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. (a) There is hereby created the AIDS Vaccine Victims
Compensation Fund.
(b) For the purposes of this section, the following definitions
apply:
(1) "AIDS vaccine" means a vaccine that (A) has been developed by
any manufacturer and (B) is approved by the FDA or the department
pursuant to Part 5 (commencing with Section 109875) of Division 104
as a safe and efficacious vaccine for the purpose of immunizing
against AIDS.
(2) "Board" means the California Victim Compensation and
Government Claims Board.
(3) "Damages for personal injuries" means the direct medical costs
for the care and treatment of injuries to any person, including a
person entitled to recover damages under Section 377 of the Code of
Civil Procedure, proximately caused by an AIDS vaccine, the loss of
earnings caused by the injuries, and the amount necessary, but not to
exceed five hundred fifty thousand dollars ($550,000), to compensate
for noneconomic losses, including pain and suffering caused by the
injuries.
(4) "Fund" means the AIDS Vaccine Victims Compensation Fund.
(c) The board shall pay from the fund, contingent entirely upon
the availability of moneys as provided in subdivision (o), damages
for personal injuries caused by an AIDS vaccine that is sold in or
delivered in California, and administered or dispersed in California
to the injured person except that no payment shall be made for any of
the following:
(1) Damages for personal injuries caused by the vaccine to the
extent that they are attributable to the comparative negligence of
the person making the claim.
(2) Damages for personal injuries in any instance when the
manufacturer has been found to be liable for the injuries in a court
of law.
(3) Damages for personal injuries due to a vaccination
administered during a clinical trial.
(d) An application for payment of damages for personal injuries
shall be made on a form prescribed by the board within one year of
the date that the injury and its cause are discovered. This
application may be required to be verified. Upon receipt, the board
may require the submission of additional information necessary to
evaluate the claim.
(e) (1) Within 45 days of the receipt of the application and the
submission of any additional information, the board shall do either
of the following:
(A) Allow the claim in whole or part.
(B) Disallow the claim.
(2) In those instances of unusual hardship to the victim, the
board may grant an emergency award to the injured person to cover
immediate needs upon agreement by the injured person to repay in the
event of a final determination denying the claim.
(3) If the claim is denied in whole or part, the victim may apply
within 60 days of denial for a hearing. The hearing shall be held
within 60 days of the request for a hearing unless the injured person
requests a later hearing.
(f) At the hearing, the injured person may be represented by
counsel and may present relevant evidence as defined in subdivision
(c) of Section 11513 of the Government Code. The board may consider
additional evidence presented by its staff. If the injured person
declines to appear at the hearing, the board may act solely upon the
application, the staff report, and other evidence that appears on the
record.
(g) The board may delegate the hearing of applications to hearing
examiners.
(h) The decision of the board shall be in writing and shall be
delivered or mailed to the injured person within 30 days of the
hearing. Upon the request by the applicant within 30 days of delivery
or mailing, the board may reconsider its decision.
(i) Judicial review of a decision shall be under Section 1094.5 of
the Code of Civil Procedure, and the court shall exercise its
independent judgment. A petition for review shall be filed as
follows:
(1) If no request for reconsideration is made, within 30 days of
personal delivery or mailing of the board's decision on the
application.
(2) If a timely request for reconsideration is filed and rejected
by the board, within 30 days of personal delivery or mailing of the
notice of rejection.
(3) If a timely request for reconsideration is filed and granted
by the board, or reconsideration is ordered by the board, within 30
days of personal delivery or mailing of the final decision on the
reconsidered application.
(j) The board shall adopt regulations to implement this section,
including those governing discovery.
(k) The fund is subrogated to any right or claim that any injured
person may have who receives compensation pursuant to this section,
or any right or claim that the person's personal representative,
legal guardian, estate, or survivor may have, against any third party
who is liable for the personal injuries caused by the AIDS vaccine,
and the fund shall be entitled to indemnity from that third party.
The fund shall also be entitled to a lien on the judgment, award, or
settlement in the amount of any payments made to the injured person.
(l) In the event that the injured person, or his or her guardian,
personal representative, estate, or survivors, or any of them, bring
an action for damages against the person or persons liable for the
injury or death giving rise to an award by the board under this
section, notice of institution of legal proceedings and notice of any
settlement shall be given to the board in Sacramento except in cases
where the board specifies that notice shall be given to the Attorney
General. All notices shall be given by the attorney employed to
bring the action for damages or by the injured person, or his or her
guardian, personal representative, estate, or survivors, if no
attorney is employed.
(m) This section is not intended to affect the right of any
individual to pursue claims against the fund and lawsuits against
manufacturers concurrently, except that the fund shall be entitled to
a lien on the judgment, award, or settlement in the amount of any
payments made to the injured party by the fund.
(n) There is hereby created the AIDS Vaccine Injury Compensation
Policy Review Task Force consisting of 14 members. The task force
shall be composed of 10 members appointed by the Governor, of which
two shall be from a list provided by the California Trial Lawyers
Association, one from the department, the Director of Finance, one
unspecified member, and one attorney with experience and expertise in
products liability and negligence defense work, two representing
recognized groups that represent victims of vaccine induced injuries
or AIDS victims, or both, and two representing manufacturers actively
engaged in developing an AIDS vaccine. In addition four Members of
the Legislature or their designees shall be appointed to the task
force, two of which shall be appointed by the Speaker of the Assembly
and two of which shall be appointed by the Senate Committee on
Rules. The chairperson of the task force shall be appointed by the
Governor from the membership of the task force. The task force shall
study and make recommendations on the legislative implementation of
the fund created by subdivision (a). These recommendations shall at
least address the following issues:
(1) The process by which victims are to be compensated through the
fund.
(2) The procedures by which the fund will operate and the
governance of the fund.
(3) The method by which manufacturers are to pay into the fund and
the amount of that payment.
(4) The procedural relationship between a potential victim's claim
through the fund and a court claim made against the manufacturer.
(5) Other issues deemed appropriate by the task force.
The task force shall make its recommendations to the Legislature
on or before June 30, 1987.
(o) The fund shall be funded wholly by a surcharge on the sale of
an AIDS vaccine, that has been approved by the FDA, or by the
department pursuant to Part 5 (commencing with Section 109875) of
Division 104, in California in an amount to be determined by the
department. The surcharge shall be levied on the sale of each unit of
the vaccine sold or delivered, administered, or dispensed in
California. The appropriate amount of the surcharge shall be studied
by the AIDS Vaccine Injury Compensation Policy Review Task Force,
which shall recommend the appropriate amount as part of its report,
with the amount of the surcharge not to exceed ten dollars ($10) per
unit of vaccine. Expenditures of the task force shall be made at the
discretion of the Director of Finance or the director's designee.
(p) For purposes of this section, claims against the fund are
contingent upon the existing resources of the fund as provided in
subdivision (o), and in no case shall the state be liable for any
claims in excess of the resources in the fund.