BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 921 (Lieu) Hearing Date: 8/25/2011 Amended: 8/17/2011 Consultant: Maureen Ortiz Policy Vote: VA:7-0 Jud: 4-0 _________________________________________________________________ ____ BILL SUMMARY: SB 921, an urgency measure, requires the Governor to appoint an Inspector General who will oversee, but operate independently from, the Military Department. _________________________________________________________________ ____ Fiscal Impact (in thousands) Major Provisions 2011-12 2012-13 2013-14 Fund Inspector General position --------potentially minor--------- General _________________________________________________________________ ____ STAFF COMMENTS: SUSPENSE FILE. . SB 921 requires the Governor to appoint the inspector general, subject to Senate confirmation. The bill requires the funding for the position to come from the existing budget of the Military Department, and for the department to provide the office space and support personnel. The Military Department indicates costs of $200,000 for the Inspector General (IG), $139,000 for a Captain, and $65,000 for one office technician - each including salary and benefits; and an additional $59,000 annually for travel, training, and other administrative costs. According to the author, the intent of SB 921 is not to create a second IG position, but that the Inspector General position which already exists at the Military Department will be used, only the position will be appointed by and report to the Governor, thereby changing the existing chain-of-command. The duties of the Inspector General (IG) will include establishing a toll-free public telephone number to receive complaints and allegations. The number must be posted in clear view at every California National Guard armory, flight facility, airfield or installation. The IG will be authorized to investigate any of the following: SB 921 (Lieu) Page 1 a) Complaints that the Adjutant General or the Assistant Adjutant General has engaged in discrimination or retaliation for whistleblowing, b) Allegations of misconduct by the Adjutant General or the Assistant Adjutant General, c) Allegations of misconduct by any member of the California National Guard. Any investigation conducted at the request of a member of the California Legislature, will be followed-up with a report of his or her findings of that investigation. SB 921 provides that any investigation requests made by the Governor, a member of the Legislature, the Adjutant General, or any member of the public is not a public record and will not be subject to disclosure under the California Public Records Act, and the requestor's name will remain confidential. The bill also requires disciplinary action be taken against any employee who retaliates against a person who makes a complaint or allegation of wrongdoing. All California State Military Department State Civil Service (SCS) employees and State Active Duty (SAD) and State Military Reserve (SMR) personnel have the right to present complaints or requests for assistance to the state Inspector General about possible regulatory or procedural violations concerning unresolved personnel actions. Currently, the IG of the Military Department reports directly to the Adjutant General (AG). Consequently, any complaints of wrongdoing on the part of the AG are ultimately submitted to the AG. The California Whistleblower Protection Act provides that state employees should be free to report waste, fraud, abuse of authority, violation of law, or threat to public health without fear of retribution. Additionally, existing law (Gov. Code Section 8547.5(b)) authorizes the State Auditor to investigate information received that any employee or state agency has engaged in an improper governmental activity. SB 921 exempts from disclosure under the California Public Records Act, any complaints and allegations regarding SB 921 (Lieu) Page 2 misconduct, discrimination and retaliation made by service members against the Adjutant General or Assistant Adjutant General and allegations of misconduct by any member of the California National Guard. This bill is in response to recent media investigations exposing financial and management misconduct involving the Adjutant General. Among other allegations, on April 23, 2011, the Sacramento Bee reported that Major General William H. Wade II, Adjutant General until 2010, collected dual pay from the state and federal government for the same days of work. SB 921 further provides that in addition to all other causes of action, penalties, or other remedies provided by law, any state officer or employee who intentionally engages in acts of reprisal, retaliation, threats, or coercion against an employee for having disclosed a complaint or allegation shall be liable in an action for damages brought against him or her by the injured party. If the offending party is proven to be malicious, the court may award punitive damages. This bill is similar to AB 2620 (Umberg) which was held on this committee's Suspense file in 2006, and to AB 1445 (Umberg) held on the Assembly Appropriations Committee Suspense file in 2005.