Existing law requires the Attorney General to pay certain judgments against the state.

This bill would make an appropriation of specified amounts from the General Fund to the Attorney General to pay specified judgements against the state.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the Attorney General to pay certain judgments against the state.

This bill would make an appropriation of specified amounts from the General Fund to the Attorney General to pay specified judgements against the state.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the Attorney General to pay certain judgments against the state.

This bill would make an appropriation of specified amounts from the General Fund to the Attorney General to pay specified judgements against the state.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the Attorney General to pay certain judgments against the state.

This bill would state that it appropriates an unspecified amount make an appropriation of specified amounts from the General Fund to the Attorney General to pay an undesignated judgment. specified judgements against the state.

This bill would declare that it is to take effect immediately as an urgency statute.

Existing law requires the Attorney General to pay certain judgments against the state.

This bill would state that it appropriates an unspecified amount from the General Fund to the Attorney General to pay an undesignated judgment.

This bill would declare that it is to take effect immediately as an urgency statute.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 213

Author:(Gonzalez Fletcher)

As Amended Ver:August 21, 2017

2/3 vote. Urgency

Original Committee Reference: APPR.

SUMMARY:

This urgency bill appropriates $5,680,000 from the General Fund to the Attorney General (AG) for the payment to settle two judgements against the state. Any funds appropriated in excess of the amounts required for payment of the claims would revert to the General Fund (GF).

The Senate amendments:

Increase the appropriation by $4.4 million to pay for attorney fees and court costs resulting from two cases, Donna Fiery, et al. v. the Department of Fish and Game (DFG), which was consolidated with Tolowa Nations v. DFG.

FISCAL EFFECT:

One-time GF appropriation of $5.68 million to the AG to pay the judgment for the following claims:

1. North Coast Rivers Alliance v. Kawamura - $766,043.84,
2. Our Children's Earth Foundation - $513,956.16, and
3. Donna Fiery, et al. - $4.4 million.

COMMENTS:

1. Background. 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). This settlement for these claims was entered into lawfully by the state upon advice of counsel (DOJ). The settlement is a binding state obligation.
2. Purpose. This bill is necessary to pay Attorney's fees for North Coast Rivers Alliance v. Kawamura, Superior Court of California, County of Sacramento, Case No. 34-2010-80000518, Our Children's Earth Foundation v. California Department of Food and Agriculture, Superior Court of California, County of Sacramento, Case No. 34-2010-80000638, and Donna Fiery, et al., v. California Department of Fish and Wildlife, et al. Superior Court of California, County of Sacramento, Case No. 34-2011-00095243.

Two cases challenged, under the California Environmental Quality Act, the California Department of Food and Agriculture's approval of a program to control the light brown apple moth, and the certification of the environmental impact report necessary for that approval. The cases were heard together in Sacramento County where the judge ruled against the petitioners on August 28, 2012.

However, on appeal, the Third Appellate District reversed the trial court's decision on December 2015, ruling in favor of the petitioners. The petitioners submitted claims for attorney fees. After extensive negotiations, the petitioners settled $750,000 for North Coast Rivers Alliance and $500,000 for Our Children's Earth Foundation, which were memorialized in court orders entered on March 6, 2017 and January 31, 2017, respectively. Per current law, these payments are subject to interest 180 days after these dates.

In addition to the $1,250,000 for attorney fees, the appropriation included $30,000 for interest to ensure full payments can be made.

The third case is a consolidated case. In the 1980's various state agencies altered historical breaching practices and began managing Lake Earl, a coastal lagoon in Del Norte County, at a higher level for wildlife and park purposes. Plaintiffs file lawsuits alleging that increased breaching caused a physical taking of their properties (over 100 landowners were impacted). In 2011, following a court trial, the Court found in favor of the plaintiffs. DFW appealed the decision, the Court of Appeal affirmed the decision of the trial court. A mandatory settlement conference resulted in a tentative agreement of $4.4 million to settle the entire case. The DOJ and the Department of Finance have approved the agreement.

Any funds not necessary to pay the claims will revert back to the General Fund.

Analysis Prepared by: Pedro Reyes / APPR. / (916) 319-2081 FN: 0001497

 THIRD READING  

Bill No: AB 213

Author:

:

Vote:

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/28/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 65-0, 7/3/17 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST:

This bill, an urgency measure, appropriates $5.68 million from the General Fund to the Department of Justice (DOJ) for the payment of three specified claims against the state. Any funds appropriated in excess of the amounts required for payment of the claims would revert to the General Fund.

ANALYSIS: This bill is one of several annual bills carried by the chairs of the Appropriations Committees 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 (DOJ). They are binding state obligations.

This bill appropriates General Fund revenues to DOJ to pay the following legal settlements:

1. Donna Fiery, et. al. v. California Department of Fish and Wildlife, (Sacramento County Superior Court Case No. 34-2011-00095243), consolidated with Tolowa Nation, et. al. v. California Department of Fish and Wildlife (Sacramento County Superior Court Case No. 34-2012-00117161). $4.4 million settlement, payable from the General Fund. In 1963, the Pacific Shores Subdivision was approved and recorded with 1,535 lots on 1,486 acres in Del Norte County. While a 26-mile road system and drainage and flood control improvements were constructed within the subdivision, the lots went undeveloped. In 1979, the Department of Fish and Game purchased 2,500 acres in the area and established the Lake Earl Wildlife Area. Beginning in the 1980s, the state instituted eminent domain proceedings to acquire land within the subdivision, but abandoned that endeavor because property values were too high. Lake Earl is a coastal lagoon directly adjacent to the subdivision that naturally inundates the area every year unless it is artificially drained into the ocean. In the 1980s, the Department and other state entities approved a management plan for Lake Earl that altered historical breaching practices and allowed for managing the land at a higher level for wetland and habitat. The flooding blocks access to many of the lots in Pacific Shores.

Plaintiffs in the above noted cases are over 100 landowners who own nearly 160 lots in the Pacific Shores Subdivision. In the lawsuits, the plaintiffs allege that the Department is liable for damages for inverse condemnation by causing flooding, blocking access, and increasing wetlands on their properties, which constitutes a physical taking. Plaintiffs allege that the Department caused those damages by increasing the level at which the sandbar separating Lake Earl from the ocean could be breached from 4 feet above sea level to 8 feet above sea level.

The Fiery case was filed on January 18, 2011, and the Tolowa case was filed on January 17, 2012. On November 9, 2012, the Sacramento Superior Court granted a motion to consolidate the two cases into a single action. The complaint was ultimately limited to one cause of action for a physical taking, and while the parties disputed whether the Department is liable for damages for a physical taking, they agreed to settle the dispute short of a trial on its merits, and entered into a written agreement at a mandatory settlement conference on July 26, 2016.

Effective July 24, 2017, the parties entered into a settlement agreement that supersedes the previous written agreement. The settlement agreement requires the Department to pay the plaintiffs one lump sum of $4.4 million, including all costs and attorney’s fees, contingent upon action by the Legislature to approve the payment. No interest will accrue on this amount. In return, the plaintiffs will convey to the Department fee title to 158 parcels of real property at issue.

1. The related matters of North Coast Rivers Alliance v. Kawamura (Sacramento County Superior Court Case No. 34-2010-80000518) and Our Children’s Earth Foundation v. California Department of Food and Agriculture (Sacramento County Superior Court Case No. 34-2010-80000638). $1.28 million settlement, payable from the General Fund. These two cases challenged, under the California Environmental Quality Act, the California Department of Food and Agriculture’s (CDFA’s) approval of a program in March of 2010 to control the light brown apple moth, and the certification of the environmental impact report (EIR) necessary for that approval. The cases were heard together in Sacramento County Superior Court, where the judge ruled against the petitioners on August 28, 2012.

The Court of Appeal reversed the trial court’s decision on December 2, 2015, however, after finding that the EIR did not sufficiently consider alternative solutions to the eradication program. The court required CDFA to set aside approval of the eradication program and certification of the accompanying EIR. In addition to minimal costs paid by CDFA, petitioners had claims for attorney’s fees. Initial settlement demands were for recovery of over $1.5 million in attorney’s fees in the North Coast Rivers Alliance (NCRA) case and $850,000 in the Our Children’s Earth Foundation (OCEF) case. After extensive negotiations, the petitioners settled for a reduced amount of $750,000 and $500,000 separately. These amounts were memorialized in court orders entered on March 6, 2017 and January 31, 2017, respectively.

Staff notes that the settlement amounts are subject to additional interest that begins to accrue 180 days after the settlement date. In addition to the $1,250,000 for attorney fees, the appropriation in this bill includes an additional $30,000 for interest to ensure full payments can be made. Interest in the OCEF case began to accrue in the amount of $95.89 per day, beginning on July 30, 2017, and will begin to accrue in the NCRA case in the amount of $143.84 per day, beginning on September 2, 2017. Any funds not necessary to pay the two claims will revert back to the General Fund.

Related/Prior Legislation

SB 535 (Lara), Chapter 11, Statutes of 2017, appropriated approximately $32 million from the General Fund to DOJ for the payment of two specified claims against the state.

SB 1187 (Lara), Chapter 281, Statutes of 2016, appropriated $36.6 million from the General Fund to DOJ for the payment of two legal settlements.

AB 1693 (Gonzalez), Chapter 46, Statutes of 2016, appropriated $10.55 million from the General Fund to DOJ for the payment of a judgment and a settlement in two lawsuits against the state.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee:

• One-time General Fund appropriation of $4.4 million in 2017-18 to DOJ to pay the settlement in the consolidated cases of Donna Fiery, et. al. v. California Department of Fish and Wildlife, and Tolowa Nation, et. al. v. California Department of Fish and Wildlife.
  
• One-time General Fund appropriation of $1.28 million in 2017-18 to DOJ to pay a settlement for the following related matters:
  
  • $766,043.84 ($750,000, plus interest) for North Coast Rivers Alliance v. Kawamura.
  • $513,956.16 ($500,000, plus interest) for Our Children’s Earth Foundation v. California Department of Food and Agriculture.

SUPPORT: (Verified 8/30/17)

None received

OPPOSITION: (Verified 8/30/17)

None received

ASSEMBLY FLOOR: 65-0, 7/3/17

AYES: Acosta, Aguiar-Curry, Arambula, Baker, Berman, Bigelow, Bocanegra, Bonta, Burke, Caballero, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Low, Mathis, Mayes, McCarty, Medina, Mullin, Nazarian, Obernolte, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Voepel, Waldron, Weber, Wood, Rendon

NO VOTE RECORDED: Travis Allen, Bloom, Brough, Calderon, Cunningham, Friedman, Gallagher, Limón, Maienschein, Melendez, Muratsuchi, Patterson, Steinorth, Thurmond, Ting

Prepared by:

8/30/17 17:36:52

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 213 (Gonzalez Fletcher) - Claims against the state

This bill does not meet 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:

AB 213, an urgency measure, would appropriate $5.68 million from the General Fund to the Department of Justice (DOJ) for the payment of three specified claims against the state. Any funds appropriated in excess of the amounts required for payment of the claims would revert to the General Fund.

Fiscal Impact:

• One-time General Fund appropriation of $4.4 million in 2017-18 to DOJ to pay the settlement in the consolidated cases of Donna Fiery, et. al. v. California Department of Fish and Wildlife, and Tolowa Nation, et. al. v. California Department of Fish and Wildlife.
  
• One-time General Fund appropriation of $1.28 million in 2017-18 to DOJ to pay a settlement for the following related matters:
  
  • $766,043.84 ($750,000, plus interest) for North Coast Rivers Alliance v. Kawamura.
  • $513,956.16 ($500,000, plus interest) for Our Children’s Earth Foundation v. California Department of Food and Agriculture.

Background:

This bill is one of several annual bills carried by the chairs of the Appropriations Committees 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 (DOJ). They are binding state obligations.

Proposed Law:

AB 213 would appropriate General Fund revenues to DOJ to pay the following settlements:

1. Donna Fiery, et. al. v. California Department of Fish and Wildlife, (Sacramento County Superior Court Case No. 34-2011-00095243), consolidated with Tolowa Nation, et. al. v. California Department of Fish and Wildlife (Sacramento County Superior Court Case No. 34-2012-00117161).
   $4.4 million settlement, payable from the General Fund.

In 1963, the Pacific Shores Subdivision was approved and recorded with 1,535 lots on 1,486 acres in Del Norte County. While a 26-mile road system and drainage and flood control improvements were constructed within the subdivision, the lots went undeveloped. In 1979, the Department of Fish and Game purchased 2,500 acres in the area and established the Lake Earl Wildlife Area. Beginning in the 1980s, the state instituted eminent domain proceedings to acquire land within the subdivision, but abandoned that endeavor because property values were too high. Lake Earl is a coastal lagoon directly adjacent to the subdivision that naturally inundates the area every year unless it is artificially drained into the ocean. In the 1980s, the Department and other state entities approved a management plan for Lake Earl that altered historical breaching practices and allowed for managing the land at a higher level for wetland and habitat. The flooding blocks access to many of the lots in Pacific Shores.

Plaintiffs in the above noted cases are over 100 landowners who own nearly 160 lots in the Pacific Shores Subdivision. In the lawsuits, the plaintiffs allege that the Department is liable for damages for inverse condemnation by causing flooding, blocking access, and increasing wetlands on their properties, which constitutes a physical taking. Plaintiffs allege that the Department caused those damages by increasing the level at which the sandbar separating Lake Earl from the ocean could be breached from 4 feet above sea level to 8 feet above sea level.

The Fiery case was filed on January 18, 2011, and the Tolowa case was filed on January 17, 2012. On November 9, 2012, the Sacramento Superior Court granted a motion to consolidate the two cases into a single action. The complaint was ultimately limited to one cause of action for a physical taking, and while the parties disputed whether the Department is liable for damages for a physical taking, they agreed to settle the dispute short of a trial on its merits, and entered into a written agreement at a mandatory settlement conference on July 26, 2016.

Effective July 24, 2017, the parties entered into a settlement agreement that supersedes the previous written agreement. The settlement agreement requires the Department to pay the plaintiffs one lump sum of $4.4 million, including all costs and attorney’s fees, contingent upon action by the Legislature to approve the payment. No interest will accrue on this amount. In return, the plaintiffs will convey to the Department fee title to 158 parcels of real property at issue.

1. The related matters of North Coast Rivers Alliance v. Kawamura (Sacramento County Superior Court Case No. 34-2010-80000518) and Our Children’s Earth Foundation v. California Department of Food and Agriculture (Sacramento County Superior Court Case No. 34-2010-80000638).
   $1.28 million settlement, payable from the General Fund

These two cases challenged, under the California Environmental Quality Act, the California Department of Food and Agriculture’s (CDFA’s) approval of a program in March of 2010 to control the light brown apple moth, and the certification of the environmental impact report (EIR) necessary for that approval. The cases were heard together in Sacramento County Superior Court, where the judge ruled against the petitioners on August 28, 2012.

The Court of Appeal reversed the trial court’s decision on December 2, 2015, however, after finding that the EIR did not sufficiently consider alternative solutions to the eradication program. The court required CDFA to set aside approval of the eradication program and certification of the accompanying EIR. In addition to minimal costs paid by CDFA, petitioners had claims for attorney’s fees. Initial settlement demands were for recovery of over $1.5 million in attorney’s fees in the North Coast Rivers Alliance (NCRA) case and $850,000 in the Our Children’s Earth Foundation (OCEF) case. After extensive negotiations, the petitioners settled for a reduced amount of $750,000 and $500,000 separately. These amounts were memorialized in court orders entered on March 6, 2017 and January 31, 2017, respectively.

Staff notes that the settlement amounts are subject to additional interest that begins to accrue 180 days after the settlement date. In addition to the $1,250,000 for attorney fees, the appropriation in this bill includes an additional $30,000 for interest to ensure full payments can be made. Interest in the OCEF case began to accrue in the amount of $95.89 per day, beginning on July 30, 2017, and will begin to accrue in the NCRA case in the amount of $143.84 per day, beginning on September 2, 2017. Any funds not necessary to pay the two claims will revert back to the General Fund.

Related Legislation:

SB 535 (Lara), Chap. 11/2017, appropriated approximately $32 million from the General Fund to DOJ for the payment of two specified claims against the state.

SB 1187 (Lara), Chap. 281/2016, appropriated $36.6 million from the General Fund to DOJ for the payment of two legal settlements.

AB 1693 (Gonzalez), Chap. 46/2016, appropriated $10.55 million from the General Fund to DOJ for the payment of a judgment and a settlement in two lawsuits against the state.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 213

Author:(Gonzalez Fletcher)

As Amended Ver:June 19, 2017

2/3 vote. Urgency.

SUMMARY: This urgency bill appropriates $1.28 million from the General Fund to the Attorney General (AG) for the payment to settle two judgements against the state. Any funds appropriated in excess of the amounts required for payment of the claims would revert to the General Fund.

FISCAL EFFECT:

One-time General Fund (GF) appropriation of $1.28 million to the AG to pay the judgment in for the following two claims, as follows:

1. North Coast Rivers Alliance v. Kawamura – $766,043.84, and
2. Our Children's Earth Foundation – $513,956.16.

COMMENTS:

1. Background. 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 the Department of Justice (DOJ) and the Department of Finance (DOF). This settlement for two claims was entered into lawfully by the state upon advice of counsel (DOJ). The settlement is a binding state obligation.
2. Purpose. This bill is necessary to pay Attorney's fees for North Coast Rivers Alliance v. Kawamura, Superior Court of California, County of Sacramento, Case No. 34-2010-80000518, and Our Children's Earth Foundation v. California Department of Food and Agriculture, Superior Court of California, County of Sacramento, Case No. 34-2010-80000638.

The two cases challenged, under the California Environmental Quality Act, the California Department of Food and Agriculture's approval of a program to control the light brown apple moth, and the certification of the environmental impact report necessary for that approval. The cases were heard together in Sacramento County where the judge ruled against the petitioners on August 28, 2012.

However, on appeal, the Third Appellate District reversed the trial court's decision on December 2015, ruling in favor of the petitioners. The petitioners submitted claims for attorney fees. After extensive negotiations, the petitioners settled $750,000 for North Coast Rivers Alliance and $500,000 for Our Children's Earth Foundation, which were memorialized in court orders entered on March 6, 2017 and January 31, 2017, respectively. Per current law, these payments are subject to interest 180 days after these dates.

In addition to the $1.25 million for attorney fees, the appropriation included $30,000 for interest to ensure full payments can be made. Any funds not necessary to pay the two claims will revert back to the General Fund.

Analysis Prepared by: Pedro Reyes / APPR. / (916) 319-2081 FN: 0001050

Date of Hearing: June 28, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 213

Author:(Gonzalez Fletcher) – As Amended June 19, 2017Ver:June 19, 2017

Urgency: Yes State Mandated Local Program: No Reimbursable: No

SUMMARY:

This urgency bill appropriates $1,280,000 from the General Fund to the Attorney General (AG) for the payment to settle two judgements against the state. Any funds appropriated in excess of the amounts required for payment of the claims would revert to the General Fund.

FISCAL EFFECT:

One-time GF appropriation of $1.28 million to the AG to pay the judgment in for the following two claims, as follows:

1. North Coast Rivers Alliance v. Kawamura - $766,043.84, and
2. Our Children’s Earth Foundation - $513,956.16.

COMMENTS:

1. Background. 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). This settlement for two claims was entered into lawfully by the state upon advice of counsel (DOJ). The settlement is a binding state obligation.
2. Purpose. This bill is necessary to pay Attorney’s fees for North Coast Rivers Alliance v. Kawamura, Superior Court of California, County of Sacramento, Case No. 34-2010-80000518, and Our Children’s Earth Foundation v. California Department of Food and Agriculture, Superior Court of California, County of Sacramento, Case No. 34-2010-80000638.

The two cases challenged, under the California Environmental Quality Act, the California Department of Food and Agriculture’s approval of a program to control the light brown apple moth, and the certification of the environmental impact report necessary for that approval. The cases were heard together in Sacramento County where the judge ruled against the petitioners on August 28, 2012.

However, on appeal, the Third Appellate District reversed the trial court’s decision on December 2015, ruling in favor of the petitioners. The petitioners submitted claims for attorney fees. After extensive negotiations, the petitioners settled $750,000 for North Coast Rivers Alliance and $500,000 for Our Children’s Earth Foundation, which were memorialized in court orders entered on March 6, 2017 and January 31, 2017, respectively. Per current law, these payments are subject to interest 180 days after these dates.

In addition to the $1,250,000 for attorney fees, the appropriation included $30,000 for interest to ensure full payments can be made. Any funds not necessary to pay the two claims will revert back to the General Fund.

Analysis Prepared by: Pedro Reyes / APPR. / (916) 319-2081