Bill Text: CA SB492 | 2025-2026 | Regular Session | Amended
Bill Title: Wildfire.
Sponsorship: Partisan Bill (Democrat 6)
Status: (Engrossed) 2026-08-30 - Ordered to third reading. [SB492 Detail]
Download: California-2025-SB492-Amended.html
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Amended
IN
Assembly
August 29, 2026 |
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Amended
IN
Senate
January 22, 2026 |
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Amended
IN
Senate
January 08, 2026 |
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Senate Bill
No. 492
| Introduced by Senator |
February 19, 2025 |
LEGISLATIVE COUNSEL'S DIGEST
SB 492, as amended, Menjivar Youth Housing Bond Act of 2026. Wildfire.
(1) Existing law establishes the Department of Forestry and Fire Protection in the Natural Resources Agency and requires the department to coordinate programs of fire protection, fire prevention, pest control, and forest and range maintenance and enhancement.
This bill would require the department, on or before July 1, 2029, in consultation with the Department of Insurance, the Natural Resources Agency, the Office of Emergency Services, and other relevant departments, to develop standards for state and local agencies to aggregate and make available data related to parcel-, neighborhood-, and community-level wildfire risk for the purpose of enabling a wildfire data sharing platform, as provided. The
bill would require the department to incorporate those data standards into community wildfire risk reduction metrics.
(2) Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes their powers and duties. Existing law requires, on or before April 1, 2026, and every 2 years thereafter, an admitted insurer with written California premiums totaling $12,000,000 or more to submit a report to the Insurance Commissioner on its residential property experience data for the previous 2 years for policies written in California, as specified. Existing law requires this information submitted to the commissioner to be confidential, exempt from the California Public Records Act, and not subject to subpoena, as provided.
This bill would authorize the Department of Insurance to provide information submitted to the department, including, among other things, the property
experience data described above, to researchers and government agencies for the purpose of evaluating California wildfire risk, insurance protection gaps, or wildfire risk mitigation, as provided. The bill would require any published data product collected pursuant to the above-described authority that is provided to a researcher or government agency to be anonymized and aggregated sufficiently to avoid identification of individual company losses, claims data, or information on confidential business practices, as specified, and would prohibit subsequent reports from identifying an individual respondent or insurer.
(3) Existing law requires the Department of Forestry and Fire Protection to annually provide to the Legislature a report detailing the department’s fire prevention efforts and annually post on its internet website information regarding hazardous fuel reduction and vegetation management projects funded or conducted
by the department, as provided. Existing law requires the department to develop a standardized protocol for monitoring implementation and evaluating the positive and negative ecological and fire behavior impacts from vegetation management projects undertaken by the state, as provided.
This bill would repeal those requirements and would instead require the department, on or before March 1 of each year, to prepare and submit a report to the Legislature on the detailed efforts made in California towards wildfire prevention and community preparedness, as provided.
Existing law requires the Wildfire and Forest Resilience Task Force, including the Natural Resources Agency and the department, among others, in coordination with certain public agencies, to develop a comprehensive implementation strategy to track and ensure the achievement of the goals and key actions identified in California’s Wildfire and Forest Resilience Action
Plan, as provided.
This bill would require, on or before July 1, 2027, and every 5 years thereafter, the Secretary of the Natural Resources Agency, in consultation with the State Fire Marshal, the Wildfire and Forest Resilience Task Force, the Wildfire County Coordinator Program, and the State Hazard Mitigation Officer to prepare a comprehensive statewide community wildfire preparedness strategy, as provided. The bill would require the State Fire Marshal to support communities in the development of optional county-level community wildfire protection plans that align with the community wildfire preparedness strategy, as provided. The bill would require a local entity, in order to receive state funding to implement its community wildfire protection plan, to provide annual updates and progress on its efforts to meet the goals of its plan.
(4) Existing law establishes the Continuation Account in the
Wildfire Fund, to be administered by the Wildfire Fund Administrator, and continuously appropriates moneys in the Continuation Account for purposes of payment of eligible claims arising from wildfires ignited on or after September 19, 2025, as provided. Existing law requires each large electrical corporation to provide to the Public Utilities Commission a written notification of its election to participate, or not to participate, in the Continuation Account, and requires the commission, if all participating electrical corporations have provided their election to participate in the Continuation Account, to provide the administrator and other entities notification of their elections. Existing law authorizes the administrator, on or after the date the commission provides that notification, but not later than December 31, 2028, to determine if annual contributions from large electrical corporations are needed to enable the Continuation Account to fund the timely payment of eligible claims, as provided. Existing
law requires the commission, within 15 days of receiving notification from the administrator that additional annual contributions are required, to initiate a rulemaking proceeding to consider using its authority to require the large electrical corporations to collect a nonbypassable charge from ratepayers to support the Continuation Account, including the payment of any bond issued for the support of the Continuation Account, as provided. Existing law authorizes the Department of Water Resources to issue bonds, in an aggregate amount up to $9,000,000,000, as provided, to support the Continuation Account. If the commission imposes the nonbypassable charge to support the Continuation Account, existing law requires the large electrical corporations, from calendar years 2029 to 2045, inclusive, to provide to the administrator their annual contributions, as specified, for deposit into the Continuation Account.
This bill would, if the administrator provides that
notification, additionally authorize the administrator to incur indebtedness and issue bonds solely for purposes of supporting the Continuation Account and other related expenses incurred by the administrator, provided that bonds authorized under this provision are payable solely from annual contributions and additional contributions, as provided. The bill would authorize bonds issued by the department, at the discretion of the administrator, to be secured solely by ratepayer contributions, as specified. The bill would prohibit the Wildfire Fund or Continuation Account from being terminated while bonds issued by the department remain outstanding, unless an amount sufficient to pay remaining debt service on those bonds has been irrevocably set aside for those purposes, as specified. Upon the determination of the administrator that the Wildfire Fund should be terminated, the bill would require any remaining Wildfire Fund assets to be transferred to the Continuation Account, and upon the determination of the
administrator that the Continuation Account should be terminated, the bill would require any remaining funds to be transferred to the General Fund. By transferring those moneys into a continuously appropriated account, the bill would make an appropriation. The bill would make additional technical and conforming changes.
Existing law requires revenues and bond proceeds received by the department to be deposited in the Department of Water Resources Charge Fund and continuously appropriates the moneys in the Department of Water Resources Charge Fund to the department for specified purposes, including transfers to the Wildfire Fund and payment of the bonds.
This bill would require revenues and bond proceeds received by the department pursuant to the provisions related to the Continuation Account to be deposited into an account or subaccount within the Department of Water Resources Charge Fund, and to be held separate and apart
from amounts held in the Department of Water Resources Charge Fund pursuant to provisions related to the Wildfire Fund, as specified.
(5) This bill would create the California Wildfire Relief Fast-Pay Program and would require the California Catastrophe Response Council to appoint a fast-pay administrator to administer the fast-pay program. The bill would require the fast-pay administrator to establish and approve procedures for the review, approval, and timely payment of claims by individual claimants for damages as a result of an activating wildfire, as defined. If the eligible entity, defined as an electric utility or public agency that has a wildfire mitigation plan approved by the Office of Energy Infrastructure Safety (office), is a participating electrical corporation, as defined, the bill would require settlements pursuant to the
fast-pay program to count as settlements of eligible claims and to be paid from the account, as specified. If the eligible entity is not a participating electrical corporation, the bill would require the eligible entity to be solely responsible for directly paying amounts to satisfy settlement offers pursuant to the fast-pay program.
This bill would, among other things, prohibit an individual, business corporation, or other entity from selling, assigning, or transferring any wildfire claim, or any right of recovery on a wildfire claim, to a private equity group, and would prohibit an individual, wildfire attorney, corporation, or other entity from selling, assigning, or transferring, in whole or in part, any contingency fee on an interest in a contingency fee, except as provided. This bill would prohibit a private equity group from paying any wildfire expenses
with respect to a wildfire claim and from funding wildfire advertising costs with respect to any applicable wildfire that damages or destroys (1) more than 100 structures, or (2) more than 10,0000 acres of land, and would authorize the Attorney General or any district attorney to bring a civil action to enforce that prohibition, as specified.
(6) Existing law regulates, among other things, fee agreements, legal advertising and referral services, the sale of financial products to a client, and unlawful solicitation.
This bill would require an attorney who contracts to represent a client involving a claim against an electric utility involving an applicable wildfire shall provide a disclosure to the client the options and requirements involving the fast-pay program, as provided. The bill would prohibit a person, firm, partnership, association, or corporation from making an unsolicited
targeted communication to solicit any business for any attorneys concerning a potential action for wrongful death, personal injury, or property damage within 30 days of an event, defined as an incident resulting in the proclamation of a state of emergency, as specified. The bill would prohibit, for any claim based on inverse condemnation against an electrical corporation arising from a covered wildfire caused by an electrical corporation, the fee for an attorney representing an insurer involving a subrogated claim from exceeding 10% of the settlement or judgment.
(7) Existing law, the Bagley-Keene Open Meeting Act, requires, with specified exceptions, that all meetings of a state body be open and public and all persons be permitted to attend. Existing law authorizes certain state bodies to hold closed session meetings for certain purposes, including authorizing the governing board or advisory panel of the California Earthquake Authority (CEA)
to hold closed sessions when addressing the development of rates, reinsurance, and strategy when discussion in open session concerning those matters would prejudice the position of the CEA.
This bill would additionally authorize the California Catastrophe Response Council to hold closed sessions when addressing either the administration or evaluation of individual claims submitted for reimbursement from the Wildfire Fund or the Continuation Account, or the development of strategy related to reinsurance or other mechanisms to extend the durability of the Wildfire Fund or Continuation Account, as specified.
The California Public Records Act requires a public agency, defined to mean a state or local agency, to make its public records available for public inspection and to make copies available upon request and the payment of a fee, unless the public records are exempt from disclosure.
This bill would exempt records held by the California Catastrophe Response Council, or the California Earthquake Authority as the Wildfire Fund Administrator, that relate to the administration or evaluation of claims submitted for reimbursement from the Wildfire Fund or Continuation Account from the California Public Records Act, as specified.
(8) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(9) Existing law requires the Director of the Office of
Energy Infrastructure Safety to issue a certificate to an electrical corporation if the electrical corporation provided documentation of certain conditions, including a condition that the electrical corporation has established (1) an executive incentive compensation structure approved by the Office of Energy Infrastructure Safety and structured to promote safety as a priority to ensure public safety and utility financial stability with performance metrics for all executive officers, which may include denying all incentive compensation if the electrical corporation causes a catastrophic wildfire that results in one or more fatalities and (2) a compensation structure that meets certain principles.
This bill would revise the recast the requirement related to the executive incentive compensation structure, among other things, to require the electrical corporation to file the approved written executive incentive compensation structure with the office at least one year
before the executive incentive compensation structure would become effective. The bill would require the office to approve an electrical corporation’s executive incentive compensation structure if it is structured to promote safety as a priority and to ensure public safety and utility stability with performance metrics, includes a provision denying all short-term incentive compensation, as defined, to the chief executive officer, or the officer holding an equivalent position, for a calendar year in which the electrical corporation causes a catastrophic wildfire that results in one or more fatalities, and meets the principles specified in existing law for the compensation structure. For a large electrical corporation, as defined, the bill would additionally require the executive incentive compensation structure to meet certain requirements, including a requirement for the structure to include a written presumption that 35% of the total incentive compensation for each executive officer will be denied for at
least one year in the event the electrical corporation causes a catastrophic wildfire that result in one or more fatalities.
(10) Under existing law, a violation of an order, decision, rule, direction, demand, or requirement of the commission is a crime.
Because a violation of a commission action implementing the bill’s requirements would be a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(11) This bill would declare that it is to take effect immediately as an urgency statute.
Existing law, the Veterans and Affordable Housing Bond Act of 2018, which was approved by the voters as Proposition 1 at the November 6, 2018, statewide general election, authorizes the issuance of bonds in the amount of $4,000,000,000 pursuant to the State General Obligation Bond Law and requires the proceeds from the sale of these bonds to be used to finance various housing programs and a specified program for farm, home, and mobilehome purchase assistance for veterans, as provided. Existing law establishes, among various other programs intended to address homelessness in this state, the Homeless Housing, Assistance, and Prevention program for the purpose of providing jurisdictions with one-time grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges informed by a best-practices framework focused on moving
homeless individuals and families into permanent housing and supporting the efforts of those individuals and families to maintain their permanent housing.
This bill would enact the Youth Housing Bond Act of 2026 (bond act), which, if adopted, would authorize the issuance of bonds in the amount of $1,000,000,000 pursuant to the State General Obligation Bond Law to finance the Youth Housing Program, established as part of the bond act. The bill, as a part of the program, would require the Department of Housing and Community Development to make awards to local agencies, nonprofit organizations, and joint ventures for the purpose of acquiring, renovating, constructing, and purchasing equipment for youth centers or youth housing, as those terms are defined.
This bill would provide for submission of the bond act to the voters at the November 3, 2026, statewide general election in accordance with specified law.
This bill would declare that it is to take effect immediately as an urgency statute.
Digest Key
Vote: 2/3 Appropriation:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 6150 is added to the Business and Professions Code, to read:6150.
(a) An attorney who contracts to represent a client involving a claim against an electric utility involving an applicable wildfire shall provide a disclosure to the client the options and requirements involving the fast-pay program established pursuant to Section 3299.210 of the Public Utilities Code.(b) The disclosure pursuant to subdivision (a) shall include information about all of the following:
(1) The fast-pay program timelines provided under Section 3299.210 of the Public Utilities Code.
(2) Specifies that if the client receives a settlement offer under the fast-pay program while the client is litigating the
claim, the client is not required to maintain the court claim.
SEC. 2.
Section 6152.55 is added to the Business and Professions Code, to read:6152.55.
(a) For the purposes of this section, the following definitions apply:(1) “Event” means an incident resulting in the proclamation of a state of emergency declared by the President of the United States or the Governor, or upon the declaration of a local emergency by an official, board, or other governing body vested with authority to make that declaration in any county, city, or city and county.
(2) “Targeting” shall include, but not be limited to, selection of a recipient or audience based upon any of the following:
(A) A person’s name, physical address, telephone number, or email address.
(B) A list of persons known or reasonably believed to have suffered loss, injury, displacement, or evacuation.
(C) Property ownership or occupancy information associated with a disaster-affected location.
(D) Geolocation or location-history information.
(E) Geofencing or similar location-based audience selection.
(F) Consumer, insurance, public-record, or commercially obtained data.
(G) Online activity or behavioral information indicating likely exposure to or loss from the event.
(H) Algorithmic audience selection intended to identify persons likely to have been
affected by the event.
(I) Any substantially similar method of identifying or selecting persons because of their actual or reasonably anticipated status as victims of an event.
(b) A person, firm, partnership, association, or corporation shall not make an unsolicited targeted communication to solicit any business for any attorneys concerning a potential action for wrongful death, personal injury, or property damage within 30 days of an event giving rise to the claim.
(c) This section shall not be construed to prohibit any of the following:
(1) An potential client from initiating contact with a lawyer.
(2) A lawyer from responding to a request for legal information or representation.
(3) Any communications concerning an existing attorney-client relationship.
(4) Any communications required by law or court order.
(5) Any communications by governmental entities, legal aid organizations, or nonprofit organizations.
(6) Any general public education concerning legal rights or available governmental or nonprofit resources that does not solicit professional employment.
(7) Any communications by an insurer with an insured person who is an affected person.
(8) Communication disseminated through television, radio, newspaper, magazine, billboard, or other traditional public media.
(9) Communication posted on a generally accessible website or social-media account.
(10) Communication made available through a generally accessible search engine or online directory.
(d) A violation of this section shall be punishable by any penalty enumerated in Section 6153.
SEC. 3.
Section 7928.725 is added to the Government Code, to read:7928.725.
(a) Records held by the California Catastrophe Response Council, or the California Earthquake Authority as the Wildfire Fund Administrator, or any successor administrator, that relate to the administration or evaluation of claims submitted for reimbursement from the Wildfire Fund or Continuation Account, including claim settlement information and personally identifiable information concerning a wildfire survivor or claimant, are exempt from disclosure under this division.(b) This section does not limit the disclosure of aggregated or deidentified information concerning the administration of the Wildfire Fund or Continuation Account, including total claims paid, processing timelines, and other summary data not identifying an individual
claim or claimant.
(c) This section does not create, and shall not be construed to waive, any evidentiary privilege or confidentiality protection otherwise available to a record described in subdivision (a) under any other law.
SEC. 4.
Section 11126 of the Government Code is amended to read:11126.
(a) (1) Nothing in this article shall be construed to prevent a state body from holding closed sessions during a regular or special meeting to consider the appointment, employment, evaluation of performance, or dismissal of a public employee or to hear complaints or charges brought against that employee by another person or employee unless the employee requests a public hearing.(2) As a condition to holding a closed session on the complaints or charges to consider disciplinary action or to consider dismissal, the employee shall be given written notice of their right to have a public hearing, rather than a closed session, and that notice shall be delivered to the employee personally or by mail at least 24 hours before the time for holding a
regular or special meeting. If notice is not given, any disciplinary or other action taken against any employee at the closed session shall be null and void.
(3) The state body also may exclude from any public or closed session, during the examination of a witness, any or all other witnesses in the matter being investigated by the state body.
(4) Following the public hearing or closed session, the body may deliberate on the decision to be reached in a closed session.
(b) For the purposes of this section, “employee” does not include any person who is elected to, or appointed to a public office by, any state body. However, officers of the California State University who receive compensation for their services, other than per diem and ordinary and necessary expenses, shall, when engaged in that capacity, be considered
employees. Furthermore, for purposes of this section, the term employee includes a person exempt from civil service pursuant to subdivision (e) of Section 4 of Article VII of the California Constitution.
(c) Nothing in this article shall be construed to do any of the following:
(1) Prevent state bodies that administer the licensing of persons engaging in businesses or professions from holding closed sessions to prepare, approve, grade, or administer examinations.
(2) Prevent an advisory body of a state body that administers the licensing of persons engaged in businesses or professions from conducting a closed session to discuss matters that the advisory body has found would constitute an unwarranted invasion of the privacy of an individual licensee or applicant if discussed in an open meeting, provided the advisory
body does not include a quorum of the members of the state body it advises. Those matters may include review of an applicant’s qualifications for licensure and an inquiry specifically related to the state body’s enforcement program concerning an individual licensee or applicant where the inquiry occurs prior to the filing of a civil, criminal, or administrative disciplinary action against the licensee or applicant by the state body.
(3) Prohibit a state body from holding a closed session to deliberate on a decision to be reached in a proceeding required to be conducted pursuant to Chapter 5 (commencing with Section 11500) or similar provisions of law.
(4) Grant a right to enter any correctional institution or the grounds of a correctional institution where that right is not otherwise granted by law, nor shall anything in this article be construed to prevent a state body from
holding a closed session when considering and acting upon the determination of a term, parole, or release of any individual or other disposition of an individual case, or if public disclosure of the subjects under discussion or consideration is expressly prohibited by statute.
(5) Prevent any closed session to consider the conferring of honorary degrees, or gifts, donations, and bequests that the donor or proposed donor has requested in writing to be kept confidential.
(6) Prevent the Alcoholic Beverage Control Appeals Board or the Cannabis Control Appeals Panel from holding a closed session for the purpose of holding a deliberative conference as provided in Section 11125.
(7) (A) Prevent a state body from holding closed sessions with its negotiator prior to the purchase, sale, exchange, or
lease of real property by or for the state body to give instructions to its negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease.
(B) However, prior to the closed session, the state body shall hold an open and public session in which it identifies the real property or real properties that the negotiations may concern and the person or persons with whom its negotiator may negotiate.
(C) For purposes of this paragraph, the negotiator may be a member of the state body.
(D) For purposes of this paragraph, “lease” includes renewal or renegotiation of a lease.
(E) Nothing in this paragraph shall preclude a state body from holding a closed session for discussions regarding eminent domain proceedings pursuant to
subdivision (e).
(8) Prevent the California Postsecondary Education Commission from holding closed sessions to consider matters pertaining to the appointment or termination of the Director of the California Postsecondary Education Commission.
(9) Prevent the Bureau for Private Postsecondary Education from holding closed sessions to consider matters pertaining to the appointment or termination of the Executive Director of the Bureau for Private Postsecondary Education.
(10) Prevent the Franchise Tax Board from holding closed sessions for the purpose of discussion of confidential tax returns or information the public disclosure of which is prohibited by law, or from considering matters pertaining to the appointment or removal of the Executive Officer of the Franchise Tax Board.
(11) Require the Franchise Tax Board to notice or disclose any confidential tax information considered in closed sessions, or documents executed in connection therewith, the public disclosure of which is prohibited pursuant to Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
(12) Prevent the Board of State and Community Corrections from holding closed sessions when considering reports of crime conditions under Section 6027 of the Penal Code.
(13) Prevent the State Air Resources Board from holding closed sessions when considering the proprietary specifications and performance data of manufacturers.
(14) Prevent the State Board of Education or the Superintendent of Public Instruction, or any
committee advising the board or the Superintendent, from holding closed sessions on those portions of its review of assessment instruments pursuant to Chapter 5 (commencing with Section 60600) of Part 33 of Division 4 of Title 2 of the Education Code during which actual test content is reviewed and discussed. The purpose of this provision is to maintain the confidentiality of the assessments under review.
(15) Prevent the Department of Resources Recycling and Recovery or its auxiliary committees from holding closed sessions for the purpose of discussing confidential tax returns, discussing trade secrets or confidential or proprietary information in its possession, or discussing other data, the public disclosure of which is prohibited by law.
(16) Prevent a state body that invests retirement, pension, or endowment funds from holding closed sessions when considering investment
decisions. For purposes of consideration of shareholder voting on corporate stocks held by the state body, closed sessions for the purposes of voting may be held only with respect to election of corporate directors, election of independent auditors, and other financial issues that could have a material effect on the net income of the corporation. For the purpose of real property investment decisions that may be considered in a closed session pursuant to this paragraph, a state body shall also be exempt from the provisions of paragraph (7) relating to the identification of real properties prior to the closed session.
(17) Prevent a state body, or boards, commissions, administrative officers, or other representatives that may properly be designated by law or by a state body, from holding closed sessions with its representatives in discharging its responsibilities under Chapter 10 (commencing with Section 3500), Chapter 10.3 (commencing with
Section 3512), Chapter 10.5 (commencing with Section 3525), or Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 as the sessions relate to salaries, salary schedules, or compensation paid in the form of fringe benefits. For the purposes enumerated in the preceding sentence, a state body may also meet with a state conciliator who has intervened in the proceedings.
(18) (A) Prevent a state body from holding closed sessions to consider matters posing a threat or potential threat of criminal or terrorist activity against the personnel, property, buildings, facilities, or equipment, including electronic data, owned, leased, or controlled by the state body, where disclosure of these considerations could compromise or impede the safety or security of the personnel, property, buildings, facilities, or equipment, including electronic data, owned, leased, or controlled by the state body.
(B) Notwithstanding any other law, a state body, at any regular or special meeting, may meet in a closed session pursuant to subparagraph (A) upon a two-thirds vote of the members present at the meeting.
(C) After meeting in closed session pursuant to subparagraph (A), the state body shall reconvene in open session prior to adjournment and report that a closed session was held pursuant to subparagraph (A), the general nature of the matters considered, and whether any action was taken in closed session.
(D) After meeting in closed session pursuant to subparagraph (A), the state body shall submit to the Legislative Analyst written notification stating that it held this closed session, the general reason or reasons for the closed session, the general nature of the matters considered, and whether any action was taken in
closed session. The Legislative Analyst shall retain for no less than four years any written notification received from a state body pursuant to this subparagraph.
(19) Prevent the California Sex Offender Management Board from holding a closed session for the purpose of discussing matters pertaining to the application of a sex offender treatment provider for certification pursuant to Sections 290.09 and 9003 of the Penal Code. Those matters may include review of an applicant’s qualifications for certification.
(20) (A) Prevent the Research Advisory Panel established in Sections 11480 and 11481 of the Health and Safety Code from holding closed sessions for the purpose of discussing, reviewing, and approving research projects, including applications and amendment applications, that contain sensitive and confidential information, including, but not limited to,
trade secrets, intellectual property, or proprietary information in its possession, the public disclosure of which is prohibited by law.
(B) This paragraph shall become inoperative on January 1, 2028.
(21) (A) (i) Prevent the governing board or advisory panel of the California Earthquake Authority described in Section 10089.7 of the Insurance Code from holding a closed session, to the extent that session would address the development of rates, reinsurance, and strategy, pursuant to the powers granted in paragraph (5) of subdivision (c) of Section 10089.7 of the Insurance Code, paragraph (7) of subdivision (b) of Section 10089.33 of the Insurance Code, and subdivision (a) of Section 10089.40 of the Insurance Code, when discussion in
open session concerning those matters would prejudice the position of the California Earthquake Authority.
(ii) Prevent the California Catastrophe Response Council described in Section 8899.70 from holding a closed session, to the extent that session would address either of the following:
(I) The administration or evaluation of individual claims submitted for reimbursement from the Wildfire Fund or the Continuation Account, including claim settlement information and personally identifiable information concerning a wildfire survivor or individual claimant, when discussion of those matters in open session would breach a confidentiality or privilege protection applicable to that information or would constitute an unwarranted invasion of personal privacy.
(II) The development of strategy related to reinsurance or other mechanisms to extend the durability of the Wildfire Fund or the Continuation Account pursuant to the powers granted to the council under Section 3284 of the Public Utilities Code and Section 8899.70 of this code, if discussion of those matters in an open session would prejudice the position of the administrator or the Wildfire Fund.
(B) Notwithstanding any other provision of law, the governing board or advisory panel of the California Earthquake Authority,
or the California Catastrophe Response Council, at any regular or special meeting, may meet in a closed session pursuant to subparagraph (A) upon a two-thirds vote of the members present at the meeting taken after first providing an opportunity for members of the public to be heard on the issue of the appropriateness of meeting in closed session.
(C) After meeting in closed session pursuant to subparagraph (A), the governing board or advisory panel of the California Earthquake Authority or the California Catastrophe Response Council shall reconvene in open session prior to before adjournment and report that
a closed session was held pursuant to subparagraph (A), the general nature of the matters considered, and whether any action was taken in closed session.
(D) If the duration of a closed session held pursuant to subparagraph (A) is longer than two hours, the governing board or advisory panel of the California Earthquake Authority or the California Catastrophe Response Council shall provide reasonable notice to the public, either by email to the California Earthquake Authority’s public notice list or by posting on the California Earthquake Authority’s website, before reconvening in open session pursuant to subparagraph (C).
(d) (1) Notwithstanding any other law, any meeting of the Public Utilities Commission at which the rates of entities under the
commission’s jurisdiction are changed shall be open and public.
(2) Nothing in this article shall be construed to prevent the Public Utilities Commission from holding closed sessions to deliberate on the institution of proceedings, or disciplinary actions against any person or entity under the jurisdiction of the commission.
(e) (1) Nothing in this article shall be construed to prevent a state body, based on the advice of its legal counsel, from holding a closed session to confer with, or receive advice from, its legal counsel regarding pending litigation when discussion in open session concerning those matters would prejudice the position of the state body in the litigation.
(2) For purposes of this article, all expressions of the lawyer-client privilege other than those provided in this
subdivision are hereby abrogated. This subdivision is the exclusive expression of the lawyer-client privilege for purposes of conducting closed session meetings pursuant to this article. For purposes of this subdivision, litigation shall be considered pending when any of the following circumstances exist:
(A) An adjudicatory proceeding before a court, an administrative body exercising its adjudicatory authority, a hearing officer, or an arbitrator, to which the state body is a party, has been initiated formally.
(B) (i) A point has been reached where, in the opinion of the state body on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the state body.
(ii) Based on existing facts and circumstances, the state body is
meeting only to decide whether a closed session is authorized pursuant to clause (i).
(C) Based on existing facts and circumstances, the state body has decided to initiate or is deciding whether to initiate litigation.
(3) The legal counsel of the state body shall prepare and submit to it a memorandum stating the specific reasons and legal authority for the closed session. If the closed session is pursuant to subparagraph (A) of paragraph (2), the memorandum shall include the title of the litigation. If the closed session is pursuant to subparagraph (B) or (C) of paragraph (2), the memorandum shall include the existing facts and circumstances on which it is based. The legal counsel shall submit the memorandum to the state body prior to the closed session, if feasible, and in any case no later than one week after the closed session. The memorandum shall be exempt from disclosure
pursuant to Section 7927.205.
(4) For purposes of this subdivision, “litigation” includes any adjudicatory proceeding, including eminent domain, before a court, administrative body exercising its adjudicatory authority, hearing officer, or arbitrator.
(5) Disclosure of a memorandum required under this subdivision shall not be deemed as a waiver of the lawyer-client privilege, as provided for under Article 3 (commencing with Section 950) of Chapter 4 of Division 8 of the Evidence Code.
(f) In addition to subdivisions (a), (b), and (c), nothing in this article shall be construed to do any of the following:
(1) Prevent a state body operating under a joint powers agreement for insurance pooling from holding a closed session to discuss a claim for the
payment of tort liability or public liability losses incurred by the state body or any member agency under the joint powers agreement.
(2) Prevent the examining committee established by the State Board of Forestry and Fire Protection, pursuant to Section 763 of the Public Resources Code, from conducting a closed session to consider disciplinary action against an individual professional forester prior to the filing of an accusation against the forester pursuant to Section 11503.
(3) Prevent the enforcement advisory committee established by the California Board of Accountancy pursuant to Section 5020 of the Business and Professions Code from conducting a closed session to consider disciplinary action against an individual accountant prior to the filing of an accusation against the accountant pursuant to Section 11503. Nothing in this article shall be construed to prevent the
qualifications examining committee established by the California Board of Accountancy pursuant to Section 5023 of the Business and Professions Code from conducting a closed hearing to interview an individual applicant or accountant regarding the applicant’s qualifications.
(4) Prevent a state body, as defined in subdivision (b) of Section 11121, from conducting a closed session to consider any matter that properly could be considered in closed session by the state body whose authority it exercises.
(5) Prevent a state body, as defined in subdivision (d) of Section 11121, from conducting a closed session to consider any matter that properly could be considered in a closed session by the body defined as a state body pursuant to subdivision (a) or (b) of Section 11121.
(6) Prevent a state body, as defined in subdivision
(c) of Section 11121, from conducting a closed session to consider any matter that properly could be considered in a closed session by the state body it advises.
(7) Prevent the State Board of Equalization from holding closed sessions for either of the following:
(A) When considering matters pertaining to the appointment or removal of the Executive Secretary of the State Board of Equalization.
(B) For the purpose of hearing confidential taxpayer appeals or data, the public disclosure of which is prohibited by law.
(8) Require the State Board of Equalization to disclose any action taken in closed session or documents executed in connection with that action, the public disclosure of which is prohibited by law pursuant to Sections 15619 and 15641 of this
code and Sections 833, 7056, 8255, 9255, 11655, 30455, 32455, 38705, 38706, 43651, 45982, 46751, 50159, 55381, and 60609 of the Revenue and Taxation Code.
(9) Prevent the California Earthquake Prediction Evaluation Council, or other body appointed to advise the Director of Emergency Services or the Governor concerning matters relating to volcanic or earthquake predictions, from holding closed sessions when considering the evaluation of possible predictions.
(g) This article does not prevent either of the following:
(1) The Teachers’ Retirement Board or the Board of Administration of the Public Employees’ Retirement System from holding closed sessions when considering matters pertaining to the recruitment, appointment, employment, or removal of the chief executive officer or when considering matters pertaining to the
recruitment or removal of the Chief Investment Officer of the State Teachers’ Retirement System or the Public Employees’ Retirement System.
(2) The Commission on Teacher Credentialing from holding closed sessions when considering matters relating to the recruitment, appointment, or removal of its executive director.
(h) This article does not prevent the Board of Administration of the Public Employees’ Retirement System from holding closed sessions when considering matters relating to the development of rates and competitive strategy for plans offered pursuant to Chapter 15 (commencing with Section 21660) of Part 3 of Division 5.
(i) This article does not prevent the Managed Risk Medical Insurance Board from holding closed sessions when considering matters related to the development of rates and contracting strategy
for entities contracting or seeking to contract with the board, entities with which the board is considering a contract, or entities with which the board is considering or enters into any other arrangement under which the board provides, receives, or arranges services or reimbursement, pursuant to Part 6.2 (commencing with Section 12693), former Part 6.3 (commencing with Section 12695), former Part 6.4 (commencing with Section 12699.50), former Part 6.5 (commencing with Section 12700), former Part 6.6 (commencing with Section 12739.5), or former Part 6.7 (commencing with Section 12739.70) of Division 2 of the Insurance Code.
(j) Nothing in this article shall be construed to prevent the board of the State Compensation Insurance Fund from holding closed sessions in the following:
(1) When considering matters related to claims pursuant to Chapter 1 (commencing with Section 3200) of
Part 1 of Division 4 of the Labor Code, to the extent that confidential medical information or other individually identifiable information would be disclosed.
(2) To the extent that matters related to audits and investigations that have not been completed would be disclosed.
(3) To the extent that an internal audit containing proprietary information would be disclosed.
(4) To the extent that the session would address the development of rates, contracting strategy, underwriting, or competitive strategy, pursuant to the powers granted to the board in Chapter 4 (commencing with Section 11770) of Part 3 of Division 2 of the Insurance Code, when discussion in open session concerning those matters would prejudice the position of the State Compensation Insurance Fund.
(k) The State Compensation Insurance Fund shall comply with the procedures specified in Section 11125.4 with respect to any closed session or meeting authorized by subdivision (j), and in addition shall provide an opportunity for a member of the public to be heard on the issue of the appropriateness of closing the meeting or session.
SEC. 5.
Section 929.4 is added to the Insurance Code, immediately following Section 929.3, to read:929.4.
(a) Any published data product collected pursuant to Section 929 that is submitted pursuant to subdivision (b) shall present only data and indices processed, anonymized, and aggregated sufficiently to avoid identification of individual company losses, claims data, or information on confidential business practices, and any subsequent reports shall not identify an individual respondent or insurer.(b) The department may provide information submitted to the department, including, but not limited to, information submitted pursuant to Section 929, to researchers and government agencies, pursuant to the Information Practices Act of 1977 (Chapter 1 (commencing with Section 1798) of Title 1.8 of Part 4 of Division 3 of the Civil Code), including, but
not limited to, paragraph (1) of subdivision (t) of Section 1798.24 of the Civil Code for the purpose of evaluating California wildfire risk, insurance protection gaps, or wildfire risk mitigation, including, but not limited to, performance of mandatory and optional factors described in Section 2644.9 of Title 10 of the California Code of Regulations.
(c) This section does not exempt information collected pursuant to Section 929 that is submitted pursuant to subdivision (b) from the confidentiality requirements of Section 929.1.
SEC. 6.
Section 4124.5 of the Public Resources Code is amended to read:4124.5.
(a) The department shall establish a local assistance grant program for fire prevention and home hardening education activities in California. Groups eligible for grants shall include, but are not limited to, local agencies, resource conservation districts, fire safe councils, the California Conservation Corps, certified community conservation corps as defined in Section 14507.5, University of California Cooperative Extension, the Board of Commissioners under CaliforniaVolunteers described in Section 8411 of the Government Code, Native American tribes, and qualified nonprofit organizations. The department may establish a cost-share requirement for one or more categories of projects.(b) (1) The local assistance grant program shall
establish a robust year-round fire prevention effort in and near fire-threatened communities that focuses on increasing the protection of people, structures, and communities. To the maximum extent practicable, the grants shall be designed to be durable and adaptively managed so that while improving resiliency to wildfire, the projects, when on forest land, retain a mixture of species and sizes of trees to protect habitat values. The department shall prioritize, to the extent feasible, projects that are multiyear efforts.
(2) For purposes of this subdivision, “fire-threatened communities” means those communities in high and very high fire hazard severity zones, identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, Code or Article 9 (commencing with Section 4201) of this code, or on the “Fire Risk Reduction Community” list maintained by the board pursuant to Section 4290.1.
(c) Eligible activities shall include, but not be limited to, all of the following:
(1) Development and implementation of public education and outreach programs. Programs may include technical assistance, new technologies, game elements to enhance and accelerate the education of property owners, workforce recruitment and training, and equipment purchases.
(2) Fire prevention activities as defined in Section 4124.
(3) Projects to
improve compliance with defensible space requirements as required by Section 4291 through increased inspections, assessments, and assistance for residents with relevant socioeconomic characteristics, as defined in Section 8654.7 of the Government Code.
(4) Technical assistance to local agencies to improve fire prevention and reduce fire hazards.
(5) Creation of additional “Firewise USA” communities in the state or other community planning or certification programs deemed as appropriate by the department.
(6) Projects to improve public safety, including, but not limited to, access to emergency equipment and improvements to public evacuation routes.
(7) Vegetation management along roadways and driveways
roadways, driveways, and electrical power line infrastructure, to reduce fire risk. Where appropriate, the Department of Transportation shall be consulted if state infrastructure will be affected. Those projects shall remain consistent with paragraph (1) of subdivision (b).
(8) Public education outreach regarding making homes and communities more wildfire resilient, including training on defensible space and prescribed grazing.
(9) Projects to reduce the flammability of structures and communities to prevent their ignition from wind-driven embers.
(10) Development of a risk reduction checklist for communities that includes defensible space criteria, structural vulnerability potential, and personal evacuation plans.
(11) (A) Projects involving the application of prescribed grazing, which may include the installation of fencing or watering improvements.
(B) Watering improvements described in subparagraph (A) shall not include the creation of a well or replacement of well infrastructure.
(d) The department may consider the fire risk of an area, the geographic balance of projects, and whether the project is complementary to other fire prevention or forest health activities when awarding local assistance grants.
(e) (1) When reviewing applications for the grant
program created pursuant to this section, the department shall prioritize local assistance grant awards based on each project’s quantifiable return on investment incorporated into a county-level community wildfire protection plan developed pursuant to Section 4209.9. The department shall also give priority to any local governmental entity qualified to perform defensible space assessments pursuant to Section 4291.5 in very high and high fire hazard severity zones, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code or Article 9 (commencing with Section 4201) of this chapter or by a local agency pursuant to Section 51179 of the Government Code, for using the common reporting platform created pursuant to subdivision (c) of Section 4291.5 to report that information.
(2) The method to calculate the quantifiable return on investment including all parameter values used shall be public information and developed through the same process as that used to develop the grant program evaluation criteria.
(f) (1) The director may authorize advance payments from a grant awarded pursuant to this section. The advance payment shall not exceed 25 percent of the total grant award. The director may authorize a greater amount, not to exceed 50 percent of either the total grant award or the cost of equipment or supplies, whichever amount is less, for the purpose of purchasing necessary equipment or supplies.
(2) The grantee shall expend the funds from the advance payment within six months of receipt, unless the department waives this requirement.
(3) The grantee shall file an accountability report with the department no later than six months from the date of receiving the funds and no later than every six months thereafter.
(g)Until July 1, 2025, the department may authorize advance payments on a grant awarded under this section in accordance with subdivision (d) of Section 11019.1 of the Government Code.
(h)
(g) The department may expand or amend an existing grant program to meet the requirements of this section.
(i)
(h) Funding for the local assistance grant program created pursuant to this section shall be made upon appropriation by the Legislature.
SEC. 7.
Section 4137 of the Public Resources Code is repealed.(a)For purposes of this section, the following terms apply:
(1)“Activities” means the specific actions performed to support a treatment, including, but not limited to, mechanical fuel reduction, hand fuel reduction, prescribed fire, or any other appropriate activities.
(2)“Fire prevention efforts” include, but are not limited to, all of the following:
(A)Fire prevention education.
(B)Hazardous fuel reduction and vegetation management treatments and activities.
(C)Fire investigation.
(D)Civil cost recovery.
(E)Forest and fire law enforcement.
(F)Fire prevention engineering.
(G)Prefire planning.
(H)Risk analysis.
(I)Volunteer programs and partnerships.
(3)“Participating in wildfire resilience activities” means dedicating an average of at least 15 percent of working hours, but less than 75 percent of working hours, to wildfire resilience-related activities.
(4)“Primarily focused on wildfire resilience activities” means dedicating an average of at least 75 percent of working hours to wildfire resilience-related activities.
(5)“Treatment” means actions conducted on the ground to meet a management objective, including, but not limited to, installation and maintenance of fuel breaks, fuels reduction, roadside fuels reduction, forest thinning, prescribed fire, reforestation, timber harvesting, fuel treatments in the wildland-urban interface, dead fuel removal, and all other treatments that reasonably could be considered fuels reduction or vegetation management.
(6)“Unique” means nonduplicated for the reporting year and, where multiple years are reported, across all of the years reported.
(7)“Wildfire resilience activities” include, but are not limited to, defensible space inspections and the activities identified in subparagraphs (A) and (B) of paragraph (2).
(b)It is the intent of the Legislature that the year-round staffing and the
shift to a 66-hour workweek that have been provided to the department pursuant to memorandums of understanding with the state will result in significant increases in the department’s current level of fire prevention and wildfire resilience activities. It is also the intent of the Legislature that the budgetary augmentations for year-round staffing not reduce the reimbursements that the department receives from contracts with local governments for the department to provide local fire protection and emergency services pursuant to Section 4144, commonly referred to as “Amador agreements.”
(c)On or before
March 1 of each year, the department shall provide a report to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate Committee on Natural Resources and Water, the Assembly Committee on Natural Resources, and the Legislative Analyst’s Office, in accordance with Section 9795 of the Government Code, detailing the department’s fire prevention efforts, including the increased activities described in subdivision (b). The report shall
display the fire prevention efforts of the previous fiscal year, as well as the information from
each of the prior two reporting years for purposes of a comparison of data. The report shall include, but not be limited to, by department administrative unit and statewide total, all of the following:
(1)Fire prevention efforts performed by the department on lands designated as state responsibility areas. The fire prevention efforts included in the report pursuant to this paragraph shall include, but not be limited to, all of the following:
(A)The number of hours department personnel spent primarily focused on wildfire resilience activities, by activity, the number of hours department personnel spent participating in wildfire resilience activities, by activity, and the number of hours spent on emergency incident response, by type.
(B)The number of department personnel by classification that are (i) primarily focused on wildfire resilience activities and (ii) participating in wildfire resilience activities.
(C)The number of citations issued for noncompliance with Section 4291.
(D)The number of unique parcels inspected by department personnel for compliance with defensible space requirements.
(E)The number of unique parcels that are eligible to be inspected by department personnel for compliance with defensible space requirements.
(F)The total number of defensible space inspections conducted by department personnel.
(G)(i)The number of geographical acres treated by department personnel to improve wildfire resilience that are not defensible space inspections. No treated acre shall be counted more than one time per report period.
(ii)The number of geographical acres treated by department personnel, by treatment type, to improve wildfire resilience that are not defensible space inspections.
(H)The total number of acres treated by department personnel, by activity, to improve wildfire resilience.
(I)The funding sources and estimated amounts for the fire prevention efforts described in this subdivision, itemized by the activity categories described in subparagraphs (A) to (H), inclusive.
(J)Any other data or qualitative information deemed necessary by the department in order to provide the Legislature with a clear and accurate accounting of fire prevention efforts, particularly with regard to variations from one year to the next. The department may include recommendations for updating the reporting requirements in this section to reflect changes in science and best practices related to the tracking and monitoring of fire prevention efforts.
(2)Fire prevention efforts performed by counties, pursuant to Sections 4129 and 4132, that shall include, but not be limited to, all of the following:
(A)The number of hours of fire prevention education performed.
(B)The number of defensible space inspections conducted by county.
(C)The number of citations issued for noncompliance with Section 4291.
(D)The number of acres treated by mechanical fuel reduction.
(E)The number of acres treated by prescribed burns.
(F)Any other data or qualitative information deemed necessary by the department in order to provide the Legislature with a clear and accurate accounting of fire prevention efforts, particularly with regard to variations from one year to the next.
(3)Projected fire prevention efforts for the following fiscal year.
(4)Information on each of the “Amador contracts” described in subdivision (b), including an annual update on the number of those contracts and reimbursements received from the contracts that are in effect.
(d)Wildfire resilience activities that are not conducted by department personnel shall not be included in the data required to be reported in paragraph (1) of subdivision (c). Defensible space inspections shall not be included in the data reported in subparagraphs (G) and (H) of paragraph (1) of subdivision (c). The department shall define the scope of each treatment type that data is reported on in subparagraph (G) of paragraph (1) of subdivision (c) and each activity that data is reported on in subparagraph (H)
of paragraph (1) of subdivision (c).
(e)The report required by this section shall also include estimates of the portion of the amounts identified in subdivision (c) that result from the shift to a 66-hour workweek at the department, as well as a description of the methodology used to prepare these estimates.
(f)The data reported pursuant to subparagraphs (C) to (H), inclusive, of paragraph (1) of subdivision (c), and subparagraphs (B) to (E), inclusive, of paragraph (2) of subdivision (c), shall be displayed geographically and shall be available on the Wildfire and Forest Resilience Task Force’s internet website.
(g)Information contained in the report required by this section may be incorporated by reference, as applicable, to comply with annual legislative reporting required pursuant to Section 4771 of this code
and Section 12805.9 of the Government Code.
(h)The department shall post on its internet website on or before December 31, 2023, and annually thereafter, all of the following information regarding hazardous fuel reduction and vegetation management projects funded or conducted by the department, including, but not limited to, projects funded under the department’s Forest Health Program, California Forest Improvement Program, and Wildfire Prevention Grants Program, as well as funding for CAL FIRE unit wildfire prevention projects and prescribed fire and
hand crews, for the preceding fiscal year, beginning with funding included in the 2022–23 fiscal year:
(1)What permitting mechanism was used for each project.
(2)How the collaboration with the Department of Fish and Wildlife and the State Water Resources Control Board, as required by Section 4123, was achieved for both agencies, including whether the agency reviewed the project grant proposal or project description or permit.
(3)A description of any maintenance plan or other mechanism, if available, that is in place to support maintenance of vegetation improvements over time.
(4)A description of any mitigation required for each project, and whether the mitigation has been completed.
(i)On or before December 31, 2022, the department shall develop a standardized protocol for monitoring implementation and evaluating the positive and negative ecological and fire behavior impacts from vegetation management projects undertaken by the state, consistent with the requirements of Chapter 387 of the Statutes of 2021.
(j)The department shall provide links to all documents relevant to subdivisions
(h) and
(i) on its internet website.
(k)The reporting and monitoring requirements in subdivisions (h) and (i) shall be expanded to other state agencies that undertake or fund hazardous fuel reduction and vegetation management projects by December 31,
2024, including, but not limited to, projects funded or conducted by state conservancies, the Department of Fish and Wildlife, or the Department of Parks and Recreation.
SEC. 8.
Section 4137 is added to the Public Resources Code, to read:4137.
(a) On or before March 1 of each year, the department shall prepare and submit a report to the Legislature on the detailed efforts made in California towards wildfire prevention and community preparedness. The report shall include information on both the work performed and funded by the department and local efforts towards implementation of county-level community wildfire protection plans pursuant to Section 4209.9.(b) The report shall include all of the following information:
(1) Data on the fire prevention efforts during the previous fiscal year and the data from each of the prior two reporting years for purposes of comparing the data.
(2) Progress made towards implementing the community wildfire preparedness strategy prepared pursuant to Section 4209.8.
(3) Fire prevention activities performed or funded by the department, including, but not limited to, any of the following:
(A) (i) The number of hours that department personnel, who dedicate an average of at least 75 percent of working hours to wildfire resilience-related activities, spent on fire prevention activities.
(ii) The number of hours that all other department personnel not included in clause (i) spent on fire prevention activities.
(B) The number of hours of fire prevention education and outreach performed.
(C) The number of defensible space inspections conducted by county.
(D) The number of individual structures inspected by county.
(E) The number of citations issued for noncompliance with Section 4291.
(F) The number of parcels eligible to be inspected by the department for compliance with defensible space requirements.
(G) (i) The number of acres treated through fuels reduction.
(ii) The number of unique footprint acres treated without duplicating any acres that have undergone multiple treatment activities.
(H) The number of acres treated
through prescribed fire.
(I) Any other fire prevention or community preparedness metric as determined by the State Fire Marshal.
(J) Information on how the fire prevention efforts listed in subparagraphs (C) to (E), inclusive, were prioritized based on fire risk to each parcel.
(K) The number of and total monetary value of state incentives, grants, or other financial support offered to property owners for home hardening and the total number of private properties retrofitted with home hardening materials.
(L) The number of communities that have been recognized by the department for achieving progress toward community-scale wildfire preparedness and the percentage of mitigations achieved, if the state implements a voluntary recognition program.
(4) A breakdown of the various community preparedness and fire prevention metrics and projects listed in county-level community wildfire protection plans pursuant to Section 4209.9.
(5) Fire prevention activities performed by counties pursuant to Sections 4129 and 4132, including, but not limited to, all of the following:
(A) The number of hours of fire prevention education and outreach performed.
(B) The number of defensible space inspections conducted by county.
(C) The number of citations issued for noncompliance with Section 4291.
(D) (i) The number of acres treated through fuels reduction.
(ii) The number of unique footprint acres treated without duplicating acres that have undergone multiple treatment activities.
(E) The number of acres treated through prescribed fire.
(6) Estimates of the portions of the information reported pursuant to paragraph (3) that result from the shift to a 66-hour workweek at the department, as well as a description of the methodology used to prepare these estimates.
(7) Any other data or qualitative information deemed necessary by the department in order to provide the Legislature with a clear and accurate accounting of fire prevention efforts, particularly with regard to variations from one year to the next.
(8) Information on how the fire
prevention efforts listed in subparagraphs (B) to (E), inclusive, were prioritized based on fire risk to each parcel.
(9) Information on gaps in funding or other financial resources needed to accelerate wildfire prevention efforts.
(c) The department shall provide a copy of the report to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate Committee on Natural Resources and Water, the Assembly Committee on Natural Resources, and the Legislative Analyst’s Office, in accordance with Section 9795 of the Government Code.
(d) For purposes of this section, “fire prevention activities” include, but are not limited to, the activities listed in Section 4124.
(e) It is the intent of the Legislature that the year-round
staffing and the extension of the shift to a 66-hour workweek that has been provided to the department pursuant to memorandums of understanding with the state will result in significant increases in the department’s current level of fire prevention and wildfire resilience activities. It is also the intent of the Legislature that the budgetary augmentations for year-round staffing not reduce the reimbursements that the department receives from contracts with local governments for the department to provide local fire protection and emergency services pursuant to Section 4144, commonly referred to as Amador agreements.
SEC. 9.
Section 4209.6 is added to the Public Resources Code, immediately following Section 4209.5, to read:4209.6.
(a) On or before July 1, 2029, the department, in consultation with the Department of Insurance, the Natural Resources Agency, the Office of Emergency Services, and other relevant departments, as determined by the department, shall develop standards for state and local agencies to aggregate and make available data related to parcel-, neighborhood-, and community-level wildfire risk for the purpose of enabling a wildfire data sharing platform. The purpose of this wildfire data sharing platform is to accurately measure, monitor, and enable targeted mitigation of wildfire risk in wildland-urban interface communities.(b) In developing standards for participation in a wildfire data sharing platform, the department,
in consultation with the Department of Insurance, the Natural Resources Agency, and the Office of Emergency Services, shall consider all of the following:
(1) Data collection standards and data specifications, which shall include, but not be limited to, fuels reduction activities, home hardening, defensible space, and other wildfire mitigations.
(2) Data synthesis and aggregation standards and security practices that allow progression of mitigation efforts to be tracked over time and available for reporting at appropriate levels.
(3) Data access standards, security practices, and privacy measures for state and local agencies and homeowners.
(4) Verification measures to ensure data integrity.
(5) Geographic and topographic diversity.
(c) (1) The department shall identify necessary technologies, staffing needs, governance, and related infrastructure to support a wildfire data sharing platform.
(2) The department, in consultation with the Department of Insurance and the Office of Emergency Services, shall develop an implementation plan that defines the core data, reporting, mapping components, and the roles and responsibilities necessary for developing and maintaining a wildfire data sharing platform.
(d) This chapter does not prohibit a state or local agency from participating in a public-private
partnership to establish a wildfire data sharing platform before the completion of standards developed by the department.
(e) The department may enter into data sharing agreements with participating insurers, modelers, actuaries, and state and local agencies as necessary to enable a wildfire data sharing platform.
(f) In order to align wildfire mitigation funding and community planning to reduce the impacts of wildfire, to align the standards developed by the department with various key actions of the California Wildfire and Landscape Resilience Action Plan created pursuant to Section 4771, and to model and quantify the impacts of risk mitigation efforts, the department shall incorporate the data standards in subdivision (a) into community wildfire risk reduction metrics.
SEC. 10.
Section 4209.8 is added to the Public Resources Code, immediately following Section 4209.5, to read:4209.8.
(a) On or before July 1, 2027, and every five years thereafter, the Secretary of the Natural Resources Agency, in consultation with the State Fire Marshal, the Wildfire and Forest Resilience Task Force, the Wildfire County Coordinator Program, and the State Hazard Mitigation Officer shall prepare a comprehensive statewide community wildfire preparedness strategy.(b) The community wildfire preparedness strategy shall commit to community-scale wildfire risk reduction through stronger coordination, increased local capacity, shared risk reduction data, mitigation planning, and accountability mechanisms, and shall include, but not be limited to, all of the following goals:
(1) Strengthening community and structure wildfire mitigation.
(2) Building local and regional wildfire preparedness capacity.
(3) Establishing consistent wildfire metrics, data, and decision support systems.
(4) Strengthening wildfire public awareness, education, and behavior change.
(5) Reducing human-caused wildfire ignitions.
(c) (1) The State Fire Marshal shall develop the community wildfire preparedness strategy in coordination with the Wildfire Mitigation Advisory Committee and relevant stakeholders.
(2) The State Fire Marshal shall, to receive appropriate input and feedback,
subsequently consult with the Wildfire Mitigation Advisory Committee established pursuant to Section 4209.4, the California Fire Safe Council, and other key stakeholders, including, but not limited to, representatives from the utility insurance industry, on the draft community wildfire preparedness strategy before finalizing the community wildfire preparedness strategy.
(d) The community wildfire preparedness strategy shall incorporate relevant recommendations from the report described in subdivision (b) of Section 719 of the Public Utilities Code, the community preparedness key actions from the 2026 California Wildfire and Landscape Resilience Action Plan, and planning developed pursuant to the Wildfire County Coordinator Program, to do all of the following:
(1) Establish statewide community preparedness targets.
(2) Establish data standards for structural vulnerability and risk modeling, incorporating the efforts the department is conducting pursuant to Section 4209.6.
(3) Establish community wildfire protection plans to coordinate and prioritize projects.
(4) Support home hardening retrofitting and defensible space compliance.
(5) Build local capacity for coordination.
(6) Develop a set of tools and training, as needed, for county coordinators that supports alignment with public messaging.
(7) Establish clear targets for prioritization of projects based on maximum wildfire risk reduction.
(8) The Department of Insurance
Safer From Wildfire regulations and the State Hazard Mitigation Plan shall maintain consistency with the community wildfire preparedness strategy, where feasible.
(9) Identify and support agreements with insurance providers to mitigate wildfire risks to homes and communities that would satisfy the risk reduction goals as required by Section 4291.
(e) The actions in the community wildfire preparedness strategy shall be based on fire safety science determined by the State Fire Marshal and aligned with Section 2644.9 of Title 10 of the California Code of Regulations.
(f) The progress of the preparation of the community wildfire preparedness strategy shall be reported to the Legislature as part of the fire prevention report provided pursuant to Section 4137.
SEC. 11.
Section 4209.9 is added to the Public Resources Code, to read:4209.9.
(a) (1) The State Fire Marshal shall support communities in the development of county-level community wildfire protection plans that align with the statewide community wildfire preparedness strategy prepared pursuant to Section 4209.8 and local hazard mitigation plans.(2) Community wildfire protection plans shall use consistent metrics to measure community wildfire mitigation projects across the state.
(3) Each community wildfire protection plan shall incorporate all local wildfire mitigation projects within the county’s boundaries and prioritize the projects according to their quantifiable return on investment, based on data standards for wildfire risk
reduction modeling set by the State Fire Marshal.
(b) The State Fire Marshal may, based on available funding, provide tools that analyze wildfire risk reduction through risk modeling and use resources to develop new messaging and education materials.
(c) To implement this section, the State Fire Marshal shall use its Community Wildfire Mitigation Assistance Program established pursuant to Section 4209.5, and shall maintain updated guidance and toolkits for the development of community wildfire protection plans.
(d) To receive state funding to support the implementation of a community wildfire protection plan, a local entity shall provide a copy of its completed community wildfire protection plan to the State Fire Marshal, who shall post the community wildfire protection plan on its internet website. The local entity
shall also provide annual updates and progress on its efforts to meet the goals of its community wildfire protection plan. State funding allocated to a local entity shall only be spent at the local entity’s discretion on wildfire mitigations projects that are included in the county-level community wildfire protection plan and consistent with the comprehensive statewide community wildfire preparedness strategy.
SEC. 12.
Section 719.7 is added to the Public Utilities Code, to read:719.7.
Notwithstanding any other law, for any claim based on inverse condemnation against an electrical corporation arising from a covered wildfire caused by an electrical corporation, the fee for an attorney representing an insurer involving a subrogated claim shall not exceed 10 percent of the settlement or judgment.SEC. 13.
Section 850 of the Public Utilities Code is amended to read:850.
(a) This article applies in any of the following circumstances:(1) If an electrical corporation applies to the commission for recovery of costs and expenses related to a catastrophic wildfire and the commission finds some or all of the costs and expenses to be reasonable pursuant to Section 451.1, or for the amount of costs and expenses determined pursuant to subdivision (c) of Section 451.2, then the electrical corporation may file an application requesting the commission to issue a financing order to authorize these costs and expenses to be recovered through fixed recovery charges pursuant to this article.
(2) If an electrical corporation submits an application for recovery of costs and expenses
related to catastrophic wildfires, including fire risk mitigation capital expenditures identified in subdivision (e) of Section 8386.3 or subdivision (a) of Section 8386.10, in a proceeding to recover costs and expenses in rates and the commission finds that some or all of the costs and expenses identified in the electrical corporation’s application are just and reasonable pursuant to Section 451, the electrical corporation may file an application requesting the commission to issue a financing order to authorize the recovery of those just and reasonable costs and expenses by means of a financing order, with those costs and expenses being recovered through a fixed charge pursuant to this article. This paragraph does not apply for costs and expenses incurred by the electrical corporation after December 31, 2035.
(3) Notwithstanding paragraphs (1) and (2), for a catastrophic wildfire that was ignited between January 1, 2025, and the effective date
of this paragraph, if a large electrical corporation has settled or finally adjudicated claims and the Wildfire Fund assets are exhausted, the electrical corporation, before filing an application for a just and reasonable determination pursuant to Section 451 or 451.1, may file an application requesting the commission to issue a financing order to authorize the costs and expenses of those settled and finally adjudicated claims that cannot be paid by the Wildfire Fund to be recovered through fixed recovery charges pursuant to this article. For purposes of this paragraph, “large electrical corporation” and “Wildfire Fund assets” have the same meanings as set forth in Section 3280.
(4) (A) An electrical corporation may file an application requesting the commission to issue a financing order to authorize the recovery of verified incremental undercollection amounts for calendar year 2020 through fixed recovery charges pursuant
to this article, if an electrical corporation’s annual true-up advice letter is accepted and either or both of the following incremental undercollection amounts are verified for calendar year 2020:
(i) An incremental undercollection amount equal to the difference between the forecasted amount of billed revenues for that year, based on the authorized sales forecast, and the revenues actually billed by an electrical corporation with respect to all revenue balancing accounts, if the incremental amount as a percent of the forecasted amount of billed revenues for that year is at least 5 percent.
(ii) An incremental undercollection amount equal to the residential and small business customer bad debt expense recorded for that year that exceeds the bad debt expense for that year that was adopted by the commission in the general rate case, if the incremental undercollection amount is
otherwise eligible for recovery in rates.
(B) The incremental undercollection amounts subject to a commission-approved financing order shall be prohibited from being recovered through any other cost recovery application, mechanism, or request by the electrical corporation.
(C) The commission shall ensure any costs included in incremental undercollections described in this paragraph and subject to a financing order are just and reasonable consistent with the requirements of subdivision (a) of Section 850.1.
(D) In resolving a request for the issuance of a financing order, the commission may assign cost recovery to each customer class based on their contribution to the incremental undercollection described in this paragraph.
(b) For purposes of this
article, the following terms shall have the following meanings:
(1) “Ancillary agreement” means a bond insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other similar agreement or arrangement entered into in connection with the issuance of recovery bonds that is designed to promote the credit quality and marketability of the bonds or to mitigate the risk of an increase in interest rates.
(2) “Catastrophic wildfire amounts” means the portion of costs and expenses the commission finds to be just and reasonable pursuant to Section 451.1 or the amount determined pursuant to subdivision (c) of Section 451.2.
(3) “Consumer” means any individual, governmental body, trust, business entity, or nonprofit organization that
consumes electricity that has been transmitted or distributed by means of electrical transmission or distribution facilities, whether those electrical transmission or distribution facilities are owned by the consumer, the electrical corporation, or any other party.
(4) “Financing costs” means the costs to issue, service, repay, or refinance recovery bonds, whether incurred or paid upon issuance of the recovery bonds or over the life of the recovery bonds, if they are approved for recovery by the commission in a financing order. “Financing costs” may include any of the following:
(A) Principal, interest, and redemption premiums that are payable on recovery bonds.
(B) A payment required under an ancillary agreement.
(C) An amount required to fund or
replenish reserve accounts or other accounts established under an indenture, ancillary agreement, or other financing document relating to the recovery bonds.
(D) Taxes, franchise fees, or license fees imposed on fixed recovery charges.
(E) Costs related to issuing and servicing recovery bonds or the application for a financing order, including, without limitation, servicing fees and expenses, trustee fees and expenses, legal fees and expenses, accounting fees, administrative fees, underwriting and placement fees, financial advisory fees, original issue discount, capitalized interest, rating agency fees, and any other related costs that are approved for recovery in the financing order.
(F) Other costs as specifically authorized by a financing order.
(5) “Financing entity” means the electrical corporation or any subsidiary or affiliate of the electrical corporation that is authorized by the commission to issue recovery bonds or acquire recovery property, or both.
(6) “Financing order” means an order of the commission adopted in accordance with this article, which shall include, without limitation, a procedure to require the expeditious approval by the commission of periodic adjustments to fixed recovery charges and to any associated fixed recovery tax amounts included in that financing order to ensure recovery of all recovery costs and the costs associated with the proposed recovery, financing, or refinancing thereof, including the costs of servicing and retiring the recovery bonds contemplated by the financing order.
(7) “Fixed recovery charges” means those nonbypassable rates and other charges, including, but
not limited to, distribution, connection, disconnection, and termination rates and charges, that are authorized by the commission in a financing order to recover both of the following:
(A) Recovery costs specified in the financing order.
(B) The costs of recovering, financing, or refinancing those recovery costs through a plan approved by the commission in the financing order, including the costs of servicing and retiring recovery bonds.
(8) “Fixed recovery tax amounts” means those nonbypassable rates and other charges, including, but not limited to, distribution, connection, disconnection, and termination rates and charges, that are needed to recover federal and State of California income and franchise taxes associated with fixed recovery charges authorized by the commission in a financing order, but are not
approved as financing costs financed from proceeds of recovery bonds.
(9) “Recovery bonds” means bonds, notes, certificates of participation or beneficial interest, or other evidences of indebtedness or ownership, issued pursuant to an executed indenture or other agreement of a financing entity, the proceeds of which are used, directly or indirectly, to recover, finance, or refinance recovery costs, and that are directly or indirectly secured by, or payable from, recovery property.
(10) “Recovery costs” means any of the following:
(A) The catastrophic wildfire amounts or costs pursuant to paragraph (2) or (3) of subdivision (a) authorized by the commission in a financing order for recovery.
(B) The incremental undercollection amounts that the commission authorizes for recovery in a financing order pursuant to paragraph (3) (4) of subdivision (a).
(C) Federal and State of California income and franchise taxes associated with recovery of the amounts pursuant to subparagraph (A) or (B).
(D) Financing costs.
(E) Professional fees, consultant fees, redemption premiums, tender premiums, and other costs incurred by the electrical corporation in using proceeds of recovery bonds to acquire outstanding securities of the electrical corporation, as authorized by the
commission in a financing order.
(11) (A) “Recovery property” means the property right created pursuant to this article, including, without limitation, the right, title, and interest of the electrical corporation or its transferee:
(i) In and to the fixed recovery charges established pursuant to a financing order, including all rights to obtain adjustments to the fixed recovery charges in accordance with Section 850.1 and the financing order.
(ii) To be paid the amount that is determined in a financing order to be the amount that the electrical corporation or its transferee is lawfully entitled to receive pursuant to the provisions of this article and the proceeds thereof, and in and to all revenues, collections, claims, payments, moneys, or proceeds of or arising from the fixed recovery charges
that are the subject of a financing order.
(B) “Recovery property” shall not include a right to be paid fixed recovery tax amounts.
(C) “Recovery property” shall constitute a current property right, notwithstanding the fact that the value of the property right will depend on consumers using electricity or, in those instances where consumers are customers of the electrical corporation, the electrical corporation performing certain services.
(12) (A) “Revenue balancing account” means a balancing account reflecting the balance between the electrical corporation’s authorized revenue requirements relating to the volumetric sale of electricity and billed revenues associated with those sales. A revenue balancing account includes accounts reflecting the balance between the electrical corporation’s
authorized distribution base revenue requirements and recorded billed revenues from authorized distribution rates, and accounts reflecting the difference between the amount of the discount provided to consumers enrolled in the California Alternative Rates for Energy (CARE) program and the CARE surcharge charged to non-CARE consumers.
(B) “Revenue balancing account” shall not include amounts reflecting the balance between costs and expenses relating to fuel and purchased electricity by the electrical corporation.
(13) “Service territory” means the geographical area that the electrical corporation provides with electrical distribution service.
(14) “True-up adjustment” means a formulaic adjustment to the fixed recovery charges as they appear on customer bills that is necessary to correct for any overcollection or
undercollection of the fixed recovery charges authorized by a financing order and to otherwise ensure the timely and complete payment and recovery of recovery costs over the authorized repayment term.
SEC. 14.
Section 3280 of the Public Utilities Code is amended to read:3280.
For purposes of this part, all of the following definitions apply:(a) “Account” means the Continuation Account created pursuant to Section 3298. This subdivision shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299.
(b) “Account assets” means the sum of all moneys and invested assets held in the account, which shall include, without limitation, any loans or other investments made by the state to the account, all interest or other income from the investment of money held in the account, any other funds specifically designated for the account by applicable law, the proceeds of any special charge or continuation of existing charge allocated to and
deposited into the account, reinsurance, and the proceeds of any bonds issued for the benefit of the account. This subdivision shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299. Pursuant to Section 3298, account assets are separate and distinct from, and are not part of, Wildfire Fund assets.
(c) “Administrator” means the Wildfire Fund Administrator appointed pursuant to Section 8899.72 of the Government Code.
(d) “Annual contribution” means either of the following:
(1) For purposes of Chapter 2 (commencing with Section 3281) and Chapter 3 (commencing with Section 3291), 10 installments totaling either of the following:
(A) For an electrical corporation that qualifies as a large electrical corporation at the end of the prior calendar year, an amount equal to three hundred million dollars ($300,000,000) multiplied by the Wildfire Fund allocation metric.
(B) For an electrical corporation that qualifies as a regional electrical corporation at the end of the prior calendar year, an amount equal to twenty-five dollars ($25) multiplied by the number of customer accounts serviced by the electrical corporation within the state at the end of that calendar year.
(2) For purposes of Chapter 4 (commencing with Section 3298) and Chapter 5 (commencing with Section 3299), for a large electrical corporation, the amount determined pursuant to Section 3299.3. This paragraph shall become operative upon all large electrical corporations electing to
participate in the account pursuant to Section 3299.
(e) “Bonds” means bonds, notes, or other evidences of indebtedness issued solely for purposes of supporting the account and other related expenses incurred by the administrator pursuant to this part, or for reimbursing expenditures from the fund or account for those purposes, establishing or maintaining reserves in connection with the bonds, costs of issuance of bonds or incidental to their payment or security, capitalized interest, or renewing or refunding any bonds.
(e)
(f) “Council” means the California Catastrophe Response Council created pursuant to Section 8899.70 of the Government Code.
(f)
(g) (1) (A) For purposes of Chapter 2 (commencing with Section 3281) and Chapter 3 (commencing with Section 3291), “covered wildfire” has the same meaning as set forth in Section 1701.8. This subparagraph shall become inoperative upon all large electrical corporations electing to participate in the account pursuant to Section 3299.
(B) For purposes of Chapter 2 (commencing with Section 3281) and Chapter 3 (commencing with Section
3291), “covered wildfire” means a wildfire ignited before the effective date of this subparagraph and that meets the requirements of subparagraph (A) or (B) of paragraph (1) of subdivision (a) of Section 1701.8. This subparagraph shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299.
(2) For purposes of Chapter 4 (commencing with Section 3298) and Chapter 5 (commencing with Section 3299), “covered wildfire” means a wildfire ignited on or after the effective date of this paragraph and that meets the requirements of subparagraph (A) or (B) of paragraph (1) of subdivision (a) of Section 1701.8. This paragraph shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299.
(g)
(h) “Electrical corporation” has the same meaning as set forth in Section 218.
(h)
(i) “Eligible claims” means claims for third-party damages against an electrical corporation resulting from covered wildfires exceeding the greater of (1) one billion dollars ($1,000,000,000) in the aggregate in any year, or (2) the amount of the insurance coverage required to be in place for the electrical corporation pursuant to Section 3293 or 3299.4, as appropriate, measured by the amount of that excess.
(i)
(j) “Fund” means the Wildfire Fund created pursuant to Section 3284.
(j)
(k) “High fire-threat district” means areas identified as tier 2 (elevated) or tier 3 (extreme) fire risk on the fire-threat map maintained by the commission.
(k)
(l) “Initial contribution” means either of the following:
(1) For a large electrical corporation, an amount equal to seven billion five hundred million dollars ($7,500,000,000) multiplied by the Wildfire Fund allocation metric.
(2) For a regional electrical corporation, an amount equal to six hundred twenty-five dollars ($625) multiplied by the number of customer accounts serviced by the electrical corporation within the state as of July 12, 2019.
(l)
(m) “Insolvency proceeding” means a bankruptcy, insolvency, liquidation,
reorganization, or similar proceeding brought pursuant to Title 11 of the United States Code.
(m)
(n) “Large electrical corporation” means an electrical corporation with 250,000 or more customer accounts within the state.
(n)
(o) “Participating electrical corporation” means an electrical corporation that satisfies the conditions to
participate in the fund pursuant to Section 3291 or 3292, as applicable.
(o)
(p) “Regional electrical corporation” means an electrical corporation with less than 250,000 customer accounts within the state.
(p)
(q) “Wildfire Fund allocation metric” means, for each large electrical corporation, the arithmetic average of (1) the land area of
the electrical corporation’s territory, measured in square miles, in the high fire-threat districts as a proportion of all large electrical corporations’ territory in the high fire-threat districts and (2) the electrical corporation’s line miles of transmission and distribution lines in the high fire-threat districts as a proportion of all large electrical corporations’ line miles of transmission and distribution lines in the high fire-threat districts. The large electrical corporations’ averages shall then be adjusted to account for risk mitigation efforts. This adjustment shall reduce the allocation to electrical corporations that have invested historically in mitigation efforts and those allocations shall be reallocated to the other electrical corporations based on their proportionate share resulting from the initial calculation above. The Wildfire Fund allocation metric shall be determined by the Director of Finance no later than July 17, 2019. It is the expectation of the Legislature that the Wildfire
Fund allocation metric is 64.2 percent for Pacific Gas and Electric Company, 31.5 percent for Southern California Edison Company, and 4.3 percent for San Diego Gas and Electric Company. If a new electrical corporation that is a large electrical corporation is admitted to the Wildfire Fund, the administrator shall promptly determine and publish a revised Wildfire Fund allocation metric based on the factors set forth in this subdivision.
(q)
(r) “Wildfire Fund assets” means the sum of all moneys and invested assets held in the fund, not including account assets,
which shall include, without limitation, any loans or other investments made by the state to the fund, all interest or other income from the investment of money held in the fund, any other funds specifically designated for the fund by applicable law, the proceeds of any special charge or continuation of existing charge allocated to and deposited into the fund, reinsurance, and the proceeds of any bonds issued for the benefit of the fund.
SEC. 15.
Section 3283 of the Public Utilities Code is amended to read:3283.
(a) The administrator shall prepare and submit to the council an annual report on the operations, financial condition, and activities of the fund and the account that includes, but is not limited to, all of the following:(1) The Wildfire Fund assets and the account assets.
(2) Projections for the durability of the fund and the account.
(3) Information on claims received and paid.
(4) Summary of actions of the council or the administrator.
(5) A plan for winding up the fund or the account if projections
demonstrate that the Wildfire Fund assets or the account assets
assets, as applicable, will be exhausted within the next three years.
(b) (1) Notwithstanding Section 10231.5 of the Government Code, upon approval of the council, the report shall be submitted no later than August 15 of each year to the appropriate policy committees of the Legislature.
(2) The report required by paragraph (1) shall be submitted in accordance with Section 9795 of the Government Code.
SEC. 16.
Section 3292 of the Public Utilities Code is amended to read:3292.
(a) If, no later than July 27, 2019, each large electrical corporation not subject to an insolvency proceeding on July 12, 2019, notifies the commission of its commitment to provide the initial contribution and the annual contributions, and subsequently provides its initial contribution as set forth in paragraph (3) of subdivision (b), the fund shall be established to pay eligible claims as set forth in subdivision (f) and obtain reimbursement from electrical corporations as set forth in subdivision (h).(b) Except as provided in subdivision (d), to participate in the fund established pursuant to subdivision (a), an electrical corporation shall satisfy the following conditions by no later than June 30, 2020:
(1) The electrical corporation is not, and has not been since July 12, 2019, the subject of an insolvency proceeding or on criminal probation unless the electrical corporation meets the following conditions:
(A) The electrical corporation’s insolvency proceeding has been resolved pursuant to a plan or similar document not subject to a stay.
(B) The bankruptcy court or a court of competent jurisdiction, in the insolvency proceeding, has determined that the resolution of the insolvency proceeding provides funding or establishes reserves for, provides for assumption of, or otherwise provides for satisfying any prepetition wildfire claims asserted against the electrical corporation in the insolvency proceeding in the amounts agreed upon in any pre-insolvency proceeding settlement agreements or any post-insolvency settlement agreements, authorized by the court through an
estimation process or otherwise allowed by the court.
(C) The commission has approved the reorganization plan and other documents resolving the insolvency proceeding, including the electrical corporation’s resulting governance structure as being acceptable in light of the electrical corporation’s safety history, criminal probation, recent financial condition, and other factors deemed relevant by the commission.
(D) The commission has determined that the reorganization plan and other documents resolving the insolvency proceeding are (i) consistent with the state’s climate goals as required pursuant to the California Renewables Portfolio Standard Program and related procurement requirements of the state and (ii) neutral, on average, to the ratepayers of the electrical corporation.
(E) The commission has determined that
the reorganization plan and other documents resolving the insolvency proceeding recognize the contributions of ratepayers, if any, and compensate them accordingly through mechanisms approved by the commission, which may include sharing of value appreciation.
(2) For a regional electrical corporation, it has voluntarily established a charge required by the commission pursuant to Section 3289. This charge shall be included on monthly bills for customers. Collections on that charge shall be remitted, on a monthly basis, to the administrator for deposit into the fund.
(3) Except as provided in subdivision (e), the electrical corporation has provided its initial contribution to the fund no later than September 10, 2019. Initial contributions shall not be recovered from the ratepayers of an electrical corporation, except Golden State Energy.
(c) Each participating electrical corporation shall make its annual contribution by January 1 of each calendar year, including, without limitation, any annual contributions for calendar years in which the electrical corporation, or another electrical corporation to which the electrical corporation is the successor, was not a participating electrical corporation. Annual contributions shall not be recovered from the ratepayers of an electrical corporation, except Golden State Energy.
(d) (1) The administrator may, and in the case of Golden State Energy shall, authorize an electrical corporation that is formed after July 12, 2019, to participate in the fund if the administrator determines that the electrical corporation meets the requirements of this section. Authorization of an electrical corporation that is formed after July 12, 2019, shall be effective as of a date
determined by the administrator and shall apply to covered wildfires after the date of authorization.
(2) If Golden State Energy is the successor to Pacific Gas and Electric Company and Pacific Gas and Electric Company made its initial contribution and, if applicable, annual contributions to the fund, the administrator shall not require Golden State Energy to commit to making, or make, its own initial contribution, or annual contributions for a period for which Pacific Gas and Electric Company already made its annual contributions, in order to participate in the fund and the administrator shall authorize Golden State Energy to participate in the fund if Golden State Energy, within 15 days of closing of the acquisition of Pacific Gas and Electric Company, notifies the commission of its commitment to make annual contributions to the fund.
(e) An electrical corporation that is the
subject of an insolvency proceeding on July 12, 2019, that wishes to participate in the fund shall (1) no later than July 27, 2019, provide written notification to the commission of its election to participate in the fund, and (2) no later than September 10, 2019, obtain approval from the bankruptcy court or a court of competent jurisdiction of its determination to pay, and approval of its payment of, the initial contribution and, as they become due, annual contributions to the fund, provided that the contributions shall not be due to the fund until the date the electrical corporation exits the insolvency proceeding. The electrical corporation shall not be entitled to seek payments from the fund pursuant to subdivision (f) until it has funded its initial contribution and has met the other conditions provided in subdivision (b). Participation of an electrical corporation that is the subject of an insolvency proceeding that satisfies the requirements of this subdivision shall be effective as of July 12, 2019,
and shall apply to covered wildfires, provided that the fund shall not pay more than 40 percent of the allowed amount of a claim arising between July 12, 2019, and the date the electrical corporation exits bankruptcy, with the balance of those claims being addressed through the insolvency proceeding.
(f) (1) An electrical corporation meeting the applicable requirements of subdivision (b) may seek payment from the fund to satisfy settled or finally adjudicated eligible claims. Only eligible claims shall be made against or paid by the fund. In accordance with the procedures established by the administrator, the administrator shall review and approve any settlement of an eligible claim as being in the reasonable business judgment of the electrical corporation before releasing funds to the electrical corporation for payment. Settlements of subrogation claims that are less than or equal to 40 percent of total asserted claim
value as determined by the administrator shall be paid unless the administrator finds that the exceptional facts and circumstances surrounding the underlying claim do not justify the electrical corporation’s exercise of such business judgment. To the extent approved by the administrator, a settlement shall not be subject to further review by the commission.
(2) The administrator shall approve a settlement of an eligible claim that is a subrogation claim if the settlement exceeds 40 percent of the total asserted claim value, as determined by the administrator, and includes a full release of the balance of the asserted claim so long as the administrator finds that the electrical corporation exercised its reasonable business judgment in determining to settle for a higher percentage or on different terms based on a determination that the specific facts and circumstances surrounding the underlying claim justify a higher settlement percentage or
different terms. A subrogation claim that is finally adjudicated shall be paid in the full judgment amount.
(g) Except for Golden State Energy, all initial and annual contributions shall be excluded from the measurement of the authorized capital structure.
(h) (1) Except as provided in paragraph (2), within six months after the commission adopts a decision in an application filed pursuant to Section 1701.8, the electrical corporation shall reimburse the fund for the full amount of costs and expenses the commission determined were disallowed pursuant to Section 1701.8.
(2) (A) The obligation of an electrical corporation to reimburse the fund shall be the lesser amount of subparagraph (B) or (C).
(B) The costs
and expenses determined not to be just and reasonable pursuant to Section 1701.8.
(C) (i) (I) The amount determined pursuant to sub-subclause (ia) minus the amount determined pursuant to sub-subclause (ib).
(ia) (IA)(Ia) Except as specified in sub-sub-subclause (IB),
(Ib) for each electrical corporation, 20 percent of the electrical corporation’s total transmission and distribution equity rate base, including, but not limited to, its Federal Energy Regulatory Commission (FERC) assets, as determined by the administrator for the calendar year in which the disallowance occurred.
(IB)
(Ib) For Golden State Energy’s first twelve 12 months of participation in the fund, an amount equal to 20 percent of Pacific Gas
and Electric Company’s total transmission and distribution equity rate base, including, but not limited to, its Federal Energy Regulatory Commission assets, at the time of the closing of the acquisition of Pacific Gas and Electric Company, as determined by the commission. For Golden State Energy’s subsequent years of participation in the fund, an amount determined by the commission that is equivalent to the amount specified in subclause (I) for electrical corporations with an equity rate base.
(ib) The sum of the amounts actually reimbursed to the fund for costs and expenses that were determined not to be just and reasonable pursuant to Section 1701.8 during the measurement period, added to the amount of any reimbursements to the fund owed by the electrical corporation for costs and expenses disallowed during the measurement period that have not yet been paid.
(II) For purposes of
this clause, “measurement period” means the period of three consecutive calendar years ending on December 31 of the year in which the calculation is being performed.
(III) This clause shall become inoperative upon all large electrical corporations electing to participate in the account pursuant to Section 3299.
(ii) (I) The amount determined pursuant to sub-subclause (ia) minus the amount determined pursuant to sub-subclause (ib).
(ia) Twenty percent of the electrical corporation’s total transmission and distribution equity base, including, but not limited to, its Federal Energy Regulatory Commission (FERC) assets, as determined by the administrator for the calendar year in which the ignition of the covered wildfire occurred.
(ib) The sum of the amounts actually reimbursed to the fund for measurement costs that were determined not to be just and reasonable pursuant to Section 1701.8 added to the amount of any reimbursements to the fund owed by the electrical corporation for measurement costs disallowed that have not yet been paid.
(II) For purposes of this clause, “measurement costs” means costs and expenses that arose out of any covered wildfire ignited within three years of the ignition of the wildfire that is the subject to the application and any measurement costs as defined in subparagraph (C) of paragraph (2) of subdivision (b) of Section 3299.10.
(III) This clause shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299.
(D) The administrator shall
publish calculations of the amounts determined pursuant to subparagraphs (B) and (C) on or before January 1 of each calendar year for each electrical corporation.
(E) Except as provided in paragraph (3), the electrical corporation shall not be required to reimburse the fund for any additional amounts in any three-calendar-year period.
(F) The limitation set forth in this section shall apply only so long as the fund has not been terminated pursuant to subdivision (i).
(3) Paragraph (2) does not apply under either of the following circumstances:
(A) If the administrator determines that the electrical corporation’s actions or inactions that resulted in the covered wildfire constituted conscious or willful disregard of the rights and safety of others.
(B) If the electrical corporation failed to maintain a valid safety certification on the date of the ignition.
(i) (1) The administrator shall, to the extent practicable, manage the fund to prioritize the use of electrical corporation contributions before the use of ratepayer contributions.
(2) Notwithstanding paragraph (1), bonds issued pursuant to paragraph (2) of subdivision (a) of Section 80540 of the Water Code may, at the discretion of the administrator, be secured, and costs related to such issuance paid, solely by ratepayer contributions. Moneys and invested assets in the fund are separate and distinct from account assets and shall be allocated solely for purposes of this chapter.
(2)
(3) The fund shall terminate when the administrator determines that the fund resources are exhausted, taking into account the amount of any unpaid liabilities including necessary reserves, any remaining unpaid annual contributions to the fund
from participating electrical corporations, and the charges authorized pursuant to Section 3289.
3289, and all contributions and reimbursements to the fund pursuant to subdivision (h) that are made after the operative date of this subdivision. Notwithstanding the foregoing, the fund shall not be terminated while bonds issued pursuant to paragraph (1) of subdivision (a) of Section 80540 of the Water Code remain outstanding unless an amount sufficient, as determined by the department issuer of such bonds, to pay remaining debt service on such bonds has been irrevocably set aside for that purpose. Upon the determination of the administrator that the fund shall be terminated, the administrator shall pay all remaining eligible claims and fund expenses, and liquidate any remaining assets. The remaining funds Wildfire Fund assets shall be transferred to the General Fund. It is the intent of the Legislature that any funds transferred to the General Fund pursuant to this paragraph shall be appropriated to support wildfire mitigation.
account.
Termination of the fund pursuant to this paragraph does not terminate the account within the fund, which shall continue until terminated pursuant to paragraph (2) of subdivision (d) of Section 3298.
(j) Notwithstanding subdivision (f), a regional electrical corporation’s access to the fund to pay eligible claims shall be limited to three times the sum of the regional electrical corporation’s initial contribution and any funded annual contributions per covered wildfire.
(k) (1) Each electrical corporation shall, upon determining that all of its claims, if any, for payment from the fund for a covered wildfire pursuant to subdivision (f) have been fully satisfied and that the large electrical corporation does not anticipate any further claims from a covered wildfire, shall notify the administrator that its claims for payment from the fund for a
covered wildfire are fully satisfied.
(2) Upon receipt of all notifications pursuant to paragraph (1), the administrator shall determine whether there is any outstanding obligation on the fund to provide a payment pursuant to subdivision (f) to a large electrical corporation for a covered wildfire or whether any large electrical corporation is likely to submit any additional claims from a covered wildfire. If the administrator reasonably determines that there are no outstanding obligations on the fund to provide payment for a covered wildfire and that no large electrical corporation is likely to submit any additional claims from a covered wildfire, the administrator shall transfer any remaining Wildfire Fund assets, including all contributions and reimbursements to the fund pursuant to subdivision (h) that are made after the operative date of
this subdivision, into the account. begin the process of evaluating whether to terminate the fund in accordance with paragraph (3) of subdivision (i).
(3) This subdivision shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299.
SEC. 17.
Section 3298 of the Public Utilities Code is amended to read:3298.
(a) There is hereby created the Continuation Account in the Wildfire Fund, which is hereby continued in existence, which is administered by the administrator. Moneys and invested assets in the account are separate and distinct from any moneys in the fund and shall be allocated solely for purposes of Chapter 5 (commencing with Section 3299).(b) All of the following revenues Subject to the prior application of the following amounts in accordance with Section 80550 of the Water Code, the following amounts shall be deposited into the account:
(1) The annual contribution and any additional contribution from a large electrical corporation pursuant to Section 3299.3. 3299.3, to the extent not transferred to the department pursuant to Section 3299.3.
(2) Revenues generated from the ratepayers of each large electrical corporation through a nonbypassable charge extended by the commission pursuant to Section 3299.2.
(3) Proceeds of bonds allocated to the account as provided in Section 80540 of the Water Code.
(4) Any amounts
transferred to the account from the fund pursuant to paragraph (3) of subdivision (i) of Section 3292.
(c) Notwithstanding Section 13340 of the Government Code, the moneys in the account are continuously appropriated, without regard to fiscal years, to the administrator for purposes of Chapter 5 (commencing with Section 3299).
(d) (1) To the extent practicable, the administrator shall manage the account to prioritize the use of contributions from large electrical corporations before the use of contributions from ratepayers.
(2) Notwithstanding paragraph (1), bonds issued pursuant to paragraph (2) of subdivision (b) of Section 80540 of the Water Code may, at the discretion of the
administrator, be secured, and costs related to such issuance paid, by contributions from ratepayers pursuant to Section 3299.2, and any proceeds thereof, that are received by the department pursuant to Section 80524 of the Water Code.
(2)
(3) The account shall terminate when the administrator determines that the resources are exhausted, taking into account the amount of any unpaid liability, including necessary reserves, any unpaid annual contributions and additional contributions to the account from large electrical corporations, and the
nonbypassable charge authorized pursuant to Section 3299.2. Notwithstanding the foregoing, the account shall not be terminated while bonds issued pursuant to paragraph (2) of subdivision (b) of Section 80540 of the Water Code or subdivision (h) of Section 3298.1 remain outstanding unless an amount sufficient, as determined by, respectively, the department or the administrator, as applicable, to pay remaining debt service on such bonds has been irrevocably set aside for such purpose. Upon the determination of the administrator that the account shall be terminated, the administrator shall pay all remaining eligible claims and account expenses, and liquidate any remaining assets. The remaining funds shall be
transferred to the General Fund. It is the intent of the Legislature that any funds transferred to the General Fund pursuant to this paragraph shall be appropriated to support wildfire mitigation.
SEC. 18.
Section 3298.1 of the Public Utilities Code is amended to read:3298.1.
The administrator shall carry out the duties of this part and may do all of the following, subject to the oversight of the council:(a) Retain, employ, or contract with officers, experts, employees, accountants, actuaries, financial professionals, and other executives, advisers, consultants, attorneys, and professionals as may be necessary in the administrator’s judgment for the efficient operation and administration of the account.
(b) Enter into contracts and other obligations relating to the operation, management, and administration of the account.
(c) Invest the moneys in the account in those securities eligible under Section 16430 of the Government
Code.
(d) Review and approve claims and settlements, and provide funds to large electrical corporations for the purposes of paying eligible claims.
(e) Buy insurance or take other actions to maximize the claims-paying resources of the account.
(f) Pay costs, expenses, and other obligations of the account from account assets. assets, or from Wildfire Fund assets if there are reasonable and necessary activities associated with the operation, management, and administration of the account before capitalization of the account. No more than 0.1 percent of the account assets may be used for operation, management, and administrative support costs.
(g) Take any actions necessary to collect any amounts owing to the account from large electrical corporations.
(h) (1) If the administrator provides the notification pursuant to subdivision (b) of Section 3299.1, incur indebtedness and issue bonds as evidence thereof solely for purposes of supporting the account and other related expenses incurred by the administrator pursuant to this part, provided that bonds authorized under this paragraph shall be payable solely from annual contributions and additional contributions received pursuant to Section 3299.3, and shall not be issued in an amount the debt service on which, to the extent payable from the account from the annual contributions and additional contribution pursuant to Section 3299.3, is estimated by the administrator to
exceed the amounts estimated to be available in the account for their payment, after accounting for the debt service and any related cost for bonds issued and outstanding, if any, by the department pursuant to paragraph (2) of subdivision (a) of Section 80540 of the Water Code that are secured by annual contributions and additional contributions pursuant to Section 3299.3.
(2) The administrator may issue refunding bonds pursuant to paragraph (1) for any of the following purposes:
(A) Refunding bonds issued to reduce the remaining aggregate debt service payable from the account or to obtain a lower interest rate.
(B) Refunding bonds issued bearing interest at fixed rates to refund bonds issued bearing interest
at variable rates.
(C) Refunding bonds if any nationally recognized rating agency reduces or withdraws, or proposes to reduce or withdraw, the rating assigned to securities that are secured by bond insurance policies, credit or liquidity facilities issued by the provider of a bond insurance policy, or a credit or liquidity facility securing the bonds being refunded.
(3) Before the issuance of bonds authorized by paragraph (1) in a public offering, the administrator, in consultation with the Treasurer, shall establish a mechanism to ensure such bonds are repaid on a timely basis from pledged revenues.
(4) (A) Bonds may be issued by the administrator, or upon authorization by written determination of the administrator, in consultation with the Treasurer and the department. The bonds shall be sold at the prices and in the manner, and on the terms and conditions, as shall be specified in that determination, and the determination may contain or authorize any other provision, condition, or limitation not inconsistent with this part and those provisions as may be deemed reasonable and proper for the security of the bondholders. Bonds may mature at the time or times, and bear interest at the rate or rates, which may be fixed or variable and be determined by reference to an index or such other method, that are specified in the determination. Neither the person executing the determination to issue bonds nor any person executing bonds shall be personally liable therefor or be subject to any personal liability or accountability by reason of the issuance of the bonds.
(B) In the discretion of the administrator, any bonds may be secured by a trust agreement by and between the administrator and a corporate trustee, which may be any trust company or bank having trust powers within or outside the state, or the Treasurer. Notwithstanding any other law, the Treasurer shall not be deemed to have a conflict of interest by reason of acting as the trustee. The administrator may enter into such contracts or arrangements as it shall deem to be necessary or appropriate for the issuance and further security of the bonds.
(C) Bonds shall be legal investments for all trust funds, the funds of all insurance companies, savings and commercial banks, trust companies, executors, administrators, trustees, and other fiduciaries, for state school funds, pension funds, and for any funds that may be invested in county, school, or municipal bonds.
(D) Notwithstanding that bonds may be payable from a special fund, the bonds shall be deemed to be negotiable instruments for all purposes.
(E) Any bonds, and the transfer of and income derived from those bonds, shall at all times be free from taxation of every kind by the state and by the political subdivisions of the state.
(F) Bonds shall not be deemed to constitute a debt or liability of the state or of any political subdivision thereof, other than the administrator, or a pledge of the faith and credit of the state or of any such political subdivision, but shall be payable solely from the funds herein provided for. All bonds shall contain a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of or interest on this
bond.” The issuance of bonds shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment.
(G) (i) The administrator may pledge or assign any revenues under any obligation entered into, and rights to receive the same, and moneys on deposit into the account, in each case, received from annual contributions and additional contributions pursuant to Section 3299.3, and income or revenue derived from the investment thereof, as security for the administrator’s obligations pursuant to this part.
(ii) It is the intent of the Legislature that any pledge of moneys, revenues, or property made by the administrator shall be valid and binding from the time when the pledge is made; that the moneys, revenues, or property so
pledged and thereafter collected from large electrical corporations, or paid directly or indirectly to or for the account of the administrator, is hereby made, and shall immediately be, subject to the lien of that pledge without any physical delivery thereof or further act; that the lien of any such pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the administrator irrespective of whether those parties have notice thereof, and that no resolution or instrument by which the pledge or lien created pursuant to this subdivision is expressed, confirmed, or approved need be filed or recorded in order to perfect the pledge or lien. These provisions shall in all respects govern the creation, perfection, priority, and enforcement of any lien created by or under this part.
(h)
(i) Undertake other activities related to the operation, management, and administration of the account, as approved by the council.
SEC. 19.
Section 3299.3 of the Public Utilities Code is amended to read:3299.3.
(a) (1) If the commission imposes a nonbypassable charge pursuant to Section 3299.2, each large electrical corporation shall provide to the administrator for deposit into the(2) The aggregate total of the annual contributions from the large electrical corporations for each year shall be three hundred million dollars ($300,000,000) and shall be allocated as follows:
(A) 47.85 percent for Pacific Gas and Electric Company.
(B) 47.85 percent for Southern California Edison Company.
(C) 4.30 percent for San Diego Gas and Electric Company.
(b) (1) In addition to subdivision (a), if the administrator determines that additional contributions from large electrical corporations are needed to enable the account to fund the timely payment of eligible claims due to the likelihood of exhaustion of revenues in the account, including the proceeds to bonds issued pursuant to Section 80540 of the Water Code, the administrator shall notify each large electrical corporation that additional contributions, with an aggregate total of three billion nine hundred million dollars ($3,900,000,000), is required. The proportionate share of those additional contributions shall be allocated to large electrical corporations as described in paragraph (2) of subdivision (a) and each large electrical corporation shall pay its proportionate share of the additional contributions to the administrator
administrator, provided, if bonds are issued pursuant to paragraph (2) of subdivision (a) of Section 80540 of the Water Code, the administrator shall, before any such deposit, transfer to the department within 45 days of receipt (A) the amount of such contributions, if any, pledged for payment of such bonds under the related bond documents and (B) costs of the department authorized under Section 80544.5 of the Water code, in each case, payable in the succeeding year as projected by the department, in equal installments over a five-year period. Each large electrical corporation shall pay its proportionate share of the additional contributions within 120 days of the administrator notifying the large electrical corporation and on the anniversary of its first installment payment each year thereafter.
(2) If the administrator winds up and terminates the account before the final installment payment is paid
pursuant to paragraph (1), the large electrical corporation shall provide one-half of the remaining unpaid installment payments pursuant to paragraph (1) as rate credits to its ratepayers.
(c) Contributions made pursuant to this section shall not be recovered from the ratepayers of a large electrical corporation and shall be excluded from the measurement of its authorized capital structure.
(d) If a large electrical corporation is required to reimburse the account in accordance with subdivision (b) of Section 3299.10, the large electrical corporation may reduce the amount required to be reimbursed by the amount of contributions it has paid pursuant to this section for which the large electrical corporation has not claimed a reduction pursuant to this subdivision.
SEC. 20.
Chapter 7 (commencing with Section 3299.200) is added to Part 6 of Division 1 of the Public Utilities Code, to read:CHAPTER 7. Wildfire Recovery
Article 1. Definitions
3299.200.
For purposes of this chapter, all of the following definitions apply:(a) “Activating wildfire” means a wildfire for which an eligible entity activates the fast-pay program pursuant to subdivision (f) of Section 3299.210.
(b) “Applicable wildfire” means a wildfire ignited on or after the effective date of this chapter alleged to have been ignited by electrical infrastructure and that is alleged to have been caused or exacerbated by an eligible entity.
(c) “Available insurance” means the greater of either the actual insurance proceeds that the plaintiff has received for their property or the minimum amount that the plaintiff is
entitled to under their insurance policy if they do not rebuild.
(d) “Bystander claim” means a claim for which a plaintiff proves that they are (1) closely related to a person who experienced physical injury or death, (2) were physically present at the scene of the injury-producing event at the time it occurred and aware that it was causing injury to the victim, and (3) suffered emotional distress as a result, beyond that which would occur in a disinterested witness.
(e) “Diminution in value” means the difference between the fair market value of a structure, personal property, or vegetation, that is the subject of a damages claim immediately before the applicable wildfire and the fair market value of that property immediately after the applicable wildfire.
(f) “Electrical cooperative” has the same meaning as defined
in Section 2776.
(g) “Electric utility” means an electrical corporation, local publicly owned electric utility, or electrical cooperative.
(h) “Eligible entity” means an electric utility, or a public agency, that has a wildfire mitigation plan approved by the Office of Energy Infrastructure Safety pursuant to Section 8386.
(i) “Fast-pay program” means the California Wildfire Relief Fast-Pay Program created in Section 3299.210.
(j) “Fast-pay administrator” means the administrator appointed to administer the fast-pay program pursuant to Section 3299.210.
(k) “Individual claimant” or “individual plaintiff” means a person or entity, other than a subrogated insurer or public agency, who seeks
damages resulting from an applicable wildfire.
(l) “Initial administrative costs” means the expenses described in paragraph (1) of subdivision (e) of Section 3299.210.
(m) “Local publicly owned electric utility” has the same meaning as defined in Section 224.3.
(n) “Ongoing administrative costs” means the costs described in paragraph (2) of subdivision (e) of Section 3299.210.
(o) “Public agency” has the same meaning as defined in Section 13009.2 of the Health and Safety Code.
(p) “Qualified small business” means an independently owned and operated business that is not dominant in its field of operation, the principal office of which is located in California, the officers of which are
domiciled in California, and which, together with affiliates, has 100 or fewer employees and average annual gross receipts of fifteen million dollars ($15,000,000) or less over the previous three years.
(q) “State public agency” means the State of California, or any city, county, city and county, district, state agency, as defined in Section 8557 of the Government Code, or other public subdivision of the state.
(r) “Subrogated insurer” means an insurer that brings a claim against an electrical corporation for recovery of collateral benefits paid under an insurance contract to another as a result of an applicable wildfire.
Article 3. California Wildfire Relief Fast-Pay Program
3299.210.
(a) There is hereby created the California Wildfire Relief Fast-Pay Program.(b) The California Catastrophe Response Council shall appoint a fast-pay administrator to administer the fast-pay program. The fast-pay administrator may, but is not required to, be the administrator of the account.
(c) Within 180 days of the effective date of this section, the fast-pay administrator shall establish and approve procedures for the review, approval, and timely payment of claims by individual claimants for damages as a result of an activating wildfire. The procedures shall include a process for accepting claims, requiring supporting documentation, making settlement offers, and
setting requirements for the release of claims. The fast-pay administrator may, from time to time, revise the procedures, but those revisions shall be consistent with the requirements of this section.
(d) The fast-pay administrator shall carry out the duties of this section, and may do all of the following, subject to the oversight of the council:
(1) Retain, employ, or contract with officers, experts, employees, accountants, actuaries, financial professionals, and other executives, advisers, consultants, attorneys, and professionals as may be necessary in the fast-pay administrator’s judgment for the efficient operation and administration of the fast-pay program.
(2) Enter into contracts and other obligations relating to the operation, management, and administration of the fast-pay program.
(3) Undertake activities related to the operation, management, and administration of the fast-pay program, as approved by the council.
(4) Admit eligible entities to the fast-pay program, consistent with subdivision (f).
(e) (1) All expenses to set up the fast-pay program, including, but not limited to, expenses related to the salary of the fast-pay administrator and establishing and approving the procedures, shall be paid by the account.
(2) If a determination is made under subdivision (f) that a wildfire is an activating wildfire, the eligible entity that determined that the wildfire is an activating wildfire shall be responsible for paying the reasonable administrative costs of administering the fast-pay program with respect to
that wildfire, and those costs shall be paid pursuant to subdivision (k).
(3) This subdivision does not apply to funding for payments made directly to individual claimants.
(f) An eligible entity shall provide notice to the fast-pay administrator that a wildfire is an activating wildfire within 45 days of notifying the commission of an ignition involving their equipment in accordance with commission Decision 14-02-015 (May 15, 2014) Decision Granting in Part and Denying in Part the Petition to Modify Decision 12-01-032, subject to the following conditions:
(1) If the eligible entity is a participating electrical corporation, the participating electrical corporation may elect to designate a wildfire an activating wildfire, in which case paragraph (1) of subdivision (l) shall govern the funding of settlements from the
fast-pay program.
(2) (A) If the eligible entity is not a participating electrical corporation, the eligible entity shall demonstrate a sufficient source of funding to pay ongoing administrative costs and to make settlement offers to claimants under subdivision (g). The fast-pay administrator, within 180 days of the effective date of this section, shall develop criteria for what documentation is needed to satisfy the requirements of this paragraph.
(B) If the eligible entity is not a participating electrical corporation, the eligible entity shall reimburse a percentage of the initial administrative costs for the fast-pay program in an amount to be determined by the fast-pay administrator.
(3) The determination of whether a wildfire constitutes an activating wildfire is inadmissible in court and
not discoverable, other than for the limited issue of determining if the requirement that a claimant first present a claim through the administrative claims process pursuant to subdivision (i) has been satisfied. In place of providing limited discovery for this purpose, the eligible entity defending the suit, at its sole discretion, may stipulate that the presentment requirement has been satisfied, without specifying how it was satisfied.
(g) The fast-pay administrator shall commence accepting claims within 15 days after receipt of notice in subdivision (f). An individual claimant may only submit a claim under this section for damages resulting from an activating wildfire, consistent with all of the following:
(1) The claim shall be submitted within the earlier of either one year from the date a wildfire is determined to be an activating wildfire, or the expiration of the
applicable statute of limitations if a claim asserting entitlement to similar damages was filed in court.
(2) An individual claimant may submit a claim for compensation resulting from damage or destruction to real, personal, or commercial property, or noneconomic losses. A claim for serious bodily injury, wrongful death, or a bystander claim is not subject to the presentment requirement under subdivision (i).
(3) An individual claimant shall provide reasonable documentation and information requested by the fast-pay administrator, subject to guidelines included in the procedures established by the fast-pay administrator. That documentation shall provide sufficient information to determine, as to any claim, the available insurance.
(4) An individual claimant shall not be required to prove, as part of submitting a
claim, that an eligible entity caused the activating wildfire or that an eligible entity is liable for damages resulting from the activating wildfire.
(5) The fast-pay administrator may establish a process to provide claimants with advance payments not to exceed 20 percent of their probable settlement offer from the fast-pay program based on a preliminary review of the documentation submitted, provided that any claimant that chooses to accept an advance payment shall agree that the payment shall offset any subsequent settlement offer they accept from the fast-pay program or a settlement or judgment they otherwise receive against an eligible entity resulting from the activating wildfire.
(6) Within 60 days after an individual claimant submits a claim, including the documentation required pursuant to this subdivision, the fast-pay administrator shall determine whether the
documentation is sufficient and, if not, request that the claimant submit any further documentation the fast-pay administrator may require. The fast-pay administrator may decline to make a settlement offer to a claimant if the fast-pay administrator concludes, after providing the claimant a reasonable opportunity to submit further documentation, the documentation is insufficient.
(7) Within 30 days after the fast-pay administrator determines the documentation for a claim is sufficient, the fast-pay administrator shall make a settlement offer from the fast-pay program to the individual claimant. The settlement offer shall be based on objective criteria that avoid offering inconsistent offers to individual claimants.
(8) Within 30 days of receipt of transmittal of a settlement offer from the fast-pay administrator, an individual claimant shall notify the fast-pay administrator
whether the individual claimant chooses to accept or reject the offer. If the individual claimant fails to timely respond, the individual claimant shall be deemed to have rejected the offer.
(h) The fact that an individual claimant made a claim, including any details of that claim, or the fact that the fast-pay administrator issued a settlement offer, including any details of that offer, is inadmissible in court, arbitration, or any other forum for resolving disputes, and not discoverable, other than for the limited issue of determining that the presentment requirement has been satisfied. In place of providing limited discovery for this purpose, the eligible entity defending the suit, at its sole discretion, may stipulate that the presentment requirement has been satisfied, without specifying how it was satisfied.
(i) If an individual plaintiff brings a claim for damages alleged
to have arisen from an applicable wildfire and to have been caused by an eligible entity, and if those damages could form the basis of a claim under the fast-pay program and neither of the requirements in subparagraph (A) or (B) have been met, the claim shall be stayed following discovery proceedings pursuant to Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure until 45 days after the plaintiff submits a completed claim to the fast-pay administrator under subdivision (g).
(1) The individual plaintiff has already presented the claim through the administrative claims process under the fast-pay program, and the fast-pay administrator denied the claim.
(2) The individual plaintiff has already presented the claim through the administrative claims process under the fast-pay program, the fast-pay administrator issued a settlement offer, and the
individual plaintiff rejected the settlement offer.
(j) Subdivision (i) does not apply to claims for bodily injury, wrongful death, loss of consortium, or a bystander claim.
(k) The statute of limitations for a claim for damages alleged to have arisen from an applicable wildfire and to have been caused by an eligible entity, and which could form the basis of a claim under the fast-pay program, shall be tolled from the date the individual plaintiff submitted the claim to the fast-pay program under subdivision (g), until the earliest of the date the fast-pay administrator declines to make a settlement offer pursuant to paragraph (6) of subdivision (g), the date the settlement offer expires under paragraph (8) of subdivision (g), or the date the individual plaintiff rejects the offer under paragraph (8) of subdivision (g).
(l) Ongoing administrative costs shall be paid as follows:
(1) For a participating electrical corporation, ongoing administrative costs shall be paid as follows:
(A) To the extent the participating electrical corporation has insurance or self-insurance that covers the ongoing administrative costs, the costs shall be paid by that insurance or self-insurance, and shall count as eligible claims for third-party damages against the electrical corporation resulting from covered wildfires for purposes of satisfying the threshold requirements described in subdivision (h) of Section 3280.
(B) If the participating electrical corporation does not have insurance or its insurance has been exhausted, the ongoing administrative costs shall be paid by the account, and shall count as eligible claims, to the extent the
account has not been exhausted or reached the limit under paragraph (2) of subdivision (a) of Section 3299.10.
(C) If the participating electrical corporation cannot pay the ongoing administrative costs under either subparagraph (A) or (B), the costs shall be securitized under paragraph (4) of subdivision (a) of Section 850.
(2) For any other eligible entity that is not a participating electrical corporation, initial administrative costs and ongoing administrative costs shall be paid consistent with paragraph (2) of subdivision (l).
(m) Funding for payments made directly to individual claimants shall be provided as follows:
(1) If the eligible entity that determined the applicable wildfire was an activating wildfire under subdivision (f) is a
participating electrical corporation, settlements pursuant to this article shall count as settlements of eligible claims, and shall be paid from the account, unless the assets of the account are exhausted or the limit under paragraph (2) of subdivision (a) of Section 3299.10 is reached, at which point settlements shall be paid by the large electrical corporation that activated the fast-pay program pursuant to paragraph (4) of subdivision (a) of Section 850.
(2) If the eligible entity that determined the wildfire was an activating wildfire under subdivision (f) is not a participating electrical corporation, the eligible entity shall be solely responsible for directly paying amounts sufficient to satisfy settlement offers pursuant to this article.
Article 4. Prohibition on Sale of Claims, Subrogation Rights, and Advertising
3299.220.
For purposes of this article, all of the following definitions apply:(a) “Contingency fee” means a legal fee in which payment of the fee to the attorney by the client is contingent upon the success of the litigation. In a contingency fee contract or representation situation, the attorney does not earn a fee unless monetary compensation is recovered for the client.
(b) “Private equity group” means an investor or group of investors who primarily engages in the raising or returning of capital and who invests, develops, or disposes of specified assets.
(c) “Wildfire advertising costs” means any costs associated with any
communication, disseminated by television or radio, by any print medium, including, but not limited to, newspapers and billboards, or by means of a mailing directed generally to members of the public and not to a specific person, that solicits employment of legal services provided by a prospective wildfire attorney for a wildfire claim, and is directed to the general public and is paid for by, or on the behalf of, an attorney.
(d) “Wildfire attorney” means any attorney who represents an individual claimant with respect to a wildfire claim.
(e) “Wildfire claim” means any claim against an electric utility for damages, injuries, costs, or harms of any kind resulting from an applicable wildfire, including attorney’s fees or other wildfire expenses or amounts paid as collateral benefits to another, sought as a remedy, recovery or compensation for or in connection with any claim, cause
of action, demand, complaint, or other legal action, whether based in tort, statute, the California or United States constitution, or any other applicable law.
(f) “Wildfire expenses” means any attorney’s fees paid to a wildfire attorney for pursuing a wildfire claim, and any expenses incurred by a wildfire attorney in pursuit of a wildfire claim, whether paid directly by the wildfire attorney or otherwise paid at their direction.
3299.221.
(a) Except as provided in subdivision (c), no individual, business corporation, or other entity shall sell, assign, or transfer, in whole or in part, any wildfire claim, or any right of recovery on a wildfire claim, to a private equity group.(b) Except as provided in subdivision (c), an individual, wildfire attorney, corporation, or other entity shall not sell, assign, or transfer, in whole or in part, any contingency fee or an interest in a contingency fee, or use any portion of any contingency fee as collateral for a loan.
(c) The prohibitions in subdivisions (a) and (b) shall not apply to the following:
(1) Individual claimants who are seeking to transfer claims to family members.
(2) Plaintiffs who have suffered a real or personal property loss and are seeking to transfer these claims to other individuals or entities who held an interest in that property prior to the damage to, or destruction of, the property.
(3) Plaintiffs who are seeking to transfer claims to legal successors in interest.
(4) Plaintiffs who are pursuing claims for bad faith, including breach of contract or breach of the covenant of good faith and fair dealing, under an assignment of rights.
(d) An insurer shall not transfer the right of subrogation to a third-party. This includes, but is not limited to, prohibiting an insurance company, or any legal entity holding a
right of subrogation, from selling or transferring its interest in that right of subrogation to any third-party, except in the following cases:
(1) If the entity holding the right of subrogation is purchased by a third-party, provided that the right of subrogation itself may not be sold or transferred.
(2) If the insurer is a California domestic insurer and its annual property line direct written premiums are less than three hundred million dollars ($300,000,000).
(e) A private equity group shall not pay, directly or indirectly, any wildfire expenses with respect to a wildfire claim.
(f) A private equity group shall not fund wildfire advertising costs with respect to any applicable wildfire that damages or destroys (1) more than 100 structures, or (2)
more than 10,0000 acres of land.
(g) An agreement that is in contravention of this section shall be void and unenforceable.
(h) The Attorney General, or any district attorney, may bring a civil action in the name of the people of the State of California to enforce the prohibition in subdivision (f) and may seek injunctive relief, restitution, disgorgement of profits and civil penalties not to exceed one hundred thousand dollars ($100,000) per violation, plus reasonable attorney’s fees and costs of investigation and litigation.
(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or
application.
SEC. 21.
Section 8385 of the Public Utilities Code is amended to read:8385.
(a) For purposes of this chapter, all of the following definitions apply:(1) “Compensation” has the same meaning as defined in Section 706.
(1)
(2) “Deenergization event” means the proactive interruption of electrical service for the purpose of mitigating or avoiding the risk of causing a wildfire.
(2)
(3) “Electrical cooperative” has the same meaning as defined in Section 2776.
(3)
(4) “Electrical corporation” has the same meaning as defined in Section 218.
(5) “Executive officer” has the same meaning as defined in Section 451.5.
(4)
(6) “Large electrical corporation” has the same meaning as defined in Section 3280.
(5)
(7) “Local publicly owned electric utility” has the same meaning as defined in Section 224.3.
(8) “Long-term incentive compensation” means incentive compensation that is based on the electrical corporation’s long-term performance and is held or deferred for a period of at
least three years.
(6)
(9) “Office” means the Office of Energy Infrastructure Safety, within the Natural Resources Agency.
(10) “Short-term incentive compensation” means any incentive compensation based on the achievement of objective performance metrics other than long-term incentive compensation.
(11) “Total Incentive compensation”
means compensation based on the achievement of objective performance metrics and is a combination of long-term incentive compensation and short-term incentive compensation.
(b) Beginning July 1, 2021, the office shall supervise an electrical corporation’s compliance with the requirements of this chapter pursuant to the Public Utilities Act (Part 1 (commencing with Section 201) of Division 1). This chapter does not affect the commission’s authority or jurisdiction over an electrical corporation, electrical cooperative, or local publicly owned electric utility.
SEC. 22.
Section 8389 of the Public Utilities Code is amended to read:8389.
(a) The Director of the Office of Energy Infrastructure Safety shall issue a certificate to an electrical corporation if the electrical corporation provides documentation of all of the following:(1) The electrical corporation has an approved wildfire mitigation plan pursuant to subdivision (a) of Section 8386.3.
(2) The electrical corporation has agreed to implement the recommendations of its most recent safety culture assessments performed pursuant to Section 8386.2, if applicable.
(3) The electrical corporation has established
a safety committee of its board of directors composed of members with relevant safety experience.
(4) The electrical corporation has established an approved written executive incentive compensation structure approved by the office and structured to promote safety as a priority and to ensure public safety and utility financial stability with performance metrics, including incentive compensation based on meeting performance metrics that are measurable and enforceable, for all executive officers, as defined in Section 451.5. This may include tying 100 percent of incentive compensation to safety performance and denying all incentive compensation in the event the electrical corporation causes a catastrophic wildfire that results in one or more fatalities.
filed with the office at least one year before the year the executive incentive compensation structure would become effective. The office shall approve the executive incentive compensation structure if the requirements of Section 8389.1 are met.
(5) The electrical corporation has established board-of-director-level reporting to the commission and office on safety issues.
(6)(A)The electrical corporation has established a compensation structure for any new or amended contracts, plans, or arrangements, whether written or unwritten, for executive officers, as defined in Section 451.5, that is based on the following principles:
(i)(I)Strict limits on guaranteed cash compensation, with the primary portion of the executive officers’ compensation based on achievement of objective performance metrics.
(II)No guaranteed monetary incentives in the compensation structure.
(ii)It satisfies the compensation principles identified in paragraph (4).
(iii)A long-term structure that provides a significant portion of compensation, which may take the form of grants of the electrical corporation’s stock, based on the electrical corporation’s long-term performance and value. This compensation shall be held or deferred for a period of at least three years.
(iv)Minimization or elimination of indirect or ancillary compensation that is not aligned with shareholder and taxpayer interest in the electrical corporation.
(B)The office shall approve the compensation structure of an electrical corporation if it determines the structure meets the principles set forth in subparagraph (A) and paragraph (4).
(C)
(6) It is the intent of the Legislature, in enacting this paragraph and paragraph (4), that any approved bankruptcy reorganization plan of an electrical corporation should, in regards to compensation for executive officers of the electrical corporation, comply with the requirements of those paragraphs. that paragraph.
(7) The electrical corporation is implementing the mitigation strategies in its approved wildfire mitigation plan. The electrical corporation shall file a notification of implementation of its
wildfire mitigation plan with the office and an information-only submittal with the commission on a quarterly basis that details the implementation of both its approved wildfire mitigation plan and recommendations of the most recent safety culture assessments by the commission and office, and a statement of the recommendations of the board of directors safety committee meetings that occurred during the quarter. The notification and information-only submittal shall also summarize the implementation of the safety committee recommendations from the electrical corporation’s previous notification and submission. If the office has reason to doubt the veracity of the statements contained in the notification or information-only submittal, it shall perform an audit of the issue of concern. The electrical corporation shall provide a copy of the information-only submittal to the office.
(b) (1) A certificate shall be valid for the 12
consecutive months following the issuance of the certificate.
(2) (A) Before the expiration of a certificate, an electrical corporation shall submit to the office a request for a certificate for the following 12 months. The office shall issue a certificate within 90 days of a request if the electrical corporation has provided documentation that it has satisfied the requirements in subdivision (a).
(B) The office may, for good cause, in writing, extend the 90-day period.
(3) All documents submitted pursuant to this section shall be publicly available on the commission’s and the office’s internet websites.
(4) (A) Notwithstanding paragraph (1), a certificate shall remain valid until the office acts on the
electrical corporation’s pending request for a certificate.
(B) The office may extend the expiration date of a certificate if the office or the commission has not yet acted on an element of the certificate request required pursuant to subdivision (a).
SEC. 23.
Section 8389.1 is added to the Public Utilities Code, to read:8389.1.
To qualify for a certificate issued by the office pursuant to Section 8389, an electrical corporation shall have an executive incentive compensation structure that meets the following requirements:(a) It is structured to promote safety as a priority and to ensure public safety with performance metrics, including incentive compensation based on meeting performance metrics that are measurable and enforceable, for all executive officers. This may include tying 100 percent of incentive compensation to safety performance.
(b) It includes a provision denying all short-term incentive compensation to the chief executive officer, chief financial officer, chief operating officer, and any other officer
holding an equivalent senior executive position, for the electrical corporation’s fiscal year in which it causes a catastrophic wildfire that results in 500 or more structures damaged or destroyed and for the subsequent fiscal year. If an electrical corporation’s equipment is being investigated by a governmental entity responsible for determining causation or a court of competent jurisdiction as the possible cause of a catastrophic fire, and the cause has not been determined at the end of the two-year incentive compensation performance period by the governmental entity or court of competent jurisdiction, the electrical corporation shall place the incentive compensation at risk in an interest-bearing account pending the outcome of an investigation into the cause of the catastrophic wildfire.
(c) It includes any new or amended contracts, plans, or arrangements, whether written or unwritten, for executive officers.
(d) It places strict limits on guaranteed cash compensation with the primary portion of the executive officers’ compensation based on the achievement of objective performance metrics.
(e) It provides a significant portion of the compensation as long-term incentive compensation that may take the form of grants of the electrical corporation’s stock based on the electrical corporation’s long-term performance and value. The compensation shall be held or deferred for a period of at least three years.
(f) It does not include any guaranteed monetary incentives in the compensation structure.
(g) It minimizes or eliminates indirect or ancillary compensation that is not aligned with shareholder, ratepayers, and taxpayer interest in the electrical corporation.
(h) It includes within its components minimum safety weightings for each executive officer.
(1) The long-term incentive compensation shall have a minimum weighting of 25 percent.
(2) The total incentive compensation, including both long term and short-term incentive compensation, shall have a minimum weighting of 35 percent.
(i) It includes a written presumption that 35 percent of the total incentive compensation for each executive officer will be denied for the electrical corporation’s fiscal year in which it causes a catastrophic wildfire that results in 500 or more structures damaged or destroyed.
SEC. 24.
Section 80524 of the Water Code is amended to read:80524.
(a) (1) The revenue requirement for each year or, with respect to the first year and last year, the pro rata portion of the year, shall be equal to the average annual amount of collections by the department with respect to charges imposed pursuant to the revenue requirements established by the department under Section 80110 for the period from January 1, 2013, through December 31, 2018. Except as provided in paragraph (2), the revenue requirement shall remain in effect until January 1, 2036.(2) The revenue requirement specified in paragraph (1) shall remain in effect until January 1, 2046, if the Public Utilities Commission imposes a nonbypassable charge pursuant to Section 3299.2 of the Public Utilities Code. This paragraph shall become
operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299 of the Public Utilities Code.
(b) If, pursuant to Section 3289 of the Public Utilities Code, the commission makes a just and reasonable determination with respect to the revenue requirement, then the commission shall enter into an agreement with the department with respect to charges under Section 3289 of the Public Utilities Code with respect to the revenue requirement, and that agreement shall have the force and effect of an irrevocable financing order adopted in accordance with Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, as determined by the commission. The agreement and financing order shall provide for the administration of the revenue requirement, including provisions to the effect that (1) the department shall notify the commission each year of the annual
collections received by the department with respect to the revenue requirement and the amount of any excess or deficiency in collections above or below the revenue requirement and that the commission shall adjust charges in the subsequent year to reflect any such excess or deficiency, and (2) during any revenue requirement period if the department forecasts that the revenue requirement for that period will not be met and that collections will not be sufficient to fund any of the amounts in paragraphs (1) to (5), inclusive, of subdivision (a) of Section 80544, then the department shall notify the commission in writing and the commission shall act within 30 days to increase charges so that the amounts collected during that period are sufficient to meet those obligations. For avoidance of doubt, no such adjustment to charges by the commission shall affect in any respect the commission’s just and reasonable determination with respect to the revenue requirement.
(c) (1) If, pursuant to Section 3299.2 of the Public Utilities Code, the commission makes a just and reasonable determination with respect to the revenue requirement, then the commission shall enter into an agreement with the department with respect to charges under Section 3299.2 of the Public Utilities Code with respect to the revenue requirement, and that agreement shall have the force and effect of an irrevocable financing order adopted in accordance with Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, as determined by the commission. The agreement and financing order shall provide for the administration of the revenue requirement, including provisions to the effect that: (A) the department shall notify the commission each year of the annual collections received by the department with respect to the revenue requirement and the amount of any excess or deficiency in collections above or below the revenue
requirement and that the commission shall adjust charges in the subsequent year to reflect any such excess or deficiency; and (B) during any revenue requirement period, if the department forecasts that the revenue requirement for that period will not be met and that collections will not be sufficient to fund any of the amounts in paragraphs (1) to (4), inclusive, subdivision (a) of Section 80544.5, then the department shall notify the commission in writing and the commission shall act within 30 days to increase charges so that the amounts collected during that period are sufficient to meet those obligations. For avoidance of doubt, no such adjustment to charges by the commission shall affect in any respect the commission’s just and reasonable determination with respect to the revenue requirement.
requirements, and “annual collections,” as used in this paragraph, does not include any electrical corporation contributions.
(2) This subdivision shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299 of the Public Utilities Code.
SEC. 25.
Section 80540 of the Water Code is amended to read:80540.
(a) (1) The department may incur indebtedness and issue bonds as evidence thereof solely for purposes of supporting the Wildfire Fund and other related expenses incurred by the department pursuant to this division, provided that bonds authorized pursuant to this paragraph shall not (A) be issued in an amount the debt service on which, to the extent payable from the fund, is estimated by the department to exceed the amounts estimated to be available in the fund for their payment, and (B) mature after January 1, 2036.(2) If the administrator provides the notification pursuant to subdivision (b) of Section 3299.1 of the Public Utilities Code, the department may incur indebtedness and issue bonds as evidence thereof solely for purposes of
supporting the account and other related expenses incurred by the department pursuant to this division, provided that bonds authorized under this paragraph shall not be issued in an amount the debt service on which, to the extent payable from the account, including the annual contributions and additional contribution pursuant to Section 3299.2 3299.3 of the Public Utilities Code, is estimated by the department to exceed the amounts estimated to be available in the applicable account in the fund for their payment.
payment, after accounting for the debt service and any related cost for bonds issued and outstanding, if any, by the administrator pursuant to subdivision (h) of Section 3298.1 of the Public Utilities Code. This paragraph shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299 of the Public Utilities Code.
(b) (1) The department may authorize the issuance of bonds pursuant to paragraph (1) of subdivision (a), excluding any notes issued in anticipation of the issuance of bonds and retired from the proceeds of those bonds, in an aggregate amount up to ten billion five hundred million dollars ($10,500,000,000).
(2) In addition to paragraph (1), if the administrator provides the notification pursuant to subdivision (b) of Section 3299.1 of the Public
Utilities Code, the department may authorize the issuance of bonds pursuant to paragraph (2) of subdivision (a), excluding any notes issued in anticipation of the issuance of bonds and retired from the proceeds of those bonds, and bonds secured solely by electrical corporation contributions, in an aggregate amount up to nine billion dollars ($9,000,000,000). This paragraph shall become operative upon all large electrical corporations electing to participate in the account pursuant to Section 3299 of the Public Utilities Code.
(c) Refunding bonds for any of the following purposes shall not be included in the calculation of the aggregate amount described in subdivision (b):
(1) Refunding bonds
issued to reduce the remaining aggregate debt service payable from the Wildfire Fund or the Continuation Account, or to obtain a lower interest rate.
(2) Refunding bonds bearing a variable interest rate with bonds issued bearing interest at a fixed rate. rate to refund bonds issued bearing interest at variable rates.
(3) Refunding bonds if any nationally recognized rating agency reduces or withdraws, or proposes to reduce or withdraw, the rating assigned to
securities that are secured by bond insurance policies, credit or liquidity facilities issued by the provider of a bond insurance policy, or a credit or liquidity facility securing the bonds being refunded.
(4) Refunding bonds issued with interest that is not excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code to refund bonds the interest on which is excluded from gross income under Section 103 of the Internal Revenue Code upon a determination of the department that such refunding is necessary or desirable under applicable law, or to comply with contractual obligations related to the bonds to be refunded or obligations of the department to the bondholders thereof.
(d) Before the issuance of bonds in a public offering, the department
department, in consultation with the Treasurer and the administrator, shall establish a mechanism to ensure the bonds are sold at investment grade ratings and repaid on a timely basis from pledged revenues. This mechanism may include, but is not limited to, an agreement between the department and the commission as described in Section 80524.
(e) Notwithstanding any provision of this division to the contrary, the department shall not issue any bonds pursuant to this division until the earlier of either of the following:
(1) The date on which the department shall have legally defeased all of its outstanding power supply revenue bonds issued pursuant to Section 80134 and provided written notice to the commission.
(2) The date on which the department shall have paid in full, at maturity, all of its outstanding power supply revenue bonds issued pursuant to Section 80134 and provided written notice to the commission.
SEC. 26.
Section 80542 of the Water Code is amended to read:80542.
(a) Bonds may be issued by the department, upon authorization by written determination of the director of the department, with the approval of the Director of Finance and the Treasurer, on terms acceptable to and approved by the administrator. The Department of Finance shall notify the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the fiscal committees of each house of the Legislature of its written determination. The bonds shall be sold at the prices and in the manner, and on the terms and conditions, as shall be specified in that determination, and the determination may contain or authorize any other provision, condition, or limitation not inconsistent with this division and those provisions as may be deemed reasonable and proper for the security of the bondholders. Bonds may mature at the time or times, and bear interest at the rate or rates, which may be fixed or variable and be determined by reference to an index or such other method, that are specified in the determination. Neither the person executing the determination to issue bonds nor any person executing bonds shall be personally liable therefor or be subject to any personal liability or accountability by reason of the issuance of the bonds.(b) In the discretion of the department, any bonds may be secured by a trust agreement by and between the department and a corporate trustee, which may be any trust company or bank having trust powers within or outside the state, or the Treasurer. Notwithstanding any other law, the Treasurer shall not be deemed to have a conflict of interest by reason of acting as the trustee. The department may enter into such contracts or arrangements as it shall deem to be necessary or appropriate for the issuance and further security of the
bonds.
(c) Bonds shall be legal investments for all trust funds, the funds of all insurance companies, savings and commercial banks, trust companies, executors, administrators, trustees, and other fiduciaries, for state school funds, pension funds, and for any funds that may be invested in county, school, or municipal bonds.
(d) Notwithstanding that bonds may be payable from a special fund, the bonds shall be deemed to be negotiable instruments for all purposes.
(e) Any bonds, and the transfer of and income derived from those bonds, shall at all times be free from taxation of every kind by the state and by the political subdivisions of the state.
(f) Bonds shall not be deemed to constitute a debt or liability of the state or of any political subdivision
thereof, other than the department, or a pledge of the faith and credit of the state or of any such political subdivision, but shall be payable solely from the funds herein provided for. All bonds shall contain a statement to the following effect: “Neither the faith and credit nor the taxing power of the State of California is pledged to the payment of the principal of or interest on this bond.” The issuance of bonds shall not directly or indirectly or contingently obligate the state or any political subdivision thereof to levy or to pledge any form of taxation whatever therefor or to make any appropriation for their payment.
(g) (1) The department may pledge or assign any revenues revenues, or any electrical corporation contributions transferred to the
department pursuant to Section 3299.3 of the Public Utilities Code, under any obligation entered into, and rights to receive the same, and moneys on deposit in
into the fund fund, including any accounts therein, and income or revenue derived from the investment thereof, as security for the department’s obligations pursuant to this division.
(2) It is the intent of the Legislature that any pledge of moneys, revenues, or property made by the department shall be valid and binding from the time when the pledge is made; that the moneys, revenues, or property so pledged and thereafter collected from retail end use customers, or paid directly or indirectly to or for the account of the department, is hereby made, and shall immediately be, subject to the lien of that pledge without any physical delivery thereof or further act; that the lien of any such pledge shall be valid and
binding against all parties having claims of any kind in tort, contract, or otherwise against the department irrespective of whether those parties have notice thereof, and that no resolution or instrument by which the pledge or lien created pursuant to this subdivision is expressed, confirmed, or approved need be filed or recorded in order to perfect the pledge or lien. These provisions shall in all respects govern the creation, perfection, priority, and enforcement of any lien created by or under this division.
SEC. 27.
Section 80544 of the Water Code is amended to read:80544.
(a) If, pursuant to subdivision (b) of Section 80524, the commission makes a just and reasonable determination with respect to that revenue requirement, the department shall, and in any obligation entered into pursuant to this division may covenant to, at least annually, and more frequently as required, allocate or cause to be allocated moneys collected pursuant to(1) The amounts necessary to pay the principal of, and premium, if any, and
interest on, bonds issued pursuant to paragraph (1) of subdivision (b) of Section 80540 as and when the bonds shall become due.
(2) The amounts necessary to make payments under any contracts, agreements, or obligations entered into by it pursuant hereto, in the amounts and at the times they shall become due.
(3) Reserves in such amount as may be determined by the department from time to time to be necessary or desirable.
(4) Consistent with Section 3288 of the Public Utilities Code, repayment of loans made from the Surplus Money Investment Fund to the Wildfire Fund.
(5) The administrative reasonable and necessary costs of the department incurred
in administering this division. No more than 0.1 percent of the annual revenue requirement collections may be used for administrative costs.
(6) After meeting the purposes in paragraphs (1) to (5), inclusive, the transfer of any remaining revenue requirement amount to the Wildfire Fund.
(b) The commission shall not revise the revenue requirement established pursuant to subdivision (b) of Section 80524 at any time before January 1, 2036. For avoidance of doubt, the revenue requirement established pursuant to that subdivision shall not be imposed and collected until the department has legally defeased or paid at maturity the power supply revenue bonds issued pursuant to Section 80134 and provided written notice thereof to the commission.
SEC. 28.
Section 80544.5 of the Water Code is amended to read:80544.5.
(a) If, pursuant to subdivision (c) of Section 80524, the commission makes a just and reasonable determination with respect to that revenue requirement, the department shall, and in any obligation entered into pursuant to this division may covenant to, at least annually, and more frequently as required, allocate or cause to be allocated moneys collected pursuant to(1) The amounts necessary to pay the
principal of, and premium, if any, and interest on, bonds issued pursuant to paragraph (2) of subdivision (b) of Section 80540 as and when the bonds shall become due.
(2) The amounts necessary to make payments under any contracts, agreements, or obligations entered into by it pursuant hereto, in the amounts and at the times they shall become due.
(3) Reserves in such amount as may be determined by the department from time to time to be necessary or desirable.
(4) The administrative costs of the department incurred in administering this division.
(5) After meeting the purposes in paragraphs (1) to (4), inclusive, the transfer of any remaining revenue requirement amount
amount, or amount transferred to the department pursuant to Section 3299.3 of the Public Utilities Code, to the account.
(b) The commission shall not revise the revenue requirement established pursuant to subdivision (c) of Section 80524 at any time before January 1, 2046. For avoidance of doubt, the revenue requirement established pursuant to subdivision (c) of Section 80524 shall not be imposed and collected until the department has legally defeased or paid at maturity the bonds issued pursuant to paragraph (1) of subdivision (a) of Section 80540 and provided written notice thereof to the commission.
(c) This section shall become inoperative if a large electrical corporation elects not to participate pursuant to Section 3299 of the Public Utilities Code and is repealed on January 1 of the year following the notification by the
commission pursuant to subdivision (c) of Section 3299 of the Public Utilities Code.
SEC. 29.
Section 80550 of the Water Code is amended to read:80550.
(a) There is hereby established in the State Treasury the Department of Water Resources Charge Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated, without regard to fiscal year, to the department and shall be available for the purposes of this division.(b) All revenues payable to the department under this division, including pursuant to subdivision (b) of Section 80524 and proceeds of bonds issued pursuant to Chapter 3 (commencing with Section 80540),
paragraph (1) of subdivision (a) of Section 80540, shall be deposited in into the fund. Notwithstanding any other law, interest accruing on the moneys in the fund fund, excluding moneys held in any accounts established pursuant to subdivision (c), shall be deposited in into the fund and shall be used for purposes of this division. Payments from the fund
fund, excluding moneys held in any accounts established pursuant to subdivision (c), may be made only for the following purposes:
(1) Payment of any bonds
authorized by paragraph (1) of subdivision (a) of Section 80540, or other contractual obligations related to the Wildfire Fund authorized by this division.
(2) The expenses incurred by the department in administering this division.
(3) Consistent with Section 3288 of the Public Utilities Code, repayment of principal of, and interest on, loans made from the Surplus Money Investment Fund to the Wildfire Fund. Repayment of loans made from the Surplus Money Investment Fund shall be made as soon as practicable.
(4) The transfers to the Wildfire Fund.
(c) All revenues payable to the department pursuant to subdivision (c) of Section 80524, amounts transferred to the department pursuant to Section 3299.3 of the Public Utilities Code, if any, and proceeds of bonds issued pursuant to paragraph (2) of subdivision (a) of Section 80540, shall be deposited into an account, including, if applicable, a subaccount, within the fund, such amounts to be held separate and apart from amounts held in the fund pursuant to subdivision (b). Revenues payable to the department pursuant to subdivision (c) of Section 80524 and amounts transferred to the department pursuant to Section 3299.3 of the Public Utilities Code shall be held separate and apart in separate accounts. Notwithstanding any other law, interest accruing on the moneys in such accounts shall be deposited therein and shall be used for purposes of this division. Payments from such accounts may be made only for the following purposes:
(1) Payment of any bonds authorized by paragraph (2) of subdivision (a) of Section 80540 or other contractual obligations related to the account and authorized by this division.
(2) The expenses incurred by the department in administering this division.
(3) The transfers to the account.
(c)
(d) Obligations authorized by this division shall be payable solely from the fund. Neither the full faith and credit nor the taxing power of the state are or may be pledged
for any payment under any obligation authorized by this division.
(d)
(e) While any obligations of the department incurred under this division remain outstanding and not fully performed or discharged, the rights, powers, duties, and existence of the department and the commission shall not be diminished or impaired in any manner that will affect adversely the interests and rights of the holders of or parties to those obligations. The department may include this pledge and undertaking of the state in the department’s obligations.
SEC. 30.
The Legislature finds and declares that Sections 3 and 4 of this act, which add Section 7928.725 to the Government Code and amend Section 11126 of the Government Code, respectively, impose a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the confidential and personally identifying information of wildfire survivors or individual claimants, it is necessary that this act limit the public’s right of access to that information.
SEC. 31.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.SEC. 32.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to address the risks of possible catastrophic wildfires in the fall and winter of 2026 and provide for no delay in the commencement of strategic planning, data sharing, creation of the Fast-Pay Program, and protections against speculative investing and private equity involvement in future
wildfires, it is necessary for this Act to take immediate effect.
This part shall be known as the Youth Housing Bond Act of 2026.
For purposes of this part:
(a)“Acquiring” means obtaining ownership of an existing facility in fee simple for use as a youth center or youth housing.
(b)“Altering” or “renovating” means making modifications to an existing facility which are necessary for cost-effective use as a youth center or youth housing, including restoration, repair, expansion, and all related physical improvements.
(c)“Applicant” means a local agency or nonprofit organization, and any joint venture of local agencies and nonprofit organizations.
(d)“Committee” means the Youth Housing Finance Committee created pursuant to Section 53719.
(e)“Constructing” means the purchase or building of a new facility, including the costs of land acquisition and architectural and engineering fees.
(f)“Department” means the Department of Housing and Community Development.
(g)“Equipment” means tangible personal property having a useful life of more than one year and an acquisition cost of five thousand dollars ($5,000) or more.
(h)“Fund” means the 2026 Youth Housing Bond Fund created pursuant to Section 53702.
(i)“Nonprofit organization” means an institution or organization that is owned and operated by one or more corporations or associations with no part of the net earnings benefiting any private shareholder or individual.
(j)“Programs” means a variety of services and activities provided in a youth center or youth housing, which include, but are not limited to, all of the following:
(1)Recreation.
(2)Health and fitness.
(3)Delinquency prevention.
(4)Counseling, including counseling for substance use and suicide.
(5)Citizenship and leadership development.
(6)Education.
(7)Youth employment.
(k)“Recipient” means a local agency, nonprofit organization, or joint venture that receives an award and executes a contract pursuant to Section 53706.
(l)“Services” means the services provided in youth center or youth housing, including, but not limited to, all of the following:
(1)Food.
(2)Shelter.
(3)Counseling.
(4)Outreach.
(5)Basic health screening, including health screenings for medical and behavioral health.
(6)Referral and linkage to other services offered by public and private agencies.
(7)Long-term planning for reunification with the family or in a suitable home where family reunification is not possible.
(8)Supportive services, including case management, housing retention assistance, and tenancy support services.
(9)Aftercare and follow up services.
(m)“State General Obligation Bond Law” means the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), as it may be amended from time to time.
(n)“Youth center” means a facility that is equipped to meet the needs of youth, including mental and behavioral health needs, housing, education and employment support, and linkage to other services, where youth ages 12 to 25 years of age, inclusive, gather for programs and services.
(o)“Youth housing” means a facility that provides a variety of services to current or former foster youth, homeless minors or youth, or minors or youth at risk of homelessness to assist them with their immediate basic needs and to help reunite them with their parents, if appropriate, or, find a suitable home. “Youth housing” may include, but is not limited to, any of the following:
(1)A transitional housing placement provider licensed pursuant to Section 1559.110.
(2)A transitional living setting, as described in paragraph (4) of subdivision (x) of Section 11400 of the Welfare and Institutions Code.
(3)A Transitional Housing Program-Plus, as defined in subdivision (s) of Section 11400 of the Welfare and Institutions Code, that serves only eligible former foster youth over 18 years of age who have exited from the foster care system on or after their 18th birthday, and that has obtained certification from the applicable county in accordance with subdivision (c) of Section 16522 of the Welfare and Institutions Code.
(4)A transitional housing program as defined in Section 578.3 of Title 24 of the Code of Federal Regulations for homeless youth under 25 years of age.
(a)The 2026 Youth Housing Bond Fund is hereby created within the State Treasury. The proceeds of bonds issued pursuant to this part, except for refunding bonds issued pursuant to Section 53726, shall be deposited in the fund and used to make awards to local agencies, nonprofit organizations, or joint ventures to purchase equipment and acquire, renovate, and construct youth centers or youth housing, consistent with the requirements of this part.
(b)Moneys in the fund shall be available to the department upon appropriation by the Legislature for purposes of making awards to local agencies, nonprofit organizations, or joint ventures, or a combination of those entities, in order to purchase equipment and acquire, renovate, and construct youth centers or youth housing, consistent with this part.
The Legislature finds and declares all of the following:
(a)The intent of this part is to address the ongoing need to develop housing to support current and former foster youth and youth experiencing or at risk of homelessness. Annual homelessness counts consistently find that California has the highest number of homeless youth, with over 68% of the homeless youth being unsheltered. The purpose of this part is to allow community-based nonprofit organizations with experience in providing youth services to directly apply for a designated pot of funding.
(b)Nonprofit organizations provide support to individuals who are homeless or at-risk of homelessness through targeted services. Invested in improving communities, these organizations are experts in identifying the specific housing needs, gaps, and coordinating efforts to support transition-aged youth as they transition to stable housing.
(a)Moneys in the fund, up to a limit of one billion dollars ($1,000,000,000), shall be available for purposes of this part consistent with the following requirements:
(1)One hundred million dollars ($100,000,000) shall be available for youth centers.
(2)Nine hundred million dollars ($900,000,000) shall be available for youth housing.
(3)Any remaining money that has not been awarded under this subdivision within two years of the effective date of this part shall be available for both youth centers and youth housing.
(b)The department may disburse any funds made available to youth centers or youth housing pursuant to this chapter upon execution of awards and contracts pursuant to Section 53706.
(c)The department may use up to 5 percent of the moneys in the fund to pay for the administration of the program consistent with Section 16727 of the Government Code.
(d)Moneys in the fund or other proceeds of the sale of bonds authorized by this part may be used to pay principal of, or redemption premium on, interim debt issued prior to the issuance of bonds authorized by this part.
(a)(1)The department shall make awards to local agencies, nonprofit organizations, or joint ventures, for the purpose of acquiring, renovating, constructing, and purchasing equipment for youth centers or youth housing, consistent with the part.
(2)An applicant that receives an award pursuant to this chapter shall execute a contract with the department that, at a minimum, provides assurances that the youth center or youth housing complies with the requirements of Section 53707, as applicable.
(b)If a local agency, nonprofit organization, or joint venture, is granted an award pursuant to subdivision (a) for youth housing that will provide services for both homeless youth and current or former foster youth, the department shall credit the allocation of bond proceeds awarded to reflect the proportion of funds to be used by the recipient for services for homeless youth and the proportion of funds to be used for services for current or former foster youth.
(a)A recipient that receives an award for the acquisition of a facility to be used as a youth center or youth housing shall ensure that the facility will be used for that purpose for at least 10 years from the date of acquisition.
(b)A recipient that receives an award for the construction of a facility to be used as a youth center or youth housing shall ensure the facility will be used for that purpose for at least 20 years after completion of construction.
(c)A recipient that receives an award for the renovation of an existing facility to be used as a youth center or youth housing shall ensure the facility will be used for that purpose for the following periods:
(1)Not less than three years from the date the contract terminates, where the amount of the award does not exceed five hundred thousand dollars ($500,000).
(2)If the award exceeds five hundred thousand dollars ($500,000), the period of time shall increase one year for each additional hundred thousand dollars ($100,000) or part thereof, to a maximum of eight years.
(3)For awards that exceed one million dollars ($1,000,000), the period of time shall not be less than 10 years.
(a)The department shall be entitled to recapture moneys awarded pursuant to this chapter if, before the conclusion of the applicable time period described in Section 53707, either of the following occurs:
(1)The recipient ceases to be a nonprofit organization.
(2)(A)Except as otherwise provided in subparagraph (B), the applicable facility is no longer used for youth center or youth housing activities.
(B)Notwithstanding any other provision of this section, the department shall not recapture any funds awarded to a local agency that were initially allocated for housing for current or former foster youth pursuant to subdivision (b) of Section 53713, but were expended for housing for homeless youth pursuant to subdivision (c) of Section 53713.
(b)(1)The amount recaptured pursuant to this section shall be the proportion of the current value of the facility equal to the proportion of state funds contributed to the original cost.
(2)The current value of the facility shall be determined by an agreement between the owner of the facility and the department, or by an action in the court in the jurisdiction in which the facility is located.
(c)Funding recaptured pursuant to this section shall be redeposited into the fund and reallocated according to a supplemental process established pursuant to paragraph (2) of subdivision (b) of Section 53713.
A facility altered, acquired, renovated, constructed, or equipped using funds awarded under this part shall not be used for any sectarian instruction or as a place for religious worship.
(a)The department shall issue a request for proposals for youth centers and youth housing within three months of moneys being deposited in the fund for the purposes of this part.
(b)The department shall review and evaluate proposals consistent with the priorities established pursuant to Section 53712.
Proposals submitted pursuant to this part for both youth centers and youth housing shall, at a minimum, do all of the following:
(a)Document the need for the applicant’s proposal.
(b)Contain a written commitment and a plan for the delivery of programs and services designed to meet the needs of the youth of the targeted community.
(c)(1)Include a match for funding consistent with the following, as applicable:
(A)When the applicant is a local agency or joint venture involving a local agency, a match equal to 25 percent of the total amount requested.
(B)When the applicant is a nonprofit organization, a match equal to 15 percent of the total amount requested.
(2)The match for funding required pursuant to this subdivision may be in cash or in kind.
(d)Document the cost effectiveness of the proposal.
(e)Contain a written commitment and plan to develop and implement a process to receive and consider feedback and suggestions from the community served, including a separate mechanism for the youth it serves. A board of directors reflecting broad representation of the community shall satisfy this subdivision.
(f)Document plans to utilize and coordinate with other organizations serving the same youth population, including making the facilities available where possible.
(a)The department shall establish a priority for considering and ranking proposals based on all of the following:
(1)The greatest need in the most heavily populated areas.
(2)The most underserved areas.
(3)The most economically disadvantaged areas, both in urban and rural counties.
(4)The number of youth to be served.
(5)The cost effectiveness of the proposal.
(6)The utilization of, and coordination with, other agencies serving youth.
(7)The applicant’s experience in program management, particularly in programs serving the needs of youth.
(8)The applicant’s experience in programs serving youth.
(b)The department shall rank all proposals based on the priority established pursuant to subdivision (a).
(c)After ranking the proposals pursuant to subdivision (a), funds shall be awarded to applicants in the following order of priority:
(1)Nonprofit organizations.
(2)Joint ventures between local agencies and nonprofit organizations.
(3)Local agencies.
(d)The department shall, to the extent possible given the amount of funds available, attempt to ensure a geographically broad distribution of the funds consistent with the program priorities, in order to meet the needs of youth.
(a)For purposes of administering this chapter and the allocation of bond proceeds, the department shall treat funding for youth centers and youth housing as separate programs and shall fund each separately.
(b)(1)Funding for youth housing shall be awarded as follows:
(A)At least 50 percent to housing for homeless youth.
(B)A maximum of 50 percent to housing for current or former foster youth.
(2)Any money that has been awarded to housing for homeless youth or current or former foster youth, and has not been encumbered by July 1, 2030, shall be reallocated according to a supplemental process to be developed by the department. The department shall establish this reallocation process only when the unspent funds accumulated under this chapter equals five million dollars ($5,000,000) or more. The department shall accept new proposals pursuant to this process from all eligible applicants consistent with the requirements of this chapter.
(c)Notwithstanding any other law, a local agency may use any unexpended funds awarded to a housing project for current or former foster youth under subparagraph (B) of paragraph (1) of subdivision (b) for the purpose of acquiring, renovating, constructing, or purchasing equipment for a housing project for homeless youth.
(d)The department shall seek the cooperation and advice of the Interagency Council on Homelessness and other appropriate agencies in the administration of this part.
Notwithstanding any other provision of this part, a local agency that is the recipient of an award pursuant to this part may use funds to establish a local grant program that provides grant awards to nonprofit organizations for the acquisition, renovation, construction, or purchase of equipment for youth housing.
An eligible applicant that is allocated funds for a grant program pursuant to this part shall not use more than 5 percent of the funds allocated for the program to pay the administrative costs of that program.
The Legislature may amend the provisions of this chapter, including the distribution of funding established pursuant to Section 53705, for the purposes of improving the efficiency and effectiveness of the program or to further the goals of the program.
(a)Bonds in the total amount of one billion dollars ($1,000,000,000), not including the amount of any refunding bonds issued in accordance with Section 53726, may be issued and sold for the purposes expressed in this part and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, issued, and delivered, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.
(b)The Treasurer shall issue and sell the bonds authorized in subdivision (a) in the amount determined by the committee to be necessary or desirable pursuant to Section 53720. The bonds shall be issued and sold upon the terms and conditions specified in a resolution to be adopted by the committee pursuant to Section 16731 of the Government Code.
(a)The bonds authorized by this part shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), as amended from time to time, and all of the provisions of that law apply to the bonds and to this part and are hereby incorporated in this part as though set forth in full in this part.
(b)For purposes of this part, the references to “committee” in the State General Obligation Bond Law shall mean the Youth Housing Finance Committee created in Section 53719, and the references to “board” in the State General Obligation Bond Law shall mean the Department of Housing and Community Development.
(a)Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this part, the Youth Housing Finance Committee is hereby created.
(b)The committee consists of the Controller, the Treasurer, the Director of Finance, the Director of Housing and Community Development, and the Director of Social Services. Notwithstanding any other law, any member may designate a representative to act as that member in the member’s place for all purposes, as though the member were personally present.
(c)The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee.
The committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds authorized pursuant to this part in order to carry out the actions specified in this part and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds authorized to be issued be sold at any one time.
There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds becoming due each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.
Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this part and without regard to fiscal years, an amount that equals the total of the following:
(a)The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable.
(b)The sum necessary to carry out Section 53724.
The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, in accordance with Section 16312 of the Government Code, for the purpose of carrying out this part less any amount withdrawn pursuant to Section 53724 and not yet returned to the General Fund. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold for the purpose of carrying out this part, excluding any refunding bonds authorized pursuant to Section 53726, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 53724 and not yet returned to the General Fund. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited
in the fund to be allocated by the board in accordance with this part.
For the purposes of carrying out this part, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this part, excluding any refunding bonds authorized pursuant to Section 53726, less any amount loaned pursuant to Section 53723 and not yet repaid, and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited in the fund. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this part.
All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this part shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except those amounts derived from premium may be reserved and used to pay the cost of bond issuance before any transfer to the General Fund.
The bonds issued and sold pursuant to this part may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4 of Title 2 of the Government Code, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this part includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this part or any previously issued refunding bonds. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.
Notwithstanding any other provision of this part, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this part that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds or earnings required or desirable under federal law to maintain the tax exempt status of those bonds and to obtain any other advantage under federal law
on behalf of the funds of this state.
The proceeds from the sale of bonds authorized by this part are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, and the disbursement of these proceeds is not subject to the limitations imposed by that article.
Section 1 of this act shall take effect upon the approval by the voters of the Youth Housing Bond Act of 2026, as set forth in Section 1 of this act.
(a)(1)Notwithstanding Sections 9040, 9043, 9044, 9061, and 9082 of the Elections Code, or any other law, Section 1 of this act shall be submitted by the Secretary of State to the voters at the next statewide general election following the effective date of this act.
(2)The requirement of Section 9040 of the Elections Code that a measure submitted to the people by the Legislature appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal by the Legislature shall not apply to Section 1 of this act.
(b)The Secretary of State shall include in the ballot pamphlets mailed pursuant to Section 9094 of the Elections Code the information specified in Section 9084 of the Elections Code regarding Section 1 of this act. If that inclusion is not possible, the Secretary of State shall publish a supplemental ballot pamphlet regarding Section 1 of this act to be mailed with the ballot pamphlet. If the supplemental ballot pamphlet cannot be mailed with the ballot pamphlet, the supplemental ballot pamphlet shall be mailed separately.
(c)Notwithstanding Section 9054 of the Elections Code or any other law, the translations of the ballot title and the condensed statement of the ballot title required pursuant to Section 9054 of the Elections Code for Section 1 of this act may be made available for public examination at a later date than the start of the public examination period for the ballot pamphlet.
(d)Notwithstanding Sections 13115 and 13117 of the Elections Code, Section 1 of this act and any other measure placed on the ballot by the Legislature for the next statewide general election after the 131-day deadline set forth in Section 9040 of the Elections Code shall be placed on the ballot, following all other ballot measures, in the order in which they qualified as determined by chapter number.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to maximize the time available for the analysis and preparation of the proposed issuance of bonds pursuant to Section 1 of this act, it is necessary that this act take effect immediately.
