BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1378
                                                                  Page  1

          Date of Hearing:   January 19, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                AB 1378 (Portantino) - As Amended:  January 13, 2012 

          Policy Committee:                              
          JudiciaryVote:10-0

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

           SUMMARY  

          This bill adds legislators and legislative staff to the 
          California Whistleblower Protection Act (WPA). Specifically, 
          this bill:

          1)Subjects current and former members of the Legislature and 
            legislative staff to complaints of wrongdoing alleging 
            "improper governmental activity," as defined. Pursuant to 
            current law, the State Auditor is charged with investigating 
            all such complaints.

          2)Prohibits a member of the Legislature from making a complaint, 
            pursuant to (1), against another legislator or a legislative 
            employee.

          3)Subjects members of the Legislature and legislative staff to 
            lawsuits by any person alleging that the legislator or staff 
            person directly or indirectly used or attempted to use his or 
            her official authority or influence for the purpose of 
            intimidating, threatening, coercing or commanding - or 
            attempting to intimidate, threaten, coerce or command - any 
            person for the purpose of interfering with the rights 
            conferred pursuant to the Whistleblower Protection Act - e.g., 
            to file a complaint, pursue an investigation, file a lawsuit, 
            etc. Prohibits members of the Legislature filing such an 
            action based on an allegation against another member or a 
            legislative employee.

          4)Subjects members of the Legislature and legislative staff to a 
            fine up to $10,000 and imprisonment in county jail for up to 
            one year for reprisal, retaliation, threats, coercion, or 








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            similar improper acts against an employee of, or applicant for 
            employment with, the Legislature.

          5)Subjects members of the Legislature and legislative staff to 
            civil law suits for damages, punitive damages and attorney's 
            fees for reprisal, retaliation, threats, coercion, or similar 
            improper acts against a non-legislative state employee for 
            having made a protected disclosure.

          6)Exempts members of the Legislature from (2), (3), and (4) to 
            the extent they are provided immunity under the doctrine of 
            legislative immunity.

           FISCAL EFFECT  

          The State Auditor is required to receive, evaluate and 
          investigate every complaint as deemed appropriate, and to 
          prepare a written report if she or he finds reasonable cause to 
          believe that improper governmental activity may have occurred. 
          The expansive and imprecise nature of the term "improper 
          governmental activity," the broad pool of potential 
          complainants, and the open-ended time period for filing 
          complaints would permit a substantial increase in the volume of 
          complaints to be handled by the auditor, who while not legally 
          obligated to investigate every complaint, would be expected to 
          undertake a serious and thorough assessment of every complaint.  
          The auditor preliminary estimates annual General Fund costs of 
          $400,000 for three investigators and a half-time attorney.

           COMMENTS  

           1)Purpose  .  The WPA authorizes the State Auditor to receive and 
            investigate complaints from state employees and members of the 
            public wishing to report an improper governmental activity.    
            State employees who file a complaint are entitled to 
            protection against retaliation by their employers for filing 
            the complaint. According to the author, while the WPA covers 
            all executive branch employees, legislative appointees to 
            state boards or commissions, and employees of the CSU system, 
            "Unfortunately employees of the California State Legislature 
            have no such protections if they report crimes, waste, fraud 
            or other governmental irregularities. In a time when public 
            confidence in our state legislature is at an all-time low and 
            we are experiencing a lack of openness and accountability in 
            government, we need to prove to the public that their 








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            Legislature is above reproach.  If there is fraud, criminal 
            acts, waste, theft or embezzlement, employees of the 
            legislature need to be free to report these abuses with the 
            same protections as every other state employee."

           2)The WPA  defines "improper governmental activity" as an 
            activity 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, if undertaken outside a 
            state office by the employee, directly relates to state 
            government, whether or not that activity is within the scope 
            of his or her employment, and that (a) is in violation of any 
            state or federal law or regulation, including, but not limited 
            to, corruption, malfeasance, bribery, theft of government 
            property, fraudulent claims, fraud, coercion, conversion, 
            malicious prosecution, misuse of government property, or 
            willful omission to perform duty, (b) is in violation of an 
            Executive order of the Governor, a California Rule of Court, 
            or any policy or procedure mandated by the State 
            Administrative Manual or State Contracting Manual, or (c) is 
            economically wasteful, involves gross misconduct, 
            incompetency, or inefficiency.

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