BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1336 (Yee) - Investigations of improper governmental 
          activities: confidentiality.
          
          Amended: May 8, 2012            Policy Vote: G&F 6-1
          Urgency: No                     Mandate: No
          Hearing Date: May 14, 2012      Consultant: Mark McKenzie
          
          This bill does not meet the criteria for referral to the 
          Suspense File. 

          
          Bill Summary: SB 1336 would require specified auditing entities 
          to release any substantiated findings resulting from an 
          investigative audit, including the name and title of the person 
          found responsible for improper government activities.

          Fiscal Impact:  Minor costs to the State Auditor and California 
          State University (CSU) to release substantiated findings and 
          reports of corrective actions. (General Fund)

          Background:  The California Whistleblower Protection Act governs 
          the procedures for complaints and appeals of employment actions 
          taken against state employees, including employees of the 
          University of California and CSU, who report improper government 
          activities.  Numerous local agencies also have established 
          hotlines and related reporting systems to encourage public 
          reporting of improper activities.  

          If there is reasonable cause to believe that improper 
          governmental activity has occurred, public audit authorities are 
          required to conduct an investigation and report findings to 
          relevant officials, which may include the head of the employing 
          agency, personnel officials, or the appropriate appointing 
          authority.  Generally, audit authorities have the discretion to 
          release investigative findings and issue public reports from 
          investigations that have substantiated claims of improver 
          activities.  Confidentiality provisions protect the identities 
          of persons reporting improper activities, as well as those 
          persons who are subject to investigations.

          Proposed Law: SB 1336 would require the State Auditor, CSU, and 
          specified local audit officials to release substantiated 








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          findings resulting from an investigation conducted pursuant to 
          allegations of improver activity, as well as any recommendations 
          on corrective actions.  Upon exhaustion of any available 
          administrative appeals, the bill would also require the auditing 
          entity to release the name and title of the person found 
          responsible for improper activity and any discipline imposed by 
          the employing agency, unless the activity was a minor and 
          isolated incident involving no injury to other persons.

          Staff Comments: Both the State Auditor and CSU report that there 
          would be minor costs associated with this bill, since the 
          information to be reported is readily available and the release 
          of substantiated findings is common practice.  However, 
          releasing the names of those found responsible for improper 
          activities remains as a potential liability concern.