Amended in Assembly February 29, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1682

Introduced by Assembly Member Mark Stone

January 20, 2016

An act to amend Section 1002 of the Code of Civil Procedure, relating to civil procedure.

LEGISLATIVE COUNSEL’S DIGEST

AB 1682, as amended, Mark Stone. Confidential settlement agreements: begin insert sexual offenses. end insert

Existing law prohibits a confidential settlement agreement in a civil action with a factual foundation establishing a cause of action for civil damages for an act that may be prosecuted as a felony sex offense. Existing law provides that the prohibition does not affect the ability of parties to enter into a settlement agreement or stipulated agreement requiring nondisclosure of the amount of money paid in settlement of a claim.

This bill would additionally prohibit a begin delete confidential end delete begin insert confidentiality provision in a end insert settlement agreement in a civil action with a factual foundation establishing a cause of action for civil damages for an act of childhood sexual abuse or sexual exploitation of a minor, as begin delete defined. end delete begin insert specified. end insert The bill would repeal the provision specifying that a settlement agreement or stipulated agreement that requires nondisclosure of the amount of money paid in settlement of a claim is not prohibited. The bill would make a begin delete confidential end delete begin insert confidentiality provision in a end insert settlement agreement, as described in the bill, entered into on or after January 1, 2017, void as a matter of law and against public policy. The bill would make an attorney who demands such a begin delete confidential end delete begin insert confidentiality provision in a end insert settlement agreement as a condition of settlement or who advises a client to sign begin delete such end delete an agreement begin insert with such a confidentiality provision end insert subject to professional discipline and would require the State Bar of California to investigate and take appropriate action in cases brought to its attention.

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

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

SECTION 1.  

Section 1002 of the Code of Civil Procedure is
amended to read:

1002.  

(a) Notwithstanding any other law, a begin delete confidential end delete
begin insert confidentiality provision within a end insert settlement agreement is
prohibited in any civil action the factual foundation for which
establishes a cause of action for civil damages for any of the
following:

(1) An act that may be prosecuted as a felony sex offense.

(2) An act of childhood sexual abuse, as defined in Section
340.1.

(3) An act of sexual exploitation of a minor, as defined in
Section 11165.1 of the Penal begin delete Code. end delete begin insert Code, or conduct prohibited
with respect to a minor pursuant to Sections 311.1, 311.5, end insert begin insert or 311. end insert begin insert 6
of the Penal Code. end insert

(b) Subdivision (a) does not preclude an agreement preventing
the disclosure of any medical information or personal identifying
information, as defined in subdivision (b) of Section 530.55 of the
Penal Code, regarding the victim of the offense listed in subdivision
(a) or of any information revealing the nature of the relationship
between the victim and the defendant. This subdivision shall not
be construed to limit the right of a crime victim to disclose this
information.

(c)  begin delete An end delete begin insert Except as authorized by subdivision (b), a confidentiality
provision within a settlement end insert agreement described in subdivision
(a) that is entered into on or after January 1, 2017, is void as a
matter of law and against public policy. An attorney who demands
a begin delete confidential end delete begin insert confidentiality provision within a end insert settlement
agreement described in subdivision (a) begin insert , that is not otherwise
authorized by subdivision (b), end insert as a condition of settlement or who
advises a client to sign begin delete such end delete an agreement begin insert with such a
confidentiality provision end insert shall be subject to professional discipline
and the State Bar of California shall investigate and take
appropriate action in any such case brought to its attention.