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