Bill Text: CA AB1753 | 2015-2016 | Regular Session | Amended

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Bill Title: State employees: overpayment.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2016-11-30 - From Senate committee without further action. [AB1753 Detail]

Download: California-2015-AB1753-Amended.html

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BILL NUMBER: AB 1753	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 30, 2016

INTRODUCED BY   Assembly Member Obernolte

                        FEBRUARY 2, 2016

   An act to amend Section 19838 of the Government Code, relating to
state employees.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1753, as amended, Obernolte. State employees: overpayment.
   Existing law authorizes the state to recoup employee overpayments
through methods mutually agreed to by the employee and the state, as
specified, and provides the state, when an employee separates from
employment prior to full repayment, with the right to exercise all
legal means to recover the additional amount owed. Existing law
prohibits the state from taking administrative action to recover an
overpayment unless the action is initiated within 3 years from the
overpayment.
   This bill would require the administrative action for overpayment
to be initiated by written notice to the  employee and would
instead prohibit the state from taking that action unless the action
is initiated within 3 years from   employee. The bill,
for an overpayment that involves leave credits, would make the date
of overpayment  either the date the employee  separates
from state service   receives compensation in exchange
for leave erroneously credited to the employee  or, 
when   if  the state alleges that the employee
obtained the overpayment as a result of fraud, embezzlement, or
falsification, the date the state discovers the fraud, embezzlement,
or falsification, whichever is later.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 19838 of the Government Code is amended to
read:
   19838.  (a) When the state determines an overpayment has been made
to an employee, it shall notify the employee of the overpayment and
afford the employee an opportunity to respond prior to commencing
recoupment actions. Thereafter, reimbursement shall be made to the
state through one of the following methods mutually agreed to by the
employee and the state:
   (1) Cash payment or payments.
   (2) Installments through payroll deduction to cover at least the
same number of pay periods in which the error occurred. When
overpayments have continued for more than one year, full payment may
be required by the state through payroll deductions over the period
of one year.
   (3) The adjustment of appropriate leave credits or compensating
time off, provided that the overpayment involves the accrual or
crediting of leave credits (e.g., vacation, annual leave, or holiday)
or compensating time off. Any errors in sick leave balances may only
be adjusted with sick leave credits.
   Absent mutual agreement on a method of reimbursement, the state
shall proceed with recoupment in the manner set forth in paragraph
(2).
   (b) An employee who is separated from employment prior to full
repayment of the amount owed shall have withheld from any money owing
the employee upon separation an amount sufficient to provide full
repayment. If the amount of money owing upon separation is
insufficient to provide full reimbursement to the state, the state
shall have the right to exercise any and all other legal means to
recover the additional amount owed.
   (c) Amounts deducted from payment of salary or wages pursuant to
the above provisions, except as provided in subdivision (b), shall
 in no event   not  exceed 25 percent of
the employee's net disposable earnings.
   (d) No administrative action shall be taken by the state pursuant
to this section to recover an overpayment unless the action is
initiated by written notice to the employee within three years from
 the date of overpayment. If an overpayment involves leave
credits, the date of overpayment is  either of the following,
whichever is later:
   (1) The date the employee separates from state service.
  receives compensation in exchange for leave
erroneously credited to the employee. 
   (2)  When   If  the state alleges that
the employee obtained the overpayment as a result of fraud,
embezzlement, or falsification, the date the state discovers the
fraud, embezzlement, or falsification.
   (e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.