AB 1236 California Assembly · 2025-2026 Regular Session

Insurance: Climate and Sustainability Insurance and Risk Reduction Grant Program.

Summary

Existing law establishes the Department of Insurance, headed by the Insurance Commissioner, and provides for the powers and duties of the commissioner. Existing law requires the commissioner to convene a working group to identify, assess, and recommend risk transfer market mechanisms that promote investment in natural infrastructure to reduce the risks of climate change related to catastrophic events, create incentives for investment in natural infrastructure to reduce risks to communities, and provide mitigation incentives for private investment in natural lands to lessen exposure and reduce climate risks to public safety, property, utilities, and infrastructure. This bill would require the department to establish and administer the Climate and Sustainability Insurance and Risk Reduction Grant Program, to be funded upon appropriation by the Legislature, for the purpose of achieving specified goals, including developing proofs of concept that expand insurance options and testing community-purchased insurance to reduce overall insurance costs, as specified. The bill would require the department to report to the Senate Committee on Insurance and the Assembly Committee on Insurance on program results on or before January 1, 2029, and on or before January 1 every 3 years thereafter. The bill would repeal these provisions on January 1, 2035.

Issues: ✓ Environment

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 21, 2025 Last action Feb 2, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

04/10/25 - Amended Assembly → AB1236 · 1 edit

MINOR

No substantive policy changes were made between these two versions. The differences are entirely formatting and presentation: line numbers and page headers were removed, website navigation elements were added, and a 'Revised April 23, 2025' date was included. The actual legislative text (findings, program requirements, reporting deadlines, and sunset provision) is identical in both versions.

TECHNICAL

Formatting changes only: removed line numbers and page headers/footers, added website navigation elements, and added a 'Revised April 23, 2025' date stamp. No changes to the bill's substantive provisions.

02/21/25 - Introduced → 03/17/25 - Amended Assembly · 5 edits · Mar 17, 2025

MODERATE

AB 1236 was dramatically expanded from a simple gender-neutral language fix in Section 622 of the Insurance Code into a major new policy initiative creating a Climate and Sustainability Insurance and Risk Reduction Grant Program. The amended bill requires the Department of Insurance to establish and administer a grant program (funded upon legislative appropriation) aimed at closing insurance protection gaps in vulnerable communities through community-based insurance, parametric insurance, nature-based solutions, and climate resilience districts. The new program includes a reporting requirement every three years starting in 2029 and sunsets on January 1, 2035.

SCOPE

Added an entirely new Article 2.5 (Sections 12945-12947) to the Insurance Code creating the Climate and Sustainability Insurance and Risk Reduction Grant Program, which is a major expansion beyond the original bill's scope of a single technical amendment.

FISCAL

The grant program is to be funded upon appropriation by the Legislature. The fiscal committee designation changed from 'no' to 'yes,' reflecting that the bill now involves potential state spending.

REQUIREMENT

The Department of Insurance must establish and administer the grant program with seven specific goals: developing proofs of concept for community-based and parametric insurance, exploring innovative approaches in areas facing extreme heat/wildfire/flooding/biodiversity loss, testing community-purchased insurance to reduce costs, supporting nature-based solutions, supporting regional and community-scale risk reduction, creating climate resilience districts under Government Code Division 6, and educating communities on insurance for climate events.

TIMELINE

The department must report to the Legislature on program results by January 1, 2029, and every three years thereafter. The entire new article sunsets (is repealed) on January 1, 2035.

TECHNICAL

The original technical amendment to Section 622 (changing 'he' to 'they' for gender-neutral language about reinsurance communications) is retained but moved to a secondary section number, as the bill's primary purpose shifted to the new grant program.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

May 23, 2025

Lower · Passed

In committee: Held under submission.

lower

May 14, 2025

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 23, 2025

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 17. Noes 0.) (April 23). Re-referred to Com. on APPR.

lower

Apr 21, 2025

Committee

Re-referred to Com. on INS.

lower

Apr 10, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

lower

Mar 18, 2025

Committee

Re-referred to Com. on INS.

lower

Mar 17, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

lower

Mar 17, 2025

Committee

Referred to Com. on INS.

lower

Feb 22, 2025

Lower · Passed

From printer. May be heard in committee March 24.

lower

Feb 21, 2025

Introduced

Introduced. To print.

lower

1 primary · 2 co-sponsors