BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 769


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          GOVERNOR'S VETO


          AB  
          769 (Jones-Sawyer)


          As Enrolled  August 30, 2016


          2/3 vote


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          |ASSEMBLY:  |58-21 |(June 2, 2015) |SENATE: |25-11 |(August 18,      |
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          |ASSEMBLY:  |55-22 |(August 23,    |        |      |                 |
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          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  








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          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  








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          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  








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          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













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