SB 222: Climate disasters: civil actions.

(1)Existing law gives a person the right of protection from bodily harm and the right to possess and use property. If a person suffers bodily harm or a loss of their property because of the unlawful act or omission of another, existing law authorizes them to recover compensation from the person at fault, which is known as damages.

This bill would authorize a person to bring a civil action, if specified criteria are met, including damages of $10,000 or more, against a party responsible for a climate disaster or extreme weather or other events attributable to climate change due to the responsible partys misleading and deceptive practices or the provision of misinformation or disinformation about the connection between its fossil fuel products and climate change and extreme weather or other events attributable to climate change. The bill would make responsible parties jointly, severally, and strictly liable to a plaintiff for the climate disaster or extreme weather or other events attributable to climate change. The bill would set forth venue requirements and prohibited defenses for that action, and would require the court to award a prevailing plaintiff the full extent of noneconomic, compensatory, and punitive damages allowable, as specified. The bill would provide that the connection of a climate disaster, extreme weather or other events attributable to climate change, or harms resulting from long-term changes to the climate system to alleged injuries are an injury in fact for all residents of the state harmed by the event and would give those persons standing to bring a civil action pursuant to the above-described provisions. The bill would also make a person who seeks declaratory or injunctive relief to prevent enforcement of the above-described provisions or any other related law, as specified, jointly and severally liable to pay the attorneys fees and costs of the prevailing party, as specified.

(2)Existing law generally regulates the business of insurance in the state. The California FAIR Plan Association is a joint reinsurance association in which all insurers licensed to write basic property insurance participate in administering a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Under existing law, a member insurer participates in the writings, expenses, and profits and losses of the association in proportion to its written premiums, as specified. Existing law authorizes the association, with the Insurance Commissioners approval, to assess member insurers in amounts sufficient to operate the association.

This bill would authorize an insurer to seek damages against a responsible party for a climate disaster, pursuant to the above-described provisions. Within 90 calendar days of its operative date, the bill would require the commissioner to establish an independent advisory body of industry experts to conduct cost-benefit analyses of the effect of a climate disaster, or extreme weather or other events attributable to climate change, on the association. The bill would require the association to exercise its right of subrogation against a responsible party for a climate disaster or extreme weather or other events attributable to climate change, if the association pays claims and the independent advisory body determines the benefits of subrogation outweigh the costs. The bill would authorize the association to assess member insurers in amounts if the claims paid after a climate disaster or extreme weather or other events attributable to climate change exhaust the associations claims-paying capacity, but would provide for adjusting an assessment amount if the insurer does or does not exercise its right of subrogation against a responsible party.

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