Increase Access Homeowner's Insurance Enterprise

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SENATE BILL 26-155
BY SENATOR(S) Mullica and Marchman, Amabile, Benavidez, Cutter,
Daugherty, Exum, Kipp, Roberts, Snyder, Coleman;
also REPRESENTATIVE(S) McCluskie and Brown, Boesenecker,
Camacho, Clifford, Duran, Froelich, Joseph, Lindsay, McCormick, Nguyen,
Paschal, Ricks, Rutinel, Rydin, Sirota, Smith, Stewart K., Titone.
CONCERNING INCREASING THE AVAILABILITY OF HOMEOWNER'S INSURANCE
IN THE STATE, AND, IN CONNECTION THEREWITH, MAKING AN
APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add part 20 to article
4 of title 10 as follows:
PART20
STRENGTHEN COLORADO HOMES ENTERPRISE
10-4-2001. Legislative declaration.
( 1) THE GENERAL ASSEMBLY:
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
(a) FINDS AND DETERMINES THAT:
(I) INCREASED GREENHOUSE GAS EMISSIONS AND RAPIDLY RISING
TEMPERA TURES ARE CHANGING THE CLIMATE IN WAYS THAT THREATEN
COLORADO'S ECONOMY, THE HEAL TH OF ITS RESIDENTS, AND ITS NATURAL
LANDSCAPE;
(II) THESE TEMPERATURE INCREASES HAVE AN IMPACT ON
COLORADO'S ENVIRONMENT, WITH DROUGHT, HEAT WA YES, WINDSTORMS,
WILDFIRES, HAIL, AND OTHER EXTREME WEATHER EVENTS INCREASING IN
RECENT YEARS;
(III) THE ECONOMIC IMPACTS OF THESE INCREASINGLY FREQUENT
AND SEVERE WEATHER EVENTS ARE SIGNIFICANT;
(IV) COLORADO PROPERTY OWNERS ARE FACED WITH CHALLENGES
IN FINDING INSURANCE COVERAGE AND INCREASING INSURANCE PREMIUMS,
UNDERMINING THE ABILITY TO PURCHASE, SELL, AND OWN A HOME;
(V) THERE IS A NEED IN THE ST A TE TO ENCOURAGE INVESTMENTS IN
HOME HARDENING, WHICH MEANS MAKING HOMES AND COMMUNITIES MORE
RESILIENT TO EXTREME WEATHER EVENTS SUCH AS HAIL, WINDSTORMS, AND
WILDFIRE, AND INCLUDES SCIENCE-BASED HAIL AND WIND MITIGATION
MEASURES DESIGNED TO REDUCE INSURER LOSSES;
(VI) MAKING INVESTMENTS IN HOME HARDENING WILL IMPROVE
INSURERS' FINANCIAL STABILITY BY DECREASING LOSSES THAT WOULD
OTHERWISE BE PAID BY THE INSURERS;
(VII) INVESTMENTS IN HOME HARDENING WILL ALSO ENCOURAGE
INSURER PARTICIPATION AND INCREASE COMPETITION IN THE INSURANCE
MARKET TO OFFER COVERAGE THROUGHOUT THE ST ATE TO ALL
COLORADANS, RES UL TING IN LONG-TERM SA VINOS FOR HOMEOWNERS AND
INSURERS;
(VIII) TARGETING HOMES IN HIGH-RISK AREAS FOR INVESTMENTS IN
HOME HARDENING WILL IMPROVE THE OVERALL ST ABILITY OF THE
HOMEOWNER'S INSURANCE MARKET FOR INSURERS;
(IX) DAT A FROM NORTH CAROLINA AND ALABAMA HAS SHOWN
PAGE 2-SENATE BILL 26-155
THAT PROVIDING ASSISTANCE TO STRENGTHEN ROOFS RESULTS IN FEWER
CLAIMS AND LOWER ADMINISTRATIVE EXPENSES, WHICH DIRECTLY
INCREASES PROFITS FOR INSURERS;
(X) STUDYING WAYS TO REDUCE WILDFIRE RISK IN HIGH-RISK AREAS
OF THE STATE WILL REDUCE INSURER LOSSES AND ADMINISTRATIVE
EXPENSES, THEREBY INCREASING INSURER CAPACITY STATEWIDE;
(XI) ACCORDINGLY, IT IS APPROPRIATE TO FINANCE A HOME
HARDENING PROGRAM THROUGH A FEE IMPOSED ON INSURERS THAT OFFER
MULTIPERIL HOMEOWNER'S INSURANCE POLICIES IN THE ST A TE; AND
(XII) THE FEE ON INSURERS IS REASONABLY RELATED TO THE
BUSINESS SERVICES THE STRENGTHEN COLORADO HOMES ENTERPRISE IS
PROVIDING TO INSURERS; AND
(b) DECLARES THAT:
(I) THE STRENGTHEN COLORADO HOMES ENTERPRISE PROVIDES
VALUABLE BUSINESS SERVICES AND BENEFITS TO INSURERS WHEN, IN
EXCHANGE FOR PAYMENT OF THE FEE DESCRIBED IN SECTION 10-4-2003, THE
ENTERPRISE USES THE FEE REVENUE TO:
(A) REDUCE INSURER LOSSES AND ADMINISTRATIVE EXPENSES DUE
TO HAIL DAMAGE CLAIMS BY DEFRA YING THE COST OF RETROFITTING
RESIDENTIAL PROPERTY BY PROVIDING GRANTS FOR THE INSTALLATION OF
RESILIENT ROOF SYSTEMS;
(B) ANALYZE DATA ON HAIL LOSSES IN THE HOMEOWNER'S
INSURANCE MARKET TO IDENTIFY THE AREAS OF THE ST A TE TOT ARGET FOR
THE INSTALLATION OF RESILIENT ROOF SYSTEMS TO MAXIMIZE INSURER
SAVINGS;
(C) SET STANDARDS FOR RESILIENT ROOF SYSTEMS THAT INSURERS
MAY RELY UPON AND ENSURE THAT THERE IS A WORKFORCE TRAINED TO
CERTIFY FOR INSURERS THAT ROOFS MEET THOSE STANDARDS; AND
(D) CREATE CODES OF CONDUCT FOR ROOFING CONTRACTORS TO
ENSURE ROOFS ARE PROPERLY AND APPROPRIATELY INSTALLED, WHICH
BENEFITS INSURERS BY REDUCING THEIR CLAIMS LOSSES;
PAGE 3-SENATE BILL 26-155
(II) BY PROVIDING THE BENEFITS AND SERVICES SPECIFIED IN THIS
PART 20, THE STRENGTHEN COLORADO HOMES ENTERPRISE ENGAGES IN
ACTIVITIESCONDUCTEDINTHEPURSUITOFABENEFIT,GAIN,ORLIVELIHOOD
AND THEREFORE OPERA TES AS A BUSINESS;
(III) CONSISTENT WITH THE DETERMINATION OF THE COLORADO
SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 896
P .2d 859 (COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS INCONSISTENT
WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION, THE GENERAL ASSEMBLY CONCLUDES THAT THE REVENUE
COLLECTED BY THE ENTERPRISE IS GENERATED BY FEES, NOT TAXES,
BECAUSE THE MONEY CREDITED TO THE ENTERPRISE IS:
(A) FOR THE SPECIFIC PURPOSE OF ALLOWING THE ENTERPRISE TO
DEFRA YTHECOSTSOFPROVIDINGTHESERVICES DESCRIBED IN THIS PART20;
(B) COLLECTED AT RATES THAT ARE REASONABLY CALCULATED
BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE ENTERPRISE; AND
(C) NOT STATE FISCAL YEAR SPENDING, AS DEFINED IN SECTION
24-77-102 ( 17), OR STATE REVENUES, AS DEFINED IN SECTION 24-77-103 .6
( 6)( c ), AND DOES NOT COUNT AGAINST EITHER THE ST A TE FISCAL YEAR
SPENDING LIMIT IMPOSED BY SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION OR THE EXCESS ST A TE REVENUES CAP, AS DEFINED IN SECTION
24-77-103.6 (6)(b), SO LONG AS THE ENTERPRISE QUALIFIES AS AN
ENTERPRISE FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION; AND
(IV) NO OTHER ENTERPRISE CREATED SIMULTANEOUSLY OR WITHIN
THE PRECEDING FIVE YEARS SERVES PRIMARILY THE SAME PURPOSE AS THE
ENTERPRISE, AND THE ENTERPRISE WILL GENERA TE REVENUE FROM FEES AND
SURCHARGES OF LESS THAN ONE HUNDRED MILLION DOLLARS TOTAL IN ITS
FIRST FIVE FISCAL YEARS.ACCORDINGLY, THE CREATION OF THE ENTERPRISE
DOES NOT REQUIRE VOTER APPROVAL PURSUANT TO SECTION 24-77-108.
10-4-2002. Definitions.
AS USED IN THIS PART 20, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
PAGE 4-SENATE BILL 26-155
(1) "BOARD" OR "ENTERPRISE BOARD" MEANS THE GOVERNING
BOARD OF THE STRENGTHEN COLORADO HOMES ENTERPRISE.
(2) "FEE" MEANS THE FEE THAT THE ENTERPRISE BOARD IMPOSES
AND COLLECTS PURSUANT TO SECTION 10-4-2003 ( 4 ).
(3) "FUND" MEANS THE STRENGTHEN COLORADO HOMES ENTERPRISE
FUND CREATED IN SECTION 10-4-2003 (5).
( 4) "GRANT PROGRAM" MEANS THE STRENGTHEN COLORADO HOMES
ENTERPRISE GRANT PROGRAM CREATED IN SECTION 10-4-2004.
(5) ( a) "INSURER" MEANS AN ADMITTED INSURANCE COMPANY THAT
OFFERS MULTIPERIL HOMEOWNER'S INSURANCE POLICIES IN THE STATE AND
ISSUBJECTTOTHECOLORADODIVISIONOFINSURANCESTATISTICALREPORT,
LINE 4.
(b) "INSURER" DOES NOT INCLUDE THE FAIR ACCESS TO INSURANCE
REQUIREMENTS PLAN ASSOCIATION CREATED IN SECTION 10-4-1804.
( 6) "RESILIENT ROOF SYSTEM" MEANS A ROOF THAT HAS OBTAINED
A VERIFIED WIND AND HAIL CERTIFICATION FROM THE INSURANCE INSTITUTE
FOR BUSINESS AND HOME SAFETY "FORTIFIED" PROGRAM OR A SIMILAR
SCIENCE-BASED, VERIFIABLE CERTIFICATION, AS DETERMINED BY THE BOARD
BY RULE .
(7) "STR E NGTHEN COLORADO HOMES ENTERPRISE" OR "ENTERPRISE"
MEANS THE STRENGTHEN COLORADO HOMES ENTERPRISE CREA TED IN
SECTION 10-4-2003 (1 ).
10-4-2003. Strengthen Colorado homes enterprise - creation -
purpose - enterprise board - powers and duties - fee - fund - gifts,
grants, or donations -rules -reporting -repeal.
( 1) Enterprise -creation -purpose.
(a) (I) THE STRENGTHEN COLORADO HOMES ENTERPRISE IS CREA TED
IN THE DIVISION. THE ENTERPRISE IS A TYPE 1 ENTITY, AS DEFINED IN
SECTION 24-1-105, AND EXERCISES ITS POWERS AND PERFORMS ITS DUTIES
AND FUNCTIONS UNDER THE DIVISION . THE ENTERPRISE IS AND OPERA TES AS
PAGE 5-SENATE BILL 26-155
A GOVERNMENT-OWNED BUSINESS WITHIN THE DIVISION.
(II) THE BUSINESS PURPOSE OF THE ENTERPRISE, ACTING THROUGH
THE BOARD, IS TO IMPOSE AND COLLECT A FEE CHARGED TO INSURERS THAT
OFFER MULTIPERIL HOMEOWNER'S INSURANCE POLICIES AND TO USE THE
REVENUE FROM THE FEE TO PROVIDE THE FOLLOWING BUSINESS SERVICES,
AS DETERMINED BY THE BOARD, TO INSURERS PA YING THE FEE:
(A) REDUCING INSURER LOSSES AND ADMINISTRATIVE EXPENSES DUE
TO HAIL DAMAGE CLAIMS BY DEFRA YING THE COST OF RETROFITTING
RESIDENTIAL PROPERTY BY PROVIDING GRANTS FOR THE INSTALLATION OF
RESILIENT ROOF SYSTEMS;
(8) ANALYZING DATA ON HAIL LOSSES IN THE HOMEOWNER'S
INSURANCE MARKET TO IDENTIFY THE AREAS OF THE STATE TO TARGET FOR
THE INSTALLATION OF RESILIENT ROOF SYSTEMS TO MAXIMIZE INSURER
SAVINGS;
(C) SETTING STANDARDS FOR RESILIENT ROOF SYSTEMS THAT
INSURERS MAY RELY UPON AND ENSURING THAT THERE IS A WORKFORCE
TRAINED TO CERTIFY FOR INSURERS THAT ROOFS MEET THOSE STANDARDS;
(D) CREA TING CODES OF CONDUCT FOR ROOFING CONTRACTORS TO
ENSURE ROOFS ARE PROPERLY AND APPROPRIATELY INSTALLED, WHICH
BENEFITS INSURERS BY REDUCING THEIR CLAIMS LOSSES;
(E) EVALUATING ROOFING PROTOCOLS TO ASCERTAIN IF THE
PROTOCOLS MEET SIMILAR SCIENCE-BASED, CERTIFIABLE STANDARDS, AS
THOSE OF THE INSURANCE INSTITUTE FOR BUSINESS AND HOME SAFETY'S
"FORTIFIED" PROGRAM;
(F) AWARDING GRANTS TO INDIVIDUALS TO DEFRAY THE COSTS OF
TRAINING AND CERTIFICATION RELATING TO INST ALLING AND CERTIFYING
RESILIENT ROOF SYSTEMS AND TO DEVELOP THE WORKFORCE FOR
INSTALLING AND CERTIFYING RESILIENT ROOF SYSTEMS;
( G) REDUCING THE FREQUENCY OF WIND AND HAIL DAMAGE CLAIMS
ON INSURED RESIDENCES;
(H) IMPROVING INSURANCE MARKET STABILITY THROUGHOUT THE
PAGE 6-SENATE BILL 26-155
STATE; AND
(I) CONDUCTING A STUDY TO ANALYZE INSURANCE RISK IN
HIGH-RISK WILDFIRE AREAS OF THE STATE, WHICH ANALYSIS INCLUDES THE
DEGREE OF MARKET COMPETITION AMONG INSURERS IN THOSE AREAS AND
THEIMPACTOFAHIGHRISKPROGRAMONTHEPOTENTIALLOSSESINANDTHE
AVAILABILITY OF HOMEOWNER'S INSURANCE IN HIGH-RISK WILDFIRE AREAS
OF THE ST A TE.
(b) THE ENTERPRISE IS AUTHORIZED TO ISSUE REVENUE BONDS.
( C) THE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES OF
SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO LONG AS IT
RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS
THAN TEN PERCENT OF ITS TOT AL REVENUES IN GRANTS FROM ALL
COLORADO STATE AND LOCAL GOVERNMENTS COMBINED. So LONG AS IT
CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION ( 1 ), THE
ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION.
(2) Enterprise board.
(a) THE ENTERPRISE IS GOVERNED BY THE ENTERPRISE BOARD.
(b) THE BOARD CONSISTS OF THE FOLLOWING SEVEN VOTING
MEMBERS:
(I) THE COMMISSIONER OR THE COMMISSIONER'S DESIGNEE; AND
(II) THE FOLLOWING SIX MEMBERS APPOINTED BY THE GOVERNOR
AND CONFIRMED BY THE SENATE TO SERVE THREE-YEAR TERMS:
(A) Two MEMBERS WHO REPRESENT INSURERS WITH EXPERTISE IN
HOMEOWNER'S INSURANCE;
(B) ONE MEMBER WHO IS A COUNTY COMMISSIONER OR A COUNTY
EMPLOYEE WHO HAS EXPERTISE OR EXPERIENCE IN HOME HARDENING OR
OTHER RISK MITIGATION ACTIVITIES;
(C) ONE MEMBER WHO REPRESENTS CONSUMERS;
PAGE 7-SENATE BILL 26-155
(D) ONE MEMBER WITH EXPERTISE IN HOME HARDENING, ROOFING
CONSTRUCTION, OR MANUFACTURING RESILIENT ROOF SYSTEMS OR
MATERIALS; AND
(E) ONE MEMBER WITH TECHNICAL EXPERTISE IN HOMEOWNER'S
INSURANCE, SUCH AS EXPERTISE IN UNDERWRITING, ACTUARIAL ANALYSIS,
OR CLAIMS HANDLING, OR EXPERTISE IN HOME HARDENING.
( C) OF THE FIRST MEMBERS APPOINTED TO THE BOARD PURSUANT TO
SUBSECTION (2)(b )(II) OF THIS SECTION, THE GOVERNOR SHALL SELECT TWO
MEMBERS TO SERVE AN INITIAL TERM OF TWO YEARS.
( d) (I) THE GOVERNOR SHALL MAKE THE INITIAL APPOINTMENTS TO
THE BOARD NO LATER THAN JANUARY 1, 2027.
(II) SUBSECTION (2)( C) OF THIS SECTION AND THIS SUBSECTION (2)( d)
ARE REPEALED, EFFECTIVE JULY 1, 2027.
( e) THE COMMISSIONER OR THE COMMISSIONER'S DESIGNEE IS THE
CHAIR OF THE BOARD.
(f) MEMBERS OF THE BOARD SERVE WITHOUT COMPENSATION BUT
MUST BE REIMBURSED FROM MONEY IN THE FUND FOR ACTUAL AND
NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES
PURSUANT TO THIS PART 20.
(g) EACH MEMBER OF THE BOARD SHALL DISCLOSE ANY ACTUAL OR
POTENTIAL CONFLICT OF INTEREST, INCLUDING ANY FINANCIAL INTEREST IN
CONTRACTS, GRANTS, OR STANDARDS CONSIDERED, AW ARD ED, ADOPTED, OR
RECOMMENDED BY THE BOARD.
(h) THE ENTERPRISE BOARD IS SUBJECT TO THE OPEN MEETINGS
PROVISIONS OF THE "COLORADO SUNSHINE ACT OF 1972" CONTAINED IN
PART 4 OF ARTICLE 6 OF TITLE 24. EXCEPT AS MAY OTHERWISE BE PROVIDED
BY FEDERAL LAW OR STATE LAW, THE RECORDS OF THE ENTERPRISE ARE
PUBLIC RECORDS, AS DEFINED IN SECTION 24-72-202 (6), AND ARE SUBJECT
TO THE "COLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF TITLE
24.
(3) Powers and duties.
PAGE 8-SENATE BILL 26-155
(a) THE PRIMARY POWERS AND DUTIES OF THE ENTERPRISE, ACTING
THROUGH THE BOARD, ARE TO:
(I) IMPOSE AND COLLECT THE FEE PURSUANT TO SUBSECTION ( 4) OF
THIS SECTION;
(II) AW ARD GRANTS FROM MONEY IN THE FUND IN ACCORDANCE
WITH THE GRANT PROGRAM REQUIREMENTS SPECIFIED IN SECTION
10-4-2004;
(III) ISSUE REVENUE BONDS FOR THE EXPENSES OF THE ENTERPRISE,
SECURED BY REVENUE OF THE ENTERPRISE;
(IV) INVEST THE REVENUE FROM THE ISSUANCE AND SALE OF
REVENUE BONDS AND THE IMPOSITION AND COLLECTION OF THE FEE. IN
INVESTING THE REVENUE, THE ENTERPRISE MAY:
(A) INVEST THE RE VENUE WITHOUT REGARD TO THE LIMITATIONS
SET FORTH IN SECTION 24-36-103, 24-75-601.1, OR 24-75-603; AND
(8) ENTER INTO CONTRACTS WITH PRIVATE PROFESSIONAL FUND
MANAGERS TO PROVIDE EXPERTISE, TECHNICAL SUPPORT, AND ADVICE ON
INVESTMENT MARKET CONDITIONS. IN SEEKING BIDS FOR SUCH CONTRACTS,
THE ENTERPRISE SHALL EMPLOY ST AND ARD PUBLIC BIDDING PRACTICES,
INCLUDING THE USE OF REQUESTS FOR INFORMATION, REQUESTS FOR
PROPOSALS, OR ANY OTHER STANDARD VENDOR SELECTION PRACTICES
DETERMINED BY THE ENTERPRISE TO BE BEST SUITED TO SELECTING AN
APPROPRIATE PRIVATE PROFESSIONAL FUND MANAGER.
(V) PAY THE ADMINISTRATIVE EXPENSES OF THE ENTERPRISE;
(VI) ENGAGE THE SERVICES OF PUBLIC OR PRIVATE ENTITIES,
CONTRACTORS, OR CONSULT ANTS FOR PROFESSIONAL AND TECHNICAL
ASSISTANCE AND TO PROVIDE ADVICE AND OTHER SERVICES RELATED TO
CONDUCTING THE AFFAIRS OF THE ENTERPRISE, WITHOUT REGARD TO THE
"PROCUREMENT CODE", ARTICLES 101 TO 112 OF TITLE 24. IN CONDUCTING
ITS AFFAIRS, THE ENTERPRISE SHALL:
(A) ENGAGETHEATTORNEYGENERAL'SOFFICEFORLEGALSERVICES;
AND
PAGE 9-SENATE BILL 26-155
(B) ENTER INTO A CONTRACT OR CONTRACTS WITH THE DIVISION AT
FAIR MARKET RA TES FOR OFFICE SPACE AND ADMINISTRATIVE STAFF FOR THE
ENTERPRISE;
(VII) PREPARE AND SUBMIT AN ANNUAL FINANCIAL REPORT
PURSUANT TO SUBSECTION (7) OF THIS SECTION CONCERNING THE
ADMINISTRATION OF THE ENTERPRISE AND THE GRANT PROGRAM AND POST
THE REPORT ON THE ENTERPRISE'S PUBLIC-FACING WEBSITE; AND
(VIII) EXERCISE ALL RIGHTS AND POWERS NECESSARY OR
INCIDENT AL TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES
GRANTED IN THIS PART 20.
(b) THE ENTERPRISE, ACTING THROUGH THE BOARD, MAY SEEK,
ACCEPT, AND EXPEND GRANTS OR OTHER MONEY FROM THE FEDERAL
GOVERNMENT AND GIFTS, GRANTS, OR DONATIONS FROM OTHER PUBLIC AND
PRIVATE SOURCES TO SUPPORT AND ENHANCE ENTERPRISE ACTIVITIES;
EXCEPT THAT THE ENTERPRISE SHALL NOT ACCEPT GRANTS FROM THE ST A TE
OR FROM LOCAL GOVERNMENTS UNLESS THE COMBINED TOTAL OF ALL
GRANTS FROM SUCH SOURCES IS UNDER TEN PERCENT OF THE ENTERPRISE'S
ANNUAL REVENUE.
(4) Fee.
( a) BEGINNING IN THE 2027 CALENDAR YEAR, ON OR BEFORE A DATE
DETERMINED BY THE ENTERPRISE BOARD, AND ANNUALLY EACH CALENDAR
YEAR THEREAFTER ON OR BEFORE THE SAME DA TE, THE ENTERPRISE BOARD
SHALL IMPOSE AND COLLECT A FEE ON EACH INSURER IN AN AMOUNT EQUAL
TO ONE-HALF OF ONE PERCENT OF THE TOTAL PREMIUM COLLECTED BY THE
INSURER ON MULTIPERIL HOMEOWNER'S INSURANCE POLICIES ISSUED IN THE
ST A TE IN THE IMMEDIATELY PRECEDING CALENDAR YEAR.
(b) EACH INSURER SHALL PAY THE FEE TO THE ENTERPRISE AND
SHALL NOT SURCHARGE THE FEE AMOUNT TO POLICYHOLDERS.
( c) THE ST A TE TREASURER SHALL CREDIT THE FEES COLLECTED TO
THE FUND. A FEE COLLECTED BY THE ENTERPRISE IS EXCLUDED FROM THE
STATE'S FISCAL YEAR SPENDING.
(d) NOTWITHSTANDING SUBSECTION (4)(a) OF THIS SECTION, THE
PAGE IO-SENATE BILL 26-155
ENTERPRISE MAY LOWER THE FEE OR CEASE COLLECTING THE FEE IN ANY
CALENDAR YEAR TO ENSURE THAT THE TOT AL AMOUNT OF FEE REVENUE
DOES NOT EXCEED ONE HUNDRED MILLION DOLLARS OVER THE FIRST FIVE
FISCAL YEARS OF THE ENTERPRISE'S EXISTENCE.
( e) THE BOARD MAY REQUEST INFORMATION FROM INSURERS ABOUT
POLICIES AND CONTRACTS ONLY TO THE EXTENT THE INFORMATION IS
REASONABLY NECESSARY TO ADMINISTER THE GRANT PROGRAM, IMPOSE
AND COLLECT THE FEE, OR IMPLEMENT OTHER REQUIREMENTS IN THIS PART
20. INSURER DATA REQUESTS SHALL BE COORDINATED THROUGH THE
DIVISION AND, TO THE EXTENT PRACTICABLE, BE LIMITED TO INFORMATION
ALREADY COLLECTED BY THE DIVISION OR AVAILABLE THROUGH EXISTING
REGULATORY REPORTING.
(f) THE BOARD SHALL ADOPT ANY RULES NECESSARY FOR THE
IMPOSITION AND COLLECTION OF THE FEE.
(5) Fund.
(a) THE STRENGTHEN COLORADO HOMES ENTERPRISE FUND IS
CREATED IN THE STATE TREASURY.
(b) THE FUND CONSISTS OF:
(I) FEES IMPOSED AND COLLECTED PURSUANT TO SUBSECTION ( 4) OF
THIS SECTION;
(II) GRANTS OR OTHER MONEY RECEIVED FROM THE FEDERAL
GOVERNMENT OR GIFTS, GRANTS, AND DONATIONS RECEIVED FROM PUBLIC
OR PRIVATE SOURCES TO SUPPORT OR ENHANCE ENTERPRISE ACTIVITIES;
(Ill) ANY MONEY FROM REVENUE BONDS ISSUED PURSUANT TO
SUBSECTION (3)(a)(III) OF THIS SECTION; AND
(IV) ANY MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE
OR TRANSFER TO THE FUND.
( c) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE
ENTERPRISE FOR THE PURPOSES SET FORTH IN THIS PART 20 AND TO PAY THE
ENTERPRISE'S REASONABLE AND NECESSARY ADMINISTRATIVE AND
PAGE 11-SENATE BILL 26-155
OPERATING EXPENSES.
( d) THE ST A TE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO
THE FUND.
( 6) Rules. THE ENTERPRISE BOARD MAY ADOPT, AMEND, OR REPEAL
RULES OR POLICIES THAT ARE REASONABLE AND NECESSARY FOR THE
REGULATION OF THE ENTERPRISE'S AFFAIRS AND THE CONDUCT OF THE
ENTERPRISE'S BUSINESS CONSISTENT WITH THIS PART 20, INCLUDING GRANT
PROGRAM RULES SPECIFIED IN SECTION 10-4-2004 (7).
(7) Reporting.
(a) NOTWITHSTANDING SECTION 24-1-136 (1 l)(a)(I), BEGINNING
JULY l, 2028, AND EACH JULY 1 THEREAFTER, THE ENTERPRISE SHALL
SUBMIT A REPORT TO THE COMMITTEES OF REFERENCE OF THE GENERAL
ASSEMBLY TO WHICH THE DEPARTMENT IS ASSIGNED PURSUANT TO SECTION
2-7-203 CONCERNING THE IMPLEMENTATION AND ADMINISTRATION OF THE
ENTERPRISE AND THE GRANT PROGRAM.
(b) THE ANNUAL REPORT MUST INCLUDE:
(I) THE AMOUNT OF FEES COLLECTED FROM INSURERS AND THE
UNOBLIGATED BALANCE OF THE FUND;
(II) THE NUMBER OF GRANT PROGRAM APPLICATIONS AND THE
AMOUNT OF GRANTS A WARDED;
(Ill) THE AREAS OF THE ST A TE WHERE GRANT PROGRAM RECIPIENTS
RESIDE;
(IV) IF THE BOARD AW ARDS GRANTS FOR WORKFORCE TRAINING,
INFORMATION ABOUT THE STRUCTURE OF THE TRAINING PROGRAMS AND THE
NUMBER OF CONTRACTORS TRAINED; AND
(V) ANY OTHER INFORMATION RELEVANT TO THE SUCCESS OF THE
ENTERPRISE AND THE GRANT PROGRAM.
10-4-2004. Strengthen Colorado homes enterprise grant
PAGE 12-SENATE BILL 26-155
program -application -eligibility criteria -award of grants -rules.
( 1) THERE IS CREA TED IN THE ENTERPRISE THE STRENGTHEN
COLORADO HOMES ENTERPRISE GRANT PROGRAM TO PROVIDE GRANTS TO
COLORADO HOMEOWNERS TO RETROFIT RESIDENTIAL PROPERTY TO REDUCE
INSURER LOSSES DUE TO COMMON PERILS, INCLUDING HAIL AND
WINDSTORMS.
(2) (a) SUBJECT TO AVAILABLE REVENUE IN THE FUND, THE BOARD
SHALL A WARD GRANTS, IN ACCORDANCE WITH THIS SECTION, FROM THE
FUND. THE BOARD MAY ESTABLISH PROCEDURES AND CRITERIA FOR THE
AW ARD OF GRANTS IF THERE IS INSUFFICIENT MONEY IN THE FUND TO AW ARD
GRANTS TO ALL ELIGIBLE HOMEOWNER APPLICANTS.
(b) THE BOARD MAY CONTRACT WITH A THIRD-PARTY VENDOR TO
ADMINISTER THE GRANT PROGRAM.
(3) IN ADDITION TO ANY GRANT PROGRAM CRITERIA ESTABLISHED BY
THE BOARD BY RULE, A HOMEOWNER A WARDED A GRANT SHALL, AS
APPLICABLE:
(a) HAVE AN INSURABLE RESIDENTIAL PROPERTY LOCATED IN
COLORADO THAT IS COVER E D BY A HOMEOWNER'S INSURANCE POLICY;
(b) OBTAIN ALL PERMITS REQUIRED BY LAW FOR INSTALLATION OR
RETROFITTING;
( C) COMPLY WITH ALL APPLICABLE BUILDING CODES;
( d) ARRANGE AND PAY FOR INSPECTIONS REQUIRED BYLAW AND THE
TERMSOFTHEGRANTPROGRAM;
( e) CONSTRUCT A ROOF THAT MEETS RESILIENT ROOF SYSTEM
STANDARDS; AND
(f) SELECT A CONTRACTOR LICENSED IN THE STATE THAT:
(I) IS A MEMBER OF A PROFESSIONAL ASSOCIATION THAT PROMOTES
BEST PRACTICES AND ETHICAL BEHAVIORS IN THE ROOFING INDUSTRY;
PAGE 13-SENATE BILL 26-155
(II) A TIESTS THAT THE CONTRACTOR DOES NOT WAIVE DEDUCTIBLES
AND AGREES TO REPAIR, RATHER THAN REPLACE, ROOFS WHEN APPROPRIATE
IN ACCORDANCE WITH RULES ADOPTED BY THE BOARD; AND
(Ill) MEETS ANY OTHER CRITERIA ESTABLISHED BY THE BOARD.
( 4) A CONTRACTOR THAT IS A WARDED BIDS AND RECEIVES GRANT
MONEY FROM THE GRANT PROGRAM IS PROHIBITED FROM WAIVING
HOMEOWNER'S INSURANCE DEDUCTIBLES.
(5) THE BOARD MAY PERFORM AUDITS TO VERIFY:
(a) THE ACCURACY OF THE INFORMATION INCLUDED IN AN
APPLICATION; AND
(b) THAT THE APPLICANT MEETS ALL ELIGIBILITY CRITERIA.
( 6) A HOMEOWNER SHALL NOT USE MONEY THAT IS A WARDED AS A
GRANT TO PAY FOR GENERAL ROOF MAINTENANCE OR REPAIR BUT MAY USE
GRANT PROGRAM MONEY IN CONJUNCTION WITH REPAIRS OR
RECONSTRUCTION NECESSITATED BY DAMAGE FROM WIND OR HAIL OR FOR
PROACTIVE RETROFITTING NECESSITATED BY OR DESIGNED TO PREVENT
SUCH DAMAGE, CONSISTENT WITH STANDARDS ADOPTED BY THE BOARD
PURSUANT TO SUBSECTION (7) OF THIS SECTION.
(7) (a) THE BOARD SHALL ADOPT RULES FOR THE ADMINISTRATION
AND IMPLEMENTATION OF THE GRANT PROGRAM, INCLUDING THE
STANDARDS FOR A RESILIENT ROOF SYSTEM, THE CRITERIA USED TO
DETERMINE WHETHER AN APPLICANT IS ELIGIBLE FOR A GRANT UNDER THIS
SECTION, AND THE AMOUNT AND TIMING OF THE GRANT A WARD. IN
A WARDING GRANTS, THE BOARD SHALL PRIORITIZE HOMES THAT ARE AN
APPLICANT'S PRIMARY RESIDENCE. IN ESTABLISHING ELIGIBILITY
REQUIREMENTS FOR THE GRANTS, THE BOARD SHALL CONSIDER APPLICANT
INCOME; WHETHER AN APPLICANT LIVES IN A LOCATION THAT, BASED ON
HISTORICAL DATA, HAS A HIGHER SUSCEPTIBILITY TO EXTREME WEATHER
EVENTS; THE AGE OF THE ROOF; THE SIZE OF THE HOME; WHETHER THE HOME
IS LOCATED IN A LOCALITY WITH HAIL-RESISTANT BUILDING CODE
REQUIREMENTS; THE NUMBER OF APPLICANTS FOR THE GRANT PROGRAM;
AND ANY OTHER CRITERIA THE BOARD DETERMINES IS APPROPRIATE TO MEET
THE PURPOSE OF THE ENTERPRISE AND THE MONEY AVAILABLE FOR GRANTS.
PAGE 14-SENATE BILL 26-155
(b) IN ESTABLISHING RESILIENT ROOF SYSTEM STANDARDS, THE
BOARD MAY PRIORITIZE THE USE OF MATERIALS THAT ARE
IMPACT-RESIST ANT AND PROVEN TO OFFER SUPERIOR PROTECTIONS AGAINST
EXTREME WEATHER EVENTS AND MAY INCENTIVIZE MATERIALS WITH
REDUCED ENVIRONMENTAL IMPACTS.
(c) THE BOARD MAY ALSO ESTABLISH STANDARDS FOR
CONTRACTOR-SPECIALIZED TRAINING IN THE INSTALLATION OF
IMPACT-RESISTANT ROOFING SYSTEMS.
(8) IN ORDER TO DEVELOP THE NECESSARY WORKFORCE FOR
INST ALLING AND CERTIFYING RESILIENT ROOF SYSTEMS , THE BOARD MAY
ALSO AW ARD GRANTS TO DEFRAY THE COSTS TO INDIVIDUALS FOR TRAINING
AND CERTIFICATION RELATED TO INSTALLING AND CERTIFYING RESILIENT
ROOF SYSTEMS; EXCEPT THAT BOARD RULES MUST REQUIRE THAT AT LEAST
EIGHTY-FIVE PERCENT OF FEE REVENUE IS ALLOCATED TO GRANTS TO
COLORADO HOMEOWNERS TO RETROFIT RESIDENTIAL PROPERTY TO REDUCE
INSURER LOSSES DUE TO HAIL AND WINDSTORMS.
(9) NOTHING IN THIS SECTION CREATES:
(a) AN ENTITLEMENT FOR A HOMEOWNER TO RECEIVE GRANT
PROGRAM MONEY TO INSPECT OR RETROFIT RESIDENTIAL PROPERTY; OR
(b) AN OBLIGATION FOR THE STATE TO APPROPRIATE MONEY TO
INSPECT OR RETROFIT RESIDENTIAL PROPERTY.
10-4-2005. Study regarding insurance risk in high-risk wildfire
areas of the state - repeal.
(1) THE BOARD SHALL CONDUCT OR CAUSE TO BE CONDUCTED A
STUDY TO ANALYZE:
(a) THE INSURANCE RISK IN HIGH-RISK WILDFIRE AREAS OF THE
ST ATE, INCLUDING AN ANALYSIS OF THE DEGREE OF MARKET COMPETITION
AMONG INSURERS IN THOSE AREAS; AND
(b) THE IMPACT OF A HIGH RISK PROGRAM ON THE POTENTIAL LOSSES
IN THE HIGH-RISK WILDFIRE AREAS OF THE STATE AND ON THE AVAILABILITY
OF HOMEOWNER'S INSURANCE IN THOSE AREAS .
PAGE 15-SENATE BILL 26-155
(2) THE STUDY SHALL EVALUATE AND MAKE RECOMMENDATIONS
REGARDING THE STRUCTURE OF A HIGH RISK PROGRAM, APPROPRIATE
ATTACHMENT POINTS AND CAPS, AND WAYS TO AVOID COMPETITION WITH
THE PRIVATE INSURANCE MARKET. THE STUDY MAY EXPLORE POTENTIAL
FUNDING MECHANISMS FOR THE PROGRAM.
(3) THE BOARD MAY CONTRACT WITH A THIRD PARTY TO CONDUCT
ALL OR PART OF THE STUDY. THE BOARD, OR A THIRD PARTY THE BOARD
ENTERS INTO A CONTRACT WITH TO CONDUCT THE STUDY, SHALL ENGAGE
WITH RELEVANT STAKEHOLDERS IN CONDUCTING THE STUDY. RELEVANT
STAKEHOLDERS MUST INCLUDE, AT A MINIMUM:
(a) REPRESENTATIVES OF REINSURERS;
(b) REPRESENTATIVES OF INSURERS WRITING HOMEOWNER'S
INSURANCE CONTRACTS OR POLICIES IN COLORADO;
(c) REPRESENTATIVES OF REINSURANCE BROKERS;
( d) INDIVIDUALS WITH EXPERTISE IN COMPLEX FINANCIAL
INSTRUMENTS AND DEBT INSTRUMENTS; AND
( e) CONSUMERS OR INDIVIDUALS WITH EXPERIENCE IN WILDFIRE
MITIGATION .
(4) THE BOARD SHALL SUBMIT THE STUDY REQUIRED BY
SUBSECTIONS (1) AND (2) OF THIS SECTION TO THE HOUSE OF
REPRESENTATIVES TRANSPORTATION, HOUSING, AND LOCAL GOVERNMENT
COMMITTEE AND THE SENATE LOCAL GOVERNMENT AND HOUSING
COMMITTEE, OR THEIR SUCCESSOR COMMITTEES, AND SHALL PUBLISH THE
STUDY ON THE DIVISION'S WEBSITE.
(5) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2031.
10-4-2006. Severability.
IF ANY PROVISION OF THIS PART20 OR THEAPPLICA TION OF THIS PART
20 TO ANY PERSON OR CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY
DOES NOT AFFECT OTHER PROVISIONS OR APPLICATIONS OF THIS PART 20
THAT CAN BE GIVEN EFFECT WITHOUT THE INVALID PROVISION OR
PAGE 16-SENATE BILL 26-155
APPLICATION, AND TO THIS END THE PROVISIONS OF THIS PART 20 ARE
DECLARED TO BE SEVERABLE.
SECTION 2. In Colorado Revised Statutes, 10-4-405, add (1.2) as
follows:
10-4-405. Filing of rating information -certain coverages-rules.
(1.2) NO SOONER THAN JANUARY 1, 2027, AND UPON THE
COMMISSIONER ADOPTING RULES, AN INSURER OFFERING MULTIPERIL
HOMEOWNER'S INSURANCE FOR PROPERTY OR RISKS LOCATED IN THE STATE
SHALL SUBMIT AN ANNUAL FILING TO THE COMMISSIONER. THE ANNUAL
FILING MUST INCLUDE AN EXHIBIT REPORTING:
(a) THE NUMBER OF POLICIES IN FORCE;
(b) THE NUMBER OF HOMES THAT HA VE INSTALLED A RESILIENT ROOF
SYSTEM;
( C) THE DISCOUNT APPLIED TO HOMES DUE TO THE PRESENCE OF A
RESILIENT ROOF SYSTEM; AND
( d) THE WIND AND HAIL CLAIMS FREQUENCY AND SEVERITY FOR
HOMES WITH AND WITHOUT A RESILIENT ROOF SYSTEM.
SECTION 3. Appropriation. For the 2026-27 state fiscal year,
$66,250 is appropriated to the department oflaw. This appropriation is from
the legal services cash fund created in section 24-31-108 (4), C.R.S., from
revenue received from the department of regulatory agencies that is
continuously appropriated to the department of regulatory agencies from the
strengthen Colorado homes enterprise fund created in section 10-4-2003
(5)(a), C.R.S. The appropriation to the department of law is based on an
assumption that the department of law will require an additional 0.3 FTE.
To implement this act, the department of law may use this appropriation to
provide legal services for the department of regulatory agencies.
SECTION 4. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
PAGE 17-SENATE BILL 26-155
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within
such period, then the act, item, section, or part will not take effect unless
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esthe an Mourik
SECRETARY OF
THE SENATE
APPROVED Oh lV\ ~J
Jared S. Por
GOVERNO
PAGE 18-SENATE BILL 26-155
~kie
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
v~ '%ililly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
0