Public entities

The law imposes new safeguards for minors in local government, schools, foster care, and juvenile justice settings. It also changes rules for childhood sexual-assault lawsuits and public-agency debt financing.

What the law does ​

• Requires local governments and local educational agencies by December 1, 2027, to adopt codes of conduct, sexual-assault-prevention plans, and reporting policies addressing grooming and sexual abuse.
• Requires recurring mandated-reporter training on grooming behavior and sexual-abuse risks for specified public-facing workers.
• Strengthens monitoring, reporting, prevention guidance, and independent-oversight planning for children’s residential facilities, foster care, and juvenile justice settings.
• Requires the Attorney General to investigate systemic abuse claims in specified Los Angeles County juvenile detention centers and reports of fraudulent sexual-abuse claims.
• Shortens the discovery-based filing window for pre-2024 childhood sexual-assault claims from five years to three years, while preserving the 22-years-after-adulthood deadline.
• Imposes higher proof requirements for certain childhood sexual-assault claims filed by people age 40 or older against public entities, bars treble damages against public entities, and allows damage awards against them to be paid over time.
• Requires certificates of merit with qualifying complaints by plaintiffs age 40 or older and creates a $25,000 personal civil penalty for attorneys who bring childhood-sexual-assault claims in bad faith.
• Limits a public entity’s joint liability for economic damages in most personal-injury, property-damage, and wrongful-death cases filed from 2027 unless it is more than 15% at fault.
• Allows education entities to use state or local revenue intercepts to secure or refinance public debt, including tort liability, and extends emergency school-district debt repayment terms to 30 years.

Who it affects ​

• Children and youth in schools, local-government programs, foster care, children’s residential facilities, and juvenile detention settings.
• Cities, counties, school districts, county offices of education, community college districts, and other local public entities.
• Childhood sexual-assault survivors, defendants, attorneys, mental health practitioners, and courts handling related civil claims.
• Foster-care facility operators, mandated reporters, peace officers, probation officers, social workers, and other employees serving minors.

Breakdown ​

Childhood Sexual Assault Claims ​

This part shortens one deadline for filing certain childhood sexual assault claims based on later-discovered psychological harm, from five years to three years after discovery. It also sets higher proof requirements for certain claims filed from 2026 onward against public entities when the plaintiff is age 40 or older, and gives courts specific tools for reviewing and paying judgments against those entities.

Key takeaways

• For assaults that occurred before January 1, 2024, a claimant may generally file until 22 years after reaching adulthood or three years after discovering that post-adulthood psychological harm was caused by the assault, whichever deadline is later.
• The bill reduces the later-discovery filing period from five years to three years.
• For qualifying claims filed on or after January 1, 2026, against a public entity or its employees or agents, plaintiffs age 40 or older must meet additional requirements.
• In those public-entity cases, the plaintiff must prove by clear and convincing evidence that the entity knew of misconduct leading to childhood sexual assault and failed to take reasonable protective steps or safeguards.
• The plaintiff must also prove that the public entity negligently failed to carry out a mandatory duty.
• Courts must consider specified factors when reviewing requests to reduce damages awards and may allow judgments against public entities to be paid over time.

Childhood Sexual Assault Claims ​

This part requires certain plaintiffs in childhood sexual assault cases to file required certificates of merit at the same time as their complaint. Court clerks generally may not accept a complaint without the certificates, and the attorney’s certificate must confirm that the attorney is licensed and in good standing in California.

Key takeaways

• Plaintiffs age 40 or older who bring childhood sexual assault damages claims must file the required certificates of merit concurrently with their complaint.
• A court clerk generally may not accept a complaint for filing if the required certificates are missing, subject to specified exceptions.
• The bill replaces the prior approach under which failure to file the certificates could be raised through a demurrer.
• The attorney’s certificate of merit must state that the attorney is licensed to practice law in California and is in good standing with the State Bar.

Treble Damages and Public Entities ​

The bill bars courts from awarding treble damages against public entities in childhood sexual assault cases involving a proven cover-up. Victims may still have other remedies available, but the extra damages up to three times the amount cannot be imposed on a public entity.

Key takeaways

• The bill applies to childhood sexual assault claims in which a cover-up has been proven.
• It prevents treble damages from being imposed on a defendant that is a public entity.
• Treble damages are damages that can be awarded up to three times the underlying amount.
• The change does not alter the rule for nonpublic defendants that covered up the sexual assault.

Minor Safety Requirements ​

By December 1, 2027, local governmental bodies and local educational agencies must adopt codes of conduct and sexual assault prevention plans aimed at keeping minors safe. They must also put in writing how concerns and risks involving grooming and sexual abuse will be reported. Local governmental bodies must send their codes to the Attorney General, who must report to the Legislature on compliance.

Key takeaways

• Local governmental bodies and local educational agencies must adopt codes of conduct and sexual assault prevention plans that promote a safe environment for minors by December 1, 2027.
• They must adopt written policies, plans, or specifications explaining how grooming and sexual abuse concerns and risks will be reported.
• Local governmental bodies must submit their adopted codes of conduct to the Attorney General by January 1, 2028.
• The Attorney General must report to relevant legislative policy committees by January 1, 2029, including which local governmental bodies and local educational agencies have and have not complied.
• For entities licensed or certified by a state agency to provide care or services to minors, the required codes of conduct cannot override the state laws or regulations enforced by that licensing or certifying agency.
• The bill creates new duties for local governments and therefore establishes a state-mandated local program.

Penalties for Bad-Faith Childhood Assault Claims ​

The bill creates a $25,000 civil penalty for an attorney who files a civil childhood sexual assault claim in bad faith. It allows the Attorney General, city attorneys, and county counsel to enforce the penalty. A plaintiff who wins an enforcement action can recover reasonable attorney’s fees and costs.

Key takeaways

• An attorney who brings a civil claim alleging childhood sexual assault in bad faith may be fined $25,000 for each violation.
• The bill creates this penalty in addition to the State Bar’s existing authority to discipline attorneys.
• The Attorney General, a city attorney, or a county counsel may bring an action to enforce the penalty.
• A successful plaintiff seeking the penalty is entitled to reasonable attorney’s fees and costs.

Ombudsperson Access to Officer Records ​

Beginning January 1, 2028, the Division of the Ombudsperson within the Office of Youth and Community Restoration may use peace officer and custodial officer personnel records in its investigations or proceedings. The bill adds that division to the entities exempt from the usual limits on disclosing these confidential records.

Key takeaways

• The change takes effect on January 1, 2028.
• The Division of the Ombudsperson may access relevant personnel records when conducting an investigation or proceeding.
• The bill applies to personnel records of peace officers and custodial officers.
• The records remain generally confidential outside the specified exceptions.

Public Entity Economic Damages ​

For lawsuits filed on or after January 1, 2027, public entities generally would not share joint responsibility for economic damages in personal injury, property damage, or wrongful death cases. A public entity could be jointly liable for economic damages only if it is found more than 15% at fault.

Key takeaways

• The change applies to civil cases against public entities filed on or after January 1, 2027.
• It covers claims alleging personal injury, property damage, or wrongful death.
• A public entity that is 15% or less at fault would not be jointly liable for economic damages.
• A public entity may be jointly liable for economic damages if it is found more than 15% at fault.
• The bill adds this limit for economic damages while existing law already limits joint liability for noneconomic damages.

Refunding Bonds for Tort Judgments ​

The bill sets a specific date for determining whether debt exists when a public agency issues refunding bonds to refinance a tort judgment. For that purpose, the debt is treated as existing on the date the agency’s governing body adopts the required resolution or ordinance.

Key takeaways

• The change applies to refunding bonds used to refinance a tort action judgment against a public agency.
• For these bonds, debt is considered to exist when the agency’s governing body adopts the relevant resolution or ordinance.
• The rule is used to determine the validity of the refunding bonds.

Bad-Faith Claims and Defense Costs ​

The bill lets defendants and cross-defendants seek a court finding that a claim lacked good faith or reasonable cause after winning a judgment on the pleadings or a demurrer, in addition to the procedures already covered. A motion seeking that finding must name the specific plaintiffs involved. It also bars attorneys from passing court-awarded defense costs for such claims on to their clients as litigation expenses.

Key takeaways

• Defendants and cross-defendants may seek a bad-faith or unreasonable-claim finding after a judgment on the pleadings or a demurrer resolves the case in their favor.
• The expanded procedure applies alongside the existing options involving summary judgment, directed verdicts, nonjury judgments, and nonsuits.
• A defendant or cross-defendant seeking this determination must identify the specific plaintiffs against whom it is requested.
• If the court finds that a proceeding lacked good faith or reasonable cause, it may award the opposing party reasonable and necessary defense costs.
• An attorney who is ordered to pay defense costs under this process may not pass those costs on to the client as a litigation expense.

Public Debt Payment Intercepts ​

This part lets eligible public entities choose to use state or local payment intercepts to help pay public debt obligations, including financing, refinancing, or refunding debt. After receiving the required written notice, the Controller or appropriate county fiscal official must transfer designated funds to make those payments. Counties may choose whether to participate in local intercepts, and participating entities must certify their payment schedules.

Key takeaways

• Eligible participating entities may elect to use a state intercept, a local intercept, or both to fund payments on qualifying public debt obligations.
• The authorization covers financing, refinancing, and refunding of public debt obligations.
• After receiving written notice, the Controller, county treasurer, or other appropriate county fiscal officer must make the specified apportionment or revenue transfer from funds designated for the participating entity.
• A county is allowed, but not required, to participate in local intercepts under these provisions.
• A participating entity must certify its payment schedule as required by the bill.
• Because a false certification may expand the crime of perjury, the bill creates a state-mandated local program.

School District Emergency Loan Repayment ​

SB 577 changes how school districts plan and obtain approval for repaying emergency state funding. Districts must consult additional local fiscal oversight officials when developing repayment plans, and the Department of Finance will approve the plans. The bill also allows leases and emergency apportionment repayments to run for up to 30 years instead of 20 years, with the Department of Finance setting the term after consulting specified parties.

Key takeaways

• A school district seeking emergency funding must consult its county superintendent of schools and the County Office Fiscal Crisis and Management Assistance Team when developing its repayment schedule.
• The county superintendent must send the repayment schedule to the Department of Finance for approval rather than to the Superintendent of Public Instruction.
• The maximum lease term and emergency apportionment repayment period increase from 20 years to 30 years.
• The Department of Finance must determine the repayment or lease term in consultation with the district, county superintendent, Superintendent of Public Instruction, and the County Office Fiscal Crisis and Management Assistance Team.
• The term determination must consider the factors specified in the bill.
• The bill creates a state-mandated local program to the extent it assigns new duties to county superintendents of schools.

Attorney General Investigations ​

The bill requires the Attorney General to investigate claims of systemic, long-running sexual abuse of minors in certain Los Angeles County juvenile detention centers. It also requires investigations into reports of fraudulent claims of sexual abuse of minors involving, among others, Los Angeles County and the City of Santa Monica. The Attorney General must report the findings to the Legislature by June 30, 2029, and the reporting requirements end on January 1, 2031.

Key takeaways

• The Attorney General must investigate claims of systemic and longstanding sexual abuse of minors in specified Los Angeles County juvenile detention centers.
• The Attorney General must also investigate reports of fraudulent sexual-abuse claims involving, among others, Los Angeles County and the City of Santa Monica.
• The Attorney General must submit a report summarizing the investigative findings to the Legislature by June 30, 2029.
• The bill's reporting provisions become inoperative on January 1, 2031.

Mandated Reporter Training ​

SB 577 expands which employers must provide child-abuse reporting training to their mandated reporter employees, including employers of peace officers, probation officers, and social workers. The training must now cover grooming behavior and sexual abuse risks, and covered employers must ensure employees complete it at least every two years. The bill creates new training duties for local employees, creating a state-required local program.

Key takeaways

• Employers of additional mandated reporters, including peace officers, probation officers, and social workers, must provide mandated reporter training.
• Required training must include how to identify child abuse and neglect, grooming behavior, and sexual abuse risks.
• For this training, grooming behavior means conduct intended to prepare, induce, or persuade a minor to engage in sexual activity or another form of exploitation.
• Employers covered by the training requirement must ensure their mandated reporter employees take the training at least once every two years.
• The new requirements apply to local employees and therefore create a state-mandated local program.

Child Welfare Sexual Assault Prevention Report ​

The bill requires the California Child Welfare Council to issue a one-time report by July 1, 2028, with policy recommendations to help prevent sexual assault of minors in public-agency custody or temporary care, including care provided by contractors. The council must send the report to the Governor and Legislature and publish it online. These requirements end in late 2028 and are repealed in 2029.

Key takeaways

• The council must report by July 1, 2028, on policy changes that could help prevent sexual assault of minors in the custody or temporary care of public agencies or their contracted caregivers.
• The report must include recommendations rather than merely describing the issue.
• The council must transmit the report to the Governor and the Legislature.
• The council must make the report publicly available on a public-facing internet website.
• The reporting requirements become inoperative on December 1, 2028, and are repealed on January 1, 2029.

Foster Care Sexual Abuse Safeguards ​

The bill requires the State Foster Care Ombudsperson to create a plan for stronger independent oversight and protections for foster youth and nonminor dependents facing risks of sexual abuse, grooming, exploitation, trafficking, or retaliation. It also requires the Department of Social Services to give residential facilities prevention guidance and requires those facilities to update their program statements on handling related reports and suspected abuse.

Key takeaways

• The State Foster Care Ombudsperson must develop a plan by July 1, 2028, to strengthen oversight, monitoring, safety, and rights protections for foster children and nonminor dependents at risk of sexual abuse and related harms.
• The ombudsperson must report the plan to the Legislature by February 1, 2029, and publish the report on its website.
• The Department of Social Services must issue guidance by March 1, 2028, identifying best practices to prevent sexual abuse in children’s residential facilities.
• By July 1, 2029, children’s residential facilities must include procedures in their program statements for responding to reports or suspicions of sexual abuse, grooming, exploitation, trafficking, retaliation, or interference.

Enhanced Oversight of Children’s Residential Facilities ​

The bill requires the State Department of Social Services to place certain children’s residential facilities under enhanced monitoring for at least 12 months after serious sexual-safety allegations or findings. It also requires the department to report annually to the Legislature on sexual safety in these facilities and post those reports online.

Key takeaways

• A children’s residential facility must receive enhanced monitoring for at least 12 months if it has two or more credible allegations within a 12-month period involving specified misconduct.
• A single substantiated allegation involving specified misconduct, including sexual abuse, grooming, sexual exploitation, or retaliation, also triggers enhanced monitoring.
• The department must provide the Legislature with an update on sexual safety in children’s residential facilities by January 10, 2028, and every year after that.
• The department must make its annual sexual-safety reports publicly available on its website.

Youth Justice Oversight Plan ​

The bill requires the Office of Youth and Community Restoration and the Board of State and Community Corrections to create a plan for oversight protections for young people in juvenile justice facilities. The protections must be comparable to those for youth living in licensed children’s residential facilities. The agencies must send the plan to the Legislature by July 1, 2028, and put it into effect by July 1, 2030.

Key takeaways

• The required plan covers juvenile halls, camps, secure youth treatment facilities, and other juvenile justice settings.
• The plan must create an oversight structure that protects youth in these facilities at a level comparable to licensed children’s residential facilities.
• The Office of Youth and Community Restoration and the Board of State and Community Corrections must jointly develop the plan.
• The agencies must submit the plan to the Legislature by July 1, 2028.
• The agencies must implement the plan by July 1, 2030.
• The bill also allows reimbursement to local agencies or school districts if the Commission on State Mandates finds that the bill imposes reimbursable state-required costs.