Survivor Pushback Reshapes Wildfire-Liability Proposal – SB 492 Dies on the Final Day
A weeks-long fight over CA wildfire liability ended without a new law. Governor Newsom's original proposal drew strong opposition from wildfire survivors, consumer advocates, insurers and lawmakers over provisions that could have limited non-economic damages, restricted insurers' ability to recover losses from utilities through subrogation, and created geographic distinctions among survivors. Eaton Fire survivors and allied groups traveled to Sacramento, protested outside the Governor's Mansion and pressed lawmakers to preserve full legal rights and make any fast-pay process voluntary. By August 31, negotiations had stripped many of the most controversial limits from the package: the compromise preserved survivors' ability to seek full damages and insurers' subrogation rights while adding a voluntary fast-pay structure and other reforms. But SB 492 ultimately died on the final day of session when the Assembly did not take it up for a vote. The result is twofold: survivors succeeded in blocking several proposed restrictions, but the final liability package itself did not become law. Lawmakers have indicated the broader utility-liability debate will return.
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