BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1046
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 1046 (Cogdill) - As Amended:  April 7, 2010 

          Policy Committee:                              Higher  
          EducationVote:  9-0
                        Judiciary                             10-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill removes the California State University (CSU) from the  
          jurisdiction of the Victim Compensation and Government Claims  
          Board (VCGCB) and instead allows the CSU to process its own tort  
          claims consistent with procedures established in the Government  
          Tort Claims Act (TCA).

           FISCAL EFFECT  

          Minor revenue loss to the VCGCB and minor administrative cost  
          savings to the CSU.

           COMMENTS  

           1)Background  . The TCA establishes procedures for filing a claim  
            against a public agency. Currently, CSU tort claims are filed  
            with the VCGCB, then transmitted to CSU's Risk Management  
            Department for investigation and determination of whether to  
            settle the claim or allow the claim to go to litigation. If  
            CSU decides to settle a claim, this action must be approved by  
            VCGCB, which collects an administrative surcharge from CSU  
            equal to 15% of the amount of the claim. If a claim is denied,  
            the VCGCB notifies the claimant that he or she has six months  
            to initiate court action against CSU; VCGCB is then no longer  
            involved. 

           2)Purpose  . Unless a state agency is exempt from TCA, its claims  
            are filed with and processed by the VCGCB. This bill exempts  
            CSU from having its claims under VCGCB jurisdiction, but  
            otherwise requires CSU to maintain internal claim processing  








                                                                  SB 1046
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            rules consistent with the TCA.  Allowing CSU to fully process  
            its own tort claims would avoid the VCGCB surcharge. The  
            University of California enjoys a similar TCA exemption.

            In 2007-08, 118 claims were filed against CSU and 19 were  
            approved for a total of $89,893 paid to claimants. The VCGCB  
            surcharge on these claims was $9,176. In 2008-09, 70 claims  
            were filed against CSU and 16 were approved for a total of  
            $36,048 paid to claimants. The surcharge amount was $3,988.

           3)Opposition  . The VCGCB argues that the bill would deny  
            claimants a neutral third party (the board) for claims against  
            CSU and could set a precedent for other state entities seeking  
            to independently administer their own claims.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081