BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 234|
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THIRD READING
Bill No: AB 234
Author: Gatto (D)
Amended: 8/5/13 in Assembly
Vote: 27 - Urgency
SENATE APPROPRIATIONS COMMITTEE : 7-0, 8/26/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
ASSEMBLY FLOOR : 74-1, 8/19/13 - See last page for vote
SUBJECT : Claims against the state: payment
SOURCE : Author
DIGEST : This bill appropriates $20.75 million from the
General Fund (GF) to pay two settlements against the state. Any
funds appropriated in excess of the amounts required for payment
of these claims would revert to the GF.
ANALYSIS : This bill is one of several annual bills carried by
the chairs of the Appropriations Committees to provide
appropriation authority for legal settlements approved by
Department of Justice (DOJ) and the Department of Finance (DOF).
These settlements were entered into lawfully by the state upon
advice of DOJ. They are binding state obligations.
The Motor Vehicle Insurance Account (Account) 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 liability and
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settlements. Over the past three years, the Account averaged
$38 million per year in expenditures and $45 million in revenue.
Generally accident settlements involving a state vehicle would
be paid from the Account. 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, Chapter 9, Statutes of 2013) earlier this year,
however, DOF recommended these claims be paid from the GF. The
Account 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 (DPH) and
Department of Forestry and Fire Protection (CAL FIRE) - would
require a GF increase to its budget to cover the drain on the
Account.
This bill appropriates $20.75 million from the GF to pay two
settlements against the state. Any funds appropriated in excess
of the amounts required for payment of these claims would revert
to the GF.
The settlements to be funded by this bill are:
Thomas v. State of California (DPH), Alameda Superior Court
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, when
he collided with a car driven by DPH Inspector, Peter Yattaw.
Mr. Yattaw was in the course and scope of his employment for
the 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
$5,750,000 with 40% ($2,300,000) to be used to purchase an
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annuity to provide monthly payments for the medical care of
the plaintiff.
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. CAL FIRE Chief Timothy
McClelland, who was driving a state vehicle within the course
and scope of his employment, rear-ended Gregory Kirwin at 70
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.
Related Legislation
SB 371 (de León, Chapter 9, Statutes of 2013) appropriated $15.6
million to pay for one settlement.
SB 369 (de León, 2013) appropriates $414,054.01 from the GF and
various special funds to pay state claims. The claims are for
155 stale dated warrants.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 74-1, 8/19/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Chesbro, Conway, Cooley, Dahle, Daly,
Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines,
Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell, Gray, Grove,
Hagman, Hall, Harkey, Roger Hernández, Holden, Jones,
Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Perea, Quirk,
Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Wagner,
Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A.
Pérez
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NOES: Chávez
NO VOTE RECORDED: Bigelow, Patterson, V. Manuel Pérez, Vacancy,
Vacancy
JA:k 8/29/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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