BILL ANALYSIS SB 911 Page 1 SENATE THIRD READING SB 911 (Kehoe) As Amended April 12, 2010 2/3 vote. Urgency SENATE VOTE :29-4 APPROPRIATIONS 17-0 ----------------------------------------------------------------- |Ayes:|Fuentes, Conway, Ammiano, | | | | |Bradford, Charles | | | | |Calderon, Coto, Davis, | | | | |Monning, Ruskin, Harkey, | | | | |Miller, Nielsen, Norby, | | | | |Skinner, Solorio, | | | | |Torlakson, Torrico | | | | | | | | ----------------------------------------------------------------- SUMMARY : Appropriates $840,000 (General Fund (GF)) to the Department of Justice (DOJ) to pay settlements in Huntsman v. California Department of Forestry ($623,000) and California School Board Association v. State of California ($217,000). Any funds appropriated in excess of the amount required for the payment of these claims shall revert to the GF. FISCAL EFFECT : Appropriates $840,000 (GF) to pay for two settlements, and specifies that any funds appropriated in excess of the amount required will revert to the GF in June 2009. COMMENTS : 1)Rationale. This bill is one of two annual bills carried by the Appropriations chairs to provide appropriation authority for state judgments and settlements as approved by the DOJ and the Department of Finance. 2)Case background. a) Huntsman v. California Department of Forestry and Fire Protection, Fresno County Superior Court Case No. 08 CE CG 02671 - $623,000 SB 911 Page 2 This case involved discrimination claims against the California Department of Forestry and Fire Protection (CDFFP), including disability and discrimination, failure to provide reasonable accommodation, and retaliation. The case was settled following mediation. Under the settlement, CDFFP agreed to pay the plaintiff $585,000, plus interest. In exchange, the plaintiff has released all claims against the CDFFP. The DOJ and CDFFP believe the settlement reflects a reasonable compromise that serves the public interest. b) California School Boards Association v. State of California, Sacramento Superior Court Case No. 06CS01335 - $217,000 Assembly Bill 138 (Budget Committee, 2005) made a number of changes to California mandate law, including an amendment to Government Code Section 17556(f), to apply the reimbursement exception to legislation "related to" ballot measures. In light of these amendments, the Legislature directed the Commission on State Mandates to reconsider the School Accountability Report Card and Mandate Reimbursement test claims, and set aside the Open Meetings Act and Brown Act Reform test claims. In response, the Commission reconsidered claims it had previously found to have required reimbursement under article XIII B, Section 6 and, interpreting AB 138, found these claims were no longer reimbursable mandates. The California School Boards Association successfully challenged the constitutionality of AB 138 and the authority of the Legislature to order the reconsideration of prior mandate decisions. The Court of Appeal found that the Legislature's actions violated separation of powers principles. The court also held that expanding the scope of the statewide ballot reimbursement exception to laws merely "related to" the ballot measures was over-broad, and invalid. The parties entered into a stipulated order for an award of attorney's fees in the amount of $200,000, and SB 911 Page 3 costs in the amount of $2,423, plus interest. 3)Related legislation. AB 1714 (Fuentes), which also provides for the appropriation of funds for state judgments and settlements subsequent to SB 911, is pending in this committee. Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081 FN: 0004742