BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1046 (Cogdill)
Hearing Date: 05/03/2010 Amended: 04/07/2010
Consultant: Jacqueline Wong-HernandezPolicy Vote: Education
7-0, Judiciary 4-0
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BILL SUMMARY: This bill would remove the California State
University (CSU) from the jurisdiction of the Victim
Compensation and Government Claims Board (VCGCB) and allow the
CSU to process its own tort claims.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
CSU processes claims *Minor revenue loss to
VCGCB* General
*Likely
minor savings to CSU*
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STAFF COMMENTS:
The existing Government Tort Claims Act (TCA) establishes the
procedures for filing a claim against a public agency, and
provides that the VCGCB may collect a 15% surcharge on each
claim (Government Code Section 810 et seq). Unless a state
agency is exempt from TCA, its claimed are filed with and
processed by the VCGCB. This bill would exempt CSU from having
its claims under VCGCB jurisdiction, but would otherwise still
require CSU to maintain internal claim processing rules that are
consistent with the TCA.
CSU tort claims are currently filed with the VCGCB. It is then
transmitted to the Risk Management Department of CSU for
investigation and determination of whether to settle the claim
or allow it to go to litigation. When CSU decides to settle a
claim, it must be approved by VCGCB, which then collects a 15%
surcharge from CSU on the amount of the claim. When a claim is
denied, the VCGCB notifies the claimant that he or she has six
months to initiate court action against CSU; VCGCB is no longer
involved. By allowing CSU to fully process its own tort claims
(on which it already does substantial work), CSU would avoid the
15% surcharge it pays to the VCGCB on each approved claim. To
the extent that CSU could fully process its own claims within
existing staff resources, this would be a direct savings to CSU.
The total amount of savings to CSU, and revenue loss to VCGCB,
would be minor - likely less than $10,000 annually. In fiscal
year 2007-08, 118 claims were filed against CSU and 19 claims
were approved for a total of $89,893 paid to claimants. The
surcharge on these claims was $9,176. In fiscal year 2008-09, 70
claims were filed against CSU and 16 claims were approved for a
total of $36,048 paid to claimants. The surcharge on these
claims was $3,988. VCGCB's workload would also decrease with the
loss revenue, because it would no longer be processing CSU tort
claims.