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<ns0:Description>
<ns0:Id>20250SB__057796AMD</ns0:Id>
<ns0:VersionNum>96</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-20</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-26</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-04-28</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2025-07-09</ns0:ActionDate>
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<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>577</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senators Laird and Allen</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Laird</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Allen</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to amend Sections 340.1, 340.11, 864, and 1038 of, and to add Sections 340.12 and 341.95 to, the Code of Civil Procedure, to amend Sections 41320, 41329.52, and 41329.53 of, and to add Chapter 5 (commencing with Section 14560) to Part 9 of Division 1 of Title 1 of, the Education Code, relating to state government.</ns0:Title>
<ns0:RelatingClause>state government</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>State Government.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>
(1)
<html:span class="EnSpace"/>
Existing law requires that specified actions for recovery of damages suffered as a result of childhood sexual assault that occurred before January 1, 2024, be commenced within 22 years of the date the plaintiff attains the age of majority or within 5 years of the date the plaintiff discovers or reasonably should have discovered that psychological injury or illness occurring after the age of majority was caused by the sexual assault, whichever period expires later. Existing
law provides that there is no time limit for commencement of such actions for recovery of damages suffered as a result of childhood sexual assault which occurred on or after January 1, 2024. Actions subject to these time limits include actions for liability against any person or entity who owed a duty of care to the plaintiff and an action for liability against any person or entity for an intentional act that was the legal cause of the childhood sexual assault. Existing law provides that in actions against entities for violation of a duty of care, the plaintiff must establish that the entity acted wrongfully or negligently.
</html:p>
<html:p>This bill would shorten the amount of time a victim of childhood sexual assault that occurred before January 1,
2024, would have to file a specified action to 22 years from the date the plaintiff attains the age of majority or within 3 years of the date the plaintiff discovers or reasonably should have discovered that psychological injury or illness occurring after the age of majority was caused by the sexual assault, whichever period expires later. This bill would, for actions filed on or after April 15, 2025, against a public entity, or one of its employees or agents, by a plaintiff who is 40 years of age or older, increase the standard of liability to gross negligence. For all cases against a public entity filed on or after April 15, 2025, this bill would provide factors that courts must consider when reviewing motions for remittitur and would authorize a court to structure judgments
against public entities so that they could be paid over time.</html:p>
<html:p>This bill would require all cases filed by victims of childhood sexual assault that occurred at the MacLaren Children’s Center or any juvenile probation facility or detention center operated by the Los Angeles County Probation Department that was closed before or on January 1, 2020, be filed on or before January 1, 2026. This bill specifies that the procedural requirements that typically apply to such causes of action, including the requirement that plaintiffs who file their claims at the age of 40 or greater file a certificate of merit, as specified, also apply to these specific cases. This bill would require that in these cases, certificates of merit along with additional information shall be provided to a court-appointed special master. This bill would prohibit a special master from distributing funds pursuant to a settlement agreement until all of those requirements have been satisfied.</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For actions for recovery of damages suffered as a result of childhood sexual assault that occurred before January 1, 2024, existing law requires a plaintiff 40 years of age or older at the time the action is filed to file certificates of merit. Existing law provides that the failure to file certificates in accordance with these provisions is grounds for a demurrer.
</html:p>
<html:p>This bill would instead require the certificates to be filed concurrently with the complaint and would prohibit a court clerk from accepting the filing of a complaint that lacks the certificates, except as specified.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Existing law authorizes a person who is sexually assaulted and who proves it was as the result of a cover up, as defined, to recover up to treble damages against the defendant who is found to have covered up the sexual assault, unless prohibited by another
law.
</html:p>
<html:p>This bill would prohibit such treble damages from being imposed against a defendant that is a public entity.</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Under existing law, bonds, warrants, contracts, obligations, and evidences of indebtedness, 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, 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 or ordinance, as specified.</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Existing law permits a defendant or a cross-defendant in a civil proceeding under the Government Claims Act, or in any civil action for indemnity or contribution, to seek from the court, at the time of the granting of a
motion for summary judgment, directed verdict, motion for judgment in a nonjury trial, or nonsuit dismissing the moving party other than the plaintiff, petitioner, cross-complainant, or intervenor, a determination of whether the plaintiff, petitioner, cross-complainant, or intervenor brought their proceeding in good faith and with reasonable cause. If the court determines that the proceeding was not brought in good faith or with reasonable cause, existing law requires the court to decide the reasonable and necessary defense costs incurred by the party opposing the proceeding and to render judgment in favor of that party. Existing law applies these provisions only if the defendant or cross-defendant has made a motion for summary judgment, a motion for directed verdict, a motion for judgment in a nonjury trial, or nonsuit.
</html:p>
<html:p>This bill would expand the above provision to apply to a demurrer brought by a defendant or cross-defendant.
The bill would also prohibit an award of defense costs under these provisions against an attorney from being passed on to a client as a litigation cost.</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Existing law, the California School Finance Authority Act, authorizes a participating party, as defined, in connection with securing financing or refinancing of a project, or working capital, as defined, to elect to provide for funding payments of bonds issued by the California School Finance Authority and related obligations by electing to participate in a state or local intercept, or both, by an action of its governing board. Existing law requires the Controller, the county
treasurer, or other appropriate county fiscal officer, as applicable, upon receipt of written notice provided by the participating party, to make an apportionment or revenue transfer from specified moneys designated for apportionment to the participating party.
</html:p>
<html:p>This bill would provide a similar authorization to a participating party, as defined, in connection with securing financing, refinancing, or refunding of a public debt obligation, as defined, to elect to provide for funding payments of the public debt obligation by electing to participate in a state or local intercept, or both, by an action of its governing board. The bill would require the Controller, the county treasurer, or other appropriate county fiscal officer, as applicable, upon receipt of written notice provided by the participating party, to make an apportionment or revenue transfer from specified moneys designated for apportionment to the participating party, as provided. The bill would authorize,
and not require, a county to participate in local intercepts under these provisions. The bill would require a participating party to certify the payment schedule, as specified. By expanding the crime of perjury, this bill would impose a state-mandated local program.</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Existing law authorizes the governing board of a school district that determines during a fiscal year that its revenues are less than the amount necessary to meet its current year expenditure obligations to request an emergency apportionment through the Superintendent of Public Instruction, subject to specified requirements. Existing law prescribes the financing conditions on emergency apportionments,
including a requirement for a school district to develop a schedule to repay the emergency loan, which the county superintendent of schools is required to review, comment on, and submit to the Superintendent for approval.
</html:p>
<html:p>Existing law authorizes emergency apportionments to be provided through an interim loan from the General Fund and lease financing to be made available by the California Infrastructure and Economic Development Bank, which is authorized to issue bonds for purposes of the emergency apportionments and related costs. Existing law prohibits the term of the lease from exceeding 20 years, except as specified. Existing law authorizes, as an alternative to lease financing, emergency apportionments to be provided from the General Fund. Existing law requires the emergency apportionment to be repaid within 20 years.</html:p>
<html:p>This bill would require the school district to consult the county superintendent of schools and the
County Office Fiscal Crisis and Management Assistance Team in developing the repayment schedule and would require the county superintendent of schools to submit the repayment schedule to the Department of Finance, instead of the Superintendent, for approval. The bill would extend the maximum term of a lease or for repayment of an emergency apportionment to 30 years. The bill would require the determination of the term to be made by the Department of Finance, in consultation with the school district, the county superintendent of schools, the Superintendent, and the County Office Fiscal Crisis and Management Assistance Team and would require the determination to take into consideration specified factors. To the extent the bill imposes new duties on county superintendents of schools, the bill would impose a state-mandated local program.</html:p>
<html:p>The
California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.</html:p>
<html:p>This bill would provide that, with regard to certain mandates, no reimbursement is required by this act for a specified reason.</html:p>
<html:p>With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_74420754-AB20-4BA7-9ECE-DAA31C4AE566">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 340.1 of the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_6BE6856B-82B7-4AAF-A71F-017769BA03B5">
<ns0:Num>340.1.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
There is no time limit for the commencement of any of the following actions for recovery of damages suffered as a result of childhood sexual assault:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
An action against any person for committing an act of childhood sexual assault.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
An action for liability against any person or entity who owed a duty of care to the plaintiff, if a wrongful or negligent act by that person or entity was a legal cause of the childhood sexual assault that resulted in the injury to the plaintiff.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
An action for liability against any person or entity if an intentional
act by that person or entity was a legal cause of the childhood sexual assault that resulted in the injury to the plaintiff.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In an action described in subdivision (a), a person who is sexually assaulted and proves it was as the result of a cover up may recover up to treble damages against a defendant who is found to have covered up the sexual assault of a minor, unless prohibited by another law.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, a “cover up” is a concerted effort to hide evidence relating to childhood sexual assault.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This subdivision shall not apply to a defendant that is a public entity.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Childhood sexual assault” as used in this section includes any act committed against the plaintiff that occurred when the plaintiff was under 18 years of age and that would have been proscribed by Section 266j of the Penal Code; Section 285 of the Penal Code; paragraph (1) or (2) of subdivision (b), or of subdivision (c), of Section 286 of the Penal Code; subdivision (a) or (b) of Section 288 of the Penal Code; paragraph (1) or (2) of subdivision (b), or of subdivision (c), of Section 287 or of former Section 288a of the Penal Code; subdivision (h), (i), or (j) of Section 289 of the Penal Code; any sexual conduct as defined in paragraph (1) of subdivision (d) of Section 311.4 of the Penal Code; Section 647.6 of the Penal Code; or any prior laws of this state of similar effect at the time the act was committed. This subdivision does not
limit the availability of causes of action permitted under subdivision (a), including causes of action against persons or entities other than the alleged perpetrator of the abuse.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall not be construed to alter the otherwise applicable burden of proof, as defined in Section 115 of the Evidence Code, that a plaintiff has in a civil action subject to this section.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Every plaintiff 40 years of age or older at the time the action is filed shall file certificates of merit as specified in subdivision (f).
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Certificates of merit setting forth the facts that support the declaration shall be executed by the attorney for the plaintiff and by a licensed mental health practitioner selected by the plaintiff declaring,
respectively, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
That the attorney has reviewed the facts of the case, consulted with at least one mental health practitioner who the attorney reasonably believes is knowledgeable of the relevant facts and issues involved in the particular action, and concluded on the basis of that review and consultation that there is reasonable and meritorious cause for the filing of the action.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
That the mental health practitioner consulted is licensed to practice and practices in this state and is not a party to the action, that the practitioner is not treating and has not treated the plaintiff, and that the practitioner has interviewed the plaintiff and is knowledgeable of the relevant facts and issues involved in the particular action, and has concluded, on the basis of the practitioner’s
knowledge of the facts and issues, that in the practitioner’s professional opinion there is a reasonable basis to believe that the plaintiff had been subject to childhood sexual abuse.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
If certificates are required pursuant to subdivision (e), the attorney for the plaintiff shall execute a separate certificate of merit for each defendant named in the complaint.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
In any action subject to subdivision (e), a defendant shall not be served, and the duty to serve a defendant with process does not attach, until the court has reviewed the certificates of merit filed pursuant to subdivision (f) with respect to that defendant, and has found, in camera, based solely on those certificates of merit, that there is reasonable and meritorious cause for the filing of the action against
that defendant. At that time, the duty to serve that defendant with process shall attach.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
A violation of this section may constitute unprofessional conduct and may be the grounds for discipline against the attorney.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The failure to file certificates in accordance with this section shall be grounds for a demurrer pursuant to Section 430.10 or a motion to strike pursuant to Section 435.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
In any action subject to subdivision (e), a defendant shall be named by “Doe” designation in any pleadings or papers filed in the action until there has been a showing of corroborative fact as to the charging allegations against that defendant.
</html:p>
<html:p>
(
<html:i>l</html:i>
)
<html:span class="EnSpace"/>
At any time after
the action is filed, the plaintiff may apply to the court for permission to amend the complaint to substitute the name of the defendant or defendants for the fictitious designation, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The application shall be accompanied by a certificate of corroborative fact executed by the attorney for the plaintiff. The certificate shall declare that the attorney has discovered one or more facts corroborative of one or more of the charging allegations against a defendant or defendants, and shall set forth in clear and concise terms the nature and substance of the corroborative fact. If the corroborative fact is evidenced by the statement of a witness or the contents of a document, the certificate shall declare that the attorney has personal knowledge of the statement of the witness or of the contents of the document, and the identity and
location of the witness or document shall be included in the certificate. For purposes of this section, a fact is corroborative of an allegation if it confirms or supports the allegation. The opinion of any mental health practitioner concerning the plaintiff shall not constitute a corroborative fact for purposes of this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the application to name a defendant is made before that defendant’s appearance in the action, neither the application nor the certificate of corroborative fact by the attorney shall be served on the defendant or defendants, nor on any other party or their counsel of record.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the application to name a defendant is made after that defendant’s appearance in the action, the application shall be served on all parties and proof of service provided
to the court, but the certificate of corroborative fact by the attorney shall not be served on any party or their counsel of record.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
The court shall review the application and the certificate of corroborative fact in camera and, based solely on the certificate and any reasonable inferences to be drawn from the certificate, shall, if one or more facts corroborative of one or more of the charging allegations against a defendant has been shown, order that the complaint may be amended to substitute the name of the defendant or defendants.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
The court shall keep under seal and confidential from the public and all parties to the litigation, other than the plaintiff, any and all certificates of corroborative fact filed pursuant to subdivision (
<html:i>l</html:i>
).
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
Upon the favorable conclusion of the litigation with respect to any defendant for whom a certificate of merit was filed or for whom a certificate of merit should have been filed pursuant to this section, the court may, upon the motion of a party or upon the court’s own motion, verify compliance with this section by requiring the attorney for the plaintiff who was required by subdivision (f) to execute the certificate to reveal the name, address, and telephone number of the person or persons consulted with pursuant to subdivision (f) that were relied upon by the attorney in preparation of the certificate of merit. The name, address, and telephone number shall be disclosed to the trial judge in camera and in the absence of the moving party. If the court finds there has been a failure to comply with this section, the court may order a party,
a party’s attorney, or both, to pay any reasonable expenses, including attorney’s fees, incurred by the defendant for whom a certificate of merit should have been filed.
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
This section applies to any claim in which the childhood sexual assault occurred on and after January 1, 2024. Notwithstanding any other law, a claim for damages based on conduct described in paragraphs (1) to (3), inclusive, of subdivision (a), in which the childhood sexual assault occurred on or before December 31, 2023, may only be commenced pursuant to the applicable statute of limitations set forth in existing law as it read on December 31, 2023.
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
Notwithstanding any other law, including Chapter 1 (commencing with Section 900) of Part 3 of Division 3.6 of Title 1 of the Government Code and
Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code, a claim for damages described in paragraphs (1) through (3), inclusive, of subdivision (a), is not required to be presented to any government entity prior to the commencement of an action.
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
Any action filed pursuant to paragraph (2) or (3) of subdivision (a) which results in a dismissal without prejudice shall not be refiled if 5 years or more have passed from the original filing date of such action.
</html:p>
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<ns0:BillSection id="id_AF6ECA6A-9228-4142-A7DF-44CA843D929B">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 340.11 of the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
is amended to read:
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<ns0:Num>340.11.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding Section 340.1, in an action for recovery of damages suffered as a result of childhood sexual assault that occurred before January 1, 2024, the time for commencement of the action shall be within 22 years of the date the plaintiff attains the age of majority or within three years of the date the plaintiff discovers or reasonably should have discovered that psychological injury or illness occurring after the age of majority was caused by the sexual assault, whichever period expires later, for any of the following actions:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
An action against any person for committing an act of childhood sexual assault.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
An action for liability against any person or entity who owed a duty of care to the plaintiff, if a wrongful or negligent act by that person or entity was a legal cause of the childhood sexual assault that resulted in the injury to the plaintiff.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
An action for liability against any person or entity if an intentional act by that person or entity was a legal cause of the childhood sexual assault that resulted in the injury to the plaintiff.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1) or Section 340.1, in an action for recovery of damages suffered as a result of childhood sexual assault that occurred before January 1, 2024, involving an act that would have been proscribed by Sections 311.1 or 311.2 of the Penal Code, the time for
commencement of the action shall be within 22 years of the date the plaintiff attains the age of majority or within 10 years of the date the plaintiff discovers or reasonably should have discovered, after the age of majority, the existence of obscene matter, for any of the actions identified in subparagraphs (A) to (C), inclusive, of paragraph (1).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In an action described in subdivision (a), a person who is sexually assaulted and proves it was as the result of a cover up may recover up to treble damages against a defendant who is found to have covered up the sexual assault of a minor, unless prohibited by another law.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For purposes of this subdivision, a “cover up” is a concerted effort to hide evidence relating to childhood sexual assault.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
An action described in subparagraph (B) or (C) of paragraph (1) of subdivision (a) shall not be commenced on or after the plaintiff’s 40th birthday unless the person or entity knew or had reason to know, or was otherwise on notice, of any misconduct that creates a risk of childhood sexual assault by an employee, volunteer, representative, or agent, or the person or entity failed to take reasonable steps or to implement reasonable safeguards to avoid acts of childhood sexual assault. For purposes of this subdivision, providing or requiring counseling is not sufficient, in and of itself, to constitute a reasonable step or reasonable safeguard. Nothing in this subdivision shall be construed to constitute a substantive change in negligence law.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Childhood sexual assault”
as used in this section includes any act committed against the plaintiff that occurred when the plaintiff was under 18 years of age and that would have been proscribed by Section 266j of the Penal Code; Section 285 of the Penal Code; paragraph (1) or (2) of subdivision (b), or of subdivision (c), of Section 286 of the Penal Code; subdivision (a) or (b) of Section 288 of the Penal Code; paragraph (1) or (2) of subdivision (b), or of subdivision (c), of Section 287 or of former Section 288a of the Penal Code; subdivision (h), (i), or (j) of Section 289 of the Penal Code; subdivision (a) of Section 311.1 of the Penal Code; subdivisions (b) to (d), inclusive, of Section 311.2 of the Penal Code; any sexual conduct as defined in paragraph
(1) of subdivision (d) of Section 311.4 of the Penal Code; Section 647.6 of the Penal Code; or any prior laws of this state of similar effect at the time the act was committed. This subdivision does not limit the availability of causes of action permitted under subdivision (a), including causes of action against persons or entities other than the alleged perpetrator of the abuse.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section shall not be construed to alter the otherwise applicable burden of proof, as defined in Section 115 of the Evidence Code, that a plaintiff has in a civil action subject to this section.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Every plaintiff 40 years of age or older at the time the action is filed shall file certificates of merit as specified in subdivision (g).
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Certificates of merit shall be executed by the attorney for the plaintiff and by a licensed mental health practitioner selected by the plaintiff declaring, respectively, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
That the attorney has reviewed the facts of the case, consulted with at least one mental health practitioner who the attorney reasonably believes is knowledgeable of the relevant facts and issues involved in the particular action, and concluded on the basis of that review and consultation that there is reasonable and
meritorious cause for the filing of the action.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
That the mental health practitioner consulted is licensed to practice and practices in this state and is not a party to the action, that the practitioner is not treating and has not treated the plaintiff, and that the practitioner has interviewed the plaintiff and is knowledgeable of the relevant facts and issues involved in the particular action, and has concluded, on the basis of the practitioner’s knowledge of the facts and issues, that in the practitioner’s professional opinion there is a reasonable basis to believe that the plaintiff had been subject to childhood sexual abuse.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
That the attorney was unable to obtain the consultation required by paragraph (1) because a statute of limitations would impair
the action and that the certificates required by paragraphs (1) and (2) could not be obtained before the impairment of the action. If a certificate is executed pursuant to this paragraph, the certificates required by paragraphs (1) and (2) shall be filed within 60 days after filing the complaint.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
If certificates are required pursuant to subdivision (f), the attorney for the plaintiff shall execute a separate certificate of merit for each defendant named in the complaint.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
In any action subject to subdivision (f), a defendant shall not be served, and the duty to serve a defendant with process does not attach, until the court has reviewed the certificates of merit filed pursuant to subdivision (g) with respect to that defendant, and has found, in camera, based solely on those
certificates of merit, that there is reasonable and meritorious cause for the filing of the action against that defendant. At that time, the duty to serve that defendant with process shall attach.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
A violation of this section may constitute unprofessional conduct and may be the grounds for discipline against the attorney.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The certificates required by this section shall be filed concurrently with the complaint.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The court clerk shall not accept for filing a complaint that lacks the certificates required by this section.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
In any action subject to subdivision (f), a defendant shall be named by “Doe” designation in any pleadings or papers filed in the action until there has been a showing of corroborative fact as to the charging allegations against that defendant.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
At any time after the action is filed, the plaintiff may apply to the court for permission to amend the complaint to substitute the name of the defendant or defendants for the fictitious designation, as follows:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The application shall be accompanied by a certificate of corroborative fact executed by the attorney for the plaintiff. The certificate shall declare that the attorney has discovered one or more facts corroborative of one or more of the charging allegations against a defendant or defendants, and shall set forth in clear and concise terms the nature and substance of the corroborative fact. If the corroborative fact is evidenced by the statement of a witness or the contents of a document, the certificate shall declare that the attorney has personal knowledge of the statement of the witness or of the contents of the document, and the identity and location of the witness or document shall be included in the certificate. For purposes of this section, a fact is corroborative of an allegation if it confirms or supports the allegation. The opinion of any mental health practitioner concerning the
plaintiff shall not constitute a
corroborative fact for purposes of this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If the application to name a defendant is made before that defendant’s appearance in the action, neither the application nor the certificate of corroborative fact by the attorney shall be served on the defendant or defendants, nor on any other party or their counsel of record.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the application to name a defendant is made after that defendant’s appearance in the action, the application shall be served on all parties and proof of service provided to the court, but the certificate of corroborative fact by the attorney shall not be served on any party or their counsel of record.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
The court shall review the application and the certificate of corroborative
fact in camera and, based solely on the certificate and any reasonable inferences to be drawn from the certificate, shall, if one or more facts corroborative of one or more of the charging allegations against a defendant has been shown, order that the complaint may be amended to substitute the name of the defendant or defendants.
</html:p>
<html:p>
(o)
<html:span class="EnSpace"/>
The court shall keep under seal and confidential from the public and all parties to the litigation, other than the plaintiff, any and all certificates of corroborative fact filed pursuant to subdivision (m).
</html:p>
<html:p>
(p)
<html:span class="EnSpace"/>
Upon the favorable conclusion of the litigation with respect to any defendant for whom a certificate of merit was filed or for whom a certificate of merit should have been filed pursuant to this section, the court may, upon the motion of a
party or upon the court’s own motion, verify compliance with this section by requiring the attorney for the plaintiff who was required by subdivision (g) to execute the certificate to reveal the name,
address, and telephone number of the person or persons consulted with pursuant to subdivision (g) that were relied upon by the attorney in preparation of the certificate of merit. The name, address, and telephone number shall be disclosed to the trial judge in camera and in the absence of the moving party. If the court finds there has been a failure to comply with this section, the court may order a party, a party’s attorney, or both, to pay any reasonable expenses, including attorney’s fees, incurred by the defendant for whom a certificate of merit should have been filed.
</html:p>
<html:p>
(q)
<html:span class="EnSpace"/>
Notwithstanding any other law, a claim for damages described in subparagraphs (A) to (C), inclusive, of paragraph (1) of subdivision (a) that has not been litigated to finality and that would otherwise be barred as of January 1, 2020, because the applicable
statute of limitations, claim presentation deadline, or any other time limit had expired, is revived, and these claims may be commenced within three years of January 1, 2020. A plaintiff shall have the later of the three-year time period under this subdivision or the time period under subdivision (a) as amended by the act that added this subdivision.
</html:p>
<html:p>
(r)
<html:span class="EnSpace"/>
The changes made to the time period under subdivision (a) of Section 340.1 by Chapter 861 of the Statutes of 2019 apply to and revive any action commenced on or after the date of enactment of that act, and to any action filed before the date of enactment, and still pending on that date, including any action or causes of action that would have been barred by the laws in effect before the date of enactment.
</html:p>
<html:p>
(s)
<html:span class="EnSpace"/>
Notwithstanding any
other law, including Chapter 1 of Part 3 of Division 3.6 of Title 1 of the Government Code (commencing with Section 900) and Chapter 2 of Part 3 of Division 3.6 of Title 1 of the Government Code (commencing with Section 910), a claim for damages described in paragraphs (1) to (3), inclusive, of subdivision (a), is not required to be presented to any government entity prior to the commencement of an action.
</html:p>
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</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_FA30BD2D-882A-4D86-A656-13F4951181DE">
<ns0:Num>SEC. 3.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:CCP:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'340.12'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 340.12 is added to the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_C60C235A-250E-4663-9BC6-2917D6CA88C5">
<ns0:Num>340.12.</ns0:Num>
<ns0:LawSectionVersion id="id_D47DF773-C9DD-4006-A7B3-8C6C275A4D53">
<ns0:Content>
<html:p>For actions filed against a public entity or one of its employees or agents pursuant to Section 340.11 on or after April 15, 2025, the following additional provisions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
A plaintiff who files an action pursuant to subparagraph (B) or (C) of paragraph (1) of subdivision (a) of Section 340.11, at the age of 40 years of age or older, shall prove that the public entity
or its employee or agent
acted with gross negligence to establish liability.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The court shall consider the following factors when evaluating any motion for remittitur:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The mission of the public entity to provide public services and how the damages may impact that entity’s mission given its economic status.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Whether the amount awarded is compensatory for the plaintiff’s harm.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Whether the amount awarded is acting as a substitute for or functional equivalent of punitive damages.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The severity of the harm to the plaintiff.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The
egregiousness of the defendant’s conduct.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A court retains the ability to issue a remittitur that conditions affirmance of the judgment on the plaintiff’s consent to a reduction to the judgment.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A court may structure any damages awarded against a public entity to be paid over time.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_D7EF641A-AB86-4D3F-9A2C-47FC7CEB4120">
<ns0:Num>SEC. 4.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:CCP:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2F%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'341.95'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 341.95 is added to the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_D1B3EFF8-3E2C-42E9-A84A-5502A1D4ED51">
<ns0:Num>341.95.</ns0:Num>
<ns0:LawSectionVersion id="id_C6B68E4E-3D09-4366-B643-C7B339F9CDBD">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Notwithstanding any other provision of law, including subdivisions (a) and (b) of Section 340.1, any civil action filed against the County of Los Angeles, arising out of conduct that would constitute childhood sexual assault, as defined in Section 340.1, and that allegedly occurred at, by, or under the supervision of the MacLaren Children’s Center (also known as MacLaren Hall) in Los Angeles County or any juvenile probation facility or detention center operated by the Los Angeles County Probation Department that was closed on or before January 1, 2020, shall be commenced on or before January 1, 2026.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Any civil action described in
paragraph (1) that is not filed on or before January 1, 2026, is barred.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
This section applies to all claims described in subdivision (a) arising from conduct occurring at any time prior to the effective date of this section, but does not apply to claims for which a final settlement agreement has been reached prior to the effective date of this section.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
With the exception of the limitations period specified in subdivision (a), civil actions described in subdivision (a) are subject to the procedural requirements set forth in Section 340.1.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For a claim brought pursuant to subdivision (a) by a claimant 40 years of age or older, settlement funds shall not be disbursed to that claimant, unless and until the
claimant has complied with the certificate of merit requirements of Section 340.1.
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
If the claimant was 40 years of age or older at the time of the filing of their action, the claimant or their attorney shall submit proof to a court-appointed special master, as agreed to by all parties, to oversee the disbursement of such funds, confirming that a certificate of merit has been filed in compliance with Section 340.1, including the name, qualifications, and opinion of the licensed mental health practitioner as required by Section 340.1.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The special master shall not release, transfer, or otherwise make available any funds pursuant to a settlement agreement until all of the requirements of this section are satisfied.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_5C0359BC-68F0-4033-A545-805BE6E55408">
<ns0:Num>SEC. 5.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:CCP:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'10.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'9.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'864.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 864 of the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_7B6353C2-8B4D-4269-B5DA-CB8E1F7DD212">
<ns0:Num>864.</ns0:Num>
<ns0:LawSectionVersion id="id_A0AFAE4B-D7A2-4285-B8A6-70CE3AC79EDC">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Each tort action judgment or settlement agreement 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 such resolution or ordinance, without regard to any of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
When a party files a tort action or the court enters a final judgment therein.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
When the
public agency enters into a settlement agreement.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Subparagraph (A) applies when determining either of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
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 tort action judgment or settlement.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
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 the bonds, including any contracts or agreements providing for the issuance, security or payment of the bonds, or the use of proceeds of the bonds, and any credit reimbursement or other agreement entered into or to be entered into in connection therewith.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
One or more tort judgments that have not yet been entered against the public agency by the applicable court.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
One or more tort settlement agreements that have not yet been entered into by the public agency.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
One or more tort settlement agreements entered into by the public agency whose effectiveness is contingent on any condition precedent.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For purposes of this subdivision, “tort action judgment or settlement” includes both of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A judgment entered against a public agency by one or more state or federal courts
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A tort action settlement agreement entered into by a public agency.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_14FE8E07-6E9A-4248-8E55-68C3AF9432A5">
<ns0:Num>SEC. 6.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:CCP:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'14.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'6.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'1038.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 1038 of the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_561CAEBE-9B68-4AD7-B974-574272D3CDF7">
<ns0:Num>1038.</ns0:Num>
<ns0:LawSectionVersion id="id_B303F1E8-C5C3-4F63-AFF7-0CB082778E32">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
In any civil proceeding under the Government Claims Act (Division 3.6 (commencing with Section 810) of Title 1 of the Government Code) or for express or implied indemnity or for contribution in any civil action, the court, upon motion of the defendant or cross-defendant, shall, at the time of the granting of any objection by demurrer, summary judgment, judgment on the pleadings, motion for directed verdict, motion for judgment under Section 631.8, or any nonsuit dismissing the moving party other than the plaintiff, petitioner, cross-complainant, or intervenor, or at a later time set forth by rule of the Judicial Council adopted under Section 1034,
determine whether or not the plaintiff, petitioner, cross-complainant, or intervenor brought the proceeding with reasonable cause and in the good faith belief that there was a justifiable controversy under the facts and law which warranted the filing of the complaint, petition, cross-complaint, or complaint or answer in intervention. If the court should determine that the proceeding was not brought in good faith and with reasonable cause, an additional issue shall be decided as to the defense costs reasonably and necessarily incurred by the party or parties opposing the proceeding, and the court shall render judgment in favor of that party or their attorneys in the amount of all reasonable and necessary defense costs, in addition to those costs normally awarded to the prevailing party. An award of defense
costs under this section shall not be made except on notice contained in a party’s papers and an opportunity to be heard. An attorney against whom defense costs are awarded under this section shall not charge the client for those defense costs as a litigation cost or expense.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Defense costs,” as used in this section, shall include reasonable attorney’s fees, expert witness fees, the expense of services of experts, advisers, and consultants in defense of the proceeding, and where reasonably and necessarily incurred in defending the proceeding.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section shall be applicable only on motion made before the discharge of the jury or entry of judgment, and any party requesting the relief pursuant to this
section waives any right to seek damages for malicious prosecution. Failure to make the motion shall not be deemed a waiver of the right to pursue a malicious prosecution action.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section shall only apply if the defendant or cross-defendant has made an objection by demurrer, motion for summary judgment, motion for judgment on the pleadings, judgment under Section 631.8, directed verdict, or nonsuit and the demurrer is sustained or motion is granted.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_8FFE1B50-8195-4F20-A439-590C39DE669D">
<ns0:Num>SEC. 7.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:EDC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'9.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'5.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 14560" ns3:type="locator">
Chapter 5 (commencing with Section 14560) is added to Part 9 of Division 1 of Title 1 of the
<ns0:DocName>Education Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading id="id_66012704-6204-4671-A7EC-CC4A3470EE6D" type="CHAPTER">
<ns0:Num>5.</ns0:Num>
<ns0:LawHeadingVersion id="id_66F445CA-4C88-463F-B383-F88AEC2752C8">
<ns0:LawHeadingText>Election to Participate in Intercept</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_4A55945B-6E79-478F-88FB-82565980179D">
<ns0:Num>14560.</ns0:Num>
<ns0:LawSectionVersion id="id_4E5FCF6E-EC97-4928-A4E7-B9C5B99684CD">
<ns0:Content>
<html:p>For purposes of this section, the following definitions apply:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Participating party” means a school district, county office of education, community college district, or educational joint powers authority.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Public debt obligation” means a debt incurred by a participating party for any reason, including tort liability, and includes, but is not limited to, a general obligation bond, lease financing, tax and revenue anticipation note, and bond anticipation note.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_FF64328D-53A8-4065-A58C-3D45A03F4BF1">
<ns0:Num>14561.</ns0:Num>
<ns0:LawSectionVersion id="id_974A634E-1425-4242-B9B3-98FD98A6567A">
<ns0:Content>
<html:p>
(a)
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Notwithstanding any other law, a participating party, in connection with securing financing, refinancing, or refunding of a public debt obligation may, in accordance with this section, elect to provide for funding, in whole or in part, payments on the public debt obligation.
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(b)
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To participate under this section, the participating party shall do all of the following:
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(1)
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Elect to participate in a state intercept or local intercept, or both, by an action of its governing board taken in compliance with the rules of that governing board. For a local intercept, the participating party shall send to the
county treasurer, or other appropriate county fiscal officer, a request for the county to participate. A county is not required to participate. A county may agree to participate as evidenced by an agreement among the participating party or parties, the county, and the issuer of the public debt obligation.
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<html:p>
(2)
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Provide written notice to the Controller and the Superintendent, with respect to a state intercept, or to the county treasurer or other appropriate county fiscal officer, with respect to a local intercept, no later than the date of the issuance of the public debt obligation or 60 days before the next payment, whichever is later, of all of the following:
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<html:p>
(A)
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Its election to participate.
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(B)
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A schedule of the
payments subject to that election.
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(C)
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The payee or payees of those payments, or the trustee or agent on their behalf to receive those payments.
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(D)
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(i)
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Payment delivery instructions, which may be by wire transfer or other method approved by the Controller or county treasurer or other appropriate county fiscal officer, as applicable.
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(ii)
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If the method of payment delivery is wire transfer, the participating party shall complete and submit the appropriate authorization form as prescribed by the Controller or the county treasurer or other appropriate county fiscal officer, as applicable.
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<html:p>
(c)
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The participating party may amend, supplement, or restate the
notice required pursuant to paragraph (2) of subdivision (b) for any reason, including, but not necessarily limited to, providing for new or increased payments. The participating party shall certify in the notice and in any amendment, supplement, or restatement of the notice that each and every payment reflected in the schedule is a payment described in subdivision (a) and the amounts scheduled do not exceed the actual or reasonably estimated payment obligations to be funded pursuant to this section. The participating party shall also represent in the notice that it is not submitting the notice for the purpose of accelerating a participating party’s receipt of its apportionments. This section does not prohibit transfer by the recipient of an apportionment under this section to the participating party submitting the notice of the excess apportionment above the amount needed to fund actual payments where
the excess resulted from erroneous estimation of scheduled payments or otherwise.
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<html:p>
(d)
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Upon receipt of the notice required by paragraph (2) of subdivision (b), the Controller shall make an apportionment to the indicated recipient on the date, or during the period, shown in the schedule in accordance with all of the following:
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(1)
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If the participating party requests transfers in full as scheduled, in the amount of the scheduled transfer or whatever lesser amount is available from the sources described in subdivision (e).
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(2)
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If the participating party does not request transfers in full as scheduled, in the amount of the anticipated deficiency for the purpose of making the required payment indicated in a written request of
the participating party to the Controller and in the amount of the actual shortfall in payment indicated in a written request of the recipient or the participating party to the Controller or whatever lesser amount is available from the sources described in subdivision (e).
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<html:p>
(3)
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To the extent funds available for an apportionment are insufficient to pay the amount set forth in a schedule in any period,
the Controller shall, if and as requested in the notice, reschedule the payment of all or a portion of the deficiency to a subsequent period.
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<html:p>
(4)
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In making apportionments under this section, the Controller may rely conclusively and without liability on any notice or request delivered under this section. The Controller may make, but is not obligated to make, apportionments not reflected on a notice or on an amended, supplemented, or restated notice delivered under this section that the Controller receives less than 20 days before when the apportionment would otherwise be required.
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<html:p>
(e)
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The Controller shall make an apportionment under this section only from moneys designated for apportionment to the participating party delivering the notice, and only from one or more
of the following:
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<html:p>
(1)
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Any funding apportioned by the state for purposes of the local control funding formula pursuant to Section 42238.02, as implemented by Section 42238.03, or state categorical or grant programs, to a school district without regard to the specific funding source of the apportionment.
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<html:p>
(2)
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Any funding apportioned by the state for purposes of the local control funding formula pursuant to Section 2574 or state categorical or grant programs, to a county superintendent of schools without regard to the specific funding source of the apportionment.
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<html:p>
(3)
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Any funding apportioned by the state for purposes of community college apportionments pursuant to Sections 84750.4 and 84750.5, or state categorical or
grant programs, to a community college district without regard to the specific funding source of the apportionment.
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<html:p>
(4)
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Any funding apportioned by the state to an educational joint powers authority without regard to the specific funding source of the apportionment.
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<html:p>
(f)
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Upon receipt of the notice required by paragraph (2) of subdivision (b), a county treasurer or other appropriate county fiscal officer shall make an apportionment or revenue transfer to the indicated recipient on the date, or during the period, shown in the schedule in accordance with all of the following:
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<html:p>
(1)
<html:span class="EnSpace"/>
If the participating party requests transfers in full as scheduled, in the amount of the scheduled transfer or whatever lesser amount is
available from the sources described in subdivision (g).
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<html:p>
(2)
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If the participating party does not request transfers in full as scheduled, in the amount of the anticipated deficiency for the purpose of making the required payment indicated in a written request of the participating party to the county treasurer or other appropriate county fiscal officer and in the amount of the actual shortfall in payment indicated in a written request of the recipient or the participating party to the county treasurer or other appropriate county fiscal officer or whatever lesser amount is available from the sources described in subdivision (g).
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<html:p>
(3)
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To the extent funds available for an apportionment or revenue transfer are insufficient to pay the amount set forth in a schedule in any period, the
county treasurer or other appropriate county fiscal officer shall, if and as requested in the notice, reschedule the payment of all or a portion of the deficiency to a subsequent period.
</html:p>
<html:p>
(4)
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In making apportionments under this section, the county treasurer or other appropriate county fiscal officer may rely conclusively and without liability on any notice or request delivered under this section. The county treasurer or other appropriate county fiscal officer may make, but is not obligated to make, apportionments or revenue transfers not reflected on a notice or on an amended, supplemented, or restated notice delivered under this section that the county treasurer or other appropriate county fiscal officer receives less than 20 days before when the apportionment would otherwise be required.
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<html:p>
(g)
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The county treasurer or other appropriate county fiscal officer shall make an apportionment or revenue transfer under this section only from moneys designated for apportionment to the participating party delivering the notice, and only from one or more of the following:
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<html:p>
(1)
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Any funding apportioned or administered by a county for purposes of the local control funding formula pursuant to Section 42238.02, as implemented by Section 42238.03, to a school district without regard to the specific funding source of the apportionment.
</html:p>
<html:p>
(2)
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Any funding apportioned or administered by a county for purposes of the local control funding formula pursuant to Section 2574 to a county superintendent of schools without regard to the specific funding source of the apportionment.
</html:p>
<html:p>
(3)
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Any funding apportioned or administered by a county for purposes of community college apportionments pursuant to Sections 84750.4 and 84750.5 to a community college district without regard to the specific funding source of the apportionment.
</html:p>
<html:p>
(4)
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Any funding apportioned or administered by a county to an educational joint powers authority without regard to the specific funding source of the apportionment.
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<html:p>
(h)
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(1)
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The amount apportioned for a participating party pursuant to this section shall be deemed to be an allocation to the participating party, and shall be included in the computation of allocation, limit, entitlement, or apportionment for the participating party.
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<html:p>
(2)
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The participating party and its creditors do not have a claim to funds apportioned or anticipated to be apportioned by the Controller or the county treasurer or appropriate county fiscal officer, as applicable, pursuant to this section.
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<html:p>
(i)
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This section does not make the State of California liable for any payments within the meaning of Section 1 of Article XVI of the California Constitution.
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(j)
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A school district or educational joint powers authority that has a qualified or negative certification pursuant to Section 42131, or a county office of education that has a qualified or negative certification pursuant to Section 1240, may only participate under this section to intercept payments for indebtedness for which the repayment
is determined to be probable pursuant to Section 42133.
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<html:p>
(k)
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This section does not obligate the State of California to make available the sources of apportionment under subdivision (e) or a county to make available the sources of apportionment under subdivision (g) in any amount or at any time or, except as provided in this section, to fund any payment described in this section. This subdivision is intended solely to clarify existing law.
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<ns0:BillSection id="id_876CCEA1-DAEE-4ADD-A92E-10FF866ED9EC">
<ns0:Num>SEC. 8.</ns0:Num>
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Section 41320 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_8C38F997-6B31-4F5C-9068-840459D7CE31">
<ns0:Num>41320.</ns0:Num>
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<ns0:Content>
<html:p>As a condition to any emergency apportionment to be made pursuant to Section 41320.2, the following requirements shall be met:</html:p>
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(a)
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The school district requesting the apportionment shall submit to the county superintendent of schools having jurisdiction over the school district a report issued by an independent auditor approved by the county superintendent of schools on the financial conditions and budgetary controls of the school district, a written management review conducted by a qualified management consultant approved by the county superintendent of schools, and a fiscal plan adopted by the governing board to resolve the financial problems of the school district.
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(b)
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The county superintendent of schools shall review, and provide written comment on, the independent auditor’s report, the management review, and the school district plan. That written comment shall include the county superintendent’s approval or disapproval of the school district plan. In the event the county superintendent disapproves the plan, the governing board shall revise the school district plan to respond to the concerns expressed by the county superintendent.
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<html:p>
(c)
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Upon their approval of the school district plan, the county superintendent of schools shall submit copies of the report, review, plan, and written comments specified in subdivision (b) to the Superintendent, the Joint Legislative Audit Committee, the Joint Legislative Budget Committee, the Director of
Finance, the president of the state board or their designee, and the Controller.
</html:p>
<html:p>
(d)
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The school district receiving the apportionment shall be eligible for assistance from the California Collaborative for Educational Excellence pursuant to Section 52074.
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<html:p>
(e)
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The county superintendent of schools, with the concurrence of the Superintendent, shall certify to the Director of Finance that the action taken to correct the financial problems of the school district is realistic and will result in placing the school district on a sound financial basis.
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<html:p>
(f)
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In consultation with the county superintendent of schools and the County Office Fiscal Crisis and Management Assistance Team, the school district shall develop a schedule to repay
the emergency loan, including any lease financing pursuant to Article 2.7 (commencing with Section 41329.50), and submit it to the county superintendent of schools. The county superintendent of schools shall review and comment on the repayment schedule and submit it to the Department of Finance for approval or disapproval. Upon the approval of the repayment schedule, and of the other reports, reviews, plans, and the appointment of the trustee required by this article, the Superintendent shall request the Controller to disburse the proceeds of the emergency loan to the school district.
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<html:p>
(g)
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The school district requesting the apportionment shall reimburse the county superintendent of schools for the costs incurred by the superintendent pursuant to this section.
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<ns0:BillSection id="id_EFCFE3FB-82DC-468A-A807-FE6D6D912F6A">
<ns0:Num>SEC. 9.</ns0:Num>
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Section 41329.52 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_3F314B0C-4163-47D0-AE60-37A458F8F091">
<ns0:Num>41329.52.</ns0:Num>
<ns0:LawSectionVersion id="id_D7787009-1192-47AF-AAEE-AD12EC125E18">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
A school district may receive a two-part financing designed to provide an advance of apportionments owed to the district from the State School Fund and the Education Protection Account.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The initial emergency apportionment shall be an interim loan from the General Fund to the school district. General Fund money shall not be advanced to a school district until that district agrees to obtain a lease financing as described in subdivision (c) and the bank adopts a reimbursement resolution governing the lease financing. The interim loan shall be repaid in full, with interest, from the proceeds of the lease financing pursuant to subdivision (c) at a time mutually agreed
upon between the Department of Finance and the bank. The interest rate on the interim loan shall be the rate earned by moneys in the Pooled Money Investment Account as of the date of the initial disbursement of emergency apportionments to the school district.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The school district shall enter into a lease financing with the bank for the purpose of financing the emergency apportionment, including a repayment to the General Fund of the amount advanced pursuant to subdivision (b). In addition to the emergency apportionment, the lease financing may include funds necessary for reserves, capitalized interest, credit enhancements, and costs of issuance. The bank shall issue bonds for that purpose pursuant to the powers granted pursuant to the Bergeson-Peace Infrastructure and Economic Development Bank Act as set forth in Division 1 (commencing
with Section 63000) of Title 6.7 of the Government Code. The term of the lease shall not exceed 30 years, except that if at the end of the lease term any rent payable is not fully paid, or if the rent payable has been abated, the term of the lease shall be extended for a period not to exceed 10 years. The determination of the term of the lease shall be made by the Department of Finance, in consultation with the school district, the county superintendent of schools, the Superintendent, and the County Office Fiscal Crisis and Management Assistance Team. The determination shall take into consideration the amount of the lease, the school district’s realistic ability to meet the annual repayment obligation, the school district’s educational program and service needs, and the conditions established in Section 41320 and subdivision (a) of Section 41326.
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<ns0:BillSection id="id_FC2F3C15-B9F5-4113-A1AE-B18B5A734239">
<ns0:Num>SEC. 10.</ns0:Num>
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Section 41329.53 of the
<ns0:DocName>Education Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_49434852-9155-4CBC-A8F3-A33E505CD1AB">
<ns0:Num>41329.53.</ns0:Num>
<ns0:LawSectionVersion id="id_60086A97-509B-4133-AB36-A44EB1A97D3C">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
As an alternative to the lease financing pursuant to Section 41329.52, a school district may receive an emergency apportionment from the General Fund designed to provide an advance of apportionments owed to the district from the State School Fund and the Education Protection Account. The calculation of the amount of the apportionment, including implied costs, and the interest rate shall be calculated pursuant to subdivision (c). Each year the Superintendent shall withhold from the
apportionments to be made to the school district from the State School Fund and the Education Protection Account an amount equal to the emergency apportionment repayment that becomes due in the year.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The emergency apportionment shall be repaid within 30 years. The determination of the term for repayment of the emergency apportionment shall be made by the Department of Finance, in consultation with the school district, the county superintendent of schools, the Superintendent, and the County Office Fiscal Crisis and Management Assistance Team. The determination shall take into consideration the amount of the emergency apportionment, the school district’s realistic ability to meet the annual repayment obligation, the school district’s educational program and service needs, and the conditions established in Section 41320 and
subdivision (a) of Section 41326.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The determination by statute as to whether the emergency apportionment shall take the form of lease financing pursuant to Section 41329.52 or an emergency apportionment from the General Fund pursuant to this section shall be based upon the availability of funds within the General Fund and not on any cost differential between the two financing mechanisms. To ensure that the two alternatives are cost neutral, if the statute does not authorize a lease financing, the bank shall commission a cost study from financial advisers under contract with the bank to determine the interest rate, costs of issuance, and if it is more cost effective, credit enhancement costs likely if the financing was a lease financing rather than an emergency apportionment from the General Fund. These implied
lease costs shall be included as the fixed interest rate on the repayment of the emergency apportionment to the General Fund, repayable over the term for repayment of the emergency apportionment.
</html:p>
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<ns0:BillSection id="id_7E2C37B2-3F53-43E0-828B-8B6F0C227172">
<ns0:Num>SEC. 11.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B
of the California Constitution.
</html:p>
<html:p>However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.</html:p>
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