BILL ANALYSIS                                                                                                                                                                                                    �



                                                             AB 418
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          Date of Hearing:   April 9, 2013

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                 AB 418 (Mullin) - As Introduced:  February 15, 2013

                    PROPOSED CONSENT (As Proposed to be Amended)
           
          SUBJECT  :  CALIFORNIA WHISTLEBLOWER PROTECTION ACT: INTERNET  
          POSTING

           KEY ISSUE  :  SHOULD CALIFORNIANS BE ADVISED OF THEIR RIGHTS TO  
          DISCLOSE IMPROPER GOVERNMENTAL ACTIVITIES UNDER THE CALIFORNIA  
          WHISTLEBLOWER PROTECTION ACT BY REQUIRING STATE AGENCIES TO POST  
          A GRAPHICAL LINK TO THE STATE AUDITOR'S INTERNET WEB PAGE? 

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.  
           

                                      SYNOPSIS
                                          
          This non-controversial but important bill seeks to advise the  
          public of their rights to disclose improper governmental  
          activities under the California Whistleblower Protection Act  
          ("Act").  The Act authorizes the State Auditor to receive and  
          investigate complaints of alleged improper governmental  
          activities.  The author states that existing law only requires  
          state employees to be provided notice of their rights under the  
          Act, by requiring state agencies generally to post notices.   
          However, "the public is not made aware of the existence of the  
          [Act] through its most visited state Internet Web sites."  This  
          bill would require state agencies simply to post a graphical  
          link on the homepage of its Internet Web site to the State  
          Auditor's Internet Web page that contains information on how to  
          file a complaint under the Act.  The bill would thus help to  
          ensure that the public has the information that they need in  
          order to take advantage of this important whistleblower  
          protection.  Because there is reportedly currently only a  
          regular outreach program to remind state employees of their  
          rights under the Act, this proposal would appear to be a useful  
          and economic means of filling the gap with no substantial costs  
          involved.  There is no known opposition.  

           SUMMARY  :  Seeks to advise the public and state employees of  
          their rights to disclose improper governmental activities under  








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          the California Whistleblower Protection Act (Act).   
          Specifically,  this bill  : 

          1)Requires a state agency to post a graphical link on the  
            homepage of its Internet Web site to the State Auditor's  
            Internet Web page that contains information on how to file a  
            complaint pursuant to the Act.

          2)Requires the graphical link to include the phone number that  
            the public and a state employee may use to make a complaint  
            pursuant to the Act.  

           EXISTING LAW  : 

          1)Provides that state employees or persons, as defined, may  
            disclose improper governmental activity, as defined, by a  
            state agency or employee.  (Government Code Section 8547 et  
            seq.  All further statutory references are to this code unless  
            otherwise noted.)  

          2)Permits the State Auditor to conduct an investigative audit  
            upon receiving specific information that any state employee or  
            state agency has engaged in improper governmental activity, as  
            defined.  (Section 8547.5.)  

          3)Requires the State Auditor to prepare for state employees a  
            written explanation of the California Whistleblower Protection  
            Act.  The explanation shall include, but not be limited to the  
            following information:

             a)   Instructions on how to contact the State Auditor by mail  
               or telephone.

             b)   A general overview of improper governmental activities  
               that may be reported to the State Auditor.

             c)   Examples of the two most commonly reported governmental  
               activities that the State Auditor does not have authority  
               to investigate.

             d)   An explanation of whistleblower protection available to  
               state employees who report improper governmental activities  
               to the State Auditor.

             e)   The requirement that the State Auditor protect the  








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               anonymity of a person who reports improper governmental  
               activity to the State Auditor.

             f)   The State Auditor's authority in connection with  
               violations of law discovered during an investigation of  
               improper governmental activities.  (Section 8548.1.)
            
          4)Requires the State Auditor to prepare for distribution to each  
            state agency in an electronic format a notice containing the  
            information in the written explanation, described above and  
            requires each state agency to print and post the notice at its  
            state office or offices in a location or locations where  
            employee notices are maintained.  (Section 8548.2.)  

          5)Requires a state agency to disclose the opportunity to submit  
            complaints to the State Auditor under the California  
            Whistleblower Protection Act whenever the state agency posts  
            or advertises the opportunity to submit whistleblower  
            complaints through a program administered by the agency.   
            (Section 8548.2.)

          6)Requires every state agency to send the information contained  
            in the notice by electronic mail to its employees who have  
            authorized access to electronic mail from the agency.   
            (Section 8548.3.)

          7)Defines "state agency" as every state office, officer,  
            department, division, bureau, board, and commission, including  
            the California State University, the University of California,  
            the Supreme Court, the Court of Appeal, the superior courts,  
            and the Administrative Office of the Courts.  (Section 8548.)   


           COMMENTS  :  This non-controversial but important bill seeks to  
          advise the public as well as state employees of their rights to  
          disclose improper governmental activities under the California  
          Whistleblower Protection Act.  According to the author, although  
          existing law requires state offices to post notices regarding  
          the protections afforded state employees by the California  
          Whistleblower Protection Act, "the public is not made aware of  
          the existence of the [California] Whistleblower Protection Act  
          through its most visited state Internet Web sites."

           Background.   The California Whistleblower Protection Act (Act)  
          authorizes the State Auditor to receive and investigate  








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          complaints of alleged improper governmental activities, and also  
          protects every state employee who files a complaint from  
          suffering any retaliation by his or her state employer for  
          having made the complaint.  (Government Code Section 8547 et  
          seq.)  State employees, internal auditors of state agencies, and  
          any persons obtaining services from the State, including  
          contractors who do business with the state and job applicants,  
          may file a complaint under the Act with the State Auditor.   
          According to the State Auditor, to enable state employees and  
          the public to report suspected improper governmental activities,  
          the state auditor maintains a toll-free Whistleblower Hotline.   
          The state auditor also accepts reports of improper governmental  
          activities by mail and over the Internet. 

           Promotes Effective Outreach and Education of Whistleblower  
          Rights  .  Unless people are aware of what types of governmental  
          activities are improper, who to report them to, and the right to  
          be free from retaliation for protected disclosure, existing  
          whistleblower protections are not likely to be as effective in  
          rooting out governmental fraud, corruption or inefficiencies by  
          a state employee.  This bill would thus appear to help to ensure  
          that the public has the information that they need.  The bill  
          simply requires that state agencies post a graphical link, which  
          should include a phone number, on the homepage of its Internet  
          Web site to the State Auditor's Internet Web page that contains  
          information on how to file a complaint under the Act.
           
           Currently, the State Auditor, in cooperation with the State  
          Personnel Board, is required to prepare an explanation of  
          whistleblower protections to be posted by each state agency in  
          locations where employee notices are maintained, and to be sent  
          annually by each agency via e-mail.  Because there is reportedly  
          only a regular outreach program to remind state employees of  
          their rights under the Act, this proposal would appear to be a  
          useful and economic means of filling the gap.  

           Potential for Modest Increase In Volume of Inquires To and  
          Complaints Filed With the State Auditor  .   By ensuring that the  
          public will have greater access to full and accurate  
          information, the State Auditor will be apprised of and have an  
          opportunity to investigate more improper governmental activity.   
          According to its annual report, the State Auditor reports that  
          from April 1, 2011, through June 30, 2012, the state auditor  
          received 7,238 calls or inquiries.  Of these, 5,781 came through  
          the hotline, 891 through the mail, 559 through the state  








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          auditor's Web site, and seven through individuals who visited  
          the State Auditor's office.  (California State Auditor,  
          Investigations of Improper Activities by State Agencies and  
          Employees Dec. 2012, available at:  
           http://www.bsa.ca.gov/pdfs/reports/I2012-1.pdf  .)  Thus it would  
          appear this helpful consumer protection would have no  
          substantial costs involved through its modest requirement that  
          state agencies simply post a graphical link on the homepage of  
          their Internet Web sites to the State Auditor's Internet Web  
          page that contains information on how to file a complaint under  
          the Act.      

           Proposed Author's Amendment  :  In order to better clarify the  
          intent of the measure, and to assure conformity to the current  
          statutory scheme, the author prudently proposes to make the  
          following amendments:

               On page 1, line 1, strike "8547.14" and insert "8548.6"

               On page 2, line 1, strike "8547.14" and insert "8548.6"

               On page 2, line 4, strike "pursuant to this article" and  
          insert "to the State Auditor under the 
               California Whistleblower Protection Act (Article 3  
          (commencing with Section 8547))"

               On page 2, line 6, strike "pursuant to this article" and  
          insert "to the State Auditor under the 
               California Whistleblower Protection Act (Article 3  
          (commencing with Section 8547))"

           Prior Related Legislation  :  SB 413 (Speier) Chap. 883 (Stats.  
          2001) required every state agency to print and post the notice,  
          as defined, at state offices and send it by electronic mail to  
          state employees of the agency annually.  

          AB 1102 (Lara) Chap. 328 (Stats. 2011) required any agency that  
          posts or advertises the opportunity to submit whistleblower  
          complaints through a program administered by the agency, to also  
          disclose the opportunity to submit complaints to the State  
          Auditor under the California Whistleblower Protection Act.  

           REGISTERED SUPPORT/OPPOSITION:

          Support








                                                            AB 418
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           None on file
           
          Opposition

           None on file
           
          Analysis Prepared by  :  Drew Liebert and Rebecca Kramer / JUD. /  
          (916) 319-2334