6472 TORT LIABILITY BUDGET PROCEDURE
(Revised 2/98)
The Governor's Budget, Equity Claims of Board of Control and Settlements and Judgments by Department of Justice (Budget No. 9670), includes a display of costs for the administration, investigation, adjustments, defense, and payment of tort liability claims, settlements, and judgments against the state, its officers, and employees. The display also includes costs for special insurance policies. This display and the appropriation item language and amount are prepared by DOF with the assistance of the Department of Justice (DOJ), Board of Control (BOC), Department of Transportation (DOT), and Department of General Services (DGS). The information to be provided by each of these agencies is discussed below.
By separate Budget Act item, a specific amount is appropriated from the General Fund to pay claims against General Fund supported agencies; and unspecified amounts from each special fund are appropriated to pay claims for agencies supported from those funds. The appropriation is for expenditure by the DOJ, subject to the discretionary approval of the DOF. In accordance with SAM Section 8712, DOF approval is required for all claims in excess of $35,000.
By October 1 of each year, DOJ, DOT and the BOC shall submit reports to DOF providing actual cost data for the prior fiscal year. Such data is to include the following:
1. Claim payment expenditures by fund.
2. Staff services expenditures by fund.
Although the state no longer carries general tort liability insurance, several departments and agencies carry specialized insurance policies for specific purposes, e.g., Cal Expo and water project bond programs. The DGS Insurance Office shall submit to DOF by October 1 of each year, for all departments and agencies, actual prior year, estimated current year, and anticipated budget year expenditures for tort liability insurance premiums.
