BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:  April 1, 2014

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                 AB 1938 (Hagman) - As Introduced:  February 19, 2014

           SUBJECT  :  STATUTE OF LIMITATIONS: TORT ACTIONS AGAINST WARDS AND  
          CRIMINALLY INSANE

           KEY ISSUES  :  

             1)   SHOULD THE LAW THAT ALLOWS CRIME VICTIMS TO BRING A  
               CIVIL ACTION AGAINST THOSE CONVICTED OF SPECIFIED FELONIES  
               FOR UP TO TEN YEARS AFTER THE CONVICTED FELON IS DISCHARGED  
               FROM PAROLE BE EXPANDED TO INCLUDE ACTIONS AGAINST children  
               charged in juvenile court AND THOSE FOUND NOT GUILTY BY  
               REASON OF INSANITY?

             2)   ARE THERE SPECIAL CIRCUMSTANCES INVOLVING JUVENILE  
               DELINQUENCY CASES THAT MAY MITIGATE IN FAVOR OF POTENTIALLY  
               DIFFERENT TREATMENT UNDER THE BILL, SUGGESTING THE BENEFIT  
               OF STUDYING THAT PARTICULAR SCENARIO FIRST BEFORE EXPANDING  
               THE LAW IN THAT UNIQUE AREA?  

                                      SYNOPSIS

          This bill has the laudable goal of trying to ensure that  
          perpetrators of horrific crimes do not profit from those crimes.  
           The bill seeks to do so by expanding dramatically the time  
          period for bringing a civil action against those who committed  
          these crimes as children or who are found not guilty of those  
          crimes by reason of insanity.  Because of constitutional  
          limitations, victims cannot just take a criminal's profits from  
          selling his or her felonious tale.  Instead, California enacted  
          a very long statute of limitations to allow crime victims to sue  
          defendants convicted of very serious crimes for damages within  
          10 years after release from prison.  But that statute requires a  
          criminal conviction.  Children who go through the juvenile court  
          and those found guilty by reason of insanity are not convicted  
          of a crime and, thus, today not subject to the extended statute  
          of limitations.  This bill would subject wards of the juvenile  
          court and the criminally insane to the same extended civil  
          statute of limitations that applies to ordinary criminals.  









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          Almost all juveniles charged with the crimes for which the  
          extended statute of limitations applies are today already  
          charged as adults.  The remaining children are either very young  
          or otherwise deemed fit for treatment in the juvenile justice  
          system, which seeks to rehabilitate young offenders, in addition  
          to punishing them.  By subjecting these children to long-term  
          civil liability exposure that may interfere with their ability  
          to re-integrate into society, this bill might inadvertently  
          prevent them from going to college, obtaining lucrative  
          employment and becoming productive members of society.   The  
          analysis therefore suggests, as an alternative to immediately  
          adding young offenders in juvenile court to the extended statute  
          of limitations, the Committee may conclude it would be helpful  
          first to secure a study of the potential impacts, both positive  
          and negative, of such an extended statute of limitations on  
          children in the juvenile justice system.   While there is no  
          reported support for the bill, it is opposed by California  
          Attorneys for Criminal Justice who are particularly concerned  
          about the bill's impact on those found legally insane because of  
          their likely life-long mental disease and their inability to  
          properly participate in their defense in a civil case.

           SUMMARY  :  Significantly extends the statute of limitations for  
          certain civil actions against juveniles and the criminally  
          insane.  Specifically,  this bill provides that the time for  
          commencement of an action for damages, against a defendant who  
          is either declared a ward of the court based upon the  
          defendant's commission of specified, serious felony offenses or  
          found not guilty of those same offenses by reason of insanity,  
          is within 10 years of the date on which the defendant is  
          released from custody.    

           EXISTING LAW  :

          1)Provides that, unless a longer period is prescribed, the time  
            for commencement of any civil action for damages against a  
            defendant based upon that person's commission of a felony  
            offense for which the defendant has been convicted is within  
            one year after judgment is pronounced.  (Code of Civil  
            Procedure (CCP) Section 340.3(a).)

          2)Provides that, notwithstanding #1), above, the time for  
            commencement of an action for damages against a defendant  
            based upon the defendant's commission of specified felony  








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            offenses for which the defendant has been convicted is within  
            10 years of the date on which the defendant is discharged from  
            parole.  Specified offenses include: (a) murder or attempted  
            murder; (b) mayhem; (c) rape and other specified sexual  
            assault crimes; (d) any felony punishable by death or  
            imprisonment in the state prison for life or attempt to commit  
            such a felony; (e) exploding a destructive device or other  
            explosive, causing bodily injury, mayhem or with intent to  
            commit murder; or (f) kidnapping.  (CCP Section 340.3(b)(1).)

          3)Provides that the extended statute of limitations in #2),  
            above, does not apply if:

              a)    The defendant has received a certificate of  
                rehabilitation or a pardon;
              b)    Following a conviction for murder or attempted murder  
                the defendant has been paroled based on evidence presented  
                to the Board of Prison Terms that the defendant committed  
                the crime because he or she was the victim of intimate  
                partner battering; or
              c)    The defendant was convicted for murder or attempted  
                murder in the second degree in a trial at which  
                substantial evidence was presented that the defendant  
                committed the crime because he or she was the victim of  
                intimate partner battering.  (CCP Section 340.3(b)(2).)

           4) Requires that any restitution paid by the defendant to the  
             victim shall be credited against any judgment, award or  
             settlement obtained pursuant to #2), above.  (CCP Section  
             340.3(e).)

          5)Permits a person who would have the right to recover damages  
            from a felon based on the commission of the crime to bring an  
            action to recover his or her interest in an involuntary trust  
            established from the felon's attempt to profit from the  
            felony.  (Civil Code Section 2225.)  This statute found  
            unconstitutional by the California Supreme Court in Keenan v.  
            Superior Court (2002) 27 Cal.4th 413, cert. den. Sinatra v.  
            Keenan (2002) 537 U.S. 818 (statute facially invalid under the  
            free speech clause of the First Amendment and the liberty  
            speech clause of the California Constitution because it was  
            over-inclusive and reached beyond a criminal's profits from  
            the crime or its exploitation to reach all income from the  
            criminal's speech or expression on any theme or subject, if  








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            the story of the crime was included). 
           
          FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

           COMMENTS  :  This bill has a very laudable goal - make sure that  
          perpetrators of horrendous crimes do not profit from those  
          crimes.  This bill seeks to do so by expanding dramatically the  
          time period for bringing a civil action against those who  
          committed these crimes as children or who were found not guilty  
          by reason of insanity.  

          In support of the bill, the author states:

               Like many other states, California has a "Son of Sam" law  
               designed to permit lawsuits, on generous terms, by victims  
               of crime against those who committed the crime against  
               them.  California's law (Code of Civil Procedure �340.3)  
               allows victims who bring civil actions for damages to file  
               suit for up to 10 years after the defendant is discharged  
               from parole for specified serious felonies which include  
               murder, rape, and kidnapping, among others.  However, there  
               is loophole that was not addressed when the original Son of  
               Sam law was passed.  The statue requires a formal  
               conviction in order for the provisions to apply.  This  
               excludes two legal statues that are equivalent to a  
               conviction in the sense that the offender was found to have  
               committed the offense, but was not "convicted" in the  
               technical sense: a sustained juvenile delinquency petition  
               (which also requires proof beyond a reasonable doubt) and a  
               verdict of not guilty by reason of insanity (which is  
               different than an acquittal in that it means that the  
               defendant was found to have committed the act, but due to  
               his or her mental state was incapable of knowing or  
               understanding the nature of their act).  

               A recent New York case highlighted problems with the use of  
               the term "conviction" in their Son of Sam statue.  New  
               York's law prohibits offenders from profiting from their  
               crimes, but a woman who was found not guilty by reason of  
               insanity is attempting to obtain funds from a trust of the  
               children she murdered.  Because she was not "convicted",  
               she may be eligible. 









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               Similarly, under California's law, a victim of crime might  
               not be able to take advantage of the extended civil statute  
               of limitation period if the offender was not "convicted" of  
               the crime but was adjudicated delinquent in juvenile court  
               or found not guilty by reason of insanity.  By including  
               these offenders, AB 1938 ensures that all victims of these  
               horrendous crimes are treated equally when seeking  
               compensation.

           Background on "Son of Sam" Law and Extended Civil Statute of  
          Limitations  :  David Berkowitz, dubbed the "Son of Sam," was a  
          serial killer who terrorized New York City in the late 1970's.   
          After his capture, there was much speculation about that  
          publishers would offer him large sums of money for his story.   
          His crimes were later told in books, movies and even songs.  New  
          York responded by enacting the first "Son of Sam" law, which  
          imposed an involuntary trust on the income earned by criminals  
          who sell the rights to the stories about their criminal acts.   
          The victims of the acts become the beneficiaries of the  
          involuntary trusts.  

          In 1980, Henry Hill, a lifelong mobster, was arrested in New  
          York.  In exchange for immunity from prosecution and a new  
          identity, Hill testified at great length about his life of  
          crime.  Subsequently, Hill signed a contract with Simon &  
          Schuster to publish a book recounting his life as a mobster.   
          The book, Wiseguy, was a commercial success, and was later made  
          into the movie Goodfellas, another huge commercial success.  The  
          State of New York moved to place an involuntary trust on Hill's  
          income.  The publisher, Simon & Schuster, filed a lawsuit  
          challenging the constitutionality of the "Son of Sam" law as an  
          illegal restraint on speech.  The U.S. Supreme Court struck down  
          the law as an unconstitutional, content-based financial burden  
          on free speech rights.  (Simon & Schuster v. New York Crime  
          Victims Bd. (1991) 502 U.S. 105.)

          California passed its own "Son of Sam" law in 1986 to prevent  
          those convicted of notorious crimes from profiting on those  
          crimes by selling their stories.  The statute did so by imposing  
          an involuntary trust on the proceeds a felon receives from the  
          sale of the story of his or her crime.  However, the California  
          Supreme Court, following the U.S. Supreme Court's decision in  
          Simon & Schuster v. New York Crime Victims Bd., invalidated the  
          law.  In Keenan v. Superior Court (2002) 27 Cal.4th 413, the  








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          Court found provisions of the law violated the constitutional  
          guarantee of free speech, by imposing a content-based financial  
          penalty on protected speech that was over inclusive in reaching  
          beyond the criminal's profits from the crime or its exploitation  
          to gather all income from the criminal's speech or expression on  
          any theme or subject, if the story of the crime was included.  

          In light of those decisions, which make it nearly impossible to  
          draft a law that directly targets the profits made by a felon  
          from selling the story of his or her crime that will withstand  
          constitutional challenge, the Legislature took an alternative  
          approach to ensure that victims of crime can recover against  
          those who harmed them: extending the statute of limitations to  
          allow a victim more time to file a tort action against a  
          defendant to recover damages based on the commission of the  
          crime.  (SB 1887 (McPhearson), Chap. 633, Stats. 2002.)  That  
          bill greatly extended the statute of limitations for a civil  
          action brought by a crime victim (which had been within one year  
          of conviction of the crime), allowing the victim to bring a  
          civil action any time up to ten years after the defendant is  
          discharged from parole if the conviction is for one of a list of  
          specified offenses.  The specific offenses include murder or  
          attempted murder, mayhem, rape, kidnapping, and any felony  
          punishable by death or imprisonment in the state prison for life  
          or attempt to commit such a felony.  

          The statute specifically exempts from the extended statute of  
          limitations any defendant who has been pardoned or received a  
          certificate of rehabilitation and victims of domestic violence  
          who killed or attempt to kill their abusers.  Thus, the  
          Legislature specifically chose to exempt groups from the  
          extended statute of limitations because of their reduced  
          culpability or their later rehabilitation.    

           This Bill Adds Two New Groups to the Extended Statute of  
          Limitations  :  To close what the author describes as a loophole  
          in the current law, the bill proposes to add two groups of  
          individuals who have committed one of specific offenses set  
          forth in existing law, but who were not convicted of those  
          crimes by a court and thus are today not included in the  
          extended statute of limitations.  The first group is children  
          who committed the crime while under 18 and who were not charged  
          as adults.  In that case, they were adjudicated delinquents by  
          the juvenile court, but not convicted of the crime.  The second  








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          group is those found not guilty by reason of insanity.

           Most Juvenile Offenders are Already Charged as Adults for the  
          Crimes in the Bill, Potentially Obviating the Need for Bill  :   
          Proposition 21 in 2000 significantly changed how youth charged  
          with serious crimes are treated.  Prior to Proposition 21, while  
          a youth 14 years or older could be tried as an adult for certain  
          offenses, first the prosecutor would have to file a petition  
          with the juvenile court asking the court to transfer the  
          juvenile to adult court for prosecution.  Then the juvenile  
          court would hold a hearing to determine whether the case should  
          be transferred based on how the youth would do with the care,  
          treatment and programs in the juvenile justice system.  After  
          passage of Proposition 21, however, it became much easier to  
          charge youth as adults.  

          Under Proposition 21, youth age 14 or older charged with  
          committing certain serious felonies must be tried in adult court  
          and are no longer eligible for juvenile court.  These felonies  
          are: personally committing murder with special circumstances and  
          specific sexual crimes, including rape, and lewd and lascivious  
          acts on a child under the age of 14 years.  In addition,  
          prosecutors can now directly file charges against juvenile  
          offenders in adult court under a wide variety of circumstances  
          without first obtaining permission of the juvenile court.  For  
          youth 16 years of age and older, these circumstances include:   
          murder or attempted murder; arson; robbery; rape and other  
          sexual assaults; kidnapping; assault with a firearm, destructive  
          device, or by any means of force likely to produce great bodily  
          injury; discharge of a firearm; a felony offense in which the  
          minor personally used a weapon; manufacturing or selling  
          controlled substances; certain violent felonies; torture;  
          mayhem; and carjacking.  For youth at least 14 years old, these  
          circumstances include the crimes listed above, provided there  
          are additional conditions, such as a previous commission of one  
          of these crimes.  Additionally, under Proposition 21 a youth who  
          is 16 or older who is charged with commission of any felony  
          offense is presumed unfit for juvenile court jurisdiction if the  
          youth has been adjudged on one or more prior occasions to be a  
          ward of the court and was found to have committed prior felonies  
          after the age of 14. 

          Moreover, as before Proposition 21, even if the prosecutor does  
          not seek to charge the youth as an adult or the youth is young,  








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          the juvenile court can hold a fitness hearing to determine if  
          the youth should be tried as an adult if specific circumstances  
          exist.  The central questions at the fitness hearing is whether  
          the minor is amenable to the care, treatment, and training  
          programs available through the juvenile court.  In making that  
          determination, the court must consider:  (1) the degree of  
          criminal sophistication; (2) possibility of rehabilitation  
          before the juvenile court loses jurisdiction; (3) previous  
          delinquent history; (4) results of prior attempts to  
          rehabilitate; and (5) the circumstances and gravity of the  
          offense.  In some instances, the prosecutor has the burden of  
          proof in the fitness hearing, while in other instances based on  
          the crime charged and the youth's history with law enforcement,  
          the youth has the burden of proof.

          Between the crimes that must be charged as an adult and the  
          crimes that the prosecutor can decide to charge as an adult,  
          almost every one of the crimes for which the extended statute of  
          limitations applies already is or, at the discretion of the  
          prosecutor, may be charged as an adult and thus already covered  
          by the existing long civil statute of limitations.  Moreover  
          every one of the crimes for which the extended statute of  
          limitations applies, depending on the age of the child and their  
          prior criminal history, can be brought in adult court, based on  
          the juvenile court's fitness hearing.  Thus, this bill will  
          likely impact only a small group of children who committed these  
          serious crimes when they were, almost always, very young and  
          were deemed fit for the rehabilitative programs available in the  
          juvenile justice system.  

           The Juvenile Justice System Designed to Punish, But Also to  
          Rehabilitate  :  While both California's adult and juvenile  
          justice systems seek to protect the public and punish offenders,  
          the juvenile justice system must also treat and rehabilitate  
          young offenders.  Minors under the jurisdiction of the juvenile  
          court as a consequence of delinquent conduct must, in conformity  
          with the interests of public safety and protection, receive  
          care, treatment, and guidance that is consistent with their best  
          interest, that holds them accountable for their behavior, and  
          that is appropriate for their circumstances.  While this  
          guidance may include punishment, it must be consistent with the  
          rehabilitative objectives of juvenile court.  Moreover,  
          punishment may not include retribution. 









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          Given the important rehabilitative objectives of the juvenile  
          justice system for those children who are not charged as adults,  
          it is important to understand if this bill could have the  
          unintended consequence of undermining those significant  
          objectives.  This is particularly true since the extended  
          statute of limitations does not distinguish between income  
          earned by the juvenile based on their hard work and income  
          earned by attempting to profit off the crime.  By subjecting  
          these children to long-term civil liability exposure that may  
          interfere with their ability or desire to re-integrate into  
          society, might this bill inadvertently prevent them from going  
          to college, obtaining lucrative employment and becoming  
          productive members of society?  With such disincentives to  
          improve, a youth released from the juvenile justice system might  
          have no incentive to reintegrate and may simply choose to go  
          "underground" or go back to the criminal life, only to  
          eventually re-offend.  Moreover, it appears that this group of  
          young offenders is more like the groups that today are already  
          exempted from the extended statute of limitations - those  
          offenders who were pardoned or rehabilitated or certain victims  
          of domestic violence.  Does it make sense to make young  
          offenders left in the juvenile justice system subject to the  
          extended statute of limitations, when other, more similar  
          offenders are specifically exempted?

          Given these concerns,  this Committee may wish to explore with  
          the author  the possibility of asking Judicial Council to study  
          whether it is appropriate, from a public policy perspective, to  
          apply the extended statute of limitations to juveniles who have  
          not been tried as adults, but who have been declared wards of  
          the court based upon their commission of specified, serious  
          felony offenses.  This study would help educate our Committee on  
          the impacts of this proposal before passing legislation that  
          could have unintended and negative consequences for society as a  
          whole, as well as the children involved.

           Bill Also Applies to Those Found Not Guilty by Reason of  
          Insanity  .  This bill also expands the extended statute of  
          limitations for civil actions tied to specific crimes to include  
          those who are found not guilty by reason of insanity.  The  
          author notes that there is a case in New York where a woman was  
          found not guilty by reason of insanity but is trying to profit  
          from her crime by "attempting to obtain funds from a trust of  
          the children she murdered."  While this situation has,  
                                                           







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          apparently, not yet arisen in California, the author seeks to  
          ensure that those found criminally insane can be subject to a  
          civil action for damages based on their crimes for the extended  
          period of time permitted, even though they lack legal  
          culpability.   

          California Attorneys for Criminal Justice oppose the bill and  
          are particularly concerned about applying the extended statute  
          of limitations against the mentally ill:

               Severely mentally ill patients, that are found guilty of  
               any crime by reason of insanity, do not get cured of their  
               mental disability. . . . Mental disabilities are lifelong  
               disabilities with varying levels of recovery, even if the  
               patient is released from custody into non-custodial  
               treatment and supervision centers, they are not independent  
               functioning community members upon release from custody. 

               By definition, someone who is declared not guilty by reason  
               of insanity is not able to engage in civil litigation on  
               their own or assist an attorney on their behalf.  The  
               mentally disabled patient, not guilty by reason of  
               insanity, is usually housed in a state hospital for  
               decades, then released to community treatment and  
               supervision by State Authorities. . . . 
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file 

           Opposition 
           
          California Attorneys for Criminal Justice

           Analysis Prepared by  :  Leora Gershenzon / JUD. / (916) 319-2334