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                                        
           
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          |Ayes:|Fuentes, Conway, Ammiano, |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Coto, Davis,    |     |                          |
          |     |Monning, Ruskin, Harkey,  |     |                          |
          |     |Miller, Nielsen, Norby,   |     |                          |
          |     |Skinner, Solorio,         |     |                          |
          |     |Torlakson, Torrico        |     |                          |
          |     |                          |     |                          |
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           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
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               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
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               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 


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