Existing law requires the California Victim Compensation and Government Claims Board to ensure that all claims that have been approved by the board and for which there exists no legally available appropriation are submitted for legislative approval at least twice each calendar year.

This bill would appropriate $3,277,141.90 from various funds for the payment of claims accepted by the board, as specified. The bill would require the Controller, upon the request of the board and in a form prescribed by the Controller, to transfer surcharges and fees from the specified Budget Act items of appropriation identified in the bill to Item 7870-001-0001 of Section 2.00 of the Budget Act of 2015. This bill would require the board to provide a report of the amounts recovered pursuant to this authority to the Department of Finance within 90 days of the enactment of this bill.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the California Victim Compensation and Government Claims Board to ensure that all claims that have been approved by the board and for which there exists no legally available appropriation are submitted for legislative approval at least twice each calendar year.

This bill would appropriate $3,277,141.90 from various funds for the payment of claims accepted by the board, as specified. The bill would require the Controller, upon the request of the board and in a form prescribed by the Controller, to transfer surcharges and fees from the specified Budget Act items of appropriation identified in the bill to Item 7870-001-0001 of Section 2.00 of the Budget Act of 2015. This bill would require the board to provide a report of the amounts recovered pursuant to this authority to the Department of Finance within 90 days of the enactment of this bill.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the California Victim Compensation and Government Claims Board to ensure that all claims that have been approved by the board and for which there exists no legally available appropriation are submitted for legislative approval at least twice each calendar year.

This bill declares the intent of the Legislature to appropriate funds for the payment of claims allowed by the board. would appropriate $3,277,141.90 from various funds for the payment of claims accepted by the board, as specified. The bill would require the Controller, upon the request of the board and in a form prescribed by the Controller, to transfer surcharges and fees from the specified Budget Act items of appropriation identified in the bill to Item 7870-001-0001 of Section 2.00 of the Budget Act of 2015. This bill would require the board to provide a report of the amounts recovered pursuant to this authority to the Department of Finance within 90 days of the enactment of this bill.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the California Victim Compensation and Government Claims Board to ensure that all claims that have been approved by the board and for which there exists no legally available appropriation are submitted for legislative approval at least twice each calendar year.

This bill declares the intent of the Legislature to appropriate funds for the payment of claims allowed by the board.

This bill would declare that it is to take effect immediately as an urgency statute.

SENATE THIRD READING

STR Bill Id:SB 304

Author:(Lara)

As Amended Ver:July 8, 2015

2/3 vote. Urgency

SENATE VOTE: 36-0

SUMMARY: This bill, an urgency measure, one of two annual state claims bills introduced pursuant to California Victim Compensation and Government Claims Board (board) determinations and carried by the Appropriations Committee chairs, appropriates $3,277,141.90 from specified funds to the board for the payment of 199 state claims.

FISCAL EFFECT: Appropriates $3,277,141.90 from various funds to the board, including $621,535.15 from the General Fund, to the board for the payment of 197 state claims for reissuance of stale-dated warrants and $2,610,709.44 in capital outlay bond funds, for two claims, to reissue payments for Los Angeles Community College District (LACCD) projects that previously received an allocation, but the funds reverted.

COMMENTS:

1. Rationale. Government Code Section 13928 requires the board to ensure that all claims approved by the board, for which no legally available appropriation exists, are submitted for legislative approval at least twice during each calendar year. In general, the board approves claims in November and February.

The re-issuance of stale-dated warrants (expired checks) is the most prevalent claim approved by the board. For stale-dated warrants, the Controller must confirm the check was not cashed and that more than three years has passed 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.

Electronic claims were submitted for grants from the 2006 Community College Capital Outlay Bond Fund (Fund 6049) for contract costs incurred by the LACCD. These claims were denied because the appropriation was thought to have reverted. These eligible claims were previously approved in AB 139 (Fuentes) Chapter 194, Statutes of 2011, but could not be paid because the funding source was identified as a specific 2011 Budget Act item (6870-303-6049), which was invalid. This bill appropriates funds directly from Fund 6049 to the board for payment of the LACCD claims.

2. Related Legislation. AB 165 (Gomez), Chapter 7, Statutes of 2015, an urgency measure, appropriated $504,743.99 in various state funds, including $227,308.96 from the General Fund, to the board for the payment of 110 state claims for reissuance of stale-dated warrants. The bill also appropriated $968,400 to the board for payment of three specified erroneous conviction claims.

Analysis Prepared by: Pedro Reyes / APPR. / (916) 319-2081 FN: 0001696

Date of Hearing: August 26, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

SBPCA Bill Id:SB 304

Author:(Lara) – As Amended Ver:July 8, 2015

Urgency: Yes State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill, an urgency measure, one of two annual state claims bills introduced pursuant to California Victim Compensation and Government Claims Board (board) determinations and carried by the Appropriations Committee chairs, appropriates $3,277,141.90 from specified funds to the (board) for the payment of 199 state claims.

FISCAL EFFECT:

Appropriates $3,277,141.90 from various funds to the (board), including $621,535.15 from the General Fund, to the board for the payment of 197 state claims for reissuance of stale-dated warrants and $2,610,709.44 in capital outlay bond funds, for two claims, to reissue payments for Los Angeles Community College District (LACCD) projects that previously received an allocation, but the funds reverted.

COMMENTS:

1. Rationale. The Government Code Section 13928 requires the board to ensure that all claims approved by the board, for which no legally available appropriation exists, are submitted for legislative approval at least twice during each calendar year. In general, the board approves claims in November and February.

The re-issuance of stale-dated warrants (expired checks) is the most prevalent claim approved by the board. For stale-dated warrants, the Controller must confirm the check was not cashed and that more than three years has passed 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.

Electronic claims were submitted for grants from the 2006 Community College Capital Outlay Bond Fund (Fund 6049) for contract costs incurred by the LACCD. These claims were denied because the appropriation was thought to have reverted. These eligible claims were previously approved in AB 139 (Fuentes, Chapter 194, Statutes of 2011), but could not be paid because the funding source was identified as a specific 2011 Budget Act item (6870-303-6049), which was invalid. This bill appropriates funds directly from Fund 6049 to the board for payment of the LACCD claims.

2. Related Legislation. AB 165 (Gomez, Chapter 7, Statutes of 2015), an urgency measure, appropriated $504,743.99 in various state funds, including $227,308.96 from the General Fund, to the board for the payment of 110 state claims for reissuance of stale-dated warrants. The bill also appropriated $968,400 to the board for payment of three specified erroneous conviction claims.

Analysis Prepared by: Pedro R. Reyes / APPR. / (916) 319-2081

 THIRD READING  

Bill No: SB 304

Author: Lara (D)

Amended: 7/8/15

Vote: 27 - Urgency

SENATE APPROPRIATIONS COMMITTEE: 7- 0, 7/13/15

AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

SUBJECT: State claims

SOURCE: Author

DIGEST: This bill, an urgency measure, appropriates $3,276,623.90 from specified funds to the California Victim Compensation and Government Claims Board (board) for the payment of 199 state claims.

ANALYSIS: Existing law authorizes the board to assess a surcharge on a state entity against which an approved claim is filed, in an amount not to exceed 15 percent of the total approved claim. These surcharges support the board’s activities, but do not apply to approved claims to reissue expired warrants.

This bill:

1. Appropriates $3,276,623.90 in various state funds, including $621,535.15 from the General Fund, to the board for the payment of 197 state claims for reissuance of stale-dated warrants.

2. Appropriates $2,610,709.44 in capital outlay bond funds to reissue payments for Los Angeles Community College District (LACCD) projects that previously received an allocation, but the funds reverted.

3. Requires the State Controller to transfer specified surcharges on claims for the support of the board, pursuant to provisions in existing law.

Background

The State Board of Control was established in 1945. It was revised and renamed the Victim Compensation and Government Claims Board by AB 2491 (Jackson, Chapter 1016, Statutes of 2000). Government Code Section 13928 requires the board to ensure that all claims that have been approved by the board, and for which no legally available appropriation exists, are submitted for legislative approval at least twice during each calendar year. In general, the board will approve claims in November and 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. 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 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 10 years of their maturity date (there are no such claims in this bill), but the majority of warrants are payroll or tax refund checks.

Electronic claims were submitted for grants from the 2006 Budget Act Community College Capital Outlay Bond Fund (Fund 6049) for contract costs incurred by the LACCD. These claims were denied because the appropriation was thought to have reverted. These eligible claims were previously approved in AB 139 (Fuentes, Chapter 194, Statutes of 2011), but could not be paid because the funding source was identified as a specific 2011 Budget Act item (6870-303-6049), which was invalid. This bill appropriates funds directly from Fund 6049 to the board for payment of the LACCD claims.

Prior/Related Legislation

AB 165 (Gomez, Chapter 7, Statutes of 2015), an urgency measure, appropriates $504,743.99 in various state funds, including $227,308.96 from the General Fund, to the board for the payment of 110 state claims for reissuance of stale-dated warrants. The bill also appropriates $968,400 to the board for payment of three specified erroneous conviction claims.

AB 139 (Fuentes, Chapter 194, Statutes of 2011) appropriated various funds to the board for the payment of state claims. The claims for the Los Angeles Community College District that are in this bill were also included in AB 139, but were never paid because the funding source was not identified correctly in the bill and was considered invalid.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee:

• Stale-dated warrants: General Fund appropriations in the amount of $621,535.15 to pay 171 claims, and appropriations from specific budget items in the amount of $44,897.31 to pay 26 claims (various funds). All of these claims are for reissuance of stale-dated warrants (expired checks). The individual claim amounts range from $50 to $93,758.06.
  
  

• Capital Outlay appropriations: Bond fund appropriations in the amount of $2,610,709.44 to pay two claims to the LACCD for expenditures that were previously approved, but for which the original bond fund allocations had reverted. (Community College Capital Outlay Bond Fund – Fund 6049)
  
  

• Board Surcharges: Shift of $110,025.69 in funds from the Community College Capital Outlay Bond Fund to the General Fund for surcharges related to the Capital Outlay claims that support of the board’s activities.

SUPPORT: (Verified 7/15/15)

None received

OPPOSITION: (Verified 7/15/15)

None received

Prepared by: Mark McKenzie / APPR. / (916) 651-4101

7/15/15 16:41:48

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

SB 304 (Lara) - State claims

This bill does not meet the criteria for referral to the Suspense File. Pursuant to the Committee’s rules, the Suspense File rule does not apply to this bill as claims are considered valid obligations of the state. Additionally, claims may have time sensitivity.

Bill Summary:

SB 304, an urgency measure, would appropriate $3,276,623.90 from specified funds to the California Victim Compensation and Government Claims Board (board) for the payment of 199 state claims.

Fiscal Impact:

• Stale-dated warrants: General Fund appropriations in the amount of $621,535.15 to pay 171 claims, and appropriations from specific budget items in the amount of $44,897.31 to pay 26 claims (various funds). All of these claims are for reissuance of stale-dated warrants (expired checks). The individual claim amounts range from $50 to $93,758.06.
  
  

• Captial Outlay appropriations: Bond fund appropriations in the amount of $2,610,709.44 to pay two claims to the Los Angeles Community College District for expenditures that were previously approved, but for which the original bond fund allocations had reverted. (Community College Capital Outlay Bond Fund – Fund 6049)
  
  

• Board Surcharges: Shift of $110,025.69 in funds from the Community College Capital Outlay Bond Fund to the General Fund for surcharges related to the Capital Outlay claims that support of the board’s activities.

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 that have been approved by the board, and for which no legally available appropriation exists, are submitted for legislative approval at least twice during each calendar year. In general, the board will approve claims in November and 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. 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.

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. 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.

Existing law authorizes the board to assess a surcharge on a state entity against which an approved claim is filed, in an amount not to exceed 15 percent of the total approved claim. These surcharges support the board’s activities, but do not apply to approved claims to reissue expired warrants.

Proposed Law:

SB 304, an urgency measure, appropriates $3,276,623.90 in various state funds, including $621,535.15 from the General Fund, to the board for the payment of 197 state claims for reissuance of stale-dated warrants. The bill also appropriates $2,610,709.44 in capital outlay bond funds to reissue payments for Los Angeles Community College District projects that previously received an allocation, but the funds reverted.

Related Legislation:

AB 165 (Gomez), Ch. 7/2015, an urgency measure, appropriates $504,743.99 in various state funds, including $227,308.96 from the General Fund, to the board for the payment of 110 state claims for reissuance of stale-dated warrants. The bill also appropriates $968,400 to the board for payment of three specified erroneous conviction claims.

AB 139 (Fuentes), Ch. 194/2011 appropriated various funds to the board for the payment of state claims. The claims for the Los Angeles Community College District that are in this bill were also included in AB 139, but were never paid because the funding source was not identified correctly in the bill and was considered invalid.

Staff Comments:

Electronic claims were submitted for grants from the 2006 Budget Act Community College Capital Outlay Bond Fund (Fund 6049) for contract costs incurred by the Los Angeles Community College District. These claims were denied because the appropriation was thought to have reverted. As noted above, these eligible claims were previously approved in AB 139 (Fuentes) in 2011, but could not be paid because the funding source was identified as a specific 2011 Budget Act item (6870-303-6049), which was invalid. This bill would appropriate funds directly from Fund 6049 to the board for payment of the LACCD claims.

The bill also requires the Controller to transfer specified surcharges on claims for the support of the board, pursuant to provisions in existing law.

-- END --