| 1 | 1 | | By: Hunter H.B. No. 3648 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the operation and funding of the Texas Windstorm |
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| 7 | 7 | | Insurance Association; transfer of state revenue to the Catastrophe |
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| 8 | 8 | | Reserve Trust Fund for excess losses caused by natural disasters. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. APPROPRIATIONS FOR EXCESS LOSSES CAUSED BY |
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| 11 | 11 | | NATURAL DISASTERS TO BE TRANSFERRED TO THE CATASTROPHE RESERVE |
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| 12 | 12 | | TRUST FUND. Pursuant to Section 2210.058, Insurance Code, in the |
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| 13 | 13 | | event of an occurrence or series of occurrences of natural |
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| 14 | 14 | | disasters in a catastrophe area that occur after the effective date |
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| 15 | 15 | | of this Act during the state fiscal biennium that began September 1, |
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| 16 | 16 | | 2007 and the state fiscal biennium that ends August 31, 2011 that |
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| 17 | 17 | | results in insured losses and operating expenses of the Texas |
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| 18 | 18 | | Windstorm Insurance Association in excess of premium and other |
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| 19 | 19 | | revenue of the association, the excess losses shall be paid from |
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| 20 | 20 | | amounts appropriated out of the economic stabilization fund. |
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| 21 | 21 | | SECTION 2. AMOUNTS TO BE PAID INTO THE CATASTROPHE RESERVE |
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| 22 | 22 | | TRUST FUND; ADDITIONAL LEGISLATIVE BUDGET BOARD APPROVAL. In the |
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| 23 | 23 | | event that the conditions of Section 1 of this Act are established, |
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| 24 | 24 | | there shall be an additional approval by the Legislative Budget |
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| 25 | 25 | | Board, to transfer some or all of the appropriated funds from the |
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| 26 | 26 | | economic stabilization fund into the Catastrophe Reserve Trust |
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| 27 | 27 | | Fund, created in Subchapter J, Chapter 2210, Insurance Code. |
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| 28 | 28 | | SECTION 3. REQUIRED VOTE FOR ECONOMIC STABILIZATION FUND |
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| 29 | 29 | | APPROPRIATIONS. This Act takes effect only if this Act receives a |
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| 30 | 30 | | two-thirds vote of the members present in each house as required by |
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| 31 | 31 | | Section 49-g, Article III, Texas Constitution. |
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| 32 | 32 | | SECTION 4. This Act takes effect immediately if it receives |
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| 33 | 33 | | a vote of two-thirds of all the members elected to each house, as |
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| 34 | 34 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 35 | 35 | | Act does not receive the vote necessary for immediate effect, this |
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| 36 | 36 | | Act takes effect on the 91st day after the last day of the |
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| 37 | 37 | | legislative session. |
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