BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 140 (Fuentes)
          
          Hearing Date: 6/27/2011         Amended: 4/6/2011
          Consultant: Bob Franzoia        Policy Vote: Not applicable
          _________________________________________________________________
          ____
          BILL SUMMARY: AB 140, an urgency measure, would appropriate 
          $232,000 from the General Fund to the Department of Justice to 
          pay two claims.  Any funds appropriated in excess of the amounts 
          required for payment of these claims shall revert to the General 
          Fund.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Appropriation          $232                             General
          _________________________________________________________________
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File.
          Pursuant to the committee's rules, the Suspense File rule does 
          not apply to the provisions of this bill as judgments and 
          settlement are considered valid obligations of the state.  
          Additionally, judgments and settlements may have time 
          sensitivity.

          The claims are:
          
          Shaw v. Chaing, et. al.
          Sacramento County Superior Court, Case No. 07CS01179
          $167,000 to pay attorney's fees and costs
           
          This case involves appropriations of gasoline sales tax revenue 
          known as "spillover revenue."  Historically, this revenue was 
          transferred from the Retail Sales Tax Fund to the Public 
          Transportation Account, a trust fund that by statutory 
          initiative is dedicated to "transportation planning and mass 
          transportation purposes" pursuant to Public Utilities Code 
          99310.5.

          Beginning in 2001, and each fiscal year thereafter, the 








          AB 140 (Fuentes)
          Page 1


          Legislature amended Revenue and Taxation Code 7102 (a) (1) to 
          instead transfer all or part of these spillover revenues to 
          funds other than the Public Transportation Account.  The Court 
          of Appeal concluded this practice was unconstitutional and 
          invalidated related appropriations.  The court found that 
          Petitioner Shaw was entitled to $146,977.50, plus interest, for 
          fees and costs.
          
          Lord, et al. v. Schwarzenegger et. al.
          San Francisco County Superior Court, Case No. CPF-09-509770
          $65,000 to pay a settlement

          This case involves a constitutional challenge to Chapter 12/2009 
          (AB 12x4, Budget Committee), a budget trailer bill, for 
          violation of the single-subject and title clauses of Article IV, 
          Section 9 of the California Constitution.  Plaintiffs prevailed, 
          and a judgment was issued declaring that Section 12 of AB 12x4, 
          which amended Government Code Section 22877 to eliminate the 
          Rural Healthcare Equity Program for qualifying state employees, 
          was stricken from law.  

          After judgment, plaintiffs moved for attorney's fees, arguing 
          that the litigation conferred a significant benefit on the 
          public, there was necessity for private enforcement of the 
          constitutional provision, and the advancement of the public 
          benefit was not coincidental to the attainment of any personal 
          goals and was not self-serving.  Plaintiff Lord's initial demand 
          was for approximately $90,000.  The matter was settled for 
          $64,583.50.