BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1938
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 1938 (Hagman)
          As Amended April 7, 2014
          Majority vote 

           JUDICIARY           8-1                                         
           
           ----------------------------------------------------------------- 
          |Ayes:|Wieckowski, Wagner,       |     |                          |
          |     |Alejo, Chau, Dickinson,   |     |                          |
          |     |Garcia, Maienschein,      |     |                          |
          |     |Muratsuchi                |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Stone                     |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Significantly extends the statute of limitations for  
          certain civil actions against the criminally insane.   
          Specifically,  this bill  provides that the time for commencement  
          of an action for damages, against a defendant who is found not  
          guilty of specified, serious felony 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. 

          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  
            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)  








                                                                  AB 1938
                                                                  Page  2


            kidnapping.  

          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.  

           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.  

             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.  This statute was 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 the story of the crime was  
               included). 
           
          FISCAL EFFECT  :  None

           COMMENTS  :  This bill has a very laudable goal - make sure that  
          perpetrators of horrendous crimes do not profit from those  








                                                                  AB 1938
                                                                  Page  3


          crimes.  This bill seeks to do so by expanding dramatically the  
          time period for bringing a civil action against those who  
          committed these crimes but who were found not guilty by reason  
          of insanity.  

          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 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. 

          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. (1991) 502 U.S.  
          105, invalidated the law.  In Keenan v. Superior Court (2002) 27  
          Cal.4th 413, the 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.  








                                                                  AB 1938
                                                                  Page  4



          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), Chapter 633, Statutes of 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 10 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.    

          To close what the author describes as a loophole in the current  
          law, the bill proposes to add a group 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 -  
          those 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, 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  








                                                                  AB 1938
                                                                  Page  5


          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."


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


                                                                FN: 0003115