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<ns0:Id>20250AB__190898AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-12</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-16</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member McKinnor</ns0:AuthorText>
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<ns0:Name>McKinnor</ns0:Name>
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<ns0:Title> An act to amend Section 864 of the Code of Civil Procedure, relating to civil actions. </ns0:Title>
<ns0:RelatingClause>civil actions</ns0:RelatingClause>
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<ns0:Subject>Civil actions: victims’ compensation funding: validating proceedings.</ns0:Subject>
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<html:p>Under existing law, bonds, warrants, contracts, obligations, and evidences of indebtedness of a public agency, for the purpose of validating proceedings, are deemed to be in existence upon their authorization, as specified.</html:p>
<html:p>This bill would provide that the obligations described above include a victims’ compensation fund, established to address payments to settle or pay awards to victims of childhood sexual assault, as specified, which is authorized as of the date the establishment of such a fund via adoption of a resolution or ordinance by a county board of supervisors. The bill would provide that, for purposes of determining the validity of refunding bonds to refund a tort action judgment entered against a public agency, as specified, indebtedness is deemed to be in existence on the date of adoption by the governing body of the
public agency of a resolution ordinance, as specified. The bill would provide that whether a tort action judgment or settlement or a victims’ compensation fund is deemed to be in existence is not contingent on the timing of the commencement of a tort action, the court’s issuance of a judgment, the entry into a settlement, or the victims’ compensation fund’s claim period.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 864 of the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
is amended to read:
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<ns0:Num>864.</ns0:Num>
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(a)
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(1)
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For purposes of this chapter, bonds, warrants, contracts, obligations, and evidences of indebtedness shall be deemed to be in existence upon their authorization. Bonds and warrants shall be deemed authorized as of the date of adoption by the governing body of the public agency of a resolution or ordinance authorizing their issuance, and contracts shall be deemed authorized as of the date of adoption by the governing body of the public agency of a resolution or ordinance approving the contract and authorizing its execution.
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(2)
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For purposes of this chapter, an obligation for purposes
of subdivision (a) includes a victims’ compensation fund. For purposes of this chapter, a “victims’ compensation fund” is a fund established to address payments to settle or pay awards to victims of childhood sexual assault, including to compensate victims pursuant to the operation of the fund. The obligation shall be deemed authorized as of the date of adoption by a county board of supervisors of a resolution or ordinance establishing the fund.
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(b)
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(1)
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(A)
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A tort action judgment or settlement agreement, or victims’compensation fund and the related bonds, bond related documents, credit reimbursement, or other agreement shall be deemed to be in existence as of the date of adoption by a public agency’s governing body of a resolution or ordinance pursuant to subdivision (a), without regard to any of the following:
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(i)
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The date on which a party files a tort action or the court enters a final judgment
therein.
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(ii)
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The date on which the public agency enters into a settlement agreement.
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(iii)
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Whether the effectiveness of a settlement agreement entered into by the public agency is contingent on any condition precedent, including, but not limited to, a determination on the validity of bonds pursuant to this chapter.
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(iv)
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Whether the victims’compensation fund claim period has expired, or whether the fund has issued all compensation or made all other applicable claim determinations.
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(B)
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Subparagraph (A) applies when determining either of the following:
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(i)
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The validity pursuant to this chapter of any issuance or proposed issuance of refunding bonds pursuant to Articles 10 (commencing with Section 53570) and 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, or any other law, to finance or refinance one or more of
a tort action judgment or settlement, or victims’ compensation fund.
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(ii)
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The validity of any proceeding taken or proposed to be taken in a resolution or ordinance adopted by a public agency’s governing body for the authorization, issuance, sale, and delivery of a bond, including any contracts or agreements providing for the issuance, security or payment of a bond, or the use of the proceeds of a bond, and any credit reimbursement or other agreement entered into or to be entered into in connection therewith.
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(C)
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Notwithstanding subparagraph (A), bond proceeds validated pursuant to this chapter shall not be used to fund a judgment or settlement agreement before the court orders the judgment against the public agency or the public agency enters into the settlement agreement and it is effective, as applicable.
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(2)
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This subdivision applies to actions brought pursuant to this chapter to determine the validity of any issuance or
proposed issuance of bonds to finance or refinance any of the following:
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(A)
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One or more tort judgments that have not yet been entered against the public agency by the applicable court.
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(B)
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One or more tort settlement agreements that have not yet been entered into by the public agency.
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(C)
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One or more tort settlement agreements entered into by the public agency whose effectiveness is contingent on any condition precedent.
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(D)
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A victims’compensation fund established by a county.
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(3)
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For purposes of this subdivision, “tort action judgment or settlement” includes both of the following:
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(A)
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A judgment entered against a public agency by one or more state or federal courts.
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(B)
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A tort action settlement agreement entered into by a public agency.
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