BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1505|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1505
          Author:   Yee (D)
          Amended:  8/5/08
          Vote:     21

           
          PRIOR VOTES NOT RELEVANT
           
          ASSEMBLY FLOOR  :  65-13, 8/11/08 - See last page for vote


           SUBJECT  :    Whistleblower protection

           SOURCE  :     Author


           DIGEST :    This bill extends the protections of the  
          California Whistleblower Protection Act to former state  
          employees, and adds reasonable attorneys fees to the relief  
          one may recover under the Act.

           Assembly Amendments  delete the prior content of the bill,  
          which dealt with the Board of Behavioral Sciences, and  
          added the current language.

           ANALYSIS  :    

          Existing law:

          1.Provides, under the California Whistleblower Protection  
            Act (Act), a process by which a state employee may file a  
            written complaint alleging adverse employment actions  
            such as retaliation, reprisal threats, or coercion, with  
                                                           CONTINUED





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            a supervisor or manager and with the State Personnel  
            Board (Board).  The Act requires the Board to initiate an  
            investigation or a proceeding within 10 working days of  
            submission of a written complaint, and to complete  
            findings of the investigation or hearing within 60  
            working days thereafter.

          2.Makes a person who intentionally engages in acts of  
            reprisal or retaliation in violation of the Act subject  
            to a fine of up to $10,000 and up to a year in county  
            jail, and if that person is a civil service employee,  
            subjects that person to discipline by adverse action.  A  
            person injured by such acts may bring an action for  
            damages only after filing a complaint with the Board and  
            the Board issued, or failed to issue, findings of its  
            hearings or investigation.

          3.Provides that if the executive officer of the Board finds  
            that the supervisor, manager retaliated against the  
            complainant for engaging in protected whistleblower  
            activities, the supervisor or manager may request a  
            hearing before the Board regarding the findings of the  
            executive officer.  Provides that the executive officer  
            shall complete findings of the hearing or investigation  
            within 60 working days.

          4.Provides the Board may order any appropriate relief,  
            including, but not limited to, reinstatement, backpay,  
            restoration of lost service credit, if appropriate,  
            compensatory damages for violations of the Act.

          5.Provides that whenever the Board determines that a  
            manager, supervisor or employee, who is not named a party  
            to the retaliation complaint, may have engaged in any act  
            prohibited by the Act, and notifies the manager's,  
            supervisor's or employee's appointing power of that fact,  
            within four months, the appointing power shall either  
            serve notice of the adverse action or set forth its  
            reasons for not taking adverse action within 60 days  
            after receiving the notification.

          This bill:

          1.Makes findings and declarations that: 







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             A.   It is the public policy of this state to protect  
               and safeguard the right to report waste, fraud, abuse  
               of authority without fear of retribution; and, 

             B.   Practice of retaliating against others because of  
               their protected disclosure of improper governmental  
               activities is against public policy. 

          2.Adds former state employees who would have been covered  
            by the Act during their employment to the list of  
            employees who are covered by the Act. 

          3.Adds reasonable attorney's fees and costs for successful  
            prosecution of a retaliation complaint before the State  
            Personnel Board (SPB) to the relief that SPB may order  
            for violation of the Act. 

          4.Extends the time period by which an appointing power  
            shall serve notice of an adverse action to a manager,  
            supervisor or employee who violated the Act from 60 days  
            to four months. 

          5.Codifies existing regulations which provide that in all  
            whistleblower cases, the administrative law judge shall  
            make any orders that may appear just in order to prevent  
            any named party from being embarrassed, delayed, or put  
            to unnecessary expense, and may make other orders as the  
            interests of justice may require during the  
            administrative hearing. 

          6.Makes technical and clarifying amendments. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Assembly Appropriations Committee:

          1.The net impact of authorizing the SPB to award attorney's  
            fees should be potentially moderate savings in state  
            litigation costs.  This is because, according to SPB  
            staff, if SPB finds that a plaintiff was a victim of  
            retaliatory action under the Act, that person typically  
            will proceed to file an action in court, where upon  







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            receiving a successful outcome (as is typical following  
            SPB's finding), the plaintiff is awarded attorney's fees  
            and may receive punitive damages.  With SPB specifically  
            authorized to award attorney's fees under this bill, it  
            is less likely that a successful plaintiff will proceed  
            to file an action with the court. 

          2.Moderate administrative costs savings to SPB from  
            eliminating the notice of findings process and  
            consolidating the administrative proceeding into one  
            hearing limited to 10 days.  SPB indicates that about 50  
            to 60 complaints are filed under the Act each year.

           SUPPORT  :   (Verified  8/13/08)

          American Federation of State, County and Municipal  
          Employees
          California Animal Association
          California Association of Professional Scientists
          California Faculty Association
          California Psychiatric Association
          California State Employees Association
          Californians Aware
          Citizens Commission on Human Rights
          Government Accountability Project 
          SEIU Local 1000
          State Personnel Board

           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          while California always has had one of the nation's more  
          modern state whistleblower statutes, critical flaws have  
          blocked it from achieving its promise of justice for  
          employees who "commit the truth" in challenges to abuses of  
          power that betray the public trust. Supporters, including  
          the American Federation of State, County and Municipal  
          Employees, state that this bill is necessary to provide  
          more protections to former employees and ensure timely  
          review of complaints filed under the Act. 


           ASSEMBLY FLOOR  :  
          AYES:  Adams, Aghazarian, Arambula, Beall, Benoit, Berg,  
            Berryhill, Brownley, Caballero, Charles Calderon, Carter,  
            Coto, Davis, De La Torre, De Leon, DeSaulnier, DeVore,  







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            Duvall, Dymally, Eng, Evans, Feuer, Fuentes, Fuller,  
            Furutani, Galgiani, Garcia, Garrick, Hancock, Hayashi,  
            Hernandez, Horton, Houston, Huffman, Jeffries, Jones,  
            Karnette, Krekorian, Laird, Leno, Levine, Lieber, Lieu,  
            Ma, Mendoza, Mullin, Nava, Niello, Nunez, Parra, Plescia,  
            Portantino, Price, Ruskin, Salas, Saldana, Smyth,  
            Solorio, Spitzer, Strickland, Swanson, Torrico, Tran,  
            Wolk, Bass
          NOES:  Anderson, Blakeslee, Cook, Emmerson, Gaines, Huff,  
            Keene, La Malfa, Maze, Nakanishi, Silva, Villines,  
            Walters
          NO VOTE RECORDED:  Sharon Runner, Soto


          JJA:nl  8/13/08   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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