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SB-290 Natural disasters: insurance and related alternative risk-transfer products.(2019-2020)

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Date Published: 02/14/2019 09:00 PM
SB290:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 290


Introduced by Senator Dodd

February 14, 2019


An act to add Section 8566.5 to the Government Code, relating to emergency services.


LEGISLATIVE COUNSEL'S DIGEST


SB 290, as introduced, Dodd. Natural disasters: insurance and related alternative risk-transfer products.
Existing law, the California Emergency Services Act, among other things, vests the Governor with various powers and duties related to that act, including coordinating the State Emergency Plan and those programs necessary for the mitigation of the effects of an emergency in this state. Existing law authorizes the Governor to expend any appropriation for support of the California Emergency Services Act to carry out its provisions.
This bill, upon appropriation by the Legislature, would authorize the Governor to purchase insurance, reinsurance, insurance linked securities, or other related alternative risk-transfer products for the State of California to help mitigate against costs incurred by the state in response to a natural disaster, including, but not limited to, an earthquake, wildfire, or flood. The bill would require the Office of Emergency Services, or another agency designated by the Governor, to work with the Treasurer and the Insurance Commissioner to determine the appropriate product to be purchased by the state pursuant to these provisions.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 8566.5 is added to the Government Code, to read:

8566.5.
 (a) Upon appropriation by the Legislature for purposes of this section, the Governor may, in accordance with this section, purchase insurance, reinsurance, insurance linked securities, or other related alternative risk-transfer products for the State of California to help mitigate against costs incurred by the state in response to a natural disaster, including, but not limited to, an earthquake, wildfire, or flood.
(b) The Office of Emergency Services, or another agency designated by the Governor, shall work with the Treasurer and the Insurance Commissioner to determine the appropriate insurance, reinsurance, insurance linked securities, or related alternative risk-transfer product to be purchased by the state pursuant to this section.