BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 124
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          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               groups" for the outdated phrase "minorities and women,"  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  








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               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.








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          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  








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          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