HB 2268
Initials BSR Page 1 Land, Agriculture & Rural Affairs
☐ Prop 105 (45 votes) ☒ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
HB 2268: fire districts; homeowner's policies; DIFI
Sponsor: Representative Livingston, LD 28
Committee on Land, Agriculture & Rural Affairs
Overview
Establishes the Rural Fire Districts Grant Program (Program) within the Arizona
Department of Insurance and Financial Institutions (DIFI) to award grant monies to rural
fire districts located in wildfire-prone areas.
History
DIFI regulates the insurance industry as well as financial institutions and enterprises by
issuing licenses, conducting examinations and investigating consumer complaints. DIFI
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
1. Creates the Program within DIFI to award grant monies to rural fire districts located in
wildfire-prone areas identified by Arizona Department of Forestry and Fire Management.
(Sec. 1)
2. Creates the Rural Fire Districts Grant Program Fund (Fund), administered by DIFI, that
consists of monies deposited to DIFI by insurers and any public or private monies DIFI
may receive for the Fund.
3. Specifies grant monies must be used only to purchase capital equipment as outlines and
construct or renovate fire stations. (Sec. 1)
4. Requires DIFI to annually distribute monies from the Fund to eligible rural fire districts.
(Sec. 1)
5. Instructs DIFI to give preference to rural fire districts that receive matching monies from
other sources. (Sec. 1)
6. States monies in the Fund are continuously appropriated and exempt from lapsing. (Sec.
1) HB 2268
Initials BSR Page 2 Land, Agriculture & Rural Affairs
7. Requires each insurer that issues homeowner's insurance policies to pay an annual fee of
$2 on each homeowner's insurance policy issued by the insurer. (Sec. 1)
8. Stipulates that the fee must be fully earned and nonrefundable at the time the insurer
collects the premium for the homeowner's insurance policy. (Sec. 1)
9. Instructs each insurer to transmit the fees by January 1 and July 1 each year to DIFI for
deposit in the Fund. (Sec. 1)
10. Allows DIFI to adopt rules and forms to implement the Program and Fund. (Sec. 1)
11. States DIFI can retain up to 10% of monies in the Fund to administer the Program. (Sec.
1)
12. Defines rural fire district. (Sec. 1)
13. Contains a Prop 108 clause. (Sec. 2)