California FAIR Plan Association.

Assembly Members Calderon and Alvarez's legislation authorizes the California FAIR Plan Association to access new financing mechanisms through the state's Infrastructure and Economic Development Bank, enabling the association to issue bonds and enter credit agreements to fund insurance claims and enhance liquidity.

The bill establishes a framework for the association to request bond issuance from the bank, subject to Insurance Commissioner approval. These bonds would be secured by association assets and repaid through revenues, not state funds. If the association cannot meet its repayment obligations, it must assess its member insurers to cover outstanding amounts. The legislation creates statutory liens on association collateral to protect bondholders and credit providers, with these liens taking immediate effect without additional filing requirements.

To address California's property insurance availability challenges, the bill includes an urgency clause for immediate implementation. The legislation exempts the association from certain Insurance Code provisions while bonds or credit agreements remain outstanding, while maintaining the Insurance Commissioner's regulatory oversight of financing decisions. The California Infrastructure and Economic Development Bank gains authority to issue both taxable and tax-exempt bonds to support the association's claims-paying capacity, with proceeds also available for reserves and issuance costs.