Whistleblower protection: state and local government procedures.

(1) Existing law authorizes a city, county, or city and county auditor or controller to maintain a whistleblower hotline to receive calls from persons who have information regarding fraud, waste, or abuse by local government employees, as specified. Existing law authorizes the auditor or controller to refer calls received on the whistleblower hotline to the appropriate government authority for review and possible investigation. During the initial review of a call, existing law requires the auditor, controller, or other appropriate governmental agency to hold in confidence information disclosed through the whistleblower hotline, as specified. Upon receiving specific information that an employee or local government has engaged in an improper government activity, existing law authorizes a city or county auditor or controller to conduct an investigative audit of the matter, as specified. Existing law requires the identity of the individual or individuals reporting the improper government activity and the subject employee or employees to be kept confidential, except as specified. Existing law defines "fraud, waste, or abuse" to mean any activity by a local agency or employee that is undertaken in the performance of the employee's official duties, as described, that is in violation of any local, state, or federal law or regulation relating to, among other things, corruption. This bill would also authorize a city, county, or city and county auditor or controller to maintain a whistleblower hotline to receive calls from persons who have information regarding improper governmental activity, and would recast information regarding fraud, waste, or abuse by local government employees as improper governmental activity. The bill would instead authorize a city or county auditor or controller, or auditor's or controller's designee, to conduct an investigative audit of the matter upon receiving specific information that an employee or local government has engaged in a fraud, waste, or abuse or improper governmental activity, as specified. The bill would also require the identity of the individual or individuals reporting the fraud, waste, or abuse and the subject employee or employees to be kept confidential, except as specified. The bill would expand the above-described duties and authorizations to the auditor's or controller's designee, as specified. The bill would revise the definition of "fraud, waste, or abuse" to also define "improper governmental activity," and expand the scope of those terms to include activity by a local agency, employee, or contractor or subcontractor. (2) Existing law, the California Whistleblower Protection Act, prohibits an employee from directly or indirectly using or attempting to use the official authority or influence of the employee to interfere with a person's rights to disclose improper activity. The act requires the California State Auditor to administer these provisions and to investigate and report on improper governmental activities. The act defines "improper governmental activity" to mean an activity by a state agency or by an employee that is, among other things, undertaken in the performance of the employee's duties and that meets specified criteria, including that it is in violation of any state or federal law or regulation, including, among other things, corruption. This bill would specify that the list of violations of any state or federal law or regulation within the definition of an "improper governmental activity" also includes the misuse of state expenditures, including allocations, loans, or grants. The act requires the California State Auditor to create the means for the submission of allegations of improper governmental activity by, among other things, electronic submission through an internet website portal, as specified, and requires the auditor to create an alternative system for submission to an independent investigator of allegations of improper governmental activity engaged or participated in by employees of the California State Auditor's Office, as specified. The act requires the independent investigator to conduct those investigations, as specified, and to, if the independent investigator determines it to be appropriate, report that information to the Attorney General, specified policy committees of the Senate and Assembly, and other authorities, as specified. This bill would require the independent investigator to, as described above, also report information to the Assembly and Senate budget committees and the Joint Committee on Legislative Audit. The act requires the California State Auditor to, after investigating an allegation and finding that a state agency or employee may have engaged or participated in an improper governmental activity, prepare an investigative report and send a copy of the report to, if appropriate, the Attorney General, specified policy committees of the Senate and Assembly, and other authorities, as specified. This bill would require the California State Auditor to, if appropriate, also send a copy of the report to the Assembly and Senate budget committees and the Joint Committee on Legislative Audit. Existing law authorizes a city, county, or city and county auditor or controller who is elected to office to maintain a whistleblower hotline to receive calls from persons who have information regarding specified conduct by local government employees, and requires a city, county, or city and county auditor or controller who is appointed by, or is an employee of, a legislative body or the government agency that is governed by the city, county, or city and county, to obtain approval of that legislative body or the government agency prior to establishing the whistleblower hotline. This bill would authorize a city, county, or city and county auditor or controller to identify a designee within the office responsible for the maintenance of the whistleblower hotline as described above. Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest. This bill would make legislative findings to that effect.