BILL ANALYSIS Ó SB 124 Page 1 SENATE THIRD READING SB 124 (Kehoe) As Amended August 16, 2012 2/3 vote. Urgency SENATE VOTE :22-16 PUBLIC SAFETY APPROPRIATIONS 12-0 (vote not relevant) ----------------------------------------------------------------- | | |Ayes:|Gatto, Blumenfield, | | | | |Bradford, | | | | |Charles Calderon, Campos, | | | | |Davis, Fuentes, Hall, | | | | |Hill, Cedillo, Mitchell, | | | | |Solorio | ----------------------------------------------------------------- SUMMARY : As amended (to add an urgency clause), this bill appropriates $1,422,000 from the General Fund (GF) to pay for two legal settlements, Harris v. California National Guard ($990,000) and Parent Voices et al. v. Jack O'Connell ($432,000). FISCAL EFFECT : Appropriates $1,422,000 from the GF - $990,000 to the Department of Justice (DOJ) and $432,000 to the Department of Education - to pay for two legal settlements. COMMENTS : Rationale. This bill is one of two or three annual bills carried by the Appropriations chairs to provide appropriation authority for legal settlements approved by DOJ and the Department of Finance (DOF). These settlements were entered into lawfully by the state upon advice of counsel (DOJ). They are binding state obligations. Harris v. California National Guard . This $990,000 settlement concludes the wrongful death case of Harris v. California National Guard. On August 24, 2007, a Staff Sergeant murdered an employee of the California National Guard at the Culver City Armory and was convicted of murder. The victim was pregnant with the married offender's child and had engaged in a series of discussions with the offender to encourage abortion, including alleged promises of a car in exchange for the abortion. Concurrently, the killer, now serving SB 124 Page 2 life-without-possibility-of-parole, engaged in conversations with others regarding harming the fetus. These conversations were passed on to National Guard authorities, who in turn, involved civilian authorities. On October 1, 2008, the victim's mother filed a wrongful death suit in state court as an individual and successor-in-interest to the victim. During the trial the Judge urged that, based on evidence produced, it was in the best interest of the state to settle the case. Parent Voices et al. v. Jack O'Connell . The 2010 Budget Act terminated California Work Opportunity and Responsibility to Kids (CalWORKs) Stage 3 Child Care services, effective November 1, 2010. Child care advocates and several affected parents sued the State Department of Education in Alameda County to halt termination of services for Stage 3 families. The petitioners claimed proper notice and due process were not provided, and that the state had a duty to attempt to transfer affected families to child care slots in other programs for which they were eligible. Pursuant to court order, the termination of Stage 3 services was delayed until December 31, 2010, to allow for eligibility screening and possible placement of Stage 3 families in other programs. As a result, approximately 4,500 children were placed in other programs. Funding for Stage 3 was restored in 2010-11, and the parties agreed in June 2011 to allow the children who had been placed in other programs to return to Stage 3. The suit has since been concluded, with the exception of the plaintiff's outstanding demand for attorneys' fees. While the plaintiffs assert the actual hours spent on the case amounts to more than $800,000, they have agreed to settle for $432,000 to cover the attorney's fees. The settlement stipulates that if payment of the fees is not made within 60 days of enactment of the settlements bill, interest will begin to accrue at an annual rate of 7%. Proposed amendments add an urgency clause . 1)Related legislation . SB 124 Page 3 a) SB 1558 (Kehoe), chaptered in June 2012, appropriated $2.6 million ($1.3 GF; $1.3 Federal Trust Fund) to the Department of Justice (DOJ) to pay the settlement in Darling v. Douglas, U.S. District Court, Northern District. b) SB 730 (Kehoe), chaptered in February 2012, appropriated $13 million to DOJ to pay for six settlements, with interest in two cases. c) AB 140 (Fuentes) and SB 206 (Kehoe), both chaptered in 2011, appropriated funds for state settlements last year. Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081 FN: 0005087