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California's Law Strains Budgets, Sparks Settlement Caps Debate

8/18/2025

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Summary

Story summary

California's AB 218 law extends the statute of limitations for childhood sexual assault claims against public entities.
This law has resulted in billions in claims, straining public agency finances and raising insurance premiums.
Public officials propose capping settlement amounts to control costs and encourage insurers to return to California.
A proposed victims compensation fund may help ease financial burdens on public entities.

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Story summary

California's AB 218 law extends the statute of limitations for childhood sexual assault claims against public entities.
This law has resulted in billions in claims, straining public agency finances and raising insurance premiums.
Public officials propose capping settlement amounts to control costs and encourage insurers to return to California.
A proposed victims compensation fund may help ease financial burdens on public entities.