Frequently Asked Questions about the “Sunset Review” Process

Frequently Asked Questions about the “Sunset Review” Process By Chris Micheli

            In the California Legislature, there is a “sunset review” process that is used to evaluate whether a regulatory board or a profession or occupation should continue to be regulated by the State of California. This review process is set forth in California law.

            Where is the sunset review process found in law? Government Code Title 2, Division 2, Part 1, Chapter 1.5, Article 7.5 (“Sunset Review”) sets forth the regulatory scheme for this review process.

Which agencies does the sunset review process apply to? Government Code Section 9147.7 defines the term “eligible agency.” It does not include an agency that is constitutionally created or an agency related to postsecondary education.

What is the purpose of the Joint Sunset Review Committee (JSRC)? It was created to identify and eliminate waste, duplication, and inefficiency in government agencies. The purpose of this joint committee is to conduct a comprehensive analysis on a periodic basis of every eligible agency to determine if the agency is still necessary and cost effective.

What happens prior to an agency being repealed? Each eligible agency scheduled for repeal must submit to the joint committee, on or before December 1 before the year it is set to be repealed, a complete agency report covering the entire period since last reviewed.

What is included in the complete agency report? It must include the following, among other provisions: (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) 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 failures. (5) Recommendations of the agency for changes or reorganization in order to better fulfill its purpose.

What must the joint committee do? It is required to take public testimony and evaluate the eligible agency before the date the agency is scheduled to be repealed.

What can the Legislature do? The eligible agency is eliminated in law, unless the Legislature enacts a law to extend, consolidate, or reorganize the eligible agency. Or, the joint committee may recommend that the Legislature extend the statutory sunset date for no more than one year to allow the joint committee more time to evaluate the eligible agency.

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