BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 304|
          |Office of Senate Floor Analyses   |                              |
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                                   THIRD READING 


          Bill No:  SB 304
          Author:   Lara (D)
          Amended:  7/8/15  
          Vote:     27  - Urgency

           SENATE APPROPRIATIONS COMMITTEE:  7- 0, 7/13/15
           AYES:  Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

           SUBJECT:   State claims


          SOURCE:    Author

          DIGEST:   This bill, an urgency measure, appropriates  
          $3,276,623.90 from specified funds to the California Victim  
          Compensation and Government Claims Board (board) for the payment  
          of 199 state claims.  


          ANALYSIS:      Existing law authorizes the board to assess a  
          surcharge on a state entity against which an approved claim is  
          filed, in an amount not to exceed 15 percent of the total  
          approved claim.  These surcharges support the board's  
          activities, but do not apply to approved claims to reissue  
          expired warrants.

          This bill:


          1)Appropriates $3,276,623.90 in various state funds, including  
            $621,535.15 from the General Fund, to the board for the  
            payment of 197 state claims for reissuance of stale-dated  
            warrants.  








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          2)Appropriates $2,610,709.44 in capital outlay bond funds to  
            reissue payments for Los Angeles Community College District  
            (LACCD) projects that previously received an allocation, but  
            the funds reverted.  


          3)Requires the State Controller to transfer specified surcharges  
            on claims for the support of the board, pursuant to provisions  
            in existing law.

          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 Section 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 Section 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  
          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.   
          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  
          are payroll or tax refund checks.  








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          Electronic claims were submitted for grants from the 2006 Budget  
          Act Community College Capital Outlay Bond Fund (Fund 6049) for  
          contract costs incurred by the LACCD.  These claims were denied  
          because the appropriation was thought to have reverted.  These  
          eligible claims were previously approved in AB 139 (Fuentes,  
          Chapter 194, Statutes of 2011), but could not be paid because  
          the funding source was identified as a specific 2011 Budget Act  
          item (6870-303-6049), which was invalid.  This bill appropriates  
          funds directly from Fund 6049 to the board for payment of the  
          LACCD claims.

          Prior/Related Legislation  
          
          AB 165 (Gomez, Chapter 7, Statutes of 2015), an urgency measure,  
          appropriates $504,743.99 in various state funds, including  
          $227,308.96 from the General Fund, to the board for the payment  
          of 110 state claims for reissuance of stale-dated warrants.  The  
          bill also appropriates $968,400 to the board for payment of  
          three specified erroneous conviction claims.  


          AB 139 (Fuentes, Chapter 194, Statutes of 2011) appropriated  
          various funds to the board for the payment of state claims.  The  
          claims for the Los Angeles Community College District that are  
          in this bill were also included in AB 139, but were never paid  
          because the funding source was not identified correctly in the  
          bill and was considered invalid.  


          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   No


          According to the Senate Appropriations Committee:


           Stale-dated warrants: General Fund appropriations in the  
            amount of $621,535.15 to pay 171 claims, and appropriations  
            from specific budget items in the amount of $44,897.31 to pay  
            26 claims (various funds).  All of these claims are for  
            reissuance of stale-dated warrants (expired checks).  The  
            individual claim amounts range from $50 to $93,758.06.

           Capital Outlay appropriations: Bond fund appropriations in the  







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            amount of $2,610,709.44 to pay two claims to the LACCD for  
            expenditures that were previously approved, but for which the  
            original bond fund allocations had reverted. (Community  
            College Capital Outlay Bond Fund - Fund 6049) 

           Board Surcharges:  Shift of $110,025.69 in funds from the  
            Community College Capital Outlay Bond Fund to the General Fund  
            for surcharges related to the Capital Outlay claims that  
            support of the board's activities. 


          SUPPORT:   (Verified  7/15/15)


          None received


          OPPOSITION:   (Verified  7/15/15)


          None received


          Prepared by:Mark McKenzie / APPR. / (916) 651-4101
          7/15/15 16:41:48


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