Governor Vetoes SB 877 and SB 878 Wildfire Insurance Bills
Governor Newsom vetoed SB 877 and SB 878, authored by Senator Pérez and sponsored by EFSN and Consumer Watchdog. SB 877 addressed disclosure of insurers’ original and revised damage estimates; SB 878 addressed written claim decisions, payment timing and protections against delayed payments. Both passed the Legislature with broad bipartisan support, and the insurance industry had dropped its opposition. The vetoes prompted allegations of political retaliation because EFSN and Consumer Watchdog had just led a high-profile campaign against Newsom’s late-session proposal to limit utilities’ wildfire liability. Survivor groups argued that the timing was suspicious, particularly because the bills had bipartisan support and no remaining industry opposition. Senator Pérez also questioned whether “politics and petty infighting” influenced the decision, although there is no direct evidence that this decision from the Governor was due to retaliation. Newsom said the bills duplicated existing Department of Insurance rules and guidance whereas EFSN and Consumer Watchdog dispute that.