Lawmakers approved the settlement Thursday with a 30-1 vote in the Senate and a 62-0 vote in the Assembly.
Jaycee Dugard, who is 30, resurfaced last August with two daughters she bore with Phillip Garrido.
Garrido and his wife, Nancy, have pleaded not guilty to charges that they kidnapped and raped the young woman.
Dugard, her mother and daughters filed a claim saying state corrections officials failed to do their jobs. They claimed psychological, physical and emotional damages.
