BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 806|
|Office of Senate Floor Analyses | |
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UNFINISHED BUSINESS
Bill No: SB 806
Author: Senate Veterans Affairs Committee
Amended: 9/1/11
Vote: 27 - Urgency
SENATE VETERANS AFFAIRS COMMITTEE : 7-0, 06/14/11
AYES: Correa, Cannella, Berryhill, Negrete McLeod, Rubio,
Runner, Lieu
NO VOTE RECORDED: Calderon
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 37-0, 07/11/11 (Consent)
AYES: Alquist, Anderson, Berryhill, Blakeslee, Cannella,
Correa, De Le�n, DeSaulnier, Dutton, Emmerson, Evans,
Fuller, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe,
La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod,
Padilla, Price, Rubio, Runner, Simitian, Steinberg,
Strickland, Vargas, Walters, Wolk, Wright, Wyland, Yee
NO VOTE RECORDED: Calderon, Corbett, Pavley
ASSEMBLY FLOOR : Not available
SUBJECT : State employees: military leave: salary
overpayment
SOURCE : Author
DIGEST : This bill extends, until January 1, 2015, the
statute of limitations for the recovery of overpayments
CONTINUED
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made to a state employee on a leave of absence for active
military duty as a member of the California National Guard
from three years to six years from the date of overpayment.
Assembly Amendments (1) make provision applicable to any
overpayment made up to 6 years prior to the operative date
of this bill, (2) extend the statute of limitation until
January 1, 2015, (3) clarify the circumstances under which
the state must initiate administrative action to recover an
overpayment to an employee of the state on leave of absence
for active military duty as a member of the California
National Guard, (4) establish that the state is not
mandated to recover such an overpayment should various
conditions apply, as specified, and (5) clarify
administrative action to recover overpayment shall be
initiated within six years from the date of overpayment,
unless all of the following conditions exist: (a) the
employee currently holds the military pay grade of E-1 to
E-5, inclusive, (b) overpayment was not due to fraud,
misrepresentation, or willful nondisclosure on the part of
the employee, (c) overpayment was received without fault on
the part of the employee, and (d) recovery of the
overpayment from the employee would be against equity and
good conscience.
ANALYSIS : Existing law allows for the state to recover
overpayment of funds to guard personnel as long as the
proceedings are initiated within three years.
Existing law provides that a state employee who is granted
a military leave of absence for active duty, whose
continuous state service is not broken by a permanent
separation, shall be entitled to receive his or her salary
for a period not to exceed 30 calendar days in any one
fiscal year.
This bill:
1.Determines, until January 1, 2015, 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.
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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 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.
Background
Overpayments to guard personnel have been well documented
over the last 9 months and investigations by the Senate
Veterans Affairs Committee continue to find more
discrepancies with state military pay. Many of the
documented discrepancies date to at least 2008.
The new Adjutant General has only been recently appointed
and is still investigating these records with the help of
his staff. At this point, even if he finds something, it
is likely he will find it too late to do anything about it.
According to the author's office, this bill could not be
simpler. If this bill is not passed, then the state loses
its ability to recover improperly paid compensation on a
price tag that is still unknown but could easily reach over
$100 million.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Assembly Appropriations Committee, minor
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absorbable administrative costs, particularly to the State
Controller's Office. Costs will be offset to an unknown
degree by recovering overpayments.
RM:nl 9/8/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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