BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1628
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          Date of Hearing:  April 24, 2012

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                    AB 1628 (Beall) - As Amended:  April 11, 2012

                              As Proposed to be Amended

           SUBJECT  :  CHILD SEXUAL ABUSE

           KEY ISSUES  :  

          1)IN ORDER TO ENSURE THAT A VICTIM OF CHILDHOOD SEXUAL ABUSE IS 
            ABLE TO SEEK COMPENSATION FROM THOSE RESPONSIBLE, SHOULD THE 
            STATUTE OF LIMITATIONS be extended from age 26 to age 35?

          2)SHOULD THE LAW BE CLARIFIED TO PROHIBIT ALL CONFIDENTIAL 
            SETTLEMENTS IN CASES INVOLVING CHILDHOOD SEXUAL ABUSE TO HELP 
            ENSURE THAT THOSE WHO COMMIT THESE HEINOUS ACTS ARE NOT ABLE 
            TO HIDE THEIR CRIMES AND THEN HURT MORE VICTIMS? 

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS

          This bill is intended to ensure that victims of childhood sexual 
          abuse are able to seek compensation from those responsible and 
          that those responsible cannot use confidential settlements to 
          hide their horrific acts.  The bill extends the statute of 
          limitations for civil cases involving childhood sexual abuse 
          cases from when the plaintiff reaches 26 years of age to 35 
          years.  Second, this bill prohibits all confidential settlements 
          in cases involving childhood sexual abuse.  Finally, this bill 
          imposes new duties on private entities, which have employees or 
          representatives who are either mandated reporters or work 
          closely with minor children, under the Child Abuse and Neglect 
          Reporting Act (CANRA).  The author writes that the bill is 
          necessary to address "gaps in the law that enable pedophiles to 
          shield their activities.  The best way to stop hidden predators 
          from hurting more children is by identifying them.  The law must 
          be changed to protect children, not child molesters."  The bill 
          is supported by victims and child abuse prevention organizations 
          and trial lawyers.  It is opposed by the California Catholic 
          Conference, which is concerned about the extension of the 








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          statute of limitations and seeks to clarify some of the changes 
          to the CANRA.  The Independent Private Schools of California 
          opposes changes to the CANRA.

           SUMMARY  :  Extends the statute of limitations for civil claims 
          based on childhood sexual abuse, and prohibits confidential 
          settlement agreements in those cases.  Also imposes duties under 
          CANRA to private entities conducting business in California who 
          have employees or members who are either mandated reporters or 
          work closely with minor children.  Specifically,  this bill  :  

          1)Extends the statute of limitations for a civil action against 
            a person or entity based on childhood sexual abuse until the 
            date the plaintiff reaches the age of 35 or within 3 years of 
            when the plaintiff discovers or reasonably should have 
            discovered that psychological injury or illness occurring 
            after the age of majority was caused by sexual abuse, 
            whichever occurs later.

          2)Prohibits confidential settlement agreements in civil actions 
            that are based in whole or in part on an act of childhood 
            sexual abuse.  States that a confidential settlement agreement 
            in any civil action involving childhood sexual abuse that is 
            entered into on or after January 1, 2013 is void as a matter 
            of law and against public policy.  Subjects an attorney who 
            demands a confidential settlement agreement in any civil 
            action involving childhood sexual abuse subject to 
            disciplinary action by the State Bar.

          3)Provides that if a mandated reporter willfully conceals his or 
            her failure to report an incident under CANRA the failure to 
            report is a continuing offense.

          4)States that a private entity employing a mandated reporter 
            shall not impede or inhibit the duties of the mandated 
            reporter.  Defines a "private entity" as "any entity that is 
            registered, incorporated, or has its principal place of 
            business in this state."  Requires any private entity 
            conducting business in California that has employees, members, 
            agents, licensees, or representatives who are either mandated 
            reporters or work directly and in an unaccompanied setting 
            with minor children on more than an incidental and occasional 
            basis or have supervision or disciplinary power over minor 
            children to:








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             a)   Designate an employee to receive complaints of suspected 
               child abuse;
             b)   Implement an internal procedure for employees and other 
               specified individuals to report any incident of suspected 
               child abuse to a designated employee;
             c)   Distribute a written copy of the aforementioned 
               procedure to all employees; and
             d)   Ensure that a mandated report has been made in 
               accordance with statute.

          5)Mandates a private entity conducting business in California 
            that has employees, members, agents, licensees, or 
            representatives who are either mandated reporters or work 
            directly and in an unaccompanied setting with minor children 
            on more than an incidental and occasional basis or have 
            supervision or disciplinary power over minor children to 
            conduct an enhanced background check on those persons.  These 
            enhanced background checks shall include, but are not limited 
            to:

             a)   A past employment check;
             b)   A reference check; and
             c)   A criminal background check.

          6)Provides that a violation of the mandated reporter provisions 
            is a misdemeanor punishable by six months imprisonment in the 
            county jail, a fine of up to $1,000, or both.

           EXISTING LAW  : 

          1)Generally provides that the time for commencing a civil action 
            for damages shall be within two years of the injury or death 
            caused by the wrongful act or neglect of another.  (Code of 
            Civil Procedure Section 340.  All references hereinafter are 
            to this code unless otherwise noted.)

          2)Provides that the time for commencing an action based on 
            injuries resulting from childhood sexual abuse, as defined, 
            shall be eight years after the plaintiff reaches majority 
            (i.e., 26 years of age) or within three years of the date the 
            plaintiff discovers or reasonably should have discovered that 
            the psychological injury or illness occurring after the age of 
            majority was caused by the abuse, whichever occurs later.  








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            (Section 340.1.)

          3)Prohibits a confidential settlement agreement in any civil 
            action the factual foundation for which establishes a cause of 
            action for civil damages for an act that is a felony sex 
            offense.  However, does not apply to bar any of the following: 


             a)   An agreement that requires nondisclosure of the amount 
               paid in settlement of a claim;
             b)   An agreement preventing the defendant or any person 
               acting on the defendant's behalf from disclosing any 
               medical information or personal identifying information 
               regarding the victim of the felony sex offense or of any 
               information revealing the nature of the relationship 
               between the victim and the defendant; and
             c)   Any right of the crime victim to disclose his or her 
               medical information or personal information, or 
               relationship to the defendant.  (Section 1002.)  

          4)Requires that any mandated reporter who has knowledge of, or 
            observes, a child in his or her professional capacity or 
            within the scope of his or her employment whom he or she 
            knows, or reasonably suspects, has been the victim of child 
            abuse shall report that incident immediately, as specified.  
            (Penal Code Section 11166(a).)

          5)Defines a "mandated reporter" under CANRA to include, among 
            others: a teacher; an administrator or employee of a public or 
            private organization whose duties require direct contact and 
            supervision of children; a licensee, an administrator, or an 
            employee of a licensed community care or child day care 
            facility; a public assistance worker; a social worker, 
            probation officer, or parole officer; a physician and surgeon, 
            psychiatrist, psychologist, dentist, resident, intern, 
            podiatrist, chiropractor, licensed nurse, dental hygienist, 
            optometrist, marriage and family therapist, clinical social 
            worker, professional clinical counselor, a child visitation 
            monitor, as defined; and a clergy member, as defined.  (Penal 
            Code Section 11165.7(a).)

          6)Provides that the reporting duties under CANRA are individual, 
            and no supervisor or administrator may impede or inhibit the 
            reporting duties, and no person making a report shall be 








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            subject to any sanctions for making the report.  (Penal Code 
            Section 11166(i)(1).)

          7)Provides that any mandated reporter who fails to report an 
            incident of known or reasonably suspected child abuse or 
            neglect is guilty of a misdemeanor, punishable by up to six 
            months confinement in a county jail, or by a fine of $1,000, 
            or by both imprisonment and fine.  (Penal Code Section 
            11166(c).) 

          8)Provides that volunteers of public or private organizations, 
            except a volunteer of a Court Appointed Special Advocate 
            program, whose duties require direct contact with and 
            supervision of children are not mandated reporters, but are 
            encouraged to obtain training in the identification and 
            reporting of child abuse and neglect and are further 
            encouraged to report known or suspected instances of child 
            abuse or neglect.  (Penal Code Section 11165.7(b).)

          9)Strongly encourages employers to provide their employees who 
            are mandated reporters with training in the duties imposed by 
            CANRA.  Encourages public and private organizations to provide 
            their volunteers whose duties require direct contact with and 
            supervision of children with training in the identification 
            and reporting of child abuse and neglect.  (Penal Code Section 
            11165.7(c), (f).)

           COMMENTS  :  This bill seeks to protect victims of childhood 
          sexual abuse by (1) extending the statute of limitations in 
          these cases; (2) fully prohibiting confidential settlements; and 
          (3) strengthening mandatory reporter laws for private entities 
          whose employees or agents have close interaction with children.  
          This bill was heard in the Public Safety Committee on April 17, 
          2012 and passed on a vote of 4-1.  The Public Safety Committee 
          focused specifically on the provisions of the bill regarding 
          enhancement of mandated reporter laws for private entities.  
          This analysis will focus instead on the extension of the statute 
          of limitations and the limitation on confidential settlements in 
          childhood sexual abuse cases.
           
           According to the author, "Assembly Bill 1628 addresses gaps in 
          the law that enable pedophiles to shield their activities.  The 
          best way to stop hidden predators from hurting more children is 
          by identifying them.  The law must be changed to protect 








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          children, not child molesters."

           Statute of Limitations  :  This bill extends the statute of 
          limitations for a civil action based on childhood sexual abuse 
          until the date the plaintiff reaches the age of 35.  The current 
          civil statute of limitations is essentially until the age of 26 
          (age of majority plus eight years).  There is also a tolling 
          provision for "delayed discovery," which is 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 abuse.  This bill 
          continues to apply the tolling provision to extend the statute 
          of limitations, so a plaintiff may file up to age 35 or within 
          the discovery timeframe, whichever occurs later.

          According to the author:

               Victims of childhood sexual abuse need more than 8 years of 
               the date they attain the age of majority to seek justice 
               against their predator(s) and/or their enablers.  Given the 
               unique nature of sexual molestation, the stigma associated 
               with it, and the likelihood of repressed memories, the 
               current 8 year period favors the molester and not the 
               victim.  Adults with repressed memories many times discover 
               the abuse long after their 26th birthday or without enough 
               time to allow victims to address their own personal 
               childhood molestation and take the next step against their 
               predator in effort to seek closure.

          Adds supporter the California Protective Parents Association:  
          "Lengthening the statute of limitations is needed because it 
          takes many years for a victim to be able to confront an abuser, 
          become strong enough to sue, and gather the emotional resources 
          to file a claim."

          Because of the uniqueness of childhood sexual abuse, the 
          difficulty with remembering and coming to terms with what has 
          occurred and then coming forward timely, many states have 
          special, extended statutes of limitations for childhood sexual 
          abuse.  Four states have gone so far as to eliminate the civil 
          statute of limitations for these cases entirely -- Alaska, 
          Delaware, Florida, and Maine.  Other states allow these actions 
          to be brought within a fixed number of years after a child 
          reaches the age of majority, some of which are rather lengthy, 








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          such as Connecticut's 30 year statute (meaning the victim could 
          be as old as 48).   

          The Legislature has the power to create, extend and change 
          statutes of limitations as it deems appropriate.  For civil 
          statutes of limitations, the United States Supreme Court has 
          long held that:
                     
               Statutes of limitation find their justification in 
               necessity and convenience rather than in logic.  They 
               represent expedients, rather than principles.  . . . They 
               are by definition arbitrary, and their operation does not 
               discriminate against the just and the unjust claim, or the 
               voidable or unavoidable delay. . . .  Their shelter has 
               never been regarded as what now is called a "fundamental 
               right" . . . the history of pleas of limitation shows them 
               to be good only by legislative grace and to be subject to a 
               relatively large degree of legislative control.  (Chase 
               Securities Corp. v.Donaldson (1945) 325 U.S. 304, 314.)

          In general, legislation operates prospectively only, unless 
          specified otherwise.  For statutes of limitations, the 
          California Supreme Court has very recently opined on prospective 
          and retroactive application regarding the precise section of the 
          Code of Civil Procedure that this bill seeks to change:

               As long as the former limitations period has not expired, 
               an enlarged limitations period ordinarily applies and is 
               said to apply prospectively to govern cases that are 
               pending when, or instituted after, the enactment took 
               effect.  This is true even though the underlying conduct 
               that is the subject of the litigation occurred prior to the 
               new enactment. . . .

               However, when it comes to applying amendments that enlarge 
               the limitations period to claims as to which the 
               limitations period has expired before the amendment became 
               law-that is, claims that have lapsed-the analysis is 
               different.  Once a claim has lapsed (under the formerly 
               applicable statute of limitations), revival of the claim is 
               seen as a retroactive application of the law under an 
               enlarged statute of limitations.  Lapsed claims will not be 
               considered revived without express �statutory] language of 
               revival.  (Quarry v. Doe (2012) Cal. LEXIS 2854 1, 14-15 








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               (citations omitted).)

          Since this bill does not contain revival language, it applies 
          prospectively only, governing cases that are pending or have not 
          yet been litigated, but does not work to revive cases where the 
          statute of limitations had run prior to the effective date of 
          this bill.  

           Proposed Author's Amendment  :  However, despite the recent case, 
          the California Catholic Conference is still concerned that the 
          extension of the statute of limitations in the bill could be 
          interpreted to apply retroactively.  Therefore, the author has 
          agreed to the following amendment to clarify that the change 
          does not apply retroactively to revive claims that had 
          previously lapsed:

            Add a new subdivision (r) to Section 340.1:  The amendments to 
            this section, enacted at the 2012 portion of the 2011-12 
            Regular Session, are not intended to revive actions or causes 
            of action as to which the statute of limitations expired on or 
            before December 31, 2012.

           Secret Settlements  :  Current law prohibits a confidential 
          settlement agreement in any civil action the factual foundation 
          for which establishes a cause of action for felony sex offense, 
          but does not bar an agreement that requires nondisclosure of the 
          amount paid in settlement of the claim.  

          This bill prevents any confidential settlements in cases based 
          in whole or in part on acts of childhood sexual abuse, as 
          defined, including confidentiality of amounts paid as part of 
          the settlement.  Moreover, the bill states that a confidential 
          settlement agreement in any civil action involving childhood 
          sexual abuse that is entered into on or after January 1, 2013 is 
          void as a matter of law and against public policy.  As further 
          disincentive, the bill subjects an attorney who demands a 
          confidential settlement agreement in any civil action involving 
          childhood sexual abuse subject to disciplinary action by the 
          State Bar.

          This Bill Is Consistent With Existing Law Restricting Secrecy 
          Regarding Evidence of Elder Abuse:  AB 634 (Steinberg, Chap. 242 
          , Stats. 2003) declared that confidential settlements of civil 
          actions arising under the Elder Abuse and Dependent Adult Civil 








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          Protection Act (EADACPA) were disfavored as a matter of public 
          policy and, therefore, were void, except as specified.  (Code of 
          Civil Procedure Section 2017.310.)  

          This provision would be enhanced by AB 2149 (Butler), which 
          would prohibit a settlement agreement in a civil action brought 
          under EADACPA from containing any provision that prevents any 
          party from reporting to, cooperating with, or otherwise 
          contacting specified government agencies, which is being 
          reconsidered by this Committee today.

          Why Secret Settlements Can Be Especially Dangerous to the Public 
          in the Childhood Sexual Abuse Context:  As has been broadly 
          reported for years in the national and international media, 
          there have been a myriad of articles that have highlighted the 
          sexual abuse scandal engulfing the Roman Catholic Church, 
          including reports of repeated instances in which church leaders 
          allowed priests to stay in their positions despite allegations 
          that the priests were sexually molesting youngsters, or 
          shuffling them from one post to another, where they continued to 
          have contact with children.  It has also been reported that the 
          Church has settled many claims charging sexual abuse by priests 
          on condition that the victims not reveal the abuse or the fact 
          or terms of the settlement.

          The author notes a similar case involving a youth swimming 
          coach.  According to the author, the coach's employer and 
          insurance carrier "entered into a secret agreement with a 
          swimming coach who had been sued for sexually molesting a young 
          teenage swimmer.  Because of the agreement, the name of the 
          coach was never made public.  He consequently went on to molest 
          another underage swimmer."  The author writes that existing law, 
          by applying only cases "the factual foundation for which 
          establishes a cause of action for an act that may be prosecuted 
          as a felony sex offense," may not be broad enough to cover most 
          sexual abuse cases since in "most settlement agreements, the 
          defendant does not make admissions of wrongdoing that would 
          establish the factual foundation."  This bill requires that such 
          cases be settled publically and, as a result, would hopefully 
          prevent abusers from repeatedly sexually assaulting children.

           Arguments in Support  :  In support of the bill, Consumer 
          Attorneys of California writes that this bill will assist the 
          State of California in focusing efforts to avoid childhood 








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          sexual abuse.  

          California Protective Parents Association adds:

               Child sexual abuse is a betrayal that affects children for 
               their entire lives.  The affect on the victim and the cost 
               to society is staggering.  Prevention through careful 
               screening of employees and early intervention through 
               making mandated reporters accountable is crucial.  Equally 
               important is deterring perpetrators through the publicity 
               of civil law suits.  . . .  Secret settlements only 
               encourage perpetrators to offend again. 

          Writes Lawyers Against the Sex Abuse of Children:

               The proposed civil procedure enhancements seek to punish 
               and hold predators and enablers legally responsible for 
               their actions.  By extending the statute of limitations for 
               civil claims involving childhood sexual abuse from 26 years 
               of age to 35 years of age, the state will have successfully 
               financially accounted for an increasing population of sex 
               abuse victims who, due to repressed memories or otherwise, 
               fail to understand or appreciate the damage inflicted upon 
               them until later in their lives.  Additionally, banning so 
               called "secret settlements" of civil claims involving 
               childhood sexual abuse will protect the identity of victims 
                                                                                  while making it illegal for a predator to "buy their way 
               out" of public scrutiny, thus, shedding light on a secret 
               admission of guilt about which the public has a right to 
               know.

           ArgumentS in Opposition  :  The California Catholic Conference 
          opposes the bill for several reasons, but the concern relevant 
          to this Committee regards the extension of the statute of 
          limitations.  Not only is the Conference concerned that the 
          extension will apply prospectively (and the author has agreed to 
          take an amendment to address that concern, discussed above), the 
          group is also troubled by the extension from 26 years of age to 
          35 years.  The California Catholic Conference has also provided 
          the Committee with proposed amendments to severely limit an 
          individual's ability to bring an action after he or she turns 
          26.  

          Independent Private Schools of California opposes the bill's 








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          changes to CANRA, particularly as it applies to volunteers and 
          believes that these changes could result in an increase in 
          erroneous child abuse accusations and that "many non-profits, 
          including many private K-12 schools, may consider dropping their 
          programs and services to children."

           Amendments From Public Safety Committee  :  The Public Safety 
          Committee made several proposed changes to the mandated provider 
          section of the bill that will be taken as author's amendments in 
          this Committee.  These amendments include limiting the enhanced 
          background check and deleting the requirement that the private 
          entity indemnify public entities and maintain liability 
          insurance on behalf of public entities.
                  
           REGISTERED SUPPORT / OPPOSITION  :   

           Support  

          Lawyers Against the Sex Abuse of Children (sponsor)
          California Police Chiefs Association
          California Protective Parents Association
          Child Abuse Listening Mediation
          Child Abuse Prevention Center
          Consumer Attorneys of California
          Crime Victims United of California
          National Center for Victims of Crime
          Safe4 Athletes

           Opposition 
           
          California Catholic Conference
          Independent Private Schools of California


           Analysis Prepared by  :  Leora Gershenzon / JUD. / (916) 319-2334