BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    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
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          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

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