Amended in Senate April 2, 2013

Senate Bill No. 713

Introduced by Senator Correa

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(Coauthor: Assembly Member Gray)

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February 22, 2013

begin delete An act to amend Section 3291 of the Civil Code, relating to damages. end delete begin insert An act to add Section 1713.5 to the Civil Code, relating to liability. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 713, as amended, Correa. begin delete Personal injury actions: damages: interest. end delete begin insert Liability: good faith reliance on administrative ruling. end insert

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Existing law provides that every person is responsible, not only for the result of his or her willful acts, but also for an injury occasioned to another by his or her want of ordinary care or skill in the management of his or her property or person, except so far as the latter has, willfully or by want of ordinary care, brought the injury upon himself or herself.

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Existing law governs the tort liability and immunity of, and claims and actions against, public entities and their officers and employees. Existing law provides that a public employee who acts in good faith, without malice, and under the apparent authority of an enactment that is unconstitutional, invalid, or inapplicable, is not liable for an injury caused thereby, except to the extent that he or she would have been liable had the enactment been constitutional, valid, and applicable.

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This bill would provide that any person who relies upon a written order, ruling, approval, interpretation, or enforcement policy of a state agency or department, except the Division of Labor Standards Enforcement, shall not be liable or subject to punishment for a violation of a statute or regulation in a judicial or administrative proceeding if the person takes specified actions. This bill would provide that a person who relies on a written order, ruling, approval, interpretation, or enforcement policy of the Division of Labor Standards Enforcement and takes these specified actions shall not be liable or subject to punishment, except for restitution of unpaid wages. The bill would provide that these provisions apply to all actions and proceedings that commence on or after January 1, 2014. Additionally, the bill would state that it would not require a state agency to issue an order, ruling, approval, interpretation, or enforcement policy.

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Under existing law, a plaintiff in an action brought to recover damages for personal injury may claim interest on the damages alleged, as specified.

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This bill would make technical, nonsubsantive changes to these provisions.

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Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

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begin insert Section 1713.5 is added to the end insert begin insert Civil Code end insert begin insert , to read: end insert

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begin insert 1713.5. end insert   

(a) A person who relies upon a written order, ruling,
approval, interpretation, or enforcement policy of a state agency
or department, except the Division of Labor Standards
Enforcement, shall not be liable or subject to punishment for a
violation of a statute or regulation in a judicial or administrative
proceeding if the person pleads and proves to the trier of fact that,
at the time the alleged act or omission occurred, the person, acting
in good faith, did all of the following:

(1) Sought an applicable written order, ruling, approval,
interpretation, or enforcement policy from the state agency or
department charged with interpreting that particular area of law.

(2) Relied upon and conformed to the applicable written order,
ruling, approval, interpretation, or enforcement policy.

(3) Provided true and correct information to the state agency
in seeking the written order, ruling, approval, interpretation, or
enforcement policy.

(b) (1) The affirmative defense provided in subdivision (a) shall
apply even if, after the alleged act or omission occurred, the order,
ruling, approval, interpretation, or enforcement policy upon which
the person relied is modified, rescinded, or determined by judicial
authority to be invalid or of no legal effect.

(2) The affirmative defense provided in subdivision (a) shall
not apply if the alleged act or omission occurred after the order,
ruling, approval, interpretation, or enforcement policy upon which
the person relied is modified, rescinded, or determined by judicial
authority to be invalid or of no legal effect.

(c) This section applies to all actions and proceedings that
commence on or after January 1, 2014.

(d) Nothing in this section shall be construed to give any greater
legal weight to an order, ruling, approval, interpretation, or
enforcement policy than it would otherwise have in the absence
of this section.

(e) Nothing in this section shall be construed to require a state
agency or department to issue an order, ruling, approval,
interpretation, or enforcement policy.

(f) Nothing in this section shall be construed to authorize a state
agency or department to issue an order, ruling, approval,
interpretation, or enforcement policy that is contrary to an existing
state statute or regulation.

(g) A person who relies upon a written order, ruling, approval,
interpretation, or enforcement policy of the Division of Labor
Standards Enforcement shall not be liable or subject to punishment,
except for restitution of unpaid wages, for a violation of a statute
or regulation in a judicial or administrative proceeding if the
person pleads and proves to the trier of fact that, at the time the
alleged act or omission occurred, the person, acting in good faith,
did the acts described in paragraphs (1) to (3), inclusive, of
subdivision (a).

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SECTION 1.  

Section 3291 of the Civil Code is amended to
read:

3291.  

(a) In an action brought to recover damages for personal
injury sustained by any person resulting from or occasioned by
the tort of any other person, corporation, association, or partnership,
whether by negligence or by willful intent of the other person,
corporation, association, or partnership, and whether the injury
was fatal or otherwise, it is lawful for the plaintiff in the complaint
to claim interest on the damages alleged as provided in this section.

(b) If the plaintiff makes an offer, pursuant to Section 998 of
the Code of Civil Procedure, which the defendant does not accept
prior to trial or within 30 days, whichever occurs first, and the
plaintiff obtains a more favorable judgment, the judgment shall
bear interest at the legal rate of 10 percent per annum, calculated
from the date of the plaintiff’s first offer pursuant to Section 998
of the Code of Civil Procedure that is exceeded by the judgment,
and interest shall accrue until the satisfaction of judgment.

(c) This section shall not apply to a public entity, or to a public
employee for an act or omission within the scope of his or her
employment, and neither the public entity nor the public employee
shall be liable, directly or indirectly, to any person for any interest
imposed by this section.

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