BILL ANALYSIS �
SB 206
Page 1
SENATE THIRD READING
SB 206 (Kehoe)
As Amended March 15, 2011
2/3 vote. Urgency
SENATE VOTE :37-0
APPROPRIATIONS 16-0
-----------------------------------------------------------------
|Ayes:|Fuentes, Harkey, | | |
| |Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, | | |
| |Donnelly, Gatto, Hall, | | |
| |Hill, | | |
| |Lara, Mitchell, Nielsen, | | |
| |Norby, | | |
| |Solorio, Wagner | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
-----------------------------------------------------------------
SUMMARY : This bill appropriates $600,000 from the State Board
of Chiropractic Examiners' Fund to the State Board of
Chiropractic Examiners (board) to pay for the stipulated
settlement in Catherine Hayes v. Board of Chiropractic
Examiners. Any funds appropriated in excess of the amount
required for the payment of these claims shall revert to the
fund.
FISCAL EFFECT: Appropriates $600,000 from the fee-based
Chiropractic Examiners' Fund, which has a projected reserve of
about $2 million.
COMMENTS :
1)Rationale . This bill is one of two annual bills carried by
the Appropriations Committee chairs to provide appropriation
authority for state judgments and settlements approved by the
Department of Finance.
2)Case background .
Catherine Hayes v. Board of Chiropractic Examiners, Sacramento
SB 206
Page 2
County Superior Court. The board agreed to a stipulated
settlement of $600,000 with former Board Executive Officer,
Catherine Hayes.
Hayes alleged the board retaliated against her, terminating
her employment as a result of her testimony and cooperation in
criminal investigations and prosecutions of chiropractors in
the County of San Joaquin relating to the practice of
manipulation under anesthesia. Hayes alleged the board a)
conspired to affect the outcome of criminal prosecutions by
voting to recognize manipulation under anesthesia as falling
within the chiropractic scope of practice; b) intimidated
witnesses in related criminal proceedings; c) violated the
Bagley-Keene Open Meetings Act through serial communications
outside the board meetings; and, d) engaged in gender
discrimination in hiring and compensating executive officers.
Recently the board, represented by the Department of Justice
(DOJ), suffered an adverse verdict at trial in a case in which
DOJ advised there was little or no liability exposure. The
jury award exceeded $1,000,000 in compensatory damages, with
an award of attorney's fees and costs in excess of $1,000,000
to be determined by the court. According to the board, the
facts and circumstances of the Hayes dispute, combined with
the recent experience at trial compelled the settlement
resolution.
3)Related legislation .
AB 140 (Fuentes), which appropriates $232,000 funds for two
state settlements, passed the Assembly 79-0 and is pending in
the Senate.
AB 1714 (Fuentes), Chapter 56, Statutes of 2010 and SB 911
(Kehoe), Chapter 26, Statutes of 2010, appropriated funds for
state settlements last year.
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081
FN: 0001531
SB 206
Page 3