Testimony by the Government Accountability Project (GAP)

on HB 2561 - 2001

 

    Thank you for considering testimony by the Government Accountability

Project (GAP) on HB 2561, legislation to strengthen employment rights for

government workers who exercise free speech rights to challenge betrayals of

the public trust. It deserves to be called the Taxpayer Protection Act,

because whistleblower laws are unsurpassed in their potential for

accountability to the taxpayers. It is long recognized that secrecy breeds

abuses of power and corruption, while sunlight is the best disinfectant for

those threats to the health of public institutions.

 

If approved, this bill will be a good government breakthrough by Arizona,

creating a composite state of the art for whistleblower protection. There are

no experiments here. All provisions are drawn from existing laws that have

been modified based on lessons learned, with proven track records of a

workable balance. There should not be any question that your initiative

uniquely sets the pace, however. No other state statute systematically

combines the most effective provisions that have stood the test of time as

this legislation.

 

My name is Tom Devine, and I serve as legal director of GAP, a non-profit,

nonpartisan public interest law firm that specializes in responsible

protection for genuine whistleblowers. We have led the public campaigns for

passage of the Whistleblower Protection Act of 1989 ("WPA")(federal

employees); Military Whistleblower Protection Act (armed services members);

numerous related statutes for private industry sectors from nuclear to

airlines; numerous state whistleblower laws, and most recently a model law 

 

    While whistleblower protection laws are increasingly popular, in many

cases the rights have been largely symbolic and therefore counterproductive.

Employees risking retaliation thought they had genuine protection, when in

reality there was no realistic chance to defend themselves. Acting on

"rights" contained in Trojan Horse whistleblower laws has meant the

near-certainty that a legal forum would formally endorse the retaliation,

leaving reprisal victims far worse off than if no protection had been in

place. Review of track records over 23 years reveals numerous lessons

learned, and corresponding solutions that have corrected mistakes and closed

loopholes.

 

GAP labels token laws as "cardboard shields," because anyone relying on them

is sure to die professionally. We view genuine whistleblower laws as "metal

shields," behind which an employee's career has a fighting chance to survive.

The reasons your bill is a metal shield are summarized below.

 

* "No loopholes" coverage. It provides comprehensive protection, for "any"

disclosure of significant misconduct, without exception for form, content or

audience, except where information's release is specifically barred by

statute. It provides protection against the full scope of harassment, in all

settings that could spark retaliation - including preemptive strikes against

employees "about to" disclose misconduct, and mistaken perceptions that

employees have blown the whistle.

 

* Right not to violate the law. The bill protects those who walk their talk

by refusing to violate the law themselves. This can prevent the need for

disclosures.

 

* Coverage for confidential disclosures. By protecting oral disclosures, the

bill maximizes the flow of information by those who would remain silent

without the right to proceed anonymously.

 

* Anti-gag order provision. The bill preempts prior restraint through agency

gag orders that could cancel free speech protections before a disclosure is

even made.

 

* Forums free from conflict of interest. Many laws lock in conflict of

interest by restricting employees to hearings by boards within the same

administrative bureaucracy that a whistleblower challenges. This bill breaks

the conflict of interest by giving employees a day in court before a jury

trial of the citizens whom they risk retaliation to defend, or by an

arbitrator selected through a "strike" process of mutual consent.

 

* Modern, realistic burdens of proof. The bill gives whistleblowers a

fighting chance to win when they have their day in court, by adopting the

modern burdens of proof in every major good government statute over the last

decade. Even the World Bank has adopted this standard to protect disclosures

challenging fraud in its investments. This means workers establish a prima

facie case by demonstrating that protected activity is a contributing factor

in causing a challenged personnel action. Then the burden of proof switches

to the employer to demonstrate by clear and convincing evidence that the same

action would have occurred for legitimate, independent reasons in the absence

of dissent.

 

* Realistic statute of limitations. No whistleblower law can be effective if

employees are not aware of their rights until after the time passes to act.

This has been the Achilles heel for many state statutes. The bill sets a 90

statute of limitations, the minimum necessary for reprisal victims to have a

fair chance of acting on their rights.

 

* Relief for the full scope of consequences. The bill compensates for the

full scope of direct, indirect and future consequences of reprisal, including

attorney fees, interim relief during appeals, and a transfer preference to

facilitate a fresh start instead of having to go to work for management whom

the employee has just defeated in a lawsuit.

 

* Personal accountability for wrongdoers. The bill deters reprisal by giving

those who retaliate something to lose, through performance standards

requiring compliance with the law, and disciplinary investigations of those

found guilty of violations.

 

* Additive, not substitutive protection. The bill does not cancel preexisting

constitutional or common law rights.

 

    Of course, almost any proposal can be improved. The law could help to

make more of a difference in correcting institutional abuses of power - the

point of whistleblowing - if it provided for investigation and corrective

action of alleged misconduct disclosed by the employee.

 

    Perhaps most significant, there is one amendment that would effectively

maintain the goal of preventing chaos and the necessity of reinventing the

linguistic wheel, without tying the bill to federal law:

 

"To promote clarity and prevent uncertainty about the rights and

responsibilities of all parties, where possible the terms in this Article

shall have a consistent meaning with those having established definitions in

analogous whistleblower statutes, including any already applicable to Arizona

citizens."

 

The Arizona language already has been adopted, and in some cases translated

through decades of case law, in ranging from municipal to international.

 

This suggested language also would prevent the worst scenario, when employers

are liable for the same type of personnel disputes under different laws with

different meanings for the same language. That could be the case for numerous

federal statutes that already cover Arizona corporate, as well as state and

municipal public employees for narrowly limited scenarios (i.e., compliance

with pollution and airline safety laws.) It could deter contradictory

interpretations of identical language and prevent a lot of unnecessary future

confusion, and cases, if we make a limited investment now to lock in

certainty for employers to know what is expected of them, and for

whistleblowers what these rights mean. 

 

    While not a panacea, this legislation represents the current state of the

art for whistleblower protection. It creates the freedom for government

employees to be public servants instead of bureaucrats. For that reason, you

have a standing invitation for GAP to work with your staff on any

contribution your office finds helpful. The taxpayers of Arizona owe

Representatives Graf, Brimhall and Cardomine a debt of gratitude for their

good government leadership on this issue.