SB 124 Senate Bill - Bill Analysis

BILL ANALYSIS �

SB 124
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SENATE THIRD READING
SB 124 (Kehoe)
As Amended August 16, 2012
2/3 vote. Urgency

SENATE VOTE :22-16

SUMMARY : As amended (to add an urgency clause), this bill
appropriates $1,422,000 from the General Fund (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 : 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.

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

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life-without-possibility-of-parole, engaged in conversations
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.

Parent Voices et al. v. Jack O'Connell . The 2010 Budget Act
terminated California Work Opportunity and Responsibility to
Kids (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 7%.

Proposed amendments add an urgency clause .

1)Related legislation .

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

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