BILL ANALYSIS AB 1270 Page 1 Date of Hearing: May 6, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 1270 (Torrico) - As Introduced: February 27, 2009 Policy Committee: Public SafetyVote: 7-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires the Victims Compensation and Government Claims Board (board) to provide timely processing of applications, to adopt written procedures and timeframes for approving or denying applications, and to adopt specified procedures for communicating with entities to verify required information. FISCAL EFFECT Minor absorbable costs to the board to adopt written procedures. According to the board, the requirements posed by this bill are consistent with current board plans in the wake of a critical report by the State Auditor. COMMENTS 1)Rationale. In December 2008, the State Auditor, in a report critical of the board's procedures and ability to make timely payments to crime victims, made a series of recommendations to improve the Victim Compensation Program (VCP), including the need for written procedures and a comprehensive plan for priorities. 2)The VCP , as administered by the board, provides compensation to crime victims, eligible family members, and other specified persons who are injured or threatened with injury, as specified. The VCP, which functions as the provider of last resort, includes medical and mental health services not AB 1270 Page 2 covered by insurance. 3)A December 2008 report by the State Auditor on the VCP was sharply critical of the board. Entitled, Victim Compensation and Government Claims Board: It has begun Improving the Victim Compensation Program, but More Remains to Be Done, the report noted that despite a decrease in payments to crime victims from 2001-02 - due to fluctuations beyond the board's control in the Restitution Fund - administrative costs to support the program increased significantly. Administrative costs are projected to be 27% of Restitution Fund expenditures in 2009-10. In addition, although the board generally complies with state laws and regulations for determining whether applicants are eligible for program benefits, the report found the board does not always process applications and bills as promptly or efficiently as possible. 4)In its response to the auditor, the Board concurred with the balance of the auditor's recommendations. Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081