BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           705 (Lowenthal)
          
          Hearing Date:  5/26/2009        Amended: 5/19/2009
          Consultant:  Bob Franzoia       Policy Vote: Judiciary 3-2
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          ____
          BILL SUMMARY:  SB 705 would provide that the exhaustion of an  
          employee's internal administrative remedies or judicial review  
          of a decision of an administrative agency is not a precondition,  
          and does not need to be judicially reviewed by a petition for a  
          writ of mandate, for the filing of a civil action alleging a  
          violation of a right that the Legislature determines to be based  
          on a fundamental public policy of the state.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Option to proceed to   $50 or more$100 or more          $100 or  
          more                   General*
          civil action                                            

          * Also Trial Court Trust Fund
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          This bill defines a fundamental public policy of the state to  
          mean a policy that affects society at large rather than an  
          individual, is fundamental and substantial, and is tethered to a  
          constitutional or statutory provision. 

          State entities have administrative processes for determining if  
          a complaint, grievance, or accusation has merit.  These  
          administrative processes reduce the number of actions without  
          the expense and delay of a civil proceeding.  Absent the  
          administrative process, civil courts would likely get more cases  
          of lesser merit which the state would have to defend at a higher  
          cost per case.  A general estimate of the cost to operate a  
          courtroom (judge and court staff in the courtroom) for one day  
          is $4,000.  This does not include the cost of staff or outside  










          counsel.

          It appears that for cases that are not resolved at the  
          administrative level, this bill would allow for the filing of a  
          civil action without having to first seek judicial review by a  
          petition for a writ of mandate.  This may have the effect of  
          reducing the number of court filings in these cases. 

          State employees have the option, in some types of actions, to  
          proceed directly to the filing of a civil action.  This bill  
          would expand that option.  This option is not available to  
          University of California (UC) employees.  Depending on the  
          number of claims/grievances filed, costs to UC could range from  
          $100,000 to significantly more annually.  If grievances or  
          claims go to civil court, which is a more costly and less  
          efficient process, UC would have to hire outside counsel to  
          provide representation.