California. State Board of Control

Administrative History

The California Legislature established the Board of Examiners in 1856 to examine the books of the State Controller and State Treasurer and to oversee the money in the treasury (Chapter 85, Statutes of 1856). The Board's membership consisted of the Governor, the Secretary of State, and the Attorney General. The Legislature enacted another law in 1858 revising the role of the Board to include ruling on claims against the State for which appropriations had been made, counting the money in the state treasury, and examining the books of the Controller and Treasurer. (Chapter 257, Statutes of 1858)

In 1911, the California Legislature abolished the Board of Examiners and established the Board of Control in its place to provide many of the functions of the previous organization. (Chapter 349, Statutes of 1911) The Legislature charged the Board of Control with the fiscal supervision of state departments, hospitals, prisons, reformatories, boards, commissions, and bureaus. The Legislature reorganized the Board of Control again in 1927 providing new responsibilities such as performing as the governing body of the Department of Finance; regulating travel expenses and allowances for state employees and officers, as well as auditing and determining claims against the State (Chapter 251, Statutes of California 1927). Membership of the Board of Control no longer consisted of the Governor, Secretary of State, and the Attorney General, but consisted of the Director of the Department of Finance, acting as chairman, the State Controller, and a third member appointed by the Governor serving a four-year term.

Activity of the Board of Control from its reorganization in 1927 through the mid-1960s consisted of many routine procedures. Determination and authorization of claims during its twice-monthly meetings was a significant part of the workload. The State Merit Award Program, instituted in 1950, provided one of the earliest specialized claims programs administered by the Board of Control. The Merit Award Program allowed state employees to be financially rewarded for their suggestions that reduced or eliminated state expenditures or improved operations after those suggestions were implemented. The Board of Control appointed four of the five board members to the State Merit Award Board and provided final action decisions for compensation to state employees. Board of Control administrative involvement in the Merit Award Program ceased by 1976 when the program was transferred into the Department of General Services.

The Claims, Rulemaking, and Fiscal Control Program within the Board of Control developed in the early 1970s and became known as the Government Claims Program. The increasing size and complexity of state government required that uniform rules and regulations be developed and implemented regarding fiscal matters and the need for equitable treatment. Another reason to create the Government Claims Program was the increased number of claims filed against the State overloading the courts and therefore creating a substantial backlog. This program dealt with specific fiscal operations managed by the Board such as: review of discharge of accounts receivable by the state; refunds, credits, and cancellation of taxes; sale and disposal of unclaimed property; transfer of funds between state agencies; determination of pro-rata share of administrative costs payable by each state agency; determination of headquarters for purposes of travel claims; and hearings regarding purchase and bid protests.

A significant program administered by the Board of Control was Indemnification of Private Citizens, later becoming the Victims of Crime Compensation Program. Established in 1973, this was the first state-run program in the nation to financially compensate victims who had been injured and suffered financial hardship due to a crime of violence or citizens who had been injured or whose personal property had sustained damage while performing acts benefiting the public (Chapter 1144, Statutes of 1973).

From the guide to the Board of Control Records, 1856-1995, (California State Archives)