BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 496
          Author:   Wright (D)
          Amended:  4/15/13
          Vote:     21

           
           SENATE PUBLIC EMPLOYMENT & RETIREMENT COMM.  :  5-0, 4/22/13
          AYES:  Beall, Walters, Block, Gaines, Yee

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    California Whistleblower Protection Act:   
          administrative
                      procedure

           SOURCE  :     Author


           DIGEST  :    This bill codifies a California Supreme Court  
          decision governing the State Personnel Board's (SPB)  
          administrative procedures for appeals from state employee  
          whistleblowers alleging retaliation.  This bill also clarifies  
          that a whistleblower's civil action does not preclude a parallel  
          administrative appeal by the alleged retaliating manager.

           ANALYSIS  :    Existing law:

          1.Protects the right of state employees to report improper  
            government activity, as defined, without fear of retribution  
            through the California Whistleblower Protection Act (Act).

          2.Prohibits any state employee from using his/her official  
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            authority for the purposes of interfering with another's right  
            to report improper government activity, as defined.

          3.Requires a whistleblower who alleges retaliation for reporting  
            improper governmental activity to file a written complaint, as  
            specified.

          4.Requires SPB to initiate an investigation or hearing within 10  
            days of receiving the complaint and requires SPB's Executive  
            Officer to complete findings of the investigation or hearing  
            within 60 working days thereafter (i.e., 70 days total).

          5.Permits the Executive Officer to consolidate the retaliation  
            claim with other related claims by the whistleblower, in which  
            case, the 70-day time frame is not applicable.

          6.Subjects any person found to have intentionally engaged in  
            retaliation prohibited by the Act to penalties, as defined.

          7.Provides a whistleblower alleging retaliation a right to bring  
            a separate civil action independent of the SPB administrative  
            process, as defined.

          8.Permits a state employee who is found by the SPB to have  
            illegally retaliated against a whistleblower, to request a  
            hearing before the SPB regarding the findings.

          This bill:

          1.Clarifies that there are two different administrative hearings  
            contemplated by the Act:  an initial informal or preliminary  
            hearing, and an evidentiary hearing.  

          2.Removes ambiguity about when and whether the whistleblower has  
            a right to seek an independent civil action against alleged  
            retaliation. 

          3.Provides that a civil action filed by the whistleblower does  
            not preclude an accused manager from requesting an evidentiary  
            hearing, as specified.

          4.Clarifies that SPB's findings from the preliminary hearing or  
            investigation are not binding on an evidentiary hearing  
            whether the hearing is requested by the complainant, by the  

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            accused manager, or results from the SPB's referral of the  
            complaint to an evidentiary hearing.

          5.Specifies that the SPB may consolidate different complaints or  
            appeals by the same complainant arising from the same set of  
            facts and authorized by different statutory rights or causes  
            of action. 

          6.Provides that for the purposes of appealing a decision in an  
            administrative evidentiary hearing separate and apart from a  
            whistleblower's civil action, the SPB shall issue a decision  
            which any party, if aggrieved, can appeal by filing a petition  
            for writ of mandate with the Superior Court.  

           Background
           
          This bill seeks to codify and clarify the California Supreme  
          Court's holding in Arbuckle  45 Cal. 4th 963 and is consistent  
          with the Act's intent, as cited by the Court, that the Act  
          creates two parallel processes.  

           Prior Legislation
           
          SB 1505 (Yee), 2008, would have extended the protections of the  
          Act to former state employees and added reasonable attorney's  
          fees to the relief one may recover under the Act.  This bill was  
          vetoed by Governor Schwarzenegger. 

          SB 1267 (Yee), 2008, would have extended  the Act's provisions  
          to specified former employees, eliminated its "notice of  
          findings" process, limited the SPB's administrative hearing  
          process in these cases, and provided whistleblowers with an  
          immediate right-to-sue letter option. This bill died in the  
          Senate Appropriations Committee. 

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

           SUPPORT  :   (Verified  5/8/13)

          Union of American Physicians and Dentists (UAPD)/AFSCME Local  
          206

           ARGUMENTS IN SUPPORT  :    The author's office has indicated that  

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          this bill is necessary to codify the California Supreme Court's  
          holding in  Arbuckle  and to eliminate confusion regarding a  
          whistleblower's right to have the procedural guarantees and  
          independent factfinding of the superior court.  Furthermore, the  
          author's office states that this bill is necessary to strengthen  
          the Act and ensure that whistleblowers do not become "trapped in  
          a bureaucratic limbo" of the administrative process which would  
          create disincentives for public employees to report waste,  
          fraud, and abuse by public agencies.

          JL:nl  5/8/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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