LEGISLATIVE SUBCOMMITTEE RECOMMENDATION: Support

SUMMARY: This bill would require any settlement, compromise, covenant, release, waiver of liability, or similar agreement, to be written and orally transmitted in both English and the native language of the person entering into the agreement, prior to execution, if that person is not represented by counsel. If the waiver is not in the language in which the injured party is fluent, the waiver may be rescinded by the "aggrieved" party.

SUMMARY OF SUPPORTING ARGUMENTS FOR RECOMMENDATION:

This bill was introduced by Senator Soto in response to the questionable use of liability waivers by the Union Pacific Railroad after a train derailment in Rialto Hills. This bill would, among other things, require railroads to negotiate waivers of liability in good faith with non-English speaking residents who have suffered damage or injuries from a rail accident.

DIVISION ANALYSIS:

On the evening of April 4, 2005, thirteen cars of a Union Pacific Railroad Company (UP) train derailed near the Foothills Boulevard overpass in Rialto Hills, San Bernardino County. Nine of the thirteen cars were tank cars containing hazardous materials, and eight of those were on their sides. During a transloading operation, 200 gallons of chlorine gas were released, resulting in the evacuation of more than 100 residents of a nearby trailer park. Following the accident, UP approached the evacuated homeowners and/or tenants in the community with waiver agreements written in English only. Although many of the residents contacted by UP were fluent only in Spanish, UP provided no translation assistance, and railroad claims agents coerced some residents into signing waiver agreements they did not understand.

At a community meeting held on June 24, 2005 in the San Bernardino City Council Chambers, the Rialto neighbors criticized the railroad for obtaining signatures on liability waivers written in English but signed by residents who spoke only Spanish. At the behest of State Senator Nell Soto, who presided over the meeting, the railroad representatives in attendance agreed to nullify any liability waivers signed by non-English speaking victims of the accident.

STATUS:

SB 1311 is set for hearing in the Senate Judiciary Committee on May 2, 2006.

SUPPORT/OPPOSITION

Support:

None on file

Opposition:

None on file

LEGISLATIVE STAFF CONTACT

Delaney Hunter dlh@cpuc.ca.gov

Director-OGA (916) 327-7788

George L. Elsmore gle@cpuc.ca.gov

Staff - Rail Ops Safety Branch (415) 703-2665

Lionel B. Wilson lbw@cpuc.ca.gov

Asst. Gen. Counsel - Legal Division (415) 703-1642

Patrick S. Berdge psb@cpuc.ca.gov

Staff Counsel - Legal Division (415) 703-1519

Date: May 22, 2006

BILL LANGUAGE:

BILL NUMBER: SB 1311 AMENDED

BILL TEXT

AMENDED IN SENATE MARCH 21, 2006

INTRODUCED BY Senator Soto

FEBRUARY 16, 2006

An act to add Article 11 (commencing with Section 7740)

to Chapter 1 of Division 4 of the Public Utilities Code, relating to

railroads. Section 1726 to the Civil Code, relating to

liability waivers.

LEGISLATIVE COUNSEL'S DIGEST

SB 1311, as amended, Soto Railroads: liability

Liability waivers.

Existing law provides that everyone is responsible for the result

of willful acts and for injury to another occasioned by his or her

want of ordinary care or skill in the management of his or her person

or property, as specified.

This bill would require any person, firm, or corporation

operating a railroad in this state that elects, in the event of a

derailment, to offer payment to an affected party for his or her

waiver of liability regarding any applicable cause of action, to

provide a written translation of the waiver agreement, prior to the

execution thereof, in a language in which the person signing the

waiver is fluent settlement, compromise, covenant,

release, waiver of liability, or similar agreement, to be written and

orally transmitted in both English and the native

language of the person entering into the agreement, prior to

execution, if that person is not represented by counsel . The

bill would provide for the waiver that

agreement to be rescinded upon the failure to comply with this

requirement.

Vote: majority. Appropriation: no. Fiscal committee: no.

State-mandated local program: no.

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. Section 1726 is added to the

Civil Code , to read:

1726. (a) If a person who is entering any settlement, compromise,

covenant, release, waiver of liability, or similar agreement, is not

represented by counsel, that agreement, prior to execution, shall be

written and orally transmitted in both English and the native

language of the person entering into the agreement.

(b) Upon a failure to comply with subdivision (a), the aggrieved

person may rescind the settlement, compromise, covenant, release,

waiver of liability, or similar agreement.

SECTION 1. Article 11 (commencing with Section

7740) is added to Chapter 1 of Division 4 of the Public Utilities

Code, to read:

Article 11. Waiver of Liability for Railroad Accidents

7740. (a) Any person, firm, or corporation operating a railroad

in this state that elects, in the event of a derailment, to offer

payment to an affected party for his or her waiver of liability

regarding any applicable cause of action, shall provide a written

translation of the waiver agreement, prior to the execution thereof,

in a language in which the person signing the waiver is fluent.

(b) Upon a failure to comply with subdivision (a), the person

aggrieved may rescind the waiver agreement.