Memorandum
Date: May 6, 2025
To: The Honorable Lake County Board of Supervisors
From: Eddie Crandell, Chair, District 3 Supervisor
Jessica Pyska, District 5 Supervisor
Susan Parker, County Administrative Officer
Matthew Rothstein, Chief Deputy County Administrative Officer
Subject: Consideration of Four Coalition Letters Related to Fire Insurance in Consistency with Board-Adopted 2025 State Legislative Priorities
Executive Summary:
Our Board adopted our 2025 State Legislative Priorities January 28, 2025, during the Annual Governance Workshop. This set of priorities orients the work of our representatives from Nielsen Merksamer in providing State-level advocacy. Requests for signatures on Coalition Letters are sometimes likewise brought to either Department Heads (signing on behalf of their Department), or the County Administrative Officer (who may sign, when Legislation is strongly consistent with your Board’s Legislative Priorities, or bring forward the request for Board Approval, as needed).
The County of Lake was recently (April 25, 2025) asked to join four Coalition Letters in Support of the following Fire Insurance-focused Bills pending in our State Legislature (AB 1, AB 441, SB 547, and SB 616), and Chair Crandell’s signature has been requested.
Administrative Office staff and our State-level advocates from Nielsen Merksamer have reviewed each of these Bills and found all are in strong alignment with your Board’s 2025 Legislative Priorities (namely, Fire Insurance and Wildfire Resilience).
Chair Crandell and Supervisor Pyska (who has been deeply engaged in statewide and national efforts to act on the ongoing insurance crisis, including last week’s testimony before the United States Senate Committee on Banking, Housing, and Urban Affairs) are Sponsors of this item.
Additionally, Rural County Representatives of California has taken a Support position for all four Bills. The California State Association of Counties’ (CSAC’s) position is “Pending” on SB 547, and they have taken a Support position on AB 1, AB 441, and SB 616.
Here is a brief summary of each:
AB 1 (Connolly): Residential Property Insurance: Wildfire Risk:
Current Department of Insurance regulations prohibit an insurer from using a rating plan that does not take into account and reflect specified wildfire risk mitigation, including property-level building hardening measures. As presently written, AB 1 would require the department, on or before January 1, 2030, and every 5 years thereafter, to consider whether or not to update its regulations to include additional building hardening measures for property-level mitigation efforts AND communitywide wildfire mitigation programs. As part of this consideration, the bill would require the department to consult with specified agencies to identify additional building hardening measures to consider, as well as to develop and implement a public participation process during the evaluation.
<https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB1>
AB 441 (Hadwick): Personal Income Tax Law - Corporation Tax Law - exclusions - Wildfires
As presently written, AB 441 would extend the sunset dates for two programs promote wildfire resilience and mitigation, through data-informed interventions, including the California Wildfire Mitigation Program, which is currently supporting resiliency-focused renovations in the Kelseyville Riviera community of Lake County. There is additionally a Senate Bill (SB 616, see below), further acting on the Community Wildfire Mitigation Program.
Here is background on the additional program, provided to the County by Nielsen Merksamer:
Current law establishes the Office of Wildfire Technology Research and Development in state government within the Department of Forestry and Fire Protection to study, test, and advise regarding procurement of emerging technologies and tools in order to more effectively prevent and suppress wildfires within the state. For those purposes, existing law requires the office to, among other things, develop a balanced, multimodal research and development program designed to identify, research, test, and evaluate emerging technologies and tools designed to improve the state’s preparation for, and response to, wildfires in the state, as specified. Current law repeals these provisions on January 1, 2029. This bill would extend the repeal date of the above provisions to January 1, 2033.
<https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB441>
SB 547 (Perez): Commercial Property Insurance Cancellation and Nonrenewal.
As presently drafted, SB 547 would extend the one-year moratorium on insurance non-renewals in an area where a wildfire disaster has been declared to include commercial properties (i.e. in addition to residential properties, protected from non-renewals under existing law).
<https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB547>
SB 616 (Rubio): Community Hardening Commission - Wildfire Mitigation Program
Current law requires the Office of Emergency Services to enter into a joint powers agreement, as specified, with the Department of Forestry and Fire Protection to develop and administer a comprehensive wildfire mitigation program, known as the California Wildfire Mitigation [Financial Assistance] Program (CWMP), that, among other things, encourages cost-effective structure hardening and retrofitting that creates fire-resistant homes, businesses, and public buildings. This bill would require the joint powers authority to revise the wildfire mitigation program in accordance with prescribed community hardening standards and guidelines developed pursuant to the bill’s provisions, as specified. Additionally, this bill would establish the Community Hardening Commission as an independent unit within the Department of Insurance, to include at least the Insurance Commissioner (who would Chair the Commission) and State Fire Marshal or Secretary of the Natural Resources Agency, or their designee(s).
<https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB616>
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☐ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☒ Well-being of Residents ☒ Public Safety ☐ Disaster Prevention, Preparedness, Recovery
☒ Economic Development ☐ Infrastructure ☐ County Workforce
☒ Community Collaboration ☐ Business Process Efficiency ☐ Clear Lake
Recommended Action: Authorize Chair Crandell to Sign Four Coalition Letters Related to Fire Insurance in Consistency with Board-Adopted 2025 State Legislative Priorities.