BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1046| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED SB 1046 Page 2 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 CONTINUED SB 1046 Page 3 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, CONTINUED SB 1046 Page 4 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 **** END **** CONTINUED