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<ns0:Id>20250SB__042993CHP</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
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<ns0:ActionDate>2025-09-17</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>CHAPTERED</ns0:ActionText>
<ns0:ActionDate>2025-10-10</ns0:ActionDate>
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<ns0:ActionText>APPROVED</ns0:ActionText>
<ns0:ActionDate>2025-10-10</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>FILED</ns0:ActionText>
<ns0:ActionDate>2025-10-10</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:ChapterNum>541</ns0:ChapterNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Cortese</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Senators Becker, Richardson, Rubio, and Stern)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Cortese</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Becker</ns0:Name>
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<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Richardson</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Rubio</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Stern</ns0:Name>
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<ns0:Title>An act to add Article 12 (commencing with Section 970) to Chapter 1 of Part 2 of Division 1 of the Insurance Code, relating to insurance. </ns0:Title>
<ns0:RelatingClause>insurance</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Wildfire Safety and Risk Mitigation Program.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law creates the Department of Insurance and prescribes the department’s powers and duties. Existing law generally regulates the business of insurance in the state, including the underwriting and ongoing monitoring of insured risks. Existing law generally requires an insurer or insurance producer to have underwriting guidelines that establish the criteria and process under which an insurer makes its decision to provide or to deny coverage.</html:p>
<html:p>Existing law requires an admitted insurer with written California premiums totaling $10,000,000 or more, to submit a report, as specified, to the commissioner with specified fire risk information on its residential property policies. Existing law requires the commissioner to post on the department’s internet website a report on wildfire risk compiled from data collected from specified insurers.</html:p>
<html:p>This bill, upon appropriation for these purposes, would establish the Wildfire Safety and Risk Mitigation Program to fund the development, demonstration, and deployment of a public wildfire catastrophe model, as defined, and to provide grant funding to one or more universities for eligible projects with specified criteria for the purpose of creating a research and educational center responsible for developing, demonstrating, and deploying a public wildfire catastrophe model that provides significant wildfire safety benefits to California communities and assists alignment of federal, state, and local wildfire risk reduction efforts. The bill would create the Wildfire Safety and Risk Mitigation Account within the Insurance Fund for these purposes.</html:p>
<html:p>The bill, also upon appropriation for these purposes, would require the department to create a framework and multiyear plan with available data for the development, demonstration, and
deployment of a public wildfire catastrophe model that includes specified information and to publish the plan on the department’s internet website. The bill would require the department to provide recommendations to the Senate Committee on Insurance, Assembly Committee on Insurance, Assembly Committee on Emergency Management, Budget Committees, and the Governor for future budget allocations related to these provisions before September 1, 2026.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_B38B5D52-9478-453D-80F4-EFBD3A8A3221">
<ns0:Num>SECTION 1.</ns0:Num>
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Article 12 (commencing with Section 970) is added to Chapter 1 of Part 2 of Division 1 of the
<ns0:DocName>Insurance Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_2DF0018E-CDDE-4999-B629-181B4225D7BA" type="ARTICLE">
<ns0:Num>12.</ns0:Num>
<ns0:LawHeadingVersion id="id_4AB4BCB7-91FD-4A3A-A892-36DC8A3E5403">
<ns0:LawHeadingText>Wildfire Safety and Risk Mitigation Program</ns0:LawHeadingText>
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<ns0:LawSection id="id_039334E4-C972-4026-92E8-D7AC8B11E5AA">
<ns0:Num>970.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Wildfire Safety and Risk Mitigation Program is hereby established.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The purpose of the program is to provide funding to one or more universities for the purpose of creating a research and educational center responsible for developing, demonstrating, and deploying a public wildfire catastrophe model that provides significant wildfire safety benefits to California communities and assists alignment of federal, state, and local wildfire risk reduction efforts.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Projects eligible for a grant under this article include either of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The development of a public wildfire catastrophe model that
can provide insight for state and local emergency planners, aid wildfire safety efforts that protect lives and property, increase research and development on wildfire risk mitigation strategies, inform actuarial analyses, create training opportunities for students and professionals, and support effective insurance regulation and financial oversight of insurance, risk assessments, and insurance company solvency risks and risk management.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The development of outreach initiatives to identify and educate potential users of a public wildfire catastrophe model, including, but not limited to, state and local emergency planners, wildfire safety groups, agricultural and business groups, research organizations, and educators.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
For the purposes of this article, a “public
wildfire catastrophe model” means a computerized process that uses the best available science to simulate potential property damage caused by major wildfires and has readily accessible documentation and programs, including, but not limited to, underlying data and algorithms, for use by public agencies, organizations, and individuals.
</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_4657A4E5-1398-41CB-B20B-28B9784FA432">
<ns0:Num>971.</ns0:Num>
<ns0:LawSectionVersion id="id_15D968A7-5CEC-4F27-BEFC-52B80DAD5E2F">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Wildfire Safety and Risk Mitigation Program shall be administered by the department.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The department shall award grants on a competitive basis. The department shall establish minimum standards, funding schedules, and procedures for awarding grants. In determining these standards, the department shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Outline performance criteria and metrics.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Ensure that the program is administered in furtherance of applicable insurance laws and regulations, including, but not limited to, Sections 2642.7, 2644.16, 2644.25,
2644.4.5, and 2644.9 of Title 10 of the California Code of Regulations.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Consider research and development of modeling techniques and actuarial analyses specific to the effectiveness of actions to mitigate and prevent the risk of loss due to wildfires, including those actions at the property, community, and regional scale by utilities and local, state, and federal governments.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Promote publicly accessible information to inform individual property and community-scale mitigation planning, focusing on reducing the primary risk factors for wildfire catastrophes through providing regional and property-level risk assessments.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Leverage, to the maximum extent feasible, federal or private funding.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Ensure activities undertaken pursuant to this article complement efforts by the federal government and private industries, including insurance, to achieve wildfire safety at the community scale.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Ensure activities undertaken pursuant to this article complement wildfire mitigation priorities identified in local and state hazard mitigation plans and in after-action reports following federal major disaster declarations related to wildfires.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Consider recommendations to the commissioner by the Public Wildfire Catastrophe Model Strategy Group.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_315E5453-01B4-4ABB-8AC5-3726A566956E">
<ns0:Num>972.</ns0:Num>
<ns0:LawSectionVersion id="id_3E78D6B4-96B4-4210-A4C8-636B22B34ADC">
<ns0:Content>
<html:p>In evaluating grant proposals pursuant to this article, the department shall give priority to projects that demonstrate one or more of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
A benefit to disadvantaged communities determined under Sections 39711 and 39713 of the Health and Safety Code, vulnerable communities as defined in subdivision (d) of Section 71340 of the Public Resources Code, and where insurance access has become a major challenge for the public due to wildfire risk.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Assistance to state and local governments in protecting communities from devastating wildfire disasters and promoting equitable recovery.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
An educational benefit for California students to train a future workforce in the effective use of available data and modeling tools for planning, risk analysis and reduction, and actuarial approaches, with a focus on collaboration between multiple universities and public higher education institutions.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The availability for use by governments and others in running scenarios to help reduce the risks of loss of life and property.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The availability of publicly accessible information useful for property-level risk assessments with
sufficient detail to be useful for community and property mitigation planning, focusing on reducing the primary risk factors for wildfire catastrophes, including property- and community-level actions.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The understanding of environmental factors that affect the risk of loss, including extreme temperatures, drought, and other conditions.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The ability to improve consumer information, relief, transparency, and understanding about catastrophe modeling.
</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_808BBA04-1711-4ACE-AA62-87BBFF43CC6A">
<ns0:Num>973.</ns0:Num>
<ns0:LawSectionVersion id="id_512BEA35-CA4B-4E7A-89BA-562CE009B40F">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department shall create a framework and multiyear plan with available data for the development, demonstration, and deployment of a public wildfire catastrophe model created pursuant to a grant provided by this article.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The framework and plan shall be published on the department’s internet website upon completion.
</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_B0340361-D7D8-4171-AC50-C803BF064ADD">
<ns0:Num>974.</ns0:Num>
<ns0:LawSectionVersion id="id_4F912917-E9E0-4EBB-BFC6-0C4B77D13A8F">
<ns0:Content>
<html:p>The Wildfire Safety and Risk Mitigation Account is hereby created within the Insurance Fund. Funds in the account shall fund the development, demonstration, and deployment of public wildfire catastrophe modeling.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_32ABE51A-B0B4-4091-B893-A638F3B222BF">
<ns0:Num>975.</ns0:Num>
<ns0:LawSectionVersion id="id_BD5ED884-39F3-46F4-9B29-EE196D243170">
<ns0:Content>
<html:p>Upon implementation of the first round of grants issued pursuant to this article, the department shall identify, publish, and make available on its internet website key milestones for the completion of a public wildfire catastrophe model, including additional research, outreach, and operational steps needed to fully establish the model.</html:p>
</ns0:Content>
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</ns0:LawSection>
<ns0:LawSection id="id_0C4C0B83-2DBD-4DFF-B035-A09EC7A6BC69">
<ns0:Num>976.</ns0:Num>
<ns0:LawSectionVersion id="id_3A9C8565-80B3-4D06-A85C-EEB193275D14">
<ns0:Content>
<html:p>The department shall provide recommendations to the Senate Committee on Insurance, Assembly Committee on Insurance, Assembly Committee on Emergency Management, Budget Committees, and the Governor for future budget allocations related to this article before September 1, 2026.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_548CFBAA-A75C-4319-B89E-4BF3BB6C256A">
<ns0:Num>977.</ns0:Num>
<ns0:LawSectionVersion id="id_8A4439F2-0178-41EF-B64E-1E4C83E9BF98">
<ns0:Content>
<html:p>This article shall not be construed to limit or conflict with the commissioner’s authority regarding rate regulation, or any other provisions of this code.</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_D2568A9A-3310-421C-BB07-112F0FA9F919">
<ns0:Num>978.</ns0:Num>
<ns0:LawSectionVersion id="id_9E27383B-FE69-4C12-8306-F867E800FD9D">
<ns0:Content>
<html:p>This article shall be operative upon appropriation by the Legislature for these purposes.</html:p>
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