BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2065
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          Date of Hearing:   May 19, 2014

                             ASSEMBLY COMMITTEE ON RULES
                              Richard S. Gordon, Chair
                AB 2065 (Melendez/Gorell) - As Amended:  May 13, 2014
           
          SUBJECT  :   California Whistleblower Protection Act: Legislature

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

          1)Subjects Members of the Legislature and legislative staff to  
            complaints of wrongdoing alleging "improper governmental  
            activity" including, among other things: malfeasance,  
            corruption, fraud, coercion, misuse of government property,  
            and willful omission to perform duty, as well as conduct that  
            is wasteful, incompetent or inefficient.  Improper  
            governmental activity under the bill is said to include "any  
            activity by the Legislature," presumably including purely  
            legislative acts that may otherwise be shielded under the  
            constitutional doctrine of legislative immunity.

             a)   These complaints can be brought by "any individual,  
               corporation, ? association, state or local government or  
               agency" including any member of the general public.

             b)   Complaints are to be received and investigated by the  
               State Auditor via the Internet and other means.

             c)   Complainants are entitled to complete anonymity and  
               confidentiality.  

             d)   Former Members of the Legislature and former staff would  
               forever be subject to complaints for their actions as  
               Members or staff after their term of office or employment  
               expires; there is no statute of limitations on when these  
               complaints can be filed.

             e)   Under the bill, these administrative complaints are not  
               expressly precluded by the doctrine of legislative immunity  
               as other provisions of the bill are, although legislative  
               immunity may in fact apply to some acts.

          2)Subjects Members of the Legislature and legislative staff to  








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            law suits 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.,  
            filing a complaint, pursuing an investigation, filing a law  
            suit, etc.  A violation of this prohibition would be subject  
            to a potential civil action for damages by the offended party.  
             However, Members of the Legislature would be protected under  
            the doctrine of legislative immunity.  It is not clear whether  
            legislative staff would also be protected by this doctrine.

          3)Subjects Members of the Legislature, as well as legislative  
            staff, to a fine up to $10,000 and imprisonment in the county  
            jail for up to one year for reprisal, retaliation, threats,  
            coercion, or similar improper acts against an employee of the  
            Legislature or applicant for employment with the Legislature.   
            However, Members of the Legislature would be protected under  
            the doctrine of legislative immunity, while it is unclear  
            whether legislative staff would likewise be similarly immune.

          4)Subjects Members of the Legislature, as well as 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 State (non-legislative)  
            employee or applicant for having made a protected disclosure.   
            However, Members of the Legislature would be protected under  
            the doctrine of legislative immunity; legislative staff may or  
            may not be covered by legislative immunity.

          5)Permits Members of the Legislature to invoke the WPA and  
            involve the State Auditor in complaints against the  
            Legislature, other Members (current and former) and  
            legislative staff.  It is unclear whether the doctrine of  
            legislative immunity would cover these complaints either for  
            Members or for legislative staff.

           EXISTING LAW  

          1)Prohibits, pursuant to the California Whistleblower Protection  
            Act (WPA), "improper governmental activities" by state  
            agencies and employees.  (Govt. Code Sections 8547.2, 8547.4.)









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          2)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 (1) 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, (2) 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 (3) is economically wasteful, involves  
            gross misconduct, incompetency, or inefficiency.  (Govt. Code  
            Section 8547.2(c).)

          3)Defines employee to include former employees, but specifically  
            excludes Members and staff of the Legislature from the  
            definitions of "employee" and "state agency."  (Govt. Code  
            Section 8547.2(a), (f).)

          4)Directs the State Auditor to accept complaints by mail and via  
            Internet, and to conduct investigations of alleged improper  
            governmental activities, and authorizes the State Auditor to  
            issue reports of its findings including recommended corrective  
            actions if it finds reasonable cause to believe an improper  
            governmental activity has occurred.  (Govt. Code Sections  
            8547.4, 8547.5, 8547.7.) 

          5)Provides that the State Auditor shall permit complaints to be  
            filed anonymously and shall keep the identity of all  
            complainants and witnesses confidential unless given the  
            express permission of the person, except that the State  
            Auditor may make the disclosure to a law enforcement agency  
            that is conducting a criminal investigation.  (Govt. Code  
            Section 8547.5.)

          6)Requires the State Auditor to keep confidential every  
            investigation, including, but not limited to, all  
            investigative files and work product, except that the State  
            Auditor may issue a public report of an investigation that has  
            substantiated an improper governmental activity, keeping  
            confidential the identity of the employee or employees  








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            involved.  (Govt.  Code Section 8547.7.)

          7)Requires the employing state agency to take adverse employment  
            action against any employee found by the State Auditor to have  
            engaged or participated in improper governmental activity or  
            to set forth in writing its reasons for not taking adverse  
            action, and likewise requires the employing agency to report  
            on actions it has taken to implement the Bureau of State  
            Audits' recommendations.  (Govt.  Code Sections 8547.4,  
            8547.7.)

          8)Prohibits state employees and officers, other than Members and  
            employees of the Legislature, from directly or indirectly  
            using or attempting to use the official authority or influence  
            of the employee for the purpose of intimidating, threatening,  
            coercing, commanding, or attempting to intimidate, threaten,  
            coerce, or command any person for the purpose of interfering  
            with the rights conferred pursuant to the WPA. (Govt. Code  
            Section 8547.3.)

          9)Defines "use of official authority or influence" to include  
            promising to confer, or conferring, any benefit; effecting, or  
            threatening to effect, any reprisal; or taking, or directing  
            others to take, or recommending, processing, or approving, any  
            personnel action, including, but not limited to, appointment,  
            promotion, transfer, assignment, performance evaluation,  
            suspension, or other disciplinary action.  (Govt. Code Section  
            8547.3.)

          10)Provides that any employee who violates this prohibition  
            against use of authority or influence to be liable in an  
            action for civil damages brought by the offended person.   
            (Govt. Code Section 8547.3.)

          11)Makes a person who intentionally engages in acts of reprisal  
            or retaliation in violation of the WPA subject to a fine of up  
            to $10,000 and up to a year in county jail, and if that person  
            is a civil service employee, subjects that person to  
            discipline by adverse action.  A person injured by such acts  
            may bring an action for damages only after filing a complaint  
            with the State Personnel Board (SPB) and the SPB issued, or  
            failed to issue, findings of its hearings or investigation.   
            (Gov. Code Section 8547.8.)

          12)Under the constitutional doctrine of legislative immunity,  








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            prohibits legal action against legislators for legislative  
            activity and other acts within the sphere of legislative  
            activity.  (Tenney v. Brandhove, 341 U.S. 367, 375(1951);  
            Bogan v. Scott-Harris, 523 U.S. 44, 49(1998); Steiner v.  
            Superior Court, 50 Cal.App.4th 1771, 1784 (1996).))  

          13)Provides a process by which a state employee may file an  
            optional written complaint alleging adverse employment actions  
            such as retaliation, reprisal threats, or coercion, with a  
            supervisor or manager and with the SPB.  Existing law requires  
            the SPB to initiate an investigation or a proceeding within 10  
            working days of submission of a written complaint, and to  
            complete findings of the investigation or hearing within 60  
            working days thereafter.  (Gov. Code Section 19683.)

          14)Provides that no public or private employer may make, adopt,  
            or enforce any rule, regulation, or policy preventing an  
            employee from disclosing information to a government or law  
            enforcement agency, where the employee has reasonable cause to  
            believe that the information discloses a violation of state or  
            federal statute, or a violation or noncompliance with a state  
            or federal rule or regulation.  (Labor Code Section 1102.5.)

          15)Likewise prohibits public and private employers from  
            retaliating against an employee for: (a) disclosing  
            information to a government or law enforcement agency, where  
            the employee has reasonable cause to believe that the  
            information discloses a violation of state or federal statute,  
            or a violation or noncompliance with a state or federal rule  
            or regulation; (b) refusing to participate in an activity that  
            would result in a violation of state or federal statute, or a  
            violation or noncompliance with a state or federal rule or  
            regulation; or (c) having exercised his or her rights to do so  
            in any former employment.  (Labor Code Section 1102.5.)

          16)Provides that any employer who violates Labor Code Section  
            1102.5 is guilty of a misdemeanor punishable, in the case of  
            an individual, by imprisonment in the county jail not to  
            exceed one year or a fine not to exceed $1,000 or both and, in  
            the case of a corporation, by a fine not to exceed $5,000, and  
            provides that in all prosecutions under this chapter, the  
            employer is responsible for the acts of his managers,  
            officers, agents, and employees.  (Labor Code Sections  
            1103-04.)









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           FISCAL EFFECT  :   Unknown  

           COMMENTS  :  In support of the bill the author states:

               Currently, employees of the Legislature are not protected  
               under the California Whistleblower Protection Act. This  
               lack of protection discourages legislative employees from  
               reporting information relating to improper governmental  
               activity. Every violation of the law by a public official  
               is also a violation of the public trust. The Legislature  
               has a responsibility to protect the integrity of the  
               institution by creating an atmosphere of transparency and  
               accountability. Given their proximity to members of the  
               Legislature, legislative employees have a unique  
               opportunity to help provide this accountability by  
               reporting any suspicious or unethical behavior. This will  
               not take place, however, if those employees are not  
               afforded protections from intimidation or coercion.

               The California Whistleblower Protection Act prohibits an  
               employee from using his or her official authority or  
               influence for the purpose of intimidating, threatening,  
               coercing, or commanding any person for the purpose of  
               interfering with his or her right to make a protected  
               disclosure of improper governmental activity. Employees of  
               the Legislature are not covered under this act, nor do they  
               have a process for reporting questionable governmental  
               behavior. AB 2065 would provide the same protection other  
               state workers receive under the California Whistleblower  
               Protection Act to employees of the Legislature. 

               The bill would authorize an employee of the Legislature to  
               file a written complaint with his or her supervisor,  
               manager, or other officer designated by the Committee on  
               Rules of the Assembly or Senate, as applicable, alleging  
               improper acts, together with a sworn statement that the  
               complaint is true, under penalty of perjury, within one  
               year of the most recent improper act complained about.
           

           Recent Amendments:   The bill has been recently amended to make  
          it identical to version 97 of AB 1378 of 2012. 

           REGISTERED SUPPORT / OPPOSITION  :   








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           Support 
           
          California Forward Action Fund

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Mukhtar Ali / RLS. / (916) 319-2800