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    AB-226
    Budget & Economy

    California FAIR Plan Association.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Authorizes the California FAIR Plan Association to issue bonds through the state infrastructure bank to increase its ability to pay insurance claims during the current property insurance crisis.
    • Enables the FAIR Plan to enter into loan agreements and credit lines with financial institutions to ensure adequate funding for catastrophic events.
    • Requires FAIR Plan member insurance companies to pay assessments that cover all bond and loan payment obligations.
    • Takes effect immediately as an urgency measure to address the severe shortage of property insurance coverage in California.

    Summary

    Assembly Members Calderon and Alvarez propose expanding the California FAIR Plan Association's financial capabilities to address the state's property insurance availability crisis. The legislation authorizes the association to access new funding mechanisms through the California Infrastructure and Economic Development Bank, enabling it to maintain adequate claims-paying capacity as its role in the market grows.

    The bill establishes three primary financing options for the association, subject to Insurance Commissioner approval: bond issuance through the Infrastructure Bank, direct loan agreements with the bank, and lines of credit from institutional lenders or broker-dealers. These financial instruments can fund claim payments, enhance liquidity, and refinance existing obligations. The association may secure these arrangements using premiums, revenues, and receivables as collateral.

    To ensure financial stability, the legislation requires association members to provide assessments sufficient to meet all payment obligations for approved bonds, loans, and credit lines. The bill protects these repayment commitments by preventing subsequent operational plan amendments from altering approved terms. While the Infrastructure Bank gains authority to enforce the association's financial obligations, it remains separate from matters under Insurance Commissioner oversight.

    The measure includes specific provisions clarifying that bonds issued under this authority do not constitute state debt and are payable solely from designated funds and revenues. It takes effect immediately upon passage, reflecting the bill's findings about current strains on property insurance availability and the association's need for enhanced financial capacity to serve as a reliable market of last resort.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Hearing has not been scheduled yet
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    Vote on Assembly Floor
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Assembly Appropriations Hearing
    Assembly Insurance Hearing
    Assembly Committee
    Assembly Insurance Hearing
    Assembly Insurance Hearing
    Read first time. To print.
    Assembly Floor
    Read first time. To print.
    Read first time. To print.

    Contacts

    Profile
    Damon ConnollyD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Lisa CalderonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    David AlvarezD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 28 row(s) selected.
    Page 1 of 6
    Select All Legislators
    Profile
    Damon ConnollyD
    Assemblymember
    Bill Author
    Profile
    Lisa CalderonD
    Assemblymember
    Bill Author
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Profile
    David AlvarezD
    Assemblymember
    Bill Author
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    LaShae Sharp-CollinsD
    Assemblymember
    Bill Author
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Marc BermanD
    Assemblymember
    Bill Author
    Profile
    Akilah Weber PiersonD
    Senator
    Committee Member
    Profile
    Jacqui IrwinD
    Assemblymember
    Bill Author
    Profile
    Nick SchultzD
    Assemblymember
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Bill Author
    Profile
    Rhodesia RansomD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Caroline MenjivarD
    Senator
    Committee Member
    Profile
    Gail PellerinD
    Assemblymember
    Bill Author
    Profile
    John HarabedianD
    Assemblymember
    Bill Author
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Committee Member
    Profile
    Sade ElhawaryD
    Assemblymember
    Bill Author
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author
    Profile
    Bob ArchuletaD
    Senator
    Committee Member
    Profile
    Lola Smallwood-CuevasD
    Senator
    Committee Member
    Profile
    Dawn AddisD
    Assemblymember
    Bill Author
    Profile
    Rick ZburD
    Assemblymember
    Bill Author
    Profile
    Pilar SchiavoD
    Assemblymember
    Bill Author

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Nick Schultz
    Nick SchultzD
    California State Assembly Member
    Isaac Bryan
    Isaac BryanD
    California State Assembly Member
    Rick Zbur
    Rick ZburD
    California State Assembly Member
    Pilar Schiavo
    Pilar SchiavoD
    California State Assembly Member
    Jacqui Irwin
    Jacqui IrwinD
    California State Assembly Member
    John Harabedian
    John HarabedianD
    California State Assembly Member
    Lisa Calderon
    Lisa CalderonD
    California State Assembly Member
    David Alvarez
    David AlvarezD
    California State Assembly Member
    Co-Authors
    Catherine Stefani
    Catherine StefaniD
    California State Assembly Member
    LaShae Sharp-Collins
    LaShae Sharp-CollinsD
    California State Assembly Member
    Rhodesia Ransom
    Rhodesia RansomD
    California State Assembly Member
    Gail Pellerin
    Gail PellerinD
    California State Assembly Member
    Liz Ortega
    Liz OrtegaD
    California State Assembly Member
    Sade Elhawary
    Sade ElhawaryD
    California State Assembly Member
    Damon Connolly
    Damon ConnollyD
    California State Assembly Member
    Marc Berman
    Marc BermanD
    California State Assembly Member
    Dawn Addis
    Dawn AddisD
    California State Assembly Member
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (4/1/2025)

    Latest Voting History

    View History
    April 1, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    770380PASS

    Key Takeaways

    • Authorizes the California FAIR Plan Association to issue bonds through the state infrastructure bank to increase its ability to pay insurance claims during the current property insurance crisis.
    • Enables the FAIR Plan to enter into loan agreements and credit lines with financial institutions to ensure adequate funding for catastrophic events.
    • Requires FAIR Plan member insurance companies to pay assessments that cover all bond and loan payment obligations.
    • Takes effect immediately as an urgency measure to address the severe shortage of property insurance coverage in California.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Nick Schultz
    Nick SchultzD
    California State Assembly Member
    Isaac Bryan
    Isaac BryanD
    California State Assembly Member
    Rick Zbur
    Rick ZburD
    California State Assembly Member
    Pilar Schiavo
    Pilar SchiavoD
    California State Assembly Member
    Jacqui Irwin
    Jacqui IrwinD
    California State Assembly Member
    John Harabedian
    John HarabedianD
    California State Assembly Member
    Lisa Calderon
    Lisa CalderonD
    California State Assembly Member
    David Alvarez
    David AlvarezD
    California State Assembly Member
    Co-Authors
    Catherine Stefani
    Catherine StefaniD
    California State Assembly Member
    LaShae Sharp-Collins
    LaShae Sharp-CollinsD
    California State Assembly Member
    Rhodesia Ransom
    Rhodesia RansomD
    California State Assembly Member
    Gail Pellerin
    Gail PellerinD
    California State Assembly Member
    Liz Ortega
    Liz OrtegaD
    California State Assembly Member
    Sade Elhawary
    Sade ElhawaryD
    California State Assembly Member
    Damon Connolly
    Damon ConnollyD
    California State Assembly Member
    Marc Berman
    Marc BermanD
    California State Assembly Member
    Dawn Addis
    Dawn AddisD
    California State Assembly Member

    Summary

    Assembly Members Calderon and Alvarez propose expanding the California FAIR Plan Association's financial capabilities to address the state's property insurance availability crisis. The legislation authorizes the association to access new funding mechanisms through the California Infrastructure and Economic Development Bank, enabling it to maintain adequate claims-paying capacity as its role in the market grows.

    The bill establishes three primary financing options for the association, subject to Insurance Commissioner approval: bond issuance through the Infrastructure Bank, direct loan agreements with the bank, and lines of credit from institutional lenders or broker-dealers. These financial instruments can fund claim payments, enhance liquidity, and refinance existing obligations. The association may secure these arrangements using premiums, revenues, and receivables as collateral.

    To ensure financial stability, the legislation requires association members to provide assessments sufficient to meet all payment obligations for approved bonds, loans, and credit lines. The bill protects these repayment commitments by preventing subsequent operational plan amendments from altering approved terms. While the Infrastructure Bank gains authority to enforce the association's financial obligations, it remains separate from matters under Insurance Commissioner oversight.

    The measure includes specific provisions clarifying that bonds issued under this authority do not constitute state debt and are payable solely from designated funds and revenues. It takes effect immediately upon passage, reflecting the bill's findings about current strains on property insurance availability and the association's need for enhanced financial capacity to serve as a reliable market of last resort.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (4/1/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Business, Professions and Economic Development
    Hearing has not been scheduled yet
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    Vote on Assembly Floor
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Assembly Appropriations Hearing
    Assembly Insurance Hearing
    Assembly Committee
    Assembly Insurance Hearing
    Assembly Insurance Hearing
    Read first time. To print.
    Assembly Floor
    Read first time. To print.
    Read first time. To print.

    Latest Voting History

    View History
    April 1, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    770380PASS

    Contacts

    Profile
    Damon ConnollyD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Lisa CalderonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    David AlvarezD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    0 of 28 row(s) selected.
    Page 1 of 6
    Select All Legislators
    Profile
    Damon ConnollyD
    Assemblymember
    Bill Author
    Profile
    Lisa CalderonD
    Assemblymember
    Bill Author
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Profile
    Steven ChoiR
    Senator
    Committee Member
    Profile
    David AlvarezD
    Assemblymember
    Bill Author
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    LaShae Sharp-CollinsD
    Assemblymember
    Bill Author
    Profile
    Tom UmbergD
    Senator
    Committee Member
    Profile
    Marc BermanD
    Assemblymember
    Bill Author
    Profile
    Akilah Weber PiersonD
    Senator
    Committee Member
    Profile
    Jacqui IrwinD
    Assemblymember
    Bill Author
    Profile
    Nick SchultzD
    Assemblymember
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Bill Author
    Profile
    Rhodesia RansomD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Angelique AshbyD
    Senator
    Committee Member
    Profile
    Caroline MenjivarD
    Senator
    Committee Member
    Profile
    Gail PellerinD
    Assemblymember
    Bill Author
    Profile
    John HarabedianD
    Assemblymember
    Bill Author
    Profile
    Jesse ArreguinD
    Senator
    Committee Member
    Profile
    Suzette ValladaresR
    Senator
    Committee Member
    Profile
    Sade ElhawaryD
    Assemblymember
    Bill Author
    Profile
    Catherine StefaniD
    Assemblymember
    Bill Author
    Profile
    Bob ArchuletaD
    Senator
    Committee Member
    Profile
    Lola Smallwood-CuevasD
    Senator
    Committee Member
    Profile
    Dawn AddisD
    Assemblymember
    Bill Author
    Profile
    Rick ZburD
    Assemblymember
    Bill Author
    Profile
    Pilar SchiavoD
    Assemblymember
    Bill Author