AB 226: California FAIR Plan Association.

The bill aims to add new sections to the government code and the insurance code to enhance the California Fair Plan Association's operations. The association, which administers a program for basic property insurance, can now request the California Infrastructure and Economic Development Bank to issue bonds to finance claim costs and increase liquidity and claims-paying capacity. The bank can issue these bonds and loan the proceeds to the association, which can enter into loan agreements and line of credit agreements with the bank. If the association is unable to meet its repayment obligations, it must assess its members to pay in full. The association can secure the bonds and agreements with a statutory lien. The bill also establishes an appropriation of additional revenues into the California Infrastructure and Economic Development Bank Fund. The bill declares that it will take effect…