Increase Access Homeowner's Insurance Enterprise

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0620.01 Brita Darling x2241 SENATE BILL 26-155
Senate Committees House Committees
Finance
A BILL FOR AN ACT
CONCERNING INCREASING THE AV AILABILITY OF HOMEOWNER 'S101
INSURANCE IN THE STATE.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill creates the strengthen Colorado homes enterprise
(enterprise), which is a government-owned business created in the
division of insurance (division) in the department of regulatory agencies.
The enterprise is governed by a 7-member board (board), including the
commissioner of insurance (commissioner), or their designee; members
with expertise in home hardening and resilient roof systems; and members
SENATE SPONSORSHIP
Mullica,
HOUSE SPONSORSHIP
McCluskie and Brown,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
representing the interests of insurance companies, consumers, and
counties.
The primary purpose of the enterprise is to impose and collect an
annual fee (fee) from an insurance company that offers multiperil
homeowner's insurance policies in the state (insurer) to reduce risks and
losses to insurers that pay the fee by using fee revenue to provide grants
to homeowners (grants) to defray the cost of retrofitting residential
property by purchasing and installing resilient roof systems. In awarding
grants, the board shall prioritize homes that are the homeowner
applicant's (applicant) primary residence and shall consider other criteria,
including applicant income, the age of the roof, the size of the home, the
number of grant applicants, and whether the applicant lives in a location
that has historically had a higher susceptibility to extreme weather events.
In order to ensure the necessary workforce, fee revenue may also be used
to award grants to defray the costs of training and certification related to
installing and certifying resilient roof systems. A contractor that is
awarded bids and receives money from a grant is prohibited from waiving
homeowner's insurance deductibles.
In addition, fee revenue shall be used for contracting with the
division to conduct or contract for a study to analyze insurance risk in
high-risk wildfire areas of the state, including an analysis of market
competition in those areas and the impact of a high risk program on the
potential losses and the availability of homeowner's insurance in those
areas.
Beginning in the 2027 calendar year, the amount of the insurer fee
imposed and collected by the enterprise is an amount equal to 0.5% of the
total premium collected by an insurer on multiperil homeowner's
insurance policies in the state in the immediately preceding calender year.
The insurer shall not surcharge the fee amount to policyholders. The
enterprise may lower or cease collecting the fee from an insurer in any
calendar year if the commissioner determines that the insurer paying the
fee would become insolvent and notifies the board.
The board shall adopt rules and policies for the regulation of the
enterprise's affairs and the conduct of enterprise business, including
standards for resilient roof systems and standards for
contractor-specialized training in the installation of impact-resistant roof
systems.
Beginning with rate filings submitted on and after January 1, 2027,
an insurer offering multiperil homeowner's insurance for property or risks
located in the state shall demonstrate in the insurer's rate filings that
savings from the installation of resilient roof systems are passed through
to homeowners through the application of discounts or reduced premiums
on homeowner's insurance policies.
SB26-155-2-
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 20 to article2
4 of title 10 as follows:3
PART 204
STRENGTHEN COLORADO HOMES ENTERPRISE5
10-4-2001. Legislative declaration.6
(1) THE GENERAL ASSEMBLY:7
(a) FINDS AND DETERMINES THAT:8
(I) INCREASED GREENHOUSE GAS EMISSIONS AND RAPIDLY RISING9
TEMPERATURES ARE CHANGING THE CLIMATE IN WAYS THAT THREATEN10
COLORADO'S ECONOMY, THE HEALTH OF ITS RESIDENTS, AND ITS NATURAL11
LANDSCAPE;12
(II) T HESE TEMPERATURE INCREASES HAVE AN IMPACT ON13
COLORADO'S ENVIRONMENT, WITH DROUGHT, HEAT WAVES, WINDSTORMS,14
WILDFIRES, HAIL, AND OTHER EXTREME WEATHER EVENTS INCREASING IN15
RECENT YEARS;16
(III) THE ECONOMIC IMPACTS OF THESE INCREASINGLY FREQUENT17
AND SEVERE WEATHER EVENTS ARE SIGNIFICANT;18
(IV) COLORADO PROPERTY OWNERS ARE FACED WITH CHALLENGES19
IN FINDING INSURANCE COVERAGE AND INCREASING INSURANCE20
PREMIUMS, UNDERMINING THE ABILITY TO PURCHASE , SELL, AND OWN A21
HOME;22
(V) THERE IS A NEED IN THE STATE TO ENCOURAGE INVESTMENTS23
IN HOME HARDENING, WHICH MEANS MAKING HOMES AND COMMUNITIES24
MORE RESILIENT TO EXTREME WEATHER EVENTS SUCH AS HAIL ,25
WINDSTORMS, AND WILDFIRE , AND INCLUDES SCIENCE -BASED HAIL AND26
WIND MITIGATION MEASURES DESIGNED TO REDUCE INSURER LOSSES;27
SB26-155-3-
(VI) MAKING INVESTMENTS IN HOME HARDENING WILL IMPROVE1
INSURERS' FINANCIAL STABILITY BY DECREASING LOSSES THAT WOULD2
OTHERWISE BE PAID BY THE INSURERS;3
(VII) INVESTMENTS IN HOME HARDENING WILL ALSO ENCOURAGE4
INSURER PARTICIPATION AND INCREASE COMPETITION IN THE INSURANCE5
MARKET TO OFFER COVERAGE THROUGHOUT THE STATE TO ALL6
COLORADANS, RESULTING IN LONG-TERM SAVINGS FOR HOMEOWNERS AND7
INSURERS;8
(VIII) TARGETING HOMES IN HIGH-RISK AREAS FOR INVESTMENTS9
IN HOME HARDENING WILL IMPROVE THE OVERALL STABILITY OF THE10
HOMEOWNER'S INSURANCE MARKET FOR INSURERS; AND11
(IX) A CCORDINGLY, IT IS APPROPRIATE TO FINANCE A HOME12
HARDENING PROGRAM THROUGH A FEE IMPOSED ON INSURERS THAT OFFER13
MULTIPERIL HOMEOWNER'S INSURANCE POLICIES IN THE STATE; AND14
(b) DECLARES THAT:15
(I) T HE STRENGTHEN COLORADO HOMES ENTERPRISE PROVIDES16
VALUABLE BUSINESS SERVICES AND BENEFITS TO INSURERS WHEN , IN17
EXCHANGE FOR PAYMENT OF THE FEE DESCRIBED IN SECTION 10-4-2003,18
THE ENTERPRISE USES THE FEE REVENUE TO PROVIDE GRANTS TO19
HOMEOWNERS TO FORTIFY THE ROOFS OF INSURED PROPERTY AND20
OTHERWISE MITIGATE THE RISK OF LOSSES TO INSURED PROPERTY21
RESULTING FROM NATURAL DISASTERS AND EXTREME WEATHER ,22
INCLUDING HAIL AND WINDSTORMS, THUS REDUCING RISK AND LOSSES TO23
INSURERS IN THE STATE THAT PAY THE FEE;24
(II) BY PROVIDING THE BENEFITS AND SERVICES SPECIFIED IN THIS25
PART 20, THE STRENGTHEN COLORADO HOMES ENTERPRISE ENGAGES IN26
ACTIVITIES CONDUCTED IN THE PURSUIT OF A BENEFIT , GAIN , OR27
SB26-155-4-
LIVELIHOOD AND THEREFORE OPERATES AS A BUSINESS;1
(III) CONSISTENT WITH THE DETERMINATION OF THE COLORADO2
SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 8963
P.2d 859 (COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS4
INCONSISTENT WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE5
X OF THE STATE CONSTITUTION , THE GENERAL ASSEMBLY CONCLUDES6
THAT THE REVENUE COLLECTED BY THE ENTERPRISE IS GENERATED BY7
FEES, NOT TAXES, BECAUSE THE MONEY CREDITED TO THE ENTERPRISE IS:8
(A) FOR THE SPECIFIC PURPOSE OF ALLOWING THE ENTERPRISE TO9
DEFRAY THE COSTS OF PROVIDING THE SERVICES DESCRIBED IN THIS PART10
20;11
(B) COLLECTED AT RATES THAT ARE REASONABLY CALCULATED12
BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE ENTERPRISE ;13
AND14
(C) NOT STATE FISCAL YEAR SPENDING , AS DEFINED IN SECTION15
24-77-102 (17), OR STATE REVENUES, AS DEFINED IN SECTION 24-77-103.616
(6)(c), AND DOES NOT COUNT AGAINST EITHER THE STATE FISCAL YEAR17
SPENDING LIMIT IMPOSED BY SECTION 20 OF ARTICLE X OF THE STATE18
CONSTITUTION OR THE EXCESS STATE REVENUES CAP , AS DEFINED IN19
SECTION 24-77-103.6 (6)(b), SO LONG AS THE ENTERPRISE QUALIFIES AS20
AN ENTERPRISE FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE21
CONSTITUTION; AND22
(IV) N O OTHER ENTERPRISE CREATED SIMULTANEOUSLY OR23
WITHIN THE PRECEDING FIVE YEARS SERVES PRIMARILY THE SAME PURPOSE24
AS THE ENTERPRISE, AND THE ENTERPRISE WILL GENERATE REVENUE FROM25
FEES AND SURCHARGES OF LESS T HAN ONE HUNDRED MILLION DOLLARS26
TOTAL IN ITS FIRST FIVE FISCAL YEARS. ACCORDINGLY, THE CREATION OF27
SB26-155-5-
THE ENTERPRISE DOES NOT REQUIRE VOTER APPROVAL PURSUANT TO1
SECTION 24-77-108.2
10-4-2002. Definitions.3
AS USED IN THIS PART 20, UNLESS THE CONTEXT OTHERWISE4
REQUIRES:5
(1) "B OARD" OR "ENTERPRISE BOARD " MEANS THE GOVERNING6
BOARD OF THE STRENGTHEN COLORADO HOMES ENTERPRISE.7
(2) "FEE" MEANS THE FEE THAT THE ENTERPRISE BOARD IMPOSES8
AND COLLECTS PURSUANT TO SECTION 10-4-2003 (4).9
(3) "F UND" MEANS THE STRENGTHEN COLORADO HOMES10
ENTERPRISE FUND CREATED IN SECTION 10-4-2003 (5).11
(4) "G RANT PROGRAM " MEANS THE STRENGTHEN COLORADO12
HOMES ENTERPRISE GRANT PROGRAM CREATED IN SECTION 10-4-2004.13
(5) (a) "INSURER" MEANS AN INSURANCE COMPANY THAT OFFERS14
MULTIPERIL HOMEOWNER'S INSURANCE POLICIES IN THE STATE.15
(b) "INSURER" DOES NOT INCLUDE THE FAIR ACCESS TO INSURANCE16
REQUIREMENTS PLAN ASSOCIATION CREATED IN SECTION 10-4-1804.17
(6) "RESILIENT ROOF SYSTEM" MEANS A ROOF THAT HAS OBTAINED18
A VERIFIED WIND AND HAIL CERTIFICATION FROM THE INSURANCE19
INSTITUTE FOR BUSINESS AND HOME SAFETY "FORTIFIED" PROGRAM OR20
A SIMILAR SCIENCE-BASED, VERIFIABLE CERTIFICATION, AS DETERMINED21
BY THE BOARD BY RULE.22
(7) "S TRENGTHEN COLORADO HOMES ENTERPRISE " OR23
"ENTERPRISE" MEANS THE STRENGTHEN COLORADO HOMES ENTERPRISE24
CREATED IN SECTION 10-4-2003 (1).25
10-4-2003. Strengthen Colorado homes enterprise - creation26
- purpose - enterprise board - powers and duties - fee - penalty - fund27
SB26-155-6-
- gifts, grants, or donations - rules - reporting - repeal.1
(1) Enterprise - creation - purpose.2
(a) (I) T HE STRENGTHEN COLORADO HOMES ENTERPRISE IS3
CREATED IN THE DIVISION . THE ENTERPRISE IS A TYPE 1 ENTITY , AS4
DEFINED IN SECTION 24-1-105, AND EXERCISES ITS POWERS AND PERFORMS5
ITS DUTIES AND FUNCTIONS UNDER THE DIVISION. THE ENTERPRISE IS AND6
OPERATES AS A GOVERNMENT-OWNED BUSINESS WITHIN THE DIVISION.7
(II) THE BUSINESS PURPOSE OF THE ENTERPRISE, ACTING THROUGH8
THE BOARD, IS TO IMPOSE AND COLLECT A FEE CHARGED TO INSURERS9
THAT OFFER MULTIPERIL HOMEOWNER'S INSURANCE POLICIES AND TO USE10
THE REVENUE FROM THE FEE TO PROVIDE THE FOLLOWING BUSINESS11
SERVICES, AS DETERMINED BY THE BOARD, TO INSURERS PAYING THE FEE:12
(A) R EDUCING INSURER AND HOMEOWNER LOSSES DUE TO13
COMMON PERILS , INCLUDING HAIL AND WINDSTORMS , BY AWARDING14
GRANTS TO INSURED HOMEOWNERS PURSUANT TO SECTION 10-4-2004 TO15
DEFRAY THE COST OF RETROFITTING RESIDENTIAL PROPERTY BY16
PURCHASING AND INSTALLING RESILIENT ROOF SYSTEMS;17
(B) AWARDING GRANTS TO INDIVIDUALS TO DEFRAY THE COSTS OF18
TRAINING AND CERTIFICATION RELATING TO INSTALLING AND CERTIFYING19
RESILIENT ROOF SYSTEMS AND TO DEVELOP THE WORKFORCE FOR20
INSTALLING AND CERTIFYING RESILIENT ROOF SYSTEMS;21
(C) R EDUCING THE FREQUENCY OF WIND AND HAIL DAMAGE22
CLAIMS ON INSURED RESIDENCES;23
(D) IMPROVING INSURANCE MARKET STABILITY THROUGHOUT THE24
STATE; AND25
(E) CONTRACTING WITH THE DIVISION TO CONDUCT OR CAUSE TO26
BE CONDUCTED A STUDY PURSUANT TO SECTION 10-1-146 TO ANALYZE27
SB26-155-7-
INSURANCE RISK IN HIGH -RISK WILDFIRE AREAS OF THE STATE , WHICH1
ANALYSIS INCLUDES THE DEGREE OF MARKET COMPETITION AMONG2
INSURERS IN THOSE AREAS AND THE IMPACT OF A HIGH RISK PROGRAM ON3
THE POTENTIAL LOSSES IN AND THE AVAILABILITY OF HOMEOWNER 'S4
INSURANCE IN HIGH-RISK WILDFIRE AREAS OF THE STATE.5
(b) THE ENTERPRISE IS AUTHORIZED TO ISSUE REVENUE BONDS.6
(c) THE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES7
OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO LONG AS IT8
RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS9
THAN TEN PERCENT OF ITS TOTAL REVENUES IN GRANTS FROM ALL10
COLORADO STATE AND LOCAL GOVERNMENTS COMBINED. SO LONG AS IT11
CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION (1), THE12
ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE13
CONSTITUTION.14
(2) Enterprise board.15
(a) THE ENTERPRISE IS GOVERNED BY THE ENTERPRISE BOARD.16
(b) T HE BOARD CONSISTS OF THE FOLLOWING SEVEN VOTING17
MEMBERS:18
(I) THE COMMISSIONER OR THE COMMISSIONER'S DESIGNEE; AND19
(II) THE FOLLOWING SIX MEMBERS APPOINTED BY THE GOVERNOR20
AND CONFIRMED BY THE SENATE TO SERVE THREE-YEAR TERMS:21
(A) TWO MEMBERS WHO REPRESENT INSURERS WITH EXPERTISE IN22
HOMEOWNER'S INSURANCE;23
(B) ONE MEMBER WHO IS A COUNTY COMMISSIONER OR A COUNTY24
EMPLOYEE WHO HAS EXPERTISE OR EXPERIENCE IN HOME HARDENING OR25
OTHER RISK MITIGATION ACTIVITIES;26
(C) ONE MEMBER WHO REPRESENTS CONSUMERS;27
SB26-155-8-
(D) ONE MEMBER WITH EXPERTISE IN HOME HARDENING, ROOFING1
CONSTRUCTION, OR MANUFACTURING RESILIENT ROOF SYSTEMS OR2
MATERIALS; AND3
(E) ONE MEMBER WITH EXPERTISE IN HOMEOWNER'S INSURANCE4
OR HOME MITIGATION.5
(c) OF THE FIRST MEMBERS APPOINTED TO THE BOARD PURSUANT6
TO SUBSECTION (2)(b)(II) OF THIS SECTION, THE GOVERNOR SHALL SELECT7
TWO MEMBERS TO SERVE AN INITIAL TERM OF TWO YEARS.8
(d) (I) THE GOVERNOR SHALL MAKE THE INITIAL APPOINTMENTS TO9
THE BOARD NO LATER THAN JANUARY 1, 2027.10
(II) S UBSECTION (2)(c) OF THIS SECTION AND THIS SUBSECTION11
(2)(d) ARE REPEALED, EFFECTIVE JULY 1, 2027.12
(e) THE COMMISSIONER OR THE COMMISSIONER'S DESIGNEE IS THE13
CHAIR OF THE BOARD.14
(f) MEMBERS OF THE BOARD SERVE WITHOUT COMPENSATION BUT15
MUST BE REIMBURSED FROM MONEY IN THE FUND FOR ACTUAL AND16
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES17
PURSUANT TO THIS PART 20.18
(g) EACH MEMBER OF THE BOARD SHALL DISCLOSE ANY ACTUAL OR19
POTENTIAL CONFLICT OF INTEREST, INCLUDING ANY FINANCIAL INTEREST20
IN CONTRACTS , GRANTS , OR STANDARDS CONSIDERED , AWARDED ,21
ADOPTED, OR RECOMMENDED BY THE BOARD.22
(h) THE ENTERPRISE BOARD IS SUBJECT TO THE OPEN MEETINGS23
PROVISIONS OF THE "COLORADO SUNSHINE ACT OF 1972" CONTAINED IN24
PART 4 OF ARTICLE 6 OF TITLE 24. EXCEPT AS MAY OTHERWISE BE25
PROVIDED BY FEDERAL LAW OR STATE LAW , THE RECORDS OF THE26
ENTERPRISE ARE PUBLIC RECORDS, AS DEFINED IN SECTION 24-72-202 (6),27
SB26-155-9-
AND ARE SUBJECT TO THE "COLORADO OPEN RECORDS ACT", PART 2 OF1
ARTICLE 72 OF TITLE 24.2
(3) Powers and duties.3
(a) THE PRIMARY POWERS AND DUTIES OF THE ENTERPRISE, ACTING4
THROUGH THE BOARD, ARE TO:5
(I) IMPOSE AND COLLECT THE FEE PURSUANT TO SUBSECTION (4)6
OF THIS SECTION;7
(II) AWARD GRANTS FROM MONEY IN THE FUND IN ACCORDANCE8
WITH THE GRANT PROGRAM REQUIREMENTS SPECIFIED IN SECTION9
10-4-2004;10
(III) I SSUE REVENUE BONDS FOR THE EXPENSES OF THE11
ENTERPRISE, SECURED BY REVENUE OF THE ENTERPRISE;12
(IV) I NVEST THE REVENUE FROM THE ISSUANCE AND SALE OF13
REVENUE BONDS AND THE IMPOSITION AND COLLECTION OF THE FEE . IN14
INVESTING THE REVENUE, THE ENTERPRISE MAY:15
(A) INVEST THE REVENUE WITHOUT REGARD TO THE LIMITATIONS16
SET FORTH IN SECTION 24-36-103, 24-75-601.1, OR 24-75-603; AND17
(B) ENTER INTO CONTRACTS WITH PRIVATE PROFESSIONAL FUND18
MANAGERS TO PROVIDE EXPERTISE, TECHNICAL SUPPORT, AND ADVICE ON19
INVESTMENT MARKET CONDITIONS . IN SEEKING BIDS FOR SUCH20
CONTRACTS, THE ENTERPRISE SHALL EMPLOY STANDARD PUBLIC BIDDING21
PRACTICES, INCLUDING THE USE OF REQUESTS FOR INFORMATION ,22
REQUESTS FOR PROPOSALS, OR ANY OTHER STANDARD VENDOR SELECTION23
PRACTICES DETERMINED BY THE ENTERPRISE TO BE BEST SUITED TO24
SELECTING AN APPROPRIATE PRIVATE PROFESSIONAL FUND MANAGER.25
(V) PAY THE ADMINISTRATIVE EXPENSES OF THE ENTERPRISE;26
(VI) E NGAGE THE SERVICES OF PUBLIC OR PRIVATE ENTITIES ,27
SB26-155-10-
CONTRACTORS, OR CONSULTANTS FOR PROFESSIONAL AND TECHNICAL1
ASSISTANCE AND TO PROVIDE ADVICE AND OTHER SERVICES RELATED TO2
CONDUCTING THE AFFAIRS OF THE ENTERPRISE, WITHOUT REGARD TO THE3
"PROCUREMENT CODE", ARTICLES 101 TO 112 OF TITLE 24. IN4
CONDUCTING ITS AFFAIRS, THE ENTERPRISE SHALL:5
(A) E NGAGE THE ATTORNEY GENERAL 'S OFFICE FOR LEGAL6
SERVICES;7
(B) ENTER INTO A CONTRACT OR CONTRACTS WITH THE DIVISION8
AT FAIR MARKET RATES FOR OFFICE SPACE AND ADMINISTRATIVE STAFF9
FOR THE ENTERPRISE; AND10
(C) ENTER INTO A CONTRACT WITH THE DIVISION TO CONDUCT OR11
CAUSE TO BE CONDUCTED THE STUDY DESCRIBED IN SECTION 10-1-14612
REGARDING INSURANCE RISK IN HIGH-RISK WILDFIRE AREAS OF THE STATE;13
(VII) P REPARE AND SUBMIT AN ANNUAL FINANCIAL REPORT14
PURSUANT TO SUBSECTION (7) OF THIS SECTION CONCERNING THE15
ADMINISTRATION OF THE ENTERPRISE AND THE GRANT PROGRAM AND POST16
THE REPORT ON THE ENTERPRISE'S PUBLIC-FACING WEBSITE; AND17
(VIII) E XERCISE ALL RIGHTS AND POWERS NECESSARY OR18
INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES19
GRANTED IN THIS PART 20.20
(b) THE ENTERPRISE, ACTING THROUGH THE BOARD , MAY SEEK ,21
ACCEPT, AND EXPEND GRANTS OR OTHER MONEY FROM THE FEDERAL22
GOVERNMENT AND GIFTS , GRANTS, OR DONATIONS FROM OTHER PUBLIC23
AND PRIVATE SOURCES TO SUPPORT AND ENHANCE ENTERPRISE24
ACTIVITIES; EXCEPT THAT THE ENTERPRISE SHALL NOT ACCEPT GRANTS25
FROM THE STATE OR FROM LOCAL GOVERNMENTS UNLESS THE COMBINED26
TOTAL OF ALL GRANTS FROM SUCH SOURCES IS UNDER TEN PERCENT OF27
SB26-155-11-
THE ENTERPRISE'S ANNUAL REVENUE.1
(4) Fee - fines - penalties.2
(a) B EGINNING IN THE 2027 CALENDAR YEAR , ON OR BEFORE A3
DATE DETERMINED BY THE ENTERPRISE BOARD , AND ANNUALLY EACH4
CALENDAR YEAR THEREAFTER ON OR BEFORE THE SAME DATE , THE5
ENTERPRISE BOARD SHALL IMPOSE AND COLLECT A FEE ON EACH INSURER6
IN AN AMOUNT EQUAL TO ONE -HALF OF ONE PERCENT OF THE TOTAL7
PREMIUM COLLECTED BY THE INSURER ON MULTIPERIL HOMEOWNER 'S8
INSURANCE POLICIES ISSUED IN THE STATE IN THE IMMEDIATELY9
PRECEDING CALENDAR YEAR.10
(b) EACH INSURER SHALL PAY THE FEE TO THE ENTERPRISE AND11
SHALL NOT SURCHARGE THE FEE AMOUNT TO POLICYHOLDERS.12
(c) THE STATE TREASURER SHALL CREDIT THE FEES COLLECTED TO13
THE FUND. A FEE COLLECTED BY THE ENTERPRISE IS EXCLUDED FROM THE14
STATE'S FISCAL YEAR SPENDING.15
(d) NOTWITHSTANDING SUBSECTION (4)(a) OF THIS SECTION, THE16
ENTERPRISE MAY LOWER THE FEE OR CEASE COLLECTING THE FEE IN ANY17
CALENDAR YEAR:18
(I) TO ENSURE THAT THE TOTAL AMOUNT OF FEE REVENUE DOES19
NOT EXCEED ONE HUNDRED MILLION DOLLARS OVER THE FIRST FIVE FISCAL20
YEARS OF THE ENTERPRISE'S EXISTENCE; OR21
(II) F OR AN INSURER , IF THE COMMISSIONER HAS DETERMINED22
THAT PAYING THE FEE WOULD CAUSE THE INSURER TO BECOME INSOLVENT23
UNDER CRITERIA ESTABLISHED BY THE COMMISSIONER . THE24
COMMISSIONER SHALL INFORM THE ENTERPRISE OF ANY SUCH25
DETERMINATION.26
(e) T HE ENTERPRISE MAY ANNUALLY REQUEST FROM INSURERS27
SB26-155-12-
INFORMATION ABOUT POLICIES AND CONTRACTS AS NECESSARY TO1
IMPLEMENT AND ENFORCE THIS PART 20 AND MAY RECOMMEND THAT THE2
DIVISION IMPOSE, AFTER A PUBLIC HEARING, A CIVIL FINE OR PENALTY OF3
NOT MORE THAN ONE HUNDRED TWENTY PERCENT OF THE FEE DUE TO THE4
ENTERPRISE FOR A VIOLATION OF THIS PART 20. THE DIVISION SHALL5
TRANSMIT THE FINE TO THE STATE TREASURER , WHO SHALL CREDIT THE6
FINE TO THE FUND.7
(f) T HE BOARD SHALL ADOPT ANY RULES NECESSARY FOR THE8
IMPOSITION AND COLLECTION OF THE FEE.9
(5) Fund.10
(a) T HE STRENGTHEN COLORADO HOMES ENTERPRISE FUND IS11
CREATED IN THE STATE TREASURY.12
(b) THE FUND CONSISTS OF:13
(I) FEES IMPOSED AND COLLECTED PURSUANT TO SUBSECTION (4)14
OF THIS SECTION;15
(II) G RANTS OR OTHER MONEY RECEIVED FROM THE FEDERAL16
GOVERNMENT OR GIFTS, GRANTS, AND DONATIONS RECEIVED FROM PUBLIC17
OR PRIVATE SOURCES TO SUPPORT OR ENHANCE ENTERPRISE ACTIVITIES;18
(III) FINES OR PENALTIES ASSESSED FOR FAILURE TO PAY THE FEE19
IMPOSED PURSUANT TO SUBSECTION (4) OF THIS SECTION;20
(IV) A NY MONEY FROM REVENUE BONDS ISSUED PURSUANT TO21
SUBSECTION (3)(a)(III) OF THIS SECTION; AND22
(V) ANY MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE23
OR TRANSFER TO THE FUND.24
(c) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE25
ENTERPRISE FOR THE PURPOSES SET FORTH IN THIS PART 20 AND TO PAY26
THE ENTERPRISE'S REASONABLE AND NECESSARY ADMINISTRATIVE AND27
SB26-155-13-
OPERATING EXPENSES.1
(d) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND2
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE3
FUND TO THE FUND.4
(6) Rules. T HE ENTERPRISE BOARD MAY ADOPT , AMEND , OR5
REPEAL RULES OR POLICIES THAT ARE REASONABLE AND NECESSARY FOR6
THE REGULATION OF THE ENTERPRISE'S AFFAIRS AND THE CONDUCT OF THE7
ENTERPRISE'S BUSINESS CONSISTENT WITH THIS PART 20, INCLUDING8
GRANT PROGRAM RULES SPECIFIED IN SECTION 10-4-2004 (7).9
(7) Reporting.10
(a) NOTWITHSTANDING SECTION 24-1-136 (11)(a)(I), BEGINNING11
JULY 1, 2028, AND EACH JULY 1 THEREAFTER , THE ENTERPRISE SHALL12
SUBMIT A REPORT TO THE COMMITTEES OF REFERENCE OF THE GENERAL13
ASSEMBLY TO WHICH THE DEPARTMENT IS ASSIGNED PURSUANT TO14
SECTION 2-7-203 CONCERNING THE IMPLEMENTATION AND15
ADMINISTRATION OF THE ENTERPRISE AND THE GRANT PROGRAM.16
(b) THE ANNUAL REPORT MUST INCLUDE:17
(I) T HE AMOUNT OF FEES COLLECTED FROM INSURERS AND THE18
UNOBLIGATED BALANCE OF THE FUND;19
(II) T HE NUMBER OF GRANT PROGRAM APPLICATIONS AND THE20
AMOUNT OF GRANTS AWARDED;21
(III) T HE AREAS OF THE STATE WHERE GRANT PROGRAM22
RECIPIENTS RESIDE; AND23
(IV) ANY OTHER INFORMATION RELEVANT TO THE SUCCESS OF THE24
ENTERPRISE AND THE GRANT PROGRAM.25
10-4-2004. Strengthen Colorado homes enterprise grant26
program - application - eligibility criteria - award of grants - rules.27
SB26-155-14-
(1) T HERE IS CREATED IN THE ENTERPRISE THE STRENGTHEN1
COLORADO HOMES ENTERPRISE GRANT PROGRAM TO PROVIDE GRANTS TO2
COLORADO HOMEOWNERS TO RETROFIT RESIDENTIAL PROPERTY TO3
REDUCE INSURER LOSSES DUE TO COMMON PERILS, INCLUDING HAIL AND4
WINDSTORMS.5
(2) (a) SUBJECT TO AVAILABLE REVENUE IN THE FUND, THE BOARD6
SHALL AWARD GRANTS, IN ACCORDANCE WITH THIS SECTION , FROM THE7
FUND. THE BOARD MAY ESTABLISH PROCEDURES AND CRITERIA FOR THE8
AWARD OF GRANTS IF THERE IS INSUFFICIENT MONEY IN THE FUND TO9
AWARD GRANTS TO ALL ELIGIBLE HOMEOWNER APPLICANTS.10
(b) THE BOARD MAY CONTRACT WITH A THIRD-PARTY VENDOR TO11
ADMINISTER THE GRANT PROGRAM.12
(3) IN ADDITION TO ANY GRANT PROGRAM CRITERIA ESTABLISHED13
BY THE BOARD BY RULE , A HOMEOWNER AWARDED A GRANT SHALL , AS14
APPLICABLE:15
(a) H AVE AN INSURABLE RESIDENTIAL PROPERTY LOCATED IN16
COLORADO THAT IS COVERED BY A HOMEOWNER'S INSURANCE POLICY;17
(b) OBTAIN ALL PERMITS REQUIRED BY LAW FOR INSTALLATION OR18
RETROFITTING;19
(c) COMPLY WITH ALL APPLICABLE BUILDING CODES;20
(d) ARRANGE AND PAY FOR INSPECTIONS REQUIRED BY LAW AND21
THE TERMS OF THE GRANT PROGRAM;22
(e) C ONSTRUCT A ROOF THAT MEETS THE STANDARDS OF THE23
INSURANCE INSTITUTE FOR BUSINESS AND HOME SAFETY OR SIMILAR24
STANDARDS, AS DETERMINED BY THE BOARD BY RULE; AND25
(f) SELECT A CONTRACTOR LICENSED IN THE STATE THAT:26
(I) IS A MEMBER OF THE COLORADO ROOFING ASSOCIATION OR AN27
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EQUIVALENT QUALIFYING BODY THAT MAINTAINS STANDARDS FOR1
LICENSING, INSURANCE, AND PROFESSIONAL CONDUCT;2
(II) A TTESTS THAT THE CONTRACTOR DOES NOT WAIVE3
DEDUCTIBLES AND AGREES TO REPAIR , RATHER THAN REPLACE , ROOFS4
WHEN APPROPRIATE IN ACCORDANCE WITH RULES ADOPTED BY THE5
BOARD; AND6
(III) MEETS ANY OTHER CRITERIA ESTABLISHED BY THE BOARD.7
(4) A CONTRACTOR THAT IS AWARDED BIDS AND RECEIVES GRANT8
MONEY FROM THE GRANT PROGRAM IS PROHIBITED FROM WAIVING9
HOMEOWNER'S INSURANCE DEDUCTIBLES.10
(5) THE BOARD MAY PERFORM AUDITS TO VERIFY:11
(a) T HE ACCURACY OF THE INFORMATION INCLUDED IN AN12
APPLICATION; AND13
(b) THAT THE APPLICANT MEETS ALL ELIGIBILITY CRITERIA.14
(6) A HOMEOWNER SHALL NOT USE MONEY THAT IS AWARDED AS15
A GRANT TO PAY FOR GENERAL ROOF MAINTENANCE OR REPAIR BUT MAY16
USE GRANT PROGRAM MONEY IN CONJUNCTION WITH REPAIRS OR17
RECONSTRUCTION NECESSITATED BY DAMAGE FROM WIND OR HAIL OR FOR18
PROACTIVE RETROFITTING NECESSITATED BY OR DESIGNED TO PREVENT19
SUCH DAMAGE, CONSISTENT WITH STANDARDS ADOPTED BY THE BOARD20
PURSUANT TO SUBSECTION (7) OF THIS SECTION.21
(7) (a) THE BOARD SHALL ADOPT RULES FOR THE ADMINISTRATION22
AND IMPLEMENTATION OF THE GRANT PROGRAM , INCLUDING THE23
STANDARDS FOR A RESILIENT ROOF SYSTEM , THE CRITERIA USED TO24
DETERMINE WHETHER AN APPLICANT IS ELIGIBLE FOR A GRANT UNDER THIS25
SECTION, AND THE AMOUNT AND TIMING OF THE GRANT AWARD . IN26
AWARDING GRANTS, THE BOARD SHALL PRIORITIZE HOMES THAT ARE AN27
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APPLICANT'S PRIMARY RESIDENCE . IN ESTABLISHING ELIGIBILITY1
REQUIREMENTS FOR THE GRANTS, THE BOARD SHALL CONSIDER APPLICANT2
INCOME; WHETHER AN APPLICANT LIVES IN A LOCATION THAT, BASED ON3
HISTORICAL DATA, HAS A HIGHER SUSCEPTIBILITY TO EXTREME WEATHER4
EVENTS; THE AGE OF THE ROOF; THE SIZE OF THE HOME; THE NUMBER OF5
APPLICANTS FOR THE GRANT PROGRAM ; AND ANY OTHER CRITERIA THE6
BOARD DETERMINES IS APPROPRIATE TO MEET THE PURPOSE OF THE7
ENTERPRISE AND THE MONEY AVAILABLE FOR GRANTS.8
(b) IN ESTABLISHING RESILIENT ROOF SYSTEM STANDARDS , THE9
BOARD MAY PRIORITIZE THE USE OF MATERIALS THAT ARE10
IMPACT-RESISTANT AND PROVEN TO OFFER SUPERIOR PROTECTIONS11
AGAINST EXTREME WEATHER EVENTS AND MAY INCENTIVIZE MATERIALS12
WITH REDUCED ENVIRONMENTAL IMPACTS.13
(c) T HE BOARD MAY ALSO ESTABLISH STANDARDS FOR14
CONTRACTOR -SPECIALIZED TRAINING IN THE INSTALLATION OF15
IMPACT-RESISTANT ROOFING SYSTEMS.16
(8) I N ORDER TO DEVELOP THE NECESSARY WORKFORCE FOR17
INSTALLING AND CERTIFYING RESILIENT ROOF SYSTEMS, THE BOARD MAY18
ALSO AWARD GRANTS TO DEFRAY THE COSTS TO INDIVIDUALS FOR19
TRAINING AND CERTIFICATION RELATED TO INSTALLING AND CERTIFYING20
RESILIENT ROOF SYSTEMS ; EXCEPT THAT BOARD RULES MUST REQUIRE21
THAT AT LEAST SEVENTY -FIVE PERCENT OF GRANT PROGRAM MONEY IS22
ALLOCATED TO GRANTS TO COLORADO HOMEOWNERS TO RETROFIT23
RESIDENTIAL PROPERTY TO REDUCE INSURER LOSSES DUE TO HAIL AND24
WINDSTORMS.25
(9) NOTHING IN THIS SECTION CREATES:26
(a) A N ENTITLEMENT FOR A HOMEOWNER TO RECEIVE GRANT27
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PROGRAM MONEY TO INSPECT OR RETROFIT RESIDENTIAL PROPERTY; OR1
(b) AN OBLIGATION FOR THE STATE TO APPROPRIATE MONEY TO2
INSPECT OR RETROFIT RESIDENTIAL PROPERTY.3
10-4-2005. Severability.4
IF ANY PROVISION OF THIS PART 20 OR THE APPLICATION OF THIS5
PART 20 TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID , THE6
INVALIDITY DOES NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF7
THIS PART 20 THAT CAN BE GIVEN EFFECT WITHOUT THE INVALID8
PROVISION OR APPLICATION, AND TO THIS END THE PROVISIONS OF THIS9
PART 20 ARE DECLARED TO BE SEVERABLE.10
SECTION 2. In Colorado Revised Statutes, add 10-1-146 as11
follows:12
10-1-146. Study regarding insurance risk in high-risk wildfire13
areas of the state - repeal.14
(1) THE STRENGTHEN COLORADO HOMES ENTERPRISE CREATED IN15
PART 20 OF ARTICLE 4 OF THIS TITLE 10 SHALL CONTRACT WITH THE16
DIVISION TO CONDUCT OR CAUSE TO BE CONDUCTED A STUDY TO ANALYZE:17
(a) T HE INSURANCE RISK IN HIGH -RISK WILDFIRE AREAS OF THE18
STATE, INCLUDING AN ANALYSIS OF THE DEGREE OF MARKET COMPETITION19
AMONG INSURERS IN THOSE AREAS; AND20
(b) T HE IMPACT OF A HIGH RISK PROGRAM ON THE POTENTIAL21
LOSSES IN THE HIGH -RISK WILDFIRE AREAS OF THE STATE AND ON THE22
AVAILABILITY OF HOMEOWNER'S INSURANCE IN THOSE AREAS.23
(2) IN CONDUCTING OR CAUSING THE CONDUCTING OF THE STUDY,24
THE DIVISION SHALL EVALUATE AND MAKE RECOMMENDATIONS25
REGARDING THE STRUCTURE OF A HIGH RISK PROGRAM , APPROPRIATE26
ATTACHMENT POINTS AND CAPS, AND WAYS TO AVOID COMPETITION WITH27
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THE PRIVATE INSURANCE MARKET. THE STUDY MAY EXPLORE POTENTIAL1
FUNDING MECHANISMS FOR THE PROGRAM.2
(3) T HE DIVISION MAY CONTRACT WITH A THIRD PARTY TO3
CONDUCT ALL OR PART OF THE STUDY.4
(4) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2031.5
SECTION 3. In Colorado Revised Statutes, 10-4-405, add (1.2)6
as follows:7
10-4-405. Filing of rating information - certain coverages -8
rules.9
(1.2) (a) BEGINNING WITH RATE FILINGS SUBMITTED ON AND AFTER10
JANUARY 1, 2027, AN INSURER OFFERING MULTIPERIL HOMEOWNER 'S11
INSURANCE FOR PROPERTY OR RISKS LOCATED IN THE STATE SHALL12
DEMONSTRATE IN THE INSURER'S RATE FILINGS THAT SAVINGS FROM THE13
INSTALLATION OF RESILIENT ROOF SYSTEMS ARE PASSED THROUGH TO14
HOMEOWNERS THROUGH THE APPLICATION OF DISCOUNTS OR THROUGH15
REDUCED PREMIUMS ON HOMEOWNER'S INSURANCE POLICIES.16
(b) THE COMMISSIONER MAY ADOPT RULES TO IMPLEMENT THIS17
SUBSECTION (1.2).18
SECTION 4. Act subject to petition - effective date. This act19
takes effect at 12:01 a.m. on the day following the expiration of the20
ninety-day period after final adjournment of the general assembly (August21
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a22
referendum petition is filed pursuant to section 1 (3) of article V of the23
state constitution against this act or an item, section, or part of this act24
within such period, then the act, item, section, or part will not take effect25
unless approved by the people at the general election to be held in26
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November 2026 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
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