BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 327|
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                                 THIRD READING


          Bill No:  SB 327
          Author:   Kehoe (D)
          Amended:  3/31/09
          Vote:     27 - Urgency

           
           SENATE APPROPRIATIONS COMMITTEE  :  11-0, 4/20/09
          AYES:  Kehoe, Cox, Corbett, Denham, DeSaulnier, Hancock,  
            Leno, Runner, Walter, Wolk, Yee
          NO VOTE RECORDED:  Oropeza, Wyland


           SUBJECT  :    State claims bill

           SOURCE  :     Calif. Victims Compensation and Government  
          Claims Board


          DIGEST  :    This bill appropriates $601,473.21 from various  
          funds to the Victim Compensation and Government Claims  
          Board to pay 294 claims accepted by the Board.

           ANALYSIS  :    The State Board of Control was established in  
          1945.  It was revised and renamed the California Victim  
          Compensation and Government Claims Board (Board) by AB 2491  
          (Jackson), Chapter 1016, Statutes of 2000.  Government Code  
          Section 13298 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,  
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          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 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.  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 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.

          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 addressed 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  







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          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.

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

          Appropriation of $101,473.21 from various funds.

           SUPPORT  :   (Verified  4/19/09)

          Calif. Victims Compensation and Government Claims Board  
          (source)
          Department of Finance


          DLW:cm  4/22/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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