BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2065
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          Date of Hearing:   May 21, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

              AB 2065 (Melendez and Gorell) - As Amended:  May 13, 2014 

          Policy Committee:                               
          JudiciaryVote:10-0
                        Rules                                 9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           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 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  








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            one year for reprisal, retaliation, threats, coercion, or  
            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 (3), (4), and (5) 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's  preliminary estimate is ongoing 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, the lack of  
            protection, pursuant to the WPA, discourages legislative  
            employees from reporting information relating to improper  
            governmental activity. "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  








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            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."

           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.

           3)Prior Legislation  . In January 2012, AB 1378 (Portantino), an  
            identical bill, was held on Suspense in this committee.

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