BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 371|
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THIRD READING
Bill No: SB 371
Author: De León (D)
Amended: 4/10/13
Vote: 27 - Urgency
SENATE APPROPRIATIONS COMMITTEE : 7-0, 4/15/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Claims against the state
SOURCE : Author
DIGEST : This bill appropriates $15,557,808 from the 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 shall 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 DOJ
and the Department of Finance. These settlements were entered
into lawfully by the state upon advice of counsel (DOJ). They
are binding state obligations.
This bill appropriates GF revenues to pay the following claims
against the state:
Doe v. State of California
Los Angeles Superior Court, Case No. BC445151
$40,000 settlement
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On September 10, 2010, the plaintiffs filed suit, alleging that
the State and then-Governor Schwarzenegger, in his official
capacity, had failed to ensure that public school districts do
not charge impermissible pupil fees. Plaintiffs also filed a
first amendment complaint on April 7, 2011, alleging that the
State and a number of individually-named state officials and
departments (Education defendants) failed to ensure that public
school districts do not charge impermissible student fees.
Governor Brown's signing of AB 1575 (Lara, Chapter 776, Statutes
of 2012) on September 29, 2012, has provided the plaintiffs with
the relief they sought by their first amended complaint, with
the exception of attorney's fees. The bill prohibits the
assessment of fees by public schools on pupils for specified
educational activities, requires the Department of Education
(CDE) to distribute guidance to public schools regarding pupil
fees, and establishes a complaint process to address allegations
of the imposition of unlawful pupil fees.
Plaintiffs' counsel, the American Civil Liberties Union, billed
approximately $192,000 in fees and costs in litigating this
case. On the grounds of the catalyst theory, plaintiffs
requested $95,000 in attorney's fees to settle the case, $47,500
from the State, and $47,500 from the Education defendants. To
avoid the expense of litigating the attorney's fees issue, the
parties have agreed to resolve the attorney's fees and specify
the form of dismissal of this matter through agreement. The CDE
and the State Board of Education have agreed to the proposed
settlement and have made payment from existing resources, while
DOJ negotiated a reduced amount of $40,000. The petitioners
had a strong basis for an attorney's fees claim based on the
catalyst theory of recovery.
Ragatz v. State of California (CalFire)
Solano Superior Court, Case No. FCSO38995
$15,517,808 settlement
This is a personal injury claim arising from a traffic accident.
On July 14, 2011, an employee of the Department of Forestry and
Fire Protection (CalFire) was responding to a fire in Yolo
County. The employee failed to move his vehicle completely off
the freeway prior to stopping, and failed to engage the
vehicle's hazard lights. Ms. Ragatz sustained permanent,
life-altering brain injuries when her vehicle collided with the
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state fire vehicle, which may have been obscured by smoke. On
December 9, 2011, Ms. Ragatz, by and through her conservator,
filed a personal injury suit. The plaintiff is young, faces
uncertain employment prospects, and a lifetime of care. A
settlement agreement was reached through mediation on December
17, 2012. The Attorney General's Office has evaluated the
State's liability and has concluded that the $15 million
settlement is an appropriate amount to resolve this litigation.
The settlement agreement includes six months of interest applied
to the settlement amount at a rate of 7%.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, one-time GF
appropriation of $15,557,808 from the GF to DOJ in 2012-13
according to the following schedule:
$40,000 to pay the settlement in Doe v. State of California,
Los Angeles Superior Court, Case No. BC445151.
$15,517,808 to pay the settlement in Ragatz v. State of
California (CalFire), Solano Superior Court, Case No.
FCSO38995.
JA:k 4/15/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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