BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
911 (Kehoe)
Hearing Date: 4/26/2010 Amended: 4/12/2010
Consultant: Bob Franzoia Policy Vote: None
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BILL SUMMARY: SB 911, an urgency measure, would appropriate
$840,000 from the General Fund to the Department of Justice to
pay settlements in Huntsman v. California Department of Forestry
($623,000) and California School Board Association v. State of
California ($217,000). Any funds appropriated in excess of the
amount required for the payment of these claims shall revert to
the General Fund.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Appropriation $840 General
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STAFF COMMENTS: Pursuant to the committee's rules, the Suspense
File rule does not apply to the provisions of this bill as
judgments and settlements are considered valid obligations of
the state. Additionally, judgments and settlements may have
time sensitivity.
Huntsman v. California Department of Forestry and Fire
Protection
Fresno County Superior Court Case No. 08 CE CG 02671
This case involved discrimination claims against the California
Department of Forestry and Fire Protection (CDFFP), including
disability discrimination, age discrimination, failure to
provide reasonable accommodation, and retaliation. The case was
settled following mediation on August 5, 2009. Under the
settlement, CDFFP agreed to pay the plaintiff $585,000. In
exchange, the plaintiff has released all claims against the
CDFFP. Following an evaluation at the mediation of the evidence
that would be produced at trial, CDFFP and the Department of
Justice concluded that the settlement reflects a reasonable
compromise that serves the public interest.
California School Boards Association v. State of California
Sacramento Superior Court Case No. 06CS01335
The California Constitution, Article XIII B, Section 6, requires
that the state reimburse local governmental agencies for the
costs of complying with mandates established through legislation
or executive order. (Mandates arising from federal law, or
established via a voter approved initiative, are not
reimbursable.) Over the years, the Commission on State Mandates
has handed down many decisions drawing the line between
reimbursable and non-reimbursable mandates. Over time, a
question emerged regarding whether legislation merely "related
to" a ballot proposition is also exempt from state
reimbursement.
Page 2
SB 911 (Kehoe)
On July 19, 2005, Assembly Bill 138 (Budget Committee), Chapter
72/2005, made a number of changes to California mandate law,
including an amendment to Government Code Section 17556 (f) to
apply expressly the reimbursement exception to legislation
"related to" ballot measures. In light of these amendments, the
Legislature directed the Commission to reconsider the School
Accountability Report Card and Mandate Reimbursement test
claims, and to set aside the Open Meetings Act and Brown Act
Reform test claims. In response, the Commission reconsidered
claims it had previously found to have required reimbursement
under Article XIII B, Section 6 and, interpreting AB 138, found
these claims were no longer reimbursable mandates under Article
XIII B, Section 6.
In this case the California School Boards Association
successfully challenged the constitutionality of AB 138 and the
authority of the Legislature to order the reconsideration of
prior mandate decisions. The Court of Appeal found that the
Legislature's actions violated separation of powers principles.
The Court also held that expanding the scope of the statewide
ballot reimbursement exception to laws merely "related to" the
ballot measures was over-broad, and invalid. The parties
entered into a stipulated order for an award of attorney's fees
in the amount of $200,000, and costs in the amount of $2,423.28.
The appropriate of $217,000 includes an estimate of
anticipated interest. As noted above, any funds appropriated in
excess of the amount required for payment of the settlement and
any interest (estimated daily accrual rate of $38.82 times 12
months) due at the time of payment will revert to the General
Fund on June 30, 2011.