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[State of the State - Press Kits] - [Business and Transportation Agency]
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[State of the State - Press Kits] - [Business and Transportation 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] -
[Business and Transportation 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/
THE BUSINESS AND TRANSPORTATION AGENCY
Office of the Secretary
1120 N Street
Telephone 445-1331
Gordon C. Luce, Secretary
Marc Sandstrom, Assistant Secretary
Merritt E. Van Sant, Assistant Secretary
Robert E. Nance, Press Contact
Department
Director
Deputy
Press Contact
Aeronautics
Joseph R. Crotti
Keiffer E. Parker
K.E. Parker
Sacramento Muni-
445-2582
445-2582
445-2582
cipal Airport
Alcoholic Beverage
Edward J. Kirby
Bion R. Gregory
Peter T. Sexton
Control
445-3221
445-4265
445-5621
1215 0 Street
Banking
James M. Hall, Supt. James Ahlf, Dep. Sup. Bert C. Mah
120 Montgomery St.
557-3535
557-1440
557-1332
San Francisco
8-597-3535
8-597-1440
8-597-1332
Corporations
Anthony R. Pierno
Vacant
Edward J. Dolan
1020 N Street
445-8200
445-8200
Highway Patrol
Harold W. Sullivan R. A. Kridler
Russell R. McComb
2611 26th Street
Commissioner
Deputy Comm.
445-3908
445-7473
445-5265
Housing and
Charles R.
Vacant
Donald R. Crow
Community
LeMenager
445-8600
Development
445-4775
1100 K Building
Insurance
Richards D. Barger Wesley J. Kinder
Henry Wikstrom
1407 Market Street
Commissioner
Los Angeles
557-0763
San Francisco
557-1716
620-2581
8-597-0763
8-597-1716
8-640-2581
Motor Vehicles
Verne Orr
James W. Chapman, Jr. Erwin Cooper
2570 24th Street
445-5281
445-5281
445-3927
Public Works
James A. Moe
Robert B. Carleson Robert E. Nance
1120 N Street
445-2201
445-7892
445-3523
Real Estate
Burton E. Smith
John E. Hempel
J. E. Hempel
111 Capitol Mall
Commissioner
Chief Asst. Comm.
445-3995
445-3996
445-3995
Savings and Loan
Preston Martin
Eric Stattin
Preston Martin
3440 Wilshire
Commissioner
620-2263
620-2263
Los Angeles
620-2263
8-640-2263
8-640-2263
8-640-2263
Department:
Business and Transportation Agency
Name:
Gordon C. Luce
Married:
Karon Turnbow
Children:
Kelly 12, Randy 9, Andrew 21/2
Residence:
2110 Rockwood Drive, Sacramento
Political Affiliation:
Republican
Education & Degrees:
Stanford, B.A., 1950;
Stanford School of Business, M.B.A., 1952;
Indiana Univ. School of Savings & Loan, 1959
Appointed:
January 3, 1967
Position last held:
Senior Vice President, Home Federal Savings
and Loan Association, San Diego
Govt. job prior to this: None
Boards, Commissions,
1. Member, Electronic Data Processing
etc:
Policy Committee
2. Member, Intergovernmental Council
on Ocean Resources
3. Member, Intergovernmental Council
on Urban Growth
Department:
Business and Transportation Agency
Name:
Marc Sandstrom
Married:
Ann
Children:
Bret 10, Brad 7, Scot 3
Residence:
10 Moonlit Circle, Sacramento
Political Affiliation:
Republican
Education & Degrees:
Stanford, B.A. and LLB, 1956, 1958
Appointed:
November, 1968
Position last held:
*
Govt job prior to this: * Attorney, California Department of Public Work
Boards, Commissions,
etc.:
1. Alternate, Bay Area Transportation Study
Commission
2. Alternate, Intergovernmental Board on
Electronic Data Processing
Department:
Business and Transportation Agency
Name:
Merritt E. Van Sant
Married:
Joan
Children:
Edward 16, John 15, Barry 13, James 4
Residence:
501 Alma Real Drive, Pacific Palisades
Political Affiliation:
Republican
Education & Degrees:
Stanford - B.A. in Political Science, 1952
Appointed:
February 17, 1969
Position last held:
Insurance Executive and Financial Consultant
Govt. job prior to this: None
Boards, Commissions, etc: None
Department:
Public Works
Name:
James A. Moe
Married:
Beverly
Children:
Teresa 11, Cynthia 9, Jeffery 8, John 6
Residence:
4828 Keane Drive, Carmichael
Political Affiliation:
Republican
Education & Degrees:
Univ of Minnesota, B.C.E. 1954
Appointed:
October 10, 1968
Position last held:
*
Project Manager of Field Operations for Pozzo
Construction Co. and Pozzo Constructors, Inc.
Los Angeles
Govt job prior to this: * Chief Deputy Director of Public Works
Boards, Commissions,
etc.:
1. Governor's Council
2. State Public Works Board
3. Administrative Officer, California Highway
Commission, and California Toll Bridge
Authority
Department:
Motor Vehicles
Name:
Verne Orr
Married:
Joan
Children:
Carolyn 21, Robert 19
Residence:
1444 Hillcrest Avenue, Pasadena
Political Affiliation:
Republican
Education & Degrees:
Pomona, B.A., Stanford, M.A., Business
Administration
Appointed:
March 1, 1967
Position last held:
President, Investors and Loan Association
Govt. job prior to this: Foreman, Los Angeles County Grand Jury,
Calendar Year 1962
Boards, Commissions,
etc.:
1. Air Pollution Control Board;
2. Member, Air Resources Board;
3. Intergovernmental Board on Electronic
Data Processing
Department:
California Highway Patrol
Name:
Harold W. Sullivan
Married:
Anita
Children:
Donald 27, Catherine 23
Residence:
17235 Otsego, Encino
Political Affiliation:
Republican
Education & Degrees:
U.S.C., B.S. Public Administration 1949
Appointed:
January 2, 1967
Position last held:
Deputy Chief, Los Angeles Police Department
and Commander, Traffic Bureau
Govt job prior to this: None
Boards, Commissions,
etc.:
1.
Governor's Advisory Committee on the Calif.
Traffic Safety Program
2.
Highway Safety Coordinating Committee
3.
California Highways and Transportation
Research Council
Department:
Aeronautics
Name:
Joseph Robert Crotti
Married:
Beverly June
Children:
Dennis 20, Laura Ann 16
Residence:
19 Cavalcade Circle, Sacramento
Political Affiliation:
Democrat
Education & Degrees:
High School; Specialized courses in business
and public administration
Appointed:
December 15, 1967
Position last held:
Airport Manager and City Manager Pro-tem,
City of Merced
Gov't.job prior to this: None
Boards, Commissions, etc: 1. Vice President, Region VI, and Chairman
of Committee on User Charges and Taxes,
National Association of State Aviation
Officials;
2. American and California Associations
of Airport Executives
Department:
State Transportation Planning Coordinator
Name:
Charles G. "Chuck" Beer
Married:
Patricia
Children:
Jane 20, Don 18, Greg (stepson) 16, Ken 15
Residence:
85 Moonlit Circle, Sacramento
Political Affiliation:
Republican
Education & Degrees:
Univ of California, B.S., 1940;
Univ of California, LA, M.A., 1945
Appointed:
February 2, 1969
Position last held:
*
Govt jobs prior to this: *Urban Planner, Calif. Division of Highways
Engineering, career civil service
Boards, Commissions,
etc. :
None
Department:
State Transportation Safety Coordinator
Name:
John W. Berke
Married:
Tatiana
Children:
Kathryn 21, Ann 20, Wendelyn 16, Randall 13,
Thorens 12
Residence:
2772 Lacy Lane, Sacramento
Political Affiliation:
Republican
Education & Degrees:
Univ of Minnesota, B.A. 1949
Graduate work at Univ of Calif., and
Sacramento State College
Appointed:
June 5, 1968
Position last held:
Chief, Management Planning, Dept. of General
Services
Govt jobs prior to this: Dept. of Finance, Fish & Game, Agriculture
Boards, Commissions,
etc. :
None
Department:
Banks
Name:
James M. Hall
Married:
Margaret
Children:
Catherine 9, Jeffery 7
Residence:
2065 Oakland Avenue, Piedmont
Political Affiliation:
Republican
Education & Degrees:
U.C. at Berkeley, BA in Economics, 1955;
U.C. at Berkeley, L.L.B. 1962
Appointed:
February 9, 1967
Position last held:
Luce, Forward, Hamilton & Scripps, San Diego
Govt job prior to this: None
Boards, Commissions,
etc.:
1. Member District Securities Commission
2. Governor's Council
3. Director of the National Association of
Supervisors of State Banks
Department:
Housing and Community Development
Name:
Charles LeMenager
Married:
Nancy
Children:
Paula 19, John 17, William 11, Thomas 8
Residence:
40 Shoreline Circle, Sacramento
Political Affiliation:
Republican
Education & Degrees:
Certificate, Institute of Industrial Relations,
U.C.L.A., 1951
Appointed:
April 4, 1967
Position last held:
Vice President and General Manager,
Summerbell Structures Division,
Speedspace Corporation, Santa Rosa
Govt job prior to this: Mayor of Santa Rosa
Boards, Commissions,
etc. :
Secretary to the Housing and Community
Development Commission
Department:
Real Estate
Name:
Burton Smith
Married:
Elizabeth (Betty)
Children:
Burton 25, Brad 20
Residence:
9876 Crestbrook, Bellflower
Political Affiliation:
Conservative Democrat
Education & Degrees:
U.S.C., B.A. Business Administration 1941
Appointed:
January 17, 1967
Position last held:
Realtor
Govt job prior to this:
None
Boards, Commissions,
etc.:
1. Chairman, State Real Estate Commission
2. Board of Directors, National Association of
Real Estate Boards
3. Board of Directors, National Association of
Real Estate License Law Officials
Department:
Alcoholic Beverage Control
Name:
Edward J. Kirby
Married:
Ruth
Children:
Patricia 23, Kathleen 19, Mary Susan 12
Residence:
2524 French Street, Santa Ana
Political Affiliation:
Republican
Education & Degrees:
Univ. of Nebraska, B.A. 1941
Appointed:
March 27, 1967
Position last held:
Supervising Special Agent, FBI, Los Angeles
Gov't.job prior to this:
See above
Boards, Commissions,
etc.:
1. Governor's Council
2. Governor's Coordinating Council on
Alcohol Problems
Department:
Corporations
Name:
Anthony R. Pierno
Married:
Beverly
Children:
Kathryn 11, Robert 6, Linda 5, Diane 3
Residence:
1263 Oakcrest Avenue, Brea
Political Affiliation:
Republican
Education & Degrees:
Whittier College, B.A., 1954;
Stanford Univ., L.L.B., 1959
Appointed:
February 11, 1969
Position last held:
*
Partner in law firm, Poindexter and Barger,
Los Angeles
Govt job prior to this: *Chief Deputy Commissioner of Corporations
Boards, Commissions,
etc.:
Corporations Committee, State Bar Association
Department:
Insurance
Name:
Richards D. Barger
Married:
Ann
Children:
Richards Jr. 16, James 13, John 12, Kathryn 8
Residence:
2161 Adair Street, San Marino
Political Affiliation:
Republican
Education & Degrees:
BS Business Admin., Indiana U. 1950; L.L.B.
USC, 1953
Appointed:
October 15, 1968
Position last held:
Senior Partner, Law Firm of Poindexter &
Barger, Los Angeles
Gov't. job prior to this: None
Boards, Commissions,
etc.:
1. Member of Governing Board California
Inspection Rating Bureau
2. National Association of Insurance
Commissioners
Department:
Savings and Loan
Name:
Dr. Preston Martin
Married:
Adrienne
Children:
Jeffery 17, Barbara Gay 15, Pier 7
Residence:
1110 Arden Road, Pasadena
Political Affiliation:
Republican
Education & Degrees:
Univ of Oklahoma, B.S. 1946;
Univ of Southern Calif., M.B.A. 1948;
Indiana Univ., Ph.D., 1952
Appointed:
January 16, 1967
Position last held:
Professor of Finance & Director, Urban
Development, USC
Govt job prior to this: None
Boards, Commissions,
etc.:
1. Vice-President, National Association of
State Savings and Loan Supervisors;
2. Director, Lincoln Savings and Loan, 1959-67
STATE OF CALIFORNIA
RONALD REAGAN, Governor
BUSINESS AND TRANSPORTATION AGENCY
1120 N STREET, P.O. BOX 1139, SACRAMENTO 95805
CALIFORNIA
AERONAUTICS
ALCOHOLIC BEVERAGE CONTROL
BANKING
GORDON C. LUCE
CORPORATIONS
Secretary
CALIFORNIA HIGHWAY PATROL
MARC SANDSTROM
HOUSING AND COMMUNITY DEVELOPMENT
Assistant Secretary
INSURANCE
MOTOR VEHICLES
MERRITT E. VAN SANT
PUBLIC WORKS
Assistant Secretary
REAL ESTATE
SAVINGS AND LOAN
February 27, 1969
TO: Honorable Lt. Governor Reinecke
President of the Senate
Honorable Robert Monagan
Speaker of the Assembly
Gentlemen:
As promised by Governor Ronald Reagan in
his State of the State Message, I am submitting this report
on the Business and Transportation Agency.
The Business and Transportation Agency was
established by the Governor's Reorganization Plan No. 1
of 1968 and includes the following departments: Public
Works, Highway Patrol, Motor Vehicles, Aeronautics,
Banking, Corporations, Real Estate, Savings and Loan,
Insurance, and Housing and Community Development. Pur-
suant to executive order the Department of Alcoholic Beverage
Control was also added to the Agency.
Agency Goals
The primary goal of the Business and Trans-
portation Agency is to stimulate the economy, encourage a
healthier business climate and protect California citizens by
providing maximum public service at the minimum cost.
-2-
The following policy statements are designed
to be implemented within the framework of that primary goal:
Business
1. Encourage development of California economy which is key
element to full employment and better housing.
2. Focus regulatory efforts on areas of potential problems thus
increasing public protection while minimizing harassment.
3. Maintain careful watch to insure stability of financial
institutions thereby protecting investment of California citizens.
4. Carefully evaluate all government programs to eliminate waste,
red tape, inefficiency and unproductive duplication of private
sector's efforts.
Transportation
1. Keep California citizens mobile.
2. Improve safety and efficiency of all transportation systems.
3. Encourage greater community involvement in coordinated
transportation planning.
4. Minimize impact of highways and other transportation systems
on environment.
5. Develop statewide plan for transportation to meet future growth.
Expenditures Down
Expenditures of this Agency will be reduced from
130, 642, 337 in the present fiscal year to $1,099,132,009 in
1969-70. This represents a 2.7% decrease on the average of our
11 departments at a time when the Highway Patrol's Budget
increased 10.73% because of legislative mandate to double the
Patrol in 3 years. Almost 90 percent of this expenditure will go
into the construction of a better and safer transportation system
for Californians.
Despite this budget reduction and no gas tax
increase during the past two years 665 highway projects totalling
$280 million have been advanced for earlier construction. This
compares with a $50 million figure for the preceeding two years.
During 1969-70 it is anticipated that highway construction
commitments will be increased by 46%.
Fewer Employees
In January of this year, total employment in the
11 departments of the Business and Transportation Agency had
increased only 6% over the same month in 1966. Here again the
California Highway Patrol increase of 59% in the number of
employees from 4,522 to 7, 187 brought this average up. Without
-3-
the legislatively dictated increase in Highway Patrol strength
the Agency would show a 2.8% decrease in personnel over the
last two years. Some of the more notable decreases include
Corporations 28%; Real Estate 24%; Insurance 14%; Savings and
Loan 3%; Banking 8% and Public Works 2%.
Governor's Task Force on Efficiency and Economy
Emphasis on implementation of recommendations
of the Governor's Task Force on Efficiency and Economy continues.
To date the departments within this agency have implemented 216
recommendations or 58% of those that apply to the agency with
potential annual savings of more than $9 million and potential one
time savings exceeding $10.5 million. Through combined legisla-
tive and administrative implementation we anticipate a substantial
increase in these savings in the future.
Traffic Increases
Last year, Californians drove almost 54 billion
vehicle miles on state highways only, an increase of 5.6 percent
over 1967. Of that total, more than half, or 33.5 billion vehicle
miles, were driven on the state's freeway system although it
constitutes less than 10 percent of the total state highway system
in California.
Fewer Traffic Deaths
Through the combined achievements of the
California Highway Patrol, Public Works and Motor Vehicles we
are witnessing an unprecedented change for the better in traffic
fatalities.
The fatality rate per 100 million vehicle miles
driven on freeways was reduced to 2.57. Almost 4% below the
1967 rate.
Provisional figures from the California Highway
Patrol indicate that the overall 4.3% reduction in the mileage
death rate will place California in the lowest group of states
nationally.
In absolute numbers the total fatalities on
California's streets and highways for 1968 were 4,853 compared
with 4,883 for 1967.
In the area of non-fatal accidents although vehicle
travel under California Highway Patrol jurisdiction increased more
than 6.5% in 1968, injury accidents increased only 2%.
-4-
Environmental Enhancement
A major goal has been to protect our resources
and enhance community environment as we develop transportation
systems. Examples of recent accomplishments in this area
include:
1. Route 1 at Fort Ross was relocated to accommodate proposed
park development and protect historical artifacts.
2. Route 101 through Richardson Grove State Park in Humboldt
County was revised.
3. Park values along the east side of Eel River were preserved
by a route change.
4. Balboa Park in San Diego will not be disturbed by eventual Route
395 modifications.
5. Many acres of farm land will be preserved by joint use of right
of way for a Water Resources Peripheral Canal and Interstate 5
construction. In addition, this joint use will save over $5
million in state funds.
6. Restudy of Route 199 is underway to avoid or minimize impact
on Jedediah Smith State Park.
7. New design concepts have radically improved public works pro-
jects such as the award winning San Mateo Bridge, new San
Diego-Coronado Bridge and Toll Plaza, and the Junipero Serra
Freeway in San Mateo County.
This effort will continue and grow in cooperation with
the Resources Agency.
Highway Construction Funds
If we are to meet these goals, it is imperative that
the new administration in Washington, D. C. does not manipulate
the Federal Highway Trust Fund monies as did the previous adminis-
tration. In fact, this Agency has asked for a review of California's
equitable share of the Federal Trust Fund. Maintaining a properly
balanced construction program has been extremely difficult because
of untimely "suspensions" of trust fund allocations in the past. In
this respect, the Reagan administration was able to reclaim for
California, over 1/4 billion dollars in Federal highway funds which
had been lost in a disagreement between the previous state adminis-
tration and the City of San Francisco. We accomplished this by
persuading the Department of Transportation to transfer these funds
to the Century Freeway in Los Angeles as part of the Federal Inter-
state System.
The Century Freeway may well become a catalyst for
better freeway planning nationwide.
-5-
The Century Freeway Concept
The "Century Freeway Concept" can be adapted
for use in other urban areas of California as well. Engineers
have approached this freeway project with a design unit of
economists, urban planners and other specialists behind them.
The state is also providing planning money in
order to solve problems the freeway may create, while the freeway
itself is in the design stage. In this way, the freeway can serve
as an opportunity to enhance the affected community.
The success of the Century Freeway Concept
could prove a stimulus to San Francisco officials and offer a
solution to that city's traffic problems.
Beneficial Legislation
Legislation proposed by this Agency last year
will have far reaching effects and provide beneficial results for
residents of economically depressed areas whose homes lie in
the path of freeways.
These relocation assistance laws permit Public
Works to use highway construction funds to replace owner-occupied
housing of lower income families whose homes are situated in the
right of way of a future freeway. This will help to overcomemajor
socio-economic problems which previously have sometimes marked
freeway construction. In those instances where housing is not
replaced in kind the department is permitted to pay added amounts
to assist in resettling persons in comparable housing thus mini-
mizing the economic impact of relocation.
Balanced Transportation
Our agency has actively supported legislation and
encouraged development of all forms of transportation.
A prime example is our support of the Mills-Hayes
Bill (SB 202) last session. Although the measure reduced revenue
to the Highway Fund by over $2 million it offered a chance to
improve work related mass transportation especially in lower
income areas. Early returns are encouraging. For example:
The Southern California Rapid Transit District used its share of
the funds to assist in the establishment of more than 20 new bus
lines.
-6-
In Santa Monica bus service during rush hours was augmented
where required and new lines added in a residential area where
previously no service was supplied.
Among benefits enjoyed by the Long Beach Public Transportation
Company was its ability to retain a 20-cent fare dispite higher
operational costs.
The completion of Bay Area Rapid Transit System
will offer operational joint use of transportation corridors to
better serve the public while minimizing the necessary land use.
Currently we are cooperating with transit districts
in Los Angeles and San Diego on development of pilot projects to
better utilize our Freeway System for mass transit.
To meet future needs this agency enlisted the
services of a Transportation Task Force of 24 experts which
worked diligently to recommend a policy regarding the state's
role in transportation. Their recommendations include establish-
ing an office of Transportation Planning and an Advisory Trans-
portation Board. We recognize that planning a balanced
transportation system for California is essential. The freeway
and expressway system when completed to its 1980 standards
will handle only 60 percent of the state's travel. Other means
of transit must be developed as rapidly as possible. We will
present for your consideration legislation to implement these
proposals as a first step to the state's involvement in other forms
of transportation. Also during this session our Agency will
cooperate in the legislative deliberation over creation of Regional
Transportation Districts as recommended by the Task Force.
Traffic Safety Coordination
Coordination of the overall highway safety effort
is a major concern of the Governor. California's law's permit
delegation of state responsibilities in this field that were created
by the Federal Highway Safety Act to the Secretary for Business
and Transportation. The Secretary fulfills this responsibility
through the Office of the Transportation Safety Coordinator.
Utilizing this office a combined effort is being
made to reduce traffic accidents. Here we will seek coordination
of the safety activities of Public Works, Motor Vehicles, Highway
Patrol, Public Health, Education, and the Administrative Office of
the Courts together with those of cities, counties, and districts.
-7-
Emergency Medical Aid
A most serious deficiency in California's over-
all traffic safety is the lack of adequate emergency medical
service for accident victims. Studies have shown that nation-
wide, some 20,000 lives from every type of accident could be
saved by modernizing all elements of the emergency medical
response. Other studies conclude that 50 to 75% of rural highway
deaths may not have occurred if prompt and experienced
emergency medical services had been available.
For these reasons, two projects designed to
improve emergency aid, are being coordinated with financial
assistance from the National Highway Safety Bureau.
One, conducted by the State Department of
Public Health, will specifically identify the emergency medical
service deficiencies statewide, and provide guidelines for
future legislation or financial assistance.
Another project under direction of the California
Highway Patrol, will use helicopters for freeway traffic sur-
veillance and, at the same time, determine the feasibility of
helicopter-ambulances in rural and urban areas.
Drinking Driver
Meanwhile this office is concentrating on a
solution to the drinking driver problem since this has been
determined to be one of our most serious traffic safety hazards.
Public safety demands stronger laws to control this irresponsible
driver. A presumptive limits bill has been introduced in this
legislative session which would set .10% as the blood-alcohol
concentration level at which a person's driving ability is pre-
sumed to be impaired. The Agency joins with Governor Reagan
as a strong proponent of such legislation.
Departmental Reports
We invite you to review the following reports of
our departments which in capsule form outline their activities.
Each department stands ready to give you further information on
request.
DEPARTMENT OF AERONAUTICS:
One of the nation's most pressing problems today
is the growing crisis of air congestion and lack of adequate
airports or traffic control systems to cope with it effi-
ciently. The Department has taken several important steps
to alleviate these problems here in California.
Since the beginning of the 1967-68 fiscal year,
the Department already has allocated through the state's
Airport Assistance Revolving Fund some $3,085,000 to 65
airports throughout California. The money was used for
acquiring land for new airports or improving existing air-
ports to bring them up to safety standards established by
the Department.
The funds come from a two cents a gallon gas
tax applied to general aviation. Aircraft used in agri-
culture and common carriers are exempt.
Master Plan for Aviation
This year marks the start of the comprehensive
State Master Plan for Aviation. Rapid increase in general
aviation aircraft and the number of passengers at existing
airports made it necessary that such a plan be started
to insure orderly development and allocation of resources
between aviation and other public systems as well as among
the various aviation subsystems themselves.
The plan will provide the California Aeronautics
Board with guidance in allocating the gas tax under the
Revolving Fund and the channeling of any Federal grants to
California airports. It will also help to coordinate
local and regional airport plans with those in the rest
of the state.
The Department is studying the property tax
status of privately owned but publicly used airports with
a hope that tax relief measures can be developed in the
near future to encourage more airports.
Legislation for Channeling Funds
One of the Department's immediate goals is to
support State legislation that will make possible the
channeling of Federal Aid to Airport funds through the
Department. The Department feels that it is in a better
position than the federal government to determine where
such funds could best be allocated to produce the most
good.
Search and Rescue System
The Department is also working on a better Search
and Rescue System in California. Records show a substantial
number of aircraft and persons missing for many years with-
out being located, particularly in the mountainous areas
of the western states. Many fatalities could be avoided if
a method of rapid location of a crash site were developed.
The Department is taking the lead in installing downed
aircraft radio transmitters in its aircraft and is supporting
federal legislation to require all aircraft to be equipped
with down locator beacons.
New Navigational System
Last year, the Governor signed into law a bill
which permits the Department of Aeronautics, along with
the Department of Harbors and Watercraft, to lease a low-
level hyperbolic navigational system for a three-year
evaluation. Aviation in California has great need of a
simple, highly accurate, navigational system which operates
in a non-airline, non-commercial environment. The intent
of the evaluation is to make available to aircraft and
vessels a modern, sophisticated system which will enable
air and water transportation to navigate with precision
under conditions of extremely low visibility.
Western Air Corridor Study
The Department also is coordinating with 13
western states on the Western Air Corridor Study Program
to formulate a project which will evaluate short haul air
systems and solve the problem of their interference with
other modes of travel. Particular attention will be given
to use of vertical lift aircraft (helicopters) and short
takeoff and landing aircraft (STOL).
Aviation Education
Finally, the Department continues to encourage
better aviation education methods in schools at both
college and high school level. Imaginative programs can
spark student interest into pursuing a career in the
aerospace field. In this regard, the Department will
work closely with the newly appointed Task Force on
Aerospace-Aviation recently created by the Governor.
DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL:
Reorganization and streamlining of the Department
has reduced the total number of authorized personnel from
460 in January 1967, to 445 today, a reduction of nearly 3½
This has been accomplished in spite of the fact
that the total workload of the Department has increased.
Branch offices in which the workload did not justify
the number of people assigned to it have been reduced in
strength and the personnel reassigned to other offices having
a greater workload. The field service has been reorgainzed
into two divisions with approximately equal workloads so that
employees may be used more effectively.
Financially Self Supporting
As a result of streamlining and other economies, revenue
to the State General Fund has been increased from $4,154,000
to $6,250,000 a year and the Department, for the first time
in its history, generates greater revenue for the General Fund
than its annual budget.
Orderly Marketing Conditions
The State has long had statutory provisions to regulate
orderly marketing and eliminate price wars, unfair practices
and other practices which would tend to increase consumption
of alcoholic beverages in opposition to a stated Constitutional
purpose of promoting temperance. Through enforcement, the
Department has achieved an orderly marketing condition on an
industry-wide basis throughout the state. California is now
looked upon by the industry as the leader in this field
throughout the nation.
DEPARTMENT OF BANKING:
The State Banking Department is principally
concerned with the protection of the public from wide-
spread economic losses associated with the failure of
banks and trust companies. Preservation of the dual
system of state and national banking to assure the
public of convenient, competitive and reasonably priced
banking and trust services is also of vital concern to
the Department.
Quality of Supervision Upgraded
Through better use of manpower, modernization
of examining procedures and examiner training programs,
the quality of bank supervision is being upgraded and
operating costs reduced. Specifically, an annual savings
of $15,120 per year has been accomplished by changes in
office space requirements. Departmental personnel has
been reduced from 87 to 78. About one-half of the decrease
is represented by improved operating procedures with the
balance resulting from a decrease in workload.
Financial Code Modernized
A legislative program to update and modernize
portions of the California Financial Code has been submitted
and a committee has been appointed to review and recommend
further changes in the statutes to assure California state
banks an opportunity to compete on an equal basis with
national banking associations.
Assistance for Small Businesses
The Department has also played a leading role in
getting the State Small Business Assistance Program and the
Job Development Corporation Law under way. Through these
programs it is expected that substantial progress will be
made toward the elimination of unemployment and other problems
in the low-income urban areas of the state.
In addition, standards and regulations regarding
the issuance of bank securities are being developed. Codi-
fication and publication of departmental rulings and inter-
pretations in regulation form is under way. An increase
in the scope and effectiveness of examinations of trust
activities and trust companies is being implemented.
DEPARTMENT OF CORPORATIONS:
A committee of experts appointed by the Com-
missioner drafted and the Department sponsored legis-
lation which has now become the Corporate Securities
Law of 1968. This extremely important legislation
became effective on January 2, 1969. It completely
revised the previous law and provides a new framework
more adequately designed to meet the regulatory pro-
blems in today's securities market.
The Department also sponsored revision of
several of the Lender-Fiduciary laws. These replace
the former required regulatory examinations by the
Department with a more realistic and flexible program.
The amended statutes provide for regulatory examina-
tions to be made at the discretion of the Department
and permit the acceptance in certain circumstances of
certified audit reports instead of regulatory examin-
ations.
Personnel Reduced 28 Percent
Great savings have been realized in the opera-
tion of the Department. At the time Governor Reagan
assumed the leadership of the State, the Department had
a staff of 416 employees (with a total authorized staff
of 430). It has an actual staff of 294, or a reduction
in personnel of over 28%. During this period, the work-
load has increased more than 25%.
Department Reorganized
A reorganization of the Department along
functional rather than geographic lines has been ac-
complished. The Department had previously been organ-
ized with autonomous offices in Los Angeles, San Fran-
cisco and Sacramento, lacking in uniformity and dupli-
cative in procedures, efforts and actions. Great ef-
ficiencies and economies have resulted by reason of the
reorganization.
Many administrative changes have been in-
troduced into the Department as a result of system
analyses and cost studies. Outdated methods have been
replaced with modern procedures; duplications and un-
necessary practices have been eliminated; and up-to-
date systems have been introduced throughout the
organization.
CALIFORNIA HIGHWAY PATROL:
During the first 12 months of statewide operation
of the Passenger Vehicle Inspection Program, Patrol teams
have inspected more than 1,600,000 vehicles (17% of the
state total). Defects noted on vehicles have decreased
from 67% to 57% since the program started. This steady
decline of vehicles in violation of the Vehicle Code equip-
ment requirements indicates the effectiveness of the in-
spection program. There was no increase in manpower
expended on the program.
Off highway commercial vehicle inspection by
Motor Carrier Inspectors covered 14,650 terminal inspections
involving 50,500 vehicles; 2,500 defective commerical
vehicles were placed out of service and 92,000 violations
requiring correction were noted.
Task Force Recommendations Implemented
Of the 85 recommendations concerning Patrol
operation made by the Governor's Task Force, 51 have been
affected and several others are being implemented.
This has resulted in cash savings of $550,000 and savings
of $292,000 through increased efficiency of operation.
Employees' Merit Award Board suggestions resulted in another
$26,000 savings, bringing the total to $868,000.
Patrol to Police All Freeways
Plans were developed, personnel recruited and
trained, and facilities and equipment acquired to take
over policing by the Patrol of portions of the freeway
systems in Los Angeles and San Diego. The first portion
was taken over in the fall of 1968. All freeways will
be under the California Highway Patrol by the end of
1969, resulting in responsibility for the patrol of 195
additional miles of full freeway.
Aid in Controlling Civil Disturbances
During 1968, personnel of the Patrol expended
5,264 man days in assisting local law enforcement agencies
during 34 separate situations involving civil disturbances
which were beyond control of the local authorities and
which jeopardized the free and safe movement of people.
Use of Helicopters
The Patrol is initiating a program to test the
use of jet turbine helicopters to detect the need for
services of disabled motorists and to expedite the flow
of traffic by rapid detection and removal of impediments.
A vendor has been selected to provide three jet turbine
helicopters, and contract for their acquisition is in
final stages of preparation. Personnel have been recruited
within the department for their operation. One aircraft
will provide freeway supervision in the metropolitan
Los Angeles area, one will be assigned to Indio, and one to
the San Francisco Bay area. The program should be fully
operational by early summer.
Integrated Traffic Records
In order to develop an improved statewide in-
tegrated traffic records system meeting needs of Cali-
fornia and Federal Highway Safety Program standards, a
program has been developed to contract with outside re-
search groups to conduct such a study. There were 92
requests for proposals distributed, and 22 proposals
have been sutmitted. These are under study at the
present time.
Smog Research
In order to determine the effectiveness of the
steam engine as a substitute for the smog-producing in-
ternal combustion engine, four proposals have been received
from manufacturers and are now under study by the Patrol.
Findings thus far indicate a strong possibility that a
substitute for the internal combustion engine is on the
horizon. It is anticipated that manufacturers can pro-
vide prototype vehicles for testing by departmental per-
sonnel by fall of 1969.
Sound Level Enforcement
Three pilot programs to develop a procedure for
sound level enforcement through the use of scientific
testing equipment have been completed and a sound measure-
ment procedures manual has been developed. The Patrol is
in the process of acquiring several sets of specially
designed sound testing equipment which will be used by
six trained teams operating statewide in early 1969. A
number of new motorcycles, sports type passenger cars
and heavy trucks were found to exceed permissable noise
limits. Manufacturers were required to redesign exhaust
systems to quiet the vehicles and, in flagrant cases, to
replace exhaust systems of vehicles already in service.
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT:
Despite the vast array of existing federal
programs, the poor quality of our urban neighborhoods
and the chronic condition of social unrest persists.
This fact was instrumental in the creation of the Model
Cities Program which has as its objective the coordination
of all public and private resources for the benefit of
selected neighborhoods. Because of the departure that
this program represents from traditional public programs,
the Department, under the Governor's direction, assumed
a significant rolein coordinating the efforts of state
government in connection with Model Cities. The Depart-
ment provides the necessary staff for a Statewide Model
Cities Coordinating Committee. This committee consists
of all appropriate state agencies. To date there are
11 California cities participating in the Model Cities
Program. This figure represents the highest in the nation.
City, County Plans Must Include Housing
Legislation was enacted in 1967 which requires cities
and counties, charter cities exempted, to include a housing
element in their general plans. This requirement is scheduled
to take effect July 1, 1969, and has caused considerable con-
fusion as to what will be necessary for local units of
government to comply with this legislation. The Department
provided the leadership in sponsoring a series of symposiums
in five areas of the state to acquaint some 750 local
officials with this requirement and to provide more defini-
tive information in terms of compliance. During the past
three months, the Department has received in excess of 25
inquiries regarding this matter and is meeting daily with
local officials to help them with their queries and problems.
Governor's Conference on Housing
The Department played an important role in
organizing and conducting the statewide Governor's
Conference on Planning for Housing and Home Ownership.
The conference was attended by nearly 800 people from
all segments of private industry and local government.
The Conference provided a forum for exchange of ideas and
dissemination of information about new techniques and con-
cepts. Some 63 cities and counties have since established
housing task forces for reviewing local housing problems.
Technical Assistance
During 1968 the Department also provided
technical assistance for development of low-income
housing to over 20 governmental agencies and quasi-public
agencies. The range of services varied from detailed and
statistical surveys of housing needs to more general
considerations.
The Department has also helped in acquainting
local units of government with new concepts of building
design and land utilization which might be used to improve
the supply of housing and reduce housing costs to the
consumer.
Housing for Low-Income Families
To assist in meeting the goal of providing
housing for low-income families, the Department has firmly
committed itself to the Section 23 Leased Housing Program
and has provided assistance to 34 jurisdictions in con-
nection with this program. This assistance has amounted
to more than 15,000 units during the past two years, the
bulk of which were approved during 1968. The Department
is gratified that these accommodations have been made in
a manner which involves the use of private accommodations.
Thereby they remain on the tax rolls and represent private
involvement in housing for low-income families.
Prototype Housing for Farm Workers Completed
Twenty-eight prototype housing units for agricul-
tural farm workers units have been completed under a
$243,000 federal grant. The Department has studied a
variety of building techniques, materials, and methods,
and is acquiring a wealth of information about building
technology which can be made available to private industry.
Hopefully, this study will translate into more adequate
housing for agricultural farm workers.
Savings from Efficient Use of Personnel
The workload of the Department personnel was
analyzed. That resulted in the shifting of offices and
employees to provide a more efficient and streamlined
operation. The South Central Area and its area office
in Bakersfield was eliminated. The Coastal Area office
in Santa Rosa was moved to San Jose. This accomplished
more efficient use of personnel, lowered the operating
expenses and also provided better service to the public
in the areas of heavy workload. Savings will amount to
about $45,000 a year.
DEPARTMENT OF INSURANCE:
Licensing Function Being Revised
The Department has 306 authorized positions, but
is carrying on its functions with 287 employees. The Depart-
ment feels that it can maintain the present level of service
to the public with the same or perhaps even less number of
employees than it now has. In order to accomplish a program
of renewed emphasis on economy there will be streamlining
of the Licensing Division of the San Francisco office to
reduce personnel while still maintaining the current work-
load in administering examinations and issuing licenses.
Traditionally, the Department has kept a mass of
historical data whose usefulness has become outweighed by
the cost of maintaining it. The Department is planning a
revision in the licensing function which should be susceptible
to automation through the use of punch cards and computers.
Discarding of the present outmoded system will require leg-
islation.
Present plans also include coordination between
the large business accounting firms and the Department's
Division of Examination to interchange information and
reduce duplication of effort by both the industry and the
Department.
Credit Life Regulations
The Commission feels Credit Life Regulation in
California is cumbersome, not only in its administration by
the Department, but to the insurance industry as well. The
intent of the regulations could be well served by a revision
of the procedures formerly adopted by the Department and
should result in less work to carrying out the current level
of regulation.
DEPARTMENT OF MOTOR VEHICLES:
Initial budget reduction under the new administra-
tion occurred when the proposed 1967-68 fiscal year budget
of the out-going administration was reduced by $4,545,307.
Despite this budget cut, the Department was able to accrue
additional savings of $2,996,833 at the conclusion of the
1967-68 fiscal year. These savings came from the personnel
hiring freeze, work simplification, and careful review and
control of operating and equipment expenses.
Budget Cut Realized
The proposed 1968-69 budget reflected a budget
cut of just over $900,000. This figure was derived by
taking the 1967-68 personal services budget and adding to
that the estimated workload increase and then subtracting
from that total a flat 2%. Each division is meeting this
2% cut through work simplification or elimination of un-
necessary procedures.
The revised 1968-69 budget reflects reductions of
$167,470 due to various task force recommendations. Addi-
tionally, a budget reduction of $328,168 resulted from net
workload adjustment due to various internal office procedure
changes in the Vehicle License and Title Section of the
Division of Registration.
Mailing Procedure Change
Established a procedure for mailing interim
licenses to applicants for duplicate and original drivers'
licenses. This has resulted in preventing licenses from
falling into the hands of those individuals who apply under
a fictitious name or address with the intention of using
the license for fraudulent purposes such as cashing bogus
checks.
Revised criteria for purging driver record and
related files to insure that documents are not retained when
they are no longer essential. This has resulted in economies
in work processes and in the task of converting to an auto-
mation system.
Identification Cards
Developed a system for issuance of Identification
Cards to implement 1968 legislation.
Devised and implemented special examinations for
testing applicants for licenses to operate 2 wheel motor-
cycles to insure that only qualified persons are licensed
for this purpose.
Driver Improvement Courses
Conducted an intensive training course for Driver
Improvement Analysts to improve their understanding of the
law and legal procedures and their skill in conducting hear-
ings - particularly implied consent and other formal hearings.
This has resulted in a substantial reduction of adverse court
decisions.
Driver Record Automation
Changed procedures in the Driver Improvement Program
so that orders of probation and suspension are issued at the
conclusion of a hearing. This assures service of the order
and makes it possible to explain personally to the subject
the significance of the action.
Eliminated the duplication of proofreading work
orders prepared by Driver Improvement Analysts by developing
more precise criteria and clearly defining areas of responsi-
bility.
Converted 43% of the driver record file to the
automation system. This represents approximately 5,590,000
records accessible for automation processing and remote
inquiry.
Established a process for referring negligent
drivers to traffic schools at the conclusion of a hearing.
This has been done in selected cases where it was felt that
the school could assist these people to learn safer driving
habits.
Transferred processing personnel and the function
of reinstating subjects involved in an accident from the
central reinstatement unit to the Financial Responsibility
Section thereby reducing the time for mailing a reinstatement
order by one or two days.
New Scheduling Speeds Case Flow
Devised and implemented new hearing schedules
which has enabled the Driver Improvement Analysts to handle
25% more cases.
Eliminated Los Angeles registration file by estab-
lishing video communication between Los Angeles area law
enforcement and Sacramento computer through terminals in
our Los Angeles office. Established parallel telephone
communication as supplement to video.
Auto Advertising Practices
Advertising practices of a few members of the auto-
mobile retailing industry have been allowed to go unchecked
and abuses in this field have been spreading. This has been
a cause of dismay to the majority of those in the industry.
The Department has stepped in to enforce the statutes
which prohibit misleading advertising and dealer groups have
been encouraged by the Department to do an increasing amount
of policing of advertising methods among themselves. They
have been assured of the strong support and cooperation of
the Department if they find instances where they are unable
to effect desired improvements through volunteer methods.
Driver's License Fee Increase Proposed
In order to cover the increased costs to the Depart-
ment for processing drivers' licenses, legislation is being
proposed to increase the license fee from $3 to $5 and dup-
licate fees from $1 to $3. The $3 fee has been in effect
since 1953. During the ensuing 16 years increase in volume
and more comprehensive and effective testing procedures
have raised costs to the point where an increase in license
fees is long overdue. Also proposed is an amendment to the
Vehicle Code which will eliminate the need for courts to
report to the Department of Motor Vehicles convictions which
are not used in the Negligent Operator Program or for vio-
lations relating to equipment, weights, size and load.
Projects to Promote Economy, Efficiency
Pursuing the stated policy of this administration
of service to the public coupled with internal economy and
stepped up efficiency, the Department has:
Reduced the time required to process and mail
licenses at Sacramento Headquarters to 10 working days by
streamlining procedures. This shortened the process time
an average of 22 days.
Stimulated work improvement by rotating the 12 Unit
Supervisors in the Vehicle License and Section. Resulting
innovations achieved economies estimated at more than $1,000
a month.
Produced an attractive, easy-to-read Handbook for
Drivers and prepared a Spanish version of same.
Senior Citizens Retraining
Studies were made of the problems of senior citizens
drivers which included a possible retraining program and
improved liaison by having Department personnel talk before
senior citizen groups.
Initiated use of female employees in giving driver
tests.
DEPARTMENT OF PUBLIC WORKS:
The Department has the basic responsibility
for planning, providing, maintaining and operating the
State Highway and Toll Bridge System in accordance with
policies established by the Governor, the Legislature,
the Toll Bridge Authority and the California Highway
Commission. The Department has three primary objectives
for improving the way this responsibility is carried out.
They are recognition of public needs, reduction of per-
sonnel and overhead costs, and provision of better traffic
service. Progress toward accomplishment of these objec-
tives is examined below:
Better Recognition of Public Needs
The Department is striving to become more
responsive to public needs and wants in its planning and
development of a Statewide highway system. Community values
and planning, resource conservation, socio-economic,
cultural and aesthetic factors and coordination with other
transportation modes will receive increased emphasis in key
highway recommendations and decisions.
The Department was reorganized recently to
better seek and heed advice from local governments and
community groups on highway design and location. Expert
consultation from other State departments with respon-
sibilities for socio-economic and environmental factors
such as resource conservation are being asked for and
given full consideration, on all route selection recom-
mendations to the California Highway Commission. Re-
commendations from private consulting firms are being
used, when appropriate, on the more difficult cases.
In addition, the new organization allows the Department
to respond more rapidly to direction from the people
through the Governor. The goal of this new emphasis
is to assure that the public's wishes, as expressed through
their elected officials, are being carried out.
Citizens Advisory Committee Appointed
A temporary 11 member Citizens Advisory Committee
was appointed in December by the California Highway Commis-
sion and the Director of Public Works, James A. Moe, to
advise the Commission and the Director on developing new
route locations and general freeway design procedures.
Mr. Robert Carleson, former City Manager of Pico Rivera,
was recently appointed Chief Deputy Director of the Depart-
ment with a primary responsibility for coordination with
local governments. He will be assisted by Robert Datel,
former District Engineer, District 10, Stockton, and District
5, San Luis Obispo, who has a reputation for sympathetic
response to community values and desires in freeway planning.
Reduction of Personnel and Overhead Cost
The Department's second objective is to reduce
its administrative costs. Despite an increasing highway
program, it has been able to hold the line on the number
of people it employs. Present employment is actually 143
people less than in January 1967, despite the heaviest snow
removal requirements in 50 years, and preparation of plans
and specifications for an anticipated 46% increase in 1969
highway construction. By minimizing overhead costs, more
highway funds are available to construct needed highways
without a tax increase. The Department is paying particu-
lar attention to consolidating and thereby reducing the
number of high level management positions. It is also
assuring that technicians do all work not requiring the
more highly paid professionals. Both reductions are to be
accomplished by normal attrition. A thorough review on
the use of technicians is now underway, with the assistance
of the State Personnel Board.
New Division of Administrative Services
Many departmental functions were consolidated
and streamlined into a Division of Administrative Services
by the transfer of existing personnel and staff centrali-
zation. A significant reduction in positions will result
as attrition occurs.
Top private consulting firms have been employed
to assist the Department in several areas. One is manage-
ment of the highway fund where $1.6 million in additional
interest will be earned annually. Twenty million dollars has been
released for highway construction through other fiscal
recommendations.
Another is the shortening of the time required
to get a new highway facility ready for construction.
where several years will be lopped from the current 6-10
year time requirement at considerable cost savings. A
third is the development of a new management planning,
programming, budgeting and control system giving manage-
ment the most modern business methods. A fourth is Work
Measurement where pilot studies are underway in the design,
maintenance and clerical areas.
Equipment Department Savings
Seventy positions have been eliminated in the
Highway Equipment Department through improved admini-
strative procedures, with an annual savings of $560,000.
The number of automobiles owned by the Department has
been reduced by 320, which represents a cost of about
$600,000, and additional substantial reductions are
planned by July 1. This will reduce significantly both
equipment and handling costs.
One-way tolls on the Carquinez and Benicia
bridges will save $227,000 annually in salaries and also
will result in a one time savings of $100,000 by trans-
ferring the surplus toll equipment to the new San Diego
bridge.
Plans, specifications and estimates for highway
jobs will be prepared by a new method, saving about
$500,000 annually.
Improved Highway System Through Creative Methods
The third objective of the Department is to
provide better traffic service from highway facilities,
with an overall reduction in cost.
One method to reduce cost is through multiple
use of right of way. An example is the lease of air
space over Interstate 80 in Sacramento for a restaurant
complex which will return rent money and a share of the
profits to the highway fund, and also allow local govern-
ments to receive tax revenue from the restaurant facility.
Projects have been started to develop new
traffic surveillance systems to increase the traffic
carrying capacity and safety of the highways.
Teams of departmental engineers have been
trained by a private consultant in the use of Value
Engineering, and this modern technique will be applied
to selected projects in order to assure a full return
for each dollar.
In the past two years the Department has ex-
pended $21 million on highway safety. This has reduced
accidents by 10,000 and brought about a steady decrease
in accident and fatality rates.
DEPARTMENT OF REAL ESTATE:
A continuing review of office space begun some
2½ years ago by the Department has resulted in the release
of more than 19,000 square feet at an annual savings of
more than $82,000 a year.
The number of Department personnel has been reduced
from a high of 276 when the administration took office to
223 presently employed.
Licensing to be Computerized
Contracts have been negotiated for programming of
a large portion of the Department's license issuing load
to electronic data processing. Once installed and in opera-
tion this will make it possible to streamline administra-
tive procedures, provide better services to the public
and reduce Department operating costs.
Cooperation with Private Sector Stressed
Following the administration policy of imposing
restrictions only to the extent that a citizen of integrity
and prudence engaged in any business or endeavor would im-
pose upon himself, the Department has solicited the involve-
ment of the private sector of the real estate field for
such help as it might be willing and able to provide.
Advisory Committees Formed
Among the efforts undertaken in this direction have
been the formation of Mortgage Loan, Subdivision and Real
Estate Education Advisory Committees. They meet regularly,
have made a number of worthwhile suggestions, and are helping
in the implementation of the responsibilities of this juris-
diction. In addition, the project by UCLA in Housing the
Underhoused was presented to the private sector, and the Life
Insurance Association of America has added a $150,000 grant
toward this significant project. The project was outlined
after the expenditure of only $4,000 original seed money
from the Education, Research and Recovery Fund administered
by the Real Estate Commissioner.
Real Estate Broker Requirements Strengthened
The introduction of departmental legislation by
the Department resulted in the signing into law by the
Governor of S.B. 253 (1968) providing mandatory college
level educational course requirements for real estate
brokers in 1970, with a further strengthening of the
requirements in 1972.
The development of a master geographic letter and
its promotion for use by cities and counties in order to
simplify the documentation requirements upon subdividers
was also completed. This will lessen the cost to subdividers
and speed the issuance of the Public Report in connection
with subdivided lands.
Revised Procedures
Legislation was adopted in 1968 which relieves
the necessity upon state government to reissue licenses when
there is a change in status. The licensee notes the change
on his license and advises the Department. No further action
is necessary, and this has resulted in a portion of the
reduction in personnel referred to above.
After extensive surveys to determine the ability
to examine in greater depth in a given period of time through
objective (multiple choice) examinations, rather than the
essay type examinations used previously, both salesman and
broker examinations have been changed over to the objective
format at a substantial saving in grading time, proctoring
time and office materials. Again, this has resulted in a
portion of the reduction in personnel referred to above.
Functional Inventory
A continuing functional inventory is underway,
which should bring forth opportunities for further econo-
mies. Among these functions is the question of the desir-
ability and the economic feasibility of continuing to
maintain several of the smaller field offices of the Depart-
ment.
DEPARTMENT OF SAVINGS AND LOAN:
It is the continuing policy of this Department
to further innovations in the industry. The Housing and
Urban Development Act of 1968 provides a number of in-
novative approaches to the problems of the cities
and the industry is being urged to use this vehicle to
solve California's funds flow problems.
Management changes, infusion of capital and
merger, where indicated, were encouraged in firms under-
going difficulties. Successful mergers have aided in
restoring public confidence in the industry. Supervisory
procedures were also change to foster growth and diversi-
fication in sound firms. In 1967 permission to open four
more branch offices were granted to California savings and
loan associations; in 1968 12 were granted.
Housing Loans Eased
In order to meet public need, the Department
drafted and followed through on legislation to foster
lending on low and moderate income housing. This legis-
lation passed in 1968 enables tax credit and special bad
debt deduction on conventional loans on moderate and low
income family owner-occupied housing. It also provides
for the associations to set up special service corporations
for acquiring, holding, and lending on housing for moderate
and low income families. Legislation for mobile home loans
and participation sales were supported and passed by the
last session of the Legislature. Regulational changes
were instituted to expand and improve housing stock in
California. Training of staff and manuals for their use
have developed new procedures which will bring about
long-run changes in regulatory framework.
Economies Practiced
These changes have been accomplished without
increase in the Department's budget and with a reduction
in staff from 195 to 173. The examination procedures
have been simplified, appraisal practices altered to be
more meaningful and the reporting burden has also been
reduced. It was through such economies the Department
was allowed to reduce assessment to all State savings
and loan associations.