Governor signs AB 218 compromise, more work still needed.

In the final days of the legislative session, the Legislature announced that it had reached a deal to help address the financial impacts of childhood sexual assault cases on public entities, including local educational agencies (LEAs). The deal comes after warnings from both LEAs and the Fiscal Crisis & Management Assistance Team (FCMAT) that the settlements and judgements in decades old claims being brought forth against schools could ultimately lead to districts going into state receivership.

The deal, which was amended into SB 577, is also the culmination of two years of effort by Senator John Laird (D-Santa Cruz), the current Senate Budget Committee Chair and former Chair of the Senate Budget Subcommittee on Education, to strike the balance between protecting victims and helping public agencies mitigate catastrophic fiscal judgements.

While the agreement was touted as a compromise, concerns remained from public agency advocates even after the deal was announced. While the bill puts in place higher evidentiary standards for older plaintiffs and provide additional ways for LEAs to pay their debts, many education groups argued that the bill’s provisions do not go far enough and will actually do very little to address the financial impacts at the core of the need for reform. Public entity advocates had pushed for a cap on damages in these older cases, arguing that funding should be going to today’s students and classrooms not plaintiff attorney firms. However, these efforts were met with pushback from victim rights groups, who oppose any limit on the ability of a victim to recoup damages for the harm suffered.

While Governor Newsom did sign SB 577, he also acknowledged more work needs to be done. In a rare signing message accompanying his signature, the Governor wrote:

This measure attempts to thread the needle of protecting and compensating children from vile and inhumane treatment, while simultaneously ensuring our most important public institutions do not crumble under the threat of oppressive, and in some cases outright fraudulent claims of abuse…This measure represents an important and necessary first step toward reform…but I implore the Legislature to continue to make changes to further address this untenable situation.

Additional evidentiary requirements for older cases

For cases brought against a public entity on or after January 1, 2026 in which the plaintiff is 40 years of age or older at the time of filing, SB 577 now requires a plaintiff to prove both of the following by clear and convincing evidence:

• That the public entity knew of the misconduct that resulted in childhood sexual assault by an employee, volunteer, representative, or agent, and the public entity failed to take reasonable steps or to implement reasonable safeguards to avoid acts of childhood sexual assault.
• That the public entity negligently discharged a mandatory duty.

This higher standard is applicable to actions brought on or after January 1, 2026 but does not apply to actions where a judgment has already been entered or which is already subject to a final settlement.

While these changes impose a higher burden of proof on these cases, they also only come into play if a case goes to trial. As many of these cases have historically been settled instead of going to trial, it is not yet clear if this will actually help address the financial impact of these claims on public agencies.

Shorter filing window after discovery of damages

Current law allows an action to be brought for recovery of damages suffered as the result of childhood sexual assault that occurred prior to January 1, 2024, until the plaintiff is 40 years old, or within five years of the date the plaintiff discovers or reasonably should have discovered psychological injury or illness caused by the sexual assault. SB 577 narrows the window after discovery to three years.

Changes to damages

SB 577 would make a number of changes to the damages available to plaintiffs in childhood sexual assault cases.

Request to lower damages

The bill requires a court, if a plaintiff is 40 years of age or older at the time of filing, to consider the following factors when evaluating a motion by a defendant to lower a jury award:

• The mission of the public entity to provide public services and how the damages may impact that entity’s mission given its economic status.
• Whether the amount awarded is compensatory for the plaintiff’s harm.
• Whether the amount awarded is acting as a substitute for or functional equivalent of punitive damages.
• The severity of the harm to the plaintiff.
• The egregiousness of the defendant’s conduct.

In such cases, the court also retains the ability to make approval of lower damages contingent on the plaintiff’s consent to a reduction to the judgement.

Comparative fault

SB 577 provides that, for any action filed on or after January 1, 2027 that alleges personal injury, property damage, or wrongful death against a public entity, each public entity defendant will only be

liable for the amount of damages allocated to that public entity in direct proportion to that entity’s percentage of fault. However, this “comparative fault” will only apply if a public entity is found to be no more than 15% at fault.

Treble damages

The bill removes the current ability of a plaintiff, if they are able to prove their sexual assault was the result of a cover-up, to recover treble damages from a defendant that is a public entity.

Limitation on refiling dismissed cases

The bill prohibits an action against an entity (1) who owed a duty of care to a plaintiff where a wrongful or negligent act by that entity caused the childhood sexual assault or (2) where an intentional act by that entity caused a childhood sexual assault, from being refiled if it was dismissed without prejudice and five years or more have passed since the original filing date of the action.

Payment of damages

SB 577 includes changes to the funding mechanisms available to LEAs in addressing their debts.

State and local intercept

SB 577 establishes a new “intercept” mechanism intended to help school agencies (districts, county offices of educations (COEs), community college districts, or educational joint powers authority (JPA)) finance debt by requesting part of their state and/or local apportionments be used to pay it down.

In order to participate in a state or local intercept, the LEA must do all of the following:

• Elect to participate by a governing board action. For a local intercept, the LEA must send a request to the appropriate county fiscal officer for the county to participate and the county may choose whether or not to do so.
• For a state intercept, provide written notice to the State Controller and the State Superintendent of Public Instruction (SPI) of the LEA’s election to participate in an intercept, a schedule of payments subject to that election, the payee(s) of those payments, and payment delivery instructions. For a local intercept, this notice must instead be provided to the appropriate county fiscal officer. In both cases, the notice must be provided no later than the issuance of the public debt obligation or 60 days before the next payment, whichever is later.

While this new mechanism may make the debt easier to tackle and could help with cash flow, it does not ultimately provide relief from sometimes devastating payouts.

Extended period of lease financing

The bill extends the maximum length of lease financing for an emergency apportionment to a school district from 20 to 30 years. The length of the lease will now be determined by the Department of

Finance (DOF), in consultation with the school district, county superintendent of schools, the SPI, and FCMAT, and also take into account the amount of the lease, the district’s realistic ability to meet the annual repayment obligation, and the district’s educational program and service needs.

New code of conduct

SB 577 declares the Legislature’s intent that public entities serving minors “take active measures to prevent violence against, and the sexual assault or exploitation of, minors under their care or custody.” To this end, the bill requires, on or before December 1, 2027, LEAs and local governmental bodies to adopt codes of conduct and a sexual assault prevention plan that promote a safe environment for minors and that do both of the following:

• Explicitly address professional boundaries between employees and adult volunteers and minors, among and between minors, and among and between adults who are employed by, volunteering at, or under contract with the LEA or local governmental body.
• Establish appropriate limits on contact during or outside of normal hours of operation between minors and employees, volunteers, and contractors via social media platforms, text messaging, and other forms of communication that do not otherwise include the minor’s parent, legal guardian, or caregiver. These policies may vary the limitations based on the age, developmental level, or grade of the minor.

As you may remember, last years’ SB 848 already required LEA governing bodies to adopt very similar policies, specific to students, by July 1, 2026. It is unclear from the language of SB 577 if the polices required under SB 848 would satisfy the requirements under SB 577 or if an LEA will need to adopt additional policies by December 1, 2027.

In addition to this code of conduct, SB 577 requires LEAs and local governmental bodies to adopt written policies, plans, or specifications outlining how grooming and sexual abuse concerns and risks will be reported.

LEAs are also required to ensure that their comprehensive school safety plans are consistent with the policies required to be adopted under SB 577. Compliance with these requirements will also be added to the K-12 Audit Guide beginning with the 2027-28 fiscal year. The State Controller is required to report an audit finding of noncompliance to the Attorney General (AG), who would then have the authority to investigate the LEA for noncompliance.

Fraudulent Claims

The bill imposes a $25,000 civil penalty (per violation) on any attorney who is found by a judicial officer to have brought or maintained a civil claim alleging childhood sexual assault in bad faith.

Other Provisions

The bill also tasks various state agencies with developing additional safety precautions for vulnerable children:

• The Office of Youth and Community Restoration and Board of State and Community Corrections must develop a plan to establish an oversight structure that ensures protections for youth in juvenile halls, camps, and secure youth treatment facilities.
• The State Foster Care Ombudsperson must develop a plan to strengthen independent oversight and protections for foster youth at risk of sexual abuse, grooming, exploitation, trafficking, or retaliation.
• The Department of Social Services (DSS) must issue guidance to children’s residential facilities, identifying best practices for preventing sexual abuse.

State to conduct wholistic review of school safety plan process and requirements.

In recent years, the Comprehensive School Safety Plans (CSSP) has become the place for legislators to add new requirements for schools, often times ones that have only a tangential relationship to school safety. In response to concerns that the CSSP is becoming unruly, Assembly Member Al Muratsuchi (D-Torrance) introduced, and the Governor signed, AB 1721, which requires the new Education Commissioner to develop recommendations on the development and approval process for school safety plans.

As the bill states in its findings and declarations:

The legislature has responded to emerging safety issues by requiring schools to be prepared to respond. These new requirements, while critical, have been imposed without a formal review of the best way to ensure comprehensive school safety plans retain their focus…Following the addition of these new requirements for a comprehensive school safety plan over the last few years, there is a need to have experts review all the requirements for comprehensive school safety plans, conduct a thorough assessment, and make recommendations to policymakers on how to improve the plans while maintaining all critical elements.

The Commissioner’s recommendations must be developed in consultation with the State Board of Education (SBE) and interest holders, including schoolsite administrators, teachers, parents, students, and local law enforcement agencies. They must also include recommendations on all the following:

• Improvements to the structure, organization, and layout of a plan to ensure it captures critical elements and is accessible and useful for schoolsite staff and the community, including parents and law enforcement.
• Improvements to the local development and approval process to ensure that it is transparent and includes sufficient opportunity for input from interest holders.
• Procedures for the addition or deletion of elements of a plan to ensure continued cohesion and accessibility.

The Commissioner must submit its recommendations to the DOF and the Legislature by July 1, 2028.

Updated firearm notice required in back-to-school packets.

Under AB 1943 (Gipson, D-Carson), LEAs will now be required to send a notification, to be developed by the California Department of Education (CDE), to all parents on “the importance of practicing secure firearm storage in all homes in which firearms are present.” LEAs are already required to send a notice to parents about the state’s child access prevention laws and laws relating to the safe storage or firearms. AB 1943 renames this notice the “Secure Firearm Storage Notification” (Notification) and requires it include the following information:

• A description of the risks of children accessing unsecured firearms in the home.
• Information and resources about the importance of secure firearm storage for preventing youth firearm suicide and preventing children and teens from accessing guns and bringing them to school.
• A plain language summary of California’s access prevention laws and laws relating to the secure storage of firearms.
• The website address for the Department of Justices’s (DOJ’s) Roster of Firearm Safety Devices Certified for Sale.

CDE is required to develop model language for the updated Notification by July 1, 2027, as well as post the model language on its website. CDE will also be required to update this language, as necessary, beginning July 1, 2028 and annually thereafter.

Similar to its predecessor, this updated Notification must be provided annually at the beginning of the first semester or quarter of the regular school term but AB 1943 specifies that the notice must be in writing. The bill also encourages LEAs to share the information included in the Notification through multiple mediums, including the LEA’s website and social media accounts. To help with this, CDE, by July 1, 2027, must provide LEAs with formatting and content options for sharing the Notification on their website and posting other relevant information and resources using other digital formats.

Additionally, under current law, CDE developed and posted best practices regarding school shooters or other armed assailant drills. AB 1943 requires, on or before July 1, 2027, for CDE to include in these best practices (1) the distribution of the Notification when providing advanced notice of a drill to parents and (2) a recommendation to post the Notification on the LEA’s website. CDE is also required to encourage LEAs to adopt a policy and practice of providing the Notification to parents and guardians when otherwise providing those parties notice of disciplinary actions or supports given related to threats against other students of threats of self-harm.

New “sextortion” posters to be required at all middle and high schools.

Beginning with the 2027-28 school year, AB 2242 (Davies, R-Laguna Niguel) requires LEAs serving grades 7-12 to display at each of its schoolsites serving those grades, a legible, informational poster on sextortion. The bill defines “sextortion” as “the threat to use sexual or intimate images or videos, however obtained, to compel another person to produce sexual or intimate images or videos, engage in sexual acts, or provide anything in value.”

This new poster must include (1) an age-appropriate description of sextortion, (2) contact information for local, states and federal law enforcement in order to report, and seek assistance related to, sextortion, (3) contact information for the 988 Suicide and Crisis Lifeline, and (4) the URL or other similar resources to identify the website for informational and support resources regarding online enticement provided by the National Center for Missing and Exploited Children (or any federally funded successor entity).

The poster must be at least 12 by 18 inches and be posted in at least one men’s restroom, one women’s restroom, and one all-gender restroom used by students. It must also be printed in English as well as any primary language other than English that is spoken by at least 15% of students enrolled at the schoolsite. To help with implementation, CDE must, by July 1, 2027, develop and post on its website a model template for the poster.

AB 2242 also builds on a bill signed in 2024 (AB 2932, Chapter 118), which requires the Instructional Quality Commission to consider adding content on sextortion the next time it revises the Health Education Curriculum Framework. While schools wait for the Health Framework to next be revised, AB 2242 ensures students will still have access to this information in the meantime.

As the author stated in explaining in the need for the bill:

Our children are facing a digital crisis where “sextortion” and technology-facilitated harassment are devastating lives in the shadows of our schools…AB 2242 meets students where they are by placing life-saving information and reporting resources in the private, high-traffic areas of restrooms… we must act now to transform our schools from passive observers into proactive shields against the predators who weaponize technology to target youth.

The Governor signed the following school safety bills:

Child Abuse

• AB 1688 (Carrillo) – Child abuse or neglect: reporting.

  This bill requires, if a county welfare agency substantiates a report of abuse or neglect for an incident that occurred in an out-of-home placement or if a child is removed from an out-of-home placement due to abuse or neglect, the agency to send notice, within 36 hours, of the report to the attorney who represents a parent or legal guardian of the child in dependency court and, in the case of an Indian child, the tribal representative. The bill requires notice be given to all attorneys who represent a child with an open dependency case in the out-of-home placement where the incident occurred.

  Chapter 888, Statutes of 2026

• SB 557 (Hurtado) – Child abuse: family resource centers.

  Current law authorizes a county to establish a child abuse multidisciplinary personnel team within that county to allow provider agencies to share confidential information in order for provider agencies to

  investigate reports of suspected child abuse or neglect, or for the purpose of child welfare agencies making a detention determination. Current law also specifies that this team may include a representative of a local child abuse prevention council or family-strengthening organization, including, but not limited to, a family resource center. This bill modifies the definition of “family resource center” for this purpose to mean a family-friendly entity serving as a hub for multigenerational, family-centered, and family-strengthening support services that are provided at no cost or low cost to participants, embedded in communities, culturally sensitive, reflective of, and responsive to, community needs and interests and build communities of peer support for families. A family resource center must also include cross-system collaboration to assist in transforming families and communities through reciprocity, development of social connections that reduce isolation and stress, and asset development based on impact-driven and evidence-informed approaches with the goal of preventing child abuse and neglect and strengthening children and families.

  Chapter 125, Statutes of 2026

• SB 577 (Laird) – Public entities.

  SB 577 makes various changes regarding childhood sexual assault cases brought against public entities, including changing the evidentiary requirements for older plaintiffs, modifying the types of damages available, and imposing penalties on attorneys who bring bad faith claims. Additionally, the bill requires, by December 1, 2027, for LEAs and other local governmental bodies to adopt codes of conduct and a sexual assault prevention plan that promotes a safe environment for minors and which explicitly address professional boundaries and establish appropriate limits on contact during or outside normal hours of operation between minors and school employees, volunteers and contractors. The bill also makes changes to the funding mechanisms available to LEAs in addressing their debts by creating a new “intercept” mechanism to allows LEAs to finance debt by requesting part of their state and/or local appropriation be used to pay it down and extending the maximum length of lease financing for an emergency apportionment to a school district from 20 to 30 years. LEAs should ensure their board policies, comply with the new requirements regarding a code of conduct and sexual assault prevention plan.

  Important Dates:

  • December 1, 2027 – LEAs and local governmental bodies must adopt a code of conduct and sexual assault prevention plan.

  Chapter 971, Statutes of 2026

Drugs

• AB 1586 (Ramos) – Opioid overdose reversal medication: school resource officers.

  AB 1586, commencing with the 2027–28 school year, requires a school resource officer (SRO) to, upon assignment to a schoolsite, and at least every 2 years thereafter, complete an opioid overdose recognition and response training. The bill also requires an SRO to report, on or before July 1, 2028, and annually thereafter until July 1, 2030, to the California Department of Public Health (CDPH) (1) the number of units of opioid antagonists received, (2) the number of times the SRO administered an opioid antagonist while serving at a schoolsite, (3) the number of times the SRO needed an opioid

  antagonist but did not have one available, (4) the types of opioid antagonist received and administered, (5) the name and contact information of the SRO and the individual completing the report, and (6) schoolsite information.

  Important Dates:

  • July 1, 2028 – July 1, 2030 – SROs required to annually report to CDPH information about the administration of opioid antagonists on schoolsites.

  Chapter 268, Statutes of 2026

Guns

• AB 1943 (Gipson) – Pupil safety: notifications: firearms.

  Existing law requires an LEA to annually inform parents and guardians of pupils at the beginning of the first semester or quarter of the regular school term of California’s child access prevention laws and laws relating to the safe storage of firearms. This bill revises and recasts this requirement by, among other things, renaming the notice as the “Secure Firearm Storage Notification” (Notification) and requiring it to also include specific information about the risks of children accessing unsecured firearms in the home. The bill also requires CDE, by July 1, 2027, to develop model language for this updated notice and post it on its website. Additionally, CDE is required on or before July 1, 2027, to update its best practices pertaining to school shooter or other armed assailant drills to also include distributing the Notification published by CDE when providing advanced notice of a drill to parents and guardians and a recommendation that LEAs post the notice on their website.

  Important Dates:

  • July 1, 2027 – Date by which CDE must update (1) the model language for the Notification and (2) its best practices on school shooter and other armed assailant drills.

  Chapter 459, Statutes of 2026

School Safety

• AB 767 (Alanis) – Sexually violent predators: schools.

  Existing law generally requires a sexually violent predator who has been released to be placed in their county of domicile prior to their incarceration unless extraordinary circumstances exist requiring placement outside the county but prohibits them from being placed within 1/4 mile of any public or private school if the person has previously been convicted of specified sexual misconduct of a child or if the court finds that the person has a history of improper sexual conduct with children. AB 767 expands the areas in which a sexually violent predator may not reside to also include within 1/4 mile of a child daycare facility. The bill also defines “private school” for the purpose of this prohibition to mean a facility or home that has filed a private school affidavit with CDE, provides private school instruction to any student between 6 to 18 years of age, and is publicly listed on CDE’s directory.

  Chapter 266, Statutes of 2026

• AB 1569 (Davies) – Pupil safety: electric bicycle: safety and training program.

  This bill requires, on or before March 1, 2028, CDE, in consultation with the Department of the California Highway Patrol, to develop a standardized electric bicycle safety and training program for pupils in grades 7 to 12. The training program must include an online component consisting of instructional videos and a knowledge-based comprehensive assessment covering rules of the road, operating differences between the classes of electric bikes, required safety equipment, and the civil and criminal implications of operating noncompliant electric bicycles that exceed legal speed limits. The bill then encourages, but does not require, LEAs and parent organizations to offer training demonstrations to students and parents on electric bicycle operations in collaboration with local law enforcement agencies or local governments.

  Important Dates:

  • March 1, 2028 – CDE must develop a standardized elective bicycle safety and training for grades 7-12.

  Chapter 128, Statutes of 2026

• AB 2242 (Davies) – Pupil safety: sextortion informational poster.

  This bill requires, on or before the start of the 2027-28 school year, LEAs that maintain any combination of grades 7 to 12 to display at each schoolsite a poster that is at least 12 by 18 inches that contains information relating to sextortion, including, among other information, an age-appropriate description of sextortion, and contact information for local, state, and federal law enforcement for purposes of reporting or seeking assistance relating to sextortion. The poster must be posted in at least one men’s restroom, one women’s restroom, and one all-gender restroom used by students and be printed in both English and a primary language other than English that is spoken by at least 15% of students enrolled at the schoolsite. CDE is required by July 1, 2027 to develop and post on its website a model template of this poster.

  Important Dates:

  • July 1, 2027 – CDE must post a model template for sextortion poster.
  • Beginning 2027-28 school year – LEAs must post sextortion poster at each schoolsite, in at least one men’s restroom, one women’s restroom, and one gender-neutral restroom.

  Chapter 592, Statutes of 2026

• SB 1140 (Ashby) – Pupil safety: limiting school access to unauthorized individuals.

  SB 1140 requires the governing board or body of an LEA to ensure that the contract or contracts for any construction project taking place during school hours, include security provisions that limit access to the construction site and keep unauthorized individuals off school property. LEAs should ensure their board policies, specifically those around contracts, comply with the new requirements.

  Chapter 421, Statutes of 2026

• SB 1148 (Niello) – Security guards: training.

  Existing law requires a person to complete a course in the exercise of the power to arrest and the appropriate use of force as a condition of registration as a security guard and requires a registered

  security guard to complete training in security officer skills within 6 months from the date an initial registration is issued. SB 1148 authorizes applicants planning to become registered as a security guard or proprietary private security officer with the Bureau of Security and Investigative Services to complete all 40 hours of required training before their registration is issued.

  Chapter 1011, Statutes of 2026

School Safety Plans

• AB 1721 (Muratsuchi) – Pupil safety: comprehensive school safety plans.

  This bill requires the Education Commissioner, in consultation with the SBE and interest holders, to review existing CSSP and develop recommendations on the development and approval processes for these plans. This review must include defining the goals and purposes of a school safety plan, reviewing the required elements of a plan and assessing the elements’ alignment with the goals and purpose of a plan, and reviewing the development and adoption process of a plan. The Commissioner is then required, by July 1, 2028, to submit a report on its recommendations for improving the structure, organization, layout, and local development and approval processes for school safety plans to the DOF and Legislature.

  Important Dates:

  • July 1, 2028 – Education Commissioner must submit its recommendations to the DOF and Legislature.

  Chapter 373, Statutes of 2026

Capitol Advisors Group has produced a set of comprehensive client briefs detailing new education laws that were passed by the Legislature and signed into law by Governor Newsom in 2026. Each brief is organized by subject area and includes an executive summary highlighting major changes we think you should know about. Bills signed by the Governor take effect on January 1, 2027, unless the bill specifically states otherwise.