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<ns0:Id>20250AB__179598AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-10</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-16</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Gipson</ns0:AuthorText>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Gipson</ns0:Name>
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<ns0:Title>An act to add Chapter 6.12 (commencing with Section 25405) to Division 20 of, and to add Chapter 7.5 (commencing with Section 105435) to Part 5 of Division 103 of, the Health and Safety Code, and to add Sections 2060.1, 2060.2, 14048, and 15009.2 to the Insurance Code, relating to smoke damage.</ns0:Title>
<ns0:RelatingClause>smoke damage</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Smoke Damage Recovery Act.</ns0:Subject>
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<html:p>
(1)
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Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires the Office of the State Fire Marshal to develop and make available on its internet website a Wildland-Urban Interface Fire Safety Building Standards Compliance training intended for use in the training of local building officials, builders, and fire service personnel, as specified. Existing law authorizes the Office of the State Fire Marshal to allow certification of contractors who conduct defensible space, home hardening, fuel reduction, roadside clearance, and other contracting activities for wildlife resiliency efforts and who have completed specified training
programs.
</html:p>
<html:p>This bill, the Smoke Damage Recovery Act, would require the California Environmental Protection Agency, on or before June 30, 2027, and in coordination with other state agencies and local public health departments, to develop requirements related to minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would authorize the California Environmental Protection Agency, the Department of Forestry and Fire Protection, or a city or county public health or safety agency to designate a smoke exposure zone for a specific wildfire, as provided, and, upon that designation, establish that the smoke exposure zone would supersede the default zones. The bill would additionally authorize the California Environmental Protection Agency to impose additional sampling, testing, or chemical screening requirements pertaining to a specific
wildfire.</html:p>
<html:p>This bill would require the California Environmental Protection Agency, on or before January 1, 2028, and in consultation with state and local agencies, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration. The bill would require the California Environmental Protection Agency to promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements. The bill would require the regulations to establish the fees that will be required for the certifications, and limit the fees to the amount sufficient to cover the costs of administering
and enforcing these requirements. The bill would establish the Wildfire Remediation Certification and Training Fund in the State Treasury, require fees collected pursuant to these provisions to be deposited into the fund, and make these funds available, upon appropriation by the Legislature, for use in administering the training and certification requirements.</html:p>
<html:p>
(2)
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Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.
</html:p>
<html:p>This bill would prohibit an insurer from terminating additional living expenses coverage for a
residential property insurance smoke damage claim as a result of a wildland-urban interface fire or urban conflagration that is declared a state of emergency until the property has been cleared for habitation, as specified. The bill would require the above-described California Environmental Protection Agency guidance and specified local or state guidance to apply to these claims. The bill would create a rebuttable presumption regarding the impact classification of a smoke-damaged property and would make an insurer responsible for the cost of sampling and testing required pursuant to California Environmental Protection Agency guidance. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value
of the cost to restore the damaged property no later than 30 calendar days after the inspection, unless the policyholder has agreed to remediation and restoration by the insurer. After that payment is made, the bill would require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 15 calendar days from the date the insured provides the insurer with their contractor’s contract to remediate and restore the damaged property to its preloss condition, unless the policyholder has agreed to remediation and restoration by the insurer.</html:p>
<html:p>
(3)
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Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of public insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.
</html:p>
<html:p>This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildland-urban interface fire or urban conflagration in residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with those standards, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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<html:p>This act shall be known, and may be cited, as the Smoke Damage Recovery Act.</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p>
(a)
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The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
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California has experienced recordbreaking wildfires in recent years, including the Eaton Fire and Palisades Fire in January 2025 that damaged and destroyed thousands of homes and businesses. In addition to completely destroyed homes, condominiums, and apartments, thousands of residential properties suffered damage as a result of smoke, soot, char, ash, and other contaminants.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Thousands of smoke damage insurance claims have been filed as a result of these fires. The lack of universally recognized standards for the testing, evaluation, and remediation of smoke damage has prompted complaints from survivors that their insurance companies have completely or partially denied their smoke damage claims or have refused to conduct, or reimburse for, preremediation testing or postremediation clearance testing to ensure their homes have been properly restored to preloss condition.
</html:p>
<html:p>
(3)
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While the Department of Insurance has taken multiple executive actions to
protect consumers, including issuing a bulletin to insurers reminding them of their duty to fully investigate complaints, initiating legal action against the California FAIR Plan over its failure to handle smoke damage claims within existing law, and investigating complaints from consumers, the lack of standards and unsettled caselaw have caused a patchwork of claims handling practices by insurance companies.
</html:p>
<html:p>
(4)
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Smoke, soot, char, ash, and other contaminants that emanate from wildfires cause damage to properties by depositing particulate
matter, gases, heavy metals, volatile organic compounds, and other pollutants onto personal property and into the walls, floors, ceilings, surfaces, and other infrastructure of a property. Those contaminants not only compromise the integrity of the premises, but they may also pose significant, long-term health issues long after the fire has been extinguished.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
As property owners and tenants return to their properties and the areas that have been damaged or destroyed after a wildfire, many face uncertainty as to whether their properties have been properly remediated and are safe to inhabit. Residents whose properties suffer smoke damage as a result of wildfire should be assured of their safety and habitability, as well as having their personal property
restored to preloss condition.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
It is in the best interest of Californians to protect the health and safety of residents by ensuring that their properties are returned to a safe and habitable condition after suffering damage from wildfires, including smoke damage.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
While all property insurance policies that cover the peril of fire also cover smoke damage resulting from fire, the extent to which insurance companies are covering the remediation and restoration of properties has been inconsistent, and many residents are concerned that they will incur significant financial burden
to remediate and restore their properties on their own.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
While remediation of smoke damage is made more challenging due to the varying severity of smoke inundation on the exterior and interior of properties, consistent standards are vitally needed regarding the inspection, testing, and remediation of smoke damage on residential properties after a fire so that the Department of Insurance is able to enforce insurance companies’ remediation obligations and so that residential properties are rendered safe and habitable and
restored to preloss condition.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
In response to the unprecedented damage caused by the January wildfires, in June 2025, Insurance Commissioner Ricardo Lara directed the Department of Insurance to lead a Smoke Claims and Remediation Task Force (Task Force), comprised of members representing consumers, public health, environmental health, fire safety, local governments, remediation and restoration specialists, industrial hygienists, and the insurance industry, to develop recommendations for uniform standards for the inspection, testing, and remediation of smoke damage in residential properties, and to determine the extent to which the remediation of those properties should be covered by residential property insurance policies. The Task Force met over several months in 2025 and
has submitted its report of recommendations to the Insurance Commissioner.
</html:p>
<html:p>
(b)
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It is the intent of the Legislature to set forth standards and protocols to ensure the health and safety of residents and for the proper handling of smoke-damaged residential property insurance claims caused by wildfires after consideration of the recommendations in the Task Force Report, as well as other relevant scientific and health-based sources.
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<ns0:BillSection id="id_31F91C59-DB0A-4025-A3E9-FE6085B84787">
<ns0:Num>SEC. 3.</ns0:Num>
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Chapter 6.12 (commencing with Section 25405) is added to Division 20 of the
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, to read:
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<ns0:Num>6.12.</ns0:Num>
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<ns0:LawHeadingText>Residential Property Wildfire Remediation</ns0:LawHeadingText>
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<ns0:Num>25405.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
On or before June 30, 2027, the California Environmental Protection Agency, in coordination with other state agencies and local public health departments, as necessary, shall develop requirements related to minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration, similar in scope to the “Residential Soil Evaluation: Guidance for the 2025 Los Angeles Wildfires,” developed by the Department of Toxic Substances Control, in coordination with the Department of Resources Recycling and Recovery. These requirements shall include standards, parameters, and thresholds for preremediation testing, postremediation testing, and clearance of a residential property for habitation after
remediation is completed.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The requirements developed pursuant to subdivision (a) shall consider differences, where appropriate, based on the distance of a residential structure from the fire perimeter. The following objective default zones, based on distance of a residential structure from the fire perimeter, shall be used:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
High-impact zone.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Moderate-impact zone.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Low-impact zone.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If applicable, there shall be more stringent standards for the high-impact zone, and lesser standards, if deemed appropriate, for the moderate-impact zone and the low-impact zone.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The California Environmental Protection Agency, the Department of Forestry and Fire Protection, and a city or county public health or safety agency may designate a smoke exposure zone for a specific wildfire.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
If the California Environmental Protection Agency, the Department of Forestry and Fire Protection, or a city or county public health or safety agency designates a smoke exposure zone for a specific wildfire, then the smoke exposure zone shall supersede the default zones described in paragraph (1) and the requirements applicable to a high-impact zone shall apply within the smoke exposure zone.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The requirements developed pursuant to subdivision (a) shall also consider, where appropriate, whether certain wildfire smoke byproducts and associated hazardous substances dissipate with the passage of time.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The California Environmental Protection Agency and Department of Forestry and Fire Protection shall adopt regulations, pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, as may be necessary to implement or make more specific the provisions of subdivisions (a) to (c), inclusive.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
(1)
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The California Environmental Protection Agency may, in addition to the requirements developed pursuant to subdivision (a), impose requirements pertaining to a specific wildfire, including requirements that relate to the identification of additional chemicals of concern, additional minimum sampling and testing recommendations or requirements, or additional chemical screening levels for residential properties that have sustained smoke damage.
</html:p>
<html:p>
(2)
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A requirement or recommendation adopted pursuant to
paragraph (1) shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code).
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The California Environmental Protection Agency may, as an interim measure before the adoption of the regulations described in subdivision (a), impose sampling, testing, and chemical screening requirements pertaining to a specific wildfire that a person involved in the inspection, evaluation, testing, or remediation process, including an open, pending, or disputed insurance claim involving that specific wildfire, shall comply with.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A requirement adopted pursuant to paragraph (1) shall be inoperative upon the adoption of regulations described in
subdivision (e).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A requirement adopted pursuant to paragraph (1) shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code).
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
For purposes of this chapter:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Fire perimeter” means the footprint or entire outer boundary of a burned area as a result of a wildland-urban interface fire or urban conflagration, as determined and mapped by the Department of Forestry and Fire Protection.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“High-impact zone” means the area within the fire perimeter and within six miles from the fire perimeter, or the area within a smoke
exposure zone designated for a specific wildfire pursuant to this section.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Low-impact zone” means the area greater than 12 miles from the fire perimeter, or the area greater than 6 miles from a smoke exposure zone designated for a specific wildfire pursuant to this section.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
“Moderate-impact zone” means the area within 6 miles to 12 miles from the fire perimeter, or within 6 miles from a smoke exposure zone designated for a specific wildfire pursuant to this section.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
“Person” means an individual, insurance company, association, organization, partnership, business trust, limited liability company, or corporation.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
“Restoration of the property to preloss condition” means the removal of smoke damage residues, combustion byproducts,
chemicals, contaminants, and odor caused by wildfire smoke exposure through remediation of the property, including structural elements, building systems, contents, and indoor environment, to the same condition that existed before exposure.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
“Smoke damage” means exposure to residential property or its contents caused by wildfire smoke, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke that requires restoration of the property to preloss condition.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
“Smoke exposure zone” means the area exposed to significant settled, fine particulate residue, including soot, char, and ash, carried by a smoke plume and winds after a wildland-urban interface fire or urban conflagration, as designated by the California Environmental Protection Agency, the Department of Forestry and Fire Protection, or a city or county public health or safety agency.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
“Urban conflagration” means a massive, uncontrollable fire, regardless of cause, that spreads rapidly from building to building through densely populated, developed areas, typically overwhelming fire suppression resources, and that has been designated and declared in a state of emergency pursuant to Section 8558 of the Government Code. These fires are typically fueled by high winds, structural density, and flammable materials, often transitioning from wildland-urban interface fires into surrounding communities.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
“Wildfire” means a wildland-urban interface fire, or an urban conflagration, that has been designated and declared in a state of emergency pursuant to Section 8558 of the Government Code.
</html:p>
<html:p>
(11)
<html:span class="EnSpace"/>
“Wildland-urban interface fire” means a fire, regardless of cause, in the zone of transition between unoccupied
land and human development, including the area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels creating significant fire risk to developed areas and a significant number of structures, that has been designated and declared in a state of emergency pursuant to Section 8558 of the Government Code.
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<ns0:Num>SEC. 4.</ns0:Num>
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Chapter 7.5 (commencing with Section 105435) is added to Part 5 of Division 103 of the
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<ns0:Num>7.5.</ns0:Num>
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<ns0:LawHeadingText>Wildfire Remediation Certification and Training</ns0:LawHeadingText>
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<ns0:Num>105435.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The Legislature finds and declares all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The State Department of Public Health administers the Lead-Related Construction Program (Chapter 4 (commencing with Section 105250)).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Department of Industrial Relations, through its Division of Occupational Safety and Health, regulates asbestos-related work.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Contractors State License Board regulates contractors, including asbestos consultants, for asbestos abatement projects involving 100 square feet or more of surface area of asbestos-containing material.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The
State Water Resources Control Board administers the Environmental Laboratory Accreditation Act (Article 3 (commencing with Section 100825) of Chapter 4 of Part 1 of Division 101).
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On or before January 1, 2028, the California Environmental Protection Agency shall consult with the Department of Insurance, those agencies identified in subdivision (a), and any other state or local governmental agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration, including industrial hygienists, restoration professionals, and laboratories. The training and certification requirements shall be tailored to each category of persons depending on their role with regard to wildfire smoke damage.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The California Environmental Protection Agency shall promulgate regulations, if necessary, to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The regulations adopted pursuant to subdivision (c) shall also establish the fees that will be required for the certification of a person who inspects, evaluates, samples, tests, analyzes, or restores residential properties that have sustained smoke damage as a result of wildfire. The fees imposed under this section shall be established at levels not to exceed an amount sufficient to cover the costs of administering and enforcing the requirements and regulations adopted under this section.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Fees collected pursuant to this section shall be deposited into the Wildfire Remediation Certification and Training Fund, which is hereby created in the State Treasury. Funds shall be available, upon appropriation by the Legislature, for the purposes described in paragraph (1).
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<html:p>
(e)
<html:span class="EnSpace"/>
The definitions set forth in Section 25405 apply for purposes of this section.
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<ns0:BillSection id="id_7D766A9A-E41C-4FB6-9AA0-940933D56557">
<ns0:Num>SEC. 5.</ns0:Num>
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Section 2060.1 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_A0A38AEA-87A5-494B-AB7B-CA952E510514">
<ns0:Num>2060.1.</ns0:Num>
<ns0:LawSectionVersion id="id_4D199D63-B340-4B0D-A863-9778D2778F7B">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
An insurer shall not terminate coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as defined in Section 10087, as a result of a wildland-urban interface fire or urban conflagration that is declared a state of emergency pursuant to Section 8558 of the Government Code until the property has been cleared for habitation pursuant to guidance issued pursuant to Section 25405 of the Health and Safety Code and Section 2060.2, subject to the applicable policy limit.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “smoke damage,” “urban conflagration,” and “wildland-urban interface fire” have the same meanings as defined in Section 25405 of the Health and Safety
Code.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_39A374D2-A805-4C25-B037-ACAAF328E5F4">
<ns0:Num>SEC. 6.</ns0:Num>
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Section 2060.2 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_016680A1-8DC0-4E1F-948A-7F96E5D4A742">
<ns0:Num>2060.2.</ns0:Num>
<ns0:LawSectionVersion id="id_649DD8F2-A1AF-4B0E-B792-02FCCC9ACD52">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The guidance developed by the California Environmental Protection Agency pursuant to Section 25405 of the Health and Safety Code shall apply to covered smoke damage claims submitted under policies of residential property insurance as a result of a wildland-urban interface fire or urban conflagration that is declared a state of emergency pursuant to Section 8558 of the Government Code.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
In addition to the guidance described in subdivision (a), if a local or state public health department, environmental agency, or any other governmental agency with jurisdiction over the area where a wildfire has occurred issues a public notice, bulletin, or advisory that provides explicit guidance pertaining to a specific wildfire, including identifying
specific chemicals of concern, minimum sampling and testing recommendations, and chemical screening levels for residential properties that have sustained smoke damage, then that guidance shall also apply to claims under residential property insurance on properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration, utilizing the same tiered sampling and testing recommendations for each zone developed by the California Environmental Protection Agency.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Until the California Environmental Protection Agency develops the guidance required pursuant to Section 25405 of the Health and Safety Code, if a local or state public health department, environmental agency, or any other governmental agency with jurisdiction over the area where a wildfire has occurred issues a public notice, bulletin, advisory, or guidance that describes specific standards for sampling, testing, and chemical screening levels
for residential smoke damage and restoration pertaining to a specific wildfire, then those standards shall apply to a person involved in the inspection, evaluation, testing, and restoration process, including an open, pending, or disputed insurance claim involving that specific wildfire.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
An insurer shall be responsible for covering the cost of the sampling and testing that is required pursuant to the guidance issued pursuant to Section 25405 of the Health and Safety Code and this section, subject to the terms and provisions of the policy, the conditions and limitations set forth in subdivision (h), and all of the following rebuttable presumptions:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For residential properties in the high-impact zone, there shall be a rebuttable presumption that there is significant smoke damage exposure from the wildfire and the smoke damage claim shall be classified as high impact for
purposes of the type of inspection, evaluation, and testing it receives.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For residential properties in the moderate-impact zone, there shall be a rebuttable presumption that the property shall initially be classified as moderate impact for purposes of the type of inspection, evaluation, and testing, if applicable, it receives.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For residential properties in the low-impact zone, there shall be a rebuttable presumption that the property shall initially be classified as low impact for purposes of the type of inspection, if any, and evaluation it receives.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
This section does not preclude an insurer from covering sampling and testing that exceeds what is required pursuant to the guidance issued pursuant to Section 25405 of the Health and Safety Code and this section.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
All of the following conditions shall apply to covered smoke damage claims resulting from a wildland-urban interface fire or urban conflagration that is declared a state of emergency pursuant to Section 8558 of the Government Code:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
If the insurer chooses to exercise its right to inspect the smoke-damaged property, the insurer shall inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim. If the property is not accessible due to government restrictions, then the insurer shall inspect the property as soon as practicable, but no later than 30 calendar days after access to the property is granted.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Unless the policyholder has agreed to permit the insurer, or the insurer’s contractor, to remediate and restore the damaged property, the insurer shall pay the
actual cash value of the cost to restore the damaged property to no less than its condition before the loss as soon as practicable, but no later than 30 calendar days from the date the property was inspected.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Unless the policyholder has agreed to permit the insurer, or the insurer’s contractor, to remediate and restore the damaged property, under a policy of residential property insurance that requires payment of the replacement cost for a loss, after the actual cash value payment is made pursuant to paragraph (2), the insurer shall pay the undisputed amount of replacement cost to restore the damaged property to no less than its condition before the loss, up to the applicable policy limits, within 15 calendar days from the date upon which the insured provides the insurer with a copy of a valid and executed contract with a licensed contractor to remediate and restore the damaged property to its preloss condition.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A payment not made pursuant to the timeframes required by this subdivision shall accrue interest payable to the insured pursuant to Section 2057.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
If a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of each document upon which the settlement is based. The estimate prepared by or for the insurer shall be for an amount that will restore the damaged property to no less than its condition before the loss and that shall allow for restoration to be completed in a manner that meets or exceeds accepted trade and industry standards and established technical guidance for the specific work being performed. A vendor or contractor hired or referred by the insurer to prepare the written scope or estimate or to perform smoke damage restoration work shall have the requisite
license, training, and certification with respect to smoke damage caused by wildfire in residential properties. The policyholder shall have the right to select the vendor or contractor to perform the restoration of the property.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
All of the following conditions and limitations shall apply to covered smoke damage claims resulting from a wildland-urban interface fire or urban conflagration that is declared a state of emergency pursuant to Section 8558 of the Government Code:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Notice of the claim shall be provided to the insurer within 120 days after the wildfire has reached 100 percent containment, as determined by the Department of Forestry and Fire Protection. An insurer shall provide an insured, or insured’s representative, additional extensions of this time period for good cause if the insured, acting in good faith and with reasonable diligence, encounters a delay in
providing notice of the claim that is beyond the control of the insured. Circumstances beyond the control of the insured may include either of the following, if applicable to the specific claim:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The death, disability, injury, or incapacity of the insured.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The inability of the insured to access the insured property as a result of governmental action or because the insured property is located in an area that is exposed to hazardous materials posing a health risk.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
If notice of the claim is given to an insurer later than the time period permitted under paragraph (1), then the claim may be subject to a sublimit of no less than 10 percent of the policy limits applicable to the primary structure.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The department shall implement and enforce the
guidance issued pursuant to Section 25405 of the Health and Safety Code and this section as they pertain to its licensees and shall have the administrative authority to assess penalties for noncompliance. A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
The definitions set forth in Section 25405 of the Health and Safety Code apply for purposes of this section.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
This section applies to all policies of residential property insurance, as defined in Section 10087, issued, amended, or renewed on or after the
operative date of this section.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_C45EC471-366A-4806-BB37-DE0E41B7EA9A">
<ns0:Num>SEC. 7.</ns0:Num>
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Section 14048 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
,
<ns0:Positioning>immediately following Section 14047</ns0:Positioning>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_19343EF3-2E9E-4114-BC70-7A7DDADF57FE">
<ns0:Num>14048.</ns0:Num>
<ns0:LawSectionVersion id="id_F85AFD45-2AD9-425F-B683-CB3EC1D39920">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On or before January 1, 2028, the department shall develop a training and certification program for insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildland-urban interface fire or urban conflagration in residential properties on behalf of insurers. An insurer, adjuster firm, or qualified manager shall train and accredit its adjusters in accordance with those standards.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The department shall implement and enforce the standards developed pursuant to subdivision (a) and shall have the administrative authority to assess penalties for noncompliance. A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1,
in addition to any other disciplinary proceedings provided in this chapter.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “insurance adjuster” includes all of the following persons:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Persons licensed pursuant to this chapter.
</html:p>
<html:p>
(2)
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Employees of persons licensed pursuant to this chapter who perform insurance adjusting activities, as described in Section 14021.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Employees of an insurer who perform insurance adjusting activities, as described in Section 14021.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
For purposes of this section, “smoke damage,” “urban conflagration,” and “wildland-urban interface fire” have the same meanings as defined in Section 25405 of the Health and Safety Code.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_601478A6-6953-47A8-A9E5-4626BA79A4B1">
<ns0:Num>SEC. 8.</ns0:Num>
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Section 15009.2 is added to the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_80F5C795-37D7-489B-B42F-1391D451AA21">
<ns0:Num>15009.2.</ns0:Num>
<ns0:LawSectionVersion id="id_4F33BF17-9E0F-406A-80BF-9FC15ECC5D50">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On or before January 1, 2028, the department shall develop a training and certification program for public insurance adjusters, as defined in Section 15007, in inspecting, evaluating, sampling, or testing smoke damage caused by a wildland-urban interface fire or urban conflagration in residential properties on behalf of insureds. A public adjuster hired by an insured to adjust smoke damage claims shall have the requisite license, training, and certification, as required by this section.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The department shall implement and enforce the standards developed pursuant to subdivision (a) and shall have the administrative authority to assess penalties for noncompliance. A violation of this section shall be an unfair practice subject to
Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1, in addition to any other disciplinary proceedings provided in this chapter.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For purposes of this section, “smoke damage,” “urban conflagration,” and “wildland-urban interface fire” have the same meanings as defined in Section 25405 of the Health and Safety Code.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>