BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1566


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       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  










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            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  










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       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


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       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