AB 1554 California Assembly · 2025-2026 Regular Session

Disasters: data.

Summary

Existing law establishes the California Earthquake Authority (CEA) , administered under the authority of the Insurance Commissioner, to transact insurance in this state as necessary to sell policies of basic residential earthquake insurance. Existing law requires the CEA to annually report to the Legislature and the commissioner on the CEA's program operations, including the financial condition of the authority, and to post the report on the CEA's internet website. Existing law requires copies of a certified report examining the CEA's financial and program operations and verifying the annual report to be made public. This bill would additionally require the CEA to provide the annual report to the Senate Committee on Insurance and the Assembly Committee on Insurance. The bill would specify that the certified examination and verification report be posted on the CEA's internet website. Existing law requires the commissioner to convene a working group to, among other things, identify, assess, and recommend risk transfer market mechanisms that promote investment and create incentives for investment in natural infrastructure to reduce risks of climate change, as specified. This bill would require the working group to, no later than January 1, 2028, incorporate hazard mitigation projects into the above-described recommendations.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Aug 2026

Assembly Passage

May 2026

Senate Passage

Governor

Introduced Jan 8, 2026 Last action Aug 12, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

03/02/26 - Amended Assembly → 04/30/26 - Amended Assembly · 6 edits · Apr 30, 2026

MODERATE

AB 1554 was substantially restructured between the March 2 and April 30, 2026 amendments. The Wildfire Fund legislative intent provision was entirely removed, and a new section (Insurance Code 12922.5) was added requiring the Insurance Commissioner to convene a working group on risk transfer market mechanisms that promote investment in natural infrastructure to reduce climate-related risks. The bill now focuses on CEA reporting requirements plus this new climate resilience working group, with a January 1, 2028 deadline for incorporating hazard mitigation projects into recommendations.

Scope change

The bill's scope narrowed by removing all Wildfire Fund provisions and expanded by adding a new section requiring a working group on climate-related risk transfer market mechanisms and natural infrastructure investment incentives under Insurance Code Section 12922.5.

SCOPE

The entire Wildfire Fund legislative intent section (former Section 1) was deleted. This provision had stated the Legislature's intent to enact subsequent legislation implementing recommendations from a Public Utilities Code report on new models to complement or replace the Wildfire Fund.

The bill's stated purpose changed from 'relating to the Wildfire Fund' to amending both Section 10089.13 and Section 12922.5 of the Insurance Code, shifting focus from wildfire fund reform to CEA reporting plus climate risk transfer mechanisms.

REQUIREMENT

New Insurance Code Section 12922.5 requires the Insurance Commissioner to convene a working group to identify, assess, and recommend risk transfer market mechanisms that promote investment in natural infrastructure to reduce climate change risks, create incentives for community risk reduction, and provide mitigation incentives for private investment in natural lands.

The new working group must ensure recommended mechanisms are profitable to insurance and reinsurance companies and, where appropriate, apply at the community or regional level rather than individual land parcels.

TIMELINE

A deadline of January 1, 2028 is set for the working group to incorporate hazard mitigation projects into its recommendations.

FISCAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now carries a fiscal impact that requires fiscal committee review.

01/08/26 - Introduced → 03/02/26 - Amended Assembly · 7 edits · Mar 2, 2026

MODERATE

The amended version of AB 1554 significantly expands the bill's scope by adding a new Section 1 that amends Insurance Code Section 10089.13 to impose detailed annual reporting, financial disclosure, and post-seismic event reporting requirements on the California Earthquake Authority (CEA). The original Wildfire Fund intent statement is renumbered as Section 2. The bill now also requires fiscal committee review, indicating it has a state fiscal impact that was not present in the introduced version.

SCOPE

The bill's title and scope expanded from solely relating to the Wildfire Fund to also amending Insurance Code Section 10089.13 regarding California Earthquake Authority reporting requirements.

REQUIREMENT

New Section 1(a) requires CEA to file an annual report by August 1 each year covering financial condition, approved rates and rating plans, market share analysis of participating vs. nonparticipating insurers, adverse consequences on insurance distribution systems, and recommended program changes. The report must be provided to the Senate and Assembly Insurance Committees and posted on CEA's website.

New Section 1(b) requires the annual report to include detailed financial information: assets held (cash, stocks, bonds), liabilities (unpaid losses, resisted claims, revenue bonds), income (premiums, interest, other sources), expenditures (losses paid, expenses by category), and costs/scope of reinsurance and capital market contracts.

New Section 1(c) requires a separate summary report on CEA's financial capacity to pay claims, including available capital, liabilities, past and future assessments under multiple code sections, reinsurance amounts, revenue bonds, surcharges against policyholders, and private capital market commitments. This report must be made public.

ENFORCEMENT

New Section 1(d) requires the Department of Finance to approve independent auditors selected by the Insurance Commissioner to examine CEA's books and accounts. A certified examination report must be filed with legislative leadership within 10 days and posted on CEA's website. Costs are paid from CEA operating funds.

TIMELINE

New Section 1(e) requires CEA to submit a post-seismic event report within 120 days of a seismic event (or one year for a major seismic event) covering claims payment progress, amounts paid and anticipated, and the authority's functioning in response.

FISCAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the amended bill now has a state fiscal impact requiring fiscal committee review.

Floor votes · Assembly May 22, 2026

How they voted

72–1

Passed · 6 other

Total votes 79

May 22, 2026

D Democratic59

56 Yea 3

94% Yea

R Republican20

16 Yea 1 Nay 3

80% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 12, 2026

Upper · Passed

In committee: Hearing postponed by committee.

upper

Aug 10, 2026

Upper · Passed

In committee: Hearing postponed by committee.

upper

Jul 29, 2026

Upper · Passed

In committee: Hearing postponed by committee.

upper

Jun 25, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 24). Re-referred to Com. on APPR.

upper

Jun 3, 2026

Committee

Referred to Com. on INS.

upper

May 22, 2026

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 1. Page 5253.)

lower

May 14, 2026

Lower · Passed

From committee: Do pass. (Ayes 15. Noes 0.) (May 14).

lower

May 13, 2026

Committee

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

lower

May 4, 2026

Committee

Re-referred to Com. on APPR.

lower

Apr 30, 2026

Introduced

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

lower

Apr 15, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 17. Noes 0.) (April 15). Re-referred to Com. on APPR.

lower

Mar 3, 2026

Committee

Re-referred to Com. on INS.

lower

Mar 2, 2026

Introduced

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

lower

Mar 2, 2026

Committee

Referred to Com. on INS.

lower

Jan 9, 2026

Lower · Passed

From printer. May be heard in committee February 8.

lower

1 primary · 0 co-sponsors