BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1518
                                                                  Page  1

          Date of Hearing:   January 12, 2010

                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS
                                 Mary Hayashi, Chair
                    AB 1518 (Anderson) - As Amended:  May 11, 2009
          
          SUBJECT  :   State government: boards, commissions, committees:  
          repeal.

           SUMMARY  :   Requires that all statutorily created state boards,  
          commissions, and committees that have not met nor had a quorum  
          at any of their regular meetings since January 1, 2008, be  
          repealed on January 1, 2011, with certain exceptions.   
          Specifically,  this bill  :

          1)Requires all statutorily created state boards, commissions,  
            and committees that have not met or had a quorum at any of  
            their regular meetings since January 1, 2008, be repealed on  
            January 1, 2011.

          2)Exempts the above requirement if the agency secretary, under  
            whose authority the state board, commission, or committee  
            functions, issues an order that states which state boards,  
            commissions, or committees under his or her authority are  
            actively meeting or have a functioning membership and  
            transmits that information to the following:

             a)   The Chief Clerk of the Assembly;

             b)   The Secretary of the Senate; and,

             c)   The Chairpersons of the Assembly Committee on Business  
               and Professions and the Senate Committee on Business,  
               Professions and Economic Development.

           EXISTING LAW  establishes various state boards, commissions, and  
          committees.

           FISCAL EFFECT  :   Unknown.  This bill is keyed non-fiscal.

           COMMENTS  :   

           Previous Committee Action  .  This bill was heard on May 5, 2009  
          and was put over for a further hearing.  The author's office has  
          amended the bill to exempt state boards, commissions, and  








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          committees from abolishment if the agency secretary, under whose  
          authority the state board, commission, or committee functions,  
          issues an order stating the board, commission, or committee is  
          actively meeting or has a functioning membership. 
           
          Purpose of this bill  .  According to the author's office,  
          "Hundreds of boards, commissions, and committees are on the  
          books, but no one's kept track of how many there are.  It simply  
          doesn't make sense to keep non-functioning pieces of government  
          laying around.  This is an easy way to start by cleaning up the  
          codes where there is simply nothing going on, and promotes a  
          vision of a more efficient and leaner shape of government."

          In support of this bill, the author's office quotes directly  
          from the Little Hoover Commission (LHC), "California, like many  
          states during the last century, built a government that relied  
          heavily on boards and commissions to improve government  
          decision-making.  Boards and commissions - if well structured  
          and managed - can be effective mechanisms for serving the  
          public.  But boards and commissions also are frequently cited as  
          examples of waste and abuse of government resources.  The case  
          is usually made through examples of bodies that are too  
          independent - not accountable to the people, to the legislation  
          that authorizes their activity, to the appointing powers or even  
          the facts before them.  There are some instances where members  
          are given full-time pay for part-time work.  Some boards are too  
          close to the profession or business they are expected to  
          regulate.  And there are even more boards that are not providing  
          the advice or oversight that is expected of them."

           Background  .  The author's office selectively excerpts from a LHC  
          report to support its premise that this bill "is an easy way to  
          start" to eliminate waste and abuse of government resources  
          associated with boards and commissions.  However, that same LHC  
          report also calls for careful analysis, planning, and  
          coordination of reform efforts.  The information provided by the  
          author's office and the provisions of this bill do not provide  
          any assessment of which entities would potentially be  
          eliminated, nor how their elimination may affect the operation  
          of government or the public welfare.  

          AB 1869 (Anderson) of 2008 would have eliminated most of the  
          boards and commissions serving California as initially proposed  
          in Governor's Schwarzenegger's 2004 California Performance  
          Review (CPR).  The CPR proposed eliminating 88 state boards and  








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          commissions by either abolishing the boards and their functions  
          entirely or by placing their functions within the executive  
          branch.  Amidst opposition from the public, business, and  
          consumer protection groups, the Administration dropped this  
          proposal.   

          In response to the Governor's CPR proposal, the LHC published  
          Historic Opportunities:  Transforming California State  
          Government.  This report, used as background material by the  
          author's office, states, "?reforms that seek to reduce  
          fragmentation through consolidation alone, and do not provide  
          for coordinating the efforts of the consolidated departments,  
          will ultimately fail in their goals.  In addition, if the only  
          solution to fragmentation is consolidation, then departments may  
          become too big to be effective.  Thus, problem assessment should  
          explore how organizational structures, the size of departments  
          and related challenges might complicate efforts to collaborate,  
          cooperate or coordinate efforts to realize goals."

          Further, the LHC report states, "In addition to saving money,  
          the CPR was attempting in some instances to streamline  
          decision-making, increase coordination between related programs,  
          and make programs now governed by boards more accountable to the  
          Governor.  While those are all noble goals, in many cases,  
          boards were intentionally created to ensure that regulatory  
          decisions were based on facts and insulated from the political  
          influences of elected officials.  In other cases, boards provide  
          a necessary separation between conflicting government functions,  
          such as purchasing services from an industry that the State also  
          regulates.

           "At a minimum, situational analysis should produce agreement on  
          the problem to be addressed, an assessment of the costs and  
          benefits of the existing system and potential alternatives, and  
          a clear understanding of the disruptions associated with change  
          and how to mitigate or minimize those disruptions.  Only then  
          can a strategy for improvement be developed.  An appropriate  
          strategy must thoroughly document how particular proposals will  
          result in improved outcomes and productivity, who is responsible  
          for bringing about changes and when and how they will be  
          achieved.  Information and a commitment to make fact-based  
          decisions are essential to improving performance.  That  
          discipline needs to be applied by policy-makers and program  
          managers."









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           Related legislation  .  AB 783 (Anderson) of 2009 requires that  
          all statutorily created state agencies, boards, and state  
          commissions that are funded by General Fund revenues, except for  
          the Franchise Tax Board, be repealed on January 1, 2022.  This  
          bill is pending in the Assembly Business and Professions  
          Committee.

           Prior legislation  .  AB 1869 (Anderson) of 2008 abolishes or  
          consolidates various boards and commissions.  This bill was held  
          in the Assembly Business and Professions Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Rebecca May / B. & P. / (916) 319-3301