AMENDED IN ASSEMBLY MARCH 18, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

98

Introduced by Assembly Members Ortega and Calderon

February 12, 2026

An act to add Section 2033.1 to the Insurance Code, relating to insurance.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the department’s powers and duties. Existing law establishes the California Safe Homes grant program to be developed by the department to, among other things, reduce local and statewide wildfire losses. Existing law requires the department to prioritize specified needs when awarding grant funds and requires eligible program applicants, which include individuals, cities, counties, and special districts, to meet specified criteria.

This bill would, for purposes of the program, require the department to develop standardized procedures and processes processes, on or before July 1, 2027, for the selection of contractors and award of grant funds to perform specified categories of wildfire mitigation work. The bill would impose specified wage requirements on a contractor who performs any work under these procedures and processes. The bill would prohibit a contractor from being prequalified for, shortlisted for, or awarded a contract unless they provide an enforceable commitment that they will use a skilled and trained workforce to perform all work that falls within an apprenticeable occupation in the building and construction trades, as specified. The bill would impose various requirements on contractors and subcontractors, including requiring each to hold a valid, applicable license issued by the appropriate regulatory entity in this state for the specific task being funded by the program.

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

SECTION 1.

The Legislature finds and declares all of the following:

(a) The efficient and economical completion of high-quality construction projects is supported by the use of skilled labor with appropriate certifications, licenses, and training.

(b) The on-schedule completion of these projects is essential to meet the needs of the state and to avoid increased costs caused by construction delays.

(c) The use of skilled labor improves the quality and durability of completed work.

(d) Mitigation grant programs in jurisdictions outside of California have demonstrated the benefits of fostering a skilled workforce on the types of construction necessary to implement public and private projects that address public policy goals.

SEC. 2.

Section 2033.1 is added to the Insurance Code, to read:

2033.1.

(a) The department shall develop standardized procedures and processes processes, on or before July 1, 2027, for the selection of contractors and award of grant funds to perform the following categories of wildfire mitigation work funded under the California Safe Homes grant program:

(1) The alteration or removal of trees and vegetation in the immediate five feet around the exterior of an insured structure.

(2) The construction of a Class-A Wildfire Rated roof for an insured structure.

(3) The construction of noncombustible surfaces or fences within the immediate five feet around the exterior of an insured structure.

(4) The installation of double-paned windows or fireproof exterior shutters for windows on the exterior of an insured structure.

(b) A contractor who enters into a contract to perform any work under the procedures and processes developed pursuant to subdivision (a), or who accepts any California Safe Homes grant funds, shall do all of the following:

(1) Pay each construction worker employed in the execution of the work, at minimum, the general prevailing rate of per diem wages, except that an apprentice registered in a program approved by the Chief of the Division of Apprenticeship Standards shall be paid, at minimum, the applicable apprentice prevailing rate.

(2) Maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided in that section.

(3) Biannually, on July 1 and December 31 of each year, submit to the department digital copies of its certified payroll records for projects subject to this section. The department shall retain these records as public records for five years.

(c) (1) A contractor shall not be prequalified for, shortlisted for, or awarded a contract pursuant to this section unless the contractor provides an enforceable commitment to the department that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code.

(2) Paragraph (1) shall not apply if all work on the project is subject to a project labor agreement that requires the use of a skilled and trained workforce.

(3) For purposes of this subdivision, “project labor agreement” has the same meaning as defined in Section 2500 of the Public Contract Code.

(d) In addition to any other contractor requirements under this section, the contractor and each subcontractor shall do all of the following:

(1) Hold a valid, applicable license issued by the appropriate regulatory entity in this state for the specific task being funded by the program. That license shall be unrestricted and free from all ongoing disciplinary action.

(2) Independently hold insurance that complies with the minimum coverages required under state law.

(3) Comply with all applicable state and federal workers’ compensation laws.

(4) Hold all other licenses or permits necessary, as required by the laws of this state, to complete the work to be performed pursuant to this section.

(5) Avoid conflicts of interest in any work performed using grant funds awarded under the program.

(6) Agree to follow all procedures and processes established by the department for purposes of the program.

(7) Provide documentation of the completed work to the department.

(e) The commissioner may, from time to time, adopt, amend, or repeal regulations to implement the provisions of this section.