COMPLIANCE REVIEW REPORT 

BUSINESS, CONSUMER SERVICES AND 
HOUSING AGENCY 

 

 

 

 

 

 

Compliance Review Unit 

State Personnel Board 

July 7, 2016 

 

TABLE OF CONTENTS 

Introduction ..................................................................................................................... 1 
Executive Summary ........................................................................................................ 1 
Background ..................................................................................................................... 2 
Scope and Methodology .................................................................................................. 2 
Findings and Recommendations ..................................................................................... 3 
Equal Employment Opportunity ................................................................................. 3 
Mandated Training ..................................................................................................... 4 
Departmental Response .................................................................................................. 5 
SPB Reply ....................................................................................................................... 5 

 

INTRODUCTION 

Established by the California Constitution, the State Personnel Board (the SPB or 
Board) is charged with enforcing and administering the civil service statutes, prescribing 
probationary periods and classifications, adopting regulations, and reviewing 
disciplinary actions and merit-related appeals. The SPB oversees the merit-based 
recruitment and selection process for the hiring of over 200,000 state employees. These 
employees provide critical services to the people of California, including but not limited 
to, protecting life and property, managing emergency operations, providing education, 
promoting the public health, and preserving the environment. The SPB provides 
direction to departments through the Board’s decisions, rules, policies, and consultation. 

Pursuant to Government Code section 18661, the SPB’s Compliance Review Unit 
(CRU) conducts compliance reviews of appointing authority’s personnel practices in five 
areas: examinations, appointments, equal employment opportunity (EEO), personal 
services contracts (PSC’s), and mandated training to ensure compliance with civil 
service laws and board regulations. The purpose of these reviews is to ensure state 
agencies are in compliance with merit related laws, rules, and policies and to identify 
and share best practices identified during the reviews. The SPB conducts these reviews 
on a three-year cycle. 

The CRU may also conduct special investigations in response to a specific request or 
when the SPB obtains information suggesting a potential merit-related violation. 

EXECUTIVE SUMMARY 

The CRU conducted a routine compliance review of Business, Consumer Services and 
Housing Agency (BCSH) personnel practices in the areas of EEO from October 1, 2014, 
through September 30, 2015, and mandated training from October 1, 2013, through 
September 30, 2015. There were no examinations conducted, no civil service 
appointments made, and no PSC’s executed during the compliance review period. The 
following table summarizes the compliance review findings. 

Area 

Finding 

Severity 

Equal Employment 
Opportunity 

Equal Employment Opportunity Program 
Complied with Civil Service Laws and Board 
Rules 

In Compliance 

Mandated Training 

Mandated Training Complied with Statutory 
Requirements 

In Compliance 

 

A color-coded system is used to identify the severity of the violations as follows: 

. Red = Very Serious 
. Orange = Serious 
. Yellow = Non-serious or Technical 
. Green = In Compliance 

 
BACKGROUND 

The BCSH, through its departments, licenses and regulates professionals and 
businesses in California to protect consumers; preserves, expands, and funds safe and 
affordable housing opportunities; investigates and researches earthquake related issues 
in order to reduce earthquake risks. Additionally, the BCSH protects the civil rights of all 
Californians from acts of hate violence and unlawful discrimination in employment, 
housing, and public accommodations. 

The BCSH oversees the following state departments – the Department of Fair 
Employment and Housing, the Department of Consumer Affairs, the Department of 
Alcoholic Beverage Control, the Department of Housing and Community Development, 
the California Housing Finance Agency, the Department of Business Oversight, the 
Seismic Safety Commission, the Alcoholic Beverage Control Appeals Board, and the 
Horse Racing Board. 

SCOPE AND METHODOLOGY 

The scope of the compliance review was limited to reviewing the BCSH EEO program 
from October 1, 2014, through September 30, 2015, and mandated training from 
October 1, 2013, through September 30, 2015. The primary objective of the review was 
to determine if BCSH personnel practices, policies, and procedures complied with state 
civil service laws and board regulations, and to recommend corrective action where 
deficiencies were identified. 

The BCSH did not conduct any examinations or make any civil service appointments 
during the compliance review period. The BCSH also did not execute any PSC’s 
subject to the Department of General Services approval and thus our procedural review 
during the compliance review period. 

 

The review of the BCSH EEO program included examining written EEO policies and 
procedures; the EEO Officer’s role, duties, and reporting relationship; the internal 
discrimination complaint process; the upward mobility program; the reasonable 
accommodation program; the discrimination complaint process; and the Disability 
Advisory Committee (DAC). 

In addition, the BCSH’s mandated training was reviewed to ensure all employees 
required to file statements of economic interest were provided ethics training, and that 
all supervisors were provided basic supervisory and sexual harassment prevention 
training within statutory timelines. 

On June 22, 2016, an exit conference was held with the BCSH to explain and discuss 
the CRU’s initial findings and recommendations. The BCSH was found to be in 
compliance in all areas reviewed during the compliance review period. Therefore, no 
departmental response is required. 

FINDINGS AND RECOMMENDATIONS 

Equal Employment Opportunity 

Each state agency is responsible for an effective EEO program. (Gov. Code, § 19790.) 
The appointing power for each state agency has the major responsibility for monitoring 
the effectiveness of its EEO program. (Gov. Code, § 19794.) To that end, the appointing 
power must issue a policy statement committed to EEO; issue procedures for filing, 
processing, and resolving discrimination complaints; issue procedures for providing 
equal upward mobility and promotional opportunities; and cooperate with the California 
Department of Human Resources by providing access to all required files, documents 
and data. (Ibid.) In addition, the appointing power must appoint, at the managerial level, 
an EEO Officer, who shall report directly to, and be under the supervision of, the 
director of the department to develop, implement, coordinate, and monitor the 
department’s EEO program. (Gov. Code, § 19795.) 

Because the EEO Officer investigates and ensures proper handling of discrimination, 
sexual harassment and other employee complaints, the position requires separation 
from the regular chain of command, as well as regular and unencumbered access to the 
head of the organization. In a state agency with less than 500 employees, like the 
BCSH, the EEO Officer may be the Personnel Officer. 

Each state agency must establish a separate committee of employees who are 
individuals with a disability, or who have an interest in disability issues, to advise the 
head of the agency on issues of concern to employees with disabilities. (Gov. Code, § 
19795, subd. (b)(1).) The department must invite all employees to serve on the 
committee and take appropriate steps to ensure that the final committee is comprised of 
members who have disabilities or who have an interest in disability issues. (Gov. Code, 
§ 19795, subd. (b)(2).) 

The CRU reviewed the BCSH EEO program that was in effect during the compliance 
review period. 

FINDING NO. 1 – Equal Employment Opportunity Program Complied with Civil 
Service Laws and Board Rules 

 

After reviewing the policies, procedures, and programs necessary for compliance with 
the EEO program’s role and responsibilities according to statutory and regulatory 
guidelines, the CRU determined that the BCSH’s EEO program provided employees 
with information and guidance on the EEO process including instructions on how to file 
discrimination claims. Furthermore, the EEO program outlines the roles and 
responsibilities of the EEO Officer, as well as supervisors and managers. The EEO 
Officer, who is at a managerial level and is the Personnel Officer, reports directly to the 
Secretary of the BCSH. In addition, the BCSH has an established DAC. The BCSH 
completed a workforce analysis, which was submitted to the CRU. The BCSH also 
provided evidence of its efforts to promote EEO in its hiring and employment practices, 
to increase its hiring of persons with a disability, and to offer upward mobility 
opportunities for its entry-level staff. Accordingly, the BCSH EEO program complied with 
civil service laws and board rules. 

Mandated Training 

Each state agency shall offer at least semiannually to each of its filers an orientation 
course on the relevant ethics statutes and regulations that govern the official conduct of 
state officials. New filers must be trained within six months of becoming a filer. (Gov. 
Code, § 11146.3.) 

Each department must provide its new supervisors basic supervisory training within 
twelve months of appointment. (Gov. Code, § 19995.4, subd. (b) and (c.).) The training 
must be a minimum of 80 hours, 40 of which must be structured and given by a qualified 
instructor. The other 40 hours may be done on the job by a higher-level supervisor or 
manager. (Gov. Code, § 19995.4, subd. (b).) 

 

Additionally, each department must provide its supervisors two hours of sexual 
harassment prevention training every two years. New supervisors must be provided 
supervisory training within six months of appointment. (Gov. Code, § 12950.1, subd. 
(a).) 

The CRU reviewed the BCSH’s mandated training program that was in effect during the 
compliance review period. 

FINDING NO. 2 – Mandated Training Complied with Statutory Requirements 

 

The BCSH provided ethics training to its two new filers within six months and 
semiannual ethics training to its nine existing filers during the two-year calendar year 
period commencing in 2013. The BCSH had no new supervisors during the compliance 
review period. Furthermore, the BCSH provided sexual harassment prevention training 
to its nine existing supervisors every two years. Thus, the BCSH complied with 
mandated training requirements within statutory timelines. 

DEPARTMENTAL RESPONSE 

No departmental response was required since all areas reviewed were in compliance. 

SPB REPLY 

The BCSH was found to be in compliance in all areas reviewed during the compliance 
review period. Therefore, no further action is required.