BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1508|
|Office of Senate Floor Analyses | |
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THIRD READING
Bill No: AB 1508
Author: Roger Hernández (D)
Amended: 3/26/15 in Assembly
Vote: 21
SENATE BUS, PROF. & ECON. DEV. COMMITTEE: 9-0, 6/22/15
AYES: Hill, Bates, Berryhill, Block, Galgiani, Hernandez,
Jackson, Mendoza, Wieckowski
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/27/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
ASSEMBLY FLOOR: 77-2, 6/1/15 - See last page for vote
SUBJECT: Underground economy: policy adviser
SOURCE: Author
DIGEST: This bill requires the Governor to designate an
independent policy adviser for the underground economy.
ANALYSIS:
Existing law:
1)Establishes an enforcement division in the Contractors State
License Board (CSLB) and requires the unit to rigorously
enforce the Contractors Law prohibiting all forms of
unlicensed activity. (Business and Professions Code (BPC) §
7011.4 (a))
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2)Authorizes the CSLB enforcement division to have free access
to all places of labor when participating in the enforcement
activities of the Joint Enforcement Strike Force on the
Underground Economy (JESF). (BPC § 7011.4 (c))
3)Authorizes an unlicensed contractor to advertise for
construction work only if the advertisement states that he or
she is not licensed. (BPC § 7027.2)
4)Makes it a misdemeanor for an unlicensed contractor to
advertise for construction or work of improvements or act in
the capacity of a contractor. Imposes specified civil
penalties, including fines and imprisonment against the
unlicensed contractor and authorizes CSLB to cite the
unlicensed contractor. (BPC § 7028)
5)Establishes the JESF to coordinate efforts in targeting tax
evasion and cash-pay violations, and authorizes the sharing of
investigative and enforcement capabilities between JESF
participants. (Unemployment Insurance Code § 329)
This bill:
1)Requires the Governor to designate an independent chief policy
adviser for the underground economy. 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
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prevent task forces and partnerships from being fully
effective.
f) Leading a strategic planning process to develop
performance outcomes for combating the underground economy.
1)Requires the adviser, 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.
Background
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. 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.
This bill aims to implement the Commission's recommendations.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
According to the Senate Appropriations Committee, this bill will
result in General Fund costs, likely in the low hundreds of
thousands of dollars annually, to establish a chief policy
adviser, evaluate the various task forces and partnerships, and
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submit a report to the Legislature.
SUPPORT: (Verified8/29/15)
California Pool and Spa Association
California Professional Association of Specialty Contractors
Pacific Association of Building Service Contractors
Plumbing-Heating-Cooling Contractors Association of California
State of California Auto Dismantlers Association
The Little Hoover Commission
OPPOSITION: (Verified8/29/15)
None received
ARGUMENTS IN SUPPORT: Supporters state that an unfair
playing field undermines state laws that protects consumers and
workers, harms law-abiding businesses, and defrauds the state of
significant tax revenue.
ASSEMBLY FLOOR: 77-2, 6/1/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang,
Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,
Eduardo Garcia, Gipson, Gomez, Gonzalez, Gray, Grove, Hadley,
Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer,
Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis,
Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,
O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon,
Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark
Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,
Wood, Atkins
NOES: Chávez, Gatto
NO VOTE RECORDED: Gordon
Prepared by:Mark Mendoza / B., P. & E.D. / (916) 651-4104
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8/30/15 19:27:53
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