Newsom pitches faster wildfire payouts, but you’d lose your right to sue
The California governor says the status quo "is not going to work." One critic blasted it as a "massive transfer of liability."
California Governor Gavin Newsom is proposing a plan to speed up payments to wildfire victims while limiting the financial risk for utility companies. The bill would require utilities to pay out more quickly, instead of the current system in which victims wait. This comes as the state faces the prospect of running out of funds for the wildfire relief fund soon.
Newsom's proposal includes making insurance companies shoulder a larger portion of the damage, as well as fining utility shareholders and CEOs if their companies spark a wildfire resulting in over $1 billion in damage. Critics argue that the plan puts too much burden on utilities and insurance companies, and that fire survivors should bear the brunt of the responsibility. The governor says the status quo is not working for victims, who consistently receive payment last.
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