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June 29, 2022 HB 22-1111
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0277
Rep. Amabile
Sen. Rankin; Fenberg
Date:
Bill Status:
Fiscal Analyst:
June 29, 2022
Signed into Law
Clare Pramuk | 303-866-2677
clare.pramuk@state.co.us
Bill Topic: INSURANCE COVERAGE FOR LOSS DECLARED FIRE DISASTER
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Diversion
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill changes the requirements for homeowner’s insurance coverage and claims
handling when the damages are a result of a declared wildfire disaster. It diverts
money from the General Fund and increases state expenditures in FY 2022-23 only.
Appropriation
Summary:
For FY 2022-23, the bill requires and includes an appropriation of $66,781 to the
Department of Regulatory Agencies.
Fiscal Note
Status:
The fiscal note reflects the enacted bill.
Table 1
State Fiscal Impacts Under HB 22-1111
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures Cash Funds $66,781 -
Centrally Appropriated $21,677 -
Total Expenditures $88,458 -
Total FTE 1.0 FTE -
Diversion General Fund ($88,458) -
Cash Funds $88,458 -
Net Diversion $0 -
Other Budget Impacts
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June 29, 2022 HB 22-1111
Summary of Legislation
The bill changes the requirements for homeowner’s insurance coverage and claims handling in the
event of a total loss of an owner-occupied residence, including the contents, when the loss is a result
of a wildfire disaster declared by the Governor. The bill requires insurers to provide additional time
and flexibility in rebuilding or replacing an insured residence and its contents, additional living
expense coverage, building code upgrade costs, and a way to directly contact the insurer as detailed
in the bill. The Commissioner of Insurance in the Department of Regulatory Agencies is required to
adopt rules to simplify the process for policyholders to submit an inventory for personal property
losses, and may adopt other rules to implement the bill.
State Diversion
This bill diverts $88,458 from the General Fund in FY 2022-23. This revenue diversion occurs because
the bill increases costs in the Department of Regulatory Agencies, Division of Insurance, which is
funded with premium tax revenue that would otherwise be credited to the General Fund.
State Expenditures
The bill increases state expenditures in Department of Regulatory Agencies by $88,458 in FY 2022-23
only, paid from the Division of Insurance Cash Fund. Expenditures are shown in Table 2 and detailed
below.
Table 2
Expenditures Under HB 22-1111
FY 2022-23 FY 2023-24
Department of Regulatory Agencies
Personal Services $59,231 -
Operating Expenses $1,350 -
Capital Outlay Costs $6,200 -
Centrally Appropriated Costs
1
$21,677 -
Total Cost $88,458 -
Total FTE 1.0 FTE -
1
Centrally appropriated costs are not included in the bill's appropriation.
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June 29, 2022 HB 22-1111
Department of Regulatory Agencies. In FY 2022-23 this bill will increase expenditures for review of
rate and form filings and rulemaking as described below.
Review of Rate and Form Filings. The bill will increase filings of homeowner’s insurance rates
and forms to the Division of Insurance for review. There are currently 182 insurers writing
homeowner’s insurance coverage in Colorado that are expected to submit approximately 350 rate
and form filings in FY 2022-23. Each rate and form filing requires 6 hours to review, so the division
requires an additional Rate/Financial Analyst to address this workload. The fiscal note assumes
that all rate and form filings submitted as a result of this bill will be filed in FY 2022-23. Standard
operating and capital outlay costs are included.
Rulemaking. The bill will increase workload to conduct rulemaking to reflect the changes in
homeowner’s insurance coverage requirements and conduct outreach about the new rules. This
increase can be accomplished within existing resources.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 2.
Effective Date
The bill was signed into law by the Governor on June 2, 2022, and takes effect August 9, 2022, assuming
no referendum petition is filed. It applies to the offer, issuance, and renewal of property and casualty
insurance policies in the state and the administration of claims on such policies on and after the
effective date.
State Appropriations
For FY 2022-23, the bill requires and includes an appropriation of $66,781 to the Department of
Regulatory Agencies from the Division of Insurance Cash Fund and 1.0 FTE.
State and Local Government Contacts
Information Technology Law Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.