BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 220
                                                                  Page  1

          Date of Hearing:   July 15, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                      SB 220 (Yee) - As Amended:  July 2, 2009 

          Policy Committee:                              JudiciaryVote:7-2

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill,  as proposed to be amended  , expands the protections  
          under the California Whistleblower Protection Act (WPA) and  
          makes several procedural and clarifying changes to the Act.   
          Specifically, this bill:

          1)Permits the State Personnel Board (SPB), as an alternative to  
            undertaking an investigation in response to a written  
            complaint under the WPA, to issue a notice of a complainant's  
            right to bring a civil action if requested by the complainant  
            within 10 days following submission of a written complaint to  
            the board.  

          2)Authorizes the SPB to also order, for a successful  
            complainant, the transfer or placement of the complainant into  
            any vacant position for which the employee is qualified, and  
            reasonable attorney's fees and costs.

          3)Clarifies that former state employees who would have been  
            covered by the WPA during their employment remain covered by  
            the Act as long as a complaint, consistent with current  
            provisions of the Act, is filed with the SPB within 12 months  
            of the most recent act of reprisal set forth in the complaint.

           FISCAL EFFECT  

          1)Minor administrative cost savings to the SPB from avoided  
            investigatory workload as a result of WPA complainants instead  
            requesting right-to-sue notices.

          2)The net impact of authorizing the SPB to award attorney's fees  
            should be potentially moderate savings in state litigation  








                                                                  SB 220
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            costs. This is because, according to SPB staff, if the SPB  
            finds that a plaintiff was a victim of retaliatory action  
            under the Act, that person typically will proceed to file an  
            action in court, where upon receiving a successful outcome (as  
            is typical following the board's finding), the plaintiff is  
            awarded attorney's fees and may receive punitive damages. With  
            the board specifically authorized to award attorney's fees  
            under this bill, it is less likely that a successful plaintiff  
            will proceed to file an action with the court.

           COMMENTS  

           1)Background  . The California Whistleblower Protection Act  
            prohibits state employees from using their official authority  
            to interfere with the rights of an employee to disclose  
            information that may evidence an improper governmental  
            activity or any condition that may significantly threaten the  
            health or safety of employees or the public.  Under the Act,  
            whistleblowing by a state civil service employee or community  
            college employee is defined as either disclosing information  
            that an employee reasonably believes is evidence of an  
            improper governmental activity or refusing to obey an illegal  
            order or directive.  The SPB accepts complaints from state  
            civil service or community college employees who believe they  
            have been subjected to retaliation based on the disclosure of  
            improper governmental activity.

            Current law requires an aggrieved individual to file a written  
            complaint with the SPB, and the SPB to initiate an  
            investigation or a hearing within 10 working days of the  
            submission of the complaint.  The investigation and/or hearing  
            must be completed by the end of 70 days (60 days after the  
            initial 10 days in which to act).  

           2)Purpose  .  This bill requires the SPB to issue a right-to-sue  
            notice if requested by the complainant within the specified  
            time period.  In February 2009, the California Supreme Court  
            affirmed the right of a state employee to sue in superior  
            court as a parallel action to the administrative proceeding at  
            the SPB.  (State Chiropractic Examiners, et al. v. Superior  
            Court of Sacramento County (Carole M. Arbuckle, Real Party in  
            Interest) (2009) 45 Cal.4th 963.)  According to the author,  
            "SB 220 will make the whistleblower retaliation hearing  
            process more efficient and effective by allowing  
            whistleblowers to opt-out of the administrative remedy.   








                                                                  SB 220
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            Rather than wasting the state's and the whistleblower's money  
            on an unwanted 60-day administrative process, this bill allows  
            the SPB to issue a right-to-sue notice at the outset and allow  
            the complainant to go straight to court."

           3)Expanded Administrative Remedies  .  To make the administrative  
            option, rather than a civil action, more viable, SB 220 also  
            authorizes the SPB to order an employee found to have been  
            wronged by a violation of the WPA to include a transfer or  
            placement in a vacant position at the employees request and  
            consent.  In addition, the SPB currently has no authority to  
            award attorney's fee in an administrative action.  Conversely,  
            in a court action, an aggrieved employee can seek punitive  
            damages and the award of attorney's fees.  Without the ability  
            to recover reasonable attorney's fees and costs at the  
            administrative level, employees are often forced to seek  
            redress in superior court or to take an SPB decision on appeal  
            to superior court, regardless of the outcome, for purposes of  
            recovering attorney's fees.  SB 220 therefore authorizes the  
            SPB to award reasonable attorney's fees and costs.

            SB 220 also expands coverage of the WPA to protect former  
            employees who were covered by the WPA while they were employed  
            by the state.  This is consistent with other whistleblower  
            statutes, such as Labor Code Section 1102.5, that apply to  
            non-state agency employers.

           4)Prior Legislation  .  In 2008, SB 1505 (Yee), which included  
            some similar provisions, was one of numerous bills summarily  
            vetoed by the governor without a stated reason.

           5)Amendments .  The author's proposed amendments simply address  
            chaptering issues with AB 567 (Villines).

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081