House Committee of Reference Report
Committee on Finance
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April 7, 2025
After consideration on the merits, the Committee recommends the following:
HB25-1302 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend printed bill, page 4, line 3, after "for" insert "homeowners
Page 1, Line 2and".
Page 1, Line 3Page 4, line 10, strike "insurers" and substitute "homeowners".
Page 1, Line 4Page 4, line 15, after "to" insert "homeowners and".
Page 1, Line 5Page 7, line 1, strike "insurers" and substitute "homeowner's
Page 1, Line 6insurance policyholders".
Page 1, Line 7Page 7, line 3, strike "insurers" and substitute "policyholders".
Page 1, Line 8Page 7, line 13, after "Reducing" insert "policyholder and".
Page 1, Line 9Page 7, line 25, strike "three" and substitute "five".
Page 1, Line 10Page 8, line 1, strike "Two" and substitute "Four".
Page 1, Line 11Page 8, line 3, strike "One member who is an insurer with expertise
Page 1, Line 12in" and substitute "Two members who represent insurance
Page 1, Line 13companies that offer".
Page 1, Line 14Page 8, line 4, strike "and".
Page 1, Line 15Page 8, line 6, strike "activities." and substitute "activities; and
Page 1, Line 16(C) One member who represents consumers.".
Page 1, Line 17Page 8, line 8, strike "one member" and substitute "two members".
Page 2, Line 1Page 8, line 25, strike "enterprise".
Page 2, Line 2Page 9, after line 4 insert:
Page 2, Line 3"(IV) Invest the revenue from the issuance and sale of
Page 2, Line 4revenue bonds and the imposition and collection of the fee. In
Page 2, Line 5investing the revenue, the enterprise may:
Page 2, Line 6(A) Invest the revenue without regard to the limitations
Page 2, Line 7set forth in section 24-36-103, 24-75-601.1, or 24-75-603; and
Page 2, Line 8(B) Enter into contracts with private professional fund
Page 2, Line 9managers to provide expertise, technical support, and advice on
Page 2, Line 10investment market conditions. In seeking bids for such
Page 2, Line 11contracts, the enterprise shall employ standard public bidding
Page 2, Line 12practices, including the use of requests for information,
Page 2, Line 13requests for proposals, or any other standard vendor selection
Page 2, Line 14practices determined by the enterprise to be best suited to
Page 2, Line 15selecting an appropriate private professional fund manager.".
Page 2, Line 16Renumber succeeding subparagraphs accordingly.
Page 2, Line 17Page 9, strike lines 9 through 19 and substitute:
Page 2, Line 18"(VII) Engage the services of public or private entities,
Page 2, Line 19contractors, or consultants for professional and technical
Page 2, Line 20assistance and to provide advice and other services related to
Page 2, Line 21conducting the affairs of the enterprise, without regard to the
Page 2, Line 22"Procurement Code", articles 101 to 112 of title 24. In
Page 2, Line 23conducting its affairs, the enterprise shall:
Page 2, Line 24(A) Engage the attorney general's office for legal
Page 2, Line 25services; and
Page 2, Line 26(B) Enter into a contract or contracts with the division
Page 2, Line 27at fair market rates for office space and administrative staff
Page 2, Line 28for the enterprise; and".
Page 2, Line 29Page 10, strike lines 6 through 13 and substitute "each calendar year
Page 2, Line 30thereafter on or before the same date, the enterprise shall
Page 2, Line 31impose a fee pursuant to subsection (4)(c) of this section on each
Page 2, Line 32policyholder of a homeowner's insurance policy issued in the
Page 2, Line 33admitted market covering property located in or risks in the
Page 2, Line 34state on a per-policy basis and on each policyholder of the FAIR
Page 2, Line 35plan association on a per-policy basis; except that the enterprise
Page 2, Line 36shall not impose a fee on policyholders that have a resilient
Page 2, Line 37roof system that meets the Insurance Institute for Business and
Page 3, Line 1Home Safety standards or similar standards, as determined by
Page 3, Line 2the board by rule.".
Page 3, Line 3Page 10, line 17, strike "one and".
Page 3, Line 4Page 10, line 19, after "insurer" insert "in the admitted market".
Page 3, Line 5Page 11, after line 1 insert:
Page 3, Line 6"(III) The FAIR plan association and each insurer shall
Page 3, Line 7collect the fee from their respective policyholders, pay the fee
Page 3, Line 8to the enterprise, and list the fee as an itemized charge on their
Page 3, Line 9respective insurance policy billing statements.
Page 3, Line 10(IV) The fee is not a premium for any purpose, including the
Page 3, Line 11computation of the gross premium tax pursuant to section
Page 3, Line 1210-3-209 or an insurance producer's commission.".
Page 3, Line 13Page 11, after line 8 insert:
Page 3, Line 14"(e) The enterprise shall adopt any rules necessary for
Page 3, Line 15the imposition and collection of the fee.".
Page 3, Line 16Page 11, line 17, strike "pay" and substitute "collect and forward".
Page 3, Line 17Page 11, line 18, strike "(4)(d)" and substitute "(4)".
Page 3, Line 18Page 12, line 13, strike "from" and substitute "by".
Page 3, Line 19Page 13, strike lines 11 and 12 and substitute "Colorado that is
Page 3, Line 20covered by a homeowner's insurance policy or a policy issued by
Page 3, Line 21the FAIR plan association;".
Page 3, Line 22Page 13, line 20, strike "with".
Page 3, Line 23Page 13, strike lines 21 through 24 and substitute "who is a member of
Page 3, Line 24the Colorado Roofing Association or an equivalent qualifying
Page 3, Line 25body that maintains standards for licensing, insurance, and
Page 3, Line 26professional conduct.".
Page 3, Line 27Page 14, line 8, after "(6)" insert "(a)".
Page 3, Line 28Page 14, after line 19 insert:
Page 3, Line 29"(b) In adopting resilient roof system standards, the
Page 3, Line 30board may prioritize the use of materials proven to offer
Page 4, Line 1superior protections against extreme weather events and may
Page 4, Line 2incentivize reduced environmental impacts.
Page 4, Line 3(c) The board may also adopt rules to encourage
Page 4, Line 4contractors to complete specialized training in the installation
Page 4, Line 5of impact-resistant and fire-resistant roofing systems.".
Page 4, Line 6Page 14, after line 24 insert:
Page 4, Line 7"10-4-2005. Severability. If any provision of this part 20 or
Page 4, Line 8the application thereof to any person or circumstance is held
Page 4, Line 9invalid, such invalidity does not affect other provisions or
Page 4, Line 10applications of this part 20 that can be given effect without the
Page 4, Line 11invalid provision or application, and to this end the provisions of
Page 4, Line 12this part 20 are declared to be severable.".
Page 4, Line 13Page 14, line 25, strike "10-4-2005." and substitute "10-4-2006.".
Page 4, Line 14Page 16, line 9, strike "and catastrophe".
Page 4, Line 15Page 16, strike line 10 and substitute "and imposing a fee on
Page 4, Line 16homeowner's insurance policyholders; and".
Page 4, Line 17Page 17, strike lines 23 through 25.
Page 4, Line 18Renumber succeeding subsections accordingly.
Page 4, Line 19Page 17, line 26, after the second "insurer" add "in the admitted
Page 4, Line 20market".
Page 4, Line 21Page 18, lines 24 and 25, strike "utility purchasers of bonds -".
Page 4, Line 22Page 19, line 11, strike "collecting, under certain circumstances,"
Page 4, Line 23and substitute "collecting".
Page 4, Line 24Page 19, lines 13 and 14, strike "state; selling catastrophe bonds
Page 4, Line 25and revenue bonds;" and substitute "state, selling revenue bonds,".
Page 4, Line 26Page 20, line 9, strike "three" and substitute "five".
Page 4, Line 27Page 20, line 12, strike "Two" and substitute "Four".
Page 4, Line 28Page 20, line 14, strike "is an insurer with" and substitute "represents
Page 4, Line 29an insurance company and has".
Page 5, Line 1Page 20, line 15, strike "and".
Page 5, Line 2Page 20, after line 15 insert:
Page 5, Line 3"(B) One member who represents an insurance company
Page 5, Line 4and has expertise in financing and investments;".
Page 5, Line 5Reletter succeeding sub-subparagraph accordingly.
Page 5, Line 6Page 20, lines 16 and 17, strike "consumer with financial expertise."
Page 5, Line 7and substitute "consumer; and
Page 5, Line 8(D) One member who has expertise in reinsurance.".
Page 5, Line 9Page 20, line 19, strike "one member" and substitute "two members".
Page 5, Line 10Page 21, strike lines 24 and 25.
Page 5, Line 11Renumber succeeding subparagraphs accordingly.
Page 5, Line 12Page 22, lines 1 and 2, strike "fee, as applicable, on homeowner's
Page 5, Line 13insurance insurers" and substitute "fee".
Page 5, Line 14Page 22, line 5, strike "fee;" and substitute "fee. In investing the
Page 5, Line 15revenue, the enterprise may:
Page 5, Line 16(A) Invest the revenue without regard to the limitations
Page 5, Line 17set forth in section 24-36-103, 24-75-601.1, or 24-75-603; and
Page 5, Line 18(B) Enter into contracts with private professional fund
Page 5, Line 19managers to provide expertise, technical support, and advice on
Page 5, Line 20investment market conditions. In seeking bids for such
Page 5, Line 21contracts, the enterprise shall employ standard public bidding
Page 5, Line 22practices, including the use of requests for information,
Page 5, Line 23requests for proposals, or any other standard vendor selection
Page 5, Line 24practices determined by the enterprise to be best suited to
Page 5, Line 25selecting an appropriate private professional fund manager.".
Page 5, Line 26Page 22, strike lines 13 through 23 and substitute:
Page 5, Line 27"(VIII) Engage the services of public or private entities,
Page 5, Line 28contractors, or consultants for professional and technical
Page 5, Line 29assistance and to provide advice and other services related to
Page 5, Line 30conducting the affairs of the enterprise, without regard to the
Page 5, Line 31"Procurement Code", articles 101 to 112 of title 24. In
Page 5, Line 32conducting its affairs, the enterprise shall:
Page 5, Line 33(A) Engage the attorney general's office for legal
Page 6, Line 1services; and
Page 6, Line 2(B) Enter into a contract or contracts with the division
Page 6, Line 3at fair market rates for office space and administrative staff
Page 6, Line 4for the enterprise; and".
Page 6, Line 5Page 22, line 25, strike "(9)" and substitute "(8)".
Page 6, Line 6Page 23, strike lines 8 through 20 and substitute:
Page 6, Line 7"(4) Fee - rules. (a) Beginning in the 2026 calendar year on
Page 6, Line 8or before a date determined by the enterprise, and annually
Page 6, Line 9each calendar year thereafter on or before the same date, the
Page 6, Line 10enterprise shall impose a fee pursuant to subsection (4)(b) of this
Page 6, Line 11section on a per-policy basis on each policyholder of a
Page 6, Line 12homeowner's insurance policy issued in the admitted market
Page 6, Line 13covering property located in or risks in the state; except that
Page 6, Line 14the enterprise shall not impose a fee on policyholders that have
Page 6, Line 15mitigated the covered property to meet the Insurance Institute
Page 6, Line 16for Business and Home Safety wildfire mitigation standards or
Page 6, Line 17similar standards, as determined by the board by rule.
Page 6, Line 18(b) The amount of the fee is an amount equal to one-half
Page 6, Line 19percent on the percentage of total premiums collected by each
Page 6, Line 20insurer in the admitted market in the immediately preceding
Page 6, Line 21calendar year on homeowner's insurance policies issued in the
Page 6, Line 22state.
Page 6, Line 23(c) Each insurer shall collect the fee from its
Page 6, Line 24policyholders, pay the fee to the enterprise, and list the fee as
Page 6, Line 25an itemized charge on its insurance policy billing statements.
Page 6, Line 26(d) The fee is not a premium for any purpose, including the
Page 6, Line 27computation of the gross premium tax pursuant to section
Page 6, Line 2810-3-209 or an insurance producer's commission.
Page 6, Line 29(e) The enterprise shall adopt any rules necessary for the
Page 6, Line 30imposition and collection of the fee.".
Page 6, Line 31Page 23, line 25, strike "catastrophe bonds and".
Page 6, Line 32Page 24, line 4, strike "insurers" and substitute "policyholders".
Page 6, Line 33Page 24, line 5, strike "catastrophe bonds and".
Page 6, Line 34Page 24, line 26, strike "adjust" and substitute "lower".
Page 6, Line 35Page 25, strike lines 4 through 11.
Page 7, Line 1Renumber succeeding subsections accordingly.
Page 7, Line 2Page 29, after line 8 insert:
Page 7, Line 3"10-4-2105. Severability. If any provision of this part 21 or
Page 7, Line 4the application thereof to any person or circumstance is held
Page 7, Line 5invalid, such invalidity does not affect other provisions or
Page 7, Line 6applications of this part 21 that can be given effect without the
Page 7, Line 7invalid provision or application, and to this end the provisions of
Page 7, Line 8this part 21 are declared to be severable.".
Page 7, Line 9Page 29, line 9, strike "10-4-2105." and substitute "10-4-2106.".
Page 7, Line 10Page 29, strike lines 25 through 27.
Page 7, Line 11Page 30, strike lines 1 through 16.
Page 7, Line 12Renumber succeeding sections accordingly.
Page 7, Line 13Page 31, after line 2 insert:
Page 7, Line 14"SECTION 4. In Colorado Revised Statutes, 10-4-110.8, amend
Page 7, Line 15(6)(b) as follows:
Page 7, Line 1610-4-110.8. Homeowner's insurance - prohibited and required
Page 7, Line 17practices - estimates of replacement value - additional living expense
Page 7, Line 18coverage - copies of policies - personal property contents coverage -
Page 7, Line 19inventory of personal property - requirements concerning total loss
Page 7, Line 20scenarios resulting from wildfire disasters - definitions - rules.
Page 7, Line 21(6) (b) (I) All homeowner's insurance replacement-cost policies for a
Page 7, Line 22dwelling must include additional living expense coverage. This coverage
Page 7, Line 23must be available for a period of at least twelve months and is subject to
Page 7, Line 24other policy provisions. Insurers shall offer policyholders the opportunity
Page 7, Line 25to purchase a total of twenty-four months of ALE coverage and give an
Page 7, Line 26applicant an explanation of the purpose, terms, and cost of this coverage.
Page 7, Line 27This paragraph (b) subsection (6)(b) does not apply to any a
Page 7, Line 28homeowner's insurance policy that already includes at least twenty-four
Page 7, Line 29months of ALE coverage as a standard provision.
Page 7, Line 30(II) In addition to offering a replacement-cost policy in
Page 7, Line 31accordance with subsection (6)(b)(I) of this section, an insurer
Page 7, Line 32may offer a replacement-cost policy that has a reasonable
Page 7, Line 33coverage limit or percentage cap for additional living expenses
Page 7, Line 34if the insurer provides a premium decrease for the coverage limit
Page 7, Line 35or percentage cap that is approved by the division.".
Page 8, Line 1Strike "from insurers" on: Page 6, line 2; Page 8, line 25; and Page 11,
Page 8, Line 2line 12.
Page 8, Line 3Strike "catastrophe and" on: Page 22, lines 4 and 5; Page 24, line 8;
Page 8, Line 4and Page 25, lines 15 and 26.