Committee approves bill to add guardian ad litem and review protections for structured‑settlement buyouts

The Senate Conservation Committee recommended passage of SB282, which seeks to strengthen court review and protections when structured settlements are sold to third parties.

Sponsor Senator Joseph Cervantes and Kelly Stout Sanchez described recurring cases in which companies buy the right to long‑term settlement payments at steep discounts. Stout Sanchez gave an example in which a structured annuity that would pay roughly $500 a month for 30 years (totaling an expected lifetime benefit of about $200,000) was purchased by a company for $28,500. She said courts already require a hearing to approve sales of structured settlements but judges often lack the time or financial expertise to thoroughly evaluate whether a proposed buyout serves a vulnerable seller.

SB282 would require the court to appoint a guardian ad litem to represent the interests of the person selling a structured settlement and permit the guardian to hire experts, such as a CPA. The bill directs that reasonable fees and costs for the guardian ad litem be borne by the transferee (the purchasing company) to the extent the court orders it. Supporters framed the measure as a proportional protection for vulnerable sellers, including minors and adults with disabilities; opponents did not appear at the hearing. Senator Wirth and other committee members praised the proposal as a measured approach that preserves judicial discretion while adding expertise to review buyouts.

The committee approved a due‑pass motion and sent SB282 forward.