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ARIZONA HOUSE OF REPRESENTATIVESFifty-seventh Legislature First Regular Session |
House: LARA W/D | APPROP DPA 16-2-0-0 |
HB 2268: fire districts; homeowner's policies; DIFI
Sponsor: Representative Livingston, LD 28
S/E: wildfire prevention authority; fund
House Engrossed
Summary of the Strike-Everything Amendment to HB 2268
Overview
Establishes the Wildfire Prevention Authority (Authority) and Wildfire Prevention Authority Fund (Fund) within the Arizona Department of Forestry and Fire Management (DFFM).
History
The DFFM provides land management services and prevents wildfires on state and private land located outside of cities and towns. The State Forester is appointed by the Governor and is responsible for the direction, operation and control of the DFFM (A.R.S. § 37-1301).
The Arizona Department of Insurance and Financial Institutions (DIFI) regulates the insurance industry as well as financial institutions and enterprises by issuing licenses, conducting examinations and investigating consumer complaints. DIFI's mission is to protect consumers, provide certainty on regulatory matters and perform with efficiency and integrity as good stewards of taxpayer resources (A.R.S. §§ 6-121, 6-124, and 6-126)(DIFI History).
In accordance with the Arizona Fire District Association (AFDA), fire districts are special taxing districts that provide services to multiple geographical areas, including rural and unincorporated county areas. There are roughly 130 fire districts with over 4,000 training personnel that provide fire, rescue, and/or emergency medical services to 1.5 million Arizona residents (AFDA).
Provisions
Authority
1. Creates the Authority, within DFFM, to:
a) review fire risk data and tools to identify the areas in Arizona that are at the greatest risk of damage to or loss of real and personal property from wildfires;
b) prioritize funding to cities, towns (municipalities), counties and fire districts that have adopted building or land use codes that are reasonably demonstrated to reduce the risk of damage to or loss of real and personal property from wildfires;
c) review publicly available insurance data to identify areas of Arizona that may be experiencing high levels of insurance policy nonrenewals or premium increases due to enhanced wildfire risk or damage to or loss of real and personal property from wildfires; and
d) make grants, to the extent the Authority has available funding, to municipalities, counties, fire districts and nongovernmental organizations impacted by elevated wildfire risks as outlined. (Sec. 1)
2. Requires the Authority membership to consist of:
a) the DFFM Director or its designee;
b) the DIFI Director or its designee;
c) three members, appointed by the Governor, who are employed by an insurance company that writes homeowner's or commercial insurance policies, with at least one of whom sells homeowner's or commercial insurance policies in wildland urban interface areas;
d) one member, appointed by the Governor, who represents a county that has a population of 200,000 persons or more and that experiences high fire risks;
e) one member, appointed by the Governor, who represents a county that has a population of less than 200,000 persons or more and that experiences high fire risks;
f) one member, appointed by the Governor, who represents a municipality that has a population of 50,000 persons or more and that experiences high fire risks;
g) one member, appointed by the Governor, who represents a municipality that has a population of less than 50,000 persons or more and that experiences high fire risks;
h) one fire chief, appointed by the Governor, who represents a fire district that primarily serves residents of a county with a population of 200,000 persons or more and that experiences high fire risks;
i) one fire chief, appointed by the Governor, who represents a fire district that primarily serves residents of a county with a population of less than 200,000 persons or more and that experiences high fire risks; and
j) two members of the general public who are appointed by the Governor. (Sec. 1)
3. States the Authority members must serve staggered three-year terms beginning and ending on the third Monday in January. (Sec. 1)
4. Requires the Authority members, at the first meeting each year, to select a chairperson. (Sec. 1)
5. Instructs the Authority to meet at the call of the chairperson or on request of seven members of the Authority. (Sec. 1)
6. Allows the Authority to:
a) develop and implement a plan of operation and a financial plan; and
b) solicit and accept gifts, grants and donations. (Sec. 1)
Fund
7. Establishes the Fund consisting of $20,000,000 per year from premium tax from fire insurers and any private and public monies received by the Authority. (Sec. 1)
8. Requires fund monies, administered by the Authority, to be used only to pay the administrative expenses of the Authority and to make grant awards. (Sec. 1)
9. States that Fund monies are subject to legislative appropriations and exempt from lapsing. (Sec. 1)
10. Instructs the State Treasurer, on notice from the Authority, to invest and divest monies in the Fund. (Sec. 1)
11. Requires monies earned from the investment to be credited to the Fund. (Sec. 1)
12. States that all monies appropriated to DFFM for the Authority must be used by DFFM exclusively for the operation of the Authority. (Sec. 1)
13. Requires monies appropriated from the Fund that are included in the General Appropriations Act to include within separate line items the Authority operating lump sum appropriation and any local grants. (Sec. 1)
14. Allows the Authority to accept nonmonetary contributions as outlined that are necessary to carry out the Authority's functions. (Sec. 1)
15. Requires monies from the Fund to be used to supplement, not supplant, other monies that are available for wildfire prevention and mitigation. (Sec. 1)
16. Instructs the Authority to cause an audit, conducted by a certified public accountant, to be made of the Fund every two years. (Sec. 1)
17. Requires the Authority, within five days after completion of the audit, to file a certified copy of the audit with the Auditor General. (Sec. 1)
18. Allows the Auditor General to make further audits and examinations as deemed necessary and may take appropriate action relating to the audit. (Sec. 1)
19. Requires, beginning in FY 2026 and each FY thereafter, that $20 million of the tax paid by an insurer on account of premiums received to be separately specified in the report and distributed to the Fund. (Sec. 2)
20. Makes technical and conforming changes. (Sec. 1-5)
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24. HB 2268
25. Initials BSR Page 0 House Engrossed
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