BILL ANALYSIS                                                                                                                                                                                                    





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          GOVERNOR'S VETO
          AB 2275 (Dymally)
          As Amended August 23, 2004
          2/3 vote
           
           
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          |ASSEMBLY:  |51-28|(May 25, 2004)  |SENATE: |24-14|(August 25,    |
          |           |     |                |        |     |2004)          |
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          |ASSEMBLY:  |49-30|(August 26,     |        |     |               |
          |           |     |2004)           |        |     |               |
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          Original Committee Reference:    P.E.,R. & S.S.  

           SUMMARY  :  Repeals requirements to annually establish employment  
          goals and timetables based on race or gender that were  
          invalidated by the California Court of Appeal in  Connerly v.  
          State Personnel Board  , and re-title Chapter 12 of Part 2,  
          Division 5, Title 2 of the Government Code from "Affirmative  
          Action Program" to "State Equal Employment Opportunity Program."  


           The Senate amendments  delete provisions which require the State  
          Personnel Board (SPB) to track and maintain information  
          regarding the amount of staff resources and the costs expended  
          on discrimination complaint and litigation activity.  

          EXISTING LAW  : 

          1)Requires each state agency and department to establish an  
            effective affirmative action program with specified  
            components, and to establish goals and timetables designed to  
            overcome any identified underutilization of minorities and  
            women in their respective organizations.

          2)Requires SPB conduct specified activities in this regard.   
            Portions of these provisions have been held to be in violation  










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            of the California Constitution and the United States  
            Constitution.

           AS PASSED BY THE ASSEMBLY  , this bill:
           
           1)Repealed Chapter 12 (commencing with Section 19790) of Part 2  
            of Division 5 of Title 2 of the Government Code. 

          2)Required each state agency to establish an equal opportunity  
            program to provide equal employment opportunity to all state  
            job applicants and employees, based on merit, to contain  
            specified components. 

          3)Required SPB to conduct specified activities in this regard.
           
          FISCAL EFFECT  :  Minor fiscal impact for provisions of current  
          law.  Unknown costs to departments for developing a system to  
          track their resources and costs associated with discrimination  
          complaints and lawsuit, that should be absorbable by state  
          departments as a one-time cost.  SPB will provide technical  
          guidance in developing tracking systems. 

           COMMENTS  :  According to SPB, "The purpose of this bill is to  
          update and strengthen current equal employment opportunity (EEO)  
          and non-discrimination requirements in the state civil service,  
          and to reduce growing state costs associated with discrimination  
          complaints and lawsuits.

          "The SPB supports this bill because it will strengthen  
          California's merit civil service system by better ensuring equal  
          employment opportunity and non-discrimination, and it will help  
          reduce the annual multi-million dollar cost to the state for  
          resolving employment discrimination complaints and lawsuits.

          "In 2001, the California Court of Appeal ruled that provisions  
          in the state's affirmative action/equal employment opportunity  
          statutes requiring the establishment of annual employment goals  
          and timetables based on race and gender violated the California  
          Constitution, as amended by Proposition 209, and invalidated  
          them.  This bill would repeal the invalidated statutory  
          sections.











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          "With the passage of Proposition 209 in 1996, there has been a  
          good deal of confusion about EEO requirements in the state civil  
          service.  Many state managers have the mistaken attitude that  
          they no longer have to be concerned with EEO matters.  This has  
          resulted in a decline in efforts to fully meet equal employment  
          opportunity requirements.  There have been many examples of  
          this, including the following:

           Governor Davis failed to issue the traditional Executive Order  
            reaffirming the state's commitment to EEO during his  
            administration. Governor Schwarzenegger signed a new Executive  
            Order reaffirming the state's commitment to EEO;  
           The lack of fully developed EEO plans in some departments,  
            including some that did not provide their employees with  
            written procedures for filing complaints; 
           Departments failing to submit the results of their annual  
            workforce analysis and action plan to the SPB for approval by  
            the July 1st statutory deadline;
           Departments not complying with the statutory requirement that  
            the EEO Office report directly to the department director;
           Some departments using untrained EEO investigators;
           EEO investigations taking far too long to meet the legal  
            requirement of completing investigations in a timely manner; 
           Some incomplete EEO investigative reports; 
           EEO Office staff being reduced; 
           A lack of EEO training for departmental managers and  
            supervisors;
           A lack of concern over the cost of dealing with discrimination  
            issues, etc.; and,
           An increase in the number of discrimination complaints from  
            state employees.  Formal discrimination complaints filed by  
            state employees with their department have increased from 387,  
            reported by departments in 1995 prior to Proposition 209, to a  
            high of 691, in 2001 after passage of Proposition 209.  This  
            is a 78.6% increase in workload and associated costs.

          "This bill would clarify current EEO requirements and clearly  
          express the state's equal employment opportunity and  
          non-discrimination policy in statute, thereby reinforcing the  
          importance of this policy.

          "Discrimination complaints and lawsuits are a significant cost  










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          to state departments, yet no one is currently monitoring these  
          costs.  No one knows the full cost of dealing with employment  
          discrimination complaints and lawsuits in the state civil  
          service.  Partial cost information totaling $36.9 million was  
          collected by the SPB in 2002 from 38 out of 89 departments  
          surveyed.  Many departments either refuse or are extremely  
          reluctant to provide cost information when asked by the SPB.  It  
          is important to have accurate cost information to evaluate the  
          effectiveness of state EEO policies and efforts in order to hold  
          state departments accountable.  Any costs resulting 
          from a lack of effort to prevent or correct employment  
          discrimination are a waste of the taxpayer 
          dollar.  This cost information needs to be public information to  
          assure appropriate scrutiny of departmental practices and  
          accountability.  This bill would require state departments to  
          provide cost information associated with discrimination  
          complaints and lawsuits to the SPB, which information in turn  
          would be incorporated into the SPB's Annual Report to the  
          Legislature on Discrimination Complaint Activity in the State  
          Civil Service."  

           GOVERNOR'S VETO MESSAGE  :

               My Administration is firmly committed to ensuring  
               equal employment opportunities for anyone interested  
               in public service with the State of California and  
               that is why my Administration issued Executive Order  
               S-6-04 in March of this year which clearly sets forth  
               the States employment opportunity policies.

               In a recent court decision,  Connerly v. State  
               Personnel Board  , the Third District Court of Appeals,  
               invalidated specified sections of the State Civil  
               Service Affirmative Action Program as  
               unconstitutional.  However, the sections that provide  
               for data collection and reporting were not found  
               unconstitutional and were not invalidated.   
               Accordingly, under both state and federal law, state  
               agencies have a responsibility to maintain statistical  
               information on the composition of their workforce, and  
               s ate agencies are required by federal law to identify  
               racial, gender and ethnic under-representation in  










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               their workforce.  I fully expect that all state  
               agencies will comply with this responsibility and  
               maintain meaningful information on the composition of  
               the state workforce.
           
               I would consider legislation that repeals those  
               provisions of law that have been judicially  
               invalidated.  I encourage the State and Consumer  
               Services Agency to work with the proponents of this  
               legislation to craft a measure that will eliminate the  
               invalid statutory provisions, but does not impose  
               additional reporting and recordkeeping requirements.

           
          Analysis Prepared by  :    Clem Meredith / P.E., R. & S.S. / (916)  
          319-3957 


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