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Legislation Detail
SB 282 STRUCTURED SETTLEMENT GUARDIAN AD LITEM
Sponsored By: Sen Joseph Cervantes

Actions: [4] SJC/SFC-SJC [6] DP-SFC

Scheduled: Not Scheduled

Summary:
 Senate Bill 282 (SB 282) relates to the courts and amends the Structured Settlement Protect Act to require a guardian ad litem be appointed in all structured settlement transfers.  
Legislation Overview:
 Senate Bill 282 (SB 282) amends the Structured Settlement Protection Act. 
SB 282 requires a court to appoint a guardian ad litem upon the filing of an application for the transfer of structured settlement payment rights.  The guardian ad litem will be for the payee and will assess the proposed transfer and advise the court whether it is in the best interest of the payee.  
The bill lists the factors the GAL must consider, such as: (1) the payee’s preference and understanding of the terms of the agreement and purpose of the transfer; (2) if the payments are to cover future income losses or future medical expenses, whether the payee can meet these obligations without the settlement; (3) whether the payee can meet the obligations to its dependents; (4) information regarding whether the payee completed previous transactions involving the payee’s payment rights; (5) the impact of the transfer on the eligibility of the payee or its dependents for public benefits; (6) any other relevant factors. 
The bill allows a GAL to consult with an accountant, actuary or other professional for advice, and the transferee must pay the reasonable costs and fees for the GAL.  The GAL must file an interim and final report, and responses to the interim report can be filed no later than five days before a hearing.  
Current Law:
 The Structured Settlement Protection Act is a law that protects people who have structured settlements from unfair practices by companies that buy structured settlement rights.  The act was passed to protect personal injury victims from unfair practices by companies that buy structured settlement rights. This Act currently does not require a payee to have a guardian ad litem review the proposed settlement.   
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