81R1806 SJM-D
By: Gallegos S.B. No. 665
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a windstorm preparedness
assistance program that provides financial assistance for certain
homeowners in certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Insurance Code, is amended by adding
Subtitle C to read as follows:
SUBTITLE C. DEPARTMENT PROGRAMS
CHAPTER 151. WINDSTORM PREPAREDNESS ASSISTANCE PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 151.001. DEFINITIONS. In this chapter:
(1) "Home" means:
(A) a site-built, single-family, owner-occupied
dwelling; or
(B) a single-family, owner-occupied manufactured
home that is real property under Section 2.001, Property Code.
(2) "Program" means the Windstorm Preparedness
Assistance Program.
(3) "Retrofit" means to renovate, or the renovation
of, an existing home by adding physical enhancements designed to
make the home more resistant to damage from a windstorm. The term
does not include the initial construction or manufacture of the
home.
Sec. 151.002. NOT AN ENTITLEMENT; NO STATE OBLIGATION.
This chapter does not:
(1) establish a homeowner's entitlement to financial
assistance for windstorm damage mitigation; or
(2) obligate the state to fund the inspection or
retrofitting of homes in this state.
[Sections 151.003-151.050 reserved for expansion]
SUBCHAPTER B. ADMINISTRATION OF PROGRAM
Sec. 151.051. ESTABLISHMENT OF PROGRAM. The department
shall establish the Windstorm Preparedness Assistance Program to
provide a comprehensive and coordinated approach for hurricane
damage mitigation. The program, subject to available
appropriations, must provide:
(1) a home inspection, at no cost for qualified
homeowners, and an inspection report that summarizes the results of
the inspection and identifies recommended improvements a homeowner
may take to mitigate hurricane damage; and
(2) grant money or a low-interest loan to a qualified
homeowner to implement a retrofit recommended by an inspector.
Sec. 151.052. DEPARTMENT DUTIES; RULES. (a) The
department shall provide fiscal accountability, contract
management, and strategic leadership for the program, consistent
with this chapter.
(b) The commissioner shall adopt rules as necessary to
implement this chapter.
Sec. 151.053. APPLICATION FOR PARTICIPATION IN PROGRAM.
(a) To be considered for participation in the program a homeowner
must submit an application to the department on the form prescribed
by the department. The application must include a sworn statement
that the applicant has submitted only one application for that
home.
(b) The department by rule shall establish eligibility
criteria for participation in the program that are consistent with
the requirements of this chapter. Based on the criteria and the
submitted application, the department shall determine whether a
homeowner is qualified to participate in the program.
(c) The department shall establish objective, reasonable
criteria for prioritizing applications that are consistent with the
requirements of this chapter. Unless a homeowner states otherwise
in an application, the department shall presume that a homeowner
prefers a grant over a loan.
(d) A homeowner may apply for and receive a windstorm
mitigation inspection without applying for a grant or loan under
this chapter.
(e) The department shall develop a process that ensures the
most efficient means to collect and verify applications and to
determine the eligibility of the applicants. The department may
use the Internet or other electronic means to collect and verify
application information and determine eligibility.
Sec. 151.054. WINDSTORM MITIGATION INSPECTION. (a) A
qualified inspector shall conduct a windstorm mitigation
inspection in accordance with:
(1) the inspection requirements for insurability
under Section 2210.251; or
(2) similar standards specified by commissioner rule.
(b) Not later than the 30th day after the date a windstorm
mitigation inspection is conducted, an inspector shall submit to
the department and to the homeowner a written inspection report.
The inspection report must contain:
(1) the name of the inspector;
(2) the name of the homeowner;
(3) the date of inspection;
(4) a list of recommended retrofits and necessary
mitigation measures to reduce the home's vulnerability to hurricane
damage;
(5) a range of cost estimates regarding each
recommended retrofit and mitigation measure;
(6) insurer-specific information regarding available
insurance premium discounts correlated with:
(A) specific features of the home as inspected;
and
(B) specific retrofits and mitigation measures
recommended by the inspector; and
(7) an assessment of the home's windstorm resistance
capabilities:
(A) as inspected; and
(B) if retrofitted and improved in accordance
with the inspector's recommendations.
Sec. 151.055. QUALIFIED INSPECTORS; INSPECTOR LIST. (a) A
windstorm mitigation inspection conducted under this chapter must
be conducted by a person who:
(1) is a qualified inspector under Section 2210.254;
or
(2) meets similar qualifications specified by
commissioner rule.
(b) The department shall maintain and make available to the
public a current list of inspectors in this state who are qualified
to conduct windstorm mitigation inspections under this chapter.
Sec. 151.056. ELIGIBILITY FOR INSPECTION AT NO COST. To be
eligible for a windstorm mitigation inspection at no cost under the
program, a homeowner must demonstrate that:
(1) the property to be inspected is a home;
(2) the homeowner has been granted a residence
homestead exemption under Section 11.13, Tax Code, for the property
to be inspected;
(3) the property to be inspected has an insured value
of $300,000 or less; and
(4) the property to be inspected is located in a
seacoast territory as defined by Section 2210.003.
Sec. 151.057. LOAN FOR RETROFITTING. (a) The department
shall implement a low-interest loan program to pay for recommended
retrofits and necessary mitigation measures identified in a
windstorm mitigation inspection report. The department must use
not less than 30 percent of the money appropriated for the program
to subsidize low-interest loans from a private financial
institution chartered by this state or the federal government for
retrofitting a qualified homeowner's home.
(b) A homeowner may use loan money awarded under this
chapter only to implement on the homeowner's home a retrofit or
necessary mitigation measure recommended by a qualified inspector
in a windstorm mitigation inspection report provided to the
homeowner under this chapter.
(c) To be eligible for a loan under this chapter, a
homeowner must demonstrate that the home has undergone a windstorm
mitigation inspection under this chapter.
Sec. 151.058. GRANT FOR RETROFITTING. (a) The department
shall implement a grant program to pay for recommended retrofits
and necessary mitigation measures identified in a windstorm
mitigation inspection report. The department must use not less
than 30 percent of the money appropriated for the program to award
grants to qualified homeowners.
(b) A homeowner receiving a grant must contribute an amount
equal to the amount of the grant money awarded by the department on
a dollar-for-dollar basis. The total amount of the grant and
homeowner contribution may not exceed $10,000, and the amount of
the department's grant may not exceed $5,000.
(c) A homeowner may use grant money awarded under this
chapter only to implement on the homeowner's home a retrofit or
mitigation measure recommended by a qualified inspector in a
windstorm mitigation inspection report provided to the homeowner
under this chapter.
(d) To be eligible for a grant under this chapter, a
homeowner must demonstrate that the home has undergone a windstorm
mitigation inspection under this chapter.
(e) It is the intent of the legislature that grant money
awarded under this chapter constitutes a disaster relief payment
for purposes of Section 139, Internal Revenue Code of 1986.
Sec. 151.059. CONTRACTORS; CONTRACTOR LIST. (a) The
department shall publicize the program to contractors and provide
incentives for contractors to participate in the program.
(b) To participate in the program, a contractor:
(1) must secure all required local building permits;
(2) must not have been subject to disciplinary action
by a state regulatory agency for the five years preceding the date
on which the contractor enters the program as a participating
contractor; and
(3) must meet any other qualifications required by
commissioner rule.
(c) The department shall maintain and make available to the
public a current list of participating contractors from which a
homeowner who is awarded a grant or loan through the program may
select a contractor for the purpose of retrofitting.
(d) To ensure the quality of participating contractors'
work, the department shall conduct random inspections of the
finished retrofit work of at least five percent of all retrofit
projects completed under the program.
(e) A person may participate in the program as a qualified
inspector and as a participating contractor if the person meets the
qualifications for inspectors and contractors under this chapter.
Sec. 151.060. PUBLIC EDUCATION CAMPAIGN. The department
may undertake a statewide multimedia public outreach and
advertising campaign to inform consumers of:
(1) the availability of windstorm mitigation
inspections and financial assistance to qualified homeowners; and
(2) the safety and financial benefits of retrofitting
a home to mitigate windstorm damage.
Sec. 151.061. AUTHORITY TO CONTRACT. The department may
contract with third parties for loan management and services, grant
management, inspection services, contractor services, information
technology, educational outreach, and auditing services as
necessary to administer this chapter.
Sec. 151.062. GIFTS, GRANTS, AND DONATIONS. In addition to
money appropriated to the department, the department may receive
and accept a gift, grant, donation, or other thing of value from any
source for the purposes of this chapter.
Sec. 151.063. REPORTING. The department annually shall
submit to the legislature a written report regarding the program.
The report must include:
(1) an account of the use of state money;
(2) the number of windstorm mitigation inspections
requested;
(3) the number of windstorm mitigation inspections
conducted;
(4) the number of applications received requesting a
grant or a loan;
(5) the number and value of grants approved; and
(6) the number and value of loans approved.
SECTION 2. Not later than January 1, 2010, the commissioner
of insurance shall adopt rules necessary to administer Chapter 151,
Insurance Code, as added by this Act.
SECTION 3. Not later than September 1, 2010, the Texas
Department of Insurance shall submit the initial report required
under Section 151.063, Insurance Code, as added by this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.