Senate committee backs SB282 to require guardian ad litem for structured‑settlement buyouts

The Senate Judiciary Committee voted to advance SB282, a bill intended to strengthen court review when a person seeks to sell the right to receive payments under a structured settlement. Sponsor Senator Cervantes and counsel described transactions in which firms buy long‑term payment streams at deep discounts from vulnerable people; SB282 would require a court to appoint a guardian ad litem (or similar financial advisor) to advise the court before approving a transfer, and the transferee (buyer) would generally pay the guardian’s reasonable costs.

Sponsor testimony and examples cited by advocates showed cases where companies offered single‑sum buyouts worth far less than the present or actuarial value of the lifetime payments. The bill does not ban transfers; instead it creates a more rigorous, supervised process on court review. The guardian ad litem may engage a certified public accountant or financial professional to analyze the transaction, and the proposed statute sets deadlines and notice requirements so courts and interested parties can review proposed sales before hearings.

Committee supporters said the change balances consumer protection with individual autonomy: courts will retain the final authority to approve or deny a transfer, but a guardian and independent financial review will help judges understand long‑term financial consequences for vulnerable sellers such as minors, people with disabilities, or those with cognitive or substance‑use issues.

Senators on the committee questioned how often the transfers occur and whether court capacity would be sufficient to add the new review step. Sponsors said transfers happen with regularity and that courts already hold hearings under current law; SB282 would add financial expertise and require the buyer to fund the cost of the review subject to the court’s discretion.

Action: Committee gave SB282 a due‑pass recommendation to the next stage of the process.