BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2380
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          Date of Hearing:   April 10, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                 AB 2380 (Huber) - As Introduced:  February 24, 2012
           
          SUBJECT  :   State government: agency repeals.

           SUMMARY  :   Requires eligible agencies for which a repeal date 
          has been established on or after January 1, 2011, to submit a 
          report to the Joint Sunset Review Committee (Committee) on or 
          before December 1, two years prior to the year the agency is set 
          to be repealed.

           EXISTING LAW  

          1)Establishes the Committee to identify and eliminate waste, 
            duplication, and inefficiency in government agencies, and 
            states that the purpose of the Committee is to conduct a 
            comprehensive analysis over 15 years, and on a periodic basis 
            thereafter, of every eligible agency to determine if the 
            agency is still necessary and cost effective.

          2)Requires eligible agencies to submit to the Committee, on or 
            before December 1 prior to the year it is set to be repealed, 
            a complete agency report covering the entire period since last 
            reviewed, as specified.

          3)Requires the Committee to take public testimony and evaluate 
            the eligible agency prior to the date the agency is scheduled 
            to be repealed.  

          4)Requires an eligible agency to be eliminated unless the 
            Legislature enacts a law to extend, consolidate, or reorganize 
            the eligible agency.  No eligible agency shall be extended in 
            perpetuity unless specifically exempted.  The Committee may 
            recommend that the Legislature extend the statutory sunset 
            date for no more than one year to allow the Committee more 
            time to evaluate the eligible agency.

          5)Establishes the composition of the Committee, which includes 
            10 members of the Legislature, and its meeting schedule, as 
            specified.









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          6)Defines "eligible agency" to mean an agency, authority, board, 
            bureau, commission, conservancy, council, department, 
            division, or office of state government, however denominated, 
            excluding an agency that is constitutionally created or an 
            agency related to postsecondary education, for which a date 
            for repeal has been established by statute on or after January 
            1, 2011.

          FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author, "The original 
          statute requires an entity to submit a report by December 1 
          prior to the year the entity is set to be repealed.  Because 
          most repeal dates are scheduled for January 1, this leaves only 
          30 days for the Committee to review an entity before it sunsets. 
           This bill corrects the timeline to provide for a full year (and 
          30 days) prior to the entity's sunset for review."    

           Background  .  The policy of establishing sunset dates is intended 
          to provide the Legislature an opportunity to conduct a regular 
          systematic performance review and evaluation of governmental 
          bodies, commonly referred to as the "Sunset Review" process.  
          Prompted by an impending sunset date, the Legislature may choose 
          to extend the sunset to a later date or instead terminate or 
          "sunset" the governmental body in question.  Regardless of 
          whether a governmental body has a sunset or not, the Legislature 
          may still conduct a review at any time.

          Each year, the Legislature enacts legislation extending sunset 
          dates and simultaneously making substantive policy changes.  
          This can be concerning if the Legislature and Administration are 
          unable to reach consensus related to the new policies prior to 
          the sunset date.  This most notably occurred regarding the 
          Bureau for Private Postsecondary Education (BPPE).  The Governor 
          vetoed a bill both revising the functions of the BPPE and 
          extending its sunset and the BPPE became inoperative July of 
          2007, and remained inoperative, until early 2010.  The inability 
          to extend the sunset of the BPPE caused a significant lapse in 
          the regulation of private postsecondary education and a failure 
          to provide for the protection and interests of students and 
          institutions.  

          Similarly, the Governor vetoed a bill extending the sunset for 








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          four boards (Speech-Language Pathology and Audiology Board, 
          Board of Vocational Nursing and Psychiatric Technicians, Board 
          of Barbering and Cosmetology, and the Dental Board of 
          California) in 2007 for reasons unrelated to the extension of 
          their respective sunset dates.  Legislation was enacted to 
          resurrect these boards six months after they were made 
          inoperative.  Likewise, in 2011, a bill to extend the sunset of 
          the Board of Registered Nursing (BRN) was vetoed by the 
          Governor.  BRN was reconstituted by way of urgency legislation 
          in February of 2012, two months after it was made inoperative.

          California has experienced a long and arduous process of 
          establishing and then revising its sunset review process and the 
          entities subject to it, beginning in 1994 and culminating in 
          last year's AB 1659 (Huber), Chapter 666, Statutes of 2010, 
          which establishes the Committee and its purpose, composition and 
          authority.  

          Once limited to boards and bureaus within the Department of 
          Consumer Affairs (DCA), sunset review now encompasses a much 
          broader range of government entities.  Sunset review of DCA 
          entities falls under the purview of the appropriate standing 
          policy committees of the Legislature, while the Committee's 
          jurisdiction includes any "agency, authority, board, bureau, 
          commission, conservancy, council, department, division, or 
          office of state government, however denominated, excluding an 
          agency that is constitutionally created or an agency related to 
          postsecondary education, for which a date for repeal has been 
          established by statute on or after January 1, 2011."

          Current law requires these eligible agencies to submit a report 
          to the Committee on or before December 1 prior to the year the 
          agency is scheduled for repeal.  The report must cover the 
          entire period since last reviewed including, but not limited to, 
          the following information:

          1)The purpose and necessity of the agency.

          2)A description of the agency budget, priorities, and job 
            descriptions of employees of the agency.

          3)Any programs and projects under the direction of the agency.

          4)Measures of the success or failures of the agency and 
            justifications for the metrics used to evaluate successes and 








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            failures.

          5)Any recommendations of the agency for changes or 
            reorganization in order to better fulfill its purpose.

          The review process includes the following steps:

          1)The Committee sends an invitation letter to the entity to 
            participate in the sunset review process.  This letter asks 
            the entity to complete a Self Evaluation Report (SER) and 
            gives the approximate date and time of a public hearing.

          2)Committee staff receives the completed SER and produces a 
            staff report with recommendations.  Staff shares the report 
            with the entity prior to publication for comments.

          3)At the public hearing, the committee staff discusses the 
            report and the entity and stakeholders present and respond.

          4)Committee members vote on any recommendations rising from the 
            report and/or the public hearing at the next Joint Sunset 
            Committee hearing.   

          This bill changes the due date for the agency reports to be no 
          later than December 1 two years prior to the date of repeal, 
          which allows the Committee an additional year to complete its 
          review process without having to request a sunset extension from 
          the Legislature.

           Previous legislation  .

          AB 1659 (Huber), Chapter 666, Statutes of 2010, establishes the 
          Committee and its purpose, composition and authority.

          AB 2130 (Huber), Chapter 670, Statutes of 2010, abolishes the 
          Joint Committee on Boards, Commissions, and Consumer Protection, 
          and instead makes specified boards and regulatory programs 
          subject to review by the Committee.

          SB 1171 (Negrete McLeod) of 2010, among other things, revises 
          and recasts sunset review law to remove references to the Joint 
          Committee on Boards, Commissions, and Consumer Protection, and 
          instead authorize the appropriate standing policy committees of 
          the Legislature to carry out sunset review functions.  This bill 
          was held in Senate Rules Committee.








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          SB 638 (Negrete McLeod) of 2009, among other things, revises and 
          recasts sunset review law to remove references to the Joint 
          Committee on Boards, Commissions, and Consumer Protection, and 
          instead authorize the appropriate standing policy committees of 
          the Legislature to carry out the sunset review functions.  This 
          bill was held in Senate Rules Committee.

          AB 1467 (Negrete McLeod), Chapter 33, Statutes of 2004, renames 
          the Joint Legislative Sunset Review Committee to the Joint 
          Committee on Boards, Commissions, and Consumer Protection.

          SB 364 (Figueroa), Chapter 789, Statutes of 2003, expands the 
          jurisdiction of the Joint Legislative Sunset Review Committee to 
          include virtually all state boards.

          SB 2036 (McCorquodale), Chapter 908, Statutes of 1994, creates 
          the sunset review process in California by establishing the 
          Joint Legislative Sunset Review Committee to provide specific 
          review criteria and minimum standards of evaluation for 
          legislative and state agency use, and to subject all boards of 
          the DCA to periodic review and sunset.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Federation of State, County and Municipal Employees, 
          AFL-CIO

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Angela Mapp / B.,P. & C.P. / (916) 
          319-3301