BILL ANALYSIS                                                                                                                                                                                                    Ó






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                                   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  








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          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  







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            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)







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          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  







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            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  ****


          










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