California Legislature—2013–14 Regular Session

Assembly Bill No. 291

Introduced by Assembly Member Nestande

February 11, 2013

An act to amend and repeal Sections 9147.7, 9148.50, 9148.51, and 9148.52 of, to amend, repeal, and add Section 9148.8 of, and to add Article 7.6 (commencing with Section 9147.9) to Chapter 1.5 of Part 1 of Division 2 of Title 2 of, the Government Code, relating to state government.

LEGISLATIVE COUNSEL’S DIGEST

AB 291, as introduced, Nestande. California Sunset Review Commission.

Existing law establishes the Joint Sunset Review Committee, a legislative committee comprised of 10 Members of the Legislature, to identify and eliminate waste, duplication, and inefficiency in government agencies and to conduct a comprehensive analysis of every “eligible agency” for which a date for repeal has been established, to determine if the agency is still necessary and cost effective. Existing law requires each eligible agency scheduled for repeal to submit a report to the committee containing specified information. Existing law requires the committee to take public testimony and evaluate the eligible agency prior to the date the agency is scheduled to be repealed, and requires that an eligible agency be eliminated unless the Legislature enacts a law to extend, consolidate, or reorganize the agency. Existing law also requires the committee to review eligible agencies and evaluate and determine whether each has demonstrated a public need for its continued existence and to submit a report to the Legislature detailing whether an agency should be terminated, continued, or whether its functions should be modified.

This bill would abolish the Joint Sunset Review Committee on January 1 or an unspecified year. The bill would, commencing on that same January 1, establish the California Sunset Review Commission within the executive branch to assess the continuing need for any agency, as defined, to exist. The commission would consist of 10 members, with 8 members appointed by the Governor and 2 Members of the Legislature each appointed by the Senate Committee on Rules and the Speaker of the Assembly, subject to specified terms. The commission would be under the direction of a director appointed by the commission members. The bill would require the commission to meet regularly and to work with each agency subject to review to evaluate the need for the agency to exist, identify required statutory, regulatory, or management changes, and develop legislative proposals to enact those changes. The bill would require the commission to prepare a report, containing legislative recommendations based on its agency review, to be submitted to the Legislature and would also require the commission to meet certain cost-savings standards within 5 years.

This bill would require an agency to submit a specified self-evaluation report to the commission prior to its review. The bill would require the Legislative Analyst’s Office to provide the commission with an estimate of the staffing needed to perform the commission’s work.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 9147.7 of the Government Code is
amended to read:

9147.7.  

(a) For the purpose of this section, “eligible agency”
means 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, for which a date for repeal has been established by
statute on or after January 1, 2011.

(b) The Joint Sunset Review Committee is hereby created to
identify and eliminate waste, duplication, and inefficiency in
government agencies. The purpose of the committee is to conduct
a comprehensive analysis over 15 years, and on a periodic basis
thereafter, of every eligible agency to determine if the agency is
still necessary and cost effective.

(c) Each eligible agency scheduled for repeal shall submit to
the committee, on or before December 1 prior to the year it is set
to be repealed, a complete agency report covering the entire period
since last reviewed, including, but not limited to, the following:

(1) The purpose and necessity of the agency.

(2) A description of the agency budget, priorities, and job
descriptions of employees of the agency.

(3) Any programs and projects under the direction of the agency.

(4) Measures of the success or failures of the agency and
justifications for the metrics used to evaluate successes and failures.

(5) Any recommendations of the agency for changes or
reorganization in order to better fulfill its purpose.

(d) The committee shall take public testimony and evaluate the
eligible agency prior to the date the agency is scheduled to be
repealed. An eligible agency shall be eliminated unless the
Legislature enacts a law to extend, consolidate, or reorganize the
eligible agency. No eligible agency shall be extended in perpetuity
unless specifically exempted from the provisions of this section.
The committee may recommend that the Legislature extend the
statutory sunset date for no more than one year to allow the
committee more time to evaluate the eligible agency.

(e) The committee shall be comprised of 10 members of the
Legislature. The Senate Committee on Rules shall appoint five
members of the Senate to the committee, not more than three of
whom shall be members of the same political party. The Speaker
of the Assembly shall appoint five members of the Assembly to
the committee, not more than three of whom shall be members of
the same political party. Members shall be appointed within 15
days after the commencement of the regular session. Each member
of the committee who is appointed by the Senate Committee on
Rules or the Speaker of the Assembly shall serve during that
committee member’s term of office or until that committee member
no longer is a Member of the Senate or the Assembly, whichever
is applicable. A vacancy on the committee shall be filled in the
same manner as the original appointment. Three Assembly
Members and three Senators who are members of the committee
shall constitute a quorum for the conduct of committee business.
Members of the committee shall receive no compensation for their
work with the committee.

(f) The committee shall meet not 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. The chairperson of
the committee shall alternate every two years between a Member
of the Senate and a Member of the Assembly, and the vice
chairperson of the committee shall be a member of the opposite
house as the chairperson.

(g) This section shall not be construed to change the existing
jurisdiction of the budget or policy committees of the Legislature.

begin insert

(h) This section shall remain in effect only until January 1, 20__,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 20__, deletes or extends that date.

end insert

SEC. 2.  

Article 7.6 (commencing with Section 9147.9) is added
to Chapter 1.5 of Part 1 of Division 2 of Title 2 of the Government
Code, to read:

 

Article 7.6.  California Sunset Review Commission

 

9147.9.  

This article may be cited as the California Sunset
Review Commission Act.

9147.11.  

For the purpose of this section, the following
definitions shall apply:

(a) “Agency” means 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.

(b) “Commission” means the California Sunset Review
Commission.

(c) “Act” means the California Sunset Review Commission Act.

9147.13.  

The California Sunset Review Commission is hereby
created within the executive branch of state government. The
commission shall be located in Sacramento.

9147.15.  

(a) The commission shall consist of 10 members.

(1) The Governor shall appoint 8 members to serve a term of
four years.

(2) The Senate Committee on Rules shall appoint one Member
of the Senate to serve a term of two years or until that Member is
no longer a Member of the Senate, whichever is applicable.

(3) The Speaker of the Assembly shall appoint one Member of
the Assembly to serve a term of two years or until that Member is
no longer a Member of the Assembly, whichever is applicable.

(b) The commission shall appoint a chairperson from its
members appointed pursuant to paragraph (1).

(c) The Members of the Legislature appointed to the commission
shall serve at the pleasure of the appointing power and shall
participate in the activities of the commission to the extent that
the participation is not incompatible with their respective positions
as Members of the Legislature.

(d) A vacancy on the commission shall be filled in the same
manner as the original appointment.

(e) (1) The members of the commission shall serve without
compensation, except that each member appointed by the Governor
shall receive fifty dollars ($50) for each day’s attendance at a
meeting of the commission.

(2) Each member shall be allowed actual expenses incurred in
the discharge of his or her duties, including travel expenses.

9147.17.  

(a) The commission shall be under the direction of
a director appointed by the commission members.

(b) The director shall employ sufficient staff to carry out the
commission’s responsibilities.

(c) The Legislative Analyst’s Office shall estimate the staffing
needed to manage the workload of the commission.

9147.19.  

(a) The commission shall serve in an advisory
capacity and shall meet regularly to assess and review the
continuing need for an agency to exist.

(b) Prior to the commission’s review of an agency, the
commission staff shall work with each agency to evaluate the need
for the agency to exist, identify required statutory, regulatory, or
management changes, and develop recommendation for legislative
proposals to enact those changes. The commission shall also
consult with interest groups, affected agencies, and other interested
parties in reviewing an agency.

(c) In carrying out its duties pursuant to this section, the
commission shall evaluate an agency pursuant to the following
criteria, as applicable:

(1) The efficiency and effectiveness of the agency’s operations.

(2) Whether the agency has been successful in achieving its
mission, goals, and objectives.

(3) Whether the agency performs duties that are not statutorily
authorized and, if so, identify the authority for those activities and
whether those activities are needed.

(4) Whether the agency has any authority related to fees,
inspections, enforcement, and penalties.

(5) Whether the agency’s functions and operations could be less
burdensome or restrictive while still serving the public.

(6) Whether the functions of the agency could be effectively
consolidated or merged with another agency to promote efficiency
in government.

(7) Whether the agency’s programs and jurisdiction duplicate
those of other state agencies.

(8) Whether the agency promptly and effectively addresses
complaints.

(9) Whether the agency utilizes public participation for
rulemaking and decisions and, if so, whether it is done in an
effective manner.

(10) Whether the agency complied with federal and state
requirements regarding equal employment, privacy rights, and
purchasing guidelines for underutilized businesses.

(11) Whether the agency effectively enforces rules regarding
the potential conflicts of interest of its employees.

(12) Whether abolishing the agency would cause federal
government intervention or loss of federal funds.

(13) Whether the agency’s statutory reporting requirements
effectively fulfill a useful purpose; and whether there are reporting
requirements of this agency that are duplicative of other agencies
or can effectively be combined or consolidated into another agency
that has similar requirements.

(d) The commission shall take public testimony from agency
staff, interest groups, and affected parties relating to whether an
agency should continue in existence.

(e) (1) The commission shall prepare a staff report to be
submitted to the Legislature. The report shall include, but not be
limited to, specific recommendations to the Legislature to enact
legislation to do the following:

(A) Repeal unnecessary, outdated, or unnecessary statutes,
regulations, and programs.

(B) Develop reorganization plans that abolish and streamline
existing agencies, if needed. 

(2) A report to the Legislature pursuant to this section shall be
submitted in compliance with Section 9795.

(3) This subdivision shall become inoperative on January 1,
2018, pursuant to Section 10231.5

9147.21.  

Prior to review by the commission, an agency shall
submit a self-evaluation report to the commission. The report shall
include, but not be limited to, the criteria described in subdivision
(c) of Section 9147.19.

9147.23.  

In order to ensure accountability, the commission
shall demonstrate a 5-to-1 cost savings within the first five years
of sunset review hearings, and every five years thereafter. For
every dollar it costs to run the commission, five dollars ($5) shall
be saved in streamlining the government process and eliminating
unnecessary agencies.

9147.25.  

This article shall become operative on January 1,
20__.

SEC. 3.  

Section 9148.8 of the Government Code is amended
to read:

9148.8.  

(a) The appropriate policy committee of the Legislature
may evaluate a plan prepared pursuant to Section 9148.4 or 9148.6.
The chairperson of a policy committee may alternatively require
that the Joint Sunset Review Committee evaluate and provide
recommendations on any plan prepared pursuant to Section 9148.4
or 9148.6, or any other legislative issue or proposal to create a new
state board.

(b) The Joint Sunset Review Committee shall provide to the
respective policy and fiscal committees of the Legislature any
evaluation and recommendations prepared pursuant to this section.

(c) If an appropriate policy committee does not evaluate a plan
prepared pursuant to Section 9148.6, then the Joint Sunset Review
Committee shall evaluate the plan and provide recommendations
to the Legislature.

begin insert

(d) This section shall remain in effect only until January 1, 20__,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 20__, deletes or extends that date.

end insert

SEC. 4.  

Section 9148.8 is added to the Government Code, to
read:

9148.8.  

(a) The appropriate policy committee of the Legislature
may evaluate a plan prepared pursuant to Section 9148.4 or 9148.6.
The chairperson of a policy committee may alternatively require
that the California Sunset Review Commission evaluate and
provide recommendations on any plan prepared pursuant to Section
9148.4 or 9148.6, or any other legislative issue or proposal to
create a new state board.

(b) The California Sunset Review Commission shall provide to
the respective policy and fiscal committees of the Legislature any
evaluation and recommendations prepared pursuant to this section.

(c) If an appropriate policy committee does not evaluate a plan
prepared pursuant to Section 9148.6, then the California Sunset
Review Commission shall evaluate the plan and provide
recommendations to the Legislature.

This section shall become operative on January 1, 20__.

SEC. 5.  

Section 9148.50 of the Government Code is amended
to read:

9148.50.  

The Legislature finds and declares all of the following:

(a) California’s multilevel, complex governmental structure
today contains more than 400 categories of administrative or
regulatory boards, commissions, committees, councils, associations,
and authorities.

(b) These administrative or regulatory boards, commissions,
committees, councils, associations, and authorities have been
established without any method of periodically reviewing their
necessity, effectiveness, or utility.

(c) As a result, the Legislature and residents of California cannot
be assured that existing or proposed administrative or regulatory
boards, commissions, committees, councils, associations, and
authorities adequately protect the public health, safety, and welfare.

begin insert

(d) This section shall remain in effect only until January 1, 20__,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 20__, deletes or extends that date.

end insert

SEC. 6.  

Section 9148.51 of the Government Code is amended
to read:

9148.51.  

(a) It is the intent of the Legislature that all existing
and proposed eligible agencies, as defined in subdivision (a) of
Section 9147.7, be subject to review to evaluate and determine
whether each has demonstrated a public need for its continued
existence in accordance with enumerated factors and standards as
set forth in Article 7.5 (commencing with Section 9147.7).

(b) If any state board becomes inoperative or is repealed in
accordance with the act that added this section, any provision of
existing law that provides for the appointment of board members
and specifies the qualifications and tenure of board members shall
not be implemented and shall have no force or effect while that
state board is inoperative or repealed.

(c) Any provision of law authorizing the appointment of an
executive officer by a state board subject to the review described
in Article 7.5 (commencing with Section 9147.7), or prescribing
his or her duties, shall not be implemented and shall have no force
or effect while the applicable state board is inoperative or repealed.

begin insert

(d) This section shall remain in effect only until January 1, 20__,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 20__, deletes or extends that date.

end insert

SEC. 7.  

Section 9148.52 of the Government Code is amended
to read:

9148.52.  

(a) The Joint Sunset Review Committee established
pursuant to Section 9147.7 shall review all eligible agencies.

(b) The committee shall evaluate and make determinations
pursuant to Article 7.5 (commencing with Section 9147.7).

(c) Pursuant to an evaluation made as specified in this section,
the committee shall make a report which shall be available to the
public and the Legislature on whether an agency should be
terminated, or continued, or whether its functions should be revised
or consolidated with those of another agency, and include any
other recommendations as necessary to improve the effectiveness
and efficiency of the agency. If the committee deems it advisable,
the report may include proposed legislative proposals that would
carry out its recommendations.

begin insert

(d) This section shall remain in effect only until January 1, 20__,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 20__, deletes or extends that date.

end insert