BILL ANALYSIS Ó AB 1682 Page 1 Date of Hearing: April 6, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1682 (Mark Stone) - As Amended February 29, 2016 ----------------------------------------------------------------- |Policy |Judiciary |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill: 1)Expands the type of civil actions that cannot be the subject of secret settlements to include not only acts that may be prosecuted as felony sex offenses, but also an act of childhood sexual abuse or an act of sexual exploitation of a minor. AB 1682 Page 2 2)Provides, for settlement agreements entered into after January 1, 2017, that an attorney demanding a confidentiality provision within a settlement agreement as described above and as a condition of settlement is subject to investigation and discipline by the State Bar. FISCAL EFFECT: Negligible fiscal impact. COMMENTS: Background and Purpose. Current law, which prohibits the confidential settlement of a civil action where the factual basis for the action is "an act that may be prosecuted as a felony sex offense," arguably contains a significant loophole. Although minors cannot legally enter into contracts or settlements, and cannot be held to the terms and conditions of agreements to settle civil actions, unless those agreements are signed by their parents, guardians, or guardians ad litem and approved by a court, current law allows the secret settlement of a civil action based upon childhood sexual abuse or exploitation as long as the underlying act can be characterized as an offense other than a felony. This is problematic because many sexual abuse and exploitation offenses that victimize minors are not felonies, or can easily be characterized as less serious offenses. This problem is exacerbated by the fact that many of the offenses are never referred to law enforcement and therefore never reviewed by prosecutors to determine whether felony charges are appropriate. AB 1682 closes this apparent loophole and protects the safety of AB 1682 Page 3 children and the public at large. It clarifies that the secret settlement of civil actions involving the sexual abuse or exploitation of minors, whether felonies or misdemeanors, is against public policy. This bill is sponsored by the California Coalition Against Sexual Assault and is supported by Consumer Attorneys of California, numerous law enforcement agencies and associations, and numerous organizations that provide services to survivors of sexual assault. It has no known opposition. Analysis Prepared by:Chuck Nicol / APPR. / (916) 319-2081