BILL ANALYSIS AB 1659 Page 1 REPLACE - 06/02/2010 Technical change (Member name) ASSEMBLY THIRD READING AB 1659 (Huber) As Amended April 28, 2010 Majority vote BUSINESS & PROFESSIONS 11-0 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Hayashi, Emmerson, |Ayes:|Fuentes, Conway, Ammiano, | | |Conway, Eng, Hernandez, | | | | |Hill, Ma, Nava, Niello, | |Bradford, Charles | | |Ruskin, Smyth | |Calderon, Coto, | | | | |Davis, Monning, Ruskin, | | | | |Harkey, | | | | |Miller, Nielsen, Norby, | | | | |Skinner, | | | | |Solorio, Torlakson, | | | | |Torrico | |-----+--------------------------+-----+--------------------------| | | | | | ----------------------------------------------------------------- SUMMARY : Recasts provisions of existing law governing the periodic review (known as "Sunset Review") of boards, bureaus and commissions under the Department of Consumer Affairs (DCA). Specifically, this bill : 1)Establishes a new Joint Sunset Review Committee (JSRC), as specified. 2)Requires each eligible agency scheduled for repeal, on or before December 1 prior to the year it is set to be repealed, to submit to JSRC a complete agency report covering the entire period since it was last reviewed, to include, but not be limited to: a) The purpose and necessity of the agency; b) A description of the agency budget, priorities, and job descriptions of employees of the agency; c) All programs and projects under the direction of the AB 1659 Page 2 agency; d) Measures of the success or failures of the agency and justifications for the metrics used to evaluate successes and failures; and, e) Any recommendations of the agency for changes or reorganization in order to better fulfill its purpose. 3)Requires JSRC to take public testimony and evaluate the eligible agency prior to the date the agency is scheduled to be repealed. 4)Requires the elimination of any eligible agency unless the Legislature enacts a law to extend, consolidate, or reorganize the eligible agency. 5)Prohibits an eligible agency from extending in perpetuity unless specifically exempted from the provisions of this bill. 6)Allows JSRC to recommend that the Legislature extend the statutory sunset date for no more than one year to allow JSRC more time to evaluate the eligible agency. 7)Specifies that JSRC shall be comprised of 10 members of the Legislature as follows: a) Five Senators appointed by the President pro Tempore of the Senate, not more than three of whom shall be members of the same political party; and, b) Five Assembly Members appointed by the Speaker of the Assembly, not more than three of whom shall be members of the same political party. 8)Requires JSRC to meet no later than 30 days after the first day of the regular session to choose a chairperson and to establish the schedule for eligible agency review provided for in the statutes governing the eligible agencies, for which a date for repeal has been established by statute on or after January 1, 2011. 9)States that this bill should not be construed to change the existing jurisdiction of the budget or policy committees of AB 1659 Page 3 the Legislature. 10)Defines "eligible agency" to mean any agency, authority, board, bureau, commission, conservancy, council, department, division, or office of state government, however denominated, excluding an agency that is constitutionally created or an agency related to postsecondary education. 11)States legislative intent. EXISTING LAW : 1)Establishes the Joint Committee on Boards, Commissions and Consumer Protection (Joint Committee) to hold public hearings at specified times and to evaluate whether a board or regulatory program has demonstrated a need for its continued existence. 2)States legislative intent that all existing and proposed state boards are subject to review every four years to evaluate and determine whether each has demonstrated a public need for its continued existence, as specified. FISCAL EFFECT : According to the Appropriations Committee, annual costs in the range of $250,000 (General Fund) for the Legislature due to the workload associated with reviewing the boards and bureaus within the Department of Consumer Affairs. COMMENTS : According to the author's office, "Legislators create new boards, commissions, agencies and departments to solve a problem and then does not maintain oversight of the newly created bureaucracy to ensure it actually solved the problem it was created to solve or determine whether the problem is worse. This systemic problem can be fixed by conducting comprehensive, regular reviews of state government to ensure taxpayer dollars are being used wisely. "As introduced, this bill would require that an agency be automatically eliminated unless the Legislature votes to extend consolidate, or reorganize the agency based on the recommendation of the Joint Sunset Review committee. Prior to the committee's recommendation, each agency scheduled for sunset would be required to submit a report to the committee. Then the committee would take public testimony and evaluate the agency AB 1659 Page 4 prior to the date the agency is scheduled to be sunset. "AB 1659 provides a bipartisan, common sense approach for the Legislature to maintain oversight and review of the state's bureaucracy and its performance." This bill is consistent with provisions of existing law governing the sunset review process for boards and bureaus under DCA. Because the bill does not establish new sunset dates for any state agencies, this bill is limited to the boards and bureaus under DCA already scheduled for sunset review pursuant to existing law. In 1994, the Legislature established the Joint Committee and a process for routinely reviewing the performance of the semiautonomous boards. The Joint Committee begins its review process by sending a board a questionnaire and a request for information covering every aspect of the board's operation for a specified period. Although Joint Committee staff and the board meet to discuss the information and to seek input from consumer groups, all the information supplied to the Joint Committee comes from the board itself. The basic issue for the Joint Committee to consider during its deliberations is whether the board should continue to regulate the profession in question or be terminated. The Joint Committee gives the board an opportunity to respond to its recommendations before presenting them to the Legislature. As a result of its review, the Joint Committee might recommend that the Legislature terminate, or "sunset," a board. The 1994 law provides only for the elimination of a board, not for the actual deregulation of the profession. Upon a board's sunset, the board then becomes a bureau under DCA. The Joint Committee has not been staffed, nor has conducted any hearings in the past few years. AB 2130 (Huber), the companion measure to this bill, repeals the Joint Committee and instead makes specified DCA boards subject to review by JSRC under this bill. AB 2130 is double-jointed to this bill. Analysis Prepared by : Rebecca May / B. & P. / (916) 319-3301 FN: 0004628 AB 1659 Page 5