Texas 2009 - 81st Regular

Texas Senate Bill SB665 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R1806 SJM-D
2	2	By: Gallegos S.B. No. 665
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of a windstorm preparedness
8	8	assistance program that provides financial assistance for certain
9	9	homeowners in certain counties.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Title 2, Insurance Code, is amended by adding
12	12	Subtitle C to read as follows:
13	13	SUBTITLE C. DEPARTMENT PROGRAMS
14	14	CHAPTER 151. WINDSTORM PREPAREDNESS ASSISTANCE PROGRAM
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 151.001. DEFINITIONS. In this chapter:
17	17	(1) "Home" means:
18	18	(A) a site-built, single-family, owner-occupied
19	19	dwelling; or
20	20	(B) a single-family, owner-occupied manufactured
21	21	home that is real property under Section 2.001, Property Code.
22	22	(2) "Program" means the Windstorm Preparedness
23	23	Assistance Program.
24	24	(3) "Retrofit" means to renovate, or the renovation
25	25	of, an existing home by adding physical enhancements designed to
26	26	make the home more resistant to damage from a windstorm. The term
27	27	does not include the initial construction or manufacture of the
28	28	home.
29	29	Sec. 151.002. NOT AN ENTITLEMENT; NO STATE OBLIGATION.
30	30	This chapter does not:
31	31	(1) establish a homeowner's entitlement to financial
32	32	assistance for windstorm damage mitigation; or
33	33	(2) obligate the state to fund the inspection or
34	34	retrofitting of homes in this state.
35	35	[Sections 151.003-151.050 reserved for expansion]
36	36	SUBCHAPTER B. ADMINISTRATION OF PROGRAM
37	37	Sec. 151.051. ESTABLISHMENT OF PROGRAM. The department
38	38	shall establish the Windstorm Preparedness Assistance Program to
39	39	provide a comprehensive and coordinated approach for hurricane
40	40	damage mitigation. The program, subject to available
41	41	appropriations, must provide:
42	42	(1) a home inspection, at no cost for qualified
43	43	homeowners, and an inspection report that summarizes the results of
44	44	the inspection and identifies recommended improvements a homeowner
45	45	may take to mitigate hurricane damage; and
46	46	(2) grant money or a low-interest loan to a qualified
47	47	homeowner to implement a retrofit recommended by an inspector.
48	48	Sec. 151.052. DEPARTMENT DUTIES; RULES. (a) The
49	49	department shall provide fiscal accountability, contract
50	50	management, and strategic leadership for the program, consistent
51	51	with this chapter.
52	52	(b) The commissioner shall adopt rules as necessary to
53	53	implement this chapter.
54	54	Sec. 151.053. APPLICATION FOR PARTICIPATION IN PROGRAM.
55	55	(a) To be considered for participation in the program a homeowner
56	56	must submit an application to the department on the form prescribed
57	57	by the department. The application must include a sworn statement
58	58	that the applicant has submitted only one application for that
59	59	home.
60	60	(b) The department by rule shall establish eligibility
61	61	criteria for participation in the program that are consistent with
62	62	the requirements of this chapter. Based on the criteria and the
63	63	submitted application, the department shall determine whether a
64	64	homeowner is qualified to participate in the program.
65	65	(c) The department shall establish objective, reasonable
66	66	criteria for prioritizing applications that are consistent with the
67	67	requirements of this chapter. Unless a homeowner states otherwise
68	68	in an application, the department shall presume that a homeowner
69	69	prefers a grant over a loan.
70	70	(d) A homeowner may apply for and receive a windstorm
71	71	mitigation inspection without applying for a grant or loan under
72	72	this chapter.
73	73	(e) The department shall develop a process that ensures the
74	74	most efficient means to collect and verify applications and to
75	75	determine the eligibility of the applicants. The department may
76	76	use the Internet or other electronic means to collect and verify
77	77	application information and determine eligibility.
78	78	Sec. 151.054. WINDSTORM MITIGATION INSPECTION. (a) A
79	79	qualified inspector shall conduct a windstorm mitigation
80	80	inspection in accordance with:
81	81	(1) the inspection requirements for insurability
82	82	under Section 2210.251; or
83	83	(2) similar standards specified by commissioner rule.
84	84	(b) Not later than the 30th day after the date a windstorm
85	85	mitigation inspection is conducted, an inspector shall submit to
86	86	the department and to the homeowner a written inspection report.
87	87	The inspection report must contain:
88	88	(1) the name of the inspector;
89	89	(2) the name of the homeowner;
90	90	(3) the date of inspection;
91	91	(4) a list of recommended retrofits and necessary
92	92	mitigation measures to reduce the home's vulnerability to hurricane
93	93	damage;
94	94	(5) a range of cost estimates regarding each
95	95	recommended retrofit and mitigation measure;
96	96	(6) insurer-specific information regarding available
97	97	insurance premium discounts correlated with:
98	98	(A) specific features of the home as inspected;
99	99	and
100	100	(B) specific retrofits and mitigation measures
101	101	recommended by the inspector; and
102	102	(7) an assessment of the home's windstorm resistance
103	103	capabilities:
104	104	(A) as inspected; and
105	105	(B) if retrofitted and improved in accordance
106	106	with the inspector's recommendations.
107	107	Sec. 151.055. QUALIFIED INSPECTORS; INSPECTOR LIST. (a) A
108	108	windstorm mitigation inspection conducted under this chapter must
109	109	be conducted by a person who:
110	110	(1) is a qualified inspector under Section 2210.254;
111	111	or
112	112	(2) meets similar qualifications specified by
113	113	commissioner rule.
114	114	(b) The department shall maintain and make available to the
115	115	public a current list of inspectors in this state who are qualified
116	116	to conduct windstorm mitigation inspections under this chapter.
117	117	Sec. 151.056. ELIGIBILITY FOR INSPECTION AT NO COST. To be
118	118	eligible for a windstorm mitigation inspection at no cost under the
119	119	program, a homeowner must demonstrate that:
120	120	(1) the property to be inspected is a home;
121	121	(2) the homeowner has been granted a residence
122	122	homestead exemption under Section 11.13, Tax Code, for the property
123	123	to be inspected;
124	124	(3) the property to be inspected has an insured value
125	125	of $300,000 or less; and
126	126	(4) the property to be inspected is located in a
127	127	seacoast territory as defined by Section 2210.003.
128	128	Sec. 151.057. LOAN FOR RETROFITTING. (a) The department
129	129	shall implement a low-interest loan program to pay for recommended
130	130	retrofits and necessary mitigation measures identified in a
131	131	windstorm mitigation inspection report. The department must use
132	132	not less than 30 percent of the money appropriated for the program
133	133	to subsidize low-interest loans from a private financial
134	134	institution chartered by this state or the federal government for
135	135	retrofitting a qualified homeowner's home.
136	136	(b) A homeowner may use loan money awarded under this
137	137	chapter only to implement on the homeowner's home a retrofit or
138	138	necessary mitigation measure recommended by a qualified inspector
139	139	in a windstorm mitigation inspection report provided to the
140	140	homeowner under this chapter.
141	141	(c) To be eligible for a loan under this chapter, a
142	142	homeowner must demonstrate that the home has undergone a windstorm
143	143	mitigation inspection under this chapter.
144	144	Sec. 151.058. GRANT FOR RETROFITTING. (a) The department
145	145	shall implement a grant program to pay for recommended retrofits
146	146	and necessary mitigation measures identified in a windstorm
147	147	mitigation inspection report. The department must use not less
148	148	than 30 percent of the money appropriated for the program to award
149	149	grants to qualified homeowners.
150	150	(b) A homeowner receiving a grant must contribute an amount
151	151	equal to the amount of the grant money awarded by the department on
152	152	a dollar-for-dollar basis. The total amount of the grant and
153	153	homeowner contribution may not exceed $10,000, and the amount of
154	154	the department's grant may not exceed $5,000.
155	155	(c) A homeowner may use grant money awarded under this
156	156	chapter only to implement on the homeowner's home a retrofit or
157	157	mitigation measure recommended by a qualified inspector in a
158	158	windstorm mitigation inspection report provided to the homeowner
159	159	under this chapter.
160	160	(d) To be eligible for a grant under this chapter, a
161	161	homeowner must demonstrate that the home has undergone a windstorm
162	162	mitigation inspection under this chapter.
163	163	(e) It is the intent of the legislature that grant money
164	164	awarded under this chapter constitutes a disaster relief payment
165	165	for purposes of Section 139, Internal Revenue Code of 1986.
166	166	Sec. 151.059. CONTRACTORS; CONTRACTOR LIST. (a) The
167	167	department shall publicize the program to contractors and provide
168	168	incentives for contractors to participate in the program.
169	169	(b) To participate in the program, a contractor:
170	170	(1) must secure all required local building permits;
171	171	(2) must not have been subject to disciplinary action
172	172	by a state regulatory agency for the five years preceding the date
173	173	on which the contractor enters the program as a participating
174	174	contractor; and
175	175	(3) must meet any other qualifications required by
176	176	commissioner rule.
177	177	(c) The department shall maintain and make available to the
178	178	public a current list of participating contractors from which a
179	179	homeowner who is awarded a grant or loan through the program may
180	180	select a contractor for the purpose of retrofitting.
181	181	(d) To ensure the quality of participating contractors'
182	182	work, the department shall conduct random inspections of the
183	183	finished retrofit work of at least five percent of all retrofit
184	184	projects completed under the program.
185	185	(e) A person may participate in the program as a qualified
186	186	inspector and as a participating contractor if the person meets the
187	187	qualifications for inspectors and contractors under this chapter.
188	188	Sec. 151.060. PUBLIC EDUCATION CAMPAIGN. The department
189	189	may undertake a statewide multimedia public outreach and
190	190	advertising campaign to inform consumers of:
191	191	(1) the availability of windstorm mitigation
192	192	inspections and financial assistance to qualified homeowners; and
193	193	(2) the safety and financial benefits of retrofitting
194	194	a home to mitigate windstorm damage.
195	195	Sec. 151.061. AUTHORITY TO CONTRACT. The department may
196	196	contract with third parties for loan management and services, grant
197	197	management, inspection services, contractor services, information
198	198	technology, educational outreach, and auditing services as
199	199	necessary to administer this chapter.
200	200	Sec. 151.062. GIFTS, GRANTS, AND DONATIONS. In addition to
201	201	money appropriated to the department, the department may receive
202	202	and accept a gift, grant, donation, or other thing of value from any
203	203	source for the purposes of this chapter.
204	204	Sec. 151.063. REPORTING. The department annually shall
205	205	submit to the legislature a written report regarding the program.
206	206	The report must include:
207	207	(1) an account of the use of state money;
208	208	(2) the number of windstorm mitigation inspections
209	209	requested;
210	210	(3) the number of windstorm mitigation inspections
211	211	conducted;
212	212	(4) the number of applications received requesting a
213	213	grant or a loan;
214	214	(5) the number and value of grants approved; and
215	215	(6) the number and value of loans approved.
216	216	SECTION 2. Not later than January 1, 2010, the commissioner
217	217	of insurance shall adopt rules necessary to administer Chapter 151,
218	218	Insurance Code, as added by this Act.
219	219	SECTION 3. Not later than September 1, 2010, the Texas
220	220	Department of Insurance shall submit the initial report required
221	221	under Section 151.063, Insurance Code, as added by this Act.
222	222	SECTION 4. This Act takes effect immediately if it receives
223	223	a vote of two-thirds of all the members elected to each house, as
224	224	provided by Section 39, Article III, Texas Constitution. If this
225	225	Act does not receive the vote necessary for immediate effect, this
226	226	Act takes effect September 1, 2009.