Settlement agreements: victims' compensation funding.

In subdivision (f) of Section 664.6, 'the following shall apply' was changed to 'the following apply,' removing the mandatory 'shall' in favor of a more neutral phrasing. This is a drafting style change with no practical effect on the legal obligations described.

The entire amendment to Section 864 of the Code of Civil Procedure was deleted. This section had provided that victims' compensation funds are deemed in existence upon adoption of a resolution or ordinance by a county board of supervisors, established rules for when tort judgments and settlements are deemed in existence for purposes of validating refunding bonds, and set conditions under which bond proceeds could be used to fund judgments or settlements.

The legislative counsel's digest was shortened to remove all references to validating proceedings, bonds, warrants, contracts, and obligations of public agencies, reflecting the removal of the Section 864 amendment.

Removed provisions that would have allowed local public entities to issue or refinance bonds to finance or refinance victims' compensation funds and related tort settlements, including rules about when such bonds are deemed valid regardless of whether a tort action has been filed, a judgment entered, or a settlement executed.

The bill title was corrected from 'Section 864 664.6' to just 'Section 664.6,' fixing a drafting error that listed both section numbers in the enacting clause.

Added a new section (CCP 664.6) creating a comprehensive settlement enforcement framework. Courts may enter judgment on settlement terms and dismiss cases without prejudice while retaining jurisdiction to enforce settlements. Includes rules on who may sign settlement writings (parties, attorneys, insurer agents), exclusions for family law, probate, juvenile, and harassment matters, and professional discipline for unauthorized attorney signatures.

Added subdivision (h) of new CCP 664.6 specifically permitting enforcement of settlement agreements resolving tort claims against local public entities when: (1) no civil action has been filed or it was voluntarily withdrawn, AND (2) the claim is eligible for payment from a victims' compensation fund or other victim-related financial assistance program. The agreement must be in writing, signed by both parties, and expressly state it is enforceable under this section.

Added an urgency declaration (Section 2) making the act effective immediately upon approval, citing the need for urgent relief to victims eligible for compensation from victims' compensation funds.

Added a directive requiring the Judicial Council to update or develop new forms and Rules of Court by January 1, 2025, with the section becoming operative on that date.

Removed the technical, nonsubstantive amendment to CCP Section 340 (one-year statute of limitations provision).

Changed the vote requirement from a simple majority to a two-thirds vote, indicating the bill now requires supermajority approval in each chamber.

Entirely new Section 1 amending Code of Civil Procedure Section 864 (validating proceedings) was added. The bill now covers validation of bonds, warrants, contracts, and obligations of public agencies, not just a technical fix to the statute of limitations.

The original technical amendment to Section 340 (statute of limitations for libel, slander, etc.) was renumbered from Section 1 to Section 2 and is now a secondary provision rather than the sole purpose of the bill.

Defines a 'victims' compensation fund' as a fund established to address payments to settle or pay awards to victims of childhood sexual assault, including compensation pursuant to the operation of the fund.

Provides that victims' compensation funds, tort action judgments, settlements, and related bonds are deemed to be in existence as of the date a public agency's governing body adopts a resolution or ordinance, regardless of when the tort action was filed, judgment entered, settlement signed, or claim period expired.

Allows validation of refunding bonds to finance or refinance tort judgments not yet entered, settlements not yet entered into, settlements contingent on conditions precedent, and victims' compensation funds established by a county - meaning counties can issue bonds before the underlying obligation formally exists.

Includes a safeguard that bond proceeds validated under this chapter cannot be used to fund a judgment or settlement before the court orders the judgment or the settlement agreement becomes effective.