BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 692
                                                                  Page  1

          Date of Hearing:   March 30, 2011

            ASSEMBLY COMMITTEE ON PUBLIC EMPLOYEES, RETIREMENT AND SOCIAL 
                                      SECURITY
                              Warren T. Furutani, Chair
                  AB 692 (Hall) - As Introduced:  February 17, 2011
           
          SUBJECT  :   Civil service: employee hearings.

           SUMMARY  :   Requires that state employee termination hearings or 
          investigations take priority over all other cases that were 
          initiated within the previous six months by the State Personnel 
          Board (SPB).

           EXISTING LAW  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.

          The SPB is required 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.

          Should the employee prevail in his or her appeal, 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  :   Unknown.

           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. SBP 
          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.









                                                                  AB 692
                                                                  Page  2

          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."

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Correctional Supervisors Organization (Sponsor)
          Service Employees International Union California
          Service Employees International Union Local 1000

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Karon Green / P.E., R. & S.S. / (916) 
          319-3957