Section 25395.42 Of Article 8.7. California Financial Assurance And Insurance For Redevelopment Program From California Health And Safety Code >> Division 20. >> Chapter 6.8. >> Article 8.7.
25395.42
. (a) The secretary shall expend the funds from the Cleanup
Loans and Environmental Assistance to Neighborhoods Account
established pursuant to Section 25395.20 that are made available in
the annual Budget Act for expenditure to subsidize the cost of the
environmental insurance products offered by the insurance company
selected pursuant to subdivision (b) of Section 25395.41, in
accordance with subdivision (b).
(b) The secretary shall provide the following subsidies, in
accordance with the application process specified in Section
25395.43, from the funds made available pursuant to subdivision (a):
(1) Up to 50 percent of the cost of the premiums for the
environmental insurance products provided pursuant to subdivision (c)
of Section 25395.41.
(2) (A) Up to 80 percent of the self-insured retention amount of
the cost overrun insurance provided pursuant to subdivision (c) of
Section 25395.41, up to a maximum of five hundred thousand dollars
($500,000).
(B) The secretary may expend the funds available to pay a portion
of the self-insured retention amount of the cost overrun insurance
provided pursuant to subdivision (b) of Section 25395.41 only under
all of the following conditions:
(i) The insured demonstrates that it exercised reasonably prudent
business judgment in insuring the cost overrun, consistent with an
attempt to minimize the incurred costs, and incurred the costs
through no fault of its own.
(ii) The insured pays, at a minimum, the first 20 percent of the
self-insured retention amount.
(iii) The secretary determines that the amount of the payment is
in the best interests of the state, taking into account the
environmental and economic benefits of the specified project, as
compared to the benefit of conserving funds for assistance at other
sites.