The Continuation Account - Wildfire - Public Utilities - CA

Section § 3298

This law establishes the Continuation Account as part of the Wildfire Fund, managed independently from other funds. It specifies that the account's money is dedicated exclusively to the goals outlined in Chapter 5, which starts at Section 3299.

Revenues are added to this account from three main sources: yearly and extra contributions from large electrical companies, fees paid by their customers through a special charge, and certain bond proceeds.

The funds in this account are continuously accessible by the administrator, bypassing typical fiscal year rules, for Chapter 5's purposes. The management should prioritize using company contributions over customer fees when possible. The account will be closed when resources run out, factoring in any outstanding liabilities and charges, and all remaining finances will be used to settle claims and expenses before closing.

(a) There is hereby created the Continuation Account in the Wildfire Fund, which is hereby continued in existence, which is administered by the administrator. Moneys and invested assets in the account are separate and distinct from any moneys in the fund and shall be allocated solely for purposes of Chapter 5 (commencing with Section 3299).

(b) All of the following revenues shall be deposited into the account:

(1) The annual contribution and any additional contribution from a large electrical corporation pursuant to Section 3299.3.

(2) Revenues generated from the ratepayers of each large electrical corporation through a nonbypassable charge extended by the commission pursuant to Section 3299.2.

(3) Proceeds of bonds allocated to the account as provided in Section 80540 of the Water Code.

(c) Notwithstanding Section 13340 of the Government Code, the moneys in the account are continuously appropriated, without regard to fiscal years, to the administrator for purposes of Chapter 5 (commencing with Section 3299).

(d)

(1) To the extent practicable, the administrator shall manage the account to prioritize the use of contributions from large electrical corporations before the use of contributions from ratepayers.

(2) The account shall terminate when the administrator determines that the resources are exhausted, taking into account the amount of any unpaid liability, including necessary reserves, any unpaid annual contributions and additional contributions from large electrical corporations, and the nonbypassable charge authorized pursuant to Section 3299.2. Upon the determination of the administrator that the account shall be terminated, the administrator shall pay all remaining eligible claims and account expenses, and liquidate any remaining assets.

Wildfire Fund Continuation Account Chapter 5 purposes ...

Section § 3298.1

This law allows an administrator to manage an account with the oversight of the council. The administrator can hire and contract necessary professionals, enter contracts, and manage investments according to specific government code provisions. They are also responsible for approving claims, providing funds to large electrical corporations for valid claims, purchasing insurance, and recovering owed amounts. Additionally, the administrator can handle operational expenses and undertake related activities as approved by the council.

The administrator shall carry out the duties of this part and may do all of the following, subject to the oversight of the council:

(a) Retain, employ, or contract with officers, experts, employees, accountants, actuaries, financial professionals, and other executives, advisers, consultants, attorneys, and professionals as may be necessary in the administrator’s judgment for the efficient operation and administration of the account.

(b) Enter into contracts and other obligations relating to the operation, management, and administration of the account.

(d) Review and approve claims and settlements, and provide funds to large electrical corporations for the purposes of paying eligible claims.

(e) Buy insurance or take other actions to maximize the claims-paying resources of the account.

(f) Pay costs, expenses, and other obligations of the account from account assets.

(g) Take any actions necessary to collect any amounts owing to the account from large electrical corporations.

(h) Undertake other activities related to the operation, management, and administration of the account, as approved by the council.

administrator duties council oversight professional contracts ...

Section § 3298.2

This law provides limited civil immunity and no criminal liability for actions taken in an official capacity, as long as they are done in good faith and without fraudulent intentions, by the council, administrators, officers, employees, or agents. Additionally, it states that the State of California is not responsible for paying claims that exceed available funds and has no obligation to cover claims or costs that stem from this part, unless specified in this chapter.

There shall be a limited civil immunity, and no criminal liability in a private capacity, as a result of any act performed or omitted or obligation entered into in an official capacity, when done or omitted in good faith and without intent to defraud, on the part of the council, the administrator, or on the part of any officer, employee, or agent of the account. The State of California shall have no liability for payment of claims in excess of funds available pursuant to this part. The State of California, and any of the funds of the State of California, shall have no obligations whatsoever for payment of claims or costs arising from this part, except as specifically provided in this chapter.

limited civil immunity official capacity good faith actions ...

Section § 3298.3

If it's determined that more money is needed each year, the administrator has to create a plan for managing and operating the account, which must be approved by the council. This plan needs to be shown to certain legislative committees at least once a year. The plan should detail the account's assets, its ongoing viability, its effectiveness, and what to do if the account is forecasted to run out of money within three years.

Upon the determination by the administrator that additional annual contributions are necessary pursuant to Section 3299.1, the council shall direct the administrator to prepare and present for approval a plan of operations related to the operations, management, and administration of the account on an annual basis. At least annually, the council shall direct the administrator to present the plan of operations to the appropriate policy committees of the Legislature. The plan of operations shall include, but not be limited to, reporting on the account assets, projections for the durability of the account, the success of the account, whether or not the account is serving its purpose, and a plan for winding up the account if projections demonstrate that the account will be exhausted within the next three years.

annual contributions account management plan of operations ...

Section § 3298.4

This law allows the Director of Finance to review the financial documents and records of the council and administrator whenever they want. This is to ensure proper management and administration of the account.

The Director of Finance may, at any time, examine the books and records of the council and the administrator relating to the operation, management, and administration of the account.

Director of Finance financial examination books and records review ...

Section § 3298.5

This law requires that every year, starting from January 1 after additional annual contributions are necessary, the council, with help from the administrator, must prepare reports on how an account is formed, run, and managed. These reports are to be filed with the Legislature and the Department of Finance.

The reports submitted to the Legislature have to comply with certain Government Code requirements.

(a) On January 1 of the year following the date on which the administrator determines that additional annual contributions are necessary pursuant to Section 3299.1, and annually thereafter, the council, with the assistance of the administrator, shall prepare and file with the Legislature and the Department of Finance reports regarding the formation, administration, and disposition of the account.

(b) A report submitted to the Legislature pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

annual contributions reporting account formation account administration ...

Section § 3298.6

This law will stop being effective if a big electric company chooses not to take part as described in another section. It will officially be removed from the books on January 1 of the year after the commission informs everyone about this decision.

This chapter shall become inoperative if a large electrical corporation elects not to participate pursuant to Section 3299 and is repealed on January 1 of the year following the notification by the commission pursuant to subdivision (c) of Section 3299.

large electrical corporation non-participation repeal ...