BILL ANALYSIS Ó
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ASSEMBLY THIRD READING
AB
1508 (Roger Hernández)
As Amended March 26, 2015
Majority vote
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|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 | |
| | | | |
| | | | |
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SUMMARY: Requires the establishment of an independent policy
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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