Climate Change, Homeowner's Insurance, and Emergency Management - Study

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*sb0739*

SENATE BILL 739
C4, M3 (6lr2505)
ENROLLED BILL
— Finance/Environment and Transportation and Judiciary —
Introduced by Senator Kramer

Read and Examined by Proofreaders:

_______________________________________________
Proofreader.
_______________________________________________
Proofreader.

Sealed with the Great Seal and presented to the Governor, for his approval this

_______ day of _______________ at __ ______________________ o’clock, ________M.

______________________________________________
President.

CHAPTER ______

AN ACT concerning 1

Climate Change, Homeowner’s Insurance, and Emergency Management – Study 2

FOR the purpose of requiring the University System of Maryland to conduct a study to 3
evaluate the relationship between climate change, homeowner’s insurance, and 4
emergency and disaster preparedness; and generally relating to a study on the 5
relationship between climate change, homeowner’s insurance, and emergency 6
management. 7

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That: 9

(a) The University System of Maryland shall conduct a study to evaluate the 10
relationship between climate change, the availability and price of homeowner’s insurance, 11
and emergency and disaster preparedness. 12

2 SENATE BILL 739

(b) The University System of Maryland shall conduct the study required under 1
subsection (a) of this section in coordination with and oversight by: 2

(1) one member of the Senate of Maryland, appointed by the President of 3
the Senate; 4

(2) one member of the House of Delegates, appointed by the Speaker of the 5
House; 6

(3) the Department of Natural Resources; 7

(4) the Department of the Environment; 8

(5) the Maryland Department of Emergency Management; 9

(6) the Maryland Insurance Administration; 10

(7) a County Emergency Manager, appointed by the Maryland Association 11
of Counties; and 12

(8) a Municipal Emergency Manager, appointed by the Maryland 13
Municipal League; and 14

(9) a representative of the Independent Insurance Agents of Maryland, 15
designated by the Independent Insurance Agents of Maryland. 16

(c) The study shall evaluate: 17

(1) the extent to which climate change has contributed to the decrea sing 18
availability of and increasing costs associated with homeowner’s insurance; 19

(2) the impact of recent and future changes in federal policies and grant 20
funding streams related to disaster preparedness, response, recovery, mitigation, and 21
resilience; 22

(3) how federal funding has supported emergency management 23
capabilities across the five emergency management mission areas identified by the Federal 24
Emergency Management Agency; and 25

(4) existing local resources or reserve funds available for disaster recovery 26
needs. 27

(d) (1) On or before January July 1, 2027, the University System of Maryland 28
shall submit its findings and recommendations to the General Assembly, in accordance 29
with § 2–1257 of the State Government Article. 30

(2) The report required under this subsection shall: 31
SENATE BILL 739 3

(i) include an overview of the current state of the National Flood 1
Insurance Program, Community Rating System, and the private flood insurance market; 2
and 3

(ii) make recommendations on: 4

1. how the State can incentivize residents to invest in 5
improvements to protect homes or mitigate damage from extreme weather events, using: 6

A. tax credits; 7

B. waivers; 8

C. grants; 9

D. loans; or 10

E. free inspections of structural enhancements by municipal 11
or State officials; 12

2. potential modifications to the Insurance Article to better 13
ensure that insurers adequately adjust rates for policyholders who: 14

A. have invested in improvements that have been proven to 15
enhance resilience to severe weather; or 16

B. are located in an area where improvements have been 17
made to local infrastructure or local building codes that reduce risk to the insured home; 18

3. best practices for funding emergency management 19
capabilities based on an evaluation of similar practices in other states; 20

4. potential modifications to § 14 –110.5 of the Public Safety 21
Article; 22

5. recurring, dedicated funding mechanisms; 23

6. annual per capita funding levels; and 24

7. allocation ratios between emergency management 25
programming, including training and staff, and disaster response funds for recovery 26
assistance. 27

(e) Notwithstanding any other provision of law, up to $150,000 $100,000 of the 28
money in the Strategic Energy Investment Fund established under § 9–20B–05 of the State 29
4 SENATE BILL 739

Government Article is authorized to be used by the University System of Maryland to 1
conduct the study required under subsection (a) of this section. 2

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 3
1, 2026. 4

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.