BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1659
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          ASSEMBLY THIRD READING
          AB 1659 (Huber) 
          As Amended  June 2, 2010
          Majority vote 

           BUSINESS & PROFESSIONS       11-0                    
          APPROPRIATIONS      17-0        
           
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          |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            before December 1 prior to the year it is set to be repealed,  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)   Any programs and projects under the direction of the  
                   agency;

        d)   Measures of the success or failures of the agency and  








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               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  
            the Legislature.

          10)Defines "eligible agency" to mean any agency, authority,  
            board, bureau, commission, conservancy, council, department,  








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            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  
          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."








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          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 


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