BILL ANALYSIS �
SB 1337
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Date of Hearing: June 18, 2014
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
SB 1337 (DeSaulnier) - As Amended: May 27, 2014
SENATE VOTE : 35-0
SUBJECT : Reports
SUMMARY : 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.
Specifically, this bill :
1)Specifies the applicable executive officers for the Franchise
Tax Board and the State Board of Equalization.
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)Defines "written report" as:
a) A document required by statute to be prepared and
submitted to the Legislature or any state legislative or
executive body.
b) A document, summary, or statement requested by a Member
of the Legislature.
4)Exempts forecasts, predictions, recommendations or opinions
from this requirement.
5)Specifies 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 and provides that the
penalty shall be exclusively assessed and recovered in a civil
action by the Attorney General.
EXISTING LAW provides, but is not limited to, the following:
1)Every wilful omission to perform any duty enjoined by law upon
SB 1337
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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
(Government Code Section 1222).
2)Every person who, while taking and subscribing to the oath or
affirmation required by this chapter, states as true any
material matter which he or she knows to be false, is guilty
of perjury, and is punishable by imprisonment pursuant to
subdivision (h) of Section 1170 of the Penal Code for two,
three, or four years (Government Code Section 1368).
FISCAL EFFECT : According to the Senate Appropriations
Committee, likely minor costs to the Department of Justice for
investigation and prosecutions related to the provisions that
require a signed declaration with agency reports, offset to some
extent by fine revenue.
COMMENTS : According to the author's office, currently heads of
state departments or agencies have no liability for
misrepresenting facts in reports to the legislature or a state
executive body. The author notes that the construction of the
new eastern span of the Bay Bridge was 10 years late and over $5
billion over budget. This project particularly illustrated how
problematic it can be when department and agency heads are not
held accountable.
During Joint Legislative Audit Committee hearings in the early
2000s to review the state audit on the Bay Bridge project, it
was found that Caltrans and other agency heads had withheld
information from the Legislature or misrepresented certain
facts, such as cost overruns and evidence of project
mismanagement.
The Department of Finance opposes this bill stating it is
unnecessary and could result in additional costs to the state.
However, this bill contributes to current law that seeks to
ensure that all state reports, as specified, are true, accurate
and complete. This bill also provides accountability for those
state employees responsible for certifying the accuracy of these
reports.
REGISTERED SUPPORT / OPPOSITION :
SB 1337
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Support
California Tax Payer Association
Opposition
Department of Finance
Analysis Prepared by : William Herms / A. & A.R. / (916)
319-3600