Republican Iowa House Speaker Pat Grassley said he’s hesitant to advance a bill that would allow those sexually abused as children while in the Boy Scouts to recover more money through a national bankruptcy settlement.
Lawmakers face a rapidly approaching April 19 deadline to change the law, or else Iowa survivors will receive less than others across the country.
The bill unanimously passed the Iowa Senate this week.
Though narrowly written to only apply to the Boy Scout bankruptcy settlement, Grassley said he is concerned about broadening Iowa's civil statute of limitations.
Speaking to reporters Thursday, the Republican from New Hartford called it a "significant policy change" that merits further scrutiny.
“We understand that what these victims have went through is a very terrible thing that they’ve experienced,” Grassley said. “... We recognize it’s narrowly focused, where the bill is today, but where do you draw the line? And, quite frankly, it’s a significant change when it comes to opening up the statute of limitations, regardless of how narrowly tailored it is.”
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Senate File 2431 creates an exception to Iowa’s civil statute of limitations for injuries resulting from childhood sexual abuse for “purposes of making a claim in a bankruptcy proceeding that was initiated on February 18, 2020,” against the bankruptcy estate of a congressionally chartered organization. The language effectively would limit the exception to the Boy Scouts. The act would be repealed Dec. 31, 2026.
It would temporarily lift the state’s statute of limitations so that victims of sexual abuse while in the Boy Scouts can receive damages from the Scouting Settlement Trust, a $2.5 billion fund established last year after the Scouts filed for bankruptcy protection.
The Scouts filed for bankruptcy in 2020 after several states enacted laws letting accusers sue over decades-old abuse allegations.
The organization ultimately reached a settlement, approved in court in 2022, that would pay abuse victims amounts ranging from $3,500 to $2.7 million for claims against the Boy Scouts of America, as well as all claims against local Boy Scouts councils and supporting organizations.
The settlement involves more than 82,000 men who said they were abused as children by troop leaders.
Iowa's situation
But unless Iowa legislators take action in the next few days, the estimated 300 to 350 Iowans involved in the settlement will receive a fraction of the awards they otherwise would be entitled to. When figuring compensation, the settlement uses a matrix that weighs a variety of factors — including a state's civil statute of limitations.
Iowa’s statute of limitations requires victims of child sexual abuse to file cases in district courts by the age of 19 or within four years of coming to the realization as an adult that their injuries and suffering are related to their alleged abuse.
Because of Iowa's short statute of limitations, victims in the state could see their financial compensation from the Scouts reduced by 60% to 70% compared with victims in other states, according to an attorney involved in the matter.
And even then, people might only be paid 5% to 10% of the value because there’s not enough money in the fund.
Policy question
“So we recognize that this is a very difficult situation. But, the last few weeks of session, it’s really hard to be able to find resolution,” Grassley said. “And it hasn’t worked its way through the committee process in any form.”
Pressed on the prospects of the House passing the bill in time, Grassley was less than optimistic.
“This is a much bigger deal than I think it’s being perceived to be,” he told reporters. “... Changing this is a fundamental change to the way we’ve typically done things in Iowa when it comes to the statute of limitations,” and should not be “rushed through.”
“That being said, I understand the clock is ticking as well, but we have to be mindful” to “make a good policy decision versus looking at what timeline we’re under.”
Iowa officials in 2021 lifted the state’s statute of limitations for bringing criminal charges in sexual abuse, incest, sexual exploitation and human trafficking cases. But the law does not cover civil claims.
'Justice'
Opponents have expressed concerns that getting rid of the statute could make it virtually impossible in some cases for organizations to defend themselves against a claim for third-party liability in decades-old cases.
Sen. Janet Petersen, D-Des Moines, said the bill will prevent Iowa abuse survivors from being financially penalized simply because their abuse occurred in Iowa.
House Minority Leader Jennifer Konfrst, D-Windsor Heights, said House Democrats support the bill and “are anxious to do this for these survivors.”
“I believe that it’s pretty important that we make sure that survivors, even long after a statute of limitations has passed, have an opportunity for justice,” Konfrst told reporters Thursday.