BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 124
                                                                  Page  1

          Date of Hearing:   August 16, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 124 (Kehoe) - As Amended:  August 6, 2012 

          Policy Committee:                             
          AppropriationsVote: 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          As proposed to be amended (to add an urgency clause) this bill 
          appropriates $1,422,000 from the GF to pay for two legal 
          settlements, Harris v California National Guard ($990,000) and 
          Parent Voices et al. v. Jack O'Connell ($432,000). 

           FISCAL EFFECT  

          Appropriates $1,422,000 from the GF - $990,000 to the Department 
          of Justice (DOJ) and $432,000 to the Department of Education - 
          to pay for two legal settlements. 

           COMMENTS  

           1)Rationale.  This bill is one of two or three annual bills 
            carried by the Appropriations chairs to provide appropriation 
            authority for legal settlements approved by DOJ and the 
            Department of Finance (DOF). These settlements were entered 
            into lawfully by the state upon advice of counsel (DOJ). They 
            are binding state obligations.  

          2)Harris v California National Guard  .  This $990,000 settlement 
            concludes the wrongful death case of Harris v. California 
            National Guard.  On August 24, 2007, a Staff Sergeant murdered 
            an employee of the California National Guard at the Culver 
            City Armory and was convicted of murder. The victim was 
            pregnant with the married offender's child and had engaged in 
            a series of discussions with the offender to encourage 
            abortion, including alleged promises of a car in exchange for 
            the abortion. Concurrently, the killer, now serving 
            life-without-possibility-of-parole, engaged in conversations 








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            with others regarding harming the fetus. These conversations 
            were passed on to National Guard authorities, who in turn, 
            involved civilian authorities.  

            On October 1, 2008, the victim's mother filed a wrongful death 
            suit in state court as an individual and successor-in-interest 
            to the victim. During the trial the Judge urged that, based on 
            evidence produced, it was in the best interest of the state to 
            settle the case.  
                 
            3)Parent Voices et al. v. Jack O'Connell  . The 2010 Budget Act 
            terminated CalWORKs Stage 3 Child Care services, effective 
            November 1, 2010. Child care advocates and several affected 
            parents sued the State Department of Education in Alameda 
            County to halt termination of services for Stage 3 families. 
            The petitioners claimed proper notice and due process were not 
            provided, and that the state had a duty to attempt to transfer 
            affected families to child care slots in other programs for 
            which they were eligible.  

            Pursuant to court order, the termination of Stage 3 services 
            was delayed until December 31, 2010, to allow for eligibility 
            screening and possible placement of Stage 3 families in other 
            programs. As a result, approximately 4,500 children were 
            placed in other programs. Funding for Stage 3 was restored in 
            2010-11, and the parties agreed in June 2011 to allow the 
            children who had been placed in other programs to return to 
            Stage 3. The suit has since been concluded, with the exception 
            of the plaintiff's outstanding demand for attorneys' fees.

            While the plaintiffs assert the actual hours spent on the case 
            amounts to more than $800,000, they have agreed to settle for 
            $432,000 to cover the attorney's fees. 

            The settlement stipulates that if payment of the fees is not 
            made within 60 days of enactment of the settlements bill, 
            interest will begin to accrue at an annual rate of seven 
            percent.

           4)Proposed amendments add an urgency clause. 
                 
            5)Related Legislation  . 

             a)   SB 1558 (Kehoe), chaptered in June 2012, appropriated 
               $2.6 million ($1.3 GF; $1.3 Federal Trust Fund) to the 








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               Department of Justice (DOJ) to pay the settlement in 
               Darling v. Douglas, U.S. District Court, Northern District.

             b)   SB 730 (Kehoe), chaptered in February 2012, appropriated 
               $13 million to DOJ to pay for six settlements, with 
               interest in two cases. 

             c)   AB 140 (Fuentes) and SB 206 (Kehoe), both chaptered in 
               2011, appropriated funds for state settlements last year. 


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