BILL ANALYSIS �
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UNFINISHED BUSINESS
Bill No: SB 1065
Author: Kehoe (D)
Amended: 8/6/12
Vote: 27 - Urgency
SENATE GOVERNMENTAL ORGANIZATION COMM. : Not relevant
SENATE APPROPRIATIONS COMMITTEE : 6-0, 6/4/12
AYES: Kehoe, Walters, Alquist, Dutton, Lieu, Steinberg
NO VOTE RECORDED: Price
SENATE FLOOR : 32-2, 6/7/12
AYES: Alquist, Anderson, Blakeslee, Calderon, Cannella,
Corbett, Correa, De Le�n, DeSaulnier, Dutton, Emmerson,
Evans, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe,
La Malfa, Leno, Lieu, Liu, Lowenthal, Negrete McLeod,
Pavley, Simitian, Steinberg, Vargas, Walters, Wolk,
Wright, Yee
NOES: Fuller, Wyland
NO VOTE RECORDED: Berryhill, Padilla, Price, Rubio,
Runner, Strickland
ASSEMBLY FLOOR : 79-0, 8/22/12 - See last page for vote
SUBJECT : State claims
SOURCE : California Victim Compensation and Government
Claims Board
DIGEST : This bill appropriates $624,672.86 from the
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General Fund to pay for 117 claims against the state.
Assembly Amendments increase the Senate version
appropriation from $167,329.15 to $624,672.86.
ANALYSIS : The State Board of Control was established in
1945. It was revised and renamed the Victim Compensation
and Government Claims Board (Board) by AB 2491 (Jackson),
Chapter 1016, Statutes of 2000. Government Code Section
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 Section 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.
The re-issuance of stale-dated warrants is the most
prevalent claim approved by the Board. For stale-dated
warrants, the State 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 are payroll or tax refund checks.
Comments
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
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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 that the funds have reverted to the
General Fund.
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.
Related Legislation
AB 1531 (Fuentes) appropriate $859,738.51from the General
Fund ($789,202.20) and various special funds for the
payment of 273 claims approved by the Board.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee,
appropriates $167,329.15 from the General Fund.
SUPPORT : (Verified 8/23/12)
California Victim Compensation and Government Claims Board
(source)
Department of Finance
ASSEMBLY FLOOR : 79-0, 08/22/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall, Bill
Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell,
Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill,
Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara,
Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza, Miller,
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Mitchell, Monning, Morrell, Nestande, Nielsen, Norby,
Olsen, Pan, Perea, V. Manuel P�rez, Portantino, Silva,
Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Roger Hern�ndez
DLW:dn 8/23/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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