Office of Legislative Affairs - "The Friday Wrap-Up"

Potential Wildfire Fund Legislation

With state officials estimating that fire losses from the January 2025 Eaton fire could reach $15.2 billion, and only $13 billion in the state Wildfire Fund, the Newsom Administration  is circulating proposed language to replenish the fund. The draft proposal would provide $18 billion to the fund, split evenly between ratepayers and utility shareholders over 10 years. Should a legislator choose to author the proposal, legislation may be considered in the last 4 weeks of this year’s legislative session.

Established in legislation, AB 1054 (Chapter 79, Statutes of 2019), the wildfire fund is a mechanism to address third-party damages against an electrical corporation from wildfires ignited by the utility, the costs of which exceed the greater of $1 billion or the amount of the insurance coverage required of the electric investor-owned utility. The goal in creating the fund was to prevent another bankruptcy like the one PG&E went through, which followed a devastating wildfire in 2018.

The proposed language would:

• Authorize the Department of Water Resources to issue up to $10 billion in bonds to support the Wildfire Fund.
• Require the Wildfire Fund’s administrator, in consultation with the California Public Utilities Commission (CPUC), the Office of Energy Infrastructure Safety, the Department of Insurance, the Office of Emergency Services, and the Department of Forestry and Fire Protection, by April 1, 2026, to prepare and submit to the legislature and governor, a report with recommendations on new models or approaches that mitigate damage, accelerate recovery, and responsibly and equitably allocate the burdens from catastrophic wildfires, and potentially other climate change-induced natural disasters, across stakeholders, to complement or replace the fund.
• Create the Continuation Account within the Wildfire Fund, separate and distinct from monies in the fund, to be continuously appropriated for purposes of payment of eligible claims arising from wildfires ignited on or after the effective date of the bill.
• Require each large electrical corporation, within 15 days of the effective date of the bill, to provide to the commission a written notification of its election to participate, or not to participate, in the account.
• Authorize the Wildfire Fund administrator, on or after the date the commission provides the notification, but not later than December 31, 2028, to determine if additional annual contributions are needed, and to provide notification of its determination to the commission and the department.
• Require the CPUC, within 15 days of receiving the notification from the administrator, to initiate a rulemaking proceeding to consider using its authority to require the large electrical corporations to collect a charge from ratepayers to support the account, including the payment of any bond issued for the support of the account.
• If the CPUC imposes a non-bypassable charge to support the account, require the large electrical corporations, from calendar years 2029 to 2045, inclusive, to provide to the administrator their annual contributions, for deposit into the account.
• If the Wildfire Fund administrator determines that an additional contribution is needed to support the account, authorize the administrator to require the large electrical corporations to provide their proportionate share of that amount in equal installment payments over a 5-year period.
• Authorize a large electrical corporation to seek payment from the account to satisfy settled or finally adjudicated eligible claims arising from wildfires ignited on or after the effective date of the bill.
• Require the large electrical corporations, within 6 months of the CPUC’s decision in the application for the recovery of costs and expenses arising from the wildfire, to reimburse the fund for any payment of costs and expenses determined not to be just and reasonable.
• For a catastrophic wildfire that was ignited between January 1, 2025, and the effective date of the bill, authorize an electrical corporation, before filing an application for a determination of just and reasonableness of the settled or finally adjudicated claims associated with the catastrophic wildfire, to a file an application for a determination that those claims cannot be paid by the fund and for the issuance of a financing order in the amount of those claims.
• Require a large electrical corporation, if it issues recovery bonds pursuant to the financing order, to file an application for a just and reasonableness determination for the costs and expenses included in the recovery bonds, as provided.
• Authorize the commission to order a large electrical corporation to provide a credit to its ratepayers for any disallowed costs and expenses plus any cost and expense resulting from the inclusion of the disallowed costs and expenses in the recovery bonds.
• Impose limitations on the amount a plaintiff or the plaintiff’s insurer can recover in a civil action, including an inverse condemnation action, for property damage resulting from a wildfire from an electrical corporation, a local publicly owned electric utility, an electrical cooperative, or from any other governmental entity.
• Require the plaintiff’s maximum recovery in such an action to be reduced by any amount the plaintiff has received, or will receive, from an insurer.
• Limit the recovery of an insurer that is subrogated to the rights of a policyholder in such an action to not more than 40% of what the insurer has paid, or will pay, to the policyholder.

We will keep you updated on any developments and assess any implications for the county.

Congressional Redistricting

Governor Gavin Newsom has been vocal in recent weeks about his interest in countering Texas’ redistricting efforts aimed at favoring Republican candidates by redrawing California’s congressional maps to make GOP-held seats more competitive for Democratic challengers.

The administration is exploring several options which have evolved over the last week. One legal question under review is whether the legislature and governor could unilaterally redraw the maps without involving California voters. Newsom is now floating the outline of a proposal that would require the legislature to call a November special election. Under this plan, new maps would be established and utilized for the 2026, 2028, and 2030 elections, and before reverting back to voters’ previously approved Redistricting Commission process for the 2032 cycle. Other options reportedly under discussion include legislative-drawn maps subject to voter approval, a temporary or permanent repeal of the Redistricting Commission’s authority to draw maps, or the creation of a new redistricting framework.

In 2008, voters removed California legislators’ power to draw their own seats, and in 2010, the voters additionally expanded the Redistricting Commission’s authority to draw congressional maps. The Redistricting Commission is popular with voters which will complicate what would already be an expensive and difficult campaign if the legislature chooses to move forward with Newsom’s proposal.

By law congressional seats are redrawn once every 10 years following the U.S. Census. California’s current maps were drawn in 2020 and took effect in 2022.

Insurance Commissioner Takes Action on the Issue of Smoke Damage Claims

Last week, Insurance Commissioner Ricardo Lara announced formal legal action against the California FAIR Plan Association (FAIR Plan), for systematically denying and limiting smoke damage claims from wildfire survivors – particularly in the wake of the Palisades and Eaton Fires earlier this year.

The California Department of Insurance filed an Order to Show Cause against the FAIR Plan after consumer complaints showed a pattern of denying smoke damage claims based on a FAIR Plan-defined requirement for “permanent physical damage.” The Department’s legal filing follows hundreds of escalating consumer complaints filed against the FAIR Plan and builds on a multi-year investigation, which uncovered at least 418 violations of California’s consumer protection laws.

“I’ve spoken with wildfire survivors who would rather lose their homes to flames than endure the stress and confusion of navigating smoke damage claims. This is unacceptable. This issue has persisted after every fire and has become even more urgent in the aftermath of the largest urban fires in history, the Palisades and Eaton fires. These consumers’ message is clear: they need assistance, not obstacles,” said Commissioner Lara. “We will not tolerate insurance companies breaking the law and denying Californians the coverage they deserve, including the FAIR Plan.”

The enforcement action is part of a broader effort led by Commissioner Lara to strengthen consumer protections through oversight, examination, and enforcement across both traditional insurance carriers and the FAIR Plan. The Department is also conducting a Market Conduct Examination of State Farm for its handling of consumers’ wildfire claims.

The Department of Insurance has regulatory oversight of the FAIR Plan to ensure it complies with state law and treats policyholders fairly. Commissioner Lara’s legal action cites violations of California Insurance Code section 790.03 including, but not limited to:

• Misrepresenting policy terms
• Failing to investigate claims fairly
• Denying legitimate claims without reasonable basis

Commissioner Lara is expected to file in the coming weeks the Department’s Report of Examination for an ongoing financial examination of the FAIR Plan, including its compliance with recommendations from the Department’s 2022 Operational Assessment Report. The 2022 report called for significant changes in the FAIR Plan’s governance, operations, underwriting and claims handling, risk management, customer service, and financial planning strategies and policies.

Commissioner Lara has also created the Smoke Claims & Remediation Task Force to develop statewide standards for investigating and remediating smoke damage—a gap that has existed for decades. To date, the Department has helped recover more than $74 million for wildfire survivors through formal complaint intervention.

Upcoming Hearings

Agendas are typically posted on the committee websites in the Assembly and Senate a few days prior to the hearings. To view hearings after they take place, you may access them in the Assembly or Senate media archives where they are generally available within a few hours of committee adjournment.

Monday, August 18, 2025, 10:00 a.m.

Assembly Committee on Emergency Management

1021 O Street, Room 1100

Oversight Hearing: Lessons Learned from the Los Angeles Wildfires

Tuesday, August 19, 2025, 1:30 p.m.

Assembly Joint Hearing Assembly Human Services and Senate Human Services

1021 O Street, Room 2100

Oversight Hearing: 2026–27 Community Services Block Grant State Plan

Wednesday, August 20, 2025, 9:00 a.m.

Assembly Budget Subcommittee No. 7 on Accountability and Oversight

State Capitol, Room 126

Informational Hearing: Impacts of H.R. 1 on California's Budget

Wednesday, August 20, 2025, 10:00 a.m.

Assembly Arts, Entertainment, Sports, and Tourism

State Capitol, Room 444 

Informational Hearing: The Current Outlook of California's Tourism Industry

Wednesday, August 20, 2025, 1:30 p.m.

Assembly Select Committee on Child Care Costs

Informational Hearing: The State of Childcare in California

Thursday, August 21, 2025, 9:30 a.m. or upon adjournment of session

Senate Transportation Subcommittee on LOSSAN Rail Corridor Resiliency

1021 O Street, Room 1200 

Informational Hearing: Getting it Right - Advancing Rail Reforms in Southern California

Grant Opportunities

Below is a list of the latest grant opportunities released by the state. All opportunities for local jurisdictions may be found here.

Application Deadline: 8/26/25 23:59
Title: Household Hazardous Waste Grant, HD44 (Construction)
State Agency / Department:  Department of Resources Recycling and Recovery
Match Funding? No
Estimated Total Funding: $500,000
Funding Method: Reimbursement(s)

Expected Award Announcement: 10/1/25
Title: Alcohol Enforcement and Education 2026
State Agency / Department: Department of Alcoholic Beverage Control
Match Funding? No
Estimated Total Funding: $750,000
Funding Method: Reimbursement(s)

Application Deadline: 9/12/25 00:00
Title: ABC/OTS Alcohol Enforcement Grant 2026
State Agency / Department: Department of Alcoholic Beverage Control
Match Funding? No
Estimated Total Funding: $750,000
Funding Method: Reimbursement(s)

Governor’s Press Releases

Below is a list of the governor’s press releases beginning July 30.

August 5: Since January, California has seized nearly $480 million in illicit cannabis

August 4: ICYMI: Los Angeles County releases a bold Blueprint to accelerate wildfire recovery

August 4: Fighting federal government pays off – California’s legal challenges have restored at least $168 billion in federal funding

August 1: Governor Newsom statement on Trump administration freezing of critical research dollars to UCLA

August 1: 130 CHP officers join state’s law enforcement family

August 1: Governor Newsom: Trump has betrayed us with failed economic policies

July 31: Trump’s unlawful CalGuard power grab results in 57% decrease in fentanyl pounds seized

July 31: As Trump defunds federal firefighting, California steps up: introducing the world’s largest helicopter firefighting fleet

July 31: Nearly all National Guard soldiers in Los Angeles are demobilizing, Governor Newsom demands those remaining be released

July 30: TOMORROW: Governor Newsom to announce major addition to state’s firefighting capabilities

July 30: Governor Newsom strengthens local control in Los Angeles burn scar areas

July 30: Governor Newsom signs legislation 7.30.25

July 30: Trump tariff policy continues to cause chaos in American economy

LEGISLATIVE BRANCH ACTIVITY

Senate Passes Three Appropriations Bills Before Recess

The Senate passed the first of their appropriations bills before heading home for August recess last week. The Agriculture, Food and Drug Administration; Military Construction, Veterans Affairs, and Related Agencies bills passed together and were followed by a separate vote funding the Legislative Branch. All of the votes were bipartisan and the package was enrolled into HR 3944.

The votes cleared an initial backlog in the Senate’s appropriations process, which is still running behind as the House and Senate both work to negotiate compromises in their draft bills before the end of the fiscal year on September 30. As both chambers headed into August, the differences between their legislative proposals made progress difficult. The House bills adopt major cuts to programmatic funding and are more closely aligned with the Administration’s budget request while the Senate bills are bipartisan and mostly level or slightly increase funding.

A continuing resolution (CR), continuing prior funding levels on a temporary basis and historically not including congressionally directed spending and community projects funding, is nearly guaranteed without unlikely major breakthroughs over August recess.

House Transportation and Infrastructure Committee Releases Bipartisan FEMA Reform Bill

Reps. Sam Graves and Rick Larson, Chairman and Ranking Member of the House Committee on Transportation and Infrastructure introduced the bipartisan Fixing Emergency Management for Americans (FEMA) Act of 2025 as HR 4669.

The bill restructures the Federal Emergency Management Agency (FEMA) outside of the Department of Homeland Security as an independent cabinet-level agency and makes significant changes to public and individual assistance. Post disaster public assistance under the bill would largely be administered through counties as a grant, while Individual assistance would be modernized to better accommodate common administrative issues.

The draft legislation also affords state emergency management agencies greater control over pre-disaster mitigation projects by creating a pre-approval process, it would also consolidate pre and post disaster mitigation programs to allow a single application to be mutually applicable.

EXECUTIVE BRANCH ACTIVITY

FEMA Blocked from Reallocating BRIC Grants

The Federal Emergency Management Agency (FEMA) was prohibited from reallocating funding for the Building Resilient Infrastructure and Communities (BRIC) program that was frozen under the Administration’s review for compliance with their priorities earlier this year.

A district judge granted a preliminary injunction in the case led by states attorneys general, including California Attorney General Rob Bonta. The Administration argued that the Congressionally appropriated funding for BRIC grants fell into larger disaster mitigation legislation and therefore FEMA and the Department of Homeland Security had greater flexibility under law to reapportion the funding or modify the program.

The injunction did not release the frozen funds to the states, it only ensured they would not be spent elsewhere while the case progresses.

Sanctuary Jurisdictions List Reposted by the Department of Justice

The Department of Justice (DOJ) has released a list of ‘sanctuary jurisdictions’ pursuant to , Executive Order 14287, titled “Protecting American Communities from Criminal Aliens,” which directed the Administration to produce a list of ‘sanctuary jurisdictions’ not aligned with the Administration’s interpretation of federal immigration law. The entire state of California was designated along with the cities of Berkley, San Francisco, and Los Angeles.

The DOJ has argued that statute, specifically Section 1373 requires affirmative cooperation from local jurisdictions in federal immigration enforcement efforts, making sanctuary policies unlawful. The EO seeks to withhold federal funding from designated jurisdictions.

California Attorney General Rob Bonta is expected to announce a new lawsuit depending on how the Administration seeks to enforce the provisions in the EO, as new, tangential, and non-statutory funding conditions imposed on Congressionally appropriated funding remain legally dubious following lawsuits from the first Trump Administration.

President Considers Softening Immigration Enforcement on Farmworkers

President Donald Trump on August 6 discussed modifying his Administration’s policies on immigration enforcement for migrant farm workers. The President stated he wanted to “work with farmers” to find alternative pathways for certain immigrants, suggesting a program that would allow them to voluntarily exit and return with some type of work visa.

Administration officials had previously discussed expanding the H-2A agricultural worker visa program and making other exceptions for certain service industry workers but have faced backlash from immigration hawks on the potential for visa overstayers and amnesty for prior irregular immigrants. They also acknowledged the labor shortage in the agriculture industry as a whole and its importance to the economy and national security.

EPA Announces Drinking Water Security Grants

The Environmental Protection Agency (EPA) announced over $9 million in grant funding aimed at helping midsize and large public water systems protect drinking water from cybersecurity threats and extreme weather events. This funding opportunity, authorized under the Safe Drinking Water Act, is open for 60 days and targets systems serving 10,000 or more people.

Alongside the funding, the EPA released a report titled, “Securing the Future of Water: Addressing Cyber Threats Today,” which outlines recommendations to improve cybersecurity resilience in the water sector. These include enhancing collaboration among government agencies, utilities, and associations, promoting cybersecurity best practices, and expanding access to technical assistance and training.

According to the EPA, the initiative responds to a rise in cyberattacks on water systems and that the recommendations were developed by a task force co-led by the EPA, involving stakeholders from across the water sector.

Orange County Delegation Press Releases

• Mike Levin – July 31, 2025: Reps. Levin, Lawler Reintroduce Bipartisan Bill to Require On-Site Inspectors at Decommissioning Nuclear Power Plants | U.S. Congressman Mike Levin
• Lou Correa – August 4, 2025: CORREA, KIM PUSH VA TO SUPPORT OC VETERANS CEMETERY | U.S. Congressman Lou Correa of California
• Young Kim – August 1, 2025: Rep. Young Kim Pushes VA to Support OC Veterans Cemetery - Congresswoman Young Kim
• Young Kim – July 31, 2025: Rep. Young Kim Receives Inaugural “Champion of Korean War Veterans and Peace on the Peninsula” Award - Congresswoman Young Kim
• Dave Min – August 1, 2025: WATCH: Rep. Dave Min Demands Accountability at ICE Field Office in Orange County, Slams "Unsatisfying" Responses | Representative Dave Min
• Linda Sanchez – August 1, 2025: Democratic members warn HHS: Revoking immigrant health benefits puts everyone at risk | Congresswoman Linda Sanchez
• Linda Sanchez – August 1, 2025: Sánchez: President Trump’s chaotic trade saga continues | Congresswoman Linda Sanchez
• Alex Padilla – August 6, 2025: Padilla, Williams Push for Resources to Increase Access to the Ballot Box Amidst Rise in Voter Suppression Efforts Across the Country - Senator Alex Padilla
• Alex Padilla – August 5, 2025: Padilla, Cornyn, Garamendi, LaMalfa Announce Bipartisan Bill to Give States More Time to Use Disaster Relief Funds - Senator Alex Padilla
• Alex Padilla – August 4, 2025: Padilla, Ernst, Valadao, Pingree Announce Bipartisan, Bicameral Resolution to Recognize National Farmers Market Week - Senator Alex Padilla
• Alex Padilla – August 1, 2025: Padilla Pushes Legislation to Transform California’s Rail Network, Reduce Train Pollution - Senator Alex Padilla
• Alex Padilla – July 31, 2025: Padilla, Schiff, Markey Decry Homeland Security’s Surveillance of Angelenos, Violation of Privacy and First Amendment Rights - Senator Alex Padilla
• Alex Padilla – July 31, 2025: WATCH: Padilla Condemns Trump Administration’s Threats to Deport DACA Recipients - Senator Alex Padilla
• Alex Padilla – July 31, 2025: Padilla Statement on Senate Republicans’ Threat to Go Nuclear on Senate Rulebook to Expedite Trump’s Nominees - Senator Alex Padilla
• Adam Schiff – August 4, 2025: NEWS: Sen. Schiff Joins Sens. Cortez Masto, Daines on Bipartisan Legislation to Help Secure More Funding for Rural Communities 
• Adam Schiff – August 1, 2025: NEWS: Schiff Joins Durbin and Coons in Introducing Resolution Recognizing Decades-Long Human Rights Abuses in Eritrea
• Adam Schiff – August 1, 2025: WATCH: Sen. Schiff Blasts USDA on New Proposal Overlooking California, Largest Ag Producing State in the Nation
• Adam Schiff – August 1, 2025: NEWS: Sen. Schiff, Colleagues Demand End to Illegal Cuts at NASA, Reassert Congress’ Sole Power to Authorize Science Funding
• Adam Schiff – July 31, 2025: NEWS: Sen. Schiff, Bennet Introduce Bill to Help Homeowners Recover and Rebuild from Natural Disasters

Legislation Introduced by the Orange County Delegation

Friday 08/08/25

Bay Area county could raise taxes to offset Trump Medicaid cuts -- In response to recent federal legislation that cuts billions of dollars to Medicaid, Santa Clara County supervisors on Thursday unanimously voted to add a ballot measure to November’s special election that would increase local sales tax by five-eighth cent (0.625%) for five years to try to backfill some of the projected lost federal revenue. Catherine Ho in the San Francisco Chronicle -- 08/08/25

Thursday 08/07/2025

California Supreme Court hands victory to rooftop solar panel owners -- The California Supreme Court today sided with environmental groups in a case seen as pivotal for the proliferation of rooftop solar power in California. Malena Carollo Calmatters Bob Egelko in the San Francisco Chronicle -- 08/07/25

California higher education layoffs: UC, Stanford and Cal State universities cut, freeze jobs -- Federal funding cuts, inflation and drops in enrollment are among the reasons cited for the pink slips. Tina Chen in the San Jose Mercury -- 08/07/25

Millions of Californians may lose health coverage because of new Medicaid work requirements -- The nation’s first mandated work requirement for Medicaid recipients, approved by the Republican-led Congress and signed by President Trump, is expected to have a seismic effect in California. Laura J. Nelson in the Los Angeles Times -- 08/07/25

Wednesday 08/06/25

Elon Musk and X notch court win against California deepfake law -- A federal judge on Tuesday struck down a California law restricting AI-generated, deepfake content during elections — among the strictest such measures in the country — notching a win for Elon Musk and his X platform, which challenged the rules. Chase DiFeliciantonio Politico -- 08/06/25

Tuesday 08/05/25

Newsom directs agencies to tackle loneliness crisis among boys and young men -- California’s college attendance rate among young men is 57%, compared to 68% for young women. Experts say early intervention and recruiting more men as teachers and counselors could address rising rates of suicide. Vani Sanganeria EdSource -- 08/05/25

California home insurance: See insurers’ latest rates and ratings -- You can use this tool to see the rate increase history for any insurer as well as information about its financial stability. Both parent companies and their subsidiaries are shown. To confirm what subsidiary you’re insured by, contact your agent or broker. Megan Fan Munce, Hanna Zakharenko and Emma Stiefel in the San Francisco Chronicle -- 08/05/25

Monday 08/04/25

How a generation of permitting requirements slows down California’s transit projects -- A new report from a San Diego nonprofit examines how third-party permitting requirements affect timing of California’s transit projects. Colleen Shalby in the Los Angeles Times -- 08/04/25

California affordable housing programs are on the chopping block after Supreme Court ruling -- Many California cities require homebuilders to create affordable housing or pay fees to support construction of those units. A new lawsuit contends those fees are unconstitutional. Ben Christopher Calmatters -- 08/04/25

Weekend 08/03 – 08/02/25

She faced $500 daily HOA fines for an unapproved door. A new state law saved her -- A new California housing bill has changed the way homeowners associations are allowed to discipline homeowners. The changes, which took effect July 1, came just in time for one homeowner who was set to be fined up to $500 per day for renovating a doorway within her house. Under the new rules, she now owes only $100. Jack Flemming in the Los Angeles Times-- 08/02/25

Trump’s EPA puts California in its crosshairs with its proposed car rules -- The U.S. Environmental Protection Agency’s recent proposal to repeal its own 2009 finding that greenhouse gas emissions endanger public health marks a major U-turn for the nation’s climate progress. While it’s impact will be felt nationwide, the plan takes direct aim at California. Hayley Smith in the Los Angeles Times-- 08/02/25