Bill Text: CA SB1199 | 2019-2020 | Regular Session | Amended

California Senate Bill 1199 (Prior Session Legislation)

Bill Title: Commission on Home Hardening.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2020-07-27 - From committee with author's amendments. Read second time and amended. Re-referred to Com. on G.O. [SB1199 Detail]

Download: California-2019-SB1199-Amended.html

Amended IN Assembly July 27, 2020

Amended IN Senate June 18, 2020

Amended IN Senate March 25, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill

No. 1199

Introduced by Senator McGuire
(Coauthor: Senator Jackson)

February 20, 2020

An act to amend Section 12804 of, and to add Chapter 17 (commencing with Section 8899.80) to Division 1 of Title 2 of, the Government Code, and to add Article 4 (commencing with Section 2090) to Chapter 2 of Part 1 of Division 2 of the Insurance Code, relating to state government.

LEGISLATIVE COUNSEL'S DIGEST

SB 1199, as amended, McGuire. Commission on Home Hardening.

Existing law establishes in state government the Business, Consumer Services, and Housing Agency, comprised of the Department of Consumer Affairs, the Department of Housing and Community Development, the Department of Fair Employment and Housing, the Department of Business Oversight, the Department of Alcoholic Beverage Control, the Alcoholic Beverage Control Appeals Board, the California Horse Racing Board, and the Alfred E. Alquist Seismic Safety Commission.

This bill would establish the Commission on Home Hardening within the Business, Consumer Services, and Housing Agency. The commission would be a 6-member body composed of, among others, the Insurance Commissioner, the State Fire Marshal, the Director of Housing and Community Development, and the Director of the Office of Emergency Services, or any of their respective designees. The bill would require the commission to develop a 3-tiered system of fire prevention levels for structures in a Wildland Urban Interface environment, as specified. The bill would require the commission to develop guidelines for certifying structures within the 3-tiered system by third-party inspectors and best practices for home hardening and wildfire mitigation for homeowners seeking certification. The bill would require the commission to work with stakeholders from fire protection districts, the insurance industry, building trades industry, planning associations, and cities and counties in developing the 3-tiered system and would require the system to comply with certain standards.

This bill would also require the commission to develop new wildfire community hardening standards, as specified, and provide for a certification process for communities that meet these standards. The bill would require the commission to serve as a clearinghouse for information and studies relative to mitigation effectiveness in order to make recommendations on mitigation standards, and to consult with the Insurance Institute for Business and Home Safety to develop recommended residential property insurance discounts for insurers to consider for residential properties meeting the structure type certifications and the certified wildfire community hardening standards.

Existing law provides that a residential property insurance policy shall not be issued or renewed in this state unless it complies with certain requirements.

This bill would ~~require~~ authorize admitted insurers offering residential property insurance in this ~~state, in setting rates and issuing residential property insurance,~~ state to take into consideration the ~~type structure~~ certifications and certified wildfire community hardening standards developed pursuant to these provisions. The bill would also require an admitted insurer to renew, for no less than 36 months, residential property insurance policies for residences certified under the wildfire community hardening standards in high or very high fire risk hazard severity zones. provisions for purposes of developing or revising underwriting guidelines or insurance rates.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Chapter 17 (commencing with Section 8899.80) is added to Division 1 of Title 2 of the Government Code, to read:

CHAPTER 17. Commission on Home Hardening

8899.80.

(a) There is created in the state government the Commission on Home Hardening as an independent unit within the Business, Consumer Services, and Housing Agency.

(b) The commission exists as a separate unit within the Business, Consumer Services, and Housing Agency, and has the functions of prescribing policy, holding meetings and setting dates of the meetings, and holding hearings insofar as those powers are given by statute to the commission.

(c) The decisions and actions of the commission, with respect to exercising its authority and carrying out its duties under this chapter, or any other applicable law, are not subject to review by the Secretary of Business, Consumer Services, and Housing, but are final within the limits provided by this chapter.

(d) The commission shall report annually to the Governor and to the Legislature on its findings, progress, and recommendations relating to home hardening and other wildfire prevention mitigation issues, as requested by the Governor or the Legislature.

8899.81.

(a) The Commission on Home Hardening shall consist of the following six members:

(1) The Insurance Commissioner or their designee.

(2) The State Fire Marshal or their designee.

(3) The Director of Housing and Community Development or their designee.

(4) The Director of Emergency Services or their designee.

(5) A representative on behalf of the insurance industry, as appointed by the Insurance Commissioner.

(6) A representative on behalf of consumer advocacy groups, as appointed by the Insurance Commissioner.

(b) The commission shall elect annually from its membership its own chairperson and vice chairperson and may replace them with other commissioners by majority vote.

8899.82.

(a) (1) The commission shall be tasked with developing a 3-tiered system of fire prevention levels for structures in a Wildland-Urban Interface environment. The 3 tiers shall reflect the following prevention levels:

(A) A Type III structure shall provide basic fire prevention.

(B) A Type II structure shall be ember resistant.

(2) ~~(A)~~The commission shall develop guidelines for certifying structures within the 3-tiered system by third-party inspectors.

(B)An admitted insurer that offers residential property insurance shall provide insurance in accordance with Section 2090 of the Insurance Code to structures certified pursuant to this section, as applicable.

(3) The commission shall develop guidelines and best practices for home hardening and wildfire mitigation for homeowners seeking certification pursuant to this section.

(b) (1) The commission shall work with stakeholders from fire protection districts, the insurance industry, the building trades industry, planning associations, and cities and counties in developing the 3-tiered system and the related regulations described in subdivision (a).

(2) In establishing the measures for Type I structure compliance, the commission shall consider the measures found in the California Building Code, Materials and Construction Methods for Exterior Wildfire Exposure (Chapter 7A (commencing with Section 701A.1) of Part 2 of Title 24 of the California Code of Regulations) and the Office of the State Fire Marshal’s low-cost retrofit list. The requirements for Type I structures shall not exceed the stringency of those measures required for new homes by the California Building Code, Materials and Construction Methods for Exterior Wildfire Exposure (Chapter 7A (commencing with Section 701A.1) of Part 2 of Title 24 of the California Code of Regulations). The measures for Type II structures shall be a subset of the features required for Type I structures.

8899.83.

The commission shall be tasked with developing new wildfire community hardening standards, using the tiered system in Section 8899.82, as a model and provide for a certification process for communities that meet these standards. In developing these hardening standards and certification process, the commission shall consult with stakeholders from fire protection districts, the insurance industry, the building trades industry, planning associations, and cities and counties.

~~The commission shall serve as a clearinghouse for information and studies relative to mitigation effectiveness that shall be used to make recommendations on mitigation standards.~~

8899.84.
(a) The commission shall serve as a clearinghouse for information and studies relative to mitigation effectiveness that shall be used to make recommendations on mitigation standards.
(b) The commission shall publish all data, studies, research, and other information used to support the certification standards in a manner accessible to insurers, loss model vendors, the Department of Insurance, and others, for the purposes of evaluating risk exposure, the development of insurance rates, and other purposes.

8899.85.

The commission shall consult with the Insurance Institute for Business and Home Safety to develop recommended discounts for admitted insurers to consider in setting rates and issuing coverage to residential properties meeting the standards developed pursuant to Sections 8899.82 and 8899.83.

SEC. 2.

Section 12804 of the Government Code is amended to read:

12804.

(a) There is in the state government the Business, Consumer Services, and Housing Agency.

(b) The Business, Consumer Services, and Housing Agency shall consist of the following: the Department of Consumer Affairs, the Department of Real Estate, the Department of Housing and Community Development, the Department of Fair Employment and Housing, the Department of Business Oversight, the Department of Alcoholic Beverage Control, the Alcoholic Beverage Control Appeals Board, the California Horse Racing Board, the Alfred E. Alquist Seismic Safety Commission, and the Commission on Home Hardening.

SEC. 3.

Article 4 (commencing with Section 2090) is added to Chapter 2 of Part 1 of Division 2 of the Insurance Code, to read:

Article 4. Wildfire Areas

2090.

~~(a)~~An admitted insurer that offers residential property insurance in this ~~state, in setting rates and issuing residential property insurance, shall~~ state may take into consideration the ~~type structure~~ certifications developed pursuant to ~~Section~~ Sections 8899.82 and 8899.83 of the Government ~~Code.~~ Code for purposes of developing or revising underwriting guidelines or insurance rates. The Commission on Home Hardening shall provide to any insurer, loss model vendor, the Department of Insurance, and others, any data used to support the certification standards.

(b)An admitted insurer that offers residential property insurance in this state, in setting rates and issuing residential property insurance, shall take into consideration the certified wildfire community hardening standards developed pursuant to Section 8899.83 of the Government Code.
(c)An admitted insurer shall renew, for no less than 36 months, residential property insurance policies for residences certified under the wildfire community hardening standards developed pursuant to Section 8899.83 of the Government Code in high or very high fire risk hazard severity zones, as determined and mapped by the Department of Forestry and Fire Protection.