BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1065
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 1065 (Kehoe) - As Amended:  August 6, 2012

          Policy Committee:                             
          AppropriationsVote:

          Urgency:     Yes                  State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill, one of two annual bills sponsored by the California 
          Victim Compensation and Government Claims Board (board) and 
          carried by the Appropriations Committee chairs, appropriates 
          $624,672 to pay 117 claims against the state as approved by the 
          board. 

           FISCAL EFFECT  

          Appropriates $624,672 ($602,621 GF; $22,051 special funds) to 
          the board for payment of claims, 115 of which are stale-dated 
          warrants - state checks that were lost or expired and never 
          cashed.  

           COMMENTS  

           1)Rationale.  The Government Code requires the board to take all 
            necessary steps to ensure that all approved claims, for which 
            there exists no legally available appropriation, are submitted 
            for legislative approval at least twice each calendar year. 

           2)Support  . This bill, supported by the board, the Department of 
            Finance, and the administration, has no opposition.

           3)All but two of the 117 claims are for stale-dated warrants 
            (expired checks)  , ranging from $55 to $381,000. The four 
            stale-dated warrants over $10,000 account for $438,300, or 72% 
            of the costs of the 115 stale-dated warrants in this bill. The 
            remaining 111 average $1,516. For stale-dated warrant claims, 
            the Controller must confirm the check was not cashed, that at 
            least three years have passed since the check was issued, and 








                                                                  SB 1065
                                                                  Page  2

            that the funds have reverted to the GF. 

           4)The two claims that are not stale-dated warrants  are a DMV 
            refund of overpaid Vehicle License Fees ($2,570) and an FTB 
            refund of funds taken from an escrow account as a result of a 
            tax lien, that was subsequently determined to be an 
            overpayment of taxes ($39,082.) For these two claims only, 
            there is a 15% surcharge charged to the affected departments 
            (FTB and DMV) for board costs that amounts to $6,300.

           5)Related Legislation.  AB 1531 (Fuentes), Statutes of 2012, 
            which passed with no dissenting votes, appropriates $859,738 
            from the General Fund ($789,202.20) and various special funds 
            for the payment of 273 claims (all stale-dated warrants) 
            approved by the board.   
             Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081