Relating to wildfire risk reduction; and declaring an emergency.
Summary
SB 85 directs the Oregon Department of Consumer and Business Services and the Department of the State Fire Marshal, in consultation with the State Forestry Department and insurance industry representatives, to evaluate community-based wildfire risk mitigation actions and develop recommendations for reducing wildfire risk while improving homeowners insurance affordability and availability. The bill specifically points to both property-level measures, such as defensible space, home hardening, and third-party wildfire-resilience certification, and community-level efforts, including neighborhood-based risk-reduction programs.
The agencies must jointly report their findings to the Legislature by February 2, 2026. That report must include recommendations for any legislative changes, possible insurance discounts or incentives for consumers who take mitigation actions, and information from insurers about how wildfire mitigation is considered in underwriting and rate-setting. The bill also requires a summary of best practices and trends among insurers, and it makes records gathered from insurers confidential and exempt from public disclosure. The bill is temporary, with its sections repealed on January 2, 2027, and it takes effect immediately as an emergency measure.
Impact
SB 85 does not directly change insurance rating or underwriting statutes, but it creates a short-term statutory mandate for state agencies to study wildfire mitigation and insurance practices and to report back with legislative recommendations. It affects the Department of Consumer and Business Services, the State Fire Marshal, the State Forestry Department, insurers, homeowners in wildfire-prone areas, and wildfire resilience programs. The bill also reinforces confidentiality protections for insurer-submitted information collected during the study process.
Sentiment
The bill appears to have broad bipartisan support and little visible opposition. It passed the Senate committee 5-0, the Senate floor 28-0, the House committee 9-0, and the House floor 46-1. The unanimous or near-unanimous votes suggest general agreement that wildfire risk reduction and insurance affordability are urgent issues requiring coordinated state action.
Contention
The main policy issue is not whether to address wildfire risk, but how far the state should go in linking mitigation efforts to insurance underwriting and rate decisions. The bill reflects interest in encouraging insurers to recognize homeowner and community mitigation actions through discounts or favorable treatment, while also requiring insurers to disclose how they currently use those actions in pricing and underwriting. Potential points of concern include insurer confidentiality, the burden of reporting, and whether the eventual recommendations could lead to future regulatory changes affecting insurance markets. However, the available vote history shows little overt contention at the time of passage.