BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1682


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          Date of Hearing:  April 6, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          AB  
          1682 (Mark Stone) - As Amended February 29, 2016


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          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.








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          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  








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          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