(a) For purposes of this section, the following terms have the following meanings:

1. (1) “Burn boss” means either of the following:

   1. (A) A person certified pursuant to Section 4477 to conduct prescribed burning operations and to enter into contracts related to prescribed burning operations.
   2. (B) A person qualified for the National Wildfire Coordinating Group position title of “Prescribed Fire Burn Boss Type 1” or “Prescribed Fire Burn Boss Type 2.”
2. (2) “Cultural burn” has the same meaning as set forth in Section 3333.8 of the Civil Code.
3. (3) “Cultural fire practitioner” has the same meaning as set forth in Section 3333.8 of the Civil Code.
4. (4) “Fund” means the Prescribed Fire Claims Fund established pursuant to subdivision (c).
5. (5) “Program” means the Prescribed Fire Liability Pilot Program established pursuant to subdivision (b).

(c)

1. (1)

   1. (A) The Prescribed Fire Claims Fund is hereby created in the State Treasury to support coverage for losses from prescribed fires and cultural burning by nonpublic entities, such as cultural fire practitioners, private landowners, and nongovernmental entities. The moneys in the fund shall be under the control of the department, and the department, or the third-party administrator with whom the department contracts pursuant to subdivision (d), is authorized to direct payments for claims from the fund, consistent with this section and the guidelines adopted by the department pursuant to subdivision (e).
   2. (B) Upon order of the Department of Finance, the amount in Item 3540-102-0001 of the Budget Act of 2021 (Chapter 240 of the Statutes of 2021) shall be transferred into the fund.
   3. (C) Notwithstanding Section 13340 of the Government Code or any other law, all moneys deposited or transferred into the fund, including pursuant to subparagraph (B), shall be continuously appropriated, without regard to fiscal years, to the department for purposes of this section.

2. (2)

   1. (A) Except as provided in subparagraph (B), notwithstanding any other law, the Controller may use moneys in the fund for cash flow loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. Interest shall be paid on all moneys loaned to the General Fund and shall be computed at a rate determined by the Pooled Money Investment Board to be the current earning rate of the fund.
   2. (B) This paragraph does not authorize any transfer that would interfere with the department’s ability to carry out the purposes of this section.

(d)

1. (1) The department may contract with any entity, including another state agency, to serve as a third-party administrator to administer or to assist in administering the fund, including, but not limited to, managing and operating the fund, adjusting claims made to the fund, and paying claims from the fund. Subject to prior written approval by the Insurance Commissioner pursuant to Section 1063.19 of the Insurance Code, the California Insurance Guarantee Association may serve as a third-party administrator of the fund. Participation by the California Insurance Guarantee Association shall be governed by the Insurance Commissioner’s authority over its Plan of Operation, pursuant to Article 14.2 (commencing with Section 1063) of Chapter 1 of Part 2 of Division 1 of the Insurance Code.
2. (2) A third-party administrator with whom the department contracts pursuant to this subdivision, including the California Insurance Guarantee Association, is prohibited from settling or adjusting any claims to the fund while seeking to subrogate against the fund.

3. (3)

   1. (A) Notwithstanding any other law, advertising, competitive bidding, and protest requirements, and the requirement for Department of General Services approval, do not apply to a contract of no more than three years entered into by the department in the 2022–2023 fiscal year with a third-party administrator pursuant to this subdivision. However, subsequent contracts shall be awarded in accordance with applicable state laws and policies.
   2. (B) In the event that a third-party administrator with whom the department contracts with pursuant to this subdivision, including the California Insurance Guarantee Association, is prohibited by law from settling or adjusting any claims to the fund as a result of seeking to subrogate against the fund, the department may award a contract to a new third-party administrator for the limited purpose of settling and adjusting those claims only and that contract shall not be subject to existing advertising, competitive bidding, and protest requirements, or the requirement for Department of General Services approval.

(e) The department shall collaborate with other relevant state agencies, cultural fire practitioners, and burn bosses to establish guidelines governing the program and the administration of the fund, including the payment of claims from the fund. The guidelines shall include, at a minimum, all of the following requirements:

1. (1) An eligible claim shall relate to either of the following:

   1. (A) A prescribed fire conducted or supervised by a burn boss.
   2. (B) A cultural burn conducted or supervised by a cultural fire practitioner.

2. (2) A claim shall not be paid from the fund unless, at a minimum, all of the following conditions are met:

   1. (A) The department reviewed and approved a burn plan before the prescribed fire or cultural burning.
   2. (B) A burn permit, if required, and all other permits required to conduct the prescribed fire or cultural burn were obtained.
   3. (C) The department determines that the prescribed fire or cultural burn complied with, as applicable, the terms and conditions of all burn plans, burn permits, and other permits required to conduct the prescribed fire or cultural burn.
3. (3) The maximum amount the fund shall pay for losses arising from any one prescribed fire or cultural burn event is two million dollars ($2,000,000). For purposes of this paragraph, “losses arising from any one prescribed fire or cultural burn event” means all activities conducted pursuant to any one burn plan and, if required, burn permit.