BILL ANALYSIS �
AB 1615
Page 1
Date of Hearing: May 21, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1615 (Gatto) - As Amended: May 15, 2014
Policy Committee: Appropriations
Vote:
Urgency: Yes State Mandated Local Program:
No Reimbursable:
SUMMARY
This urgency bill:
1)Appropriates $2.7 million from the State Board of Chiropractic
Examiners' Fund to the Department of Justice (DOJ) to pay the
settlement in Arbuckle v California Board of Chiropractic
Examiners, et al. Any funds appropriated in excess of the
amounts required for payment of these claims revert to the
chiropractic fund.
2)Appropriates $157,000 from the General Fund to the Department
of Justice to pay the judgment in Planning and Conservation
League v. State, et al. Any funds appropriated in excess of
the amounts required for the payment of this claim revert to
the General Fund.
FISCAL EFFECT
1)One-time special fund appropriation of $2,698,000 to DOJ to
pay a legal settlement.
2)One-time GF appropriation of $157,000 to DOJ to pay a legal
settlement.
COMMENTS
1)Rationale. This bill is one of the bills carried by the chairs
of the Appropriations Committees each year 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
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(DOJ). They are binding state obligations.
2)Case Background.
a) In Arbuckle v. California Board of Chiropractic
Examiners, et al., (Court of Appeal, Third District,
California, 2013 WL 3467054) the lawsuit resulted from a
whistleblower complaint filed June 17, 2002. The complaint
was filed by a Board of Chiropractic Examiners (Board)
employee, who alleged the Board chair failed to pay her
license renewal fee and that the Board failed to take
action against the chair for practicing without an active
license. On January 27, 2003, the State Personnel Board
(SPB) filed a Notice of Findings that recommended dismissal
of the complaint. The plaintiff failed to file a petition
for hearing and the Notice of Findings was adopted by the
SPB.
On February 21, 2003, Arbuckle filed a civil action
against the Board, alleging various unlawful retaliations
related to the whistleblower complaint. On February 25, 2011,
and after several appeals, the Board was ordered to pay
$2,106,201 ($1,175,000 judgment, $926,452 attorneys' fees, and
$4,749 plaintiff's costs and disbursements), along with
interest (7% per year) from July 28, 2010 (the date of the
original jury verdict). The estimated interest from July
28, 2010 to July 31, 2014, is $591,757.45. The Board's appeal
failed. All appeals for the Board have been exhausted and the
judgment is final.
b) In Planning and Conservation League v. State (Super Ct.,
Alameda County, 2013, No. RG12626904) $157,000 ($155,000
for attorneys' fees and $395 for costs, plus interest
accrued) represents the judgment granted in favor of the
Planning and Conservation League against the Controller.
The lawsuit involved a constitutional challenge to judicial
review provisions in AB 900 (Buchanan, 2011), which
provides for expedited judicial review of challenges to
"environmental leadership projects." The judgment in the
case declared Public Resources Code section 21185,
subdivision (a)(1), enacted as part of AB 900, to be
facially unconstitutional. Section 21185 required
California Environmental Quality Act challenges to
environmental leadership projects to be filed directly in
the Court of Appeal. The judgment enjoins the State
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Controller from spending funds to implement the code
provision. AB 900 was amended following the ruling in the
Planning and Conservation League case and now allows such
challenges to be brought in any court with jurisdiction to
hear writ petitions, including superior courts.
Plaintiffs initially sought almost $700,000 in attorneys'
fees, but the court ruled the fee request was not
reasonable.
3)Related Legislation .
a) AB 234 (Gatto), Statutes of 2013, appropriated $20.7
million to pay for two settlements.
b) SB 371 (De Leon), Statutes of 2013, appropriated $15.6
million to pay for two settlements
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081