BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1186 (Lara) - State claims
          
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          |Version: May 3, 2016            |Policy Vote:                    |
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          |Urgency: Yes                    |Mandate: No                     |
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          |Hearing Date: May 23, 2016      |Consultant: Mark McKenzie       |
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          This bill does not meet the criteria for referral to the  
          Suspense File.  Pursuant to the Committee's rules, the Suspense  
          File rule does not apply to this bill as claims are considered  
          valid obligations of the state.  Additionally, claims may have  
          time sensitivity.


          Bill  
          Summary:  SB 1186, an urgency measure, would appropriate  
          approximately $4.38 million from specified funds to the  
          California Victim Compensation and Government Claims Board  
          (board) for the payment of 273 state claims.  


          Fiscal  
          Impact:  
            Stale-dated warrants  : General Fund appropriations in the  
            amount of $606,296.25 to pay 227 claims, and appropriations  
            from specific budget items in the amount of $41,147.07 to pay  
            40 claims (General Fund/special funds).  All of these claims  
            are for reissuance of stale-dated warrants (expired checks).   
            The individual claim amounts range from $9.02 to $116,910.








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            Erroneous convictions  : 
          1) General Fund appropriation in the amount of $581,600 to pay  
            the claim of Obie Steven Anthony III, approved by the board on  
            September 17, 2015.

          2) General Fund appropriation in the amount of $653,600 to pay  
            the claim of John Smith, approved by the board on September  
            17, 2015.

          3) General Fund appropriation in the amount of $654,500 to pay  
            the claim of Marco Milla, approved by the board on March 17,  
            2016.

            4) General Fund appropriation in the amount of $762,440 to pay  
            the claim of Larry Pohlschneider, approved by the board on  
            April 21, 2016.

            5) General Fund appropriation in the amount of $564,100 to pay  
            the claim of Michael Smith, approved by the board on October  
            15, 2015.

            6) General Fund appropriation in the amount of $512,600 to pay  
            the claim of Timothy Gantt, approved by the board on October  
            15, 2015.


          Background:  The State Board of Control was established in 1945.  It was  
          revised and renamed the Victim Compensation and Government  
          Claims Board by Chapter 1016/2000 (AB 2491, Jackson).   
          Government Code 13928 requires the board to ensure that all  
          claims that have been approved by the board, and for which no  
          legally available appropriation exists, are submitted for  
          legislative approval at least twice during each calendar year.   
          In general, the board will approve claims in November and  
          February.  Those claims are reported to the chairs of the  
          Appropriations Committees who introduce bills appropriating  
          General Funds and special funds to pay the claims.  These bills  
          may appropriate funds in amounts to the penny for tens to  
          hundreds of claims.  Government Code 906 provides for the  
          payment of interest on claims approved by the board for which an  
          appropriation has been made beginning 30 days after the  
          effective date of the law by which the appropriation is enacted.

          The re-issuance of stale-dated warrants is the most prevalent  








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          claim approved by the board.  For stale-dated warrants, the  
          Controller must confirm that (1) the check was not cashed and  
          has not been issued and (2) more than three years have elapsed  
          since the check was issued and the monies have reverted to the  
          General Fund or to the relevant special fund.  For these  
          warrants an appropriation is needed to reissue the payment.   
          This category also may include state treasury bonds that have  
          not been redeemed within ten years of their maturity date (there  
          are no such claims in this bill), but the majority of warrants  
          are payroll or tax refund checks.  

          In addition to stale-dated warrants, existing law authorizes a  
          person convicted and imprisoned for a felony to submit a claim  
          to the board for pecuniary injury sustained as a result of  
          erroneous conviction and imprisonment.  Recent changes to these  
          provisions, SB 618 (Leno), Chapter 800/2013, specify that a  
          person who has secured a declaration of factual innocence from  
          the court after having his or her conviction set aside is  
          eligible  payment in a claim against the state.  Upon  
          application by the petitioner, the board shall, without a  
          hearing, recommend to the Legislature an appropriation to cover  
          the claim.  Likewise, if the court finds the petitioner has  
          proven his or her innocence by a preponderance of the evidence,  
          or the court grants a writ of habeas corpus concerning a person  
          who is unlawfully imprisoned, or when the court vacates a  
          judgment for a person on the basis of new evidence concerning a  
          person who is no longer unlawfully imprisoned, and the court  
          finds the evidence points unerringly to innocence, the board  
          shall, upon application by the claimant, without a hearing,  
          recommend to the Legislature an appropriation to cover the  
          petitioner's claim.

          Otherwise, a claimant is required to introduce evidence in  
          support of his or her claim at a hearing before the board, and  
          the Attorney General may introduce evidence in opposition.  The  
          claimant must prove, by a preponderance of the evidence: (a) the  
          crime was not committed at all, or, if committed, was not  
          committed by the claimant; (b) the claimant did not contribute  
          to the arrest or conviction for the crime; and (c) the claimant  
          sustained pecuniary injury though the erroneous conviction and  
          imprisonment. 

          If a claimant meets the burden of proof, the board shall  
          recommend to the Legislature an appropriation of $140 per day of  








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          incarceration served in a state prison subsequent to the  
          claimant's conviction.  That amount was recently raised from  
          $100 to $140, upon enactment of SB 635 (Nielsen), Chapter  
          422/2015, so claims approved by the board prior to January 1,  
          2016 provide payment of $100 per day of incarceration.


          Proposed Law:  
            SB 1186, an urgency measure, appropriates $647,443.32 in  
          various state funds, including $606,296.25 directly from the  
          General Fund, to the board for the payment of 267 state claims  
          for reissuance of stale-dated warrants. The bill would also  
          appropriate $3,728,840 to the board for payment of six specified  
          erroneous conviction claims.  


          Staff  
          Comments:   Background on Erroneous Conviction Claims  :
                 Obie Anthony III, preponderance of evidence, $581,600.   
               Mr. Anthony was convicted of murder and attempted murder  
               and sentenced to life in prison without parole in 1995.  In  
               April 2010, Mr. Anthony filed a habeas corpus petition.   
               His murder conviction was overturned on September 30, 2011  
               on the grounds of ineffective assistance of counsel, false  
               and misleading testimony, and prosecutorial misconduct, but  
               the judge determined that he had not met his burden of  
               proving actual innocence.  Mr. Anthony filed a claim for  
               compensation as an erroneously convicted person in  
               September 2013, and the court determined on May 30, 2014  
               that there was a preponderance of evidence that the  
               offenses that resulted in the death of one man and injuries  
               to two others were not committed by Mr. Anthony, and it was  
               determined that he had no involvement in those offenses or  
               the events surrounding them.  Mr. Anthony was incarcerated  
               for 5,816 days.

                 John Smith, preponderance of evidence, $653,600.  In  
               1994, Mr. Smith was convicted of murder, attempted murder  
               and enhancements of personal use of a firearm, personal  
               discharge of a firearm from a vehicle, and intentional  
               infliction of great bodily injury, as a result of a  
               drive-by shooting in Los Angeles.  In October 2010, Mr.  
               Smith filed a habeas corpus petition, asserting that false  
               testimony was introduced during his trial identifying him  








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               as the shooter.  The sole eye witness recanted his  
               statement identifying Mr. Smith as the shooter in the  
               incident, and the court found that the eyewitness perjured  
               himself at trial and granted the habeas petition vacating  
               Smith's convictions and sentencing, but declined to make  
               any finding of factual innocence.  Mr. Smith filed a claim  
               for compensation as an erroneously convicted person with  
               the board in September 2014.  The Los Angeles District  
               Attorney's Office conceded that he met his burden of  
               establishing his innocence by a preponderance of the  
               evidence, and the Attorney General's Office concurred.  The  
               board ultimately determined that Mr. Smith met his burden  
               of proving he did not commit the murder as charged and  
               convicted and there is a preponderance of evidence that he  
               is innocent of the crime, and that he sustained pecuniary  
               injury through his erroneous conviction and imprisonment.   
               Mr. Smith was incarcerated for 6,536 days.





                 Marco Milla, binding finding of factual innocence,  
               $654,500.  On October 24, 2001, Marco Milla was arrested  
               and charged with one count of murder and five counts of  
               attempted murder after it was alleged that he shot at a  
               passing vehicle during a gang-related shooting.  On  
               December 23, 2002, the jury found Mr. Milla guilty on all  
               charges and sentenced him to life in prison without the  
               possibility of parole, and the conviction was affirmed on  
               appeal on December 20, 2004.  In 2010, the Los Angeles  
               County District Attorney's Office was informed by the US  
               Department of Homeland Security that a confidential  
               informant on an unrelated investigation had witnessed the  
               shooting for which Mr. Milla was convicted.  The informant  
               named a gang member who was the shooter and stated that  
               Milla was not even present at the scene.  In January 2014,  
               Mr. Milla filed a habeas corpus petition based on the newly  
               discovered informant, and the informant testified at the  
               hearing that Milla was not the shooter.  His petition was  
               granted, his prior convictions were vacated, and a new  
               trial was ordered.  The LA District Attorney declined to  
               seek a second trial and on January 13, 2016, Milla received  
               a finding of factual innocence.  Mr. Milla was incarcerated  








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               for 4,675 days.

                 Larry Pohlschneider, binding finding of factual  
               innocence, $762,440.  In January of 2001, Mr. Pohschneider  
               was convicted of three counts of continuous sexual abuse of  
               a child, with a multiple victim enhancement, and was  
               sentenced to 24 years in state prison.  On October 7, 2015,  
               the trial court granted Mr. Pohlschneider' petition for  
               writ of habeas corpus based on a claim of ineffective  
               assistance of counsel, and on November 24, 2015 the trial  
               court found that he had met his burden of proving actual  
               innocence and that the crimes with which he was charged  
               were not committed by him.  Mr. Pohlschneider was  
               incarcerated for 5,446 days.



                 Timothy Gantt ($512,600) and Michael Smith ($564,100),  
               board approved claim.  In 1994, Mr. Gantt and Mr. Smith  
               were convicted on charges of murder and second degree  
               robbery, along with a special circumstance of murder while  
               engaged in the commission of a robbery, and sentenced to  
               life imprisonment without the possibility of parole.  The  
               judgments were affirmed on appeal.  Mr. Gantt subsequently  
               filed multiple habeas corpus petitions.  In March 1998, his  
               petition alleging the prosecutor had withheld exculpatory  
               evidence from the defense was initially dismissed, but the  
               Court of Appeals reversed the dismissal and remanded the  
               matter back to District Court for an evidentiary hearing.   
               On April 21, 2006, the District Court granted Mr. Gantt's  
               writ of habeas corpus, which was affirmed on appeal.  The  
               Los Angeles District Attorney's Office elected to retry  
               Gantt, but during the trial the D.A. stated that it was  
               unable to proceed due to difficulties with an eye witness,  
               and dismissed the case.  The witness expressed uncertainty  
               about his identification of Gantt.  Mr. Gantt was released  
               from custody on June 5, 2008.  In November 2009, Mr. Smith  
               filed a habeas corpus petition.  The D.A. did not oppose  
               the motion and Smith was released from prison.



             Mr. Gantt filed his claim for compensation for erroneous  
               conviction and imprisonment on November 17, 2008, and Mr.  








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               Smith filed his claim on July 14, 2011.  All parties agreed  
               to join the claims for a hearing before the board since the  
               evidence and facts are similar.  At the board hearing, the  
               Attorney General's Office acknowledged that evidence  
               against the claimants was not strong, but argued that the  
               claimants had not met their burden of proving their  
               innocence to a preponderance of the evidence more likely  
               than not that they are innocent than guilty.  The board  
               members noted that the evidence against the claimants was  
               weak and circumstantial, and unanimously approved the  
               claims for compensation.  Mr. Gantt was imprisoned for  
               5,125 days and Mr. Smith was imprisoned for 5,640 days.


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