BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1046|
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                                 THIRD READING


          Bill No:  SB 1046
          Author:   Cogdill (R)
          Amended:  4/7/10
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  7-0, 3/24/10
          AYES:  Romero, Huff, Alquist, Liu, Maldonado, Price,  
            Simitian
          NO VOTE RECORDED:  Hancock, Wyland

           SENATE JUDICIARY COMMITTEE  :  4-0, 4/20/10
          AYES:  Corbett, Harman, Hancock, Leno
          NO VOTE RECORDED:  Walters

           SENATE APPROPRIATIONS COMMITTEE  :  10-0, 5/3/10
          AYES:  Kehoe, Cox, Corbett, Denham, Leno, Price, Walters,  
            Wolk, Wyland, Yee
          NO VOTE RECORDED:  Alquist


           SUBJECT  :    Government tort claims:  California State  
          University

           SOURCE  :     California State University


           DIGEST  :    This bill removes the California State  
          University (CSU) from the jurisdiction of the Victim  
          Compensation and Government Claims Board (VCGCB) by  
          allowing CSU to process its own claims.

           ANALYSIS  :    Existing law enacted the Donahoe Higher  
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          Education Act (Act) which establishes the California State  
          University System.  The Act authorized the Board of  
          Trustees to set policy and adopt its own rules and  
          procedures for the operation of that public system.

          Existing law provides that CSU is not a state agency and is  
          exempt from such treatment, unless a statute explicitly  
          provides that it applies to the university.

          Existing law also clarifies legislative intent that:  (a)  
          before legislation may be apply to CSU, the legislation  
          should be compatible with the mission and functions of CSU,  
          and (b) CSU is not governed by any statute enacted after  
          January 1, 1997, that does not amend previously applicable  
          act and that applies generally to the state or state  
          agencies, departments, boards, unless the statute expressly  
          provides that the CSU is to be governed by that statute. 

          Existing law lays out the Government Claims Act (also  
          referred to as California Torts Claim Act [Act]), the Tort  
          Claims Act establishes the procedures for filing a claim  
          against a state public agency.  The Act specifies that a  
          claim against the state must be filed with the VCGCB,  
          unless the claim is against a judicial branch or a judge,  
          in which case the claim is filed with the Judicial Council.  
           The University of California is exempt from the Tort  
          Claims Act.  In addition, the VCGCB is authorized to charge  
          a fee equal to 15 percent of the total for any claim it  
          approves for settlement.

          The Tort Claims Act provides for the filing of claims  
          against public entities for harm caused to any person, and  
          establishes liability and immunity of the public entity for  
          those acts.  The CSU is considered a "state agency" under  
          the Act. The timeline and procedures for presentation of  
          the claim and the public entity's action on that claim are  
          specified in the Act.  Under these rules, claims against  
          local public entities are filed with the entity's governing  
          body, while claims against the state are filed with the  
          VCGCB.
           
          The purpose of the statutory requirements for presenting  
          claims is to give the entity notice and provide an  
          opportunity for investigating and possibly settling the  

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          claim without need of costly litigation. If the entity  
          decides not to settle, or if the claimant is not satisfied  
          with the settlement offered, then the claimant may initiate  
          a lawsuit to recover damages.  

          This bill:

          1.Establishes the Trustees of CSU, rather than VCGCB, as  
            the body that is authorized to act on claims and actions  
            filed against the CSU.

          2.Requires all claims against CSU for money or damages  
            based upon an express contract or for an injury for which  
            CSU is liable must be presented in accordance with  
            existing statutes relating to the presentation and  
            consideration of claims. 

          3.Requires the Trustees of the CSU to act on a claim  
            against the CSU in accordance with the procedure that the  
            Trustees provide by rule.

          4.Requires the written notice that CSU would provide  
            related to an action on a claim be given in a manner as  
            prescribed. The prescribed manner is consistent with  
            current statute. 

          5.Specifies that claims and actions shall be presented by  
            delivering or mailing the claim to, or serving the action  
            on, the Office of Risk Management at the Chancellor's  
            Office of the CSU. 

          6.Makes various technical and conforming changes.

           Prior and Related Legislation
           
          SB 1724 (Runner) Chapter 453, Statutes of 2005, originally  
          included various changes requested by the CSU including  
          similar changes as provided in SB 1046.  However, prior to  
          final passage of SB 1724, the provisions related to the  
          torts claims were amended out of the measure.  Passed the  
          Senate Floor with a vote of 33-0 on 8/31/06.

          AB 2321 (Hertzberg) Chapter 1007, Statutes of 2002,  
          provided that the Judicial Council, rather than the VCGCB,  

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          would act on any claims against the courts, judges, or  
          agencies within the judicial branch.  Passed the Senate  
          Floor with a vote of 39-0 on 8/12/10.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  5/4/10)

          California State University (source) 


           ARGUMENTS IN SUPPORT  :    According to the author's office,  
          this bill seeks to eliminate unnecessary expense and  
          additional administrative steps by having claims filed  
          directly with CSU Risk Management Department, thereby  
          avoiding the jurisdiction of the VCGCB.  CSU would  
          investigate the claim, assess the risk and liability, and  
          decide whether to settle the claim or allow the complainant  
          to pursue the matter in court. 


          PQ:nl  5/4/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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