BILL ANALYSIS Ó
AB 1753
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
1753 (Obernolte) - As Amended March 30, 2016
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|Policy |Public Employees, |Vote:| 6 - 0 |
|Committee: |Retirement/Soc Sec | | |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill:
1)Specifies that the date of an overpayment involving leave
credits is the later of the following two dates:
a) When the employee receives compensation in exchange for
AB 1753
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erroneously credited leave.
b) The date that the state discovers fraud, embezzlement,
or falsification, if applicable.
1)Requires administrative action to recover overpayments to be
initiated by providing written notice to the employee within
three years of the date of overpayment.
FISCAL EFFECT:
Negligible state costs as the California Department of Human
Resources (CalHR) already provides guidance to state agencies
that reflects the provisions of this bill.
COMMENTS:
1)Purpose and background: According to the author, this bill
will help the state recover overpayments to state employees by
clarifying when an overpayment actually occurs. This bill
adopts recommendations from the California State Auditor on
possible strategies to recover the overpayment of leave
credits. These recommendations came from their 2014 report
that found that as of the end of 2013, the value of erroneous
leave hours was nearly $6.4 million. The State Auditor report
argues that the state faces obstacles in recovering these
overpayments because while state agencies are required to
initiate collection efforts on overpayments within three years
of an overpayment occurring, existing law does not explicitly
define when an overpayment occurs. As a result, in the event
of litigation a court may find that the state waited too long
to recover overpayments.
AB 1753
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Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081