BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1508


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          ASSEMBLY THIRD READING


          AB  
          1508 (Roger Hernández)


          As Amended  March 26, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                 |Noes                 |
          |----------------+------+---------------------+---------------------|
          |Labor           |7-0   |Roger Hernández,     |                     |
          |                |      |Harper, Chu, Low,    |                     |
          |                |      |McCarty, Patterson,  |                     |
          |                |      |Thurmond             |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,      |                     |
          |                |      |Bonta, Calderon,     |                     |
          |                |      |Chang, Daly, Eggman, |                     |
          |                |      |Gallagher,           |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |                |      |Eduardo Garcia,      |                     |
          |                |      |Gordon, Holden,      |                     |
          |                |      |Jones, Quirk,        |                     |
          |                |      |Rendon, Wagner,      |                     |
          |                |      |Weber, Wood          |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
           ------------------------------------------------------------------- 


          SUMMARY:  Requires the establishment of an independent policy  








                                                                      AB 1508


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          advisor for the underground economy, as specified.  Specifically,  
          this bill:


          1)Requires the Governor to designate an independent chief policy  
            adviser for the underground economy.


          2)Specifies that the adviser's responsibilities shall include, but  
            not be limited to, the following:


             a)   Monitoring the state's existing underground economy task  
               forces and interagency partnerships to ensure that they are  
               organized efficiently.


             b)   Evaluating whether any task forces and partnerships should  
               be eliminated or restructured to improve effectiveness.


             c)   Evaluating whether existing task forces and partnerships  
               have sufficient resources and whether gaps or overlaps exist  
               in combating the underground economy.


             d)   Reviewing enforcement staffing and funding levels and  
               developing recommendations to adequately fund enforcement.


             e)   Developing recommendations to eliminate barriers that  
               prevent task forces and partnerships from being fully  
               effective.


             f)   Leading a strategic planning process to develop  
               performance outcomes for combating the underground economy.










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          3)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:  According to the Assembly Appropriations  
          Committee, 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:  In March 2015, the Little Hoover Commission  
          (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. Hardworking government employees do their best  
          to combat the problem, but often without adequate resources or the  
          data or equipment to effectively do their jobs.


          There are four major state task forces focused on the underground  
          economy, but it is not clear, overall, what the outcomes have  
          been. The Commission recommended the Governor appoint an  
          independent leader, in consultation with state leaders who have  
          jurisdiction over the underground economy, with clear authority to  
          untangle any overlaps in responsibilities, bridge silos and move  
          efficiently toward results. The Commission recommended that this  
          leader should report back on administrative or legislative changes  
          needed to overcome the obstacles.


          The California Pool & Spa Association supports this bill, stating  
          that their members face a competitive disadvantage to the  
          unlicensed or non-compliant contractors who perform work for a  








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          much cheaper cost as a result of skirting labor, insurance, and  
          tax requirements.  An unfair playing field undermines state laws  
          that protect consumers and workers, harms tax-abiding businesses,  
          and defrauds the state of significant tax revenue.


          There is no opposition on file to this bill.




          Analysis Prepared by:                                               
          Ben Ebbink / L. & E. / (916) 319-2091  FN: 0000571