BILL ANALYSIS                                                                                                                                                                                                    



                                                                    AB 1701


                                                                    Page  1





          ASSEMBLY THIRD READING


          AB  
          1701 (Gonzalez)


          As Amended  June 27, 2016


          2/3 vote.  Urgency


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |Chau                  |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          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.  









                                                                    AB 1701


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          FISCAL EFFECT:  General Fund (GF) 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 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.  










                                                                    AB 1701


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          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  
          travel expenses, the other for overpayment of dental premiums.


          Analysis Prepared by:                   Pedro Reyes / APPR. /  
          (916) 319-2081   FN: 0003766