BILL ANALYSIS Ó AB 769 Page 1 GOVERNOR'S VETO AB 769 (Jones-Sawyer) As Enrolled August 30, 2016 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |58-21 |(June 2, 2015) |SENATE: |25-11 |(August 18, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |55-22 |(August 23, | | | | | | |2016) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: P.E.,R., & S.S. SUMMARY: Requires that any adverse action taken against a state employee for any cause for discipline, other than for fraud, embezzlement, or the falsification of records, or the unauthorized accessing or disclosure of confidential tax AB 769 Page 2 information be served, and the investigation completed, within one year after the cause of discipline arose. The Senate amendments add the unauthorized accessing or disclosure of confidential tax information to the list of actions that an adverse action could be based on that are excluded from the one year requirement imposed by this bill. EXISTING LAW: 1)Authorizes an appointing power to take adverse action against a state employee for specified causes, and establishes administrative procedures for review of an adverse action by the State Personnel Board. 2)Requires notice of any adverse action against a state employee for any cause for discipline based on any civil service law be served within three years of the cause for discipline. 3)Specifies that in cases of fraud, embezzlement, or falsification of records, notice must be served within three years after the discovery of the activity. FISCAL EFFECT: According to the Senate Appropriations Committee, this bill would result in unknown costs, likely in the hundreds of thousands of dollars annually, for state departments to shorten timeframes related to adverse actions. To the extent that the backlog is reduced, out-year costs could be reduced. COMMENTS: According to the author, "Currently, investigations against employees can be extended up to three years after AB 769 Page 3 discovery of an incident. This lengthy timeframe causes a delay in action against improper or illegal behavior by employees, disruption of the workplace, and unnecessary costs from administrative leave or back pay. Moreover, as time passes, the integrity of the investigation decreases as witnesses' memories fade, evidence is lost and many of the individuals involved move on to new careers and/or locations. Such circumstances ultimately costs the state thousands of dollars in litigation and lost productivity each year. By the time any investigation has been borne out, the damage has already been done. Therefore, it is vital that California streamline this process to ensure investigations happen as promptly and thoroughly as possible." The author concludes, "This bill streamlines the process for investigating employees accused of wrongdoing to ensure it is conducted as efficiently and timely as possible. This measure does not change the current statute of limitations for cases of fraud, embezzlement or falsification of records." This bill is similar to AB 811 (Salas) of the current legislative session. AB 811 requires that any adverse action taken against a state employee for any cause for discipline be served within one year after the discovery of the cause for discipline first arose. This bill is also similar to the introduced version of AB 1783 (Jones-Sawyer), Chapter 724, Statutes of 2014, which passed out of the Assembly Public Employees, Retirement, and Social Security Committee on a five to one vote. The bill was later amended to delete these provisions and to instead continue to exempt certain public transit workers from the requirements of the Public Employees' Pension Reform Act. Similar provisions were also contained in numerous bills that AB 769 Page 4 attempted to implement a bill of rights for public employees. Those bills include: AB 872 (Dickinson) of 2013-14, AB 1655 (Dickinson) of 2012, AB 920 (Portantino) of 2011-12, and AB 1744 (Portantino) of 2010. All of these bills were held in the Assembly Appropriations Committee. GOVERNOR'S VETO MESSAGE: This bill reduces the time frame in which the state can take an adverse personnel action against an employee from three years to one year, except in cases of fraud, embezzlement, the falsification of records or the unauthorized access or disclosure of confidential tax information. I am unwilling to reduce longstanding civil service adverse action timeframes because it may take state agencies longer than a year to investigate and serve adverse actions in complex cases involving employee misconduct or unsatisfactory work performance. Further, this bill hinders the progressive discipline process which is intended to give employees a reasonable amount of time to correct problems at an early stage. As such, this bill makes it more difficult for the state to manage and ensure the integrity of its workforce. Analysis Prepared by: Karon Green / P.E.,R., & S.S. / (916) 319-3957 FN: 0005115 AB 769 Page 5