BILL ANALYSIS Ó
SB 371
Page 1
REPLACE : 05/29/2013 Changes per consultant.
SENATE THIRD READING
SB 371 (De León)
As Amended April 10, 2013
2/3 vote. Urgency
SENATE VOTE :34-3
APPROPRIATIONS 12-5
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|Ayes:|Gatto, Bocanegra, | | |
| |Bradford, | | |
| |Ian Calderon, Campos, | | |
| |Eggman, Gomez, Hall, | | |
| |Ammiano, Pan, Quirk, | | |
| |Weber | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Harkey, Bigelow, | | |
| |Donnelly, Linder,Wagner | | |
| | | | |
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SUMMARY : Appropriates $15,557,808 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 $15,557,808 to DOJ in
2012-13 as follows:
1)$15,517,808 to pay the settlement in Ragatz v. State of California
(CalFire), Solano Superior Court.
2)$40,000 to pay the settlement in Doe v. State of California, Los
Angeles 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
SB 371
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into lawfully by the state upon advice of counsel (DOJ). They are
binding state obligations.
2)Case Background :
a) Ragatz v. State of California (CalFire).
This is a personal injury claim arising from a traffic accident
where plaintiff Rachel Ragatz struck the rear end of a CalFire
truck. Photographs of the accident scene show the CalFire
truck's rear tires were three feet into the roadway at the time
of the collision, supporting a finding of full liability. The
CalFire truck's brake lights were activated, however the hazard
lights on the vehicle were not activated. The impact was
substantial, as Ms. Ragatz's small SUV's hood was crushed and
the jaws-of-life were used to extricate her from her vehicle.
Ms. Ragatz sustained permanent, life-altering brain injuries
when her vehicle collided with the state fire vehicle, which
may have been obscured by smoke. The plaintiff is young, faces
uncertain employment prospects, and a lifetime of care. She
further cannot drive a car, vote, or live independently due to
her conservatorship.
DOJ believes this settlement is fair based on future medical
care, loss of earning capacity and the need for future daily
living assistance.
b) Doe v. State of California.
On September 10, 2010, the plaintiffs filed suit, alleging that
the state had failed to ensure that public school districts do
not charge impermissible pupil fees. Governor Brown's signing
of AB 1575 (Lara), Chapter 776, Statutes of 2012, on September
29, 2012, provided the plaintiffs with the relief they sought
by their amended complaint, with the exception of attorney's
fees.
(AB 1575 prohibits the assessment of fees by public schools on
pupils for specified educational activities, requires the State
Department of Education to distribute guidance to public
schools regarding pupil fees, and establishes a complaint
process to address allegations of the imposition of unlawful
pupil fees.)
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Plaintiffs' counsel, the American Civil Liberties Union, billed
approximately $192,000 in fees and costs in litigating this
case. 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. The State Department of Education 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.
DOJ contends the petitioners had a strong basis for an
attorney's fees claim based on the catalyst theory of recovery.
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 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 Ragatz claim, however,
and with two more large settlements looming, the Department of
Finance recommended the Ragatz claim be paid straight from the GF
since the MVIA cannot bear the cost of these large settlements in
one year, and the CalFire's increased premium would require a GF
increase to its budget to cover the drain on the MVIA.
a) SB 1558, (Kehoe), Chapter 20, Statutes of 2012, appropriated
$2.6 million to pay for one settlement.
b) SB 730 (Kehoe), Chapter 5, Statutes of 2012, appropriated
$13 million to DOJ to pay for six settlements.
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081 FN:
0000988