SB 577: Public entities.
The bill aims to amend the California code to provide better support for victims of childhood sexual assault. It shortens the time frame for filing a specified action to 22 years from the date the victim attains majority age or 3 years from the date they discover the psychological injury caused by the assault. For actions filed on or after April 15, 2025, against a public entity, the standard of liability is increased to gross negligence. Courts must consider specific factors when reviewing motions for remittitur, and judgments against public entities can be structured to be paid over time. The bill also requires cases filed by victims who attended the McLaren Children's Center or other juvenile facilities closed before January 1, 2020, to be filed on or before January 1, 2026. Additionally, the bill modifies the requirements for certificates of merit in cases involving victims 40 years…
| Sep. 30, 2026 | Chaptered by Secretary of State. Chapter 971, Statutes of 2026. |
| Sep. 30, 2026 | Approved by the Governor. |
| Sep. 08, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 30, 2026 | Read third time. Passed. (Ayes 49. Noes 20. Page 6889.) Ordered to the Senate. |
| Aug. 30, 2026 | Assembly amendments concurred in. (Ayes 24. Noes 10.) Ordered to engrossing and enrolling. |
LEGISLATIVE COUNSEL'S DIGEST
The people of the State of California do enact as follows:
SECTION 1.
Section 6095.2 is added to the Business and Professions Code, to read:6095.2.
(a) In addition to any other discipline authorized by this chapter, an attorney found by a judicial officer to have brought or maintained a civil claim alleging childhood sexual assault in bad faith is liable for a civil penalty of twenty-five thousand dollars ($25,000) per violation. The amount shall be the personal liability of the attorney and not chargeable to the claimant.SEC. 2.
Section 1431.2 of the Civil Code is amended to read:1431.2.
(a) (1) In any action for personal injury, property damage, or wrongful death, based upon principles of comparative fault, the liability of each defendant for non-economic damages shall be several only and shall not be joint. Each defendant shall be liable only for the amount of non-economic damages allocated to that defendant in direct proportion to that defendant’s percentage of fault, and a separate judgment shall be rendered against that defendant for that amount.SEC. 3.
Section 340.1 of the Code of Civil Procedure is amended to read:340.1.
(a) 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:SEC. 4.
Section 340.11 of the Code of Civil Procedure is amended to read:340.11.
(a) (1) 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:SEC. 5.
Section 340.12 is added to the Code of Civil Procedure, to read:340.12.
(a) (1) In addition to the requirements prescribed by Section 340.11, a plaintiff who files an action against a public entity on or after January 1, 2026, 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 both of the following claims by clear and convincing evidence:SEC. 6.
Section 864 of the Code of Civil Procedure is amended to read:864.
(a) 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.SEC. 7.
Section 1038 of the Code of Civil Procedure is amended to read:1038.
(a) (1) 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 determine if 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.SEC. 8.
Chapter 5 (commencing with Section 14560) is added to Part 9 of Division 1 of Title 1 of the Education Code, to read:CHAPTER 5. Election to Participate in Intercept
14560.
For purposes of this section, the following definitions apply:14561.
(a) 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.SEC. 9.
Section 41320 of the Education Code is amended to read:41320.
As a condition to any emergency apportionment to be made pursuant to Section 41320.2, the following requirements shall be met:SEC. 10.
Section 41329.52 of the Education Code is amended to read:41329.52.
(a) 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.SEC. 11.
Section 41329.53 of the Education Code is amended to read:41329.53.
(a) 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.SEC. 12.
Section 50035 is added to the Government Code, to read:50035.
(a) It is the intent of the Legislature to ensure that public entities serving minors take active measures to prevent violence against, and the sexual assault or exploitation of, minors under their care or custody.SEC. 13.
Section 1526.76 is added to the Health and Safety Code, to read:1526.76.
(a) The department shall require licensed facilities to incorporate the best practices identified in Section 16500.2 of the Welfare and Institutions Code into a program statement, which shall be reviewed during regular licensing visits.SEC. 14.
Section 1534.2 is added to the Health and Safety Code, to read:1534.2.
(a) For purposes of this section, “children’s residential facility” means a licensed children’s residential facility or approved resource family of a foster family agency under the California Community Care Facilities Act (Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code).SEC. 15.
Section 1534.3 is added to the Health and Safety Code, to read:1534.3.
(a) The department, by January 10, 2028, and each year thereafter, shall update the Legislature concerning sexual safety in children’s residential facilities. The update shall include data regarding complaints, investigations, licensing citations, civil penalties, staff exclusions, and enhanced monitoring.SEC. 16.
Section 832.7 of the Penal Code is amended to read:832.7.
(a) Except as provided in subdivision (b), the personnel records of peace officers and custodial officers and records maintained by a state or local agency pursuant to Section 832.5, or information obtained from these records, are confidential and shall not be disclosed in any criminal or civil proceeding except by discovery pursuant to Sections 1043 and 1046 of the Evidence Code. This section does not apply to investigations or proceedings concerning the conduct of peace officers or custodial officers, or an agency or department that employs those officers, conducted by a grand jury, a district attorney’s office, the Attorney General’s office, or the Commission on Peace Officer Standards and Training, or a civilian oversight board or commission for a law enforcement agency established pursuant to subdivision (a) of Section 25303.7 of the Government Code or other duly enacted municipal or county ordinance.SEC. 17.
Section 832.7 is added to the Penal Code, to read:832.7.
(a) Except as provided in subdivision (b), the personnel records of peace officers and custodial officers and records maintained by a state or local agency pursuant to Section 832.5, or information obtained from these records, are confidential and shall not be disclosed in any criminal or civil proceeding except by discovery pursuant to Sections 1043 and 1046 of the Evidence Code. This section does not apply to investigations or proceedings concerning the conduct of peace officers or custodial officers, or an agency or department that employs those officers, conducted by a grand jury, a district attorney’s office, the Attorney General’s office, the Division of the Ombudsperson of the Office of Youth and Community Restoration established pursuant to subdivision (d) of Section 2200 of the Welfare and Institutions Code, or the Commission on Peace Officer Standards and Training, or a civilian oversight board or commission for a law enforcement agency established pursuant to subdivision (a) of Section 25303.7 of the Government Code or other duly enacted municipal or county ordinance.SEC. 18.
Section 11054.6 is added to the Penal Code, to read:11054.6.
(a) (1) The Attorney General shall investigate the claims of systemic and longstanding sexual abuse of minors in the juvenile detention centers operated by the County of Los Angeles.SEC. 19.
Section 11165.7 of the Penal Code is amended to read:11165.7.
(a) As used in this article, “mandated reporter” is defined as any of the following:SEC. 19.5.
Section 11165.7 of the Penal Code is amended to read:11165.7.
(a) As used in this article, “mandated reporter” is defined as any of the following:SEC. 20.
Section 2203 is added to the Welfare and Institutions Code, to read:2203.
(a) The Office of Youth and Community Restoration and Board of State and Community Corrections shall develop a plan to establish an oversight structure that ensures protections for youth in juvenile halls, camps, secure youth treatment facilities, and other juvenile justice settings that are comparable to youth placed in licensed children’s residential facilities. The plan shall include, but not be limited to, methodologies for all of the following:SEC. 21.
Section 16166.5 is added to the Welfare and Institutions Code, to read:16166.5.
(a) On or before July 1, 2028, the Office of the State Foster Care Ombudsperson, informed by stakeholders including individuals with lived experiences in foster care, shall develop a plan to strengthen independent oversight, monitoring, safety, and rights protections for children and nonminor dependents in foster care, as described in subdivision (b) of Section 16161, who are at risk of sexual abuse, grooming, exploitation, trafficking, or retaliation. The plan shall address all of the following:SEC. 22.
Section 16500.2 is added to the Welfare and Institutions Code, to read:16500.2.
On or before March 1, 2028, the department shall issue guidance to children’s residential facilities, as defined in subdivision (a) of Section 1534.2 of the Health and Safety Code, identifying best practices for preventing sexual abuse in children’s residential facilities. The department shall work with stakeholders to develop the guidance, which shall include, but not be limited to, both of the following:SEC. 23.
Section 16545.5 is added to the Welfare and Institutions Code, to read:16545.5.
(a) (1) The California Child Welfare Council shall develop an advisory report, on or before July 1, 2028, that includes, at a minimum, recommendations for policy changes that could aid in the prevention of sexual assault of minors in the custody or temporary care of public agencies or their contracted caregivers.SEC. 24.
The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of unique circumstances in the County of Los Angeles necessitating an investigation of claims of systemic and longstanding sexual abuse of minors and fraudulent claims of sexual abuse of minors, so as to prevent the occurrence of future incidents.SEC. 25.
Section 19.5 of this bill incorporates amendments to Section 11165.7 of the Penal Code proposed by both this bill and AB 2478. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2027, (2) each bill amends Section 11165.7 of the Penal Code, and (3) this bill is enacted after AB 2478, in which case Section 19 of this bill shall not become operative.SEC. 26.
If the Commission on State Mandates determines that this act contains 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.