State On Hook For Millions In Sex Abuse Settlements

The West Virginia Board of Risk and Insurance Management (BRIM), a state-run insurance program, may experience significant shortfalls if the state legislature doesn’t step in to help — all because of a change to the statute of limitations on child sex abuse crimes. That’s according to testimony from the agency’s director at last week’s Joint Committee on the Judiciary during the April interim meetings of the West Virginia Legislature. 

The West Virginia Board of Risk and Insurance Management (BRIM), a state-run insurance program, may experience significant shortfalls if the state legislature doesn’t step in to help — all because of a change to the statute of limitations on child sex abuse crimes. That’s according to testimony from the agency’s director at last week’s Joint Committee on the Judiciary during the April interim meetings of the West Virginia Legislature. 

In 2020, the legislature passed House Bill 4559 that increased the civil statutes of limitations for child abuse from 22 to 36. This allowed victims to come back years afterward and sue.

The Miracle Meadows School was a nonprofit Seventh Day Adventist boarding school for children with behavioral issues due to trauma. It was open from 1987 to 2014. A police raid in 2014 revealed children handcuffed in “isolation” rooms as well as dozens of other claims of abuse. 

The school was insured by BRIM. 

In the years that followed, 27 children sued the school and won a $52 million settlement — the state was responsible for $27 million. 

At a recent legislative interim meeting, Melody Duke, BRIM’s director, said up until that point, the school was a “good entity” and their loss ratio was low, meaning they had few claims and paid their premiums. 

The 2020 changes to the statute of limitations have opened the doors for many more children who suffered abuse at the school to bring similar suits. 

“We have over 110 claims currently pending for individuals who have brought claims,” Duke said. ”It’s opened up from 20 to 36, allowing them to come back and file. And that was funding we do not have because when we collected premiums, that exposure was not there. The statute of limitations when we collected the premium back in those years, was able to end at 20.”

The school went out of business in 2014, so BRIM can’t go back and collect premiums, nor can the agency collect premiums from the other nonprofits since it is outside of the five-year range. 

In her explanation of the problem, Duke said that different groups BRIM insures are kept in silos — one for boards of education, one for nonprofit agencies, for example. 

Sen. Patricia Rucker, R-Jefferson, questioned where the money for large payouts comes from. 

“What concerns me is we are backing these up with tax dollars,” she said. “Even though you do separate it into different categories, when you guys have to do a huge settlement, when we have some of these nonprofits causing us a major loss, we have to back it up.” 

Duke explained that is the first time, by her understanding, that something like this has occurred. 

“We feel that some of this is from a development of the statute of limitations change, because that has exacerbated the situation because all these individuals are now able to file claims because they’re over 20, and then to the age of 36,” Duke said. “That’s premium and exposure that was not being able to be collected back in 2014. If that statute had been there, then my actuaries would have helped me to build, to determine premiums that were adequate, hopefully, to fund that.”

Sen. Mike Azinger, R-Wood, also asked Duke what the legislature will need to do to offset these potential settlement losses from the new round of 110 claims against the school. If any settlement follows the earlier round of payments to the 27 students, the state might be liable for more than $100 million. 

“I was able to transfer some excess revenues from that program to the non-state program. That’s going to help me, hopefully, to get through this fiscal year to pay hopefully some of these other claims, the 110 claims I mentioned, but as I’ve got more concrete dollars, I’m going to need some funding to be able to pay those settlements,” Duke said. “The reserves that I have in my non-state program are for everybody in the non-state program. They are not just for one particular entity. I’d be remiss if I used all of my excess money for those payouts. We’ll be looking to the legislature to hopefully maybe get an appropriation to be able to fund those losses.”

Senate Moves Health Bills in Saturday Morning Session

After a late night lawmaking session Friday, the Senate was quick to action Saturday morning, the final day of the 2023 Regular Legislative Session. With so many bills surrounding the health of West Virginia being passed from chamber to chamber, and committee to committee, there are a lot of loose ends to tie up.

SB 187 – Sexual contact between students and teachers

The Senate refused to concur on the House of Delegates’ amendments to a bill to ban sexual contact from school staff regardless of age.

Senate Bill 187 would make it a felony offense for a school employee or volunteer to engage in sexual contact with students.

On Saturday, the Senate refused to concur with the House’s amendments to Senate Bill 187. 

“The Senate version of this bill prohibits primary and secondary school employees from being sexually intimate with students regardless of age,” Sen. Tom Takubo, R-Kanawha, said. “The House version eliminates elementary schools, adds colleges and caps the student age at 20. I urge the House to recede.”

The bill now returns to the House of Delegates.

SB 559 – Relating to Spousal Privilege

A measure of protection for children that has been shuffled throughout legislation this session is Senate Bill 559.

As originally presented, the bill expanded the exceptions to spousal privilege of not being compelled to testify against a spouse to exclude cases in which the offense at issue was committed against any child rather than a child of one or both spouses.

The Senate rejected the House’s amendments and proposed their own.

“The House amended to add a number of new exceptions to spousal privilege,” Takubo, R-Kanawha, said. “The proposed Senate amendment limits the exception of spousal privilege in instances where a spouse commits an offense against a minor.”

The amendment adopted by the Senate with 33 yeas, 0 nays. The bill now goes to the House for their concurrence.

SB 577 – Insulin Co-Pay Cost Reduction Heads to Governor’s Desk

Senate Bill 577 aims to reduce the co-pay cap on insulin and related treatment devices and permit the purchase of testing equipment without a prescription.

On the last day of the 2023 session, the Senate accepted the bill’s House amendments and passed the bill. 

“To limit cost sharing to 35 per 30 day supplies of insulin,” said Takubo. The amendment changes the effective date and makes technical changes. 

The bill passed both chambers and will take effect Jan. 1, 2024.

SB 273 – Reallocating CPS workers by population

After passing technical amendments, the Senate passed Senate Bill 273, to allocate child protective service workers in counties according to the average caseload per county and the county population based on the 2020 Census.

The bill now goes to the House for their concurrence. 

TikTok Ban, Natural Gas Power And More Pass Senate

The Senate passed several bills Wednesday, including one designed to ban TikTok from government devices.

With Sen. Charles Trump, R-Morgan, presiding, the Senate passed several bills Wednesday, including Senate Bill 426, which allows the state’s chief information security officer to establish standards for, and ultimately block or ban, access to technological services, apps, programs or products on government devices.

Sen. Ryan Weld, R-Brook, made it clear on the floor that the bill, which originated from the executive, had one particular app in mind.

“This bill comes to us as a result of, I’m sure a lot of you are familiar with discussions regarding TikTok,” Weld said. “TikTok, as we all know, is the very popular social media platform, video sharing platform, that is owned by a Chinese tech conglomerate, ByteDance. It has been in the news recently, the federal government enacted a ban of TikTok on all of its systems due to privacy concerns, concerns that the app collects much more data than is needed for its intended purpose.”

An amendment to the bill introduced and passed on the Senate floor Tuesday would create exceptions for law enforcement purposes.

Also passed on third reading Wednesday were:

  • Senate Bill 188, the Grid Stabilization and Security Act of 2023, would encourage the development and implementation of natural gas electric generation projects. Sen. Laura Chapman, R-Ohio, Sen. Randy Smith, R-Tucker, and Sen. Rupie Phillips, R-Logan, voted against the bill.
  • Senate Bill 240 would require state board of examination or registration proceedings to be open to public inspection

These three bills now go to the House of Delegates for their consideration.

The Senate also took action on Senate Bill 128, amending the House amendment to the bill and passing the bill, with Sen. Smith voting against. The bill, which implements limitations on the governor or legislature’s ability to declare a state of emergency, now awaits the Senate’s request that the House concur on today’s changes. 

To The Executive

The Senate also completed legislative action on three bills, including: 

  • House Bill 2506. The bill allows the Department of Motor Vehicles to take advantage of modern advances in secure digital titles for property to create a title clearinghouse to produce titles for nonresidential businesses.

Constitutional rules were suspended to pass the bill the same day it was introduced.

  • House Bill 2029 repeals  the creation of an all-payer claims database by removing the original authority provided to the Department of Health and Human Resources.
  • House Bill 2018 permits the managed care case coordinator to attend the multidisciplinary team meeting. Under West Virginia code, a multidisciplinary team must be convened within thirty days of the initiation of a judicial proceeding to assess, plan and implement a comprehensive, individualized service plan for children who are victims of abuse or neglect and their families.  
  • Senate Bill 132 clarifies the criminal offense of harassment to include stalking as a form of harassment.

W.Va. Senators Work To Strengthen Bill Requiring Cameras In Special Ed Classrooms

The Senate Education Committee on Thursday passed SB 261, which would modify and strengthen a 2019 law that requires cameras in special education classrooms.

The bill now clarifies the procedures that schools must follow when dealing with the cameras. Some of the new procedures include designating a specific person, such as a building or county administrator, to review the videos. Another would require that any and all requests to view the videos must be permitted.

The 2019 law was originally put in place following alleged incidents of physical abuse and mistreatment of students with special needs in some West Virginia special education classrooms.

However, some parents have come forward saying the language of the law needs “more teeth.” Senators heard testimony in committee from Kanawha County parents Craig and Beth Bowden who said their son was abused in September.

“I think it’s important for you to know that the abuse from this day, this one day that we got to view, included slaps across the face, slamming heads on desks, throwing children to the floor by the hair of their heads, forcing a child to eat lunch in the bathroom floor, and a countless number of verbal abuse,” said Beth Bowden to senators. “Without [the 2019] law, none of this abuse would have been caught. However, what we now know is that these cameras are not stopping the abuse.”

Upon hearing from the Bowdens, senators adopted two amendments to the bill – one that creates some accountability to ensure videos are being reviewed at least every 90 days, and another that would no longer require schools to delete footage after 90 days, but rather to keep all videos for at least a year.

SB 261 passed unanimously in committee and now heads to the full Senate for consideration.

CPS System Severely Understaffed In West Virginia

The Child Protective Services (CPS) system in West Virginia is struggling with a severe lack of staff, Commissioner Jeff Pack told the Joint Committee on Children and Families of the West Virginia Legislature earlier this week.

Pack is the commissioner of the Bureau of Social Services at West Virginia Department of Health and Human Resources. He is also a former member of the legislature. Pack took over the bureau at the beginning of August. When he began his testimony, he told the committee members he wasn’t going to sugar coat the problem.

Overall 27 percent of jobs at CPS are unfilled. The positions are there, but no one wants them. Some individual counties are much higher. Calhoun, Jackson, Mason, McDowell, Kanawha, Hampshire, Hardy and Pendleton counties have between 40 to 50 percent vacancy rate.

Additionally, 15 percent of the jobs in the Centralized Intake department are unfilled. That’s the staff that receives the abuse and neglect calls first and then determines whether to send the calls on to CPS workers in the counties.

Candidly, that’s untenable” Pack said. “I don’t know how we continue to operate at that particular rate. If you’re a CPS worker and you’re supposed to have 12 cases, well, now you’ve got 24.”

Pack said the state has approximately 400 CPS workers currently working in the state. He noted that over the last decade, the number of children in state custody has doubled from approximately 3,500 to 7,000.

Pack acknowledged that he gets complaints about the system, but said most of those employees are doing a difficult job.

“They do a job that I couldn’t do and I don’t know that I’d want to do,” he said. “It’s not at all a pleasant job. And most of these folks do a fabulous job.”

Following Pack’s testimony, the committee brought on Sarah Peters, a dental hygienist at Greenbrier Valley Pediatric Dentistry in Lewisburg. She told the committee about a situation where the system failed.

She explained that she noticed a large bruise on a patient. She took a photo of the bruise and called the CPS hotline. After delivering some basic information, she said the person on the other end of the line abruptly cut off the call. That was August 10, 2020.

Peters said she got a letter printed the same day as the call telling her the case was closed and that it did not meet a legal definition of abused or neglected child. There was no investigation.

On Dec. 8 of that year, the mother who had custody of the child murdered each of her five children and step-children, committed suicide and burned down the house with the bodies inside.

Michael Spradlin, a retired West Virginia State trooper and investigator, looked into the case. From his investigation, he determined there had been a history of abuse in the home for months leading up to, and after, Peters’ call.

“Almost four months to the day (of the call), they’re murdered,” he said.

Visibly upset during his testimony, Spradlin said he had grandchildren the same age as the children who were murdered. He said there must be changes in the way we look at cases like this.

“We’ve got to know what probable cause is,” he said. “If it had been someone showing up at the police station with the bruise that would have been probable cause to proceed. We just want answers. That’s all we want. We want an expert explanation, whatever that explanation is, we can live with it. And we will improve the system.”

Lt. Col. David Nelson of the West Virginia State Police testified that he had worked with CPS and centralized intake to rectify some of the problems with the system. And, he said, he had seen changes to make him believe things were better.

But, he said, when he polled his senior staff about CPS and asked if there were still problems, he said he said some of the captains in the field said yes.

“I really honestly want to work with all involved to make sure what Mr. Spradlin said doesn’t happen again,” Nelson said. “That’s our main goal.”

Rebecca Carson, the director of Centralized Intake was the final speaker to address the committee. She explained that her employees take referrals 24-hours-a-day, year round. Every person answering calls is a licensed social worker who has had a 16-week training course in child welfare and DHHR policies and protocols.

She described a set of peer review protocols in place to make sure problems like those described by Peters and Spradlin don’t happen.

“Those kinds of checks and balances are not 100 percent foolproof, but they are in place so that we don’t make a catastrophic mistake — or even a small one,” she said. “We don’t want to leave any kid or vulnerable adult in an unsafe situation.”

As of October 2021, the department records every phone call that comes into Centralized Intake.

She noted, in closing, that Centralized Intake recently did a study of its cases with a federal group. The study looked at referrals that were accepted and screened out, and then looked at the next 120 days to see if those referrals were substantiated or if a case was opened.

She said only 0.7 percent of cases that were screened out were returned to the system within 121 days and resulted in an open case or a CPS finding. The group conducting the study indicated that was consistent with the other states they’ve studied.

Time ran out before the members of the committee could ask any questions of the speakers. Sen. Patricia Rucker, (R-Jefferson) the chairwoman of the committee, indicated that all of the speakers would be asked to come back to a follow-up meeting.

In West Virginia Child Custody Bill, Supporters See Help For Kids Of Divorce. Opponents See Red Flags For Victims Of Abuse

This story was originally published by Mountain State Spotlight. For more stories from Mountain State Spotlight, visit www.mountainstatespotlight.org.

The West Virginia House of Delegates has passed a bill that, if it becomes law, would give family court judges one highest priority in child custody cases: courts would have to assume, at the beginning of the case, that custody arrangements that allocate 50% of time with each parent are best.

Then, it would be up to the parents to show that other factors, including domestic violence or child abuse, should be considered.

Supporters of the bill say it’s meant to encourage good relationships with both parents — which would ultimately benefit kids. But advocates for children and for victims of domestic violence say it would institute a one-size-fits-all approach that puts parents’ desires over children’s needs.

If the bill becomes law, it could also reopen old cases, allowing thousands of non-custodial parents to go back to court and fight for custody. That could disrupt the lives of children used to their current custody agreements. Things they’ve taken for granted, like seeing a parent most days or seeing certain friends at school, could change, creating feelings of helplessness and instability.

Carol Smith, a counseling professor at Marshall University with expertise in childhood trauma, said the uncertainty could cause more confusion in children’s lives during an already chaotic time.

Young children may not have the words to express how confusing and traumatic divorce proceedings can be, Smith said.

“If you did interview a child, you would end up hearing things like, ‘well, this is really painful,’” she said. “‘And I just wish that my parents could get along, and it feels like it’s my fault.’”

Supporters say parents aren’t getting enough time with their kids

When deciding child custody arrangements, current state law directs family court judges to think about various parts of a child’s life that influence health and happiness, including who the child wants to live with, the need for meaningful contact with each parent, maintenance of close relationships with siblings and the child’s safety.

House Bill 2363 would remove the provision of state law that requires courts to consider who took care of the child over the previous 12 months when determining parenting plans. Instead, courts would have to assume 50/50 child custody agreements are best, unless parents could show other factors, like family violence, should be given higher priority. Proponents of the bill have argued this is fair, because if a parent is working outside the home and not directly caring for the child, providing income is still a form of care-taking.

The bill’s supporters, including lead sponsor Delegate Geoff Foster, R-Putnam, say that giving more parents 50/50 custodial time arrangements would benefit children, because it’s good for kids to have strong relationships with two loving parents.

Foster introduced a similar bill last year; the House passed it, but the Senate passed a drastically limited version and lawmakers ran out of time before they could reconcile the two different versions.

At the time, Foster said he sponsored the bill because of his personal experience. He said he was unable to see a sibling because of an unfair parenting arrangement between his father and stepmother.

“It’s really not about me,” Foster said of this year’s bill in an interview earlier this month. “[The bill] wouldn’t affect me at all. The real story is about the people that are right now being put out of their kid’s life to the detriment of the child.”

Foster said last year that the National Parents Organization, an organization that originally focused on fathers’ complaints about custody agreements and promotes “shared parenting,” had contacted him with interest in the bill, but he’d already started working on it before that.

“I’ve got people texting me, men — men and women alike — saying how the current law is really hurting their families and that’s why I’m trying to fix the situation,” he said.

Groups including Prevent Child Abuse WV, the West Virginia Coalition Against Domestic Violence, and the West Virginia Child Advocacy Network oppose the bill.

Foster said he was surprised to see the West Virginia Federation of Democratic Women come out in opposition as well.

“I don’t know where that came from,” he said. “I don’t know why this has become a partisan issue of trying to do what’s best for the child.”

A tool of abuse

The bill’s opponents argue at best, the bill is unnecessary: current law already allows courts to establish 50/50 custody arrangements if that’s what a judge thinks is best. They say a child’s needs should be put before parental preferences.

But at worst, they say the measure could be used by abusive parents and partners as a tool within the family court system.

Joyce Yedlosky, team coordinator for the West Virginia Coalition Against Domestic Violence, said domestic violence perpetrators don’t only target their victims. They also target systems like family courts, she said.

“Many victims of domestic violence don’t have evidence of the domestic violence, or they believe that they can navigate the custody arrangements in a way that keeps them and the children safe without having to raise the domestic violence [in court],” Yedlosky said. “When you raise the domestic violence in a court setting, you are challenging somebody that you are afraid of, and often that’s without an attorney.”

She said many instances of abuse go unreported, whether because of safety concerns, attorney advice, lack of resources, or unwillingness to embarrass the children or the abuser.

Similarly, Jim McKay of Prevent Child Abuse WV said often these issues aren’t reported to authorities.

“Setting such a high evidentiary standard to adjust child custody arrangements increases risks of harm for children,” he said.

These advocates worry that victims of domestic violence will stay in abusive relationships rather than try to show a judge that abuse occurred.

The bill ties judges’ hands, and every situation is different, Yedlosky said. Sometimes, alleging abuse can lead to more severe violence. Some families may be best served not bringing up abuse at that time. Some people who commit domestic violence may be able to learn not to be violent.

Another worry if the bill passes: perpetrators of domestic violence will use it as a way to bring their former spouses back to court as yet another form of abuse.

Looking to Kentucky

Foster brushed those concerns off as speculation.

“That’s a really large stretch of a hypothetical for one because, in Kentucky, when they passed this bill, domestic abuse cases actually dropped somewhere around 10%, so it would actually improve the situation.”

Kentucky’s law passed in 2018, and state government data shows that requests for protective orders requiring abusers to stay away from victims dropped by about 13% by 2020. But family court cases related to divorce, annulment or separation dropped by 10%, too.

Foster pointed out that judges may still consider domestic violence in these cases if the bill passes, and the legislation doesn’t change state domestic violence law.

But a key difference between Kentucky’s law and the one being considered in West Virginia is the ability to reopen old cases.

Foster supports this provision. He said he didn’t want to see children whose parents divorced in 2019 end up with less time with their parents whose divorce was in 2021.

“According to studies that I’ve looked at, when you look at it, it’s in the best interest of the child for them to have both parents involved in their life,” he said.

Last year, Foster and proponents of similar legislation cited a 2014 study in calling for 50/50 custody arrangements. While the study, conducted by research psychologist Richard Warshak, found that meaningful and balanced time was ideal, the study specifically stated that policymakers should avoid setting defaults that apply to everyone, like a 50/50 custody arrangement.

Advocates for children worry that reopening cases could unintentionally create more chaos in children’s lives.

Smith, the Marshall professor and counselor, said a divorce is traumatic and confusing as is. She compared it to a fire in the life of a child.

“The difference between a bad thing happening to a child and an adult is the child does not have the resources or the cognitive map to put the event in perspective. They don’t have the resources they need for coping,” she said. “It ends up having an outsized effect on how they think about the world and their place in the world.”

An adult might say, “OK, I have a driver’s license. I’ve got a car. I’ve got a credit card. I know how to go and make a hotel reservation. We can go stay in a hotel,’” she said.

“A child is just looking to the adults to provide protection and love to them. And if their house burns down, the child is like, ‘oh my gosh, the house burned down. There’s nothing worse in the world because my entire world was in that house.’”

David McMahon, a lawyer and a lobbyist who worked on divorce cases from 1975 to 2008, remembers when custody battles were even more overwhelming and upsetting for children.

Before changes to state law, McMahon wrote in a letter to lawmakers, he often saw parents use child custody requests as bargaining chips, leading to long and unpredictable custody battles.

McMahon worries parents who don’t even want custody will fight for it for “bargaining leverage,” when they’re really concerned about property distribution or money allocated for child support or alimony.

“The best predictor of future behavior,” he wrote in the letter, “is past behavior.”

Smith added that while courts may try to establish some order among the chaos, they can’t solve the root problems that put stress on families.

She noted that many children in West Virginia are already dealing with multiple stressors and traumatic experiences, including prejudice, poverty, housing hunger, lack of transportation, income loss and isolation due to the pandemic, and widespread addiction.

“Trauma begets trauma, and we see that in West Virginia, just generations of people who really, truly did not get what they needed growing up and then they turn around and parent, and they’re not really ready to be parents and their children don’t get what they need when they’re growing up and they turn around and parent,” and the cycle continues, she said.

One way to address the root causes, Smith said, would be to increase access to mental health care.

“The fact of the matter is, in the United States, there is no system for addiction or mental health care. There’s no system. It’s patchwork. It’s ad hoc. And if you’re lucky, you know someone who knows someone who might be able to get you a therapist, and then if you’re really lucky, you have all the things that you need in order to go get therapy, money, transportation, time.”

The consequences of this ad hoc system, she says, are showing up in family court.

Reach reporter Erin Beck at erinbeck@mountainstatespotlight.org

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