Amended IN Senate May 19, 2022 Amended IN Senate March 10, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 926Introduced by Senator Dodd(Coauthor: Senator Portantino)February 07, 2022 An act to amend the heading of Article 4.4 (commencing with Section 4500) of Chapter 7 of Part 2 of Division 4 of, to add Sections 4501, 4502, and 4504 to, to add and repeal Section 4503 of, and to repeal and add Section 4500 to, the Public Resources Code, relating to fire prevention, and declaring the urgency thereof, to take effect immediately.LEGISLATIVE COUNSEL'S DIGESTSB 926, as amended, Dodd. Prescribed Fire Liability Pilot Program: Prescribed Fire Claims Fund.Existing law authorizes a person, firm, or corporation, or a group or combination of persons, firms, corporations, or groups, that owns or controls brush-covered land, forest lands, woodland, grassland, shrubland, or any combination thereof within a state responsibility area to apply to the Department of Forestry and Fire Protection for permission to utilize prescribed burning for specified public purposes. Existing law requires, on or before January 1, 2020, the Forest Management Task Force, or its successor entity, in coordination with the Department of Insurance, to develop recommendations for the implementation of an insurance pool or other mechanism for prescribed burn managers that reduces the cost of conducting prescribed fire while maintaining adequate liability protection when conducting prescribed burns. The Budget Act of 2021 appropriated to the Department of Forestry and Fire Protection $20,000,000 to establish a Prescribed Fire Liability Pilot Program, in consultation with the Department of Insurance and the Natural Resources Agency, that creates a prescribed fire claims fund to support coverage for losses from permitted prescribed fires by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities. This bill would delete the provision requiring the task force to develop recommendations for the implementation of an insurance pool or other mechanisms for prescribed burn managers. The bill would require the Department of Forestry and Fire Protection, on or before January 1, 2023, to establish, consistent with the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, as defined, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which the bill would establish. The bill would require that the $20,000,000 appropriated to the department by the Legislature in the Budget Act of 2021, and any other funds appropriated by the Legislature for the above purpose, be deposited into the fund, and would prescribe requirements for use of these moneys, among other things. The bill would designate the Director of General Services to administer the claims fund, and require the director to administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire or cultural burn projects to provide public benefits to the state, as provided. The bill would require the director, on or before April 1, 2023, to develop policies and procedures for the operation and administration of the claims fund, as provided. The bill would require the director to report to the relevant policy and fiscal committees of the Legislature, as specified, and require the Department of Finance, on or before July 1, 2024, to audit the claims fund and also report to the relevant policy and fiscal committee of the Legislature. This bill would declare that it is to take effect immediately as an urgency statute.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The heading of Article 4.4 (commencing with Section 4500) of Chapter 7 of Part 2 of Division 4 of the Public Resources Code is amended to read: Article 4.4. Prescribed Fire Claims FundSEC. 2. Section 4500 of the Public Resources Code is repealed.SEC. 3. Section 4500 is added to the Public Resources Code, to read:4500. For purposes of this article, the following terms have the following meanings:(a) Claims fund means the Prescribed Fire Claims Fund established pursuant to Section 4501.(b) Cultural burn has the same meaning as set forth in Section 4002.4.(c) Cultural fire practitioner has the same meaning as set forth in Section 4002.6.(d) (1) Eligible claimant means a person who meets all of the necessary qualifications established in the policies and procedures developed by the Director of General Services pursuant to subdivision (d) of Section 4501, whose prescribed fire or cultural burn project furthers the purposes outlined in subdivision (c) of Section 4501, and who is either of the following:(A) An individual, organization, or Native American tribe, including a cultural fire practitioner, that supervises, plans, or executes a prescribed fire or cultural burn project.(B) A landowner who owns the property where a prescribed fire or cultural burn project takes place.SEC. 4. Section 4501 is added to the Public Resources Code, to read:4501. (a) (1) On or before January 1, 2023, the department, in consultation with the Department of Insurance, the Director of General Services, and the Natural Resources Agency, shall establish, consistent with Item 3540-102-0001 of the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which is hereby established in the State Treasury.(2) (A) The following moneys shall be deposited in the claims fund:(i) (I) Twenty million dollars ($20,000,000) appropriated to the department by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021.(II) Notwithstanding any other law, the amount appropriated by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021 shall be available for encumbrance or expenditure until June 30, 2023, and for liquidation until June 30, 2025.(ii) Any other funds appropriated by the Legislature for purposes of this article. (iii) Any other funds from any source that are provided for purposes of this article.(B) Any moneys in the claims fund that have not been appropriated by the Legislature shall be available upon appropriation by the Legislature. (C) Notwithstanding any other law, moneys in the claims fund shall be encumbered once an eligible claimant may file a claim against the claims fund in accordance with the policies and procedures developed by the Director of General Services pursuant to subdivision (d).(3) The moneys in the claims fund shall be used for both of the following:(A) To support coverage for losses from prescribed fire and cultural burn projects consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(B) The actual and reasonable costs incurred for administration of the fund, not to exceed five 5 percent of the total amount appropriated by the Legislature.(b) The Director of General Services shall administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire and cultural burn projects to provide public benefits to the state consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(c) The claims fund shall cover eligible claims for damages and losses associated with prescribed fire and cultural burn projects undertaken in natural vegetation for cultural or ecological benefit or for hazardous fuels reduction purposes.(d) (1) On or before April 1, 2023, the Director of General Services, with the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, shall develop policies and procedures for the operation and administration of the claims fund, including, but not limited to, eligible claims and events, coverage limits, minimum amounts eligible for claims, and categories of losses that are eligible for coverage or that are excluded from coverage. The policies and procedures shall, at a minimum, do all of the following following:(A) Exclude from coverage damages that are the result of intentional violations of laws or established policies and procedures applicable to prescribed fire and cultural burn projects. (B) Require the Director of General Services to verify a claim, prior to payment from the claims fund.(C) Authorize the Director of General Services to negotiate with an eligible claimant to settle a claim, and require the Director of General Services to pay from the claims fund the costs of any claims settlement process.(D) Establish an upper limit, not to exceed two-million two million dollars ($2,000,000), and a lower limit for payments of claims or coverage per event. (E) Establish an application process for eligible claimants to file a claim against the claims fund that shall require, at a minimum, all of the following:(i) That an eligible claimant demonstrate past experience successfully completing a prescribed fire or cultural burn project. Nothing in this clause shall be used to prohibit a prescribed fire or cultural burn project from including a training component.(ii) That the prescribed fire or cultural burn project for which a claim is being made complies with, as necessary, both of the following:(I) All applicable state laws and regulations.(II) All permits required by state law or regulation for the prescribed fire or cultural burn project.(iii) That a prescribed fire or cultural burn project for which a claim is being made received permission from the landowner of the property where the prescribed fire or cultural burn project occurred or will occur. (iv) A specified period during which an eligible claimant is required to make a claim before needing to reapply.(F) Establish a process for notifying eligible claimants when the claims fund is no longer able to support new claims based on a threshold established by the Director of General Services.(G) Establish the maximum number of prescribed fire or cultural burn projects for which the claims fund can cover claims at one time. (H) Establish a process for reserving capacity within the claims fund for a specified period to maximize participation of eligible claimants and the public benefits of the claims fund. The process shall facilitate the expeditious shifting of claims-paying capacity once a prescribed fire or cultural burn project has been completed and evaluated for damages.(2) The Director of General Services may, subject to the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, modify the policies and procedures developed pursuant to paragraph (1) to improve the operation of the claims fund.(3) The policies and procedures developed by the Director of General Services pursuant to paragraph (1) or modified by the Director of General Services pursuant to paragraph (2) shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).(e) The Director of General Services shall notify the Governor and relevant policy and fiscal committees of the Legislature if, at any time, in the opinion of the Director of General Services, the size of the claims fund limits the amount of claims coverage that can be provided to otherwise eligible claimants.(f) A person engaging with a Native American tribe, tribal organization, or cultural fire practitioner pursuant to this article shall respect tribal sovereignty, customs, and culture.SEC. 5. Section 4502 is added to the Public Resources Code, to read:4502. The Director of General Services may exercise all of the following powers to administer the claims fund:(a) Access and review relevant records at the department, the State Air Resources Board, and local air pollution control and air quality management districts to confirm an eligible claimants compliance with applicable permits to determine eligibility of the claimant for the claims fund.(b) Enter into contracts with third parties necessary to carry out the directors duties pursuant to this article.(c) Determine the eligibility of claimants in accordance with the policies and procedures developed pursuant to subdivision (d) of Section 4501.(d) Make withdrawals from and deposits to the claims fund necessary to administer the claims fund pursuant to this article.(e) Any other actions necessary to carry out the purposes of this article.SEC. 6. Section 4503 is added to the Public Resources Code, to read:4503. (a) On or before January 1, 2024, and annually thereafter, the Director of General Services shall prepare and submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following:(1) A detailed description of all activities related to the claims fund.(2) A summary and description of acres burned by eligible claimants.(3) Recommendations for and modifications to claims fund policies and procedures.(b) On or before July 1, 2024, the Department of Finance shall audit the claims fund and provide a report to the relevant policy and fiscal committees of the Legislature.(c) On or before July 1, 2026, the Director of General Services, in consultation with the Insurance Commissioner and the Director of Forestry and Fire Protection, shall report to the relevant policy and fiscal committees of the Legislature on all of the following:(1) Whether the claims fund should continue.(2) Recommendations for changes to claims fund policies and procedures.(3) Whether the Director of General Services should continue to administer the claims fund.(d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.SEC. 7. Section 4504 is added to the Public Resources Code, to read:4504. Nothing in this article shall be construed as requiring participation in the claims fund as an additional requirement for conducting a prescribed fire or cultural burn project. Notwithstanding any other law, the decision not to participate in the claims fund shall not be used to restrict a prescribed fire or cultural burn project.SEC. 8. 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 protect life and property, and increase the number of controlled burns in high wildfire threat areas, by immediately operationalizing the Prescribed Fire Claims Fund to support coverage for losses from prescribed fires and cultural burns by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities, it is necessary for this act to take effect immediately immediately.
Amended IN Senate May 19, 2022 Amended IN Senate March 10, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 926Introduced by Senator Dodd(Coauthor: Senator Portantino)February 07, 2022 An act to amend the heading of Article 4.4 (commencing with Section 4500) of Chapter 7 of Part 2 of Division 4 of, to add Sections 4501, 4502, and 4504 to, to add and repeal Section 4503 of, and to repeal and add Section 4500 to, the Public Resources Code, relating to fire prevention, and declaring the urgency thereof, to take effect immediately.LEGISLATIVE COUNSEL'S DIGESTSB 926, as amended, Dodd. Prescribed Fire Liability Pilot Program: Prescribed Fire Claims Fund.Existing law authorizes a person, firm, or corporation, or a group or combination of persons, firms, corporations, or groups, that owns or controls brush-covered land, forest lands, woodland, grassland, shrubland, or any combination thereof within a state responsibility area to apply to the Department of Forestry and Fire Protection for permission to utilize prescribed burning for specified public purposes. Existing law requires, on or before January 1, 2020, the Forest Management Task Force, or its successor entity, in coordination with the Department of Insurance, to develop recommendations for the implementation of an insurance pool or other mechanism for prescribed burn managers that reduces the cost of conducting prescribed fire while maintaining adequate liability protection when conducting prescribed burns. The Budget Act of 2021 appropriated to the Department of Forestry and Fire Protection $20,000,000 to establish a Prescribed Fire Liability Pilot Program, in consultation with the Department of Insurance and the Natural Resources Agency, that creates a prescribed fire claims fund to support coverage for losses from permitted prescribed fires by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities. This bill would delete the provision requiring the task force to develop recommendations for the implementation of an insurance pool or other mechanisms for prescribed burn managers. The bill would require the Department of Forestry and Fire Protection, on or before January 1, 2023, to establish, consistent with the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, as defined, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which the bill would establish. The bill would require that the $20,000,000 appropriated to the department by the Legislature in the Budget Act of 2021, and any other funds appropriated by the Legislature for the above purpose, be deposited into the fund, and would prescribe requirements for use of these moneys, among other things. The bill would designate the Director of General Services to administer the claims fund, and require the director to administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire or cultural burn projects to provide public benefits to the state, as provided. The bill would require the director, on or before April 1, 2023, to develop policies and procedures for the operation and administration of the claims fund, as provided. The bill would require the director to report to the relevant policy and fiscal committees of the Legislature, as specified, and require the Department of Finance, on or before July 1, 2024, to audit the claims fund and also report to the relevant policy and fiscal committee of the Legislature. This bill would declare that it is to take effect immediately as an urgency statute.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Senate May 19, 2022 Amended IN Senate March 10, 2022
Amended IN Senate May 19, 2022
Amended IN Senate March 10, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 926
Introduced by Senator Dodd(Coauthor: Senator Portantino)February 07, 2022
Introduced by Senator Dodd(Coauthor: Senator Portantino)
February 07, 2022
An act to amend the heading of Article 4.4 (commencing with Section 4500) of Chapter 7 of Part 2 of Division 4 of, to add Sections 4501, 4502, and 4504 to, to add and repeal Section 4503 of, and to repeal and add Section 4500 to, the Public Resources Code, relating to fire prevention, and declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 926, as amended, Dodd. Prescribed Fire Liability Pilot Program: Prescribed Fire Claims Fund.
Existing law authorizes a person, firm, or corporation, or a group or combination of persons, firms, corporations, or groups, that owns or controls brush-covered land, forest lands, woodland, grassland, shrubland, or any combination thereof within a state responsibility area to apply to the Department of Forestry and Fire Protection for permission to utilize prescribed burning for specified public purposes. Existing law requires, on or before January 1, 2020, the Forest Management Task Force, or its successor entity, in coordination with the Department of Insurance, to develop recommendations for the implementation of an insurance pool or other mechanism for prescribed burn managers that reduces the cost of conducting prescribed fire while maintaining adequate liability protection when conducting prescribed burns. The Budget Act of 2021 appropriated to the Department of Forestry and Fire Protection $20,000,000 to establish a Prescribed Fire Liability Pilot Program, in consultation with the Department of Insurance and the Natural Resources Agency, that creates a prescribed fire claims fund to support coverage for losses from permitted prescribed fires by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities. This bill would delete the provision requiring the task force to develop recommendations for the implementation of an insurance pool or other mechanisms for prescribed burn managers. The bill would require the Department of Forestry and Fire Protection, on or before January 1, 2023, to establish, consistent with the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, as defined, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which the bill would establish. The bill would require that the $20,000,000 appropriated to the department by the Legislature in the Budget Act of 2021, and any other funds appropriated by the Legislature for the above purpose, be deposited into the fund, and would prescribe requirements for use of these moneys, among other things. The bill would designate the Director of General Services to administer the claims fund, and require the director to administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire or cultural burn projects to provide public benefits to the state, as provided. The bill would require the director, on or before April 1, 2023, to develop policies and procedures for the operation and administration of the claims fund, as provided. The bill would require the director to report to the relevant policy and fiscal committees of the Legislature, as specified, and require the Department of Finance, on or before July 1, 2024, to audit the claims fund and also report to the relevant policy and fiscal committee of the Legislature. This bill would declare that it is to take effect immediately as an urgency statute.
Existing law authorizes a person, firm, or corporation, or a group or combination of persons, firms, corporations, or groups, that owns or controls brush-covered land, forest lands, woodland, grassland, shrubland, or any combination thereof within a state responsibility area to apply to the Department of Forestry and Fire Protection for permission to utilize prescribed burning for specified public purposes. Existing law requires, on or before January 1, 2020, the Forest Management Task Force, or its successor entity, in coordination with the Department of Insurance, to develop recommendations for the implementation of an insurance pool or other mechanism for prescribed burn managers that reduces the cost of conducting prescribed fire while maintaining adequate liability protection when conducting prescribed burns.
The Budget Act of 2021 appropriated to the Department of Forestry and Fire Protection $20,000,000 to establish a Prescribed Fire Liability Pilot Program, in consultation with the Department of Insurance and the Natural Resources Agency, that creates a prescribed fire claims fund to support coverage for losses from permitted prescribed fires by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities.
This bill would delete the provision requiring the task force to develop recommendations for the implementation of an insurance pool or other mechanisms for prescribed burn managers. The bill would require the Department of Forestry and Fire Protection, on or before January 1, 2023, to establish, consistent with the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, as defined, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which the bill would establish. The bill would require that the $20,000,000 appropriated to the department by the Legislature in the Budget Act of 2021, and any other funds appropriated by the Legislature for the above purpose, be deposited into the fund, and would prescribe requirements for use of these moneys, among other things. The bill would designate the Director of General Services to administer the claims fund, and require the director to administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire or cultural burn projects to provide public benefits to the state, as provided. The bill would require the director, on or before April 1, 2023, to develop policies and procedures for the operation and administration of the claims fund, as provided. The bill would require the director to report to the relevant policy and fiscal committees of the Legislature, as specified, and require the Department of Finance, on or before July 1, 2024, to audit the claims fund and also report to the relevant policy and fiscal committee of the Legislature.
This bill would declare that it is to take effect immediately as an urgency statute.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The heading of Article 4.4 (commencing with Section 4500) of Chapter 7 of Part 2 of Division 4 of the Public Resources Code is amended to read: Article 4.4. Prescribed Fire Claims FundSEC. 2. Section 4500 of the Public Resources Code is repealed.SEC. 3. Section 4500 is added to the Public Resources Code, to read:4500. For purposes of this article, the following terms have the following meanings:(a) Claims fund means the Prescribed Fire Claims Fund established pursuant to Section 4501.(b) Cultural burn has the same meaning as set forth in Section 4002.4.(c) Cultural fire practitioner has the same meaning as set forth in Section 4002.6.(d) (1) Eligible claimant means a person who meets all of the necessary qualifications established in the policies and procedures developed by the Director of General Services pursuant to subdivision (d) of Section 4501, whose prescribed fire or cultural burn project furthers the purposes outlined in subdivision (c) of Section 4501, and who is either of the following:(A) An individual, organization, or Native American tribe, including a cultural fire practitioner, that supervises, plans, or executes a prescribed fire or cultural burn project.(B) A landowner who owns the property where a prescribed fire or cultural burn project takes place.SEC. 4. Section 4501 is added to the Public Resources Code, to read:4501. (a) (1) On or before January 1, 2023, the department, in consultation with the Department of Insurance, the Director of General Services, and the Natural Resources Agency, shall establish, consistent with Item 3540-102-0001 of the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which is hereby established in the State Treasury.(2) (A) The following moneys shall be deposited in the claims fund:(i) (I) Twenty million dollars ($20,000,000) appropriated to the department by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021.(II) Notwithstanding any other law, the amount appropriated by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021 shall be available for encumbrance or expenditure until June 30, 2023, and for liquidation until June 30, 2025.(ii) Any other funds appropriated by the Legislature for purposes of this article. (iii) Any other funds from any source that are provided for purposes of this article.(B) Any moneys in the claims fund that have not been appropriated by the Legislature shall be available upon appropriation by the Legislature. (C) Notwithstanding any other law, moneys in the claims fund shall be encumbered once an eligible claimant may file a claim against the claims fund in accordance with the policies and procedures developed by the Director of General Services pursuant to subdivision (d).(3) The moneys in the claims fund shall be used for both of the following:(A) To support coverage for losses from prescribed fire and cultural burn projects consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(B) The actual and reasonable costs incurred for administration of the fund, not to exceed five 5 percent of the total amount appropriated by the Legislature.(b) The Director of General Services shall administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire and cultural burn projects to provide public benefits to the state consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(c) The claims fund shall cover eligible claims for damages and losses associated with prescribed fire and cultural burn projects undertaken in natural vegetation for cultural or ecological benefit or for hazardous fuels reduction purposes.(d) (1) On or before April 1, 2023, the Director of General Services, with the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, shall develop policies and procedures for the operation and administration of the claims fund, including, but not limited to, eligible claims and events, coverage limits, minimum amounts eligible for claims, and categories of losses that are eligible for coverage or that are excluded from coverage. The policies and procedures shall, at a minimum, do all of the following following:(A) Exclude from coverage damages that are the result of intentional violations of laws or established policies and procedures applicable to prescribed fire and cultural burn projects. (B) Require the Director of General Services to verify a claim, prior to payment from the claims fund.(C) Authorize the Director of General Services to negotiate with an eligible claimant to settle a claim, and require the Director of General Services to pay from the claims fund the costs of any claims settlement process.(D) Establish an upper limit, not to exceed two-million two million dollars ($2,000,000), and a lower limit for payments of claims or coverage per event. (E) Establish an application process for eligible claimants to file a claim against the claims fund that shall require, at a minimum, all of the following:(i) That an eligible claimant demonstrate past experience successfully completing a prescribed fire or cultural burn project. Nothing in this clause shall be used to prohibit a prescribed fire or cultural burn project from including a training component.(ii) That the prescribed fire or cultural burn project for which a claim is being made complies with, as necessary, both of the following:(I) All applicable state laws and regulations.(II) All permits required by state law or regulation for the prescribed fire or cultural burn project.(iii) That a prescribed fire or cultural burn project for which a claim is being made received permission from the landowner of the property where the prescribed fire or cultural burn project occurred or will occur. (iv) A specified period during which an eligible claimant is required to make a claim before needing to reapply.(F) Establish a process for notifying eligible claimants when the claims fund is no longer able to support new claims based on a threshold established by the Director of General Services.(G) Establish the maximum number of prescribed fire or cultural burn projects for which the claims fund can cover claims at one time. (H) Establish a process for reserving capacity within the claims fund for a specified period to maximize participation of eligible claimants and the public benefits of the claims fund. The process shall facilitate the expeditious shifting of claims-paying capacity once a prescribed fire or cultural burn project has been completed and evaluated for damages.(2) The Director of General Services may, subject to the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, modify the policies and procedures developed pursuant to paragraph (1) to improve the operation of the claims fund.(3) The policies and procedures developed by the Director of General Services pursuant to paragraph (1) or modified by the Director of General Services pursuant to paragraph (2) shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).(e) The Director of General Services shall notify the Governor and relevant policy and fiscal committees of the Legislature if, at any time, in the opinion of the Director of General Services, the size of the claims fund limits the amount of claims coverage that can be provided to otherwise eligible claimants.(f) A person engaging with a Native American tribe, tribal organization, or cultural fire practitioner pursuant to this article shall respect tribal sovereignty, customs, and culture.SEC. 5. Section 4502 is added to the Public Resources Code, to read:4502. The Director of General Services may exercise all of the following powers to administer the claims fund:(a) Access and review relevant records at the department, the State Air Resources Board, and local air pollution control and air quality management districts to confirm an eligible claimants compliance with applicable permits to determine eligibility of the claimant for the claims fund.(b) Enter into contracts with third parties necessary to carry out the directors duties pursuant to this article.(c) Determine the eligibility of claimants in accordance with the policies and procedures developed pursuant to subdivision (d) of Section 4501.(d) Make withdrawals from and deposits to the claims fund necessary to administer the claims fund pursuant to this article.(e) Any other actions necessary to carry out the purposes of this article.SEC. 6. Section 4503 is added to the Public Resources Code, to read:4503. (a) On or before January 1, 2024, and annually thereafter, the Director of General Services shall prepare and submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following:(1) A detailed description of all activities related to the claims fund.(2) A summary and description of acres burned by eligible claimants.(3) Recommendations for and modifications to claims fund policies and procedures.(b) On or before July 1, 2024, the Department of Finance shall audit the claims fund and provide a report to the relevant policy and fiscal committees of the Legislature.(c) On or before July 1, 2026, the Director of General Services, in consultation with the Insurance Commissioner and the Director of Forestry and Fire Protection, shall report to the relevant policy and fiscal committees of the Legislature on all of the following:(1) Whether the claims fund should continue.(2) Recommendations for changes to claims fund policies and procedures.(3) Whether the Director of General Services should continue to administer the claims fund.(d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.SEC. 7. Section 4504 is added to the Public Resources Code, to read:4504. Nothing in this article shall be construed as requiring participation in the claims fund as an additional requirement for conducting a prescribed fire or cultural burn project. Notwithstanding any other law, the decision not to participate in the claims fund shall not be used to restrict a prescribed fire or cultural burn project.SEC. 8. 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 protect life and property, and increase the number of controlled burns in high wildfire threat areas, by immediately operationalizing the Prescribed Fire Claims Fund to support coverage for losses from prescribed fires and cultural burns by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities, it is necessary for this act to take effect immediately immediately.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The heading of Article 4.4 (commencing with Section 4500) of Chapter 7 of Part 2 of Division 4 of the Public Resources Code is amended to read: Article 4.4. Prescribed Fire Claims Fund
SECTION 1. The heading of Article 4.4 (commencing with Section 4500) of Chapter 7 of Part 2 of Division 4 of the Public Resources Code is amended to read:
### SECTION 1.
Article 4.4. Prescribed Fire Claims Fund
Article 4.4. Prescribed Fire Claims Fund
Article 4.4. Prescribed Fire Claims Fund
Article 4.4. Prescribed Fire Claims Fund
SEC. 2. Section 4500 of the Public Resources Code is repealed.
SEC. 2. Section 4500 of the Public Resources Code is repealed.
### SEC. 2.
SEC. 3. Section 4500 is added to the Public Resources Code, to read:4500. For purposes of this article, the following terms have the following meanings:(a) Claims fund means the Prescribed Fire Claims Fund established pursuant to Section 4501.(b) Cultural burn has the same meaning as set forth in Section 4002.4.(c) Cultural fire practitioner has the same meaning as set forth in Section 4002.6.(d) (1) Eligible claimant means a person who meets all of the necessary qualifications established in the policies and procedures developed by the Director of General Services pursuant to subdivision (d) of Section 4501, whose prescribed fire or cultural burn project furthers the purposes outlined in subdivision (c) of Section 4501, and who is either of the following:(A) An individual, organization, or Native American tribe, including a cultural fire practitioner, that supervises, plans, or executes a prescribed fire or cultural burn project.(B) A landowner who owns the property where a prescribed fire or cultural burn project takes place.
SEC. 3. Section 4500 is added to the Public Resources Code, to read:
### SEC. 3.
4500. For purposes of this article, the following terms have the following meanings:(a) Claims fund means the Prescribed Fire Claims Fund established pursuant to Section 4501.(b) Cultural burn has the same meaning as set forth in Section 4002.4.(c) Cultural fire practitioner has the same meaning as set forth in Section 4002.6.(d) (1) Eligible claimant means a person who meets all of the necessary qualifications established in the policies and procedures developed by the Director of General Services pursuant to subdivision (d) of Section 4501, whose prescribed fire or cultural burn project furthers the purposes outlined in subdivision (c) of Section 4501, and who is either of the following:(A) An individual, organization, or Native American tribe, including a cultural fire practitioner, that supervises, plans, or executes a prescribed fire or cultural burn project.(B) A landowner who owns the property where a prescribed fire or cultural burn project takes place.
4500. For purposes of this article, the following terms have the following meanings:(a) Claims fund means the Prescribed Fire Claims Fund established pursuant to Section 4501.(b) Cultural burn has the same meaning as set forth in Section 4002.4.(c) Cultural fire practitioner has the same meaning as set forth in Section 4002.6.(d) (1) Eligible claimant means a person who meets all of the necessary qualifications established in the policies and procedures developed by the Director of General Services pursuant to subdivision (d) of Section 4501, whose prescribed fire or cultural burn project furthers the purposes outlined in subdivision (c) of Section 4501, and who is either of the following:(A) An individual, organization, or Native American tribe, including a cultural fire practitioner, that supervises, plans, or executes a prescribed fire or cultural burn project.(B) A landowner who owns the property where a prescribed fire or cultural burn project takes place.
4500. For purposes of this article, the following terms have the following meanings:(a) Claims fund means the Prescribed Fire Claims Fund established pursuant to Section 4501.(b) Cultural burn has the same meaning as set forth in Section 4002.4.(c) Cultural fire practitioner has the same meaning as set forth in Section 4002.6.(d) (1) Eligible claimant means a person who meets all of the necessary qualifications established in the policies and procedures developed by the Director of General Services pursuant to subdivision (d) of Section 4501, whose prescribed fire or cultural burn project furthers the purposes outlined in subdivision (c) of Section 4501, and who is either of the following:(A) An individual, organization, or Native American tribe, including a cultural fire practitioner, that supervises, plans, or executes a prescribed fire or cultural burn project.(B) A landowner who owns the property where a prescribed fire or cultural burn project takes place.
4500. For purposes of this article, the following terms have the following meanings:
(a) Claims fund means the Prescribed Fire Claims Fund established pursuant to Section 4501.
(b) Cultural burn has the same meaning as set forth in Section 4002.4.
(c) Cultural fire practitioner has the same meaning as set forth in Section 4002.6.
(d) (1) Eligible claimant means a person who meets all of the necessary qualifications established in the policies and procedures developed by the Director of General Services pursuant to subdivision (d) of Section 4501, whose prescribed fire or cultural burn project furthers the purposes outlined in subdivision (c) of Section 4501, and who is either of the following:
(A) An individual, organization, or Native American tribe, including a cultural fire practitioner, that supervises, plans, or executes a prescribed fire or cultural burn project.
(B) A landowner who owns the property where a prescribed fire or cultural burn project takes place.
SEC. 4. Section 4501 is added to the Public Resources Code, to read:4501. (a) (1) On or before January 1, 2023, the department, in consultation with the Department of Insurance, the Director of General Services, and the Natural Resources Agency, shall establish, consistent with Item 3540-102-0001 of the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which is hereby established in the State Treasury.(2) (A) The following moneys shall be deposited in the claims fund:(i) (I) Twenty million dollars ($20,000,000) appropriated to the department by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021.(II) Notwithstanding any other law, the amount appropriated by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021 shall be available for encumbrance or expenditure until June 30, 2023, and for liquidation until June 30, 2025.(ii) Any other funds appropriated by the Legislature for purposes of this article. (iii) Any other funds from any source that are provided for purposes of this article.(B) Any moneys in the claims fund that have not been appropriated by the Legislature shall be available upon appropriation by the Legislature. (C) Notwithstanding any other law, moneys in the claims fund shall be encumbered once an eligible claimant may file a claim against the claims fund in accordance with the policies and procedures developed by the Director of General Services pursuant to subdivision (d).(3) The moneys in the claims fund shall be used for both of the following:(A) To support coverage for losses from prescribed fire and cultural burn projects consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(B) The actual and reasonable costs incurred for administration of the fund, not to exceed five 5 percent of the total amount appropriated by the Legislature.(b) The Director of General Services shall administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire and cultural burn projects to provide public benefits to the state consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(c) The claims fund shall cover eligible claims for damages and losses associated with prescribed fire and cultural burn projects undertaken in natural vegetation for cultural or ecological benefit or for hazardous fuels reduction purposes.(d) (1) On or before April 1, 2023, the Director of General Services, with the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, shall develop policies and procedures for the operation and administration of the claims fund, including, but not limited to, eligible claims and events, coverage limits, minimum amounts eligible for claims, and categories of losses that are eligible for coverage or that are excluded from coverage. The policies and procedures shall, at a minimum, do all of the following following:(A) Exclude from coverage damages that are the result of intentional violations of laws or established policies and procedures applicable to prescribed fire and cultural burn projects. (B) Require the Director of General Services to verify a claim, prior to payment from the claims fund.(C) Authorize the Director of General Services to negotiate with an eligible claimant to settle a claim, and require the Director of General Services to pay from the claims fund the costs of any claims settlement process.(D) Establish an upper limit, not to exceed two-million two million dollars ($2,000,000), and a lower limit for payments of claims or coverage per event. (E) Establish an application process for eligible claimants to file a claim against the claims fund that shall require, at a minimum, all of the following:(i) That an eligible claimant demonstrate past experience successfully completing a prescribed fire or cultural burn project. Nothing in this clause shall be used to prohibit a prescribed fire or cultural burn project from including a training component.(ii) That the prescribed fire or cultural burn project for which a claim is being made complies with, as necessary, both of the following:(I) All applicable state laws and regulations.(II) All permits required by state law or regulation for the prescribed fire or cultural burn project.(iii) That a prescribed fire or cultural burn project for which a claim is being made received permission from the landowner of the property where the prescribed fire or cultural burn project occurred or will occur. (iv) A specified period during which an eligible claimant is required to make a claim before needing to reapply.(F) Establish a process for notifying eligible claimants when the claims fund is no longer able to support new claims based on a threshold established by the Director of General Services.(G) Establish the maximum number of prescribed fire or cultural burn projects for which the claims fund can cover claims at one time. (H) Establish a process for reserving capacity within the claims fund for a specified period to maximize participation of eligible claimants and the public benefits of the claims fund. The process shall facilitate the expeditious shifting of claims-paying capacity once a prescribed fire or cultural burn project has been completed and evaluated for damages.(2) The Director of General Services may, subject to the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, modify the policies and procedures developed pursuant to paragraph (1) to improve the operation of the claims fund.(3) The policies and procedures developed by the Director of General Services pursuant to paragraph (1) or modified by the Director of General Services pursuant to paragraph (2) shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).(e) The Director of General Services shall notify the Governor and relevant policy and fiscal committees of the Legislature if, at any time, in the opinion of the Director of General Services, the size of the claims fund limits the amount of claims coverage that can be provided to otherwise eligible claimants.(f) A person engaging with a Native American tribe, tribal organization, or cultural fire practitioner pursuant to this article shall respect tribal sovereignty, customs, and culture.
SEC. 4. Section 4501 is added to the Public Resources Code, to read:
### SEC. 4.
4501. (a) (1) On or before January 1, 2023, the department, in consultation with the Department of Insurance, the Director of General Services, and the Natural Resources Agency, shall establish, consistent with Item 3540-102-0001 of the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which is hereby established in the State Treasury.(2) (A) The following moneys shall be deposited in the claims fund:(i) (I) Twenty million dollars ($20,000,000) appropriated to the department by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021.(II) Notwithstanding any other law, the amount appropriated by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021 shall be available for encumbrance or expenditure until June 30, 2023, and for liquidation until June 30, 2025.(ii) Any other funds appropriated by the Legislature for purposes of this article. (iii) Any other funds from any source that are provided for purposes of this article.(B) Any moneys in the claims fund that have not been appropriated by the Legislature shall be available upon appropriation by the Legislature. (C) Notwithstanding any other law, moneys in the claims fund shall be encumbered once an eligible claimant may file a claim against the claims fund in accordance with the policies and procedures developed by the Director of General Services pursuant to subdivision (d).(3) The moneys in the claims fund shall be used for both of the following:(A) To support coverage for losses from prescribed fire and cultural burn projects consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(B) The actual and reasonable costs incurred for administration of the fund, not to exceed five 5 percent of the total amount appropriated by the Legislature.(b) The Director of General Services shall administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire and cultural burn projects to provide public benefits to the state consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(c) The claims fund shall cover eligible claims for damages and losses associated with prescribed fire and cultural burn projects undertaken in natural vegetation for cultural or ecological benefit or for hazardous fuels reduction purposes.(d) (1) On or before April 1, 2023, the Director of General Services, with the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, shall develop policies and procedures for the operation and administration of the claims fund, including, but not limited to, eligible claims and events, coverage limits, minimum amounts eligible for claims, and categories of losses that are eligible for coverage or that are excluded from coverage. The policies and procedures shall, at a minimum, do all of the following following:(A) Exclude from coverage damages that are the result of intentional violations of laws or established policies and procedures applicable to prescribed fire and cultural burn projects. (B) Require the Director of General Services to verify a claim, prior to payment from the claims fund.(C) Authorize the Director of General Services to negotiate with an eligible claimant to settle a claim, and require the Director of General Services to pay from the claims fund the costs of any claims settlement process.(D) Establish an upper limit, not to exceed two-million two million dollars ($2,000,000), and a lower limit for payments of claims or coverage per event. (E) Establish an application process for eligible claimants to file a claim against the claims fund that shall require, at a minimum, all of the following:(i) That an eligible claimant demonstrate past experience successfully completing a prescribed fire or cultural burn project. Nothing in this clause shall be used to prohibit a prescribed fire or cultural burn project from including a training component.(ii) That the prescribed fire or cultural burn project for which a claim is being made complies with, as necessary, both of the following:(I) All applicable state laws and regulations.(II) All permits required by state law or regulation for the prescribed fire or cultural burn project.(iii) That a prescribed fire or cultural burn project for which a claim is being made received permission from the landowner of the property where the prescribed fire or cultural burn project occurred or will occur. (iv) A specified period during which an eligible claimant is required to make a claim before needing to reapply.(F) Establish a process for notifying eligible claimants when the claims fund is no longer able to support new claims based on a threshold established by the Director of General Services.(G) Establish the maximum number of prescribed fire or cultural burn projects for which the claims fund can cover claims at one time. (H) Establish a process for reserving capacity within the claims fund for a specified period to maximize participation of eligible claimants and the public benefits of the claims fund. The process shall facilitate the expeditious shifting of claims-paying capacity once a prescribed fire or cultural burn project has been completed and evaluated for damages.(2) The Director of General Services may, subject to the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, modify the policies and procedures developed pursuant to paragraph (1) to improve the operation of the claims fund.(3) The policies and procedures developed by the Director of General Services pursuant to paragraph (1) or modified by the Director of General Services pursuant to paragraph (2) shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).(e) The Director of General Services shall notify the Governor and relevant policy and fiscal committees of the Legislature if, at any time, in the opinion of the Director of General Services, the size of the claims fund limits the amount of claims coverage that can be provided to otherwise eligible claimants.(f) A person engaging with a Native American tribe, tribal organization, or cultural fire practitioner pursuant to this article shall respect tribal sovereignty, customs, and culture.
4501. (a) (1) On or before January 1, 2023, the department, in consultation with the Department of Insurance, the Director of General Services, and the Natural Resources Agency, shall establish, consistent with Item 3540-102-0001 of the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which is hereby established in the State Treasury.(2) (A) The following moneys shall be deposited in the claims fund:(i) (I) Twenty million dollars ($20,000,000) appropriated to the department by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021.(II) Notwithstanding any other law, the amount appropriated by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021 shall be available for encumbrance or expenditure until June 30, 2023, and for liquidation until June 30, 2025.(ii) Any other funds appropriated by the Legislature for purposes of this article. (iii) Any other funds from any source that are provided for purposes of this article.(B) Any moneys in the claims fund that have not been appropriated by the Legislature shall be available upon appropriation by the Legislature. (C) Notwithstanding any other law, moneys in the claims fund shall be encumbered once an eligible claimant may file a claim against the claims fund in accordance with the policies and procedures developed by the Director of General Services pursuant to subdivision (d).(3) The moneys in the claims fund shall be used for both of the following:(A) To support coverage for losses from prescribed fire and cultural burn projects consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(B) The actual and reasonable costs incurred for administration of the fund, not to exceed five 5 percent of the total amount appropriated by the Legislature.(b) The Director of General Services shall administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire and cultural burn projects to provide public benefits to the state consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(c) The claims fund shall cover eligible claims for damages and losses associated with prescribed fire and cultural burn projects undertaken in natural vegetation for cultural or ecological benefit or for hazardous fuels reduction purposes.(d) (1) On or before April 1, 2023, the Director of General Services, with the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, shall develop policies and procedures for the operation and administration of the claims fund, including, but not limited to, eligible claims and events, coverage limits, minimum amounts eligible for claims, and categories of losses that are eligible for coverage or that are excluded from coverage. The policies and procedures shall, at a minimum, do all of the following following:(A) Exclude from coverage damages that are the result of intentional violations of laws or established policies and procedures applicable to prescribed fire and cultural burn projects. (B) Require the Director of General Services to verify a claim, prior to payment from the claims fund.(C) Authorize the Director of General Services to negotiate with an eligible claimant to settle a claim, and require the Director of General Services to pay from the claims fund the costs of any claims settlement process.(D) Establish an upper limit, not to exceed two-million two million dollars ($2,000,000), and a lower limit for payments of claims or coverage per event. (E) Establish an application process for eligible claimants to file a claim against the claims fund that shall require, at a minimum, all of the following:(i) That an eligible claimant demonstrate past experience successfully completing a prescribed fire or cultural burn project. Nothing in this clause shall be used to prohibit a prescribed fire or cultural burn project from including a training component.(ii) That the prescribed fire or cultural burn project for which a claim is being made complies with, as necessary, both of the following:(I) All applicable state laws and regulations.(II) All permits required by state law or regulation for the prescribed fire or cultural burn project.(iii) That a prescribed fire or cultural burn project for which a claim is being made received permission from the landowner of the property where the prescribed fire or cultural burn project occurred or will occur. (iv) A specified period during which an eligible claimant is required to make a claim before needing to reapply.(F) Establish a process for notifying eligible claimants when the claims fund is no longer able to support new claims based on a threshold established by the Director of General Services.(G) Establish the maximum number of prescribed fire or cultural burn projects for which the claims fund can cover claims at one time. (H) Establish a process for reserving capacity within the claims fund for a specified period to maximize participation of eligible claimants and the public benefits of the claims fund. The process shall facilitate the expeditious shifting of claims-paying capacity once a prescribed fire or cultural burn project has been completed and evaluated for damages.(2) The Director of General Services may, subject to the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, modify the policies and procedures developed pursuant to paragraph (1) to improve the operation of the claims fund.(3) The policies and procedures developed by the Director of General Services pursuant to paragraph (1) or modified by the Director of General Services pursuant to paragraph (2) shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).(e) The Director of General Services shall notify the Governor and relevant policy and fiscal committees of the Legislature if, at any time, in the opinion of the Director of General Services, the size of the claims fund limits the amount of claims coverage that can be provided to otherwise eligible claimants.(f) A person engaging with a Native American tribe, tribal organization, or cultural fire practitioner pursuant to this article shall respect tribal sovereignty, customs, and culture.
4501. (a) (1) On or before January 1, 2023, the department, in consultation with the Department of Insurance, the Director of General Services, and the Natural Resources Agency, shall establish, consistent with Item 3540-102-0001 of the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which is hereby established in the State Treasury.(2) (A) The following moneys shall be deposited in the claims fund:(i) (I) Twenty million dollars ($20,000,000) appropriated to the department by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021.(II) Notwithstanding any other law, the amount appropriated by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021 shall be available for encumbrance or expenditure until June 30, 2023, and for liquidation until June 30, 2025.(ii) Any other funds appropriated by the Legislature for purposes of this article. (iii) Any other funds from any source that are provided for purposes of this article.(B) Any moneys in the claims fund that have not been appropriated by the Legislature shall be available upon appropriation by the Legislature. (C) Notwithstanding any other law, moneys in the claims fund shall be encumbered once an eligible claimant may file a claim against the claims fund in accordance with the policies and procedures developed by the Director of General Services pursuant to subdivision (d).(3) The moneys in the claims fund shall be used for both of the following:(A) To support coverage for losses from prescribed fire and cultural burn projects consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(B) The actual and reasonable costs incurred for administration of the fund, not to exceed five 5 percent of the total amount appropriated by the Legislature.(b) The Director of General Services shall administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire and cultural burn projects to provide public benefits to the state consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.(c) The claims fund shall cover eligible claims for damages and losses associated with prescribed fire and cultural burn projects undertaken in natural vegetation for cultural or ecological benefit or for hazardous fuels reduction purposes.(d) (1) On or before April 1, 2023, the Director of General Services, with the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, shall develop policies and procedures for the operation and administration of the claims fund, including, but not limited to, eligible claims and events, coverage limits, minimum amounts eligible for claims, and categories of losses that are eligible for coverage or that are excluded from coverage. The policies and procedures shall, at a minimum, do all of the following following:(A) Exclude from coverage damages that are the result of intentional violations of laws or established policies and procedures applicable to prescribed fire and cultural burn projects. (B) Require the Director of General Services to verify a claim, prior to payment from the claims fund.(C) Authorize the Director of General Services to negotiate with an eligible claimant to settle a claim, and require the Director of General Services to pay from the claims fund the costs of any claims settlement process.(D) Establish an upper limit, not to exceed two-million two million dollars ($2,000,000), and a lower limit for payments of claims or coverage per event. (E) Establish an application process for eligible claimants to file a claim against the claims fund that shall require, at a minimum, all of the following:(i) That an eligible claimant demonstrate past experience successfully completing a prescribed fire or cultural burn project. Nothing in this clause shall be used to prohibit a prescribed fire or cultural burn project from including a training component.(ii) That the prescribed fire or cultural burn project for which a claim is being made complies with, as necessary, both of the following:(I) All applicable state laws and regulations.(II) All permits required by state law or regulation for the prescribed fire or cultural burn project.(iii) That a prescribed fire or cultural burn project for which a claim is being made received permission from the landowner of the property where the prescribed fire or cultural burn project occurred or will occur. (iv) A specified period during which an eligible claimant is required to make a claim before needing to reapply.(F) Establish a process for notifying eligible claimants when the claims fund is no longer able to support new claims based on a threshold established by the Director of General Services.(G) Establish the maximum number of prescribed fire or cultural burn projects for which the claims fund can cover claims at one time. (H) Establish a process for reserving capacity within the claims fund for a specified period to maximize participation of eligible claimants and the public benefits of the claims fund. The process shall facilitate the expeditious shifting of claims-paying capacity once a prescribed fire or cultural burn project has been completed and evaluated for damages.(2) The Director of General Services may, subject to the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, modify the policies and procedures developed pursuant to paragraph (1) to improve the operation of the claims fund.(3) The policies and procedures developed by the Director of General Services pursuant to paragraph (1) or modified by the Director of General Services pursuant to paragraph (2) shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).(e) The Director of General Services shall notify the Governor and relevant policy and fiscal committees of the Legislature if, at any time, in the opinion of the Director of General Services, the size of the claims fund limits the amount of claims coverage that can be provided to otherwise eligible claimants.(f) A person engaging with a Native American tribe, tribal organization, or cultural fire practitioner pursuant to this article shall respect tribal sovereignty, customs, and culture.
4501. (a) (1) On or before January 1, 2023, the department, in consultation with the Department of Insurance, the Director of General Services, and the Natural Resources Agency, shall establish, consistent with Item 3540-102-0001 of the Budget Act of 2021, the Prescribed Fire Liability Pilot Program to support coverage for losses from permitted prescribed fires by individuals and nonpublic entities, such as Native American tribes, including cultural fire practitioners, private landowners, and other nongovernmental entities through the Prescribed Fire Claims Fund, which is hereby established in the State Treasury.
(2) (A) The following moneys shall be deposited in the claims fund:
(i) (I) Twenty million dollars ($20,000,000) appropriated to the department by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021.
(II) Notwithstanding any other law, the amount appropriated by the Legislature pursuant to Item 3540-102-0001 of the Budget Act of 2021 shall be available for encumbrance or expenditure until June 30, 2023, and for liquidation until June 30, 2025.
(ii) Any other funds appropriated by the Legislature for purposes of this article.
(iii) Any other funds from any source that are provided for purposes of this article.
(B) Any moneys in the claims fund that have not been appropriated by the Legislature shall be available upon appropriation by the Legislature.
(C) Notwithstanding any other law, moneys in the claims fund shall be encumbered once an eligible claimant may file a claim against the claims fund in accordance with the policies and procedures developed by the Director of General Services pursuant to subdivision (d).
(3) The moneys in the claims fund shall be used for both of the following:
(A) To support coverage for losses from prescribed fire and cultural burn projects consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.
(B) The actual and reasonable costs incurred for administration of the fund, not to exceed five 5 percent of the total amount appropriated by the Legislature.
(b) The Director of General Services shall administer and oversee the claims fund to assist in increasing the pace and scale of prescribed fire and cultural burn projects to provide public benefits to the state consistent with Item 3540-102-0001 of the Budget Act of 2021 and this article.
(c) The claims fund shall cover eligible claims for damages and losses associated with prescribed fire and cultural burn projects undertaken in natural vegetation for cultural or ecological benefit or for hazardous fuels reduction purposes.
(d) (1) On or before April 1, 2023, the Director of General Services, with the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, shall develop policies and procedures for the operation and administration of the claims fund, including, but not limited to, eligible claims and events, coverage limits, minimum amounts eligible for claims, and categories of losses that are eligible for coverage or that are excluded from coverage. The policies and procedures shall, at a minimum, do all of the following following:
(A) Exclude from coverage damages that are the result of intentional violations of laws or established policies and procedures applicable to prescribed fire and cultural burn projects.
(B) Require the Director of General Services to verify a claim, prior to payment from the claims fund.
(C) Authorize the Director of General Services to negotiate with an eligible claimant to settle a claim, and require the Director of General Services to pay from the claims fund the costs of any claims settlement process.
(D) Establish an upper limit, not to exceed two-million two million dollars ($2,000,000), and a lower limit for payments of claims or coverage per event.
(E) Establish an application process for eligible claimants to file a claim against the claims fund that shall require, at a minimum, all of the following:
(i) That an eligible claimant demonstrate past experience successfully completing a prescribed fire or cultural burn project. Nothing in this clause shall be used to prohibit a prescribed fire or cultural burn project from including a training component.
(ii) That the prescribed fire or cultural burn project for which a claim is being made complies with, as necessary, both of the following:
(I) All applicable state laws and regulations.
(II) All permits required by state law or regulation for the prescribed fire or cultural burn project.
(iii) That a prescribed fire or cultural burn project for which a claim is being made received permission from the landowner of the property where the prescribed fire or cultural burn project occurred or will occur.
(iv) A specified period during which an eligible claimant is required to make a claim before needing to reapply.
(F) Establish a process for notifying eligible claimants when the claims fund is no longer able to support new claims based on a threshold established by the Director of General Services.
(G) Establish the maximum number of prescribed fire or cultural burn projects for which the claims fund can cover claims at one time.
(H) Establish a process for reserving capacity within the claims fund for a specified period to maximize participation of eligible claimants and the public benefits of the claims fund. The process shall facilitate the expeditious shifting of claims-paying capacity once a prescribed fire or cultural burn project has been completed and evaluated for damages.
(2) The Director of General Services may, subject to the concurrence of the Insurance Commissioner and the Director of Forestry and Fire Protection, modify the policies and procedures developed pursuant to paragraph (1) to improve the operation of the claims fund.
(3) The policies and procedures developed by the Director of General Services pursuant to paragraph (1) or modified by the Director of General Services pursuant to paragraph (2) shall be exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2).
(e) The Director of General Services shall notify the Governor and relevant policy and fiscal committees of the Legislature if, at any time, in the opinion of the Director of General Services, the size of the claims fund limits the amount of claims coverage that can be provided to otherwise eligible claimants.
(f) A person engaging with a Native American tribe, tribal organization, or cultural fire practitioner pursuant to this article shall respect tribal sovereignty, customs, and culture.
SEC. 5. Section 4502 is added to the Public Resources Code, to read:4502. The Director of General Services may exercise all of the following powers to administer the claims fund:(a) Access and review relevant records at the department, the State Air Resources Board, and local air pollution control and air quality management districts to confirm an eligible claimants compliance with applicable permits to determine eligibility of the claimant for the claims fund.(b) Enter into contracts with third parties necessary to carry out the directors duties pursuant to this article.(c) Determine the eligibility of claimants in accordance with the policies and procedures developed pursuant to subdivision (d) of Section 4501.(d) Make withdrawals from and deposits to the claims fund necessary to administer the claims fund pursuant to this article.(e) Any other actions necessary to carry out the purposes of this article.
SEC. 5. Section 4502 is added to the Public Resources Code, to read:
### SEC. 5.
4502. The Director of General Services may exercise all of the following powers to administer the claims fund:(a) Access and review relevant records at the department, the State Air Resources Board, and local air pollution control and air quality management districts to confirm an eligible claimants compliance with applicable permits to determine eligibility of the claimant for the claims fund.(b) Enter into contracts with third parties necessary to carry out the directors duties pursuant to this article.(c) Determine the eligibility of claimants in accordance with the policies and procedures developed pursuant to subdivision (d) of Section 4501.(d) Make withdrawals from and deposits to the claims fund necessary to administer the claims fund pursuant to this article.(e) Any other actions necessary to carry out the purposes of this article.
4502. The Director of General Services may exercise all of the following powers to administer the claims fund:(a) Access and review relevant records at the department, the State Air Resources Board, and local air pollution control and air quality management districts to confirm an eligible claimants compliance with applicable permits to determine eligibility of the claimant for the claims fund.(b) Enter into contracts with third parties necessary to carry out the directors duties pursuant to this article.(c) Determine the eligibility of claimants in accordance with the policies and procedures developed pursuant to subdivision (d) of Section 4501.(d) Make withdrawals from and deposits to the claims fund necessary to administer the claims fund pursuant to this article.(e) Any other actions necessary to carry out the purposes of this article.
4502. The Director of General Services may exercise all of the following powers to administer the claims fund:(a) Access and review relevant records at the department, the State Air Resources Board, and local air pollution control and air quality management districts to confirm an eligible claimants compliance with applicable permits to determine eligibility of the claimant for the claims fund.(b) Enter into contracts with third parties necessary to carry out the directors duties pursuant to this article.(c) Determine the eligibility of claimants in accordance with the policies and procedures developed pursuant to subdivision (d) of Section 4501.(d) Make withdrawals from and deposits to the claims fund necessary to administer the claims fund pursuant to this article.(e) Any other actions necessary to carry out the purposes of this article.
4502. The Director of General Services may exercise all of the following powers to administer the claims fund:
(a) Access and review relevant records at the department, the State Air Resources Board, and local air pollution control and air quality management districts to confirm an eligible claimants compliance with applicable permits to determine eligibility of the claimant for the claims fund.
(b) Enter into contracts with third parties necessary to carry out the directors duties pursuant to this article.
(c) Determine the eligibility of claimants in accordance with the policies and procedures developed pursuant to subdivision (d) of Section 4501.
(d) Make withdrawals from and deposits to the claims fund necessary to administer the claims fund pursuant to this article.
(e) Any other actions necessary to carry out the purposes of this article.
SEC. 6. Section 4503 is added to the Public Resources Code, to read:4503. (a) On or before January 1, 2024, and annually thereafter, the Director of General Services shall prepare and submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following:(1) A detailed description of all activities related to the claims fund.(2) A summary and description of acres burned by eligible claimants.(3) Recommendations for and modifications to claims fund policies and procedures.(b) On or before July 1, 2024, the Department of Finance shall audit the claims fund and provide a report to the relevant policy and fiscal committees of the Legislature.(c) On or before July 1, 2026, the Director of General Services, in consultation with the Insurance Commissioner and the Director of Forestry and Fire Protection, shall report to the relevant policy and fiscal committees of the Legislature on all of the following:(1) Whether the claims fund should continue.(2) Recommendations for changes to claims fund policies and procedures.(3) Whether the Director of General Services should continue to administer the claims fund.(d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.
SEC. 6. Section 4503 is added to the Public Resources Code, to read:
### SEC. 6.
4503. (a) On or before January 1, 2024, and annually thereafter, the Director of General Services shall prepare and submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following:(1) A detailed description of all activities related to the claims fund.(2) A summary and description of acres burned by eligible claimants.(3) Recommendations for and modifications to claims fund policies and procedures.(b) On or before July 1, 2024, the Department of Finance shall audit the claims fund and provide a report to the relevant policy and fiscal committees of the Legislature.(c) On or before July 1, 2026, the Director of General Services, in consultation with the Insurance Commissioner and the Director of Forestry and Fire Protection, shall report to the relevant policy and fiscal committees of the Legislature on all of the following:(1) Whether the claims fund should continue.(2) Recommendations for changes to claims fund policies and procedures.(3) Whether the Director of General Services should continue to administer the claims fund.(d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.
4503. (a) On or before January 1, 2024, and annually thereafter, the Director of General Services shall prepare and submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following:(1) A detailed description of all activities related to the claims fund.(2) A summary and description of acres burned by eligible claimants.(3) Recommendations for and modifications to claims fund policies and procedures.(b) On or before July 1, 2024, the Department of Finance shall audit the claims fund and provide a report to the relevant policy and fiscal committees of the Legislature.(c) On or before July 1, 2026, the Director of General Services, in consultation with the Insurance Commissioner and the Director of Forestry and Fire Protection, shall report to the relevant policy and fiscal committees of the Legislature on all of the following:(1) Whether the claims fund should continue.(2) Recommendations for changes to claims fund policies and procedures.(3) Whether the Director of General Services should continue to administer the claims fund.(d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.
4503. (a) On or before January 1, 2024, and annually thereafter, the Director of General Services shall prepare and submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following:(1) A detailed description of all activities related to the claims fund.(2) A summary and description of acres burned by eligible claimants.(3) Recommendations for and modifications to claims fund policies and procedures.(b) On or before July 1, 2024, the Department of Finance shall audit the claims fund and provide a report to the relevant policy and fiscal committees of the Legislature.(c) On or before July 1, 2026, the Director of General Services, in consultation with the Insurance Commissioner and the Director of Forestry and Fire Protection, shall report to the relevant policy and fiscal committees of the Legislature on all of the following:(1) Whether the claims fund should continue.(2) Recommendations for changes to claims fund policies and procedures.(3) Whether the Director of General Services should continue to administer the claims fund.(d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.
4503. (a) On or before January 1, 2024, and annually thereafter, the Director of General Services shall prepare and submit a report to the relevant policy and fiscal committees of the Legislature that includes all of the following:
(1) A detailed description of all activities related to the claims fund.
(2) A summary and description of acres burned by eligible claimants.
(3) Recommendations for and modifications to claims fund policies and procedures.
(b) On or before July 1, 2024, the Department of Finance shall audit the claims fund and provide a report to the relevant policy and fiscal committees of the Legislature.
(c) On or before July 1, 2026, the Director of General Services, in consultation with the Insurance Commissioner and the Director of Forestry and Fire Protection, shall report to the relevant policy and fiscal committees of the Legislature on all of the following:
(1) Whether the claims fund should continue.
(2) Recommendations for changes to claims fund policies and procedures.
(3) Whether the Director of General Services should continue to administer the claims fund.
(d) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2028.
SEC. 7. Section 4504 is added to the Public Resources Code, to read:4504. Nothing in this article shall be construed as requiring participation in the claims fund as an additional requirement for conducting a prescribed fire or cultural burn project. Notwithstanding any other law, the decision not to participate in the claims fund shall not be used to restrict a prescribed fire or cultural burn project.
SEC. 7. Section 4504 is added to the Public Resources Code, to read:
### SEC. 7.
4504. Nothing in this article shall be construed as requiring participation in the claims fund as an additional requirement for conducting a prescribed fire or cultural burn project. Notwithstanding any other law, the decision not to participate in the claims fund shall not be used to restrict a prescribed fire or cultural burn project.
4504. Nothing in this article shall be construed as requiring participation in the claims fund as an additional requirement for conducting a prescribed fire or cultural burn project. Notwithstanding any other law, the decision not to participate in the claims fund shall not be used to restrict a prescribed fire or cultural burn project.
4504. Nothing in this article shall be construed as requiring participation in the claims fund as an additional requirement for conducting a prescribed fire or cultural burn project. Notwithstanding any other law, the decision not to participate in the claims fund shall not be used to restrict a prescribed fire or cultural burn project.
4504. Nothing in this article shall be construed as requiring participation in the claims fund as an additional requirement for conducting a prescribed fire or cultural burn project. Notwithstanding any other law, the decision not to participate in the claims fund shall not be used to restrict a prescribed fire or cultural burn project.
SEC. 8. 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 protect life and property, and increase the number of controlled burns in high wildfire threat areas, by immediately operationalizing the Prescribed Fire Claims Fund to support coverage for losses from prescribed fires and cultural burns by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities, it is necessary for this act to take effect immediately immediately.
SEC. 8. 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 protect life and property, and increase the number of controlled burns in high wildfire threat areas, by immediately operationalizing the Prescribed Fire Claims Fund to support coverage for losses from prescribed fires and cultural burns by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities, it is necessary for this act to take effect immediately immediately.
SEC. 8. 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:
### SEC. 8.
In order to protect life and property, and increase the number of controlled burns in high wildfire threat areas, by immediately operationalizing the Prescribed Fire Claims Fund to support coverage for losses from prescribed fires and cultural burns by nonpublic entities, such as Native American tribes, private landowners, and other nongovernmental entities, it is necessary for this act to take effect immediately immediately.