BILL ANALYSIS �
SB 1504
Page 1
SENATE THIRD READING
SB 1504 (Kehoe)
As Amended April 17, 2012
2/3 vote. Urgency
SENATE VOTE :35-2
APPROPRIATIONS 16-1
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|Ayes:|Fuentes, Harkey, | | |
| |Blumenfield, Bradford, | | |
| |Charles Calderon, Campos, | | |
| |Davis, Gatto, Hall, Hill, | | |
| |Lara, Mitchell, Nielsen, | | |
| |Norby, Solorio, Wagner | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Donnelly | | |
| | | | |
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SUMMARY: Specifies that interest on a claim approved by the
California Victim Compensation and Government Claims 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.)
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. (There
is no limit in current law.)
FISCAL EFFECT : Unknown, likely minor state savings (General
Fund (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 : This bill safeguards the state against interest
payments, ensuring the Legislature has adequate time to respond
SB 1504
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to settlements, which can and do occur during legislative
recess, while allowing sufficient time for the administrative
duties of DOJ and the Board.
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 FN:
0003681