BILL ANALYSIS Ó AB 1566 Page 1 Date of Hearing: April 13, 2016 ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW Cristina Garcia, Chair AB 1566 (Wilk) - As Amended March 1, 2016 SUBJECT: Reports SUMMARY: Requires written reports submitted to the Legislature or executive body, by any state agency or department, to include a signed statement by the head of that agency or department declaring that the factual contents of the report are true, accurate and complete to the best of his/her knowledge. Specifically, this bill: 1)Stipulates that the provisions of this bill apply to the head of every state agency or department, including, but not limited to, elected state officials, and any state official whose duties are prescribed by the California Constitution. 2)Specifies the applicable executive officers for the Franchise Tax Board and the State Board of Equalization. 3)Defines "written report" to mean the following: a) A document required by statute to be prepared and submitted to the Legislature or any state legislative or executive body; or, b) A document, summary, or statement requested by a Member of AB 1566 Page 2 the Legislature. 4)Exempts forecasts, predictions, recommendations or opinions from this bill. 5)Specifies that any person who declares as true any material matter that he/she knows to be false shall be liable for a civil penalty not to exceed $20,000 and provides that the penalty shall be exclusively assessed and recovered in a civil action by the Attorney General. EXISTING LAW provides, but is not limited to, the following: 1)Every willful omission to perform any duty enjoined by law upon any public officer, or person holding any public trust or employment, where no special provision is made for the punishment of such delinquency, is punishable as a misdemeanor (Government Code Section 1222). 2)Every person who, while taking and subscribing to the oath or affirmation required by this chapter, states as true any material matter which he or she knows to be false, is guilty of perjury, and is punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for two, three, or four years (Government Code Section 1368). FISCAL EFFECT: Unknown COMMENTS: According to the author, this bill seeks to improve the accuracy and truthfulness in reports submitted to the Legislature. The most recent examples where questions concerning accuracy have been raised include the bay bridge and high speed rail projects. The author's approach to improving the accuracy of reports is to create a civil litigation process whereby heads of departments and agencies AB 1566 Page 3 that submit reports to the Legislature are personally responsible for the truthfulness and accuracy of those reports. The author states, "There is a systemic problem in Sacramento of misrepresenting facts or outright lies by heads of agencies that are ultimately hurting Californian taxpayers." This bill allows the Attorney General to pursue a civil fine of up to $20,000 against any department or agency head that knowingly submits false information in a report to the Legislature. This bill is a reintroduction of SB 1337 (DeSaulnier) that was introduced in 2014 and subsequently vetoed by the Governor. Rather than contain comments on the nature of the problem of inaccuracy of reports to the Legislature, the Governor's veto message focused on the consequence of implementing the solution proposed in the bill. Specifically, the Governor's veto message states: "Contrary to its stated purpose, this bill creates new bureaucratic verification requirements that would likely impede communication between the Executive Branch and the Legislature." It is reasonable to assume that unless every report to the Legislature undergoes rigorous bureaucratic verification no department or agency head is likely to sign a statement attesting to its complete accuracy and truthfulness. This would lead to fewer reports submitted to the Legislature and less information available for legislative review. REGISTERED SUPPORT / OPPOSITION: Support AB 1566 Page 4 Citizens for California High Speed Rail Accountability Howard Jarvis Taxpayers Association Rick Farinelli, District 3 Supervisor, County of Madera Opposition None on file Analysis Prepared by:William Herms / A. & A.R. / (916) 319-3600