BILL NUMBER: AB 782	CHAPTERED
	BILL TEXT

	CHAPTER  107
	FILED WITH SECRETARY OF STATE  JULY 25, 2011
	APPROVED BY GOVERNOR  JULY 25, 2011
	PASSED THE SENATE  JULY 1, 2011
	PASSED THE ASSEMBLY  JULY 7, 2011
	AMENDED IN SENATE  JUNE 7, 2011

INTRODUCED BY   Assembly Member Brownley

                        FEBRUARY 17, 2011

   An act to amend Sections 20222.5 and 22797 of the Government Code,
relating to public employee benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 782, Brownley. Public employee benefits: audits.
   The Public Employees' Retirement Law (PERL) creates the Public
Employees' Retirement System (PERS), which provides a defined benefit
to its members based on age at retirement, service credit, and final
compensation. PERL authorizes the Board of Administrator of PERS
during the course of an audit, to require each state agency, school
employer, and contracting agency, to provide information or make
available for examination or copying at a specified time and place,
or both, books, papers, any data, or records, as deemed necessary by
the board to determine the correctness of retirement benefits,
reportable compensation, enrollment in, and reinstatement to, this
system.
   The Public Employees' Medical and Hospital Care Act also
authorizes the board or an authorized representative to perform
audits of each employer and to require the employer to provide
information or make available for examination and copying books,
papers, data, and records, as specified.
   This bill would require the board to notify the subject of an
audit, before initiating the audit, of the estimated time required to
complete the audit. The bill would specify factors upon which the
estimate would be based. The bill would authorize the board to assess
a reasonable charge upon the employer to recover additional costs
incurred for the excess time to complete the audit if an audit
requires an excess of the time estimated, except that a contracting
agency would not be assessed for delays during the course of an audit
that are reasonably outside of the agency's control.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 20222.5 of the Government Code is amended to
read:
   20222.5.  (a) The board may, during the course of an audit,
require each state employer, school employer, including each school
district represented by a school employer, and contracting agency, to
provide information or make available for examination or copying at
a specified time and place, or both, books, papers, any data, or
records, including, but not limited to, personnel and payroll
records, as deemed necessary by the board to determine the
correctness of retirement benefits, reportable compensation,
enrollment in, and reinstatement to this system.
   (b) Before initiating an audit, the board shall notify the subject
of the audit of the estimated time required to complete the audit.
The estimate shall be based upon various factors, including, but not
limited to, the following:
   (1) The number of employees.
   (2) Employment classifications.
   (3) Benefits.
   (4) Contract provisions.
   (5) Geographical location.
   (6) Time required for audits of comparable entities.
   (7) Additional time factors raised by the subject of the audit.
   (c) If an audit requires an excess of the time estimated, the
board may assess a reasonable charge upon the employer to recover
additional costs incurred for the excess time to complete the audit.
A contracting agency shall not be assessed for delays during the
course of an audit that are reasonably outside of the agency's
control.
   (d) The information obtained from an employer under this section
shall remain confidential pursuant to Section 20230.
  SEC. 2.  Section 22797 of the Government Code is amended to read:
   22797.  (a) The board or an authorized representative may perform
audits of each employer and may, at a specified time and place,
require the employer to provide information or make available for
examination and copying books, papers, data, and records, including,
but not limited to, personnel and payroll records, as deemed
necessary by the board to determine compliance with the provisions of
this part.
   (b) Before initiating an audit, the board shall notify the subject
of the audit of the estimated time required to complete the audit.
The estimate shall be based upon various factors, including, but not
limited to, the following:
   (1) The number of employees.
   (2) Employment classifications.
   (3) Benefits.
   (4) Contract provisions.
   (5) Geographical location.
   (6) Time required for audits of comparable entities.
   (7) Additional time factors raised by the subject of the audit.
   (c) If an audit requires an excess of the time estimated, the
board may assess a reasonable charge upon the employer to recover
additional costs incurred for the excess time to complete the audit.
A contracting agency shall not be assessed for delays during the
course of an audit that are reasonably outside of the agency's
control.
   (d) The information obtained from an employer shall remain
confidential.