BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2065 (Melendez) - Legislative Employees
          
          Amended: July 1, 2014           Policy Vote:  Jud 7-0
          Urgency: No                     Mandate: No
          Hearing Date:  August 4, 2014                           
          Consultant: Maureen Ortiz       
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 2065 enacts the Legislative Employee  
          Whistleblower Protection Act.

          Fiscal Impact: 

              Potential increase in administrative costs (General)

          Depending on the number of complaints that are filed, there  
          could be an increase in cost pressures for additional staff in  
          the Senate and Assembly Rules Committees for investigative and  
          other administrative purposes.

          Background:  The California Whistleblower Protection Act (CWPA)  
          prohibits state employees and justices and judges from using or  
          attempting to use their official authority or influence to  
          interfere with the rights of an employee to make a good faith  
          communication that discloses information which may evidence an  
          improper governmental activity, or any condition that may  
          significantly threaten the health or safety of employees or the  
          public.  The CWPA also provides a process by which the employee  
          who has made a protected disclosure may file a written complaint  
          alleging adverse employment actions such as retaliation,  
          reprisal threats, or coercion, with a supervisor or manager and  
          with the State Personnel Board.  The CWPA specifies that  
          justices and judges are liable in an action for damages brought  
          against him or her by the injured party, except to the extent  
          the judge or justice is immune from liability under the doctrine  
          of judicial immunity.  

          Legislative employees are excluded from the California  
          Whistleblower Protection Act.









          AB 2065 (Melendez)
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          Proposed Law:  AB 2065 establishes the Legislative Employee  
          Whistleblower Protection Act which provides for the following:

             1)   Prohibits  a member of the Legislature or legislative  
               employee from directly or indirectly using or attempting to  
               use that person's official authority or influence for the  
               purpose of intimidating, threatening, coercing, commanding,  
               or attempting to intimidate, threaten, coerce, or command a  
               legislative employee for the purpose of interfering with  
               the right of the legislative employee to make a protected  
               disclosure.

             2)   Except to the extent that a Member of the Legislature is  
               immune from liability under the doctrine of legislative  
               immunity, makes violations of the Act subject to a fine not  
               to exceed ten thousand dollars ($10,000) and imprisonment  
               in a county jail for a period not to exceed one year.

             3)   In addition to all other penalties provided by law,  
               except to the extent that a Member of the Legislature is  
               immune from liability under the doctrine of legislative  
               immunity, a person who violates this section shall be  
               liable in a civil action for damages brought by a  
               legislative employee.

             4)   Allows a legislative employee to file a written  
               complaint with either house of the Legislature pursuant to  
               its rules alleging actual or attempted acts of reprisal,  
               retaliation, threats, coercion, or similar improper acts  
               prohibited by Section 9149.33. The complaint, together with  
               a sworn statement under penalty of perjury that the  
               contents of the complaint are true, or are believed by the  
               affiant to be true, shall be filed within one year of the  
               most recent improper act complained about.

             5)   Provides that in addition to all other penalties  
               provided by law, a person who intentionally engages in acts  
               of reprisal, retaliation, threats, coercion, or similar  
               acts against a legislative employee for having made a  
               protected disclosure shall be liable in a civil action for  
               damages brought by a legislative employee; and places the  
               burden of proof on the offending party to demonstrate by  
               clear and convincing evidence that the alleged action would  








          AB 2065 (Melendez)
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               have occurred for legitimate, independent reasons even if  
               the legislative employee had not made a protected  
               disclosure.

          AB 2065 provides that it is not intended to prevent a  
          supervisor, manager, or other officer of the Legislature from  
          taking, directing others to take, recommending, or approving any  
          personnel action or from taking or failing to take a personnel  
          action with respect to any legislative employee if the  
          supervisor, manager, or other officer reasonably believes any  
          action or inaction is justified on the basis of evidence  
          separate and apart from the fact that the person has made a  
          protected disclosure.

          Staff Comments:  Recently, the Senate adopted Senate Resolution  
          43 and Senate Resolution 45.  SR 43, among other things, does  
          the following:

             a)   Authorizes the appointment of an ethics ombudsperson to  
               facilitate the receipt of information about potential  
               ethical violations, and to assist the Senate in providing  
               remedies for retaliatory conduct to ensure that an  
               informant or complainant does not suffer adverse  
               consequences with respect to his or her employment.

             b)   Provides confidential accessibility to the ombudsperson,  
               and requires the establishment of a public hotline  
               telephone number for purposes of contacting the  
               ombudsperson.

             c)   Specifies that at least once in each biennial session,  
               each Senator will attend an individual training or review  
               session conducted by the ombudsperson.


             d)   Prohibits retaliation against an employee of the Senate  
               for reporting information to the Senate Committee on Rules,  
               the Senate Committee on Legislative Ethics, or any  
               government or law enforcement agency regarding a possible  
               violation of the Senate Standards of Conduct, as specified.

          SR 45 updates the Standards of Conduct of the Senate to require  
          each Senator to conduct himself/herself so as to justify the  








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          high trust reposed in him/her by the people and to promote  
          public confidence in the integrity of the Senate.

          Existing law defines "Improper governmental activity" to mean 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.

          Staff notes that Section 9149.33(e) of AB 2065 states, in part,  
          that it is not intended to prevent a supervisor, manager, or  
          other officer of the Legislature from taking a personnel action  
          that he or she believes is justified on the basis of evidence  
          separate and apart from the fact that the person has made a  
          protected disclosure.  It is unclear how this will be  
          implemented under circumstances where staff has an "at-will"  
          contractual relationship under which an employee can be  
          dismissed for any reason - with or without cause- and without  
          warning.   This bill is patterned after the California  
          Whisteblower Protection Act that applies similar protections to  
          state and judicial employees who for the most part participate  
          in the collective bargaining process where the normal standard  
          for dismissal is that the employer must have a just cause.