BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1508


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          Date of Hearing:  May 6, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          1508 (Roger Hernandez) - As Amended March 26, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Governor to designate an independent  
          chief policy adviser for the underground economy. Specifically,  
          this bill:









                                                                    AB 1508


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          1)Specifies the adviser's responsibilities, including monitoring  
            and evaluating the state's existing underground economy task  
            forces and interagency partnerships to ensure that they are  
            organized efficiently and to determine whether they should be  
            restructured or eliminated to improve effectiveness. Further,  
            requires the advisor to assess whether resources are  
            sufficient; including review of enforcement staffing and  
            funding levels.


          2)Requires the advisor, on or before than January 1, 2017, to  
            submit a report to the Governor and the Legislature that  
            summarizes the adviser's findings and recommendations, with a  
            particular emphasis on any recommended administrative or  
            legislative changes.


          FISCAL EFFECT:  


          General Fund costs in the range of $150,000 to $200,000 for the  
          chief policy advisor to monitor and evaluate the taskforces and  
          interagency partnerships as well as submit a report to the  
          Legislature as specified.   


          COMMENTS:  


          Purpose. There are currently four major state-level task forces  
          that focus on the underground economy. The Labor Enforcement  
          Task Force and the Joint Enforcement Strike Force primarily  
          focus on labor violations. Two more recently established task  
          forces, the Revenue Recovery and Collaborative Enforcement Team  
          and the Tax Recovery and Criminal Enforcement Task Force focus  
          on identifying and prosecuting criminal tax evasion.










                                                                    AB 1508


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          In March 2015, the Little Hoover Commission released a report  
          entitled, "Level the Playing Field: Put California's Underground  
          Economy Out of Business." That report made a number of findings  
          and recommendations.  Among these, the Commission found that  
          although numerous government organizations focus on tackling the  
          underground economy, no one is directly in charge. 


          According to the author, consistent with the Commission's  
          recommendations, this bill requires the Governor to appoint an  
          independent chief policy advisor for the underground economy.  
          Further, the bill requires the advisor to submit a report to the  
          Governor and the Legislature that summarizes findings and  
          recommendations, with a particular emphasis on any recommended  
          administrative or legislative changes.


          Analysis Prepared by:Misty Feusahrens / APPR. / (916)  
          319-2081