BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Gloria Romero, Chair
2009-2010 Regular Session
BILL NO: SB 1046
AUTHOR: Cogdill
INTRODUCED: February 16, 2010
FISCAL COMM: Yes HEARING DATE: March 24, 2010
URGENCY: No CONSULTANT:Daniel Alvarez
NOTE : This bill has been referred to the Committees on
Education and Judiciary. A "do pass" motion should include
referral to the Committee on Judiciary.
SUBJECT : Government Tort Claims: California State University
KEY POLICY ISSUE
Should the California State University (CSU) be removed from
the jurisdiction of the Victim Compensation and Government
Claims Board (VCGCB) and be allowed to directly process
claims?
SUMMARY
This bill removes the California State University (CSU) from
the jurisdiction of the Victim Compensation and Government
Claims Board (VCGCB) by allowing CSU to process its own
claims.
BACKGROUND
Existing law enacted the Donahoe Higher Education Act (Act)
which establishes the California State University System.
The Act authorized the Board of Trustees to set policy and
adopt its own rules and procedures for the operation of that
public system (Education Code 66000).
Existing law provides that CSU is not a state agency and is
exempt from such treatment, unless a statute explicitly
provides that it applies to the university (Government Code
11000).
Further, existing law, clarifies legislative intent that (a)
before legislation may be apply to CSU, the legislation
should be compatible with the mission and functions of CSU,
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and (b) CSU is not governed by any statute enacted after
January 1, 1997, that does not amend previously applicable
act and that applies generally to the state or state
agencies, departments, boards, unless the statute expressly
provides that the CSU is to be governed by that statute.
Existing law lays out the Government Claims Act (also
referred to as California Torts Claim Act), the Tort Claims
Act establishes the procedures for filing a claim against a
state public agency. The Act specifies that a claim against
the state must be filed with the Victim Compensation and
Government Claims Board (VCGCB), unless the claim is against
a judicial branch or a judge, in which case the claim is
filed with the Judicial Council. The University of
California is exempt from the Tort Claims Act (GC 810). In
addition, the VCGCB is authorized to charge a fee equal to
15% of the total for any claim it approves for settlement (GC
905.2 (f)).
The Tort Claims Act provides for the filing of claims against
public entities for harm caused to any person, and
establishes liability and immunity of the public entity for
those acts. The CSU is considered a "state agency" under the
California Tort Claims Act (Act). The timeline and procedures
for presentation of the claim and the public entity's action
on that claim are specified in the Act. Under these rules,
claims against local public entities are filed with the
entity's governing body, while claims against the state are
filed with the VCGCB (GC 900).
The purpose of the statutory requirements for presenting
claims is to give the entity notice and provide an
opportunity for investigating and possibly settling the claim
without need of costly litigation. If the entity decides not
to settle, or if the claimant is not satisfied with the
settlement offered, then the claimant may initiate a lawsuit
to recover damages.
ANALYSIS
This bill :
1) Establishes the Trustees of the California State
University (CSU), rather than the Victims Compensation
Government Claims Board (VCGCB), as the body that is
authorized to act on claims and actions filed against
the CSU.
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2) Requires all claims against CSU for money or damages
based upon an express contract or for an injury for
which CSU is liable must be presented in accordance with
existing statutes relating to the presentation and
consideration of claims.
3) Requires the Trustees of the CSU to act on a claim
against the CSU in accordance with the procedure that
the Trustees provide by rule.
4) Requires the written notice that CSU would provide
related to an action on a claim be given in a manner as
prescribed. The prescribed manner is consistent with
current statute.
5) Specifies that claims and actions shall be presented by
delivering or mailing the claim to, or serving the
action on, the Office of Risk Management at the
Chancellor's Office of the CSU.
6) Makes various technical and conforming changes.
STAFF COMMENTS
1) Need for the bill : According to the author's office,
this bill seeks to eliminate unnecessary expense and
additional administrative steps by having claims filed
directly with CSU Risk Management Department, thereby
avoiding the jurisdiction of the VCGCB. In short, CSU
would investigate the claim, assess the risk and
liability, and decide whether to settle the claim or
allow the complainant to pursue the matter in court.
2) Current practice . CSU has been investigating and
handling claims for many years through its own Risk
Management Department. Although the claim must be
formally filed with the VCGCB, that board then transmits
the claim to the CSU Risk Management Department for an
investigation and a determination on whether to settle
the claim or face a lawsuit. The VCGCB must ultimately
approve CSU's recommended determination.
3) The California Victim Compensation and Government Claims
Board consists of three members: the Director of General
Services who serves as the chair; the State Controller;
and a public member appointed by the Governor. The
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primary functions of the Board are to: (1) compensate
victims of violent crime and eligible family members for
certain crime-related financial losses, (2) consider and
settle all civil claims against the state, (3) provide
equitable travel allowances to certain government
officials, (4) respond to bid protests against the state
alleging improper or unfair acts of agencies in the
procurement of supplies and equipment, and (5) provide
reimbursement to counties for special elections
expenditures.
4) Prior and related legislation:
SB 1724 (Ch. 453/ 2005). Originally included
various changes
requested by the CSU including similar changes as
provided in SB 1046. However, prior to final
passage of SB 1724, the provisions related to the
torts claims were amended out of the measure.
AB 2321 (Ch. 1007 / 2002) provided that the
Judicial Council, rather
than the VCGCB, would act on any claims against the
courts, judges, or agencies within the judicial
branch.
SUPPORT
California State University
OPPOSITION
None received.