BILL ANALYSIS Ó AB 1508 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1508 (Roger Hernandez) - As Amended March 26, 2015 ----------------------------------------------------------------- |Policy |Labor and Employment |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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