BILL ANALYSIS Ó AB 1701 Page 1 Date of Hearing: August 3, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1701 (Gonzalez) - As Amended June 27, 2016 ----------------------------------------------------------------- |Policy | N/A |Vote:| N/A | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: Yes State Mandated Local Program: NoReimbursable: No SUMMARY: This bill, an urgency measure, appropriates approximately $450,000 from specified funds to the California Victim Compensation and Government Claims Board (board) for the payment of 210 state claims. FISCAL EFFECT: General Fund appropriations in the amount of $408,878.43 to pay 184 claims, and appropriations from specific budget items in the amount of $39,579.79 to pay 26 claims (GF/special funds). All AB 1701 Page 2 of these claims are for reissuance of stale-dated warrants (expired checks) that range from $21.84 to $60,701.61. COMMENTS: Background. 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 13928 requires the board to ensure that all claims that have been approved by the board, and for which no legally available appropriation exists, are submitted for legislative approval at least twice during each calendar year. In general, the board will approve claims in November and 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. Government Code 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. The majority of warrants are payroll or tax refund checks. This bill, an urgency measure, appropriates $448,458.22 from various state funds, including $408,878.43 directly from the General Fund, to the board for the payment of 208 state claims for reissuance of stale-dated warrants. This bill includes reimbursements for two Board of Equalization employees, one for AB 1701 Page 3 travel expenses the other for overpayment of dental premiums. Analysis Prepared by:Pedro R. Reyes / APPR. / (916) 319-2081