California lawmakers reject caps on abuse payouts, but deal could still give schools relief

California lawmakers have reached a compromise agreement that allows survivors of childhood sexual assault at public institutions to pursue lawsuits against the responsible entities, while also addressing financial concerns raised by school districts, cities, and counties.

The deal, announced Thursday, amends Senate Bill 577, a measure aimed at curbing rising liability costs for public entities. The original bill, authored by Senator John Laird, stalled last year after failing to secure enough support. Lawmakers had been negotiating a compromise for two years to balance survivors' access to justice with the financial strain on cash-strapped public institutions.

The agreement does not include caps on damages, a provision that survivor advocates had strongly opposed. Cities, counties, and school districts had pushed for damage caps to mitigate the financial burden caused by a 2019 law that expanded who could sue over childhood sexual assault in California. Since then, public entities have faced mounting legal costs, including settlements and increased liability insurance premiums, leading to cuts in staff, programs, and facility upgrades.

In a concession to public entities, the deal requires older survivors to present stronger evidence of their assaults. This applies to survivors over age 40 and those with cases prior to 2024 where records were destroyed. Senate President Pro Tem Monique Limón stated that the agreement prioritizes "protection and prevention," aiming to safeguard justice while addressing the fiscal impacts on communities.

Survivor advocates are divided over the deal. The Youth Law Center, which represents survivors, praised the rejection of harmful proposals and the inclusion of preventive measures. However, other groups, including Stand With Survivors, criticized the higher evidence threshold for older plaintiffs, arguing it will deny justice to many who come forward later in life.

"Many victims don’t come forward until later in adulthood," said Caroline Heldman of Stand With Survivors. "A more stringent evidence standard denies justice for those who bring their cases later."

Local government and school district representatives argue that current funding should benefit children and communities, not plaintiffs' attorneys. Jaime Huff of the Civil Justice Association of California stated that the current system imposes a "lawsuit tax" on public services, draining billions from local governments and school districts.

The amendments also remove a statute-of-limitations cutoff for claims against Los Angeles County’s juvenile detention centers, following a $4 billion settlement last year with survivors of the now-closed MacLaren Children’s Center.

Additionally, the bill includes preventive measures to curb child sex abuse, such as requiring public entities to submit sexual assault prevention plans to the attorney general’s office by January 1, 2028. The attorney general would then brief the Legislature on non-compliant agencies. The bill also expands the list of mandatory reporters of child sexual assault to include peace officers, probation officers, and social workers. Attorneys found to have brought claims in "bad faith" could face a $25,000 fine.

Lawmakers have until Monday to consider the legislation in both chambers. Governor Gavin Newsom’s office declined to comment, but sources familiar with the negotiations indicated he would likely sign the bill if it reaches his desk.