BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 124 (Kehoe) - Claims.
          
          Amended: August 20, 2012        Policy Vote: None
          Urgency: Yes                    Mandate: No
          Hearing Date: August 29, 2012                     Consultant: 
          Bob Franzoia  
          
          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.
          
          Bill Summary: SB 124 would appropriate $1,422,000 from the 
          General Fund for the payment of claims.

          Fiscal Impact: $1,422,000 appropriation from the General Fund in 
          2012-13.
                    The Parent Voices settlement stipulates that if 
               payment is not made within 60 days of the enactment of a 
               claims bill, interest shall begin to accrue at an annual 
               rate of seven percent.  The Harris settlement stipulates 
               that in no event shall interest accrue before October 2012. 
                

          Background: Claims bills are authored by the chairs of the 
          Appropriations Committees to provide appropriation authority for 
          judgment and settlement claims and for claims approved by the 
          Victim Compensation and Government Claims Board. 

          Proposed Law: Harris v. California National Guard.
          Los Angeles County Superior Court, Case No. BC 399229.
          $990,000 settlement.

          This 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 








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          abortion.  Concurrently, the killer, now serving 
          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.   
                 
           Parent Voices et al. v. Jack O'Connell.
          Alameda County Superior Court, Case No. RG10544021.
          $432,000 settlement.

          The 2010 Budget Act terminated CalWORKs Stage 3 child care 
          services, effective November 1, 2010.  Child care advocates and 
          several affected parents sued the California Department of 
          Education 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 a court order, the termination of Stage 3 child care 
          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 child care 
          services 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 child care services. 

          Related Legislation: SB 1558 (Kehoe) Chapter 20/2012 
          appropriated $1.3 million from the General Fund and $1.3 million 
          from the Federal Trust Fund to the Department of Justice to pay 
          the settlement in Darling v. Douglas, U.S. District Court, 
          Northern District.

          SB 1504 (Kehoe) Chapter 19/2012 revised interest payment 
          timelines for state claims.

          SB 730 (Kehoe) Chapter 5/2012 appropriated $13 million to the 
          Department of Justice to pay for six settlements.  Two of the 
          settlements contained interest provisions. 








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          Staff Comments: Government Code 11040 states the intent of the 
          Legislature that the Attorney General be employed as counsel for 
          the representation of state agencies and departments in judicial 
          and other proceedings except with respect to the state officers 
          and agencies specified by title or name in Government Code 
          11041.  Government Code 11041 designates several entities, 
          including the California Department of Education, which may 
          represent themselves.