BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 369| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 369 Author: De León (D) Amended: 8/12/13 Vote: 27 - Urgency SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/19/13 AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg SUBJECT : State claims SOURCE : Author DIGEST : This bill appropriates $414,054.01 from the General Fund (GF) and various special funds to pay state claims. The claims are for 155 stale dated warrants. ANALYSIS : The State Board of Control was established in 1945. It was revised and renamed the Victim Compensation and Government Claims Board by AB 2491 (Jackson, Chapter 1016, Statutes of 2000). Government Code (GOV) 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 GFs 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. GOV Section 906 CONTINUED SB 369 Page 2 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. This bill appropriates funding for 155 stale dated warrants. 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 reissued and (2) more than three years have elapsed since the check was issued and the monies have reverted to the GF 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 10 years of their maturity date (there are no such claims in this bill), but the majority of warrants generally are for lost payroll or tax refund checks. Related Legislation SB 371 (de León, Chapter 9, Statutes of 2013) appropriated $15.6 million to pay one settlement against the state. AB 234 (Gatto) appropriates $20.75 million to pay two settlements against the state. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No JA:k 8/21/13 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END ****