BILL ANALYSIS Ó SB 1504 Page 1 Date of Hearing: May 16, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1504 (Kehoe) - As Amended: April 17, 2012 Policy Committee: AppropriationsVote: Urgency: Yes State Mandated Local Program: No Reimbursable: SUMMARY This bill: 1)Specifies that interest on a claim approved by the California Victims of Crime and Government Control Board (Board) for which funds are appropriated by the Legislature shall not begin to accrue until 180 days after the effective date of the chaptered appropriation. (Current law specifies 30 days.) 2)Specifies that interest on a judgment or settlement against the state, as approved by the Department of Justice (DOJ) and the Department of Finance (DOF) shall not begin to accrue until 180 days from the date of the final judgment or settlement. FISCAL EFFECT Unknown, likely minor state savings (GF and special fund) to the extent interest payments are reduced. The Board is unaware of any cases in recent years in which claimants received interest on the appropriated amount of a claim and interest payment on DOJ settlements have been minor. COMMENTS Rationale . This bill safeguards the state against interest payments, ensuring the Legislature has adequate time to respond to settlements, which can and do occur during legislative recess, while allowing sufficient time for the administrative duties of DOJ and the Board. SB 1504 Page 2 Background . Statute requires the Board to ensure that all approved claims, for which there exists no appropriation, are submitted for legislative approval at least twice each calendar year. These appropriations are carried in administration-sponsored bills authored by the Appropriations Committee chairs. Claims range from several dollars to hundreds of thousands of dollars, though claims tend to average about $1,000, and most are stale-dated warrants (expired state checks). Similarly, the Appropriations Committee chairs carry annual administration-sponsored bills to provide appropriation authority for legal settlements approved by DOJ and the Department of Finance (DOF). Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081