BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1065|
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                                 THIRD READING


          Bill No:  SB 1065
          Author:   Kehoe (D)
          Amended:  5/29/12
          Vote:     27 - Urgency

           
           SENATE GOVERNMENTAL ORGANIZATION COMM.  :  Not relevant

           SENATE APPROPRIATIONS COMMITTEE  :  6-0, 6/4/12
          AYES:  Kehoe, Walters, Alquist, Dutton, Lieu, Steinberg
          NO VOTE RECORDED:  Price


           SUBJECT  :    State claims

           SOURCE  :     California Victim Compensation and Government
                      Claims Board


           DIGEST  :    This bill appropriates $167,329.15 from the 
          General Fund to pay for 93 stale-dated warrant claims.  

           ANALYSIS  :    The State Board of Control was established in 
          1945.  It was revised and renamed the Victim Compensation 
          and Government Claims Board (Board) by AB 2491 (Jackson), 
          Chapter 1016, Statutes of 2000.  Government Code Section 
          13928 requires the Board to ensure that all claims have 
          been approved by the Board, and for which there exists no 
          legally available appropriation, are submitted for 
          legislative approval at least twice during each calendar 
          year.  In general, the Board will approve claims in 
          November and in February.  Those claims are reported to the 
          chairs of the Appropriations Committees who introduce bills 
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          appropriating General Funds and special funds to pay the 
          claims.  These bills may appropriate funds in amounts to 
          the penny for tens to hundreds of claims, usually 
          stale-dated warrants.  Government Code Section 906 provides 
          for the payment of interest on claims approved by the Board 
          for which an appropriation has been made beginning 30 days 
          after the effective date of the law by which the 
          appropriation is enacted.

          The re-issuance of stale-dated warrants is the most 
          prevalent claim approved by the Board.  For stale-dated 
          warrants, the State Controller must confirm that (1) the 
          check was not cashed and has not been issued and (2) more 
          than three years have elapsed since the check was issued 
          and the monies have reverted to the General Fund or to the 
          relevant special fund.  For these warrants, an 
          appropriation is needed to reissue the payment.  This 
          category also may include state treasury bonds that have 
          not been redeemed within ten years of their maturity date 
          (there are no such claims in this bill), but the majority 
          of warrants are payroll or tax refund checks.  

           Related Legislation
           
          AB 1531 (Fuentes) appropriate $859,738.51from the General 
          Fund ($789,202.20) and various special funds for the 
          payment of 273 claims approved by the Board.  

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

          According to the Senate Appropriations Committee, 
          appropriates $167,329.15 from the General Fund.

           SUPPORT  :   (Verified  6/5/12)

          California Victim Compensation and Government Claims Board 
          (source)
          Department of Finance


          DLW:do  6/6/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE







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