1. (1) As used in this section, unless the context otherwise requires:

   1. (a) Certified prescribed burn manager means a certified burner who is required by section 24-33.5-1217 (3)(a) to attend a prescribed burn or a person qualified by national wildfire coordinating group standards as a prescribed burn boss at the level commensurate with the complexity of the burn who is required by section 24-33.5-1217.5 (1)(c) to be present on the site of a prescribed burn.
   2. (b) Fund means the prescribed fire claims cash fund created in subsection (2) of this section.

2. (2)

   1. (a) The prescribed fire claims cash fund is created in the state treasury. The fund consists of any gifts, grants, and donations that may be received for crediting to the fund, and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. The division may seek, accept, and expend gifts, grants, or donations from private or public sources to implement this section.
   2. (b) On July 1, 2025, the state treasurer shall transfer two hundred fifty thousand dollars from the general fund to the fund.

   3. (c) Subject to annual appropriation by the general assembly, the division shall expend money from the fund in accordance with the following guidelines:

      1. (I) The division shall authorize a payment from the fund to a claimant who submits a claim that the division has certified in accordance with subsection (3) of this section;
      2. (II) The division shall authorize a payment in the amount certified in the claim; except that the maximum payment that the division may authorize for a certified claim arising from any singular prescribed burn is equal to the greater of twenty thousand dollars or ten percent of the amount of money in the fund at the time the claim is filed; and
      3. (III) The division shall make every effort to authorize a payment in the amount certified in the claim before any other claim related to the same prescribed burn is processed by another insurer.

3. (3) Subject to annual appropriation by the general assembly of money for the division to administer the fund, the division shall certify a claim related to a prescribed burn that meets all the following requirements:

   1. (a) The claim demonstrates, in sufficient detail, the costs associated with suppression and any other costs or damages that resulted from a prescribed burn;
   2. (b) The prescribed burn that resulted in the claim was conducted in full compliance with sections 24-33.5-1217 and 24-33.5-1217.5 and with all other rules and standards adopted by the director in accordance with those sections;

   3. (c)

      1. (I) Before conducting the prescribed burn, the certified prescribed burn manager registered the written prescription plan required by section 24-33.5-1217.5 (1)(a) with the division and paid an administrative fee of one hundred dollars or a greater amount as established by the division pursuant to subsection (3)(c)(II) of this section to the division; and
      2. (II) The division may increase the amount of the administrative fee set forth in subsection (3)(c)(I) of this section based on the complexity and unique characteristics of a prescribed burn. The director may adopt rules or guidelines to set the amount of the fee; and
   4. (d) No more than sixty days have passed between the date upon which the prescribed burn was completed, as determined by the certified prescribed burn manager, and the date upon which the resulting costs and damages specified in the claim were incurred; except that the director may adopt rules and guidelines related to holdover fires and other unique fire characteristics.

4. (4) In administering and implementing this section, the director:

   1. (a) Shall collaborate with cultural fire practitioners, certified prescribed burn managers, the Colorado prescribed fire council, and other relevant state agencies and fire practitioners;
   2. (b) May adopt rules and guidelines for the administration and implementation of this section; and
   3. (c) Shall post any rules or guidelines adopted pursuant to subsection (4)(b) of this section on the division's publicly accessible website.

5. (5) Upon accepting a payment authorized by the division that covers the full amount of costs and damages certified in the claim, a claimant shall waive all future claims related to the prescribed burn against the certified prescribed burn manager that conducted the burn; any organization, entity, or individual with whom the certified prescribed burn manager worked to conduct the burn; any individual or entity that provided funding for the burn; and any landowner on whose behalf the burn was conducted. Nothing in this section prevents a claimant from:

   1. (a) Submitting an insurance claim related to costs or damages that resulted from a burn that was not certified pursuant to subsection (3) of this section; or
   2. (b) Bringing a claim related to costs or damages against a party that is not listed in this subsection (5), as long as the claim does not result in recovery of costs and damages that are recovered pursuant to this section.
6. (6) The division may contract with a third party to administer, certify, and pay the claims.

Source: L. 2025: Entire section added, (SB 25-007), ch. 281, p. 1455, § 1, effective May 29.