BILL ANALYSIS
Bill No: AB
1135
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 1135 Author: Strickland
As Amended: June 13, 2007
Hearing Date: June 26, 2007
Consultant: Art Terzakis
SUBJECT
State Reports
DESCRIPTION
AB 1135 requires written reports submitted to the
Legislature or executive body to include a signed statement
by the head of the agency or department that the contents
of the report are true, accurate, and complete, to the best
of his/her knowledge. Specifically, this measure:
1. Stipulates that every written report required to be
submitted to the Legislature, a Member of the
Legislature, or any state legislative or executive body
by any state agency or department must 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.
2. Declare 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.
3. Provides that with respect to the Franchise Tax Board,
the signed statement shall be made by the board's
executive officer and with respect to the State Board of
Equalization the signed statement shall be made by the
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executive director.
4. Provides 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. Also,
provides that the civil penalties shall be exclusively
assessed and recovered in a civil action brought by the
Attorney General.
5. Defines "written report" and stipulates that the
declaration in the signed statement as to the truth,
accuracy, and completeness of the contents of the written
report shall not apply to any predictions, forecasts,
recommendations, or opinions contained in the report.
EXISTING LAW
Existing law establishes numerous requirements for state
and local government agencies to prepare and submit to the
Legislature, the Governor, and other governmental entities,
written reports on various subject matters of interest to
policymakers and regulatory entities.
BACKGROUND
Purpose of AB 1135: This measure has been introduced in
response to a series of hearings in which it was found that
CalTrans had provided inaccurate information to the State
Legislature and withheld information concerning the
retrofit of the eastern span of the Bay Bridge. 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. The
author's office contends that under existing law, the
officials had no liability for their actions. The author's
office also points out that other types of reports,
including the "Annual Road Report" and the "Annual Street
Report" are already filed under certification and penalty
of perjury. The author's office argues that "it does not
make sense to require certification from some agencies and
not others."
According to the author's office, this measure would ensure
that all state agencies and departments and the officials
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in charge of them are held accountable to the same
standards. In addition, the author's office states that AB
1135 would bring state agency certification in line with
what public companies are already required to do by federal
law, namely, "remain accountable to their shareholders in
providing accurate financial information." The author's
office points out that "California taxpayers are the
shareholders in state and local entities and they deserve
the same accountability from the officials appointed to
manage public funds."
Arguments in Opposition: The Department of Consumer
Affairs and the Department of Mental Health have expressed
opposition to this measure on the basis that it is
unnecessary given the extensive protections already in
place to ensure accurate reporting and communications in
state government. For example, requirements for executing
an oath of office or oath of allegiance for state
employees, appointees, elected officials and Constitutional
officers are found in the Government Code and those oaths
require faithful discharge of all assigned duties with
misdemeanor punishment for delinquency in the performance
of those duties. Additionally, provisions for the filing
of perjury charges for willfully signing false statements
are found in sections of both the Government Code and the
Penal Code. Successful prosecution can result in sentences
to state prison for up to 14 years. Furthermore, opponents
note that "the civil penalty provision contained in this
measure would not obviate any criminal charges that may be
filed and is not considered a necessary deterrent given the
range of punishments already found in law."
Staff Comments: This bill contains provisions similar to
AB 1625 (Klehs) of 2005, and AB 2404 (Klehs) of 2006, both
of which were vetoed by the Governor. In his veto message
of AB 2404, the Governor stated:
"Although I agree that the Legislature should base their
decisions on sound information that is true, accurate and
complete, I believe that this bill is the wrong approach.
By requiring that only mandatory reports submitted to the
Legislature and State Controller contain signed statements
attesting to their accuracy, this bill would create an
inconsistent system in which some of the information
considered in the legislative process is subject to
declarations of truth, while the majority of the written
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material used in the legislative process is accepted as
truth without such verification."
"The Legislature already has the authority to question the
accuracy of a report by requiring those responsible for
submitting the report to attest to the accuracy of the
report under oath. Given this legislative oversight and
the fact that state law already makes it a misdemeanor for
a state or local official to submit a written report
containing false information to the State Controller, this
measure is unnecessary."
PRIOR LEGISLATION
AB 2404 (Klehs) of 2005-06 Session. Would have required
written reports that are required to be submitted by any
state agency, board, or commission to include a signed
statement by the head of the agency or chair of the board
or commission, declaring that the contents of the report
are true, accurate, and complete to the best of his/her
knowledge. (Vetoed)
AB 1625 (Klehs) of 2005-06 Session. Would have required
written reports that are required to be submitted to the
Legislature by any state agency, board, or commission to
include a signed statement by the head of the agency, chair
of the board or commission or executive director, declaring
that the contents of the report are true, accurate, and
complete to the best of his/her knowledge. (Vetoed)
SUPPORT: None on file as of June 21, 2007.
OPPOSE: As of June 21, 2007:
Department of Consumer Affairs
Department of Mental Health
DUAL REFERRAL: Senate Judiciary Committee
FISCAL COMMITTEE: Senate Appropriations Committee
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