BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 496
          Author:   Wright (D)
          Amended:  9/6/13
          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

           SENATE FLOOR  :  34-0, 5/13/13 (Consent)  
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,  
            Galgiani, Hancock, Hernandez, Hill, Hueso, Huff, Jackson,  
            Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen, Padilla,  
            Pavley, Roth, Steinberg, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Calderon, Gaines, Price, Walters, Vacancy,  
            Vacancy

           ASSEMBLY FLOOR  :  76-0, 9/10/13 - See last page for vote


           SUBJECT  :    California Whistleblower Protection Act:   
          administrative procedure

           SOURCE  :     Author


           DIGEST  :    This bill makes several technical and substantive  
          changes to the whistleblower protection statutes for public  
          employees and clarifies procedural rules for the State Personnel  
          Board's (SPB) administrative hearings and litigation over  
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          procedural questions regarding the right to sue.

           Assembly Amendments  delete provisions related to the following:   
          1) an informal hearing following a complaint; 2) authorization  
          of an executive officer to consolidate a complaint with a  
          related appeal; 3) authorization of an aggrieved party to file a  
          petition for writ of mandate for review of the decision; 4)  
          authorization of the complainant to file a civil action for  
          damages; 5) provisions that the executive officer's findings of  
          the informal hearing are not binding; 6) specifications that the  
          filing of a civil action by a complainant does not preclude the  
          request for an evidentiary hearing as specified; and instead  
          modify these requirements to require the SPB to render its  
          decision on the consolidated matter within six months of the  
          date of the order of consolidation, as specified; and specify  
          this bill incorporates additional changes to the Labor Code  
          proposed by SB 666 (Steinberg) and AB 263 (Monning) that would  
          become operative if this bill and either SB 666 or AB 263, or  
          both, are enacted and this bill is enacted last.

           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 or her official  
            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  

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            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.Requires the SPB to render decisions on consolidated  
            complaints under the Whistleblower Protection Act (WPA) within  
            a reasonable time after the conclusion of the hearing or  
            investigation, except that the period does not exceed six  
            months from the date of the order of consolidation, unless  
            extended by the SPB for a period of not more than 45  
            additional days from the expiration of the six-month period.

          2.Clarifies existing law that an action for damages pursuant to  
            the WPA is exempt from the presentation requirements of the  
            Government Claims Act.

          3.Prohibits an employer from retaliating against an employee  
            because the employer believes that the employee disclosed or  
            may disclose information to a government or law enforcement  
            agency, or to a person with authority over the employee or  
            another employee who has the authority to investigate,  
            discover, or correct the violation or noncompliance, if the  
            employee has reasonable cause to believe that the information  
            discloses a violation of state or federal statute, or a  
            violation of or noncompliance with a local, state, or federal  
            rule or regulation, regardless of whether disclosing the  
            information is part of the employee's job duties. 

          4.Prohibits an employer from retaliating against an employee for  
            disclosing, or refusing to participate in an activity that  
            would result in, a violation of or noncompliance with a local  
            rule or regulation.

          5.Incorporates additional changes to the Labor Code proposed by  
            SB 666 (Steinberg) and AB 263 (Monning) that would become  
            operative if this bill and either SB 666 or AB 263, or both,  
            are enacted and this bill is enacted last.

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           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:  Yes

          According to the Assembly Appropriations Committee:

           Minor absorbable costs to the SPB and the Department of Human  
            Resources, as the bill is generally consistent with current  
            practice and existing caseloads are not significant. According  
            to the SPB's most recent Whistleblower Complaint Report, for  
            2011, 62 whistleblower retaliation complaints were filed.  Of  
            those, 12 were accepted, of which nine were dismissed and  
            three were consolidated with a pending evidentiary hearing.

           Any costs to local governments are not state reimbursable.

           SUPPORT  :   (Verified  9/10/13)

          California Conference Board of the Amalgamated Transit Union
          California Conference of Machinists
          California Employment Lawyers Association
          California Teamsters Public Affairs Council
          Engineers and Scientists of California
          International Longshore & Warehouse Union
          Professional & Technical Engineers, Local 21
          United Food and Commercial Workers Union, Western States Council  

          Union of American Physicians and Dentists
          UNITE HERE
          Utility Workers Union of America, Local 132

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           ARGUMENTS IN SUPPORT  :    This bill clarifies rights and  
          procedures under the California Whistleblower Protection Act and  
          related laws.  Supporters argue that clarification will improve  
          protections and give greater guidance to parties, administrative  
          agencies and the courts.  Although as amended the bill no longer  
          codifies the State Board of Chiropractic Examiners v. Superior  
          Court (Arbuckle) 2009 45 Cal. 4th 963.case, neither does it  
          disturb the court's holding.

          The bill further clarifies that notice of WPA claims is  
          accomplished by filing with the SPB, obviating the need for  
          additional presentment under the Government Claims Act,  
          consistently with existing law.

          The bill makes prudent changes to the corresponding  
          anti-retaliation provisions of the Labor Code so that complaints  
          about alleged violations of local law are covered, as well as  
          internal complaints and perceived or anticipatory retaliation.   
          Consistently with existing law, these claims are not subject to  
          administrative exhaustion.


           ASSEMBLY FLOOR  :  76-0, 9/10/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dahle, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Beth  
            Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray,  
            Grove, Hagman, Hall, Harkey, Roger Hernández, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel  
            Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone,  
            Ting, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams,  
            Yamada, John A. Pérez
          NO VOTE RECORDED:  Donnelly, Mansoor, Vacancy, Vacancy


          JL:nld  9/11/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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