BILL ANALYSIS AB 124 Page 1 Date of Hearing: March 16, 2005 ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL SECURITY Alberto Torrico, Chair AB 124 (Dymally) - As Introduced: January 13, 2005 SUBJECT: Civil service: equal opportunity programs. SUMMARY : Clarifies current Equal Employment Opportunity requirements and clearly expresses the state's equal employment opportunity and non-discrimination policy in statute, thereby reinforcing the importance of this policy. Specifically, this bill : 1) Substitutes the concept of "Equal Employment Opportunity" for the concepts of "affirmative action" and "goals and timetables" throughout the bill; defines equal employment opportunity as including non-discrimination, consistent with Proposition 209. 2) Eliminates all references to goals and timetables, consistent with the Connerly court decision. 3) Substitutes the phrase "racial, gender and ethnic groups" for the outdated phrase "minorities and women," consistent with Proposition 209. 4) Conforms definition of "underutilization" to existing federal law, as it pertains to the use of "relevant labor force" rather than general population or general labor force. 5) Eliminates statutory language that was used in the past to justify preferential corrective actions, and clarified that underutilization must be addressed by means consistent with Proposition 209, such as by the broad, inclusive recruitment identified in Connerly decision. 6) Clarifies the existing duties (referenced in other code sections and existing regulations) of appointing powers, notwithstanding Proposition 209, to have in place policies that insure equal employment opportunity in the workplace, including discrimination complaint and upward mobility AB 124 Page 2 procedures, as well as existing rights of employees to file appeals should department procedures fail to address equal employment opportunity concerns. 7) Clarifies that, consistent with Proposition 209 and Connerly , underutilization under an equal employment opportunity concept is addressed by the removal of non job-related barriers to equal employment opportunity rather than preference-based measures. EXISTING LAW The State Civil Service Act requires each state agency and department to establish an effective affirmative action program with specified components, and to establish goals and timetables designed to overcome any identified underutilization of minorities and women in their respective organizations. Existing law requires the State Personnel Board to conduct specified activities in this regard. Portions of these provisions have been held to be in violation of the California Constitution and the United States Constitution. FISCAL EFFECT : According to the State Personnel Board, this bill will have little fiscal impact, since most of its provisions are not new, and departments have been required to comply with them for years. If departments fully comply with EEO requirements, any perceived costs associated with this bill should be more than offset by reducing the number of discrimination complaints and lawsuits. COMMENTS : According to the sponsor (State Personnel Board), the purpose of this bill is to update state statutes to be consistent with the California Constitution as interpreted by the California courts, while clarifying that state departments still have a legal responsibility to collect statistical information on the composition of the state workforce to insure equal employment opportunity (EEO) and non-discrimination requirements in the state civil service. In 2001, the California Court of Appeal ruled that provisions in the state's affirmative action/equal employment opportunity statutes requiring the establishment of annual employment goals and timetables based on race and gender violated the California Constitution, as amended by Proposition 209, and invalidated them. This bill would repeal the invalidated statutory sections. AB 124 Page 3 With the passage of Proposition 209 in 1996, state departments became unsure as to the continuing validity of various EEO requirements in the state civil service. Many state managers have the mistaken attitude that Proposition 209 invalidated EEO, resulting in a decline in a failure of departments to comply with equal employment opportunity requirements. There have been many examples of this, including the following: Many departments have failed, in recent years, to fully develop EEO plans and to inform their employees about written procedures for filing complaints; Many departments have failed to submit the results of their annual workforce analysis and action plan to the SPB for approval by the July 1st statutory deadline; Departments have failed to comply with the statutory requirement that the EEO Office report directly to the department director and have reduced EEO staff; Some departments are using untrained EEO investigators; EEO investigations are taking far too long to meet the legal requirement of completing investigations in a timely manner; EEO investigative reports are inadequate or incomplete Departments have failed to train their departmental managers and supervisors in EEO issues; The number of discrimination complaints from state employees has increased since the passage of Proposition 209. Formal discrimination complaints filed by state employees with their department have increased from 387, reported by departments in 1995 prior to Proposition 209, to a high of 691, in 2001 after passage of Proposition 209. This is a 78.6% increase in workload and associated costs. Arguments in Support: The State Personnel Board supports this bill because it will clarify existing law, strengthening California's merit civil service system by better ensuring equal employment opportunity and non-discrimination. Arguments in Opposition According to the American Civil Rights Coalition, this bill does not differ significantly from AB 2275 which was vetoed by Governor Schwarzenegger on September 29, 2004 This legislation, while again trying to give the appearance of simply addressing AB 124 Page 4 the implementation of existing Equal Opportunity provisions, continues to perpetuate language that suggests the state workforce must be racially and ethnically statistically balanced to the population in general. For example here are two of many such clauses: Section 19791 (b) reads as proposed, "'Underutilization' means having a statistically significant, smaller percentage of persons of a group in an occupation or at a level in state agency than would reasonable be expected by the percentage representation in the relevant labor force?" Section 19791 (h) reads in part, "The statistical information shall include specific data to determine the significant underutilization of specific groups based on race, ethnicity, gender, and disability." This implies some kind of balancing that ensures the workforce in question reflects the racial/gender makeup of the surrounding community. This balancing could easily cross the almost imperceptible line into quotas or "goals" as outlawed in the Connerly v. State Personnel Board decision of 2001. REGISTERED SUPPORT / OPPOSITION : Support American Civil Liberties Union American Federation of State, County and Municipal Employees California School Employees Association California State Employees Association Service Employees International Union Opposition American Civil Rights Coalition Analysis Prepared by : Clem Meredith / P.E., R. & S.S. / (916) 319-3957