BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1531 (Fuentes) - State claims.
          
          Amended: April 19, 2012         Policy Vote: Not Applicable
          Urgency: Yes                    Mandate: No
          Hearing Date: June 4, 2012      Consultant: Bob Franzoia
          
          Pursuant to the committee's rules, the Suspense File rule does 
          not apply to the provisions of this bill as claims are 
          considered valid obligations of the state.  Additionally, claims 
          may have time sensitivity.  
          

          Bill Summary: AB 1531 would appropriate $859,738.51 from the 
          General Fund and special funds to pay state claims.  The claims 
          are for 273 stale dated warrants. 

          Fiscal Impact: $789,202.20 appropriation from the General Fund 
          (236 claims).
              $2,610.33 appropriation from the Public Employees' Health 
              Care Fund (1).
              $23,372.09 appropriation from the Health Care Deposit Fund 
              (2).
              $884.33 appropriation from the Unclaimed Property Fund (1).
              $246.00 appropriation from the State Highway Account, State 
              Transportation Fund (state operations) (1).
              $34,928.75 appropriation from the State Highway Account, 
              State Transportation Fund (capital outlay support) (2).
              $2,303.11 appropriation from the Motor Vehicle Account, 
              State Transportation Fund (12).
              $3,459.38 appropriation from the Department of Social 
              Services General Fund (7).
              $2,250.40 appropriation from the California Department of 
              Correction and Rehabilitation General Fund (8).
              $481.92 appropriation from the Employment Development 
              Department Contingent Fund (3).

          Background: The State Board of Control was established in 1945.  
          It was revised and renamed the Victim Compensation and 
          Government Claims Board by Chapter 1016/2000 (AB 2491, Jackson). 
           Government Code 13928 requires the board to ensure that all 
          claims have been approved by the board, and for which there 
          exists no legally available appropriation, are submitted for 








          AB 1531 (Fuentes)
          Page 1


          legislative approval at least twice during each calendar year.  
          In general, the board will approve claims in November and in 
          February.  Those claims are reported to the chairs of the 
          Appropriations Committees who introduce bills appropriating 
          General Funds and special funds to pay the claims.  These bills 
          may appropriate funds in amounts to the penny for tens to 
          hundreds of claims, usually stale dated warrants.  Government 
          Code 906 provides for the payment of interest on claims approved 
          by the board for which an appropriation has been made beginning 
          30 days after the effective date of the law by which the 
          appropriation is enacted.

          Proposed Law: This bill appropriates funding for 273 stale dated 
          warrants.  The re-issuance of stale-dated warrants is the most 
          prevalent claim approved by the board.  For stale-dated 
          warrants, the 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 or to the relevant special 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 ten years of their maturity 
          date (there are no such claims in this bill), but the majority 
          of warrants generally are for lost payroll or tax refund checks. 
           

          Related Legislation: SB 1065 (Kehoe) would appropriate 
          $167,329.15 from the General Fund for the payment of 93 claims 
          approved by the board (Franchise Tax Board stale dated 
          warrants).  SB 1065 (Kehoe) is also on today's agenda.