BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 692|
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                                 THIRD READING


          Bill No:  AB 692
          Author:   Hall (D)
          Amended:  5/27/11 in Assembly
          Vote:     21

           
           SENATE PUBLIC EMPLOYMENT & RETIRE. COMM. :  4-0, 6/27/11
          AYES:  Negrete McLeod, Gaines, Padilla, Vargas
          NO VOTE RECORDED:  Walters

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  50-25, 6/1/11 - See last page for vote


           SUBJECT  :    Civil service:  employee hearings

           SOURCE  :     California Correctional Supervisors 
          Organization
                      Service Employees International Union, Local 
          1000


           DIGEST  :    This bill (1) authorizes a state employee 
          appealing a termination action to request a priority 
          hearing from the State Personnel Board (SPB) if an 
          evidentiary hearing has not begun within six months of the 
          filing of the appeal, (2) requires, within 60 days of 
          receiving the request, the SPB to schedule an evidentiary 
          hearing, and (3) authorizes the SPB to use electronic media 
          to conduct all, or any portion of, any hearing.

           ANALYSIS  :    
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          Existing law:

          1. Establishes the SPB which is responsible for 
             administering a merit system of civil service employment 
             within California state government, and establishing 
             administrative procedures to resolve appeals of alleged 
             violations of civil service laws and rules.

          2. Requires the SPB, when conducting a hearing or 
             investigation regarding an appeal by an employee, to 
             issue a decision within a reasonable time after the 
             conclusion of the hearing or investigation.

          3. Requires the SPB to issue a decision regarding most 
             appeals six months from the filing of an appeal or 
             ninety days from its submission, whichever is less.

          4. Allows the SPB to extend the six-month period by 45 days 
             upon a publication of substantial reasons for the 
             extension prior to the conclusion of the six-month 
             period.

          5. Allows an employee to waive the six-month or 90-day 
             period; however, should the employee not waive these 
             periods, a failure to render a timely decision by the 
             SPB constitutes an exhaustion of all available 
             administrative remedies.

          6. Provides that in cases involving complaints of 
             discrimination, harassment, or retaliation where the 
             executive officer renders a decision, the decision must 
             be rendered within four months of the filing of the 
             appeal.

          7. Provides that should a state employee prevail in his/her 
             appeal, the SPB has the authority to grant the following 
             remedies, including compensatory damages in 
             discrimination appeals:

             A.    Reinstatement including back salary, benefits, and 
                interest at seven percent.

             B.    Change in work assignment and/or location.

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             C.    Assignment of an alternative or passing score on 
                an examination.

          This bill:

          1. Authorizes an employee to make a written request for a 
             priority hearing by the SPB for an appeal of an action 
             that resulted in the employee's termination if an 
             evidentiary hearing has not commenced within six months 
             of the filing of the appeal.

          2. Requires the SPB to schedule an evidentiary hearing at a 
             location designated by the SPB within 60 days of receipt 
             of the written request.

          3. Authorizes the SPB to order all of, or a portion of, any 
             hearing to be conducted using electronic media pursuant 
             to SPB rules.

           Comments  

           Court Ruling on SPB Time Limits and Authority  .  In 
           California Correctional Peace Officers Association v. State 
          Personnel Board  (1995), 43 Cal.Rprtr.2d 693, 10 Cal.4th 
          1133, the court ruled that the requirement that the SPB 
          render a decision within the statutory time period is 
          directory, not mandatory, thus the board retains 
          jurisdiction over an employee's appeal notwithstanding its 
          failure to render a decision within statutory time limits.  
          In addition, the court ruled that if the SPB fails to 
          render a decision within the statutory time limit, the 
          employee may seek a writ of mandate either against the 
          board to compel compliance by a date certain or directly 
          against the employing authority to compel reversal of 
          adverse action.

          Finally, the court ruled that allowing a de novo (new) 
          hearing in superior court, if the SPB fails to timely 
          render a decision, that failure does not unconstitutionally 
          infringe upon the authority of the SPB over civil service 
          disciplinary actions.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   

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          Local:  No

           SUPPORT  :   (Verified  8/11/11)

          California Correctional Supervisors Organization 
          (co-source)
          Service Employees International Union, Local 1000 
          (co-source)
          California State Employees Association 


           ARGUMENTS IN SUPPORT  :    According to the author, "Existing 
          law does not give employee termination cases priority over 
          other employee cases, but permits non-monetary and/or small 
          monetary cases to cause termination cases to wait up to 18 
          months before they can receive a hearing date.  This bill 
          would authorize an employee to make a written request for a 
          priority hearing if an evidentiary hearing has not been 
          commenced within 6 months of the filing of the appeal."

          According to the bill's sponsors, "The SPB has over 3,800 
          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 which 
          results �in further] devastating loss.  The SPB prioritizes 
          cases by blocks of time rather than based on importance.  
          Many of the terminated employees have to wait up to 18 
          months to receive a hearing date because their case 
          requires longer blocks of time.  Many terminated employees 
          win their SPB cases, and when this happens, the State has 
          to pay someone for not working, �and] the employee is 
          allowed to charge the State 7% in interest on �the lost 
          income].  This bill would cut the cost to the State when 
          back pay is considered."


           ASSEMBLY FLOOR  :  50-25, 6/1/11
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, 
            Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hern�ndez, 
            Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Mitchell, Monning, Pan, Perea, Portantino, 

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            Skinner, Solorio, Swanson, Torres, Wieckowski, Williams, 
            Yamada, John A. P�rez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Fletcher, Beth Gaines, Grove, Hagman, Halderman, Harkey, 
            Jones, Knight, Logue, Mansoor, Miller, Morrell, Nestande, 
            Nielsen, Norby, Olsen, Silva, Smyth, Valadao, Wagner
          NO VOTE RECORDED:  Furutani, Garrick, Gorell, Jeffries, V. 
            Manuel P�rez


          CPM:mw  8/11/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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