BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Christine Kehoe, Chair SB 124 (Kehoe) - Claims. Amended: August 20, 2012 Policy Vote: None Urgency: Yes Mandate: No Hearing Date: August 29, 2012 Consultant: Bob Franzoia This bill meets the criteria for referral to the Suspense File. Pursuant to the committee's rules, the Suspense File rule does not apply to the provisions of this bill as judgments and settlement are considered valid obligations of the state. Additionally, judgments and settlements may have time sensitivity. Bill Summary: SB 124 would appropriate $1,422,000 from the General Fund for the payment of claims. Fiscal Impact: $1,422,000 appropriation from the General Fund in 2012-13. The Parent Voices settlement stipulates that if payment is not made within 60 days of the enactment of a claims bill, interest shall begin to accrue at an annual rate of seven percent. The Harris settlement stipulates that in no event shall interest accrue before October 2012. Background: Claims bills are authored by the chairs of the Appropriations Committees to provide appropriation authority for judgment and settlement claims and for claims approved by the Victim Compensation and Government Claims Board. Proposed Law: Harris v. California National Guard. Los Angeles County Superior Court, Case No. BC 399229. $990,000 settlement. This 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 SB 124 (Kehoe) Page 1 abortion. Concurrently, the killer, now serving 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. Parent Voices et al. v. Jack O'Connell. Alameda County Superior Court, Case No. RG10544021. $432,000 settlement. The 2010 Budget Act terminated CalWORKs Stage 3 child care services, effective November 1, 2010. Child care advocates and several affected parents sued the California Department of Education 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 a court order, the termination of Stage 3 child care 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 child care services 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 child care services. Related Legislation: SB 1558 (Kehoe) Chapter 20/2012 appropriated $1.3 million from the General Fund and $1.3 million from the Federal Trust Fund to the Department of Justice to pay the settlement in Darling v. Douglas, U.S. District Court, Northern District. SB 1504 (Kehoe) Chapter 19/2012 revised interest payment timelines for state claims. SB 730 (Kehoe) Chapter 5/2012 appropriated $13 million to the Department of Justice to pay for six settlements. Two of the settlements contained interest provisions. SB 124 (Kehoe) Page 2 Staff Comments: Government Code 11040 states the intent of the Legislature that the Attorney General be employed as counsel for the representation of state agencies and departments in judicial and other proceedings except with respect to the state officers and agencies specified by title or name in Government Code 11041. Government Code 11041 designates several entities, including the California Department of Education, which may represent themselves.