BILL ANALYSIS Ó AB 692 Page 1 ASSEMBLY THIRD READING AB 692 (Hall) As Amended May 27, 2011 Majority vote PUBLIC EMPLOYEES 4-1 APPROPRIATIONS 12-5 ----------------------------------------------------------------- |Ayes:|Furutani, Allen, Ma, |Ayes:|Fuentes, Blumenfield, | | |Wieckowski | |Bradford, Charles | | | | |Calderon, Campos, Davis, | | | | |Gatto, Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Mansoor |Nays:|Harkey, Donnelly, | | | | |Nielsen, Norby, Wagner | | | | | | ----------------------------------------------------------------- SUMMARY : Authorizes a state employee appealing a termination action to request a priority hearing from the State Personnel Board (SPB) if an evidentiary hearing has not begun within six months of the filing of the appeal. Within 60 days of receiving the request, SPB must schedule an evidentiary hearing. SPB is also authorized to use electronic media to conduct all, or any portion of, any hearing. EXISTING LAW : 1)Establishes the SPB as a neutral body responsible for administering a merit system of civil service employment within California state government. As part of its responsibility, the SPB has established administrative procedures to resolve appeals of alleged violations of civil service laws and rules. 2)Requires SPB to issue a decision within a reasonable time after the conclusion of the hearing or investigation. For most appeals, the SPB has six months from the filing of an appeal or 90 days from its submission, whichever is less, to decide the case. The SPB may extend this period by 45 days, as specified. 3)States that should the employee prevail in his or her appeal, AB 692 Page 2 the SPB has the authority to grant the following remedies: reinstatement including back salary, benefits, and interest at 7%; change in work assignment and/or location; or, assignment of an alternative or passing score on an examination. The SPB may also grant compensatory damages in discrimination appeals. FISCAL EFFECT : According to the Assembly Appropriations Committee, minor and absorbable cost for SPB. COMMENTS : Adverse actions are formal disciplinary measures taken against state civil service employees. They include dismissals, suspensions, demotions, reductions in salary, disciplinary transfers, and formal/official reprimands. SPB reports that it received 1,273 appeals of adverse actions in 2008. Of that total, 316 were sustained, six were revoked, eight were modified, and the remaining 603 were disposed of through pre-hearing settlement agreements. According to supporters, "The SPB has over 3,800 SPB employee cases to hear and not enough Judges to hear them. When an employee is terminated they and their family suffer the loss of their income and health benefits. SPB does not prioritize their cases by importance but by blocks of time. If SPB can hear more cases in a year by hearing numerous small cases that require short blocks of time, then that is how they are prioritized. "Many of the terminated employees have to wait up to 18 months to receive a hearing date because their cases require larger blocks of time. Many terminated employees win their SPB cases. When this happens and it often does, the state has to pay the employee back wages, which more often than not is for over 2 years. This is a substantial amount of money to pay someone for not working. Also, the employee is allowed to charge the state 7% interest of that money. During this 2-year period the employee and their family have been known to suffer devastating losses. The loss of a home, credit, and in some cases a divorce to name a few. It is cruel to make an employee wait up to and in some cases beyond 2-years to find out that they should not have been terminated." Analysis Prepared by : Karon Green / P.E., R. & S.S. / (916) 319-3957 AB 692 Page 3 FN: 0000942