BILL ANALYSIS �
SB 806
Page A
SENATE THIRD READING
SB 806 (Veterans Affairs Committee)
As Amended September 1, 2011
2/3 vote. Urgency
SENATE VOTE :37-0
PUBLIC EMPLOYMENT 5-0 VETERANS AFFAIRS
9-0
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|Ayes:|Furutani, Mansoor, Allen, |Ayes:|Cook, Pan, Atkins, Block, |
| |Ma, Wieckowski | |Nielsen, |
| | | |V. Manuel P�rez, |
| | | |Williams, Yamada, Beth |
| | | |Gaines |
|-----+--------------------------+-----+--------------------------|
| | | | |
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APPROPRIATIONS 17-0
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|Ayes:|Fuentes, Harkey, | | |
| |Blumenfield, Bradford, | | |
| |Charles Calderon, Campos, | | |
| |Davis, Donnelly, Gatto, | | |
| |Hall, Hill, Lara, | | |
| |Mitchell, Nielsen, Norby, | | |
| |Solorio, Wagner | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : This bill extends the statute of limitations for
salary overpayments to state employees on leave for duty with
the National Guard. Specifically:
1)Determines, if the state finds, that an overpayment of
compensation has been made to a state employee on a leave of
absence for active military duty as a member of the California
National Guard (Guard).
2)States that if 1) above is determined then administrative
action to recover salary overpayment must be initiated within
six years from the date of overpayment, notwithstanding
SB 806
Page B
existing law.
3)Establishes that the state is not mandated to recover such an
overpayment if all of the following conditions apply:
a) The recipient currently holds the military pay grade of
E-1 through E-5, inclusive;
b) The overpayment was not due to fraud, misrepresentation
or willful nondisclosure on the part of the recipient;
c) The overpayment was received without fault on the part
of the recipient, and,
d) Recovery of the overpayment would be against equity and
good conscience.
4)Contains an urgency clause.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable administrative costs, particularly
to the State Controller's Office. Costs will be offset to an
unknown degree by recovering overpayments.
COMMENTS:
There is in most cases equity in, at some point in the passing
of time, disallowing claims. "Statutes of limitation are passed
to prevent the production of stale claims when, from the lapse
of time, it has become difficult or impossible to furnish the
requisite proof to defeat them."<1> However, there are some
claims for which there is no statute of limitations, for
example, the crime of murder, because we as a society agree that
it is never too late for the court system to take up such
claims.
This bill presents a balancing of equities question for the
members: How long after the date of overpayment is it fair to
attempt to recover funds from employees? This bill proposes to
move that date back three years, from three to six years post
overpayment. If funds were paid to an employee to which the
employee was not entitled, it might be argued that there should
be no time limit at all on when the recovery might occur, after
all, the funds should never have gone to the employee in the
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<1> CA Code of Civil Procedure Section 312, Note 4.
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first place. Particularly in cases of large overpayments, one
could reasonably argue that the employee should have known he or
she was being overpaid and taken steps him or herself to rectify
the overpayment.
Not including cases of fraud or large overpayments, it may be
very difficult for employees, particularly enlisted members at
more junior ranks, to confirm or refute a notice of overpayment
after six years. Moreover, if an overpayment was made by
mistake years ago and was not of an amount to give implicit
notice to the employee, it might create a hardship situation if
payment were pursued now, particularly for lower ranking
personnel.
The bill contains a mechanism to consider the circumstances of
individual cases for lower ranking servicemembers. A
servicemember must meet all of the exception elements to be
eligible. He or she must be a junior troop, holding one of the
first five enlisted ranks. The servicemember must not have
obtained the overpayment through fraud, misrepresentation,
willful nondisclosure, or fault. Finally, recovery of the
overpayment must not be unfair and against good conscience. If
all of the foregoing apply, the state is not mandated to attempt
to recover the overpayment.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550
FN:
0002539