforts of each State employee; and (3) stimu-
lating creative and innovative approaches to State operations. Two new advi-
sory groups with broad representation have been set up. One is the State
Personnel Development Advisory Committee. It is made up of several State
executives, personnel and training executives from private industry, and repre-
sentatives from the academic community. Their job will be to review training
policy and advise on training needs within State service. Another is the Cali-
fornia Public Service Training and Education Advisory Council whose members
come from local government, the State, higher education, and the public. This
group will coordinate the development of new training activities involving both
State and local government.
Continuing Effective Employer-Employee Relations
In response to House Resolution 530 (July 30, 1968), the Personnel Board has
submitted a report to the Legislature which includes a suggested approach for
formalizing employer-employee relations in the State civil service. This
approach maintains a proper balance between increased employee participation
in decisions affecting their welfare and working conditions, while at the same
time preserving the principles of merit employment, appropriate managerial
discretion, and influence of elected officials on public policy.
-3-
Planned Reduction of Industrial Accident Costs
A plan to reduce occupational injuries among State employees by 10% during
the next year has been adopted by the Personnel Board and submitted to the
Governor. Among the steps recommended to achieve this goal are:
(1) A Governor's safety policy statement to motivate departmental
action.
(2) Cabinet Secretary review and evaluation of departmental accident
prevention programs with accountability for positive results.
(3) Management and supervisory responsibility for accident reduction.
(4) Early return of injured employees to modified work assignments
suited to their physical condition.
Interchange of Employees
Where it is mutually advantageous, arrangements are being made to increase
the interchange of employees between the State and other public agencies.
Several of these temporary exchanges have taken place and the State is working
toward greater use of this method of individual development and intergovern-
mental cooperation. The role of the Personnel Board in this activity is to
establish policies and practices designed to facilitate these interchanges.
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
DEPARTMENT OF PROFESSIONAL
AND VOCATIONAL STANDARDS
It is the responsibility of the Department of Professional and
Vocational Standards and its constituent agencies to serve and
protect the public. Consumer protection is the primary responsibility
of Professional and Vocational Standards and not the protection of
particular professions or vocations. To the credit of the Boards
currently serving the citizenry of California, the people of California
are recognizing the benefits of this service.
First created in 1929, the State Department of Professional and
Vocational Standards is today composed of forty (40) Boards, Bureaus,
Commissions, and Committees overseeing the licensing and/or
registration of approximately 777,000 Californians engaged in
occupations ranging alphabetically from Accountants to Vocational
Nurses.
CURRENT PROGRAMS AND PROGRESS
One of the greatest accomplishments during the past two years has been
in the area of efficiency and greater utilization of manpower and
brainpower by combining several of the Boards and Bureaus. The
activities of the Bureau of Employment Agencies and the Bureau of
Electronic Repair Dealers Registration have been combined under one
Executive Officer and have been operating smoothly and more
economically since the combination went into effect.
Other Board combinations which have resulted in savings both in money
and manpower include: Registered Physical Therapists and Licensed
Physical Therapists; Licensed Vocational Nurse and Psychiatric
Technician Examiners; Social Worker and Marriage Counselors; and,
the transfer of the Yacht and Ship Brokers Commission to the
Department of Harbors and Watercraft.
The Department has been successful in implementing a number of
recommendations of the "Little Hoover Commission" and eight
recommendations by the Governor's Task Force on Efficiency and
Economy including centralization of clerical duties in the
Los Angeles office and the renovation of that facility which is
now saving the Department an estimated $14,500 annually. Additionally,
all constituent agencies of the Department have been encouraged to
utilize the Department's in-house counsel as opposed to the more
expensive utilization of the Attorney General's office. To date,
all but one Board has complied in this respect.
-2-
Also, there were created a number of advisory committees composed of
individuals representing various segments of licensee groups. These
individuals serve without compensation and meet periodically in order
to provide intercommunications between their constituents and the
Department relative to current activities. To improve internal
communications, the Director has instituted a Department Employees
Council, the officers of which were named through a Departmental-wide
election.
Instituting Program Budgeting has been a goal of this Department and
the first program budget is now being submitted for the 1969-70
fiscal year. Efficiencies will be realized through creation of the
Data Processing Center, which is now becoming operational. The Board
of Equalization and the Department of Professional and Vocational
Standards are sharing EDP equipment to the advantage of each.
In July of 1968, under the auspices of the State Board of Medical
Examiners and the Department of Professional and Vocational Standards,
the first "Allied Health Conference" in the State of California was
held. Approximately 200 persons, representing every segment of the
healing arts, education, and employment fields attended. The
discussions concerned: (1) the burgeoning allied health legislative
demands causing a proliferation of new licensing board requests;
(2) the role of the Healing Arts Boards and their licensing functions
in meeting California's health manpower needs; (3) how California's
returning veterans, with service-connected health care training, may
be best utilized in California without further lengthy and expensive
training, and without lowering the present high standards.
Another first was scored by the Department on November 7 and 8, 1968,
when the first "Interstate Conference of Licensing Officials" was held
within the Continental United States. The states of Washington,
Oregon, Pennsylvania, New York, Wisconsin, Nevada, Michigan, and
California were represented. This fruitful meeting stimulated the
calling of a second meeting to be held in Nevada in the Spring of
1969. It is anticipated that further conferences will now be held
periodically.
A final accomplishment during the past two years was the Department's
successful quest to achieve Peace Officer's status for Investigators
of the Compliance Division in order to provide these individuals with
additional protection for services performed in the line of duty and
for additional recognition of their task by legal law enforcement
agencies.
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
STATE TEACHERS' RETIREMENT SYSTEM
The State Teachers' Retirement System exists to fulfill the
legislative and social mandate that teachers and others who retire
from government service are to be provided an income to take care
of their needs. The program also provides indirect assistance to
employing school districts in recruiting and retaining competent
teachers, and for the orderly retirement of the aged and disabled
teacher. These needs are translated into three objectives which
are: (a) to provide retirement allowances, survivor benefits and
death benefits for teachers who work in publicly supported schools;
(b) to aid in the recruitment and maintenance of a qualified body
of teachers in the public schools; and (c) to assure that all
members are aware of their rights, benefits and current status.
Membership is presently over 290,400 teachers and related personnel.
CURRENT PROGRAMS AND PROGRESS
Unfunded Accrued Liability
Since its founding fifty-five years ago, the System has not been
adequately financed. Periodic attempts were made to provide
required financing. In 1944, a pay-as-you-go method of funding
was adopted. It pays the cost of benefits as they become payable
after retirement. Benefits now being paid exceed $11.5 million a
month. The funds come from contributions made by the retired
teacher, a 3% of salary contribution from employing school dis-
tricts which, because of assessed valuation limitations, yields
only 2.4% of salary, and a contribution from the State General
Fund which, when added to the district contribution after deduct-
ing the teacher's contribution, is sufficient to pay benefits for
that year. The State General Fund contribution will be $71 million
in Fiscal Year 1969-70. It will exceed $100 million in Fiscal Year
1972-73. The rate of growth is accelerating and can only continue
upward.
The money received from school districts and the General Fund is
paid out in the year received to cover the cost of benefit payments.
There are no employer contributions in the Fund. There are approxi-
mately $1.4 billion of teachers' contributions in the Fund which
are already fully obligated either to pay refunds if the teacher
quits or to apply toward the cost of benefits paid if the teacher
dies or retires. Teacher contributions pay approximately 28% to
32% of the cost of benefits as they accrue. There are no employer
contributions to cover the remaining 68% to 72% of the current
service cost. This cost has been accruing over the years and now
totals between $3.5 and $4.5 billion. This is the unfunded accrued
-2-
liability or debt of the State to the Fund. In 1964, it amounted
to $2,124,274,000, and has grown an estimated $1.5 to $2.5 billion
since. Approaches to funding the System are under study by the
actuaries for the Joint Legislative Retirement Committee and the
System's consulting actuary.
The Computer
Until recently, the System had no computer facilities and was using
an antiquated punch card data processing system. In June 1968, an
inter-agency agreement was made between the State Teachers' Retire-
ment System, the Public Employees' Retirement System and Veterans
Affairs to form the first cluster using a third generation computer.
This approach permitted obtaining a highly sophisticated computer
needed to most efficiently handle the work of the departments, but
which none of the organizations individually could have justified
on either a use or cost basis. The combined effort has resulted in
obtaining a computer with adequate capacity at lower at lower cost
with planned full utilization. When all systems are on line, the
computer will run three shifts a day. Full conversion of the State
Teachers' Retirement System will take up to five years.
Law Recodification
The System operates under Chapter 4, Division 10 of the Education
Code. This law has not been revised since 1944. It has been
amended a great many times. It is redundant, contradictory and,
in general, a conglomerate of uncoordinated provisions. A recodi-
fication is in progress and will be proposed to the 1969 Session
of the Legislature. Following recodification, considerable work
to improve and simplify the law will be done.
March 6, 1969
STATE OF THE AGENCY MESSAGE
AGRICULTURE AND SERVICES AGENCY
DEPARTMENT OF VETERANS AFFAIRS
The objective of the Department of Veterans Affairs is to contribute to the
general welfare, economic well-being and rehabilitation of California veterans
by assisting them in reestablishing their position in civilian life. The
Department administers some programs to accomplish this, and assists veterans
or their dependents in obtaining benefits available from other sources,
CURRENT PROGRAMS AND PROGRESS
Project Involvement
Early in 1967, the Department of Veterans Affairs engaged in the establishment
of "Project Involvement" - an attempt to aid in coordinating the activities
of civic groups, veterans' organizations and others who wished to actively
participate in expressing their appreciation and good wishes to California
servicemen returning from Vietnam. The Project, which has gained national
recognition for its success, has several facets. California communities
are assisted in inviting war-wounded into their towns and cities for three
and four-day recreational trips -- mostly for the fishing and hunting the
different areas offer, but with occasional trips to take advantage of various
activities. Here in Sacramento, groups have attended Cal-Expo, the Sports
Show, two luncheons with Governor Reagan, and the Oktoberfest. Last December
a group spent three days in Palm Springs. The most popular excursions, and
those that are most gratifying, have been four trips to Soda Springs, where
groups of amputees are taught to ski. These indomitable young men have shown
surprising proficiency in a very short time. No cost to the State is involved
-- all expenses are raised from contributions from the private sector, both in
time and money.
Private donors have also made it possible for the Department to send over 2,000
State flags to California servicemen on duty in Vietnam who requested them.
More than 200 television sets, and an untold number of transistor radios have
been made available to our wounded in Oak Knoll and Letterman Hospitals --
again at no cost to the State.
AGRICULTURE AND SERVICES AGENCY
March 6, 1969
Earl Coke
Kenneth F. Hall
Secretary
Assistant Secretary
445-1935
445-1935
Department
Department Head
Deputies or Executive Assistants
Press Contact
Agriculture
Jerry W. Fielder
Raymond S. Long
Simon Nathenson
445-7126
445-8226
445-8614
Commerce
J. Bryan Sullivan, Jr.
J.B. Sullivan, Jr.
445-8010
445-8010
Consumer Counsel
Mrs. Kay Valory
Mrs. Kay Valory
445-3741
445-3741
Public Employees'
William E. Payne
Edward K. Coombs
William E. Payne
Retrrement System
445-7629
445-3684
445-7629
State Fire Marshal
Albert E. Hole
William S. Garrett
Robert E. Bishop
Frank J. McCarthy
445-4171
445-4171
445-4171
445-4171
Franchise Tax Board
Martin Huff
Bruce W. Walker
Richard Osborn
445-6678
445-7778
445-5946
General Services
Andrew R. Lolli
Robert E. Brooks
A. Earl Davis
Andrew R. Lolli
445-3441
445-1680
445-4422
445-3441
Management Services
Charles P. Smith
Perry L. Stauffer
Charles P. Smith
445-1932
445-1932
445-1932
Personnel Board
John F. Fisher
Kelvin D. Sharp
John F. Fisher
445-5291
445-5291
Roy W. Stephens
445-5291
Professional and
Henry M. Shine, Jr.
Arthur J. Costamagna
Frank Reynolds
Frank Reynolds
Vocational Standards
445-4465
445-4461
445-4461
445-4461
Teachers' Retirement
Michael N. Thome
C. Parker Anderson
Michael N. Thome
System
445-9070
445-9071
445-9070
Veterans Affairs
Harlan J. Johnson
Tom Strotman
445-3111
445-9518
STATE OF CALIFORNIA
SECRETARY, AGRICULTURAL AND SERVICES AGENCY
BIOGRAPHICAL SKETCH EARL COKE
Earl Coke is the first Secretary of the newly established Agri-
culture and Services Agency. A native Californian, with a lifelong
career in agriculture on the local, state and national level, Secre-
tary Coke was appointed as Director of Agriculture in January of 1967
by Governor Ronald Reagan, and was elevated to his present position
by the Governor in September, 1968.
The son of Walter W. and Minnie E. (Smith) Coke, Secretary Coke
was raised on a farm in San Bernardino County. He was graduated from
Chaffey Union High School in Ontario, California. He attended Pomona
College in Claremont, California (1919-1920) and received his Bachelor
of Science degree in agriculture from the University of California at
Berkeley in 1923. In 1955 he was awarded an honorary degree of Doctor
of Science from Clemson University's College of Agriculture.
Prior to becoming the Director of the California Department of
Agriculture, Secretary Coke was president of Consolidated Agricul-
tural Industries, a marketing organization in San Francisco. He
served in the Agricultural Extension Service of the University of
California from 1923 to 1935 as an assistant farm advisor and exten-
sion specialist in agronomy (1929). From 1935 to 1949 he was presi-
dent, general agriculturalist and a member of the board of directors
of Spreckels Sugar Company (San Francisco).
Returning to the University of California in 1949, he served as
Director of the California Agricultural Extension Service until 1955.
He took a leave of absence in 1952-53 to serve in the Eisenhower
administration as Assistant Secretary of Agriculture in the United
States Department of Agriculture. In this position he was responsible
for five agencies of the Department: Agricultural Research Service,
Agricultural Extension Service, the U. S. Forest Service, the Soil
Conservation Service and the Farmers Cooperative Service.
He was vice president of the Bank of America in charge of agri-
cultural loans and other activities from 1955 to 1965 when he became
president of Consolidated Agricultural Industries.
He is married to Ella Elizabeth Coke and has two sons and one
daughter: James Earl Coke, Jr., an architect; Thomas Richard Coke,
a member of the faculty of San Jose State College; and Mrs. Ralph
Whitney of Piedmont, California.
STATE OF CALIFORNIA
ASSISTANT SECRETARY, AGRICULTURE AND SERVICES AGENCY
BIOGRAPHICAL SKETCH--KENNETH F. HALL
Kenneth F. Hall, 30, assumed the responsibilities of Assistant
Secretary of Agriculture and Services Agency when the Agency was
first created in September, 1968. As Assistant Secretary, Mr. Hall
serves as assistant to Secretary Earl Coke in providing policy guide-
lines on behalf of the Governor to the twelve departments in the
Agency.
Hall is a native Californian and was raised in Pasadena, Cali-
fornia. He is a graduate of Pasadena Public Schools and holds a
Bachelor Degree in Political Science from the University of Redlands
and a Master of Arts Degree in Political Science from the University
of Southern California.
At the University of Redlands, Hall was one of one-hundred
students selected from across the nation to spend one year in Washing-
ton studying the federal political process. After receiving his
Bachelor of Arts Degree, he was selected by the University of Southern
California as the recipient of a Ford Foundation Fellowship grant for
graduate education in political science. He attended the University
of Southern California from 1961 to 1963 and received his Masters
Degree upon graduation. Additional honors received by Hall include
selection by the University of Southern California for membership
in Pi Sigma Alpha, a national political science honorary society,
and appearance in Outstanding Young Men of America, 1968 and Who's
Who in the West, 1969.
Prior to accepting appointment as Assistant Secretary of Agri-
culture and Services Agency, Hall served as Assistant Cabinet Secre-
tary for Governor Reagan. He joined Governor Reagan's staff in
December, 1966 during the transition between administrations. As
Assistant Cabinet Secretary, Hall was responsible for liaison between
the Governor and the Agency Secretaries, Departments, Boards and
Commissions.
From December, 1964 to December, 1966, Hall served the California
State Legislature as Administrative Assistant to Assemblyman Newton R.
Russell (R-Tujunga). Additional positions held by Hall include
Associate of Spencer-Roberts and Associates (1960 and 1962), a lead-
ing political campaign firm and secondary school teacher with Los Ange-
les City Schools (1963-1964).
Kenneth Hall is married to the former Lynn A. Pinnell and has
one child, Jolie Deanne. He is an avid skier and has a unique hobby
of collecting historical newspapers.
Department of Agriculture
State of California
DEPARTMENT OF AGRICULTURE
BIOGRAPHICAL SKETCH--JERRY W. FIELDER
Jerry W. Fielder, 54, an outstanding leader in California
agribusiness for nearly 30 years, became Director of the California
Department of Agriculture in March 1969.
Before his appointment, Fielder served as Chief Deputy Director
of the Department, a post he assumed in November 1968.
A native Californian, Fielder was graduated from the University
of California at Davis in 1939 with a Bachelor of Science degree
in agronomy.
Following graduation, he was assistant manager of the Blythe
Alfalfa Growers Association and then served two years as a naval
officer on a destroyer during World War II.
In 1946 he established the Dixon Dryer Company, an alfalfa
processing and dehydrating company with offices and plant in Dixon.
In 1960 he organized the Delta Dehydrating Corporation with its
plant at Clarksburg, and in 1963 he established the North American
Dehydrating Corporation with plant location at Rocky Ford, Colorado.
Both companies produce and process dehydrated alfalfa products and
sugar beet pulp.
Fielder has been a member of the Agricultural Advisory Council
of the University of California, was president of that body for one
year, and is a past president of the American Dehydrators Association.
He recently completed his 6th year as a member of the USDA Grain
and Forage Crops Research Advisory Committee. lie resigned as president
of the California Grain and Feed Association when he accepted his
position with the Department in 1968.
#
#
#
Department of Commerce
State of California
DEPARTMENT OF COMMERCE
BIOGRAPHICAL SKETCH -- J. BRYAN SULLIVAN, JR.
J. Bryan Sullivan, Jr., formerly commissioner of the Economic Development
Agency, was named director of the California Department of Commerce on
September 14, 1968.
Coming to state government from private industry, Sullivan, 46, was
employed as project data systems manager for the Lockheed Missiles and Space
Co. in Sunnyvale. In this capacity he directed Lockheed's companywide computer-
based data systems for product operations and control. Since 1954 he has also
served Lockheed as management controls manager for the Voyager Space Program,
organization planning manager, and in other corporate capacities.
A graduate in economics from U.C.L.A., Sullivan has taken graduate work in
economics and general management at U.C.L.A. and industrial management at
Stanford University.
He was research assistant for the University of California's Bureau of
Business and Economic Research from 1949-50, and served as a commissioned officer
in the U. S. Army during the Korean War. For several years Sullivan has served
as an economics officer and director of logistics on the general staff of the
351st Civil Affairs Headquarters Unit in the Army Reserve.
Sullivan is a member of the California State Chamber of Commerce Economic
Development Committee, the State Chamber Economic Advisory Council, and the
State of California Interdepartmental Research Coordinating Committee. He also
serves on the Executive Board of the California Job Development Corporation.
He is married and has four children.
#####
Consumer Counsel
State of California
OFFICE OF CONSUMER COUNSEL
BIOGRAPHICAL SKETCH--MRS. KAY VALORY
Mrs Kay Valory was appointed by Governor Reagan
as Acting Consumer Counsel on January 11, 1967, and directed
to make an in-depth study of the office to determine its
effectiveness and future goals. At the end of the study
she was appoint Consumer Counsel.
Mrs. Valory received her education at San Francisco
State College and the University of California at Berkeley.
She has long had a deep interest in good government and has
been active in civic and political affairs. She served
as State Vice Chairman of Governor Reagan's gubernatorial
campaign and at present is a member of the Republican
State Central Committee. Among her other affiliations
are the Walnut Creek Presbyterian Church and the California
Historical Society. In addition, she has been involved
in PTA, Cub Scouts, and Little League activities.
She resides in Lafayette where her husband, Mark,
is a designer-builder. As the mother of six sons, ranging
in age from seven to twenty-seven years, she brings to the
position of Consumer Counsel a thorough firsthand knowledge
of consumer interests and problems.
#####
February, 1967
Public Employees' Retirement System
State of California
PUBLIC EMPLOYEES' RETIREMENT SYSTEM
BIOGRAPHICAL SKETCH
WILLIAM E. PAYNE
William E. Payne became the Executive Officer of the California Public
Employees' Retirement System on August 27, 1956, a Retirement System which
has grown from a membership of approximately 187,000 at that time, to
approximately 400,000 currently.
Mr. Payne's service with the State of California dates from 1938, during
which time he has served in the Department of Motor Vehicles and subsequently
as Manager of the Farm and Home Purchases Division of the Department of
Veterans' Affairs.
Mr. Payne is a Past President of the National Association of State
Retirement Administrators and is currently Chairman of the Retirement Committee
of the Municipal Finance Officers' Association of the United States and Canada.
Born in Kansas in 1911, he received his AB Degree at the University of
California in Los Angeles, with two years of graduate work at the University
of California in Berkeley. He majored in Economics.
He was a Lieutenant in the United States Navy from 1942 to 1946.
February 27. 1969
State Fire Marshall
BIOGRAPHICAL RESUME'
ALBERT E. HOLE
STATE FIRE MARSHAL
Born in Globe, Arizona, August 16, 1920. Attended grade
schools in Arizona, Colorado, and New Mexico before moving
to Long Beach, California, in 1932. Completed education
in Long Beach public schools and was graduated from Poly-
technic High School. Also attended University of Southern
California, University of California, Los Angeles, and
Long Beach City College. Married, wife Joyce; son Michael,
a policeman for the City of Los Angeles; and daughter Sue,
a high school student.
Became a member of the Long Beach Fire Department in 1942,
enlisted in Army Air Corps in 1943. Flew 35 combat missions
in B-24's with the 8th Air Force. Awarded the Distinguished
Flying Cross, Air Medal with three oak leaf clusters, and
European Theater of War Medal with six combat stars.
Returned to the fire department in October, 1945. Pro-
gressed through the ranks of the department, by promotional
examination, to Engineer in 1947, Captain in 1950, and
Battalion Chief in 1961. Assignments as a Captain included
Training, Fire Suppression, and for eleven years Fire Pre-
vention. Assignments as a Battalion Chief included Fire
Suppression and five years in charge of the Bureau of
Fire Prevention as City Fire Marshal.
Retired from the Fire Department on May 1, 1967, and
appointed State Fire Marshal on May 3, 1967, by Governor
Ronald Reagan.
Member of the Governor's Council, California State Com-
munications Advisory Board, State Fire Training Advisory
Committee, California Fire Chiefs' Association, Inter-
national Association of Fire Chiefs, Fire Marshals
Association of North America.
*****
Franchise Tax Board
State of California
Franchise Tax Board
BIOGRAPHICAL SKETCH--MARTIN HUFF
Martin Huff, a Certified Public Accountant, became Executive
Officer of the California Franchise Tax Board September 3, 1963.
For five years prior to his appointment, he was the Auditor-
Controller of the City of Oakland.
Prior to that he was engaged in the practice of public account-
ing in the Oakland firm of Timpson, Boyle and Huff, CPA's.
Born in 1923, Huff received his B.S. degree in Business
Administration from the University of California in 1949.
Huff currently serves as a Vice President of the California
Society of Certified Public Accountants; Vice President of the
Sacramento United Crusade; and Vice Chairman, Citizens Advisory
Committee, Sacramento Unified School District.
Department of General Services
State of California
DEPARTMENT OF GENERAL SERVICES
BIOGRAPHICAL SKETCH- ANDREW R. LOLLI
Andrew R. Lolli, Major General, United States Army (ret), one of the nation's
top missilemen, is a combat veteran who was born in Illinois and reared in New Jersey.
A graduate of Dickinson College, Pennsylvania, 9 military schools including
the National War College, and did graduate work at several universities.
Ordered to active duty in 1940, and integrated into regular Army as a Captain
in 1946.
Holder of 19 decorations to include Distinguished Service Medal, Legion of Merit,
and the Bronze Star Medal for Valor. Worked at the highest levels of national and
international government. Participated in 11 international conferences to include the
Bagdad, Balkan, and Aegean-Black Sea Conferences.
NATO strategic long-range planner and former Commander of the 15th and
20th U.S. Army Corps and the Western NORAD Region.
Upon his retirement September 1, 1966, he joined the aerospace industry as an
executive for Hughes Aircraft. He was given a leave of absence from the aerospace
industry but continues his affiliation with the National Defense and Industrial Advisory
Council.
On February 1, 1967, Governor Reagan named him Director of General Services
of the State of California.
On July 1, 1968, he was named to the Advisory Panel of the National Academy
of Sciences and Engineering in the Research Division of Applied Technology, and on
October 4, 1968, he was named to the Federal, State and Local Government Advisory
Panel on Procurement and Supply by the Federal General Services Administration.
#####
Office of Management Services
State of California
OFFICE OF MANAGEMENT SERVICES
BIOGRAPHICAL SKETCH--CHARLES P. SMITH
Charles P. Smith is the Director of the Office of
Management Services for the State of California. He is respon-
sible for the planning, policy, standards, procedures and
evaluation related to the utilization of electronic data
processing in State government. In addition, he provides
liaison with the Intergovernmental Board on EDP.
Prior to assuming his present responsibilities in
November, 1967, he was Senior Technical Advisor to Management
at System Development Corporation (SDC). Joining SDC in May,
1961, his assignments included professional and managerial
responsibilities for the application of systems analysis and
information technology to civil government and the military
services. He is a former Parole Agent for the California Youth
Authority; Lieutenant in charge of the Juvenile Division of the
Pima County, (Tucson) Arizona, Sheriff's Office; and editor of
a weekly newspaper in Tucson.
Mr. Smith has a B.A. degree in political science and
an M.A. degree in sociology from the University of Arizona, a
masters degree in public administration from the University of
Southern California and he has successfully completed all courses
and examinations for the doctoral degree in public administration.
His dissertation is in progress and is estimated to be completed
in 1969.
California State Personnel Board
State of California
STATE PERSONNEL BOARD
BIOGRAPHICAL SKETCH - JOHN F. FISHER
John F. Fisher, Executive Officer of the California State Personnel
Board, was appointed to this position in 1947. Prior to that
time, from 1944 to 1947, he served as the Assistant Executive
Officer.
His employment has included work with the Federal Government in
Washington, D. C., followed by service with the Los Angeles
City Civil Service Commission as General Manager from 1941 to 1944.
He is a graduate of Stanford University and the Maxwell Graduate School
of Citizenship and Public Affairs at Syracuse.
Fisher is a former president of the Public Personnel Association and
member of its Executive Council. In 1966 he was awarded an Honorary
Lifetime Membership in that organization.
He has been called as a Consultant to the City of Philadelphia in
the organization of its personnel department; as a Consultant for
the University of Southern California on the program of its Institute
of Administrative Affairs in Iran; as Consultant for the Agency for
International Development in Turkey; and as a Consultant to Thailand
under the auspices of the Agency for International Development in
establishing standards for its civil service system.
1969
State of California
DEPARTMENT OF PROFESSIONAL AND VOCATIONAL STANDARDS
BIOGRAPHICAL SKETCH--HENRY M. SHINE, JR.
Henry M. Shine, Jr., veteran attorney associated with numerous governmental
activities, is director of the Department of Professional and Vocational Standards.
Shine, 47, of Sacramento, was director of the National Housing Center of the
National Association of Home Builders in Washington before accepting his appointment.
He joined the NAHB in 1961 as legislative director engaged in matters affecting
the home building industry and became director of the NHC in 1965 where he was responsible
for liaison with various NAHB offices, international relations and trade missions.
A native of Maine, Shine was graduated from Harvard with a bachelor of arts
degree in 1947 and was graduated cum laude with an LL.B from Notre Dame in 1951. He was
also a Graduate Fellow at Southern Methodist University School of Law.
From 1953-55 he was assistant to a commissioner of the Federal Hoover Commission
and until 1957 specialized as an attorney involved in foreign legal problems with Dresser
Industries. The following year he became Washington representative with Dresser, reporting
on government actions and trends.
He served from April, 1958 to December, 1959 as assistant staff director of the
Commission on Civil Rights responsible for creation and supervision of state advisory
committees. In January, 1959, he joined the U.S. Department of Commerce as executive
director and counsel to the U.S. Science Exhibit at the Seattle World's Fair, where he
served until 1961.
Shine formerly served on the board of governors of the Washington Foreign Law
Society and is a member of the American Bar Association's international and comparative law
section. He is former chairman of the National Committee on Lawyers and Legal Services in
the Defense Establishment and the Real Property Law Section's committee on public regulation
of land use.
He is a member of state and national bar associations, is listed in "Who's Who in
Commerce and Industry" and "Who's Who in American Universities and Colleges" and has lectured
at Brookings Institution's public affairs fellowship program.
Shine graduated from Alexander Hamilton High School in Los Angeles and entered the
State Teachers' Retirement System
State of California
STATE TEACHERS' RETIREMENT SYSTEM
BIOGRAPHICAL SKETCH--MICHAEL N. THOME
Michael N. Thome was appointed Chief Executive Officer of the State Teachers'
Retirement System on March 29, 1968.
For five years prior to his appointment, he was the Executive Director of the
Minnesota State Retirement System, and for eight years prior thereto, was the
Assistant Director of that system.
Prior to entering the retirement field, he was a purchasing agent for the
State of Minnesota; and for four years prior thereto, served as a civilian
military government officer with the Department of Defense in the Orient.
Born in Rice Lake, Wisconsin, on November 28, 1917. He was educated in both
Wisconsin and Minnesota.
He is a veteran of World War II, having entered the Army as a private and was
discharged as a Captain.
Mr. Thome is a member of the Standing Committee on Public Employee Retirement
System Administration of the Municipal Finance Officers Association of the
United States and Canada; a member of the Western Pension Conference, and
has held several offices in other national pension organizations.
February 1969
Department of Veterans Affairs
State of California
DEPARTMENT OF VETERANS AFFAIRS
BIOGRAPHICAL SKETCH--HARLAN J. JOHNSON
Harlan J. "Jack" Johnson, an employee of the California Department of
Veterans Affairs for more than 23 years, became Acting Director of the Department
February 24, 1969.
For eight years prior to his appointment, he served as Manager of the
Department's Division of Farm and Home Purchases in Sacramento.
Joining the Department's staff as a Property Appraiser in Los Angeles
immediately after World War 11, Johnson was promoted to Manager of the Fresno
Cal-Vet office in 1949.
Another promotion to the position of Division Credit Manager brought
him to Sacramento in 1955.
He became Assistant Manager, Division of Farm and Home Purchases, in
1956 and Manager in 1961.
Born in Fremont, Missouri, May 21, 1920, Johnson's family moved to
California in September of the same year. He attended Taft Junior College and
the University of California at Berkeley.
He is a veteran of World War 11, having entered the United States Army
Air Corps as an Aviation Cadet in 1941. He was discharged as a captain in 1945.
Johnson flew 32 combat missions as a B-17 pilot with the 8th Air Force in England.
He is the holder of the Air Medal with three Oak Leaf clusters and the Distinguished
Flying Cross. He retired from the U.S. Air Force Reserve as a lieutenant colonel
in February.
Johnson is a member of the American Legion and the Veterans of Foreign
Wars.
February, 1969