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 Bill Text - SB-1041 Voluntary contractual assessments: wildfire safety improvements.

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 |Add To My Favorites |Track Bill | Version: 04/27/26 - Amended Senate
 03/19/26 - Amended Senate
 02/11/26 - Introduced

 SB-1041 Voluntary contractual assessments: wildfire safety improvements.(2025-2026)

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 Date Published: 04/27/2026 02:00 PM

SB1041:v97#DOCUMENTBill Start

 Amended
 IN 
 Senate
 April 27, 2026

 Amended
 IN 
 Senate
 March 19, 2026

 CALIFORNIA LEGISLATURE—
 2025–2026 REGULAR SESSION

 Senate Bill

No. 1041

Introduced by Senator Arreguín

February 11, 2026

An act to amend Section 5899.4 of, and to amend and repeal sections Sections 5898.16, 5898.17, 5902, 5913, and 5954 of, and to amend, repeal, and add Section 5899.4 of, the Streets and Highways Code, relating to local government.

LEGISLATIVE COUNSEL'S DIGEST

SB 1041, as amended, Arreguín.
 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.
 Zone. 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 would, until January 1, 2035, 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,
 consisting of Class A fire-rated roofs, enclosed eaves, fire-resistant vents, multipane windows, and other wildfire safety improvements ident