BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1682| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1682 Author: Mark Stone (D), et al. Amended: 8/10/16 in Senate Vote: 21 SENATE JUDICIARY COMMITTEE: 7-0, 6/28/16 AYES: Jackson, Moorlach, Anderson, Hertzberg, Leno, Monning, Wieckowski SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR: 76-0, 4/14/16 (Consent) - See last page for vote SUBJECT: Confidential settlement agreements: sexual offenses SOURCE: Author DIGEST: This bill prohibits a confidentiality or secrecy provision in a settlement agreement in a civil action for an act of childhood sexual abuse or an act of sexual assault against an elder or dependent adult, as specified, and makes a confidential settlement agreement void as a matter of law and against public policy, and subjects an attorney that fails to comply with the requirements of the bill to discipline by the State Bar of California. Senate Floor Amendments of 8/10/16 clarify that a confidential settlement agreement is one that "prevents the disclosure of factual information related to the action" and fleshes out the AB 1682 Page 2 specific attorney conduct which would subject an attorney to investigation, and potentially discipline, by the State Bar. ANALYSIS: Existing law prohibits a confidential settlement agreement in any civil action the factual foundation for which establishes a cause of action for civil damages for an act that is a felony sex offense, but does not prohibit any of the following: 1)An agreement that requires nondisclosure of the amount paid in settlement of a claim; 2)An agreement preventing the defendant or any person acting on the defendant's behalf from disclosing any medical information or personal identifying information regarding the victim of the felony sex offense or of any information revealing the nature of the relationship between the victim and the defendant; and 3)Any right of the crime victim to disclose his or her medical information or personal information, or relationship to the defendant. (Code Civ. Proc. Sec. 1002.) This bill: 1)Prohibits a settlement agreement that prevents the disclosure of factual information related to the action in a civil action with a factual foundation establishing a cause of action for civil damages for (1) an act of childhood sexual abuse, (2) sexual exploitation of a minor, or (3) an act of sexual assault against an elder or dependent adult, as specified. 2)Prohibits a court from entering an order, in any of civil actions above, restricting disclosure of information in a manner that conflicts with the provision above. 3)Repeals the provision specifying that a settlement agreement AB 1682 Page 3 or stipulated agreement that requires nondisclosure of the amount of money paid in settlement of a claim is not prohibited. 4)Provides that a confidentiality or secrecy provision in a settlement agreement, entered into on or after January 1, 2017, void as a matter of law and against public policy. 5)Provides that a confidentiality or secrecy provision in a settlement agreement is void as a matter of law and against public policy and that an attorney's failure to comply with the requirements of the bill may be grounds for professional discipline and as to be determined the State Bar of California, as specified. Background Existing law disfavors the secret settlement of certain civil actions in which the public has a strong interest. For example, it is the policy of the State of California that confidential settlement agreements are disfavored in any civil action based on a violation of the Elder Abuse and Dependent Adult Civil Protection Act (EADACPA). (Code Civ. Proc. Sec. 2017.310.) In addition, 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" is prohibited. Seeking to ensure that the perpetrators of other sexual crimes are made known to the public, this bill prohibits the secret settlement of civil actions involving the sexual abuse or exploitation of minors, and the sexual abuse of elder or dependent adults. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No SUPPORT: (Verified8/10/16) AB 1682 Page 4 Attorney General Kamala D. Harris Association for Los Angeles Deputy Sheriffs Bay Area Women Against Rape California Association of Code Enforcement Officers California Coalition Against Sexual Assault California College and University California Police Chiefs Association California Narcotic Officers Association Center Against Sexual Assault of Southwest Riverside County Center for Community Solutions Coalition for Family Harmony Conference of California Bar Associations Consumer Attorneys of California Kene Me-Wu Family Healing Center Los Angeles County Professional Peace Officers Association Los Angeles Police Protective League Monterey County Rape Crisis Center North County Rape Crisis and Child Protection Center One SAFE Place Project Sister Family Services Riverside Sheriffs Association Women's Center - Youth & Family Services OPPOSITION: (Verified8/10/16) None received ARGUMENTS IN SUPPORT: In support, the Association for Los Angeles Deputy Sheriffs writes: Although minors cannot legally enter into contracts or be held to settlements signed by their parents or guardians, secret settlements likely discourage them from ever reporting their abuse to law enforcement. Years later, after they are adults, it may be too late for law enforcement to act because the statute of limitation on charging the acts as crimes may have passed. Secret settlements interfere with the prosecution of predators and could endanger minors. By shielding cases from AB 1682 Page 5 the public and law enforcement, secret settlements unfairly allow convicted sexual offenders with the financial means to pay for the silence of their victims in an attempt to escape criminal prosecution. Such settlements also endanger other potential victims by shielding such offenders from public knowledge and scrutiny. On behalf of California Attorney General Kamala D. Harris, the California Department of Justice writes in support, "This bill closes a perilous loophole in the law that allows perpetrators of sexual abuse against children to evade full accountability by negotiating confidential settlement agreements in civil actions. By affirming that such provisions are in direct contrast with the interests of public policy, AB 1682 will ensure that California's laws conform with its commitment to defending the welfare of its youngest residents." ASSEMBLY FLOOR: 76-0, 4/14/16 AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon NO VOTE RECORDED: Irwin, Levine, Melendez, Nazarian Prepared by:Nichole Rapier / JUD. / (916) 651-4113 8/12/16 13:21:58 **** END **** AB 1682 Page 6