BILL ANALYSIS Ó AB 757 Page 1 Date of Hearing: May 15, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 757 (Roger Hernandez) - As Amended: May 2, 2013 Policy Committee: Water, Parks and Wildlife Vote: 15-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the Department of Parks & Recreation (DPR) to implement the recommendations of the State Controller's Office regarding violations of out-of-class (OOC) assignments. Specifically, this bill: 1)Requires DPR, by July 1, 2014 implement action, to the extent practicable, of policy recommendations contained in an audit review report on DPR conducted by the State Controller's Office (SCO) concerning compensation for employees working OOC assignments. 2)Requires DPR to report to the Legislature on or before July 31, 2014. 3)Sunsets this bill on December 31, 2014. FISCAL EFFECT Increased costs to DPR to implement the SCO recommendations, including reporting and training, potentially in the $100,000 range, offset by the potential recovery of revenue from employees who unlawfully received OOC payments. COMMENTS 1)Background and Purpose. On July 15, 2012 the Sacramento Bee reported that a high-ranking official at DPR carried out a secret vacation buy-out program during 2011 for himself and other headquarters staff. The Bee reported that the buy-backs cost more than $271,264 and that DPR participated in AB 757 Page 2 additional unauthorized vacation buy-backs in 2004, 2005 and 2008. The vacation buy-outs were the subject of internal audits by DPR and the Attorney General's Office, and are also being investigated by the Bureau of State Audits. The State Controller's Office (SCO) issued a review in December 2012 and identified internal control weaknesses and/or violations of DPR and State policies that created a risk of abuse, fraud and overpayments to employees for OOC assignment pay. This bill requires DPR to implement the recommendations provided in the December 2012 SCO review. Analysis Prepared by : Jennifer Galehouse / APPR. / (916) 319-2081