Bill Text: CA AB1908 | 2025-2026 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Settlement agreements: victims’ compensation funding.

Sponsorship: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2026-06-03 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. [AB1908 Detail]

Download: California-2025-AB1908-Amended.html

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Amended  IN  Senate  June 01, 2026

Amended  IN  Assembly  March 16, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 1908

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Introduced by Assembly Member McKinnor
(Coauthors: Assembly Members Dixon and Zbur)

February 12, 2026

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An act to amend Section 864 664.6 of the Code of Civil Procedure, relating to civil actions. actions, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

AB 1908, as amended, McKinnor. Civil actions: victims’ compensation funding: validating proceedings. Settlement agreements: victims’ compensation funding.

Under existing law, if parties to pending litigation settle the matter, the court may enter judgment pursuant to the terms of the settlement and, upon stipulation by the settling parties, dismiss the settling parties without prejudice while retaining jurisdiction over the parties to enforce the settlement.

This bill would permit the enforcement, pursuant to the above provision and under specified conditions, of a settlement agreement that resolves a tort claim against a local public entity that is eligible for payment from a victims’ compensation fund or other victim-related financial assistance program, as specified.

This bill would declare that it is to take effect immediately as an urgency statute.

Under existing law, bonds, warrants, contracts, obligations, and evidences of indebtedness of a public agency, for the purpose of validating proceedings, are deemed to be in existence upon their authorization, as specified.

This bill would provide that the obligations described above include a victims’ compensation fund, established to address payments to settle or pay awards to victims of childhood sexual assault, as specified, which is authorized as of the date the establishment of such a fund via adoption of a resolution or ordinance by a county board of supervisors. The bill would provide that, for purposes of determining the validity of refunding bonds to refund a tort action judgment entered against a public agency, as specified, indebtedness is deemed to be in existence on the date of adoption by the governing body of the public agency of a resolution ordinance, as specified. The bill would provide that whether a tort action judgment or settlement or a victims’ compensation fund is deemed to be in existence is not contingent on the timing of the commencement of a tort action, the court’s issuance of a judgment, the entry into a settlement, or the victims’ compensation fund’s claim period.

Digest Key

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 664.6 of the Code of Civil Procedure is amended to read:

664.6.

 (a) If parties to pending litigation stipulate, in a writing signed by the parties outside of the presence of the court or orally before the court, for settlement of the case, or part thereof, the court, upon motion, may enter judgment pursuant to the terms of the settlement. If the parties to the settlement agreement or their counsel stipulate in writing or orally before the court, the court may dismiss the case as to the settling parties without prejudice and retain jurisdiction over the parties to enforce the settlement until performance in full of the terms of the settlement.

(b) For purposes of this section, a writing is signed by a party if it is signed by any of the following:

(1) The party.

(2) An attorney who represents the party.

(3) If an insurer is defending and indemnifying a party to the action, an agent who is authorized in writing by the insurer to sign on the party’s behalf. This paragraph does not apply if the party whom the insurer is defending would be liable under the terms of the settlement for any amount above the policy limits.

(c) Paragraphs (2) and (3) of subdivision (b) do not apply in a civil harassment action, an action brought pursuant to the Family Code, an action brought pursuant to the Probate Code, or a matter that is being adjudicated in a juvenile court or a dependency court.

(d) In addition to any available civil remedies, an attorney who signs a writing on behalf of a party pursuant to subdivision (b) without the party’s express authorization shall, absent good cause, be subject to professional discipline.

(e) (1) If a plaintiff, cross-complainant, or other party seeking affirmative relief has filed a notice of conditional settlement, the court may, upon its own motion, without stipulation from the parties or their counsel, set an order to show cause as to why the court should not dismiss the entire action without prejudice and retain jurisdiction to enforce the settlement.

(2) This subdivision does not apply to actions brought pursuant to Chapter 5 of Title 3 of Part 2 of the Code of Civil Procedure (commencing with Section 378) and Part 13 of Division 2 of the Labor Code (commencing with Section 2698).

(f) If the Court enters judgment or dismisses the case without prejudice pursuant to this section, the following shall apply:

(1) A party may file a motion or other document pertaining to the settlement, including an application for determination of good faith settlement, a motion for the reduction or determination of a lien, a petition related to the compromise of the claim of a minor or person with a disability, or, if the terms of a settlement are not performed, a motion based upon such terms. Responsive filings and related documents may also be filed.

(2) The court shall exercise its retained jurisdiction if a party files a notice that a written settlement agreement required of all parties was not signed by all parties.

(3) A party who has paid a first appearance fee shall not be assessed a first appearance fee again for filing a motion, notice or other document pertaining to the settlement after entry of judgment or dismissal without prejudice.

(4) The clerk of the court shall accept any motion, notice, or other document properly filed by a party after entry of judgment or dismissal without prejudice.

(g) Nothing in this section shall preclude a party from filing a request for dismissal with prejudice after the court has dismissed the case without prejudice pursuant to this section.

(h)On or before January 1, 2025, the Judicial Council shall update or develop new forms or Rules of Court as necessary to implement this section.

(i)This section shall become operative on January 1, 2025.

(h) (1) This subdivision applies to a settlement agreement resolving a tort claim against a local public entity if both of the following conditions are satisfied:

(A) A civil action arising from the tort claim has not yet been filed or has been voluntarily withdrawn by the plaintiff.

(B) The claim is eligible for payment from a victims’ compensation fund or other victim-related financial assistance program established by the local public entity.

(2) A settlement agreement described in paragraph (1) may be enforced in a subsequent action under this section if both of the following conditions are satisfied:

(A) The agreement is in a writing signed by the claimant and the local public entity or its authorized representatives.

(B) The agreement expressly states that it is enforceable pursuant to this section.

(3) For purposes of this subdivision, “local public entity” has the same meaning as provided in Section 970 of the Government Code.

SEC. 2.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to provide urgent and vital relief to victims eligible for compensation from a victims’ compensation fund or other victim-related financial assistance program, it is necessary that this act take effect immediately.

SECTION 1.Section 864 of the Code of Civil Procedure is amended to read:

864.

(a)(1)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.

(2)For purposes of this chapter, an obligation for purposes of subdivision (a) includes a victims’ compensation fund. For purposes of this chapter, a “victims’ compensation fund” is a fund established to address payments to settle or pay awards to victims of childhood sexual assault, including to compensate victims pursuant to the operation of the fund. The obligation shall be deemed authorized as of the date of adoption by a county board of supervisors of a resolution or ordinance establishing the fund.

(b)(1)(A)A tort action judgment or settlement agreement, or victims’compensation fund and the related bonds, bond related documents, credit reimbursement, or other agreement shall be deemed to be in existence as of the date of adoption by a public agency’s governing body of a resolution or ordinance pursuant to subdivision (a), without regard to any of the following:

(i)The date on which a party files a tort action or the court enters a final judgment therein.

(ii)The date on which the public agency enters into a settlement agreement.

(iii)Whether the effectiveness of a settlement agreement entered into by the public agency is contingent on any condition precedent, including, but not limited to, a determination on the validity of bonds pursuant to this chapter.

(iv)Whether the victims’compensation fund claim period has expired, or whether the fund has issued all compensation or made all other applicable claim determinations.

(B)Subparagraph (A) applies when determining either of the following:

(i)The validity pursuant to this chapter of any issuance or proposed issuance of refunding bonds pursuant to Articles 10 (commencing with Section 53570) and 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, or any other law, to finance or refinance one or more of a tort action judgment or settlement, or victims’ compensation fund.

(ii)The validity of any proceeding taken or proposed to be taken in a resolution or ordinance adopted by a public agency’s governing body for the authorization, issuance, sale, and delivery of a bond, including any contracts or agreements providing for the issuance, security or payment of a bond, or the use of the proceeds of a bond, and any credit reimbursement or other agreement entered into or to be entered into in connection therewith.

(C)Notwithstanding subparagraph (A), bond proceeds validated pursuant to this chapter shall not be used to fund a judgment or settlement agreement before the court orders the judgment against the public agency or the public agency enters into the settlement agreement and it is effective, as applicable.

(2)This subdivision applies to actions brought pursuant to this chapter to determine the validity of any issuance or proposed issuance of bonds to finance or refinance any of the following:

(A)One or more tort judgments that have not yet been entered against the public agency by the applicable court.

(B)One or more tort settlement agreements that have not yet been entered into by the public agency.

(C)One or more tort settlement agreements entered into by the public agency whose effectiveness is contingent on any condition precedent.

(D)A victims’compensation fund established by a county.

(3)For purposes of this subdivision, “tort action judgment or settlement” includes both of the following:

(A)A judgment entered against a public agency by one or more state or federal courts.

(B)A tort action settlement agreement entered into by a public agency.