BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1714
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          ASSEMBLY THIRD READING
          AB 1714 (Fuentes)
          As Amended  May 25, 2010
          2/3 vote.  Urgency 

           APPROPRIATIONS      17-0                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Fuentes, Conway, Ammiano, |     |                          |
          |     |Bradford, Charles         |     |                          |
          |     |Calderon, Coto, Davis,    |     |                          |
          |     |Monning, Ruskin, Harkey,  |     |                          |
          |     |Miller, Nielsen, Norby,   |     |                          |
          |     |Skinner, Solorio,         |     |                          |
          |     |Torlakson, Torrico        |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Appropriates $1,098,000 (General Fund (GF)) to the  
          Department of Justice (DOJ) to pay settlements in Humphries v  
          Lockyer, et al ($536,000) and Gardner, et al, v Schwarzenegger,  
          et al ($562,000). Any funds appropriated in excess of the amount  
          required for the payment of these claims shall revert to the GF.  
           
           
           FISCAL EFFECT  :  Appropriates $1,098,000 (GF) to pay for two  
          settlements, and specifies that any funds appropriated in excess  
          of the amount required will revert to the GF. 

           COMMENTS  :

          1)Rationale.  This bill is one of two annual bills carried by  
            the Appropriations chairs to provide appropriation authority  
            for state judgments and settlements as approved by the DOJ and  
            the Department of Finance (DOF). 


          2)Case background. 


             a)   Humphries v. Lockyer, et al, Ninth Circuit Court of  
               Appeals Case No. 05-56467 - $536,000

                  Craig and Wendy Humphries were arrested on suspicion of  
               having physically abused their teenage daughter.  When the  








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               criminal case was dismissed, the couple obtained a finding  
               of factual innocence. 

                  Nevertheless, pursuant to the Child Abuse Neglect and  
               Reporting Act (CANRA), the Los Angeles Sheriff's Department  
               reported the couple to DOJ's Child Abuse Central Index  
               (CACI).  CANRA requires such reporting when the  
               investigating authority determines that the claim of child  
               abuse is "not unfounded," regardless of whether the suspect  
               was actually charged or arrested.  The Humphries sued the  
               Sheriff's Department and DOJ, alleging the CANRA was an  
               unconstitutional denial of due process.

                  After losing in the trial court on defense motions  
               seeking summary judgment, the Humphries appealed.  The  
               Ninth Circuit reversed, finding CANRA and CACI to be  
               unconstitutional, because, in part, California offered no  
               procedure for the Humphries to remove their listing on the  
               database as suspected child abusers and thus clear their  
               names.  

                  Prevailing civil rights suit plaintiffs are generally  
               entitled to attorney's fees.  The Humphries argued to the  
               Ninth Circuit that they were entitled to over $1.2 million  
               in attorney's fees and expenses for the appellate portion  
               of the case.  The state opposed this claim as premature.   
               The Ninth Circuit decided the claim was not premature, and  
               referred it to an Appellate Commissioner.  In that  
               proceeding, the commissioner recommended the Humphries be  
               awarded the $592,580.92.  Under the commissioner's  
               recommendation, $533,323 of the total would be charged to  
               the state. 

                  The commissioner's fee recommendation was adopted by the  
               Ninth Circuit.  Including anticipated interest, it is  
               projected that the amount due the Humphries under this  
               appellate attorney fee decision will be $536,000. 

             b)   Gardner, et al, v. Schwarzenegger, et al, First District  
               Court of Appeal Case No. 125000 - $562,000

                  The Substance Abuse and Crime Prevention Act of 2000 was  
               enacted by the voters as Proposition 36 in 2000.  It  
               diverted certain nonviolent drug offenders to noncustodial  








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               drug counseling and treatment in lieu of incarceration.  SB  
               1137 (Ducheny), Chapter 63, Statutes of 2006, authorizes  
               jail sanctions when nonviolent drug offenders violate  
               conditions of Proposition 36 probation.  SB 1137 also  
               specifies that if any of its provisions were found  
               unconstitutional, the entire legislative measure would be  
               placed on the ballot in the next statewide election.

                  Plaintiffs sued to invalidate SB 1137 as inconsistent  
               with the purposes of Proposition 36.  The trial court  
               agreed, finding that the provisions in SB 1137 relating to  
               short-term jail sanctions for offenders who violate their  
               Proposition 36 probation, and provisions excluding violent  
               offenders from probation, are inconsistent with the  
               purposes of Proposition 36.

                  The Court of Appeal agreed with the trial court's  
               analysis.  The Court also found that Section 9 of SB 1137,  
               which allows for every provision of SB 1137 to be placed on  
               the ballot if any part is found unconstitutional, is itself  
               unconstitutional because it effectively provides for a  
               referendum without satisfying the legal prerequisites.  

                  Plaintiffs sought attorney's fees.  In 2009, plaintiffs  
               were awarded fees and costs in the amount of $425,821, plus  
               interest.  Plaintiffs then pursued a claim for fees  
               incurred from litigating the underlying fee question itself  
               -- a fees-on-fees claim.  This resulted in an additional  
               $83,834, plus interest.  DOF has requested the total amount  
               of $562,000.00 for the underlying fee award, settlement of  
               the fees-on-fees claim, and accrued interest.


          3)Related legislation.  SB 911 (Kehoe), which also provides for  
            the appropriation of funds for state judgments and  
            settlements, is also before this committee today.  



           Analysis Prepared by  :    Geoff Long / APPR. / (916) 319-2081 


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