BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 1617 (Gatto) - State Claims.
          
          Amended: June 11, 2014          Policy Vote: None
          Urgency: Yes                    Mandate: No
          Hearing Date: August 11, 2014                           
          Consultant: Mark McKenzie       
          
          Pursuant to the committee's rules, the Suspense File rule does  
          not apply to the provisions of this bill as claims are  
          considered valid obligations of the state.  Additionally, claims  
          may have time sensitivity. 
           
          
          Bill Summary: AB 1617, an urgency measure, would appropriate  
          $745,043 from specified funds to the California Victim  
          Compensation and Government Claims Board (Board) for the payment  
          of 136 state claims.  The bill would also appropriate $1,450,200  
          from the General Fund to the board for the payment of three  
          erroneous conviction claims.  

          Fiscal Impact: 
               Stale-dated warrants  : General Fund appropriations in the  
              amount of $450,950 to pay 121 claims, and appropriations  
              according to a specified schedule from various funds in the  
              amount of the amount of $294,033 to pay15 claims.  All but  
              two of these claims are for reissuance of stale-dated  
              warrants (expired checks).  The two remaining claims are  
              $234 for a dental coverage overcharge, and $172 for overpaid  
              mobile home registration fees.  The individual stale-dated  
              warrant claim amounts range from $60 to $47,142.

               Erroneous convictions  : General Fund appropriations in the  
              amount of $1,450,200 to pay the claims of Francisco Carilllo  
              ($683,000), Jose Luis Diaz ($305,300), and Johnny Williams  
              ($461,600).

          Background: The State Board of Control was established in 1945.   
          It was revised and renamed the Victim Compensation and  
          Government Claims Board by Chapter 1016/2000 (AB 2491, Jackson).  
           Government Code 13928 requires the Board to ensure that all  
          claims that have been approved by the Board, and for which no  
          legally available appropriation exists, are submitted for  








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          legislative approval at least twice during each calendar year.   
          In general, the board will approve claims in November and  
          February.  Those claims are reported to the chairs of the  
          Appropriations Committees who introduce bills appropriating  
          General Funds and special funds to pay the claims.  These bills  
          may appropriate funds in amounts to the penny for tens to  
          hundreds of claims.  Government Code 906 provides for the  
          payment of interest on claims approved by the Board for which an  
          appropriation has been made beginning 30 days after the  
          effective date of the law by which the appropriation is enacted.

          The re-issuance of stale-dated warrants is the most prevalent  
          claim approved by the Board.  For stale-dated warrants, the  
          Controller must confirm that (1) the check was not cashed and  
          has not been issued and (2) more than three years have elapsed  
          since the check was issued and the monies have reverted to the  
          General Fund or to the relevant special fund.  For these  
          warrants an appropriation is needed to reissue the payment.   
          This category also may include state treasury bonds that have  
          not been redeemed within ten years of their maturity date (there  
          are no such claims in this bill), but the majority of warrants  
          are payroll or tax refund checks.  

          Existing law, Penal Code Section 4900 et seq., authorizes a  
          person convicted and imprisoned for a felony to submit a claim  
          to the Board for pecuniary injury sustained as a result of  
          erroneous conviction and imprisonment.  Pursuant to SB 618  
          (Leno), Chap. 800/2013, if a person has secured a declaration of  
          factual innocence from the court after having his or her  
          conviction set aside, the finding is grounds for payment of a  
          claim against the state and upon application by the petitioner,  
          the Board shall, without a hearing, recommend to the Legislature  
          an appropriation to cover the claim. Likewise, if the court  
          finds the petitioner has proven his or her innocence by a  
          preponderance of the evidence, or the court grants a writ of  
          habeas corpus concerning a person who is unlawfully imprisoned,  
          or when the court vacates a judgment for a person on the basis  
          of new evidence concerning a person who is no longer unlawfully  
          imprisoned, and the court finds the evidence points unerringly  
          to innocence, the Board shall, upon application by the claimant,  
          without a hearing, recommend to the Legislature an appropriation  
          to cover the petitioner's claim.

          If these provisions do not apply, the claimant is required to  








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          introduce evidence in support of his or her claim at a hearing  
          before the Board, and the Attorney General (AG) may introduce  
          evidence in opposition.  The claimant must prove, by a  
          preponderance of the evidence, that the crime was either not  
          committed at all, or, if committed, was not committed by the  
          claimant; that the claimant did not contribute to the arrest or  
          conviction for the crime; and that the claimant sustained  
          pecuniary injury though the erroneous conviction and  
          imprisonment.  If a claimant meets the burden of proof, the  
          Board shall recommend to the Legislature that an appropriation  
          of $100 per day of incarceration served in a state prison  
          subsequent to the claimant's conviction.

          Proposed Law: AB 1617 would appropriate $745,043 from specified  
          funds to the Board for the payment of 136 state claims.  The  
          bill would also appropriate $1,450,200 from the General Fund to  
          the board for the payment of three erroneous conviction claims.
          AB 1617 is an urgency measure.

          Related Legislation: SB 1031 (deLeón), currently pending on the  
          Assembly Floor, would appropriate $776,946.59 in various state  
          funds, including $699,346.53 from the General Fund, to the board  
          for the payment of 332 state claims for reissuance of  
          stale-dated warrants.  The bill would also appropriate $305,900  
          to the board for payment of the erroneous conviction claim of  
          Mario Rocha.

          Staff Comments: Out of a total of 136 claims, 134 of them are  
          for stale-dated warrants, with individual claims ranging from  
          $60 to $43,476.  The two remaining claims are $234 for a dental  
          coverage overcharge, and $172 for overpaid mobile home  
          registration fees. 
           

          Erroneous Conviction Claims  .

             (1)  Jose Luis Diaz, binding finding of factual innocence,  
               $305,300.

               Convicted of rape and related charges in 1984, Diaz served  
               10 years in state prison.  In 2012, the Santa Clara D.A.  
               filed a petition for writ of habeas corpus based on new  
               evidence that pointed unerringly to the claimant's  
               innocence.  On March 4, 2014, the court granted the writ  








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               and ruled that a Board hearing to determine these facts was  
               not required pursuant to Penal Code Section 851.86.

             (2)  Johnny Williams, binding finding of factual innocence,  
               $461,600.

               Convicted of lewd and lascivious conduct against a child,  
               Williams served almost 13 years in state prison.  In 2012,  
               the California DNA Project and the Northern California  
               Innocence Project filed a petition for writ of habeas  
               corpus asking that the conviction be reversed based on DNA  
               evidence. (Sperm samples from the victim's t-shirt  
               conclusively excluded Williams as the source.) 

               On March 8, 2013, the Alameda County D.A. conceded  
               Williams' factual innocence and the Alameda County Superior  
               Court reversed the conviction and ordered Williams released  
               from custody and all parole conditions.  A Board hearing to  
               determine these facts was not required as the court  
               findings are binding pursuant to Penal Code Section 851.86  
               (SB 618, Chap. 800/2013).   

             (3)  Francisco Carillo, binding factual findings and  
               credibility determinations by the court, $683,300.

               Convicted of murder and six counts of attempted murder  
               related to a 1991 gang-related drive-by shooting, Carillo  
               served almost 19 years in prison.  In 2010, Carillo filed a  
               petition for writ of habeas corpus with the L.A. Superior  
               Court on the basis that five of the six eyewitnesses had  
               recanted.  The judge found that the five witnesses who  
               recanted were credible, and that the remaining witness who  
               identified Carillo as the shooter was not credible.  The  
               court also determined that Carillo's testimony that he was  
               home with his father the night of the shooting was  
               credible.  The D.A. conceded Carillo met his burden of  
               proof and on March 16, 2011, Carillo was released.  A Board  
               hearing to determine these facts was not required as the  
               court findings are binding pursuant to Penal Code Section  
               490(b) 86 (SB 618, Chap. 800/2013).   












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