Report 2012-603 Recommendation Responses

Report 2012-603: High Risk Update: State Agencies Credited Their Employees With Millions of Dollars Worth of Unearned Leave (Release Date: August 2014)

Recommendation for Legislative Action

The Legislature should amend state law to clarify the statute of limitations for recovering the overpayment of leave credits. For example, it could require state agencies to provide notice to the employee that he or she was inappropriately credited leave hours within three years from the date the employee was credited the hours or three years from the date the employee separated from state service and, in instances of fraud, three years from the date the State discovered the fraud.

Description of Legislative Action

Senate Bill 848 (Chapter 35, Statutes of 2016) provides that an administrative action shall not be taken by the State to recover an overpayment by an employee unless the action is initiated within three years from the date of overpayment. If an overpayment involves leave credits, the date of overpayment is the date that the employee receives compensation in exchange for leave erroneously credited to the employee. For purposes of this provision, leave hours are considered exchanged for compensation in the order they were credited.

  • Legislative Action Current As-of: December 2016

California State Auditor's Assessment of Annual Follow-Up Status: Legislation Enacted


Description of Legislative Action

AB 1753 would have prohibited the State from taking that action unless the action is initiated within three years from either the date the employee separates from state service or, when 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. This bill was not enacted.

  • Legislative Action Current As-of: November 2016

California State Auditor's Assessment of Annual Follow-Up Status: Legislation Proposed But Not Enacted


Description of Legislative Action

Legislation has not been introduced to address this recommendation.

  • Legislative Action Current As-of: October 2016

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken


Description of Legislative Action

AB 1753 would have prohibited the State from taking that action unless the action is initiated within three years from either the date the employee separates from state service or, when 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. This bill was not enacted.

  • Legislative Action Current As-of: March 2016

California State Auditor's Assessment of 1-Year Status: Legislation Proposed But Not Enacted


Description of Legislative Action

Legislation has not been introduced to address this specific recommendation

  • Legislative Action Current As-of: February 2015

California State Auditor's Assessment of 60-Day Status: No Action Taken


All Recommendations in 2012-603


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