The Overview

Ever wonder what happens when a court orders California to pay and no money is set aside for it? Eight such cases just got their answer in a $7.39 million appropriation. California set aside $7,391,650.83, more than $7.3 million, to pay claims, settlements, or judgments arising from eight specified actions against the state. ​

California's Claims against the state: appropriation, AB 2597, became law when Gov. Gavin Newsom (D) signed it Sept. 27. Because the legislature declared it an urgency statute, the law took effect immediately upon signing.

What the Law Does

Under California law, when the state does not have enough money already appropriated to pay certain claims, settlements, or judgments against it, the Attorney General must report those unpaid obligations to the chair of either the Senate or Assembly Appropriations Committee, who then introduces legislation to fund them. This law follows that process for eight specific cases.

The law appropriates $7,391,650.83 from the General Fund to the Attorney General to cover eight such specified claims, settlements, or judgments. The money flows directly from the state's main operating account, meaning it competes with other spending priorities funded from the same source. Each of the eight claimants is entitled to payment once the appropriation is in place, with the Attorney General responsible for distributing the funds.

The claims-bill process exists because California, like most states, cannot be sued without its consent. When a court or settlement requires the state to pay, and no existing appropriation covers the amount, the money must be authorized by the legislature before it can go out the door. Without a bill like this one, valid judgments and settlements can sit unpaid for months or longer while claimants wait.

Legislative Status

Asm. Buffy Wicks (D) sponsored the bill. Both chambers passed it without a single no vote: the Assembly approved it 76–0 on Aug. 10, and the Senate passed it 40–0 on Aug. 30. The unanimous margins in both chambers reflect the routine, noncontroversial nature of claims bills, which typically draw little opposition because they pay obligations the state has already incurred.

The California Globe described the law as a $7,391,650.83 appropriation to pay claims, settlements, or judgments arising from eight specified actions against the state.

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