| 1 | 1 | | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 888Introduced by Assembly Member CalderonFebruary 19, 2025 An act to add Section 2033 to the Insurance Code, relating to insurance, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 888, as introduced, Calderon. California Safe Homes grant program. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties. Existing law directs the department and commissioner to administer various grant programs that, among other things, defray property retrofitting costs. Existing law requires an insurer doing business in this state to pay an annual tax based on the amount of gross premiums the insurer received during that year.This bill would establish the California Safe Homes grant program to be developed by the department to reduce local and statewide wildfire losses, among other things. The bill would require the department to prioritize specified needs when awarding grant funds, and would require eligible program applicants, which would include individuals, cities, counties, and special districts, to meet specified criteria. The bill would establish the Sustainable Insurance Account within the Insurance Fund, which would be continuously appropriated to fund the program. The bill would require 40% of the amount of the gross premiums tax collected from property and casualty insurance above the amount collected from those insurers in 2023 to be deposited into the account. By depositing general fund moneys into a continuously appropriated account, the bill would make an appropriation. The bill would require the department to collect specified information about the performance of the program and, on or before January 1, 2027, and every 2 years thereafter, to publish a performance report that would be posted to its internet website and submitted to the Legislature.Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Since 2006, the state has funded and undertaken four comprehensive climate change assessments designed to assess the impacts and risks from climate change. In the most recent, Californias Fourth Climate Change Assessment identified that if greenhouse gas emissions continue to increase, the frequency of extreme wildfires will increase.(b) Climate change and development into wildland areas has increased the frequency and severity of wildfires in California, posing increased risks to lives and property.(c) The Insurance Commissioner promulgated the first wildfire safety regulatory incentives, known as Safer from Wildfires, in October 2022.(d) Home hardening and community mitigation actions, like those in the Safer from Wildfires regulations, are important to reduce the risk of loss from wildfires, and, consequently, to improve the insurability of communities in areas of the state with increased wildfire risk.(e) Multiple state governments have successfully used grant programs to reduce local risk to structure losses and build a culture of resilience among contractors, building codes, and homeowner actions.(f) Home hardening is essential to community risk mitigation and future insurability in communities that face the threats of wildfires.(g) Communitywide implementation of structure hardening and forest and watershed management are critical to long-term mitigation of insured losses.SEC. 2. Section 2033 is added to the Insurance Code, immediately following Section 2032, to read:2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals:(1) Reducing local and statewide wildfire losses.(2) Improving insurability and resilience of vulnerable communities.(3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the departments rules.(b) The Sustainable Insurance Account is hereby established within the Insurance Fund.(1) The Sustainable Insurance Account may receive moneys from the insurance premium tax pursuant to paragraph (2) and from appropriations established by the federal government.(2) If the amount of the annual tax collected in a given year from property and casualty insurers pursuant to Section 28 of Article XIII of the California Constitution exceeds the amount of that tax that was collected from property and casualty insurers in 2023, 40 percent of the amount of that tax collected above the 2023 threshold shall be deposited into the Sustainable Insurance Account.(3) Notwithstanding Section 13340 of the Government Code, moneys in the Sustainable Insurance Account shall be continuously appropriated to fund the California Safe Homes grant program, without regard to fiscal years.(c) The department may contract with a third party to assist with program administration.(d) When awarding grant funds under the program, the department shall prioritize the following, in descending order:(1) The replacement of roofs to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities:(A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses.(B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations.(C) Anticipated benefit to insurance policyholders.(e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows:(1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met:(A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association.(B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection.(C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development.(2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance.(f) The department shall collect information to account for the performance of the program over time, including both of the following:(1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home.(2) Regional information on the geographic distribution of grant funding.(g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the departments internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 888Introduced by Assembly Member CalderonFebruary 19, 2025 An act to add Section 2033 to the Insurance Code, relating to insurance, and making an appropriation therefor.LEGISLATIVE COUNSEL'S DIGESTAB 888, as introduced, Calderon. California Safe Homes grant program. Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties. Existing law directs the department and commissioner to administer various grant programs that, among other things, defray property retrofitting costs. Existing law requires an insurer doing business in this state to pay an annual tax based on the amount of gross premiums the insurer received during that year.This bill would establish the California Safe Homes grant program to be developed by the department to reduce local and statewide wildfire losses, among other things. The bill would require the department to prioritize specified needs when awarding grant funds, and would require eligible program applicants, which would include individuals, cities, counties, and special districts, to meet specified criteria. The bill would establish the Sustainable Insurance Account within the Insurance Fund, which would be continuously appropriated to fund the program. The bill would require 40% of the amount of the gross premiums tax collected from property and casualty insurance above the amount collected from those insurers in 2023 to be deposited into the account. By depositing general fund moneys into a continuously appropriated account, the bill would make an appropriation. The bill would require the department to collect specified information about the performance of the program and, on or before January 1, 2027, and every 2 years thereafter, to publish a performance report that would be posted to its internet website and submitted to the Legislature.Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | |
|---|
| 6 | 6 | | |
|---|
| 7 | 7 | | |
|---|
| 8 | 8 | | |
|---|
| 9 | 9 | | CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION |
|---|
| 10 | 10 | | |
|---|
| 11 | 11 | | Assembly Bill |
|---|
| 12 | 12 | | |
|---|
| 13 | 13 | | No. 888 |
|---|
| 14 | 14 | | |
|---|
| 15 | 15 | | Introduced by Assembly Member CalderonFebruary 19, 2025 |
|---|
| 16 | 16 | | |
|---|
| 17 | 17 | | Introduced by Assembly Member Calderon |
|---|
| 18 | 18 | | February 19, 2025 |
|---|
| 19 | 19 | | |
|---|
| 20 | 20 | | An act to add Section 2033 to the Insurance Code, relating to insurance, and making an appropriation therefor. |
|---|
| 21 | 21 | | |
|---|
| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 23 | 23 | | |
|---|
| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
|---|
| 25 | 25 | | |
|---|
| 26 | 26 | | AB 888, as introduced, Calderon. California Safe Homes grant program. |
|---|
| 27 | 27 | | |
|---|
| 28 | 28 | | Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties. Existing law directs the department and commissioner to administer various grant programs that, among other things, defray property retrofitting costs. Existing law requires an insurer doing business in this state to pay an annual tax based on the amount of gross premiums the insurer received during that year.This bill would establish the California Safe Homes grant program to be developed by the department to reduce local and statewide wildfire losses, among other things. The bill would require the department to prioritize specified needs when awarding grant funds, and would require eligible program applicants, which would include individuals, cities, counties, and special districts, to meet specified criteria. The bill would establish the Sustainable Insurance Account within the Insurance Fund, which would be continuously appropriated to fund the program. The bill would require 40% of the amount of the gross premiums tax collected from property and casualty insurance above the amount collected from those insurers in 2023 to be deposited into the account. By depositing general fund moneys into a continuously appropriated account, the bill would make an appropriation. The bill would require the department to collect specified information about the performance of the program and, on or before January 1, 2027, and every 2 years thereafter, to publish a performance report that would be posted to its internet website and submitted to the Legislature. |
|---|
| 29 | 29 | | |
|---|
| 30 | 30 | | Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the departments powers and duties. Existing law directs the department and commissioner to administer various grant programs that, among other things, defray property retrofitting costs. Existing law requires an insurer doing business in this state to pay an annual tax based on the amount of gross premiums the insurer received during that year. |
|---|
| 31 | 31 | | |
|---|
| 32 | 32 | | This bill would establish the California Safe Homes grant program to be developed by the department to reduce local and statewide wildfire losses, among other things. The bill would require the department to prioritize specified needs when awarding grant funds, and would require eligible program applicants, which would include individuals, cities, counties, and special districts, to meet specified criteria. The bill would establish the Sustainable Insurance Account within the Insurance Fund, which would be continuously appropriated to fund the program. The bill would require 40% of the amount of the gross premiums tax collected from property and casualty insurance above the amount collected from those insurers in 2023 to be deposited into the account. By depositing general fund moneys into a continuously appropriated account, the bill would make an appropriation. The bill would require the department to collect specified information about the performance of the program and, on or before January 1, 2027, and every 2 years thereafter, to publish a performance report that would be posted to its internet website and submitted to the Legislature. |
|---|
| 33 | 33 | | |
|---|
| 34 | 34 | | ## Digest Key |
|---|
| 35 | 35 | | |
|---|
| 36 | 36 | | ## Bill Text |
|---|
| 37 | 37 | | |
|---|
| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Since 2006, the state has funded and undertaken four comprehensive climate change assessments designed to assess the impacts and risks from climate change. In the most recent, Californias Fourth Climate Change Assessment identified that if greenhouse gas emissions continue to increase, the frequency of extreme wildfires will increase.(b) Climate change and development into wildland areas has increased the frequency and severity of wildfires in California, posing increased risks to lives and property.(c) The Insurance Commissioner promulgated the first wildfire safety regulatory incentives, known as Safer from Wildfires, in October 2022.(d) Home hardening and community mitigation actions, like those in the Safer from Wildfires regulations, are important to reduce the risk of loss from wildfires, and, consequently, to improve the insurability of communities in areas of the state with increased wildfire risk.(e) Multiple state governments have successfully used grant programs to reduce local risk to structure losses and build a culture of resilience among contractors, building codes, and homeowner actions.(f) Home hardening is essential to community risk mitigation and future insurability in communities that face the threats of wildfires.(g) Communitywide implementation of structure hardening and forest and watershed management are critical to long-term mitigation of insured losses.SEC. 2. Section 2033 is added to the Insurance Code, immediately following Section 2032, to read:2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals:(1) Reducing local and statewide wildfire losses.(2) Improving insurability and resilience of vulnerable communities.(3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the departments rules.(b) The Sustainable Insurance Account is hereby established within the Insurance Fund.(1) The Sustainable Insurance Account may receive moneys from the insurance premium tax pursuant to paragraph (2) and from appropriations established by the federal government.(2) If the amount of the annual tax collected in a given year from property and casualty insurers pursuant to Section 28 of Article XIII of the California Constitution exceeds the amount of that tax that was collected from property and casualty insurers in 2023, 40 percent of the amount of that tax collected above the 2023 threshold shall be deposited into the Sustainable Insurance Account.(3) Notwithstanding Section 13340 of the Government Code, moneys in the Sustainable Insurance Account shall be continuously appropriated to fund the California Safe Homes grant program, without regard to fiscal years.(c) The department may contract with a third party to assist with program administration.(d) When awarding grant funds under the program, the department shall prioritize the following, in descending order:(1) The replacement of roofs to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities:(A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses.(B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations.(C) Anticipated benefit to insurance policyholders.(e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows:(1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met:(A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association.(B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection.(C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development.(2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance.(f) The department shall collect information to account for the performance of the program over time, including both of the following:(1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home.(2) Regional information on the geographic distribution of grant funding.(g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the departments internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. |
|---|
| 39 | 39 | | |
|---|
| 40 | 40 | | The people of the State of California do enact as follows: |
|---|
| 41 | 41 | | |
|---|
| 42 | 42 | | ## The people of the State of California do enact as follows: |
|---|
| 43 | 43 | | |
|---|
| 44 | 44 | | SECTION 1. The Legislature finds and declares all of the following:(a) Since 2006, the state has funded and undertaken four comprehensive climate change assessments designed to assess the impacts and risks from climate change. In the most recent, Californias Fourth Climate Change Assessment identified that if greenhouse gas emissions continue to increase, the frequency of extreme wildfires will increase.(b) Climate change and development into wildland areas has increased the frequency and severity of wildfires in California, posing increased risks to lives and property.(c) The Insurance Commissioner promulgated the first wildfire safety regulatory incentives, known as Safer from Wildfires, in October 2022.(d) Home hardening and community mitigation actions, like those in the Safer from Wildfires regulations, are important to reduce the risk of loss from wildfires, and, consequently, to improve the insurability of communities in areas of the state with increased wildfire risk.(e) Multiple state governments have successfully used grant programs to reduce local risk to structure losses and build a culture of resilience among contractors, building codes, and homeowner actions.(f) Home hardening is essential to community risk mitigation and future insurability in communities that face the threats of wildfires.(g) Communitywide implementation of structure hardening and forest and watershed management are critical to long-term mitigation of insured losses. |
|---|
| 45 | 45 | | |
|---|
| 46 | 46 | | SECTION 1. The Legislature finds and declares all of the following:(a) Since 2006, the state has funded and undertaken four comprehensive climate change assessments designed to assess the impacts and risks from climate change. In the most recent, Californias Fourth Climate Change Assessment identified that if greenhouse gas emissions continue to increase, the frequency of extreme wildfires will increase.(b) Climate change and development into wildland areas has increased the frequency and severity of wildfires in California, posing increased risks to lives and property.(c) The Insurance Commissioner promulgated the first wildfire safety regulatory incentives, known as Safer from Wildfires, in October 2022.(d) Home hardening and community mitigation actions, like those in the Safer from Wildfires regulations, are important to reduce the risk of loss from wildfires, and, consequently, to improve the insurability of communities in areas of the state with increased wildfire risk.(e) Multiple state governments have successfully used grant programs to reduce local risk to structure losses and build a culture of resilience among contractors, building codes, and homeowner actions.(f) Home hardening is essential to community risk mitigation and future insurability in communities that face the threats of wildfires.(g) Communitywide implementation of structure hardening and forest and watershed management are critical to long-term mitigation of insured losses. |
|---|
| 47 | 47 | | |
|---|
| 48 | 48 | | SECTION 1. The Legislature finds and declares all of the following: |
|---|
| 49 | 49 | | |
|---|
| 50 | 50 | | ### SECTION 1. |
|---|
| 51 | 51 | | |
|---|
| 52 | 52 | | (a) Since 2006, the state has funded and undertaken four comprehensive climate change assessments designed to assess the impacts and risks from climate change. In the most recent, Californias Fourth Climate Change Assessment identified that if greenhouse gas emissions continue to increase, the frequency of extreme wildfires will increase. |
|---|
| 53 | 53 | | |
|---|
| 54 | 54 | | (b) Climate change and development into wildland areas has increased the frequency and severity of wildfires in California, posing increased risks to lives and property. |
|---|
| 55 | 55 | | |
|---|
| 56 | 56 | | (c) The Insurance Commissioner promulgated the first wildfire safety regulatory incentives, known as Safer from Wildfires, in October 2022. |
|---|
| 57 | 57 | | |
|---|
| 58 | 58 | | (d) Home hardening and community mitigation actions, like those in the Safer from Wildfires regulations, are important to reduce the risk of loss from wildfires, and, consequently, to improve the insurability of communities in areas of the state with increased wildfire risk. |
|---|
| 59 | 59 | | |
|---|
| 60 | 60 | | (e) Multiple state governments have successfully used grant programs to reduce local risk to structure losses and build a culture of resilience among contractors, building codes, and homeowner actions. |
|---|
| 61 | 61 | | |
|---|
| 62 | 62 | | (f) Home hardening is essential to community risk mitigation and future insurability in communities that face the threats of wildfires. |
|---|
| 63 | 63 | | |
|---|
| 64 | 64 | | (g) Communitywide implementation of structure hardening and forest and watershed management are critical to long-term mitigation of insured losses. |
|---|
| 65 | 65 | | |
|---|
| 66 | 66 | | SEC. 2. Section 2033 is added to the Insurance Code, immediately following Section 2032, to read:2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals:(1) Reducing local and statewide wildfire losses.(2) Improving insurability and resilience of vulnerable communities.(3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the departments rules.(b) The Sustainable Insurance Account is hereby established within the Insurance Fund.(1) The Sustainable Insurance Account may receive moneys from the insurance premium tax pursuant to paragraph (2) and from appropriations established by the federal government.(2) If the amount of the annual tax collected in a given year from property and casualty insurers pursuant to Section 28 of Article XIII of the California Constitution exceeds the amount of that tax that was collected from property and casualty insurers in 2023, 40 percent of the amount of that tax collected above the 2023 threshold shall be deposited into the Sustainable Insurance Account.(3) Notwithstanding Section 13340 of the Government Code, moneys in the Sustainable Insurance Account shall be continuously appropriated to fund the California Safe Homes grant program, without regard to fiscal years.(c) The department may contract with a third party to assist with program administration.(d) When awarding grant funds under the program, the department shall prioritize the following, in descending order:(1) The replacement of roofs to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities:(A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses.(B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations.(C) Anticipated benefit to insurance policyholders.(e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows:(1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met:(A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association.(B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection.(C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development.(2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance.(f) The department shall collect information to account for the performance of the program over time, including both of the following:(1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home.(2) Regional information on the geographic distribution of grant funding.(g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the departments internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. |
|---|
| 67 | 67 | | |
|---|
| 68 | 68 | | SEC. 2. Section 2033 is added to the Insurance Code, immediately following Section 2032, to read: |
|---|
| 69 | 69 | | |
|---|
| 70 | 70 | | ### SEC. 2. |
|---|
| 71 | 71 | | |
|---|
| 72 | 72 | | 2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals:(1) Reducing local and statewide wildfire losses.(2) Improving insurability and resilience of vulnerable communities.(3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the departments rules.(b) The Sustainable Insurance Account is hereby established within the Insurance Fund.(1) The Sustainable Insurance Account may receive moneys from the insurance premium tax pursuant to paragraph (2) and from appropriations established by the federal government.(2) If the amount of the annual tax collected in a given year from property and casualty insurers pursuant to Section 28 of Article XIII of the California Constitution exceeds the amount of that tax that was collected from property and casualty insurers in 2023, 40 percent of the amount of that tax collected above the 2023 threshold shall be deposited into the Sustainable Insurance Account.(3) Notwithstanding Section 13340 of the Government Code, moneys in the Sustainable Insurance Account shall be continuously appropriated to fund the California Safe Homes grant program, without regard to fiscal years.(c) The department may contract with a third party to assist with program administration.(d) When awarding grant funds under the program, the department shall prioritize the following, in descending order:(1) The replacement of roofs to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities:(A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses.(B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations.(C) Anticipated benefit to insurance policyholders.(e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows:(1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met:(A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association.(B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection.(C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development.(2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance.(f) The department shall collect information to account for the performance of the program over time, including both of the following:(1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home.(2) Regional information on the geographic distribution of grant funding.(g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the departments internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. |
|---|
| 73 | 73 | | |
|---|
| 74 | 74 | | 2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals:(1) Reducing local and statewide wildfire losses.(2) Improving insurability and resilience of vulnerable communities.(3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the departments rules.(b) The Sustainable Insurance Account is hereby established within the Insurance Fund.(1) The Sustainable Insurance Account may receive moneys from the insurance premium tax pursuant to paragraph (2) and from appropriations established by the federal government.(2) If the amount of the annual tax collected in a given year from property and casualty insurers pursuant to Section 28 of Article XIII of the California Constitution exceeds the amount of that tax that was collected from property and casualty insurers in 2023, 40 percent of the amount of that tax collected above the 2023 threshold shall be deposited into the Sustainable Insurance Account.(3) Notwithstanding Section 13340 of the Government Code, moneys in the Sustainable Insurance Account shall be continuously appropriated to fund the California Safe Homes grant program, without regard to fiscal years.(c) The department may contract with a third party to assist with program administration.(d) When awarding grant funds under the program, the department shall prioritize the following, in descending order:(1) The replacement of roofs to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities:(A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses.(B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations.(C) Anticipated benefit to insurance policyholders.(e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows:(1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met:(A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association.(B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection.(C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development.(2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance.(f) The department shall collect information to account for the performance of the program over time, including both of the following:(1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home.(2) Regional information on the geographic distribution of grant funding.(g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the departments internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. |
|---|
| 75 | 75 | | |
|---|
| 76 | 76 | | 2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals:(1) Reducing local and statewide wildfire losses.(2) Improving insurability and resilience of vulnerable communities.(3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the departments rules.(b) The Sustainable Insurance Account is hereby established within the Insurance Fund.(1) The Sustainable Insurance Account may receive moneys from the insurance premium tax pursuant to paragraph (2) and from appropriations established by the federal government.(2) If the amount of the annual tax collected in a given year from property and casualty insurers pursuant to Section 28 of Article XIII of the California Constitution exceeds the amount of that tax that was collected from property and casualty insurers in 2023, 40 percent of the amount of that tax collected above the 2023 threshold shall be deposited into the Sustainable Insurance Account.(3) Notwithstanding Section 13340 of the Government Code, moneys in the Sustainable Insurance Account shall be continuously appropriated to fund the California Safe Homes grant program, without regard to fiscal years.(c) The department may contract with a third party to assist with program administration.(d) When awarding grant funds under the program, the department shall prioritize the following, in descending order:(1) The replacement of roofs to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities:(A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses.(B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations.(C) Anticipated benefit to insurance policyholders.(e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows:(1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met:(A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association.(B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection.(C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development.(2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance.(f) The department shall collect information to account for the performance of the program over time, including both of the following:(1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home.(2) Regional information on the geographic distribution of grant funding.(g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations).(h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the departments internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. |
|---|
| 77 | 77 | | |
|---|
| 78 | 78 | | |
|---|
| 79 | 79 | | |
|---|
| 80 | 80 | | 2033. (a) The California Safe Homes grant program is hereby established to be developed and administered by the department for the purpose of achieving the following goals: |
|---|
| 81 | 81 | | |
|---|
| 82 | 82 | | (1) Reducing local and statewide wildfire losses. |
|---|
| 83 | 83 | | |
|---|
| 84 | 84 | | (2) Improving insurability and resilience of vulnerable communities. |
|---|
| 85 | 85 | | |
|---|
| 86 | 86 | | (3) Home hardening of insurable properties to mitigate wildfire risk and enable consumers to get access to insurance premium incentives offered by insurance companies and in alignment with the departments rules. |
|---|
| 87 | 87 | | |
|---|
| 88 | 88 | | (b) The Sustainable Insurance Account is hereby established within the Insurance Fund. |
|---|
| 89 | 89 | | |
|---|
| 90 | 90 | | (1) The Sustainable Insurance Account may receive moneys from the insurance premium tax pursuant to paragraph (2) and from appropriations established by the federal government. |
|---|
| 91 | 91 | | |
|---|
| 92 | 92 | | (2) If the amount of the annual tax collected in a given year from property and casualty insurers pursuant to Section 28 of Article XIII of the California Constitution exceeds the amount of that tax that was collected from property and casualty insurers in 2023, 40 percent of the amount of that tax collected above the 2023 threshold shall be deposited into the Sustainable Insurance Account. |
|---|
| 93 | 93 | | |
|---|
| 94 | 94 | | (3) Notwithstanding Section 13340 of the Government Code, moneys in the Sustainable Insurance Account shall be continuously appropriated to fund the California Safe Homes grant program, without regard to fiscal years. |
|---|
| 95 | 95 | | |
|---|
| 96 | 96 | | (c) The department may contract with a third party to assist with program administration. |
|---|
| 97 | 97 | | |
|---|
| 98 | 98 | | (d) When awarding grant funds under the program, the department shall prioritize the following, in descending order: |
|---|
| 99 | 99 | | |
|---|
| 100 | 100 | | (1) The replacement of roofs to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations). |
|---|
| 101 | 101 | | |
|---|
| 102 | 102 | | (2) The creation of a five-foot noncombustible zone around the structure, to align with the standards specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations). |
|---|
| 103 | 103 | | |
|---|
| 104 | 104 | | (3) Projects that improve communitywide mitigation to reduce the risk of losses caused by wildfires, with consideration of all of the following priorities: |
|---|
| 105 | 105 | | |
|---|
| 106 | 106 | | (A) Collective actions that mitigate risks before a disaster occurs by addressing risk factors on structures and in the surrounding area that exacerbate insurable wildfire losses. |
|---|
| 107 | 107 | | |
|---|
| 108 | 108 | | (B) Alignment with existing risk mitigations identified in Section 2644.4.5 or 2644.9 of Title 10 of California Code of Regulations. |
|---|
| 109 | 109 | | |
|---|
| 110 | 110 | | (C) Anticipated benefit to insurance policyholders. |
|---|
| 111 | 111 | | |
|---|
| 112 | 112 | | (e) Eligible program applicants shall be qualifying individuals and qualifying cities, counties, and special districts, as follows: |
|---|
| 113 | 113 | | |
|---|
| 114 | 114 | | (1) For a qualifying individual, grant funds related to incentives specified in paragraphs (1) and (2) of subdivision (d) may be awarded if the following criteria are met: |
|---|
| 115 | 115 | | |
|---|
| 116 | 116 | | (A) The property of the applicant is covered by an admitted insurer or the California FAIR Plan Association. |
|---|
| 117 | 117 | | |
|---|
| 118 | 118 | | (B) The property of the applicant is in a ZIP Code that overlaps with a high or very high fire hazard severity zone, as shown on current maps published by the Department of Forestry and Fire Protection. |
|---|
| 119 | 119 | | |
|---|
| 120 | 120 | | (C) The income of the applicant is no higher than the low-income limit for the county in which they reside, as designated by the Department of Housing and Community Development. |
|---|
| 121 | 121 | | |
|---|
| 122 | 122 | | (2) For a qualifying city, county, or special district, the applicant shall demonstrate the alignment of the use of grant funds to enhance and expand the priorities stated in subdivision (d) and the criteria for tracking performance. |
|---|
| 123 | 123 | | |
|---|
| 124 | 124 | | (f) The department shall collect information to account for the performance of the program over time, including both of the following: |
|---|
| 125 | 125 | | |
|---|
| 126 | 126 | | (1) The department shall require that grantees provide subsequent information on the use of grant funds, including receipt for contractor services, if appropriate, written attestation of work done by the recipient, and documentation that demonstrates if the grantee qualified for wildfire incentives from their insurance company after the grant funds were used to reduce wildfire risk of loss to the home. |
|---|
| 127 | 127 | | |
|---|
| 128 | 128 | | (2) Regional information on the geographic distribution of grant funding. |
|---|
| 129 | 129 | | |
|---|
| 130 | 130 | | (g) The California FAIR Plan Association shall submit an annual report to the department stating the number of policyholders that have qualified for each of the wildfire mitigation rating factors specified in the departments Safer from Wildfires regulations (Section 2644.9 of Title 10 of California Code of Regulations). |
|---|
| 131 | 131 | | |
|---|
| 132 | 132 | | (h) On or before January 1, 2027, and every two years thereafter, the department shall publish a performance report using aggregate information collected from grantees and metrics for the beneficial impacts of the grants awarded, including an accounting of the funding for each of the mitigation actions, geographic distributions, and present recommendations on how to improve the implementation of the program. The report shall be posted on the departments internet website and submitted to the Legislature pursuant to Section 9795 of the Government Code. |
|---|