Legislative analysts warn of large, uncertain exposure from Child Victims Act claims
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Summary
Legislative Services told the committee about roughly 12,000 claims filed under the Child Victims Act, with pre-deadline claims capped at $890,000 and a significant, unresolved litigation expense; staff reported an $8 million deficiency for defense costs and no settled approach yet.
Senators pressed Legislative Services on the fiscal exposure created by claims filed under the Child Victims Act.
David Romans said roughly 12,000 claims were filed before the statutory deadline and that claims filed before 06/01/2025 are capped at $890,000 per occurrence. He noted other claims filed after that date are subject to a lower cap (discussed during the hearing as $400,000) and that the state's maximum potential liability could be substantial when multiplied by the number of claims.
Romans said the Attorney General's Office defends the claims, the state has hired outside counsel and the budget contains an $8,000,000 deficiency to cover related legal costs. He said there was discussion last year about using a special-master settlement process to expedite claims and reduce legal costs but that no settlement plan had been reached.
Senators asked whether the number of claims filed after the deadline was known; Romans said he did not have that figure and that litigation exposure remains uncertain. He and senators agreed the claims present a significant fiscal-management challenge for future budgets.