Official Summary Text
SB 1041, as amended, Arreguín.
California Financing Law: definitions.
Voluntary contractual assessments: wildfire safety improvements.
Existing law authorizes a public agency to establish a contractual assessment program, under which public agency officials and individual property owners may enter into voluntary contractual assessments to finance certain improvements to real property, as specified. To finance those improvements, existing law authorizes a public agency to issue bonds, or to advance its own funds and later sell bonds to reimburse itself for those advances. Under the program, those bonds or advances would be repaid through the voluntary contractual assessments, which constitute a lien against the lots and parcels land, as specified. To establish a contractual assessment program, existing law requires the legislative body of the public agency to adopt a resolution that, among other things, provides certain details of the
program, including the kinds of projects and the geographic area within which properties would be eligible for financing under the program.
Existing law authorizes a public agency to establish a contractual assessment program to finance certain kinds of improvements that are attached to real property, including energy or water efficiency improvements. This contractual assessment program is commonly known as a Property Assessed Clean Energy (PACE) program. The California Financing Law requires the Commissioner of Financial Protection and Innovation to license and regulate persons who administer a contractual assessment program on behalf of a public agency, as specified.
Existing law, the Wildfire Safety Finance Act (act), authorizes the legislative body of any public agency that has accepted the designation of Very High Fire Hazard Severity Zone to create a voluntary contractual assessment program to finance wildfire safety
improvements, as specified. The act defines “wildfire safety improvements” as, among other things, permanent wildfire resilience and safety improvements fixed to existing real property. The act prohibits a wildfire safety improvement financed under the act from being used as a part of a project to construct a new home or to rebuild or reconstruct a home that was destroyed or damaged in a fire. Existing law repeals the Wildfire Safety Finance Act on January 1, 2029.
This bill would indefinitely extend the operation of certain provisions of the Wildfire Safety Finance Act and would revise the requirements on a legislative body of a public agency to establish a voluntary contractual assessment program under the act. In this regard, the bill would eliminate the requirements that the legislative body accept a designation of Very High Fire Hazard Severity Zone and adopt a resolution establishing the program. The bill would instead authorize any public agency that has
established a PACE program or established a special tax relating to a specified community facilities district to enter into voluntary contractual assessments with property owners to finance the installation of wildfire safety improvements, as defined.
The bill would modify the projects eligible for financing under the act to, among other things, include wildfire safety improvements in connection with the rebuilding or reconstruction of property that are in addition to or an improvement to the property as it existed immediately before it was destroyed or damaged by fire, as specified. The bill would also include improvements that contribute to the defensible space Zones 1 and 2 of a property, which includes the space between 0 and 100 feet from each side and from the front and rear of the structures that can be fixed to a building or structure, as specified.
Existing law, the California Financing Law, governs the licensing and regulation of a finance lender, broker, or program administrator by the Department of Financial Protection and Innovation and specifies that the definitions it sets forth govern that law unless otherwise required by the context.
This bill would make a nonsubstantive change to that provision.