BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  SB 1065|
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                              UNFINISHED BUSINESS


          Bill No:  SB 1065
          Author:   Kehoe (D)
          Amended:  8/6/12
          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

           SENATE FLOOR  :  32-2, 6/7/12
          AYES:  Alquist, Anderson, Blakeslee, Calderon, Cannella, 
            Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson, 
            Evans, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe, 
            La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod, 
            Pavley, Simitian, Steinberg, Vargas, Walters, Wolk, 
            Wright, Yee
          NOES:  Fuller, Wyland
          NO VOTE RECORDED:  Berryhill, Padilla, Price, Rubio, 
            Runner, Strickland

           ASSEMBLY FLOOR  :  79-0, 8/22/12 - See last page for vote


           SUBJECT  :    State claims

           SOURCE  :     California Victim Compensation and Government
                      Claims Board


           DIGEST  :    This bill appropriates $624,672.86 from the 
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          General Fund to pay for 117 claims against the state.

           Assembly Amendments  increase the Senate version 
          appropriation from $167,329.15 to $624,672.86.

           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 
          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.  

           Comments
           
          All but two of the 117 claims are for stale-dated warrants 
          (expired checks), ranging from $55 to $381,000.  The four 
          stale-dated warrants over $10,000 account for $438,300, or 
          72% of the costs of the 115 stale-dated warrants in this 

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          bill.  The remaining 111 average $1,516. For stale-dated 
          warrant claims, the Controller must confirm the check was 
          not cashed, that at least three years have passed since the 
          check was issued, and that the funds have reverted to the 
          General Fund. 

          The two claims that are not stale-dated warrants are a DMV 
          refund of overpaid Vehicle License Fees ($2,570) and an FTB 
          refund of funds taken from an escrow account as a result of 
          a tax lien, that was subsequently determined to be an 
          overpayment of taxes ($39,082.)  For these two claims only, 
          there is a 15% surcharge charged to the affected 
          departments (FTB and DMV) for board costs that amounts to 
          $6,300. 

           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


           ASSEMBLY FLOOR  : 79-0, 08/22/12
          AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill 
            Berryhill, Block, Blumenfield, Bonilla, Bradford, 
            Brownley, Buchanan, Butler, Charles Calderon, Campos, 
            Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson, 
            Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, 
            Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell, 
            Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill, 
            Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, 
            Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller, 

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            Mitchell, Monning, Morrell, Nestande, Nielsen, Norby, 
            Olsen, Pan, Perea, V. Manuel Pérez, Portantino, Silva, 
            Skinner, Smyth, Solorio, Swanson, Torres, Valadao, 
            Wagner, Wieckowski, Williams, Yamada, John A. Pérez
          NO VOTE RECORDED: Roger Hernández


          DLW:dn   8/22/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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