HB 2268
Initials BSR Page 1 Caucus & COW
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-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
Caucus & COW
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 Insurance and Financial Institutions (DIFI).
History
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 DIFI, to:
a) review fire risk data and tools to help identify communities at the greatest risk of
wildfire damage;
b) prioritize funding to cities, towns (municipalities) and fire districts that have adopted
building codes that are demonstrated to reduce wildfire risks;
c) review publicly available insurance data to identify communities that may be
experiencing high levels of insurance nonrenewals or premium increases due to
enhanced wildfire risk; and
d) provide grants, to the extent the Authority has available funding, to rural
municipalities, counties and fire districts impacted by elevated fire risks as outlined.
(Sec. 1)
2. Requires the Authority membership to consist of:
a) the DIFI Director or its designee; HB 2268
Initials BSR Page 2 Caucus & COW
b) the Arizona Department of Forestry and Fire Management Director or its designee;
c) three members who are insurance producers or employees of insurance companies
that write homeowner's or commercial insurance policies;
d) one member who represents a rural county that experiences high fire risk;
e) one member who represents municipalities that experience high fire risk; and
f) one member who represents a rural fire district. (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 five members
of the Authority. (Sec. 1)
6. Allows the Authority to hire staff members and provide work facilities and equipment as
necessary. (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 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 DIFI for the Authority must be used by DIFI
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)