Bills › 89th General Assembly
Relating to demolition reserves on fire and casualty claims on real property located within a city and requesting an interim study on such reserves
Sponsored by the Senate Local Government Committee
Where it is now
- Done: IntroducedJanuary 21, 2021
- Done: SubcommitteeFebruary 8, 2021
- Done: Senate committeeMarch 4, 2021
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary Insurance companies that cover property in cities must now set aside more money to help pay for tearing down damaged buildings. If a city has to pay for demolition costs that are higher than this reserve, they can sue the property owner to get the extra money. This change affects insurance companies, cities, and people who own property in urban areas.1
Read the official explanation
This bill provides that an insurer that has issued a fire and casualty insurance policy for the payment of damages to real property located in a city must reserve an amount equal to $20,000 or percent of the payment for damages, whichever is greater, as a demolition cost reserve. Currently, the required amount is $10,000 or percent of the payment, whichever is greater. A city can claim proceeds from the reserve if the city incurs costs to demolish a building where the damage to the property renders it uninhabitable or unfit for its purpose, without repair, and proof of loss indicates that damage to the insured structure or building exceeds percent of the face value of the policy covering the building or structure. The bill provides that in addition to any other remedies provided by law, if a city is required to demolish a damaged property at city expense and the expense exceeds the amount that the city recovers from the reserve, to recover the difference the city may file a civil action against the insured for failure to complete repairs to the property or to complete demolition of the property in compliance with applicable statutes and local ordinances. If the city prevails in a civil action, the damages that the court may award the city are detailed in the bill. The bill also includes a request that the legislative council establish an interim study committee for the purpose of reviewing the demolition reserve statute to consider whether the statute adequately meets the needs of cities of various sizes and geographic locations within the state.
Senate subcommittee
Named January 17, 2022. On February 9, 2022 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
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Study bill
89th General Assembly
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None got through a chamber.
- HF 225 Relating to demolition reserves on fire and casualty claims on real property located withi…88th General Assembly · Approved by committee · same titleCleared committee
- SF 216 Relating to demolition reserves on fire and casualty claims on real property located withi…88th General Assembly · Renumbered as SF 557 · same titleCleared committee
- SF 557 Relating to demolition reserves on fire and casualty claims on real property located withi…88th General Assembly · Approved by committee · same titleCleared committee
Matched by wording or an identical title.