BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 567|
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THIRD READING
Bill No: AB 567
Author: Villines (R)
Amended: 9/2/09 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 9-0, 6/9/09
AYES: Wright, Harman, Benoit, Calderon, Denham, Negrete
McLeod, Padilla, Wiggins, Yee
NO VOTE RECORDED: Florez, Oropeza, Wyland, Vacancy
SENATE JUDICIARY COMMITTEE : 5-0, 7/14/09
AYES: Corbett, Harman, Florez, Leno, Walters
SENATE APPROPRIATIONS COMMITTEE : 12-0, 8/27/09
AYES: Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,
Price, Runner, Walters, Wyland, Yee
NO VOTE RECORDED: Wolk
ASSEMBLY FLOOR : 73-0, 5/14/09 (Consent) - See last page
for vote
SUBJECT : Government practices
SOURCE : Author
DIGEST : This bill makes numerous changes to the
California Whistleblower Protection Act (CWPA) to broaden
the class of employees covered by the CWPA, expands the
definition of improper governmental activity" that could be
reported by a whistleblower, and permits the State Auditor
CONTINUED
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to publicly report on recommendations made to heads of
state agencies that have not been fully implemented after
one year, among others.
ANALYSIS : Existing law sets forth the duties and powers
of the Bureau of State Audits (BSA) and makes reference to
audits and investigative audits. Existing law also
prohibits the State Auditor or his/her employees from
releasing to the public, among other things, any papers,
correspondence, or any substantive information pertaining
to any audit not completed. (Section 8543 et seq. of the
Government Code)
This bill requires the State Auditor, when resources become
available, to establish the Clearinghouse for Government
Innovation and Improvement Program, for the purpose of
creating the means for the public to submit recommendations
for improving the operations of state government via mail
or other electronic submissions through an Internet website
portal. This bill requires the State Auditor to select
recommendations and forward those to the Governor, the
Director of the Department of Finance, and majority and
minority party leaders in both houses of the Legislature.
Existing law, the California Whistleblower Protection Act,
sets forth the circumstances and procedures under which a
state employee, as defined, may report improper
governmental activities, as defined, or make protected
disclosures, as defined, to the State Auditor, and
prohibits retaliation or reprisal against a state employee
for these acts. (Section 8547 et seq. of the Government
Code)
This bill makes the following changes to the California
Whistleblower Protection Act:
1. Expands the definition of covered "employee" to include
any person appointed by the Legislature to a state board
or commission and who is not a member or employee of the
Legislature. "Employee" includes any former employee
who met the criteria of this bill during his/her
employment.
2. Defines "improper governmental activity" as any activity
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by a state agency or by an employee that is undertaken
in the performance of the employee's duties, undertaken
inside a state office, or outside the state office by
the employee, directly relates to state government,
whether or not that activity is within the scope of
his/her employment.
3. Clarifies that "protected disclosure," includes not only
any good faith communication to BSA alleging an improper
governmental activity but also any evidence delivered to
the BSA in support of the allegation.
4. Pursuant to an investigation and a finding that an
employee may have engaged or participated in improper
governmental activities, requires the State Auditor to
prepare an investigative report for submittal to the
employee's appointing power and provide evidence,
subject to certain limitations, necessary to support an
adverse action or other specified action to prevent the
continuation or recurrence of the improper activity.
5. Requires the employee's appointing power that receives
the State Auditor's investigative report to take adverse
action within 60 days of receiving the report, or else
submit written reasons for not doing so to the State
Auditor and the State Personnel Board.
6. Requires the State Auditor to establish the means for
submissions of allegations of improper governmental
activity via mail or other carrier or electronic
submission through an Internet website portal.
7. Authorizes the State Auditor to request, not require, a
person submitting allegations of improper governmental
activity to provide his/her name and contact information
and to provide the names and contact information for any
person who could help to substantiate the claim.
8. Prohibits the disclosure of the identity of the person
who provided the information that initiated an
investigation, or the person providing information in
confidence to further the investigation.
9. Authorizes the State Auditor, if he/she determines that
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there is reasonable cause to believe that an employee of
a state agency has engaged in improper governmental
activity, to include, in the report given to the head of
the employing agency, recommendations to prevent the
continuation or recurrence of the activity.
10.Requires the State Auditor to keep confidential every
investigation, including all investigative files and
work product, but may release, as part of a report
issued after an investigation has been substantiated,
evidence supporting any findings.
11.Requires the State Auditor to report, on January 15 of
each year, to the Joint Legislative Budget Committee,
the Joint Legislative Audit Committee, and the
Department of Finance, on each recommendation made based
on an audit or investigation conducted more than one
year prior, and that has not been fully implemented by
the affected agency.
This bill deletes the term "investigative audit" from the
CWPA and replaces it with "investigation."
This bill provides that it shall be implemented at no cost
to the state and using only existing resources.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Revision/expansion of Minor, absorbable costs
ongoing General*
California Whistleblower
Protection Act
* State Audit Fund
SUPPORT : (Verified 9/2/09)
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California Bureau of State Audits (State Auditor)
Service Employees International Union Local 1000
OPPOSITION : (Verified 9/2/09)
State Personnel Board (unless amended)
ARGUMENTS IN SUPPORT : The author's office contends that
California's citizens need to know that their government is
acting responsibly and running efficiently, especially
during our current budget climate. The author's office
points out that although the California Whistleblower
Protection Act provides the means for state employees and
members of the public to speak out if they witness any
government fraud, waste, or abuse, more can be done to
encourage state employees to come forward without fear of
retaliation and auditor recommendations to correct issues
can be taken more seriously. The author states, "[i]t is
important that no person feels threatened when providing
information on how our government can run more effectively
and efficiently and corrective actions are taken when
necessary."
The State Auditor, although not a sponsor of the bill,
supports the changes being made to the CWPA. In fact, many
of the bill's provisions were drafted to clarify the State
Auditor's function as the administrator of the CWPA and to
strengthen the impact of the investigations conducted by
the State Auditor and the recommendations made to state
agencies as a result of those investigations.
ARGUMENTS IN OPPOSITION : The State Personnel Board
states that "The July 16 amendments add language expanding
the definition of 'improper governmental activities' to
encompass any activity undertaken inside a state office,
or, if undertaken outside a state office, that directly
relate to state government. Rules of statutory
construction would interpret the new provisions as
expanding the scope of improper governmental activities.
The additional language is ambiguous and will result in an
increase in complaint filings and litigation costs."
ASSEMBLY FLOOR :
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AYES: Adams, Anderson, Arambula, Beall, Bill Berryhill,
Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Chesbro,
Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,
Duvall, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuller, Furutani, Galgiani, Gilmore, Hagman, Hall,
Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Silva, Skinner,
Solorio, Audra Strickland, Swanson, Torlakson, Torres,
Torrico, Tran, Villines, Yamada
NO VOTE RECORDED: Ammiano, Fuentes, Gaines, Garrick,
Saldana, Smyth, Bass
TSM:mw 9/2/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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