Bill Text: MI SB1128 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: Insurance: property and casualty; grants for certain properties to resist loss due to common weather-related perils; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding ch. 29A.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-07-29 - Referred To Committee On Finance, Insurance, And Consumer Protection [SB1128 Detail]
Download: Michigan-2025-SB1128-Introduced.html
SENATE BILL NO. 1128
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding chapter 29A.
the people of the state of michigan enact:
CHAPTER 29A
Sec. 2960. As used in this chapter:
(a) "Eligible property" means a residential property designated as meeting fortified roof program standards as administered by IBHS or any other risk reduction standard designated by the director.
(b) "Fortified" means the trademark owned by the Insurance Institute for Business and Home Safety.
(c) "Fortified roof" means the trademark owned by the Insurance Institute for Business and Home Safety.
(d) "Fund" means the strengthen MI home fund created under section 2964.
(e) "IBHS" means the Insurance Institute for Business and Home Safety.
(f) "Program" means the strengthen MI homes program established under section 2961.
Sec. 2961. (1) The strengthen MI homes program is established within the department. The purpose of the program is to provide grants to retrofit eligible property to resist loss because of common weather-related perils, including, but not limited to, tornadoes, hail, or other catastrophic windstorm events.
(2) A grant under this section must be used to retrofit an eligible property.
(3) A project approved under this section must be completed not later than 3 months after the department approves the grant unless extended by the director. Failure to complete the project in the time frame approved by the department may result in the forfeiture of the grant.
(4) To be eligible for a grant, a property owner applying for a grant must be able to meet the eligibility requirements established by the department. These requirements include, but are not limited to, all of the following:
(a) The property owner must have eligible property that has been granted a homestead exemption.
(b) The property to be mitigated must be an owner-occupied, detached, single family, primary residence and cannot be a condominium or mobile home.
(c) A certified IBHS evaluator must prequalify the property as mitigable and identify all improvements required to achieve IBHS or successor standards. The property owner shall select the evaluator from a list provided by the program and pay the evaluator's fee.
(d) The property owner must obtain bids from at least 3 IBHS certified contractors approved by the program or from as many IBHS certified contractors that self-designate to work within the zip code where the property is located.
(e) The property owner must select a contractor to retrofit the home to IBHS, or similar standard approved by the director, which must include the hail supplement.
(f) The property owner must provide proof of an in-force policy providing insurance on the home.
(g) If the property is in a special flood hazard area, the property owner must provide proof of an in-force flood insurance policy. The flood policy may be from the National Flood Insurance Program or a private carrier.
(5) A grant application must be filed with the department in the form and manner prescribed by the director, along with any applicable transaction fees.
(6) Documents, materials, and other information submitted to the department by property owners or insurance companies in support of a grant application must meet all of the following requirements:
(a) Be confidential by law and privileged.
(b) Except as otherwise provided in section 814a, not be subject to open records requests, subpoenas, and as discovery or admissible in evidence in any private civil action.
Sec. 2962. (1) To be eligible to work as a contractor on a project funded under this chapter, the contractor must meet all of the following program requirements and must maintain a current copy of all certificates, licenses, and proof of insurance coverage with the program office and meet all of the following requirements:
(a) Hold a valid residential building contractor and residential maintenance and alteration contractor license issued by the department of licensing and regulatory affairs.
(b) Not be subject to disciplinary action by any governmental entity.
(c) Hold any other valid state or jurisdictional business license or work permits required by law.
(d) Possess an in-force general liability policy with $1,000,000.00 in disability coverage.
(e) Possess an in-force workers compensation policy.
(f) Possess a certificate of compliance from the state treasurer.
(g) Successfully complete the fortified roof for high wind and hail training provided by IBHS or successor certification and maintain an active certification. The training may be offered as separate courses.
(h) Agree to the terms and successfully register as a vendor with the department of licensing and regulatory affairs and receive direct deposit of payment for mitigation work performed under the program.
(i) Maintain internet access and keep a valid email address on file with the program.
(j) Hold an active IBHS Fortified Roof Contractor Certification, Fortified Professional Certification, or successor certification. The contractor shall pay all fees associated with certification and training.
(k) Agree to follow program procedures and rules established under this section and by the director.
(2) An eligible contractor must not have a financial interest, other than payment on behalf of the homeowner, in any project for which the eligible contractor performs work toward a fortified designation under the program. An eligible contractor shall not act as the evaluator for a fortified designation on any project funded by the program. An eligible contractor shall report to the director any potential conflict of interest before work commences on any job funded by the program.
(3) To be eligible to work on the program as an evaluator, the evaluator must meet all program eligibility requirements and must submit to the director and maintain a copy of all current certificates and licenses. The evaluator must meet both of the following requirements:
(a) Be in good standing with IBHS and maintain an active certification as a fortified home evaluator for high wind and hail or a successor certification.
(b) Be a current contractor or possess any other professional license required by IBHS to be an evaluator and be a registered entity with the corporation division of the department of licensing and regulatory affairs.
(4) An evaluator must not have a financial interest in any project that the evaluator inspects for designation purposes for the program. An evaluator must not be an eligible contractor or supplier of any material, product, or system installed in any home that the evaluator inspects for designation purposes for the program. An evaluator must not be a sales agent for any home being designated for the program. An evaluator shall inform the director of any potential conflict of interest impacting the evaluator's participation in the program.
(5) An application for a grant under this section must be accepted and approved using criteria the director determines is appropriate to meet the purpose of the program.
(6) When a grant is approved, an approval letter must be sent to the applicant from the department.
(7) An eligible contractor shall not begin work until a grant is approved. Before beginning work on an approved project, the contractor selected to do the work shall submit all of the following to the director:
(a) A copy of a contract or other final written agreement that details the scope of the work to be performed and details on how grant funds will be used in the project.
(b) An affidavit stating that the work will be completed to IBHS standards.
(8) After a grant application is approved, the eligible contractor selected by the homeowner may begin the mitigation work.
(9) After the mitigation work is completed, the eligible contractor shall submit a copy of the final invoice and an affidavit stating that the fortified standards were met by the work to the director.
(10) An IBHS evaluator shall conduct all required evaluations, including a required interim inspection during construction and the final inspection, and confirm that the work was completed according to the mitigation specifications.
(11) Grant money must be released on behalf of an approved applicant only after a fortified designation certificate has been issued for the home. The program or another designated entity must, on behalf of the homeowner, directly pay the eligible contractor that performed the mitigation work. The program or the program's designated entity shall pay the eligible contractor the costs covered by the grant. The homeowner shall pay the contractor for the remaining cost. Documentation concerning an amount paid by the homeowner must be sent to the department not later than 30 days after the homeowner's payment was made.
Sec. 2963. (1) The director shall confirm that the homeowner's insurer provides the appropriate premium discount required under section 2132a.
(2) The department may conduct random inspections of funds, records, and properties to detect any fraud and may submit any evidence of irregularities to any government, law enforcement, or other regulatory agency.
(3) The property owner is responsible for covering all expenses not covered by the grant amount.
Sec. 2964. (1) The strengthen MI home fund is created within the department of treasury. The state treasurer may receive money or other assets from any source for deposit into the fund. The state treasurer may direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments. Money in the fund at the close of the fiscal year must remain in the fund and not lapse to the general fund.
(2) The department shall expend money from the fund, upon appropriation, only for 1 or more of the following purposes:
(a) Grants issued under the program.
(b) The reasonable costs incurred by the department to administer the program.
(3) The program does not create an entitlement or right to use the program. The department is not required to administer the program unless the legislature appropriates sufficient money for the program. The department may administer the program subject to any limitations the department considers necessary or appropriate in the absence of the legislature appropriating money for the program. The department may obtain grants or other money from any funding sources to support and enhance program activities.
(4) All mitigation under this section is contingent on the contractors securing all required local permits and applicable inspections to comply with local building codes and applicable fortified program standards. A mitigation project receiving a grant under this section is subject to random inspections of funds, records, and properties at a later date.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 103rd Legislature are enacted into law:
(a) House Bill No. ____ (request no. H07606'26).
(b) House Bill No. ____ (request no. H07607'26).
