BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1065 (Kehoe) - State claims.
          
          Amended: May 29, 2012           Policy Vote: None
          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: SB 1065 would appropriate $167,329.15 from the 
          General Fund to pay state claims.  The claims are for 93 stale 
          dated warrants.

          Fiscal Impact: $167,329.15 General Fund appropriation.

          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 
          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: 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.  








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          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 are payroll or tax refund checks.  

          Related Legislation: AB 1531 (Fuentes) would appropriate 
          $859,738.51from the General Fund ($789,202.20) and various 
          special funds for the payment of 273 claims approved by the 
          board.  AB 1531 (Fuentes) is also on today's agenda.

          Staff Comments: Additional claims (22 stale dated warrants, one 
          refund and one overpayment), which are in the process of being 
          reviewed by the Department of Finance will be amended into this 
          bill in the Assembly.  Upon concurrence, the Senate will review 
          and vote on those claims.