BILL ANALYSIS �
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THIRD READING
Bill No: SB 1337
Author: DeSaulnier (D)
Amended: 5/27/14
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 10-0, 4/22/14
AYES: Correa, Berryhill, Cannella, De Le�n, Galgiani,
Hernandez, Lieu, Padilla, Torres, Vidak
NO VOTE RECORDED: Vacancy
SENATE JUDICIARY COMMITTEE : 7-0, 4/29/14
AYES: Jackson, Anderson, Corbett, Lara, Leno, Monning, Vidak
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/14
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Public reports
SOURCE : Author
DIGEST : This bill adds a new provision to the Government
Code that requires written reports submitted to the Legislature
or executive body, by any state agency or department, to include
a signed statement by the head of that agency or department
declaring that the factual contents of the report are true,
accurate and complete to the best of his/her knowledge.
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ANALYSIS :
Existing law:
1. Establishes requirements for the submission of written
reports by public agencies to the Legislature, the Governor,
and other governmental entities.
2. Provides that every willful omission to perform any duty
enjoined by law upon any public officer, or person holding
any public trust or employment, where no special provision is
made for the punishment of such delinquency, is punishable as
a misdemeanor.
3. Provides that every person who, while taking and subscribing
the oath or affirmation, states as true any material matter
which he/she knows to be false, is guilty of perjury, and is
punishable by imprisonment in the state prison not less than
one nor more than fourteen years.
4. Provides that every officer authorized by law to make or give
any certificate or other writing is guilty of a misdemeanor
if he/she makes and delivers as true any certificate or
writing containing statements which he/she knows to be false.
This bill:
1. Adds a new provision to the Government Code requiring every
written report submitted to the Legislature, a Member of the
Legislature, or any state legislative or executive body by
any state agency or department to include a signed statement
by the head of that agency or department declaring that the
factual contents of the report are true, accurate, and
complete to the best of his/her knowledge.
2. Stipulates that the provisions of this bill apply to the head
of every state agency or department, including, but not
limited to, elected state officials, and any state official
whose duties are prescribed by the California Constitution.
3. Provides that with respect to the Franchise Tax Board (FTB),
the signed statement shall be made by the FTB's executive
officer, and with respect to the Board of Equalization the
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signed statement shall be made by the executive director.
4. Defines "written report" as either (a) a document required by
statute to be prepared and submitted to the Legislature, or
any state legislative or executive body, or (b) a document,
summary, or statement requested by a Member of the
Legislature.
5. Provides that the declaration in the signed statement as to
the truth, accuracy, and completeness of the contents of the
written report shall not apply to any predictions, forecasts,
recommendations, or opinions contained in the report.
6. Provides that any person who declares as true any material
matter that he/she knows to be false shall be liable for a
civil penalty not to exceed $20,000. Also, provides that the
civil penalty shall be exclusively assessed and recovered in
a civil action by the Attorney General.
Comments
According to the author's office, this bill is intended to
address issues that have arisen in response to a series of
legislative hearings reviewing the Bay Bridge Project in which
it was found that the Department of Transportation (Caltrans)
had provided inaccurate information to the Legislature and
withheld information or misrepresented certain facts, such as
cost overruns and evidence of project mismanagement.
The author's office found that Caltrans and other agency heads
withheld information or misrepresented vital facts in their
reports to the Legislature and to the executive body and under
California law, the officials had no liability for their
actions. The Bay Bridge project was 10 years late and $5
billion over budget. This project particularly illustrated how
problematic it can be when department and agency heads are not
held accountable.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, likely minor
costs to the Department of Justice for investigation and
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prosecutions related to the provisions that require a signed
declaration with agency reports, offset to some extent by fine
revenue. (General Fund)
SUPPORT : (Verified 5/27/14) (relates to prior version of
bill)
California Taxpayers Association
OPPOSITION : (Verified 5/27/14) (relates to prior version of
bill)
Department of Finance
ARGUMENTS IN SUPPORT : According to the author's office, this
bill requires a signed declaration to attest to the truth,
accuracy, and completeness of the factual contents, and not the
entire contents of a written report. This bill specifically
states that the declaration shall not apply to any predictions,
forecasts, recommendations, or opinions contained in the written
report. Narrowing the scope of the declaration to only apply to
factual content is appropriate, as any predictions,
recommendations, or opinions made in written reports are
normally based on their factual content. Additionally, this
bill imposes a maximum civil penalty of $20,000 on any person
who declares as true any material matter that he/she knows to be
false.
ARGUMENTS IN OPPOSITION : The Department of Finance opposes
this bill because it is unnecessary and could result in
additional costs to the state.
MW:d 5/27/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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