I_WMRC_2023A 09/19/2023 09:14:06 AM Committee Summary

Commissioner Conway responded to questions from the committee on the decline of insurance policies being written. He discussed how both the affordability and availability of insurance have played a role in this decline.

Commissioner Conway responded to questions from the committee on the existence of FAIR plans in other states and how they influenced Colorado's FAIR plan. He explained that there around 32 other states with FAIR plans and that Colorado has been looking into what is and is not working in those states.

Commissioner Conway gave an update on House Bill 23-1174, which provide funding to evaluate policies addressing homeowners insurance affordability. He explained that this evaluation is underway and discussed the potential of using a parametric insurance policy to address affordability.

Commissioner Conway responded to questions from the committee on the level of experience that insurance companies in the United States have with parametric insurance policies.

Director Walker responded to questions from the committee on the efficacy of mandating insurance discounts for homeowners who have pursued mitigation efforts. She explained that a mandate would cause more uncertainty, which could dissuade insurance companies from providing coverage in the state.

Dr. Giammanco discussed the need to find ways to nudge people implement wildfire mitigation measures in their homes due to the risk that a single unprepared home can pose to the rest of the community during a fire. He explained that incentives alone will not work.

Director Walker and Dr. Giammanco responded to questions from the committee on the practices to persuade individuals to pursue wildfire mitigation that have worked the best in other communities. Dr. Giammanco used communities from Mobile, Alabama as a good example of an area that bent down the extreme weather risks facing their community and described the grant program and local code changes used there.

Mr. Parker-Renga discussed the implementation of the awareness campaign, which has included digital ads and in-person outreach.

Mr. Parker-Renga discussed the program's plan for 2024, which include evaluating the awareness campaign and gathering recommendations.

Mr. Parker-Renga responded to questions from the committee on how the CSFS is measuring the impact of the awareness campaign.

Garry Briesse, Executive Director, Colorado State Fire Chiefs (CSFC), introduced himself and testified on the need for more funding for local fire districts. He distributed a handout to the committee (Attachment A).

Director Briesse responded to questions from the committee on what type of cost is required to fund local fire districts and the reasons why using local taxes to supplement local fire district is not feasible.

The committee broke for lunch.

The committee reconvened.

Samantha Falco, Legislative Council Staff, discussed the bill draft process.

Senator Jaquez-Lewis explained her bill idea to revise building codes to include more hail damage mitigation guidelines. Committee discussion ensued.

Senator Will explained his bill idea to expand the Heart and Cancer Benefits Trust to include volunteer firefighters.

The committee discussed the proposed bill ideas. They decided which ones can be combined and which will be withdrawn.

The committee recessed.

The committee continued discussion on their bill concepts.

Jason Gelender, Office of Legislative Legal Services, explained some requirements for the bills proposals.

The committee discussed the results of the voting.

The committee reconvened.

Ms. Falco summarized the bill drafts that passed.

The committee discussed designated contacts for each of the bill drafts with Mr. Gelender.