BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 164 (Gomez) - Claims against the state: payment. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: September 2, 2015 |Policy Vote: | | | | |--------------------------------+--------------------------------| | | | |Urgency: Yes |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: September 4, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- This bill does not meet the criteria for referral to the Suspense File. Pursuant to the committee's rules, the Suspense File rule does not apply to the provisions of this bill as judgments and settlement are considered valid obligations of the state. Additionally, judgments and settlements may have time sensitivity. Bill Summary: AB 164, an urgency measure, would appropriate $2,217,255 from the General Fund, and $517,255 from the Dungeness Crab Account, to the Department of Justice (DOJ) for the payment of two settlements. Any funds appropriated in excess of the amounts required for payment of these claims shall revert to the respective funds. Fiscal Impact: One-time appropriation of $1,700,000 in 2015-16 from the General Fund to DOJ to pay the settlement in Humphries v. County of Los Angeles, et al. AB 164 (Gomez) Page 1 of ? One-time appropriation of $1,034,510 ($517,255 from the General Fund and $517,255 from the Dungeness Crab Account in the Fish and Game Preservation Fund) in 2015-16 to DOJ to pay the settlement in Kevin Marilley, et al. v. California Department of Fish and Game. Background: 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 (DOF). These settlements were entered into lawfully by the state upon advice of counsel (DOJ). They are binding state obligations. Proposed Law: This bill would appropriate special fund and General Fund revenues to DOJ to pay the following settlements: Humphries v. County of Los Angeles, et al. (United States District Court, Central District of California, Case No. SACV 03-0697-JVS) $1,700,000 settlement, payable from the General Fund. The California Child Abuse and Neglect Reporting Act (CANRA) formerly provided for the reporting of child abuse allegations that were "not unfounded" to the DOJ for inclusion in its Child Abuse Central Index (CACI). Plaintiffs in the Humphries case were parents of a child who accused them of child abuse, but the courts found the allegations to be untrue and charges against the parents were dismissed. The CANRA statutes did not include a process for removal of exonerated individuals accused of child abuse from the CACI, and the Los Angeles County Sheriff's Department did not agree to remove them. Plaintiffs filed a case against the Attorney General and the County of Los Angeles, claiming that their constitutional due process rights had been violated because they had been deprived the right to challenge their inclusion in CACI. The district court dismissed their claims, but the Ninth Circuit reversed that holding on appeal and found that the continued listing of the plaintiffs in CACI violated the Due Process Clause of the Fourteenth Amendment. Plaintiffs are entitled to reasonable attorney's fees, and filed a motion seeking over $3 million from the State. This claim for AB 164 (Gomez) Page 2 of ? $1.7 million represents a settlement for attorneys' fees negotiated through mediation in federal court. Kevin Marilley, et al. v. California Department of Fish and Game. (United States District Court, Northern District of California, Case No.11-cv-2418) $1,034,510 settlement, half payable from the General Fund, half payable from the Dungeness Crab Account within the Fish and Game Preservation Fund. This case involved a group of commercial fishermen who were not California residents but fished in California waters. One of these fishermen, Kevin Marilley, filed a class action suit in the United States District Court in May of 2011 against the Director of the California Department of Fish and Game (later appeals were filed against the Director of the Department of Fish and Wildlife), alleging that California's fishing license statutes, which charge nonresident fishermen two to three times more than the fees assessed on resident competitors, are unconstitutional. The fishermen and the state filed cross-motions for summary judgment. The US District Court granted summary judgment in favor of the plaintiffs, finding that the differential fees violate the Privileges and Immunities Clause of Article IV of the US Constitution, and concluding that the state failed to demonstrate a substantial state interest. On December 10, 2013, the plaintiffs moved for an award of attorney's fees and court costs. After negotiations, and upon recommendation from the Department of Justice, the Department of Fish and Wildlife accepted the proposed settlement of fees accrued by the plaintiffs though April 18, 2014, in the amount of $1,034,570. This settlement represents the final disposition of the case, as all appeals have been exhausted. The Department of Finance approved an appropriation of the settlement amount to be split between the General Fund and the Dungeness Crab Account within the Fish and Game Preservation Fund. Related Legislation: SB 302 (Lara), Chap 5/2015, appropriated $24.1 million to AB 164 (Gomez) Page 3 of ? specified state entities for the payment of four settlements. AB 1615 (Gatto), Chap142/2014, appropriated $2.86 million to DOJ for the payment of two settlements. AB 234 (Gatto), Chap 449/2013, appropriated $20.7 million to DOJ for the payment of two settlements. SB 371 (De Leon), Chap 9/2013, appropriated $15.6 million to DOJ for the payment of two settlements. -- END --