2026 -- H 7865 SUBSTITUTE A

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LC005410/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO INSURANCE -- WEATHER-RELATED LOSSES

     Introduced By: Representatives Kennedy, Solomon, Edwards, O'Brien, Serpa, Spears,
Cotter, Azzinaro, Diaz, and Shallcross Smith

     Date Introduced: February 27, 2026

     Referred To: House Corporations

     (Dept. of Business Regulation)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 27-76 of the General Laws entitled "Weather-Related Losses" is

hereby amended by adding thereto the following section:

     27-76-10. Strengthen Rhody homes.

     (a) There is hereby established within the department of business regulation, division of

insurance, the “strengthen Rhody homes” program.

     (b) This section does not create an entitlement for property owners or obligate the state in

any way to fund the inspection, construction, or retrofitting of residential property in this state.

Implementation of the program is subject to the receipt of federal grants or funds from other sources

of grants or funds. The insurance superintendent shall use its best efforts to obtain grants or funds

from the federal government or other funding sources to supplement the financial

resources of the strengthen Rhody homes program that may be provided by the state.

     (c) The strengthen Rhody homes program may apply for and receive financial grants or

gifts to construct or retrofit insurable property to resist loss due to a hurricane or other catastrophic

events.

     (d) The strengthen Rhody homes program may also make grants or funding available to

nonprofit entities for projects to construct or retrofit insurable properties to resist loss due to

hurricane or other catastrophic windstorm if such grants or funding to nonprofit entities are

allowable under grant or funding rules, requirements, guidelines, or criteria. However, a nonprofit

entity shall agree to administer the grants or funds as the strengthen Rhody homes program would

be required to administer grants or funds, and the entity shall provide documentation to the

insurance superintendent in a timely manner as requested by the insurance superintendent.

     (e) All mitigation shall be based upon the securing of all required local permits and

applicable inspections in keeping with local building codes and the Insurance Institute for Business

and Home Safety (IBHS) Fortified Homes Program. Mitigation projects are subject to random

reinspection of all projects.

     (f) The insurance division may promulgate rules and eligibility requirements necessary for

the proper administration of this section and pursuant to any instructions or requirements on grants

or funds received by the insurance superintendent for the strengthen Rhody homes program.

     (g) Strengthen Rhody homes program.

     (1) The strengthen Rhody homes program is hereby created to make grants available to

residential Rhode Island homeowners to undertake resilience construction or retrofits to make the

residential home more resilient to a hurricane or other catastrophic risk.

     (2) To be eligible for a grant, residential property owners applying for a grant must be able

to meet the eligibility requirements as set forth by the insurance division for each grant type. These

requirements shall include, but not be limited to, the following:

     (i) The residential property owner shall claim their primary residence in a county where

grants are being approved at the property to be improved;

     (ii) The home to be mitigated shall be an owner-occupied, single family, primary residence,

and cannot be a condominium or mobile home;

     (iii) The home shall be in good repair unless damaged by a hurricane or other catastrophic

windstorm event. Strengthen Rhody homes program grant funds cannot be used for maintenance

or repairs, but may be used in conjunction with repairs or reconstruction necessitated by damages

from a catastrophic event;

     (iv) A certified IBHS evaluator shall prequalify the insurable property as mitigable and

identify all improvements required to achieve IBHS FORTIFIED Roof™ (Roof), FORTIFIED

Silver™ (Silver), FORTIFIED Gold™ (Gold), or successor designation, or similar standard

approved by the insurance division. The residential property owner shall select the evaluator from

a list provided by the strengthen Rhody homes program and shall pay the evaluator's fee;

     (v) The residential property owner shall obtain bids from at least three (3) IBHS certified

contractors approved by the strengthen Rhody homes program;

     (vi) The residential property owner shall construct or retrofit the home to the IBHS Roof,

Silver, Gold, or successor designation or similar standard approved by the insurance

superintendent;

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     (vii) The residential property owner shall provide proof of an in-force policy providing

wind insurance on the home;

     (viii) If the insurable property is in a special flood hazard area, the residential property

owner shall provide proof of an in-force flood insurance policy. The flood policy may be from the

National Flood Insurance Program (NFIP) or a private carrier; and

     (ix) Grant applications shall be filed in the manner directed by the insurance division in the

form and manner prescribed by the insurance superintendent, along with any applicable transaction

fees.

     (3) Documents, materials, and other information submitted to the insurance superintendent

by property owners or insurance companies in support of a grant application shall be confidential

by law and privileged, shall not be subject to open records requests, shall not be subject to subpoena,

and shall not be subject to discovery or admissible in evidence in any private civil action.

     (4) Grants to residential property owners shall be used to construct or retrofit an insurable

property to resist loss due to a hurricane or other catastrophic event.

     (5) Retrofit projects within three (3) months of the date the residential property owner

receives notice of the grant approval. New builds shall be completed within the timeframe approved

by the insurance superintendent. Failure to complete the project timely may result in forfeiture of

the grant.

     (6) Grant funds shall only be paid once a certificate has been issued for the IBHS standard

or similar approved by the insurance superintendent. Grant funds shall be paid by the insurance

superintendent or another designated agency, on behalf of the residential property owner, directly

to the contractor who performed the mitigation work.

     (7) Applications will be accepted on a first-come, first-served basis within each income tier

established by the superintendent, with priority given to lower-income applicants, applicants who

live in locations that, based on historical data, have a higher susceptibility to catastrophic weather

events, and applicants meeting any other criteria the insurance superintendent determines is

appropriate to meet the purpose of the program.

     (8) Any entity providing funds to the strengthen Rhody homes program shall be permitted

to establish additional rules and guidelines under which those funds may be used, as long as such

rules and guidelines do not violate any state or federal law.

     (9) The insurance division may conduct random inspections of funds, records, and/or

properties to detect any fraud. These inspections may be conducted similarly to those in chapters

13.1 and 71 of title 27.

     (10) Under the strengthen Rhody homes program, a residential property owner shall hire

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an IBHS certified contractor who is capable of performing work that satisfies the standards

prescribed by this section and the rules adopted thereto:

     (i) The insurance superintendent shall not endorse or otherwise provide preferential

treatment to any contractor;

     (ii) A residential property owner is legally responsible for any amount owed to a contractor

that exceeds awarded grant monies;

     (iii) To be eligible to work on a project funded by the strengthen Rhody homes program as

a contractor, a contractor shall meet all program requirements including, but not limited to, those

listed in this section, and maintain a current copy of all applicable certificates, licenses, and proof

of insurance coverages with the program office;

     (iv) The contractor shall hold a valid and active contractor's registration or license as

applicable pursuant to the provisions of chapter 65 and 65.4 of title 5 in Rhode Island and be free

from disqualifying disciplinary actions taken by the contractor registration licensing board as

determined by the insurance superintendent

     (v) The contractor shall hold an active IBHS FORTIFIED Roof™ contractor certification

or FORTIFIED professional certification. The contractor is responsible for paying all fees

associated with certification and training;

     (vi) The contractor shall maintain accurate contact information with the strengthen Rhody

homes program;

     (vii) The contractor shall agree to follow the strengthen Rhody homes program's

procedures and rules as prescribed by the insurance superintendent;

     (viii) The contractor shall not have a financial interest in any project funded by the

strengthen Rhody homes program for which they perform work other than receiving payment on

behalf of the homeowner from the strengthen Rhody homes program and shall report to the

strengthen Rhody homes program any potential conflicts of interest before work commences; and

     (ix) The contractor shall not be the evaluator for any project funded by the strengthen

Rhody homes program.

     (11) Evaluators:

     (i) To be eligible to work on a project funded by the strengthen Rhody homes program as

an evaluator, the evaluator shall meet all program requirements including, but not limited to, those

listed below and maintain a current copy of all applicable certificates and licenses with the

strengthen Rhody homes program office;

     (ii) The evaluator must be in good standing with IBHS and maintain an active IBHS

certification as a FORTIFIED roof evaluator. The evaluator is responsible for paying all fees

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associated with certification and training;

     (iii) The evaluator shall agree to follow the strengthen Rhody homes program's procedures

and rules as prescribed by the insurance superintendent;

     (iv) The evaluator shall maintain accurate contact information with the strengthen Rhody

homes program;

     (v) The evaluator shall not have any financial interest in any project which they inspect for

designation purposes for the strengthen Rhody homes program;

     (vi) The evaluator shall not be a contractor or supplier of any materials and/or products or

systems installed in any home they inspect for designation purposes for the strengthen Rhody

homes program;

     (vii) The evaluator shall not be the sales agent for any home being designated for the

strengthen Rhody homes program; and

     (viii) The evaluator shall inform the strengthen Rhody homes program of any potential

conflicts of interest.

     (12) Funding:

     (i) There is hereby created a revolving fund in the department of business regulation, to be

designated the "strengthen Rhody homes revolving fund". The fund shall be a continuing fund, not

subject to fiscal year limitations, and shall consist of any monies deposited to the fund from the

receipt of federal grants or funds or from other sources of grants or funds. All monies accruing to

the credit of the fund are hereby appropriated and may be budgeted and expended by the insurance

superintendent for the purpose of assisting the strengthen Rhody homes program in performing all

acts that relate to the function and purpose of the strengthen Rhody homes program.

     (ii) Monies collected pursuant to this act shall be deposited in the strengthen Rhody homes

revolving fund. Monies shall not lapse, unless otherwise specified under federal funding or federal

grant, or a grant or funds from another source, or be transferred to any other state funds and shall

not be utilized for any other purpose

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO INSURANCE -- WEATHER-RELATED LOSSES

***

     This act would provide a framework through which the department of business regulation

can seek grants to fund a home hardening program.

     This act would take effect upon passage.

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