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SB-292 Prepared California Disaster Mitigation Fund.(2019-2020)

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Date Published: 06/17/2019 09:00 PM
SB292:v98#DOCUMENT

Amended  IN  Assembly  June 17, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 292


Introduced by Senator Rubio

February 14, 2019


An act to amend Sections 1722 and 1751.5 of add Division 6 (commencing with Section 17000) to the Insurance Code, relating to insurance. disaster mitigation, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 292, as amended, Rubio. Independent insurance adjusters. Prepared California Disaster Mitigation Fund.
Existing law establishes the Department of Insurance, headed by the Insurance Commissioner, which regulates insurers and insurance practices. Existing law establishes various classes of insurance, including, among others, fire and automobile insurance. Other existing law establishes various grant programs aimed at funding disaster mitigation activities, including a local assistance grant program for fire prevention administered by the Department of Forestry and Fire Protection, the Earthquake Brace and Bolt program administered by the California Residential Mitigation Program, a joint powers authority comprised of the California Earthquake Authority and the Office of Emergency Services, and specified flood prevention programs administered by the Department of Water Resources.
This bill would create the Prepared California Disaster Mitigation Board in state government comprised of specified state officers or their designees and appointed members of the public, as specified. The bill would also establish the Prepared California Disaster Mitigation Program to be administered by the board to award grants to homeowners for fire-related disaster mitigation activities, as specified.
The bill would create the Prepared California Disaster Mitigation Fund, as a continuously appropriated fund, for purposes of disaster mitigation. The bill would impose a $12 annual assessment on all residential property insurance policies, a $6 per vehicle annual assessment on all private passenger and commercial automobile insurance policies, and an annual assessment of 1% of the annual premium on all commercial insurance policies covering physical property damage or business interruption. The bill would require the assessments to be collected from policyholders by insurers and remitted to the department for deposit into the fund. By creating a continuously appropriated fund, the bill would make an appropriation.
The bill would require the board to annually distribute money from the fund, as it deems appropriate, based on the disaster mitigation needs of the state to specified state agencies, including at least 20% each to the Department of Forestry and Fire Protection for purposes of a local assistance grant program for fire protection activities, to the California Earthquake Authority for purposes of awarding grants pursuant to the Earthquake Brace and Bolt program, to the Department of Water Resources for purposes of specified flood control programs, and to the board to be awarded pursuant to the Prepared California Disaster Mitigation Program for purposes of grants to homeowners for fire-related disaster mitigation purposes. The bill would require the Department of Forestry and Fire Protection, the California Earthquake Authority, and the Department of Water Resources to report specified information to the board relating to the types of mitigation activities funded and information sufficient to allow the board to study mitigation effectiveness, as specified.
The bill would require the board to prepare a report to be submitted to the Legislature on or before January 1, 2021, and annually thereafter, that includes, among other things, a summary of the mitigation measures funded and an analysis of the effectiveness of those mitigation measures in preventing losses from wildfires, earthquakes, and floods, as specified. The bill would also require the board to prepare and submit a report to the Legislature on or before January 1, 2024, that contains recommendations for model homeowners insurance discounts based on the risk mitigation measures that the board has determined to reduce loss.

Existing law generally regulates the business of insurance in the state, including the licensing of surplus line brokers, persons who solicit, negotiate, and effect the undertaking of bail or bail bonds, life and disability insurance analysts, motor clubs, insurance adjusters, and public insurance adjusters. If any of those licensees, except for an insurance adjuster, enters the military service of the United States at a time prescribed for the filing of a license renewal application, existing law provides that the filing of the application is waived and the license shall remain in force during the period of military service, and for a specified time afterward, during which the licensee may secure a license of the same type without taking an examination or paying a penalty. Existing law deems the license application fees for a surplus line broker, a person who solicits, negotiates, and effects the undertaking of bail or bail bonds, a life and disability insurance analyst, or a public insurance adjuster to be filing fees, which shall not be refunded regardless of whether the application is acted upon or a license examination is taken.

This bill would include insurance adjusters among those licensees subject to these provisions.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) California has over $1 trillion in economic loss risk exposure from future catastrophic earthquakes, floods, and wildfires.
(2) Two-thirds of the earthquake risk in the United States resides in California, and California has a long history of damaging and lethal earthquakes.
(A) In 1994, the magnitude 6.7 Northridge earthquake killed 60 people, injured 9,000 more people, and displaced 125,000 people. The Northridge earthquake caused $49 billion in economic damage and $25 billion in property damage to over 80,000 buildings. At the time, it was the costliest natural disaster in United States history, but only $15.3 billion of the damaged was insured.
(B) In 1989, the magnitude 6.9 Loma Prieta earthquake killed 63 people, injured more than 3,700 people, displaced 3,000 people, damaged or destroyed 12,000 homes, and caused more than $6 billion in property damage.
(C) In 1971, the magnitude 6.6 Sierra Madre earthquake killed 58 people, damaged 30,000 homes, and brought down parts of the Interstate 5 and Interstate 210 freeways.
(D) In 1906, the magnitude 7.9 San Francisco earthquake killed 3,000 people, left 250,000 people homeless, and started a fire that destroyed 28,000 buildings over 500 city blocks.
(E) According to the latest Uniform California Earthquake Rupture Forecast, there is a 99 percent chance that an earthquake of a magnitude 6.7 or greater will occur in California in the next 30 years, as well as a 90 percent chance of a magnitude 7.0 or greater earthquake and a 46 percent chance of a magnitude 7.5 or greater earthquake occurring in the same period. According to the United States Geological Survey, a magnitude 7.0 earthquake on the Hayward Fault could displace 400,000 people and a similar earthquake on the San Andreas Fault could displace 250,000 people. A 7.8 magnitude earthquake could cause as much as $213 billion in economic damages to the state.
(F) Prior to the 1994 Northridge earthquake, the insurance industry dramatically underestimated the potential damage from such moderate earthquakes. After experiencing a record 1,192 percent loss ratio on earthquake lines due to the Northridge earthquake, many insurers considered leaving California. The Legislature created the California Earthquake Authority (CEA) to offer earthquake insurance in California and stabilize the homeowners insurance market. Over 1,000,000 Californians now hold a CEA policy, representing over 80 percent of the California earthquake insurance market, but only 12 percent of the state’s homeowners. Making CEA policies more affordable and attainable to all Californians residing in high earthquake risk areas of the state is critical to the state’s earthquake preparedness.
(3) Flooding occurs in all parts of California. About 90 percent of floods are riverine. The state has over 7 million inhabitants and over $580 billion in assets situated within 500-year flood plains. Nearly one-half of the people living in California are concentrated in the south coast region. Over the life of a 30-year mortgage, the true risk of living in a 500-year flood plain amounts to a 6 percent chance of flooding.
(A) Approximately 35 percent of agricultural land in the state is located in flood plains, with $7 billion in crop value located in 500-year flood plain zones.
(B) Continuation or acceleration of sea level rise, in combination with climate change driven precipitation changes, will likely result in an increase in flood events, especially in the central valley.
(C) In 1997, 48 counties were declared disaster areas due to a series of Pineapple Express storms overwhelming levees in the Sacramento and San Joaquin River basins. The major flood event inundated 300 square miles. Over 23,000 structures were damaged, nine people were killed, and 120,000 people were evacuated. Damages amounted to $2 billion.
(D) In 1995, a major flood event affected nearly every part of the state. Twenty-eight people were killed and the flood caused $1.8 billion in damages.
(E) In 1986, a major flood event occurred when a nine-day rainstorm caused several levee breaks, resulting in the inundation of four Delta islands. The Sierra Nevada recorded 1,000-year rainfalls, 50,000 people were evacuated, and 13 people were killed. The flood caused $400 million in property damage.
(F) In 1955, a statewide disaster was declared when a storm caused a flood that killed 74 people and caused $200 million in economic losses.
(G) In 1909, a 12,000-year rain event over the Feather River basin resulted in La Porte receiving 57.41 inches of rain over 20 days. The flood resulted in an overhaul of planned statewide flood control designs.
(H) In 1862, a storm dumped 10 feet of rainfall in California over 43 days, causing immense flooding. Known as the “Great Flood of 1862,” the flood washed away bridges and inundated over 5,000 square miles of the Central Valley with up to 30 feet of water. The Great Flood of 1862 was a 1,000-year flood event. Models that project the impact of such a storm today, also known as an ARkStorm, suggest up to 1.5 million people could be displaced and the state could suffer $725 billion in economic losses.
(I) The federal National Flood Insurance Program is $25 billion in debt, and is heavily subsidized. Private market flood insurance exists, but accurate flood risk data is unavailable. According to a 2017 United States Department of Homeland Security Office of Inspector General report, only 42 percent of the Federal Emergency Management Agency’s (FEMA’s) flood maps adequately identify the level of flood risk. These out-of-date maps interfere with price signals for insurance premiums and home prices, and do not adequately communicate the flood risk to would-be homebuyers or insurers.
(4) Over 2 million homes, or approximately 15 percent of California’s housing stock, is at high or extreme risk from wildfires. California’s total housing risk exposure to wildfire damage is $249 billion.
(A) The top 10 costliest wildfires in United States history have all occurred in California, and 6 of those occurred in 2017 and 2018. More people died from wildfires in 2017 and 2018 than in the last 10 years combined. The 2017 and 2018 fires caused a combined $24.8 billion in insurance claims, including $21.6 billion in residential personal property claims, $2.5 billion in commercial property claims, and approximately $500,000 in auto claims.
(B) Igniting November 8, 2018, the Camp Fire burned for 17 days, killed at least 85 people, and destroyed over 18,800 structures. It is not only the most expensive wildfire in United States history, but was the most expensive natural disaster worldwide in 2018. Insured losses reached $12.5 billion, while total losses were $16.5 billion.
(C) Also igniting November 8, 2018, the Woolsey Fire burned for 14 days, killed three people, and destroyed over 1,600 buildings. Insured losses are estimated at $3 billion to $5 billion of the $6 billion in total property losses.
(D) Igniting July 23, 2018, the Carr Fire burned for 37 days, killed eight people, including three firefighters, and destroyed over 1,600 structures. The fire caused over $1.5 billion in property damage.
(E) Igniting December 4, 2017, the Thomas Fire burned for 39 days, killed 23 people, including one firefighter and 21 people from a resulting mudslide, and destroyed over 1,000 structures. The fire caused over $2.2 billion in damages.
(F) Igniting October 8, 2017, the Tubbs Fire burned for 12 days, killed 22 people, and destroyed over 5,600 structures. Insured losses are estimated to be between $7.5 billion and $9.5 billion.
(G) Igniting October 8, 2017, the Atlas Fire burned for 12 days, destroyed 25,000 acres, and destroyed over 700 buildings. Insured losses are estimated to be between $2.5 billion and $4.5 billion.
(H) Burning for over three months in 2018, a less costly seventh fire, the Mendocino Complex Fire, became the largest recorded fire in state history when it consumed over 459,000 acres, more than the previous largest fire, the Thomas Fire, in 2017.
(I) According to a Department of Insurance 2018 report on the availability and affordability of wildfire coverage, major insurers are pulling back from writing new policies or renewing policies in the wildland-urban interface (WUI) fire areas. Additionally, premiums are increasing in the WUI, and most insurers do not take into consideration wildfire mitigation conducted by the homeowner or the community. This is in part because no single insurer has loss experience in the WUI to validate the rates and premiums charged for each wild fire risk model score. The department’s report further states that a credible database for wildfire loss experience in the WUI is needed in order for insurers to use rating plans that impact rates in the WUI and suggests that the Legislature should create a framework within which insurers offer a mitigation premium credit for property owners that conduct proper mitigation.
(5) Incentivizing homeowners to actively participate in mitigation measures is critical to statewide preparedness. Research shows that homeowners’ risk reduction behaviors are influenced by the perceived effectiveness of the activities and their perceived ability to complete them. Public outreach, information sharing, and a communitywide collaborative process on wildfire protection planning have been found to build trust among residents and local fire agencies.
(6) The National Institute of Building Sciences studied 23 years of federally funded mitigation grants provided by FEMA, the United States Economic Development Administration, and the United States Department of Housing and Urban Development, and found that hazard mitigation funding saves $6 in future disaster costs for every $1 invested. Further, the study found that designing buildings to meet the 2018 International Residential Code and 2018 International Building Code would provide a national benefit of $11 for every $1 of investment when compared to 1990-era building codes and National Flood Insurance Program requirements.
(b) It is, therefore, the intent of the Legislature to do all of the following:
(1) Establish an ongoing catastrophic risk mitigation fund to prepare California’s local governments, homeowners, and small businesses for our top natural disaster risks: earthquakes, wildfires, and floods.
(2) Increase investment in the Department of Forestry and Fire Protection’s (CAL FIRE’s) local assistance grant program for fire protection, so that local governments may invest in equipment, build fire lines, and launch community preparedness efforts.
(3) Increase investment in the California Earthquake Authority’s Earthquake Brace and Bolt program, as well as design additional retrofit programs, so that homeowners may affordably retrofit their homes and prepare for the next earthquake.
(4) Increase investment in the Department of Water Resources flood control grant programs, so that local governments have the resources to save their residents’ homes from floods.
(5) Increase investment in homeowners and small businesses that perform mitigation on their property, by offering grants and rebates for specific mitigation efforts, so that others may be incentivized to follow their lead.
(6) Study the effectiveness of mitigation measures for the benefit of homeowners and insurers by giving insurers a data-driven tool for the development of insurance premium credits and discounts for specific mitigation measures.

SEC. 2.

 Division 6 (commencing with Section 17000) is added to the Insurance Code, to read:

DIVISION 6. Disaster Mitigation

CHAPTER  1. Definitions

17000.
 For purposes of this division,“board” means the Prepared California Disaster Mitigation Board.

CHAPTER  2. Prepared California Disaster Mitigation Fund

17001.
 There is hereby created the Prepared California Disaster Mitigation Fund within the State Treasury. Notwithstanding Section 13340 of the Government Code, moneys in the fund are continuously appropriated without regard to fiscal year to the board for the purposes specified in this division.

17002.
 (a) An annual assessment is hereby imposed on the following insurance policies:
(1) A twelve-dollar ($12) annual assessment on all residential property insurance policies, including homeowner’s insurance, fire insurance, earthquake insurance, and policies covering condominiums and mobilehomes.
(2) A six-dollar ($6) per vehicle annual assessment on all private passenger and commercial automobile insurance policies.
(3) An annual assessment of 1 percent of the annual premium on all commercial insurance policies covering physical property damage or business interruption.
(b) The assessments shall be collected from policyholders by insurers and remitted to the Department of Insurance for deposit into the Prepared California Disaster Mitigation Fund.
(c) (1) Assessments collected pursuant to this section are not part of an insurer’s rates or rating plan, are not premiums for any purpose, and are not subject to premium taxes, fees, or commissions.
(2) The amount of the assessment shall be separately stated on either a billing or policy declaration sent to an insured.

CHAPTER  3. Prepared Disaster Mitigation Program

17010.
 There is hereby created the Prepared California Disaster Mitigation Board in state government.

17011.
 (a) The board shall be comprised of the following members:
(1) The Insurance Commissioner or their designee.
(2) The Director of Emergency Services or their designee.
(3) The Director of Forestry and Fire Protection or their designee.
(4) The Director of Water Resources or their designee.
(5) The Senate Committee on Rules shall appoint two members to serve three-year terms as follows:
(A) One member of the public with experience in the insurance industry.
(B) One member of the public with experience in the risk analytics industry.
(6) The Speaker of the Assembly shall appoint two members to serve three-year terms as follows:
(A) One member of the public with experience in the insurance industry.
(B) One member of the public with experience in fire science.
(7) The Governor shall appoint four members to serve at the pleasure of the Governor as follows:
(A) One member of the public with experience in the insurance industry.
(B) One member of the public to represent insurance consumers.
(C) One member of the public with expertise in earthquake engineering.
(D) One member of the public.
(b) The Governor shall appoint the chair of the board.
(c) The members of the board shall serve without compensation, but each of the public members shall be reimbursed for the member’s actual and necessary expenses incurred in the performance of that member’s duties.

17012.
 (a) There is hereby established the Prepared California Disaster Mitigation Program to be administered by the board to award grants to homeowners for fire-related disaster mitigation activities.
(b) The board shall develop, advertise, and offer to homeowners, mitigation grants and rebates designed to decrease risk of loss from wildfire or earthquake-caused fire, including any of the following:
(1) Grants for installation or replacement of the following:
(A) Fire-resistant roofing.
(B) Fire-resistant siding.
(C) Fire-resistant eaves or soffits.
(D) Fire-resistant windows.
(E) Exterior roof-mounted fire sprinklers.
(2) Grants for the replacement of exterior deck wood with fire-retardant treated wood or other fire safe materials.
(3) Grants for the removal of hazardous trees within 30 feet of a home.
(4) Rebates for the installation or replacement of the following:
(A) Earthquake shutoff valves.
(B) Exterior vent screens.
(C) Weatherstripping or fire seal strips.
(D) Trimming of hazardous trees within 100 feet of a home.
(E) Rain gutter guards or rain gutters designed to prevent accumulation of debris.
(5) Rebates for additional low-cost retrofits, as identified by the State Fire Marshal pursuant to subdivision (c) of Section 51189 of the Government Code, that provide comprehensive site and structure fire risk reduction.
(c) The board shall determine the amount of each grant or rebate to be offered as follows:
(1) An amount up to 100 percent of the cost for mitigation projects estimated to cost one thousand dollars ($1,000) or less.
(2) An amount up to 50 percent of the cost of mitigation projects estimated to cost more than one thousand dollars ($1,000), provided that no grant or rebate may be awarded for more than five thousand dollars ($5,000).
(d) The board shall collect data from grant and rebate recipients on the types and locations of mitigation efforts undertaken in order to confirm completion of the mitigation projects, and may collect data relating to any other factors necessary to allow the board to conduct a longitudinal study of the effectiveness of the mitigation measures to prevent damage during catastrophes.
(e) The board may develop and offer additional grants or rebates pursuant to subdivision (c) that are designed to decrease risk of loss from wildfire or earthquake-related fire.

CHAPTER  4. Disaster Mitigation Funding

17020.
 The board shall annually distribute money from the Prepared California Disaster Mitigation Fund to the state agencies listed in this section, as it deems appropriate, based on the disaster mitigation needs of the state. At a minimum, the board shall annually distribute the following sums of money:
(a) At least 20 percent to the Department of Forestry and Fire Protection for purposes of the local assistance grant program for fire protection activities pursuant to Section 4124.5 of the Public Resources Code, provided that only local agencies shall be eligible for grants made with these funds.
(b) At least 20 percent to the California Earthquake Authority for purposes of awarding grants pursuant to the Earthquake Brace and Bolt program.
(c) At least 20 percent to the Department of Water Resources for purposes of the Delta Levees Special Flood Control Projects Program, the Small Communities Flood Risk Reduction Program, the Flood Emergency Response Projects Grant Program, and the Local Levee Assistance Program.
(d) At least 20 percent to the board to be awarded pursuant to the Prepared California Disaster Mitigation Program for purposes of grants to homeowners for fire-related disaster mitigation purposes.
(e) Up to 5 percent to the board for operating expenses, and to administer the Prepared California Disaster Mitigation Program, including advertising the availability of grants and rebates to homeowners and fulfilling the board’s mitigation study obligations.

17021.
 The Department of Forestry and Fire Protection and the board shall do both of the following:
(a) Prior to the annual distribution of funds pursuant to subdivision (a) of Section 17020, agree on the wildfire mitigation projects to be funded, with an emphasis on protecting vulnerable populations. The Department of Forestry and Fire Protection shall consider socioeconomic characteristics of the communities to be protected, including data on poverty levels, residents with disabilities, language barriers, residents over 65 years of age or under 5 years of age, and households without a car.
(b) Develop a periodic reporting agreement for the grant funds awarded pursuant to subdivision (a) of Section 17020 that requires the Department of Forestry and Fire Protection to report information sufficient to allow the board to study wildfire mitigation effectiveness, including all of the following:
(1) Information on the types and locations of wildfire mitigation projects.
(2) Information on the damage caused by wildfires in areas where mitigation efforts have occurred.
(3) Other information the board finds necessary to study wildfire mitigation effectiveness.

17022.
 The California Earthquake Authority and the board shall do all of the following:
(a) Prior to the annual distribution of funds pursuant to subdivision (b) of Section 17020, agree on the earthquake mitigation projects to be funded, with an emphasis on protecting vulnerable populations. The authority shall consider socioeconomic characteristics of the communities to be protected, including data on poverty levels, residents with disabilities, language barriers, residents over 65 years of age or under 5 years of age, and households without a car.
(b) Develop a periodic reporting agreement for the grant funds awarded pursuant to subdivision (b) of Section 17020 that requires the authority to report information sufficient to allow the board to study earthquake mitigation effectiveness, including all of the following:
(1) Information on the types and locations of earthquake mitigation projects.
(2) Information on the damage caused by earthquakes in areas where mitigation efforts have occurred.
(3) Other information the board finds necessary to study earthquake mitigation effectiveness.
(c) Develop and propose to the Legislature additional cost-effective earthquake retrofit grant or low-cost loan programs for homeowners requiring seismic retrofit but who do not qualify for the Earthquake Brace and Bolt program, including owners of mobilehomes and condominiums, and for small businesses, as defined in subparagraph (A) of paragraph (1) of subdivision (d) of Section 14837 of the Government Code, that own real property.

17023.
 The Department of Water Resources and the board shall do both of the following:
(a) Prior to the annual distribution of funds pursuant to subdivision (c) of Section 17020, agree on the flood mitigation projects to be funded, with an emphasis on protecting vulnerable populations. The Department of Water Resources shall consider socioeconomic characteristics of the communities to be protected, including data on poverty levels, residents with disabilities, language barriers, residents over 65 years of age or under 5 years of age, and households without a car.
(b) Develop a periodic reporting agreement for the grant funds awarded pursuant to subdivision (c) of Section 17020 that requires the Department of Water Resources to report information sufficient to allow the board to study flood mitigation effectiveness, including all of the following:
(1) Information on the types and locations of flood mitigation projects.
(2) Information on the damage caused by flooding in areas where mitigation efforts have occurred.
(3) Other information the board finds necessary to study flood mitigation effectiveness.

CHAPTER  5. Reporting

17030.
 The Department of Insurance shall collect data regarding the availability of insurance in high-risk fire areas and report that data to the board on a periodic basis.

17031.
 The board shall prepare a report to be submitted to the Legislature on or before January 1, 2021, and annually thereafter, that includes at least all of the following:
(a) A summary of the amounts of the grants and rebates awarded pursuant to the Prepared California Disaster Mitigation Program and a summary of the mitigation measures implemented with those grants and rebates. The summary shall also include a discussion of any new grants or rebates under development.
(b) A summary of the mitigation measures funded pursuant to Section 17020, and an analysis of the effectiveness of those mitigation measures in preventing losses from wildfires, earthquakes, and floods, if applicable, given the types and locations of natural disasters.
(c) A summary of known existing mitigation discounts offered by residential property insurers.
(d) Recommendations for additional earthquake retrofit grant program proposals pursuant to subdivision (c) of Section 17022 to augment the Earthquake Brace and Bolt program.

17032.
 On or after January 1, 2022, the board shall contract with the California State Auditor’s Office to conduct an audit of the Prepared California Disaster Mitigation Board’s operations from inception to December 31, 2021, inclusive. The audit shall provide an independent assessment of the performance and management of the board and of the Prepared California Disaster Mitigation Program. The board shall fund the audit out of its operating expense budget pursuant to subdivision (e) of Section 17020. A copy of the audit shall be submitted to the board and to the Legislature, on or before January 1, 2023.

17033.
 (a) The Department of Insurance and the board shall develop an information sharing agreement to allow the board to collect data on losses caused by fire, earthquake, and flood in order to study mitigation efforts and insurer loss experience.
(b) The board shall continuously study the data compiled under this section and the data compiled by the Department of Forestry and Fire Protection pursuant to Section 17021, the data compiled by the California Earthquake Authority pursuant to Section 17022, the data compiled by the Department of Water Resources pursuant to Section 17023, and the data compiled by the board pursuant to subdivision (d) of Section 17012, including the longitudinal analyses of the effectiveness of mitigation measures to prevent loss.
(c) The board shall prepare and submit a report to the Legislature on or before January 1, 2024, that contains recommendations for model homeowners insurance discounts based on the risk mitigation measures that the board has determined reduce loss based on its studies conducted pursuant to this division.
(d) The board shall publish or maintain the data supporting the recommendations made pursuant to subdivision (c) in such a way as to be easily accessible to insurers for the purpose of ratemaking and mitigation discount development. All data made available shall comply with the privacy requirements of the Insurance Information and Privacy Protection Act (Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1).

17034.
 The board may contract with private firms and public universities, as necessary, to study mitigation efforts and complete the data analysis required by this division.

17035.
 All reports required to be submitted to the Legislature pursuant to this division shall be submitted in compliance with Section 9795 of the Government Code.

SECTION 1.Section 1722 of the Insurance Code is amended to read:
1722.

If a natural person while licensed pursuant to the provisions of this chapter or Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), or Chapter 8 (commencing with Section 1831) of this part, Part 5 (commencing with Section 12140) of Division 2, or Chapter 1 (commencing with Section 14000) or Chapter 2 (commencing with Section 15000) of Division 5 enters the military service of the United States and is in that service at a time prescribed for the filing of a renewal application, the filing of that application is waived, and the license held by that licensee at the time of his or her entry into military service shall remain in force during the period of that military service and until the end of the license year in which he or she is released from that service but not for less than six months after that release. During that period, that person may secure a license of the type held by him or her on his or her entry into military service upon the filing of an application and paying the fee therefor without the necessity of taking an examination or paying a penalty.

SEC. 2.Section 1751.5 of the Insurance Code is amended to read:
1751.5.

The fees required by this chapter and by Chapter 6 (commencing with Section 1760), Chapter 7 (commencing with Section 1800), and Chapter 8 (commencing with Section 1831) of this part, and by Chapter 1 (commencing with Section 14000) and Chapter 2 (commencing with Section 15000) of Division 5 are filing fees, no portion of which shall be refunded whether or not the application is acted upon or the examination is taken.