BILL ANALYSIS                                                                                                                                                                                                    






            GOVERNMENT MODERNIZATION, EFFICIENCY AND ACCOUNTABILITY

                          Senator Liz Figueroa, Chair

                           2005-2006 Regular Session


          AB 1625                                                A
          Assembly Member Klehs                                  B
          Version:  April 25, 2005
          Hearing Date: June 15, 2005                            1
                                                                 6
          Consultant:  Vincent D. Marchand                       2
                                                                 5

           SUBJECT  : State government: reports: perjury.

           SUMMARY:   Requires written reports that are submitted to  
          the Legislature by a state agency to include a signed  
          statement by the head of that agency, declaring under  
          penalty of perjury that the contents of the report are  
          true, accurate, and complete to the best of his or her  
          knowledge.

           EXISTING LAW  :
          
          1)Defines "written report," for purposes of provisions of  
            law relating to providing reports by public agencies to  
            the Legislature and the Governor, as a document that a  
            statute requires to be prepared and submitted to the  
            Legislature, the Governor, or any state legislative or  
            executive body.

          2)Contains numerous requirements for written reports to be  
            submitted to the Legislature.
           
          THIS BILL  : 

          1)Requires every written report, as defined, that is  
            required to be submitted to the Legislature by any state  
            agency, board, or commission, to include a signed  
            statement by the head of that agency, or chair of the  
            board or commission, declaring under penalty of perjury  
            that the contents of the report are true, accurate, and  
            complete to the best of his or her knowledge.
                                                                  
          (more)



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          2)Limits the above requirement only to those individuals  
            appointed by the Governor and confirmed by the Senate,  
            and prohibits this bill from being construed to apply to  
            any elected official of the state, or any official whose  
            duties are prescribed by the California Constitution.

          3)Requires the signed statement to be made by the executive  
            officer with respect to the Franchise Tax Board, and by  
            the executive director with respect to the Board of  
            Equalization.
          
           FISCAL EFFECT  : Unknown.

           COMMENTS  :
          
           1)Purpose of this bill.   According to the author, the  
            purpose of requiring reports to be signed under penalty  
            of perjury is to ensure that the Legislature and other  
            relevant agencies receive accurate and trustworthy  
            information, so that they can be effective in making  
            decisions.  In response to the financial scandals of the  
            past few years, Congress passed the Sarbanes-Oxley Act of  
            2002.  This federal law requires CEOs to sign reports to  
            company shareholders under penalty of perjury.  The  
            author states that during the Joint Legislative Audit  
            Committee hearing to review the audit on the Bay Bridge  
            project, it was found that CalTrans and other agency  
            heads had withheld information from the Legislature or  
            misrepresented certain facts, such as cost overruns and  
            evidence of project mismanagement.  According to the  
            author, this bill would ensure that agency officials are  
            held accountable when giving testimony and submitting  
            reports to the State Legislature. 

           2)Oppose unless amended.   The Board of Behavioral Sciences  
            (Board) opposes this bill, stating that the Board's chair  
            is not routinely involved in the board's ongoing  
            operations, and therefore it would not be fair to require  
            the chair to sign such reports under penalty of perjury.   
            The Board states that its executive officer is involved  
            and responsible for the board's ongoing operations and  
            would be better suited to signing such reports under  
            penalty of perjury.

          The Board has suggested an amendment that would include  




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            "executive officer" along with this bill's requirement  
            that the written report be signed under penalty of  
            perjury by the "head of that agency, or chair of the  
            board or commission," which would have the affect of  
            permitting those state agencies that have an executive  
            officer in addition to a chairperson to have the option  
            of having the report signed by either one.

           3)Double-Referred to Public Safety.   This bill has been  
            double-referred to Senate Public Safety Committee, where  
            the bill will be referred if it is approved by this  
            committee.

           Support:
           
          None on file

           Opposition:

           Board of Behavioral Sciences (unless amended)
                                         

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