Existing law requires notice of any adverse action against any state employee for any cause for discipline based on any civil service law to be served within 3 years after the cause for discipline, upon which the notice is based, first arose. Existing law provides that an adverse action based on fraud, embezzlement, or the falsification of records is valid if notice of the adverse action is served within 3 years after the discovery of the fraud, embezzlement, or falsification.

This bill would reduce those timeframes to one year.

Date of Hearing: April 15, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 811

Author:(Salas) – As Introduced Ver:February 26, 2015

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires that any adverse action taken against a state employee for any cause for discipline based on any civil service law be served within one year of the cause for discipline, or in the case of fraud, embezzlement, or the falsification of records, within one year of the date of discovery of the cause for action.

FISCAL EFFECT:

Significant costs, GF and special funds, in excess of $500,000 annually statewide, for employers to manage shortened timeframes for adverse actions. These costs would likely diminish after the existing backlog of investigations is reduced.

COMMENTS:

1) Purpose. According to the author, the current three year statute of limitations for investigations of employees suspected of wrongdoing can cause undue hardship for those employees, especially when found innocent. Delays in completing investigations can lead to prolonged disruption of the workplace, unnecessary costs for extended administrative leave or backpay, and delayed correction of improper or inefficient behavior of employees.

2) Similar Legislation. This bill is similar to AB 769 (Jones-Sawyer) of this session, however AB 769 retains the three-year statute of limitations from the date of discovery of any fraud, embezzlement, or falsification of records. It is similar to AB 1783 (Jones-Sawyer) of 2014, which was amended to delete these provisions. This bill is also similar to AB 872 (Dickinson) of 2013, AB 1655 (Dickinson) of 2012, AB 920 (Portantino) of 2011, and AB 1744 (Portantino) of 2010, all of which were held on the Suspense File of this committee.

3) Special Treatment for State Employee Fraud. Currently, the statute of limitations with respect to state employee fraud actions is equivalent to the general civil fraud statute of limitations. In each case, the action must be commenced within three years of the date of discovery of the fraud. This bill would reduce the statute of limitations for state employee fraud actions to one year from the date of discovery. The committee may wish to consider whether it is appropriate or justifiable to afford state employees an advantageous position with respect to employee fraud actions as compared with other cases of civil fraud.

Analysis Prepared by: Joel Tashjian / APPR. / (916) 319-2081