BILL ANALYSIS Ó
AB 234
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ASSEMBLY THIRD READING
AB 234 (Gatto)
As Amended August 5, 2013
2/3 vote. Urgency
APPROPRIATIONS 16-0
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|Ayes:|Gatto, Harkey, Bocanegra, | | |
| |Bradford, Ian Calderon, | | |
| |Campos, Donnelly, Eggman, | | |
| |Gomez, Hall, Holden, | | |
| |Linder, Pan, Quirk, | | |
| |Wagner, Weber | | |
| | | | |
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SUMMARY : Appropriates $20.75 million General Fund (GF) to the
Department of Justice (DOJ) to pay two settlements. Any funds
appropriated in excess of the amounts required for payment of
these claims revert to the GF.
FISCAL EFFECT : One-time GF appropriation of $20.75 million to
DOJ as follows:
1)$5.75 million to pay the settlement in Thomas v. State of
California (CalFire), Alameda Superior Court.
2)$15 million to pay the settlement in Amethyst Kirwin, et al.
v. Timothy McClelland, et al., San Bernardino Superior Court.
COMMENTS :
1)Rationale . This bill is one of several bills carried by the
chairs of the Appropriations Committees each year 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.
2)Case Background .
a) Thomas v. State of California (Department of Public
Health (DPH)), Alameda Superior Court.
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This personal injury settlement arises from a December 9,
2011, motorcycle/automobile collision. Plaintiff Eric
Thomas was riding his motorcycle on Doolittle Drive in San
Leandro, California when he collided with a car driven by
DPH Inspector, Peter Yattaw. Mr. Yattaw was in the course
and scope of his employment for DPH at the time of the
collision. Mr. Thomas is paralyzed from the chest down as
a result of the accident. Mr. Thomas initiated suit
against the state.
The parties entered mediation with the agreement that Mr.
Thomas and Mr. Yattaw were equally at fault for the
collision. The agreement was based on accident
reconstruction analyses. The report of the San Leandro
Police Department concluded Mr. Thomas was speeding and Mr.
Yattaw failed to yield to an oncoming driver. At
mediation, the parties presented reports from medical
experts, life care planners and economists. After
negotiations, the state, represented by the Office of the
Attorney General, agreed to settle the lawsuit for $5.75
million with 40% ($2.3 million) to be used to purchase an
annuity to provide monthly payments for the medical care of
the plaintiff.
b) Amethyst Kirwin, et al. v. Timothy McClelland, et al.,
San Bernardino Superior Court.
On August 1, 2012, a three-car traffic accident occurred on
the I-210 freeway in San Bernardino. CalFire Chief Timothy
McClelland, who was driving a state vehicle within the
course and scope of his employment, rear-ended Gregory
Kirwin at 70 miles per hour (mph). Mr. Gregory Kirwin was
fatally injured. Plaintiffs Amethyst and Belle Kirwin, Mr.
Kirwin's children (ages four and seven at time of the
accident), sued for wrongful death negligence. The state,
on its own behalf and on behalf of Chief McClelland,
settled this case for $15 million, most of which will be
placed into a structured settlement and special needs
trusts for the support of Mr. Kirwin's children.
3)The Motor Vehicle Insurance Account (MVIA) is essentially a
state insurance fund into which state departments pay a
premium, based on a five-year rolling average of the
department's costs, to cover the costs of vehicle accident
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liability and settlements. For example, over the past three
years, including 2013-14 as projected, the MVIA averaged $38
million per year in expenditures, and $45 million in revenue.
Generally accident settlements involving a state vehicle would
be paid from the MVIA. Due to the size of the two claims in
this bill, and a $15.6 million claim passed and chaptered in
SB 371 (De Leon) earlier this year, however, the Department of
Finance recommended these claims be paid from the GF since the
MVIA cannot bear the cost of these large settlements in one
year, and the impact of the claims on the premiums of the
affected departments - the Department of Public Health and
CalFire - would require a GF increase to its budget to cover
the drain on the MVIA.
4)Related legislation .
a) SB 371 (De León), Chapter 9, Statutes of 2013,
appropriated $15.6 million to pay for one settlement.
b) SB 1558 (Kehoe), Chapter 20, Statutes of 2012,
appropriated $2.6 million to pay for one settlement.
c) SB 730 (Kehoe), Chapter 5, Statutes of 2012,
appropriated $15.56 million to pay for six settlements.
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081
FN:
0001677