Page 1 of 1 LRC 2024-BR1360-HB256
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2024 REGULAR SESSION
MEASURE
2024 BR NUMBER 1360 HOUSE BILL NUMBER 256
TITLE AN ACT relating to the promotion of stronger homes to resist losses due to catastrophic weather
events and making an appropriation therefor.
SPONSOR Representative Michael Sarge Pollock
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT(S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Department of Insurance
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Strengthen
Kentucky Homes Program, Examination Expense Revolving Fund, Insurance Regulatory Trust Fund
FISCAL
ESTIMATES
2023-2024 2024-2025 2025-2026 ANNUAL IMPACT AT
FULL
IMPLEMENTATION
REVENUES $5,000,000
EXPENDITURES ($5,000,000) ($330,000)
NET EFFECT $0 ($330,000)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: The purpose of this measure is to establish the Strengthen
Kentucky Homes Program, which will provide financial grants to assist in reducing losses due to
catastrophic wind and hail events with fortified construction standards. The bill also requires
property insurance companies to provide premium discounts for properties that have received a
qualifying certificate of compliance.
FISCAL EXPLANATION: The bill transfers $5 million in Restricted Funds in fiscal year 2026
from the Department of Insurance into the Strengthen Kentucky Homes Program fund to
implement and administer the program. The department will require three additional personnel to
review premium discounts and rate reductions submitted by insurers, perform audits, and provide
enforcement of the program, which is estimated to cost $330,000 annually. The commissioner is
also required to seek and obtain grants from the federal government to supplement
appropriations made to the fund. This program will have recurring expenditures annually with
new personnel and operating costs; however, it only provides one-time funding with the
Restricted Funds transfer.
DATA SOURCE(S): LRC Staff
PREPARER: Sara Rome NOTE NUMBER : 44 REVIEW: JB DATE: 2/9/2024