BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 1701

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          Date of Hearing:   August 3, 2016


                               Lorena Gonzalez, Chair

          1701 (Gonzalez) - As Amended June 27, 2016

          |Policy       | N/A                           |Vote:| N/A         |
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          Urgency:  Yes State Mandated Local Program:  NoReimbursable:  No


          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  


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          of these claims are for reissuance of stale-dated warrants  
          (expired checks) that range from $21.84 to $60,701.61.  


          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  


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          travel expenses the other for overpayment of dental premiums.
          Analysis Prepared by:Pedro R. Reyes / APPR. / (916)