BILL ANALYSIS Ó AB 466 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 466 (McCarty) - As Amended March 26, 2015 ----------------------------------------------------------------- |Policy |Public Employees, |Vote:|5 - 2 | |Committee: |Retirement/Soc Sec | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill clarifies that provisions requiring state employment forms to require an applicant to disclose whether the applicant has ever entered into an agreement with the state prohibiting the applicant from seeking or accepting any subsequent employment with the state do not apply if the agreement only prohibits the applicant from seeking employment with a particular state agency and not all state employment. FISCAL EFFECT: AB 466 Page 2 Minor and absorbable costs to CalHR and state agencies to update employment forms. COMMENTS: 1)Purpose. This bill clarifies a requirement adopted in SB 1240 (Anderson), Statutes of 2014, that amended state employment forms to require an applicant to disclose whether the applicant had ever entered into an agreement with a state department prohibiting the applicant from seeking or accepting any subsequent employment with the state. SB 1240 was enacted in response to a series of disciplinary actions initiated against several employees of the Department of Transportation (CalTrans) in connection with the Bay Bridge construction. At least one former employee entered into a settlement agreement with CalTrans whereby he agreed not to seek or accept any other employment with the state. According to the author, while the intent of SB 1240 was clear, the language was unclear as to whether all applicants, including those who agreed not to seek or accept subsequent employment only with a particular department, would be required to disclose such an agreement on a subsequent application. The author contends that without AB 466, both employees and the state could be discouraged from settling dismissal appeals, leading to additional costly adjudication. 2)Dismissal Appeals. Under existing law, terminated civil service employees are entitled to appeal dismissals to the independent State Personnel Board (SPB). The SBP has the authority and discretion to sustain, revoke, or modify the terms of any employee's termination. Typically, a prehearing and settlement conference is convened to offer parties an opportunity to negotiate a settlement prior to a full hearing before SPB. According to the author, it is common for AB 466 Page 3 settlement terms to include a prohibition on the employee seeking or accepting employment with their department, and that without the ability to keep those agreements confidential, employees may be disincentivised from agreeing to them. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081