Assembly Hosts Budget Hearing on Liability Law that Threatens Counties’ Solvency 

California Assembly members are learning about the pitfalls of a state law that threatens to plunge counties and school districts into bankruptcy. 

The Assembly Budget Subcommittee No. 7 on Accountability and Oversight convened an informational hearing Wednesday to discuss the impacts of Assembly Bill 218 (Gonzalez, 2019). The law revived the statute of limitations for child sexual assault claims for a three-year period and adjusted other laws regarding statutes of limitations.  

As we have previously reported, the bill has led to significant fiscal impacts for counties and other local governments, as Los Angeles County alone is poised to pay $4 billion in settlement costs and school districts have reported $2 to $3 billion in liability due to the law.  

Los Angeles County CEO Fesia Davenport testified about the devastating impacts to the county as a result of thousands of claims dating as far back as 1959. 

“We know that victims deserve accountability, they deserve compassion, and they deserve justice,” Davenport told committee members. “My view is simple: Delivering justice to victims should not come at the cost of the safety net that we are entrusted to maintain.” 

The committee explored the difficulties public agencies have faced as a result of an increase in claims stemming from the passage of AB 218. In addition to Davenport, the hearing featured testimony from the Financial Crisis and Management Assistance Team (FCMAT) who presented their findings from a report they prepared regarding the impacts of AB 218 on school districts.

Although there were no meaningful solutions proposed during the hearing, there was clear recognition from the committee of the looming fiscal solvency concerns that will arise should settlements continue in counties across the state.  

Against this backdrop, there are a few bills moving in response to the issue, including Senate Bill 413 (Allen), which will expedite cases by allowing both parties access to applicable juvenile records, and SB 577 (Laird) which will soon be amended to include changes to laws on payments of settlements and judgments, among other policy changes.  

For more information, contact Eric Lawyer.