BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
327 (Kehoe)
Hearing Date: 4/20/2009 Amended: 3/31/2009
Consultant: Bob Franzoia Policy Vote: None
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BILL SUMMARY: SB 327, an urgency measure, would appropriate
$601,473.21 from various funds to the Victim Compensation and
Government Claims Board (board) to pay 294 claims accepted by
the board.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Appropriations $509 General*
$93
Special**
* 265 claims
** 29 claims from various funds
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STAFF COMMENTS: Pursuant to the committee's rules, the Suspense
File rule does not apply to the provisions of this bill as
claims are considered valid obligations of the state.
Additionally, claims may have time sensitivity.
The State Board of Control was established in 1945. It was
revised and renamed the California Victim Compensation and
Government Claims Board by Chapter 1016/2000 (AB 2491, Jackson).
Government Code 13928 requires the board to ensure that all
claims which 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.
Of the 18 claims of $10,000 or more contained in this bill,
nine, for a total of $142,189.60 are for the re-issuance of
stale-dated warrants. The re-issuance of stale-dated warrants
is the most prevalent claim to be paid pursuant to this bill.
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. 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 ten years of their maturity date (there are four
such claims totaling $65,000), but the majority of warrants are
checks.
The remaining claims of $10,000 or more are:
(1) $54,421.01 - During a Board of Equalization (BOE) audit of
the claimant, a waiver extended the deadline for the claimant to
file for a tax refund. However, BOE denied the claim because it
was not filed in a timely manner. BOE acknowledged that its own
misleading conduct during the audit caused the claimant's
failure to file timely but was barred under the statute of
limitations from taking any further action on the claim.
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SB 327 (Kehoe)
(2) $38,000 - The California Community Colleges Chancellor's
Office failed to pay in a timely manner invoices due San Jose
Evergreen Community College District before grant funding
reverted.
(3) $20,000 - For the reimbursement of the Department of Fish
and Game for operating funds used in a settlement payment.
(4) $16,003.00 - Attorney's fees - mandated reporter.
(5) $14,868.00 - A claimant filed 1993 California Tax on March
15, 2007, with no tax liability. The Franchise Tax Board
accepted self assessed zero liability but could not provide a
refund because of statute of limitation expiration.
The special funds are the Public Employees' Health Care Fund,
the State Highway Account in the State Transportation Fund, the
Motor Vehicle Account in the State Transportation Fund, the
Employment Development Department (EDD) Employment Development
Contingent Fund and the EDD Unemployment Administrative Fund.
The Health Care Deposit Fund receives federal grants, county
payments and General Funds.