Bill
Bill > SB1553
OR SB1553
OR SB1553Relating to wildfires resulting from the fault of an electric company; declaring an emergency.
summary
Introduced
02/02/2026
02/02/2026
In Committee
02/19/2026
02/19/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Legislative Measures
Bill Summary
The statement includes a measure digest written in compliance with applicable readability standards. Digest: Bans the recoupment of certain costs that a power company incurs from claims based on a wildfire. (Flesch Readability Score: 65.1). Prohibits an electric company from recovering from retail electricity consumers certain liti- gation or settlement costs or expenses if a court or jury finds that a wildfire resulted from the negligence or a higher degree of fault on the part of the electric company. Requires an electric company that has been found to be liable for damages in a civil action arising out of allegations that the conduct of the electric company caused or substantially contrib- uted to a wildfire to establish and maintain a qualified escrow fund for the benefit of those persons to whom the electric company is found to be liable. Provides that an electric company that is found to be liable for damages in a civil action arising out of allegations that the conduct of the electric company caused or substantially contributed to a wildfire shall also be liable for any federal income tax liability that a plaintiff or class member owes or pays on amounts the plaintiff or class member receives in relation to the civil action. Provides jurisdiction to the Supreme Court to hear and determine all appeals from the circuit court in any civil action arising out of allegations that the conduct of the electric company caused or substantially contributed to a wildfire. Establishes the Wildfire Recovery Fund , to become operative January 1, 2027 . Directs that 60 percent of the punitive damages awarded in a civil action arising out of allegations that the conduct of the electric company caused or substantially contributed to a wildfire be deposited in the Wildfire Recovery Fund. Reserves the first $50 million deposited in the fund to be payable to the Criminal Injuries Compensation Account. Applies to wildfires ignited on or after January 1, 2020, and before January 1, 2025. Declares an emergency, effective on passage.
AI Summary
This bill prohibits electric companies that serve over 25,000 retail electricity consumers from recovering certain costs from those consumers if a wildfire is found to be caused by the company's negligence or a higher degree of fault. Specifically, companies cannot pass on costs associated with civil judgments, fines, penalties, or more than half of settlement costs related to such wildfires, nor can they recover litigation expenses from these cases. If an electric company is found liable for damages from a wildfire, it must establish and maintain a "qualified escrow fund" with a financially stable, unaffiliated institution to cover potential judgments for those harmed, with the Public Utility Commission overseeing this fund. Furthermore, the electric company will be responsible for any federal income tax liability incurred by plaintiffs or class members on amounts received as compensation from these wildfire-related civil actions. The bill also establishes a "Wildfire Recovery Fund" that will receive 60% of any punitive damages awarded in these cases, with the first $50 million deposited to be allocated to the Criminal Injuries Compensation Account. These provisions apply to wildfires ignited between January 1, 2020, and January 1, 2025, and the bill declares an emergency, meaning it takes effect immediately upon passage.
Committee Categories
Justice
Sponsors (4)
Last Action
Referred to Rules by order of the President. (on 02/19/2026)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
Loading...