BILL ANALYSIS
SB 327
Page 1
SENATE THIRD READING
SB 327 (Kehoe)
As Amended March 31, 2009
2/3 vote. Urgency
SENATE VOTE :39-0
APPROPRIATIONS 15-0
-----------------------------------------------------------------
|Ayes:|De Leon, Nielsen, | | |
| |Ammiano, Coto, Davis, | | |
| |Duvall, Fuentes, Hall, | | |
| |Harkey, Miller, John A. | | |
| |Perez, Skinner, Solorio, | | |
| |Audra Strickland, | | |
| |Torlakson | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
SUMMARY : This bill, one of two annual bills sponsored by the
California Victim Compensation and Government Claims Board
(board) and carried by the Appropriations Committee chairs,
appropriates $601,473 from various funds to pay 294 claims
against the state as approved by the board.
FISCAL EFFECT : Appropriates $508,623 from the GF and $92,850
from special funds. Appropriates, pursuant to current law, an
additional 15% surcharge on the amount of each claim to pay for
the board's administrative costs. This surcharge equals
$90,221.
COMMENTS:
1)Rationale. The Government Code requires the board to take all
necessary steps to ensure that all approved claims, for which
there exists no legally available appropriation, are submitted
for legislative approval at least twice each calendar year.
2)Support. This bill, supported by the board, the Department of
Finance, and the administration, has no opposition.
SB 327
Page 2
3)Eighteen claims account for 58% of the costs of this measure;
the remaining claims average $909. Of the 18 claims of
$10,000 or more, 13, for a total of $207,190 are for
stale-dated warrants or state treasury bonds that have not
been redeemed within 10 years of their maturity date.
Reissuing stale-dated warrants is the most common claim in
this bill. For stale-dated warrants, the Controller must
confirm the check was not cashed and that more than three
years have elapsed since the check was issued.
4)The remaining claims of $10,000 or more:
a) During a Board of Equalization (BOE) audit of a
claimant, a waiver extended the deadline for the claimant
to file for a tax refund. BOE denied the claim because it
was not filed in a timely manner. BOE acknowledged
mistakes caused the claimant's failure to file timely
($54,421).
b) The California Community Colleges failed to pay in a
timely manner invoices for San Jose Evergreen Community
College District before grant funding reverted ($38,000).
c) To reimburse the Department of Fish and Game for
operating funds used in a settlement payment ($20,000).
d) Attorney's fees for a mandated reporter case. ($16,003).
e) A claimant filed a 1993 California tax return on March
15, 2007, with no tax liability. The FTB accepted
self-assessed zero liability but could not provide a refund
because of statute of limitations expiration ($14,868).
5)Related legislation. AB 92 (De Leon), which appropriates
SB 327
Page 3
$617,565 for 120 claims, passed this committee and the
Assembly Floor without dissent and is pending before the
Senate Appropriations Committee. SB 50 (Torlakson, Statutes
of 2008) and AB 1274 (Leno, Statutes of 2008) were the two
claims bills last year.
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081
FN: 0001738