House IBL committee hears bill to transfer State Fire and Tornado Fund from Insurance Commissioner to OMB

Representative Emily O’Brien introduced House Bill 1027 on behalf of the Industry, Business and Labor Committee, asking members to consider transferring administration of the State Fire and Tornado Fund from the Insurance Commissioner to the Office of Management and Budget (OMB). The bill would update statutory references, require a two‑year contract for administrative services, and move authority over day‑to‑day administration from the Insurance Department to OMB.

The bill stems from an interim study authorized in earlier sessions that examined whether administration should move from the Insurance Commissioner to OMB. O’Brien told the committee the study “must include an analysis of statutory changes necessary to facilitate the Office of Management and Budget administration of these funds,” and she said the bill reflects technical and corrective changes to effect that transfer.

Deputy Insurance Commissioner John Arnold told the committee the Insurance Department supports the transfer. “We view this as a…