BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1504
                                                                  Page  1

          Date of Hearing:   May 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    SB 1504 (Kehoe) - As Amended:  April 17, 2012 

          Policy Committee:                              
          AppropriationsVote:

          Urgency:     Yes                  State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill:
           
          1)Specifies that interest on a claim approved by the California 
            Victims of Crime and Government Control Board (Board) for 
            which funds are appropriated by the Legislature shall not 
            begin to accrue until 180 days after the effective date of the 
            chaptered appropriation. (Current law specifies 30 days.)

          2)Specifies that interest on a judgment or settlement against 
            the state, as approved by the Department of Justice (DOJ) and 
            the Department of Finance (DOF) shall not begin to accrue 
            until 180 days from the date of the final judgment or 
            settlement. 

           FISCAL EFFECT  

           Unknown, likely minor state savings (GF and special fund) to the 
          extent interest payments are reduced.

          The Board is unaware of any cases in recent years in which 
          claimants received interest on the appropriated amount of a 
          claim and interest payment on DOJ settlements have been minor.  

           COMMENTS
           
           Rationale . This bill safeguards the state against interest 
          payments, ensuring the Legislature has adequate time to respond 
          to settlements, which can and do occur during legislative 
          recess, while allowing sufficient time for the administrative 
          duties of DOJ and the Board. 








                                                                  SB 1504
                                                                  Page  2


           Background  . Statute requires the Board to ensure that all 
          approved claims, for which there exists no appropriation, are 
          submitted for legislative approval at least twice each calendar 
          year. These appropriations are carried in 
          administration-sponsored bills authored by the Appropriations 
          Committee chairs. Claims range from several dollars to hundreds 
          of thousands of dollars, though claims tend to average about 
          $1,000, and most are stale-dated warrants (expired state 
          checks).

          Similarly, the Appropriations Committee chairs carry annual 
          administration-sponsored bills to provide appropriation 
          authority for legal settlements approved by DOJ and the 
          Department of Finance (DOF).

           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081