BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   AB 579|
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                                 THIRD READING


          Bill No:  AB 579
          Author:   Huber (D)
          Amended:  9/1/09 in Senate
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  9-0, 7/8/09
          AYES:  Wright, Harman, Benoit, Calderon, Denham, Florez,  
            Negrete McLeod, Price, Yee
          NO VOTE RECORDED:  Oropeza, Padilla, Wiggins, Wyland
           
          SENATE APPROPRIATIONS COMMITTEE  :  13-0, 8/27/09
          AYES:  Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,  
            Price, Runner, Walters, Wolk, Wyland, Yee
           
          ASSEMBLY FLOOR  :  75-1, 6/2/09 - See last page for vote


           SUBJECT  :    State boards and commissions:  audits

           SOURCE  :     Author


           DIGEST  :    This bill requires the Bureau of State Audits  
          (BSA) to annually, upon appropriation by the Legislature,  
          audit the workload of at least two boards or commissions  
          comprised of board members or commissioners to whom the  
          state pays an annual salary for their services.  Requires  
          the BSA to make findings for each board or commission  
          audited regarding the workload of that board or commission  
          to work to fulfill his or her duties.  Requires the BSA to  
          complete these audits and make these findings by December  
          31 of each year and to make them available to the  
                                                           CONTINUED





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          Legislature and the Governor.  Requires the BSA to audit  
          the workload of the Unemployment Insurance Appeals Board by  
          December 31, 2010.  Appropriates $125,000 for these  
          purposes.

           ANALYSIS  :    Existing law provides for the salaries and  
          raises of various exempt state employees, including board  
          members and commissioners that receive an annual salary  
          from the state for their service on a state board or  
          commission.

          This bill:

          1. Requires the State Auditor, upon appropriation by the  
             Legislature, to annually audit the workload of at least  
             two boards and commissions to whom the state pays an  
             annual salary for the services of the members.

          2. Provides that, for each state board or commission  
             audited, the State Auditor shall make findings regarding  
             the workload of that state board or commission and the  
             number of hours necessary for each board member or  
             commissioner to work to fulfill his/her duties to that  
             state board or commission.

          3. Requires the State Auditor to complete the audits and  
             report its findings to the Legislature and the Governor  
             on or before December 31 of each year.

          4. Requires the State Auditor to audit and make findings  
             regarding the workload of the Unemployment Insurance  
             Appeals Board (UIAB) by December 31, 2010.

          5. Appropriates $125,000 from the Unemployment  
             Administration fund to the BSA for the purposes of  
             conducting the review and issuing the report.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                           Fiscal Impact (in thousands)








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             Major Provisions                2009-10     2010-11       
             2011-12               Fund  

            Workload audits               $100 to $125           
            Special*
               UIAB
                                Unknown, likely similar costs  
            ongoingGeneral/
                                in future years subject to  
            appropriation


           SUPPORT  :   (Verified  9/1/09)

          Service Employees International Union Local 1000

           OPPOSITION  :    (Verified  9/1/09)

          Department of Finance

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          "The state does not have a mechanism in place to examine  
          the work performed by individuals appointed to boards and  
          commissions to ensure that these salaried appointees are  
          paid salaries commensurate with their duties.  To ensure  
          that state boards and commissions are neither performing  
          superfluous tasks nor providing excessive salaries with  
          taxpayer funds, the state must develop a process to provide  
          an independent, non-partisan assessment of their activities  
          and the salaries paid to appointees."

          The Joint Legislative Sunset Review Committee (JLSRC)  
          reviews the mission and accomplishments of several state  
          consumer protection boards.  The primary goal of the JLSRC  
          is to systematically examine and evaluate all boards and  
          commissions within the Department of Consumer Affairs to  
          ensure that they are effectively, efficiently, and  
          transparently administered in the public interest.  

          The scope of the work of the JLSRC is broader than the  
          requirements placed upon the State Auditor by this bill.   
          The rationale for the sunset review law is to place a  
          termination date on a particular program or agency, and in  
          the meantime, review it to determine if it is still  







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          operating in an effective and efficient manner, and whether  
          it should continue to exist.  This bill is narrowly focused  
          to examine the workload of state boards or commissions and  
          the number of hours of work necessary for each board member  
          or commissioner to fulfill his/her duties to the state  
          boards or commissions.  The requirements of this bill could  
          be deemed as complementary to the work of the JLSRC.

           ARGUMENTS IN OPPOSITION  :    The Department of Finance is  
          opposed to this bill due to its General Fund costs.  
           

           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Arambula, Beall, Tom Berryhill,  
            Blakeslee, Blumenfield, Buchanan, Caballero, Charles  
            Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De  
            La Torre, De Leon, DeVore, Emmerson, Eng, Evans, Feuer,  
            Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,  
            Galgiani, Garrick, Gilmore, Hagman, Hall, Harkey,  
            Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,  
            Jones, Knight, Krekorian, Lieu, Logue, Bonnie Lowenthal,  
            Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, John A. Perez, V. Manuel Perez, Portantino,  
            Price, Ruskin, Salas, Saldana, Silva, Skinner, Smyth,  
            Solorio, Audra Strickland, Swanson, Torlakson, Torres,  
            Torrico, Tran, Villines, Yamada, Bass
          NOES:  Anderson
          NO VOTE RECORDED:  Bill Berryhill, Block, Brownley, Duvall


          TSM:mw  9/1/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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