Mr. Chairman, I offer an amendment. Mr. Chairman, I yield myself 2\1/2\ minutes. (Ms. LOFGREN asked and was given permission to revise and extend her remarks.) Mr. Chairman, the question is not whether there have been problems with…
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself 2\1/2\ minutes.
(Ms. LOFGREN asked and was given permission to revise and extend her remarks.)
Mr. Chairman, the question is not whether there have been problems with coupon-award cases; there have been. The question is whether this bill is the remedy for those problems. I have two concerns about the bill. One, it goes too far; and secondly, I do not see how the bill really addresses and solves the coupon settlement problem.
But what is really offensive to me is the scorched-earth approach of the bill does not just stop at class actions, it also targets California's prosecutors.
California has strong consumer protection, section 17200 of the Business and Professions Code, and it provides that not just AGs, but district attorneys, can sue in the public interest. District attorneys are not bringing abusive class actions to collect attorneys' fees; they are trying to protect their constituents.
For example, in People v. National Travel, two California DAs shut down an unscrupulous Florida travel agency. In People v. Providian Bank, the San Francisco district attorney stopped predatory credit card practices and recovered $300 million for California consumers. In People v. Rite-Aid, DAs stopped the sale of expired baby formula. In People v. Cook Brothers, DAs stopped an Illinois company from selling illegal weapons through a mail-order catalog. These are a few examples of how local DAs use consumer protection actions to safeguard Californians. Their ability to bring these cases in State court would be eliminated under this bill.
Put simply, if my amendment is not passed, this will have a chilling effect on local DAs, and that is why it is opposed by the California District Attorneys Association. I want to read from a letter I received from the California District Attorneys Association. They say, As currently written, H.R. 1115 would severely limit our ability to protect the public. Under the definition of class action, our consumer protection cases would be eligible for removal.
They wrote, That if these offenders remove our cases to Federal court, the cost of prosecution and inconvenience to the victims will make pursuit of many such cases a practical impossibility.
So the question is not whether there are problems with class actions, but whether this bill is the remedy. I say it is not.
California District
Attorneys Association,
Sacramento, CA, June 11, 2003.
Re HR 1115, oppose unless amended.
Hon. Zoe Lofgren,
House of Representatives, Cannon House Office Building,
Washington, DC.
Dear Representative Lofgren: The California District
Attorneys Association (CDAA) has taken an Oppose Unless
Amended position on HR 1115 (Goodlatte), the Class Action
Fairness Act of 2003.
As you may know, District Attorneys in California and many
other states are charged with protecting the public from
unfair, unlawful, and predatory practices used by
unscrupulous businesses. In California, our Business and
Professions Code Sec. 17200 allows District Attorneys to
bring civil actions against such businesses in the name of
the People of the State of California, and thereby seek civil
penalties, restitution, and injunctions on the People's
behalf. This law has been successfully used by California's
District Attorneys to protect the public from false
advertising, predatory lending, fake cures for cancer, and
other shameful scams perpetrated by out-of-state businesses.
As currently written, HR 1115 would severely limit our
ability to protect the public from these wrongs. Under the
definition of class action currently used by HR 1115, our
consumer protection cases would be eligible for removal to
Federal court. If these offenders remove our cases to Federal
court, the cost of prosecution and the inconvenience to the
victims will make pursuit of many such cases a practical
impossibility.
We appreciate that HR 1115 currently exempts actions
brought by Attorneys General from its provisions. For this
reason, we are hopeful that the supporters of HR 1115 did not
intend to extend its provisions to actions brought by
District Attorneys and other public prosecutors. Therefore,
we ask that the author considers amending page 15, line 20 to
read ``. . . attorney general, state or local district
attorney, other governmental prosecutor, or group thereof . .
.'' We would also ask that the following text be inserted at
page 13, between lines 6 and 7; ``(D) the action is brought
by a State attorney general, state or local district
attorney, other governmental prosecutor, or group thereof.''
With these amendments, HR 1115 would preserve the ability of
California's District Attorneys, and those of many other
states, to protect the public from unlawful, unfair, and
predatory practices disguised as legitimate businesses.
We also appreciate the recent efforts of Senators Feinstein
and Specter to address our identical concerns with S 274
(Grassley). We look forward to continuing to work with the
Senators, and any other interested party, to resolve this
issue. Please feel free to contact us if we can be of any
further assistance.
Very truly your,
Gilbert G. Otero,
President.
District Attorney, Imperial County.
Mr. Chairman, I yield 2 minutes to the gentlewoman from California (Ms. Linda T. Sanchez), my colleague on the Committee on the Judiciary and a cosponsor of this amendment.
Mr. Chairman, I yield myself the balance of my time.
I wanted to quote from a letter I received from Senator Feinstein. This amendment is identical to what Senator Feinstein wrought in the Senate, and she has pointed out that she will not support this bill unless this amendment is adopted and that is to protect section 17200 of California's Business and Professions Code in its entirety. There is no rationale, no reason, there have been no problems with section 17200; and I would urge all members of
the House, and especially the Californians, to stand up for federalism and protect California State law.
Mr. Chairman, I demand a recorded vote.