The bill establishes new provisions regarding the liability of electric public utilities for damages resulting from fire events. It defines key terms such as "fire claim" and "fire event," and stipulates that claims must be filed within two years of the damage occurrence, with a maximum time limit for filing. Plaintiffs who successfully prove their case may recover both economic and noneconomic damages, but punitive damages are capped at $5,000,000.

Additionally, the bill mandates the state corporation commission to convene a workshop by July 31, 2026, to evaluate wildfire risks and mitigation strategies. This workshop will address general wildfire risks, utility preparedness, risk mitigation strategies, and cost recovery for wildfire mitigation expenses. The commission is also authorized to conduct further investigations or additional workshops as needed to assess these issues comprehensively.