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AB-36 Public employees’ retirement: fraud.(2007-2008)

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AB36:v98#DOCUMENT

Corrected  September 18, 2008
Amended  IN  Senate  May 05, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 36

Introduced  by  Assembly Member Niello

December 04, 2006

An act to add Section 22010 to the Education Code, to add Section 31455.5 to, and to add Article 3 (commencing with Section 20085) to Chapter 1 of Part 3 of Division 5 of Title 2 of, the Government Code, relating to public employees’ retirement.


LEGISLATIVE COUNSEL'S DIGEST


AB 36, as amended, Niello. Public employees’ retirement: fraud.
(1) Existing law provides that it is a crime to make a knowingly false material statement or representation for the purpose of obtaining workers’ compensation, or supporting or denying a workers’ compensation claim. The Public Employees’ Retirement Law, the Teachers’ Retirement Law, and the County Employees Retirement Law of 1937 prescribe the rights, benefits, and duties of members of the retirement systems established by those laws.
This bill would make it a crime for a person to make or present false material statements and representations in connection with those retirement systems’ benefits and applications, as specified, or to aid or abet someone in this regard. The bill would also make it a crime for a person to knowingly accept, with the intent to keep for personal benefit, a payment from any of those retirement systems with the knowledge that one was not entitled to the benefit. The bill would provide that a violation of these provisions is punishable by up to one year in a county jail, or a fine, or both, and restitution, as specified. The bill would require any restitution order imposed to be satisfied before any criminal fine imposed may be collected, and would further provide that its provisions are cumulative. By creating a new crime or expanding an existing crime, the bill would create a state-mandated local program.
(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 22010 is added to the Education Code, to read:

22010.
 (a) It is unlawful for a person to do any of the following:
(1) Make, or cause to be made, any knowingly false material statement or material representation, to knowingly fail to disclose a material fact, or to otherwise provide false information with the intent to use it, or allow it to be used, to obtain, receive, continue, increase, deny, or reduce any benefit administered by this system.
(2) Present, or cause to be presented, any knowingly false material statement or material representation for the purpose of supporting or opposing an application for any benefit administered by this system.
(3) Knowingly accept or obtain payment from this system with knowledge that the recipient is not entitled to the payment under the provisions of this part and with the intent to retain the payment for personal use or benefit.
(4) Knowingly aid, abet, solicit, or conspire with any person to do an act prohibited by this section.
(b) For purposes of this section, “statement” includes, but is not limited to, any oral or written application for benefits, report of family relationship, report of injury or physical or mental limitation, hospital records, test results, physician reports, or other medical records, employment records, duty statements, reports of compensation, or any other evidence material to the determination of a person’s initial or continued eligibility for a benefit or the amount of a benefit administered by this system.
(c) A person who violates any provision of this section is punishable by imprisonment in a county jail not to exceed one year, or by a fine of not more than twenty thousand dollars ($20,000), or five thousand dollars ($5,000), or by both that imprisonment and fine.
(d) A person violating any provision of this section may be required by the court in a criminal action to make restitution to this system, or to any other person determined by the court, for the amount of the benefit unlawfully obtained, unless the court finds that restitution, or a portion of it, is not in the interests of justice. Any restitution order imposed pursuant to this section shall be satisfied before any criminal fine imposed under this section may be collected.
(e) The provisions provided by this section are cumulative and shall not be construed as restricting the application of any other law.

SEC. 2.

 Article 3 (commencing with Section 20085) is added to Chapter 1 of Part 3 of Division 5 of Title 2 of the Government Code, to read:
Article  3. Penalties

20085.
 (a) It is unlawful for a person to do any of the following:
(1) Make, or cause to be made, any knowingly false material statement or material representation, to knowingly fail to disclose a material fact, or to otherwise provide false information with the intent to use it, or allow it to be used, to obtain, receive, continue, increase, deny, or reduce any benefit administered by this system.
(2) Present, or cause to be presented, any knowingly false material statement or material representation for the purpose of supporting or opposing an application for any benefit administered by this system.
(3) Knowingly accept or obtain payment from this system with knowledge that the recipient is not entitled to the payment under the provisions of this part and with the intent to retain the payment for personal use or benefit.
(4) Knowingly aid, abet, solicit, or conspire with any person to do an act prohibited by this section.
(b) For purposes of this section, “statement” includes, but is not limited to, any oral or written application for benefits, report of family relationship, report of injury or physical or mental limitation, hospital records, test results, physician reports, or other medical records, employment records, duty statements, reports of compensation, or any other evidence material to the determination of a person’s initial or continued eligibility for a benefit or the amount of a benefit administered by this system.
(c) A person who violates any provision of this section is punishable by imprisonment in a county jail not to exceed one year, or by a fine of not more than twenty thousand dollars ($20,000), or five thousand dollars ($5,000), or by both that imprisonment and fine.
(d) A person violating any provision of this section may be required by the court in a criminal action to make restitution to this system, or to any other person determined by the court, for the amount of the benefit unlawfully obtained, unless the court finds that restitution, or a portion of it, is not in the interests of justice. Any restitution order imposed pursuant to this section shall be satisfied before any criminal fine imposed under this section may be collected.
(e) The provisions provided by this section are cumulative and shall not be construed as restricting the application of any other law.

SEC. 3.

 Section 31455.5 is added to the Government Code, to read:

31455.5.
 (a) It is unlawful for a person to do any of the following:
(1) Make, or cause to be made, any knowingly false material statement or material representation, to knowingly fail to disclose a material fact, or to otherwise provide false information with the intent to use it, or allow it to be used, to obtain, receive, continue, increase, deny, or reduce any benefit accrued or accruing to a person under this chapter.
(2) Present, or cause to be presented, any knowingly false material statement or material representation for the purpose of supporting or opposing an application for any benefit accrued or accruing to a person under this chapter.
(3) Knowingly accept or obtain payment from a retirement system with knowledge that the recipient is not entitled to the payment under the provisions of this chapter and with the intent to retain the payment for personal use or benefit.
(4) Knowingly aid, abet, solicit, or conspire with any person to do an act prohibited by this section.
(b) For purposes of this section, “statement” includes, but is not limited to, any oral or written application for benefits, report of family relationship, report of injury or physical or mental limitation, hospital records, test results, physician reports, or other medical records, employment records, duty statements, reports of compensation, or any other evidence material to the determination of a person’s initial or continued eligibility for a benefit or the amount of a benefit accrued or accruing to a person under this chapter.
(c) A person who violates any provision of this section is punishable by imprisonment in a county jail not to exceed one year, or by a fine of not more than twenty thousand dollars ($20,000), or five thousand dollars ($5,000), or by both that imprisonment and fine.
(d) A person violating any provision of this section may be required by the court in a criminal action to make restitution to the retirement system, or to any other person determined by the court, for the amount of the benefit unlawfully obtained, unless the court finds that restitution, or a portion of it, is not in the interests of justice. Any restitution order imposed pursuant to this section shall be satisfied before any criminal fine imposed under this section may be collected.
(e) The provisions provided by this section are cumulative and shall not be construed as restricting the application of any other law.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.