AMENDED IN SENATE JULY 2, 2026

AMENDED IN ASSEMBLY MAY 18, 2026

AMENDED IN ASSEMBLY APRIL 27, 2026

AMENDED IN ASSEMBLY APRIL 16, 2026

AMENDED IN ASSEMBLY APRIL 7, 2026

AMENDED IN ASSEMBLY MARCH 16, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

93

URGENCY STATUTE

Introduced by Assembly Member Gipson

February 10, 2026

An act to add Chapter 6.12 (commencing with Section 25405) to Division 20 of, and to add Chapter 7.5 (commencing with Section 105435) to Part 5 of Division 103 of, the Health and Safety Code, and to add Sections 2060.1, 2060.2, 14048, and 15009.2 to the Insurance Code, relating to smoke damage, and declaring the urgency thereof, to take effect immediately.

Vote: 2/3   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

(1) Existing law requires the Secretary for Environmental Protection to implement a unified hazardous waste and hazardous materials management regulatory program, known as the unified program. Existing law requires the Office of the State Fire Marshal to develop and make available on its internet website a Wildland-Urban Interface Fire Safety Building Standards Compliance training intended for use in the training of local building officials, builders, and fire service personnel, as specified. Existing law authorizes the Office of the State Fire Marshal to allow certification of contractors who conduct defensible space, home hardening, fuel reduction, roadside clearance, and other contracting activities for wildlife resiliency efforts and who have completed specified training programs.

This bill, the Smoke Damage Recovery Act, would require the California Environmental Protection Agency, Agency (CalEPA), on or before June 30, 2027, to develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildfire, as defined. The bill would additionally authorize the California Environmental Protection Agency CalEPA to impose additional sampling, testing, or chemical screening requirements pertaining to a specific wildfire.

This bill would require the California Environmental Protection Agency, CalEPA, on or before January 1, 2028, and in consultation with state and local agencies, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a wildfire. The bill would require the California Environmental Protection Agency CalEPA to promulgate regulations to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which governmental entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements. The bill would require the regulations to establish the fees that will be required for the certifications, and limit the fees to the amount sufficient to cover the costs of administering and enforcing these requirements. The bill would establish the Wildfire Remediation and Restoration Certification and Training Fund in the State Treasury, require fees collected pursuant to these provisions to be deposited into the fund, and make these funds available, upon appropriation by the Legislature, for use in administering the training and certification requirements.

(2) Existing law generally regulates classes of insurance, including fire and residential property insurance. Existing law specifies the measure of indemnity under an open fire insurance policy that requires payment of actual cash value or replacement cost. If there is a covered loss relating to a state of emergency, existing law requires additional living expense coverage to be for a period of no less than 24 months from the inception of the loss.

This bill would prohibit an insurer from terminating additional living expenses coverage for a residential property insurance smoke damage claim as a result of a wildfire until the property has been cleared for habitation, as specified. The bill would require the above-described California Environmental Protection Agency CalEPA standards and requirements to apply to these claims within the impact zone. The bill would make an insurer responsible for the cost of sampling and testing required pursuant to California Environmental Protection Agency CalEPA standards and requirements. The bill would require an insurer that chooses to exercise its right to inspect a smoke-damaged property to inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim or, if applicable, no later than 30 calendar days after access to the property is granted. The bill would require the insurer to pay the actual cash value of the cost to restore the damaged property to its preloss condition no later than 30 calendar days after the inspection, unless the policyholder has agreed to remediation and restoration by the insurer. After that payment is made, the bill would require the insurer to pay the undisputed amount of replacement cost, up to the applicable policy limits, within 15 calendar days from the date the insured provides the insurer with their contractor’s contract to remediate and restore the damaged property to its preloss condition, unless the policyholder has agreed to remediation and restoration by the insurer.

(3) Existing law, the Insurance Adjuster Act, generally regulates the licensing of insurance adjusters. Existing law, the Public Insurance Adjusters Act, generally regulates the licensing of public insurance adjusters. The acts set forth various requirements with respect to operation as an insurance adjuster or public insurance adjuster.

This bill would require the Department of Insurance to develop training and certification programs for insurance adjusters and public insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties. The bill would require an insurer, adjuster firm, or qualified manager to train and accredit its adjusters in accordance with those standards and requirements, and would require a public insurance adjuster hired by an insured to adjust smoke damage claims to have the requisite license, training, and certification.

(4) This bill would declare that it is to take effect immediately as an urgency statute.

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

SECTION 1.

This act shall be known, and may be cited, as the Smoke Damage Recovery Act.

SEC. 2.

(a) The Legislature finds and declares all of the following:

(1) California has experienced recordbreaking wildfires in recent years, including the Eaton Fire and Palisades Fire in January 2025 that damaged and destroyed thousands of homes and businesses. In addition to completely destroyed homes, condominiums, and apartments, thousands of residential properties suffered damage as a result of smoke, soot, char, ash, and other contaminants.

(2) Thousands of smoke damage insurance claims have been filed as a result of these fires. The lack of universally recognized and regulatory standards for the testing, evaluation, remediation, and restoration of smoke damage has prompted complaints from survivors that their insurance companies have completely or partially denied their smoke damage claims or have refused to conduct, or reimburse for, preremediation testing or postremediation clearance testing to ensure their homes have been properly restored to preloss condition.

(3) While the Department of Insurance has taken multiple executive actions to protect consumers, including issuing a bulletin to insurers reminding them of their duty to fully investigate smoke damage claims, initiating legal action against the California FAIR Plan over its failure to handle smoke damage claims within existing law, and investigating complaints from consumers, the lack of standards and unsettled case law have caused a patchwork of claims handling practices by insurance companies.

(4) Smoke, soot, char, ash, and other contaminants that emanate from wildfires cause damage to properties by depositing particulate matter, gases, heavy metals, volatile organic compounds, and other pollutants onto personal property and into the walls, floors, ceilings, surfaces, and other infrastructure of a property. Those contaminants not only compromise the integrity of the premises, but they may also pose significant, long-term health issues long after the fire has been extinguished.

(5) As property owners and tenants return to their properties and the areas that have been damaged or destroyed after a wildfire, many face uncertainty as to whether their properties have been properly remediated, restored to preloss condition, and are safe to inhabit. Property owners and tenants require assurances that their homes, other structures, and personal property, which have been impacted by contaminants, have been fully and fairly tested, have been restored to preloss condition, and have achieved clearance based on the minimum chemical screening levels to be established by the California Environmental Protection Agency.

(6) It is in the best interest of Californians to protect the health and safety of residents by ensuring that their properties are returned to a safe and habitable condition after suffering damage from wildfires, including smoke damage.

(7) While all property insurance policies that cover the peril of fire also cover smoke damage resulting from fire, the extent to which insurance companies are covering the remediation and restoration of properties has been inconsistent, and many residents are concerned that they will incur significant financial burden to remediate and restore their properties to preloss condition on their own.

(8) While remediation of smoke and contaminant damage is made more challenging due to the varying severity of smoke inundation on the exterior and interior of properties, regulatory standards for the minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration are vitally needed so that the Department of Insurance is able to enforce insurance companies’ remediation and restoration obligations and so that residential properties are rendered safe and habitable and restored to preloss condition.

(9) In response to the unprecedented damage caused by the January wildfires, in June 2025, Insurance Commissioner Ricardo Lara directed the Department of Insurance to lead a Smoke Claims and Remediation Task Force (Task Force), comprised of members representing consumers, public health, environmental health, fire safety, local governments, remediation and restoration specialists, industrial hygienists, and the insurance industry, to develop recommendations for uniform standards for the inspection, testing, and remediation of smoke damage in residential properties, and to determine the extent to which the remediation and restoration of those properties should be covered by residential property insurance policies. The Task Force met over several months in 2025 and has submitted its report of recommendations to the Insurance Commissioner.

(b) It is the intent of the Legislature to set forth standards and requirements for the minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildland-urban interface fire or urban conflagration to ensure the health and safety of residents and for the proper handling of residential property insurance claims resulting from those fires after consideration of the recommendations in the Task Force Report, as well as other relevant scientific and health-based sources.

SEC. 3.

Chapter 6.12 (commencing with Section 25405) is added to Division 20 of the Health and Safety Code, to read:

Chapter 6.12. Residential Property Wildfire Remediation and Restoration

25405.

(a) On or before June 30, 2027, the California Environmental Protection Agency shall develop health-based standards and requirements for minimum sampling, testing, and chemical screening levels for residential properties that have sustained smoke damage as a result of a wildfire, similar in scope to the “Residential Soil Evaluation: Guidance for the 2025 Los Angeles Wildfires,” developed by the Department of Toxic Substances Control, in coordination with the Department of Resources Recycling and Recovery. These standards and requirements shall include protocols, parameters, and thresholds for preremediation testing, postremediation testing, and clearance of a residential property for habitation after remediation is completed. In meeting the requirements of this section, the California Environmental Protection Agency shall consult with agencies that include, but are not limited to, the Department of Toxic Substances Control, Office of Environmental Health Hazard Assessment, State Air Resources Board, State Department of Public Health, air pollution control districts, and local public health departments, as necessary.

(b) The standards and requirements developed pursuant to subdivision (a) shall consider differences, if appropriate, based on the distance of a residential structure from the fire perimeter.

(c) The standards and requirements developed pursuant to subdivision (a) shall also consider, where appropriate, whether certain wildfire smoke byproducts and associated hazardous substances transform or dissipate with the passage of time.

(e) The California Environmental Protection Agency shall adopt regulations, pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, to implement or make more specific the provisions of this section.

(f) (1) The California Environmental Protection Agency may, in addition to the standards and requirements developed pursuant to subdivision (a), impose additional standards and requirements pertaining to a specific wildfire, including requirements that relate to the identification of additional wildfire contaminants, additional minimum sampling and testing recommendations or requirements, or additional chemical screening levels for residential properties that have sustained smoke damage.

(2) A requirement or recommendation adopted pursuant to paragraph (1) shall be exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing with Section 11370), Chapter 4.5 (commencing with Section 11400), and Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code).

(g) For purposes of this chapter:

(1) “Fire perimeter” means the footprint or entire outer boundary of a burned area as a result of a wildland-urban interface fire or urban conflagration, as determined and mapped by the Department of Forestry and Fire Protection.

(2) “Impact zone” means a ZIP Code that is either of the following:

(A) Within the fire perimeter, as described in paragraph (2) of subdivision (b) of Section 675.1 of the Insurance Code.

(B) Adjacent to the fire perimeter, as described in paragraph (2) of subdivision (b) of Section 675.1 of the Insurance Code, and downwind of the fire perimeter based on maps generated by the National Oceanic and Atmospheric Administration.

(3) “Person” means an individual, insurance company, association, organization, partnership, business trust, limited liability company, or corporation.

(4) “Restoration of the property to preloss condition” means the removal of smoke damage residues, combustion byproducts, chemicals, contaminants, and odor caused by wildfire smoke exposure through remediation and restoration of the property, including structural elements, building systems, contents, and indoor environment, to the same condition that existed before exposure.

(5) “Smoke damage” means exposure of residential property or its contents to wildfire smoke, combustion byproducts, and the chemicals and contaminants contained within the wildfire smoke.

(6) “Urban conflagration” means a massive, uncontrollable fire, regardless of cause, that spreads rapidly from building to building through densely populated, developed areas, typically overwhelming fire suppression resources. These fires are typically fueled by high winds, structural density, and flammable materials, often transitioning from wildland-urban interface fires into surrounding communities.

(7) “Wildfire” means a wildland-urban interface fire, or an urban conflagration, that has been designated and declared in a state of emergency pursuant to Section 8558 of the Government Code.

(8) “Wildland-urban interface fire” means a fire, regardless of cause, in the zone of transition between unoccupied land and human development, including the area or zone where structures and other human development meet or intermingle with undeveloped wildland or vegetative fuels creating significant fire risk to developed areas and a significant number of structures.

SEC. 4.

Chapter 7.5 (commencing with Section 105435) is added to Part 5 of Division 103 of the Health and Safety Code, to read:

Chapter 7.5. Wildfire Remediation and Restoration Certification and Training

105435.

(a) The Legislature finds and declares all of the following:

(1) The State Department of Public Health administers the Lead-Related Construction Program (Chapter 4 (commencing with Section 105250)).

(2) The Department of Industrial Relations, through its Division of Occupational Safety and Health, regulates asbestos-related work.

(3) The Contractors State License Board regulates contractors, including asbestos consultants, for asbestos abatement projects involving 100 square feet or more of surface area of asbestos-containing material.

(4) The State Water Resources Control Board administers the Environmental Laboratory Accreditation Act (Article 3 (commencing with Section 100825) of Chapter 4 of Part 1 of Division 101).

(b) On or before January 1, 2028, the California Environmental Protection Agency shall consult with the Department of Insurance, those agencies identified in subdivision (a), and any other state or local governmental agency, as may be necessary, to establish training and certification requirements for a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of a wildfire, including industrial hygienists, remediation and restoration professionals, and laboratories. The training and certification requirements shall be tailored to each category of persons depending on their role with regard to wildfire smoke damage.

(c) The California Environmental Protection Agency shall promulgate regulations to implement, administer, and enforce the training and certification requirements, establish rules for noncompliance, and determine which governmental entity or entities shall have jurisdiction over the different categories of persons who will be subject to the requirements.

(d) (1) The regulations adopted pursuant to subdivision (c) shall also establish the fees that will be required for the certification of a person who inspects, evaluates, samples, tests, analyzes, remediates, or restores residential properties that have sustained smoke damage as a result of wildfire. The fees imposed under this section shall be established at levels not to exceed an amount sufficient to cover the costs of administering and enforcing the requirements and regulations adopted under this section.

(2) Fees collected pursuant to this section shall be deposited into the Wildfire Remediation and Restoration Certification and Training Fund, which is hereby created in the State Treasury. Funds shall be available, upon appropriation by the Legislature, for the purposes described in paragraph (1).

(e) The definitions set forth in Section 25405 apply for purposes of this section.

SEC. 5.

Section 2060.1 is added to the Insurance Code, to read:

2060.1.

(a) An insurer shall not terminate coverage for additional living expenses for a covered smoke damage claim submitted under a policy of residential property insurance, as defined in Section 10087, as a result of a wildfire until the property has been cleared for habitation pursuant to the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code, subject to the applicable policy limit.

(b) The definitions set forth in Section 25405 of the Health and Safety Code apply for purposes of this section.

SEC. 6.

Section 2060.2 is added to the Insurance Code, to read:

2060.2.

(a) The standards and requirements developed by the California Environmental Protection Agency pursuant to Section 25405 of the Health and Safety Code shall apply to all covered smoke damage claims within the impact zone submitted under policies of residential property insurance as a result of a wildfire.

(b) In addition to the standards and requirements described in subdivision (a), if the California Environmental Protection Agency imposes additional requirements pertaining to a specific wildfire pursuant to subdivision (e) (f) of Section 25405 of the Health and Safety Code, including requirements that relate to the identification of additional wildfire contaminants, additional minimum sampling, and testing recommendations or requirements, or additional chemical screening levels for residential properties that have sustained smoke damage, then those standards and requirements shall also apply to all covered smoke damage claims submitted under policies of residential property insurance on properties that have sustained smoke damage as a result of a wildfire.

(c) An insurer shall be responsible for covering the cost of the sampling and testing that is required pursuant to the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code and this section, subject to the terms and provisions of the policy.

(d) This section does not preclude an insurer from covering sampling and testing that exceeds what is required pursuant to the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code.

(e) All of the following conditions shall apply to covered smoke damage claims resulting from a wildfire:

(1) If the insurer chooses to exercise its right to inspect the smoke-damaged property, the insurer shall inspect the property as soon as practicable, but no later than 30 calendar days after receiving notice of the claim. If the property is not accessible due to government restrictions, then the insurer shall inspect the property as soon as practicable, but no later than 30 calendar days after access to the property is granted.

(2) Unless the policyholder has agreed to permit the insurer, or the insurer’s contractor, to remediate and restore the damaged property to its preloss condition, the insurer shall pay the actual cash value of the cost to restore the damaged property to no less than its preloss condition as soon as practicable, but no later than 30 calendar days from the date the property was inspected.

(3) Unless the policyholder has agreed to permit the insurer, or the insurer’s contractor, to remediate and restore the damaged property to its preloss condition, under a policy of residential property insurance that requires payment of the replacement cost for a loss, after the actual cash value payment is made pursuant to paragraph (2), the insurer shall pay the undisputed amount of replacement cost to restore the damaged property to no less than its preloss condition, up to the applicable policy limits, within 15 calendar days from the date upon which the insured provides the insurer with a copy of a valid and executed contract with a licensed contractor to remediate and restore the damaged property to its preloss condition.

(4) A payment not made pursuant to the timeframes required by this subdivision shall accrue interest payable to the insured pursuant to Section 2057.

(f) If a smoke damage insurance claim is settled on the basis of a written scope or estimate prepared by or for the insurer, the insurer shall supply the claimant with a copy of each document upon which the settlement is based. The estimate prepared by or for the insurer shall be for an amount that will restore the damaged property to no less than its preloss condition and that shall allow for restoration to be completed in a manner that meets or exceeds the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code, all other laws and regulations applicable to the specific work being performed, and accepted trade and industry standards as long as these standards do not conflict with the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code. A vendor or contractor hired or referred by the insurer to prepare the written scope or estimate or to perform smoke damage restoration work shall have the requisite license, training, and certification mandated by the state with respect to smoke damage caused by wildfire in residential properties. The policyholder shall have the right to select the vendor or contractor to perform the restoration of the property.

(g) The department shall implement and enforce the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code as they pertain to its licensees and shall have the administrative authority to assess penalties for noncompliance. A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1.

(h) The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.

(i) The definitions set forth in Section 25405 of the Health and Safety Code apply for purposes of this section.

(j) This section applies to all policies of residential property insurance, as defined in Section 10087, issued, amended, or renewed on or after the operative date of this section.

(k) This section does not limit any other law or regulation, including the Unfair Trade Practices Act (Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1), Sections 2070 and 2071, and the Fair Claims Settlement Practices Regulations (Article 1 (commencing with Section 2695.1) of Subchapter 7.5 of Chapter 5 of Title 10 of the California Code of Regulations). The requirements of this section are in addition to, and do not supersede, modify, limit, or otherwise affect existing law and any obligations of insurers.

SEC. 7.

Section 14048 is added to the Insurance Code, immediately following Section 14047, to read:

14048.

(a) On or before January 1, 2028, the department shall develop a training and certification program for insurance adjusters in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties on behalf of insurers. The training and certification of insurance adjusters required by this section shall be based on the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code. An insurer, adjuster firm, or qualified manager shall train and accredit its adjusters in accordance with those standards and requirements. An insurance adjuster hired by an insurer to investigate or adjust wildfire smoke damage insurance claims shall have the requisite training and certification required by this section.

(b) The department shall implement and enforce the training and certification program developed pursuant to subdivision (a) and shall have the administrative authority to assess penalties for noncompliance. A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1, in addition to any other disciplinary proceedings provided in this chapter.

(c) The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.

(d) For purposes of this section, “insurance adjuster” includes all of the following persons:

(1) Persons licensed pursuant to this chapter.

(2) Employees of persons licensed pursuant to this chapter who perform insurance adjusting activities, as described in Section 14021.

(3) Employees of an insurer who perform insurance adjusting activities, as described in Section 14021.

(e) The definitions set forth in Section 25405 of the Health and Safety Code apply for purposes of this section.

SEC. 8.

Section 15009.2 is added to the Insurance Code, to read:

15009.2.

(a) On or before January 1, 2028, the department shall develop a training and certification program for public insurance adjusters, as defined in Section 15007, in inspecting, evaluating, sampling, or testing smoke damage caused by a wildfire involving residential properties on behalf of insureds. The training and certification of public insurance adjusters required by this section shall be based on the standards and requirements developed pursuant to Section 25405 of the Health and Safety Code. A public adjuster hired by an insured to adjust smoke damage claims shall have the requisite license, training, and certification, as required by this section.

(b) The department shall implement and enforce the training and certification program developed pursuant to subdivision (a) and shall have the administrative authority to assess penalties for noncompliance. A violation of this section shall be an unfair practice subject to Article 6.5 (commencing with Section 790) of Chapter 1 of Part 2 of Division 1, in addition to any other disciplinary proceedings provided in this chapter.

(c) The department may adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code as necessary to implement or make specific this section.

(d) The definitions set forth in Section 25405 of the Health and Safety Code apply for purposes of this section.

SEC. 9.

This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

There are no existing standards with regard to the handling of wildfire smoke damage insurance claims, which has resulted in unfair and inconsistent handling by insurers to the detriment of the residents of this state who are being forced to return to smoke-damaged residential properties that have not been properly restored and cleared for habitation. Therefore, the Legislature finds that it is necessary that this act take effect immediately.