84R13043 SCL-F By: Smith H.B. No. 2439 A BILL TO BE ENTITLED AN ACT relating to inspections and other activities conducted by engineers in connection with the issuance of certain windstorm and hail insurance. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2210.254(a), Insurance Code, is amended to read as follows: (a) For purposes of this chapter, a "qualified inspector" includes: (1) a person determined by the department to be qualified because of training or experience to perform building inspections; (2) a licensed professional engineer [who is on the roster described by Section 1001.652, Occupations Code, and meets the requirements specified by commissioner rule for appointment to conduct windstorm inspections]; and (3) an inspector who: (A) is certified by the International Code Council, the Building Officials and Code Administrators International, Inc., the International Conference of Building Officials, or the Southern Building Code Congress International, Inc.; (B) has certifications as a buildings inspector and coastal construction inspector; and (C) complies with other requirements specified by commissioner rule. SECTION 2. Section 2210.2551, Insurance Code, is amended by amending Subsection (b) and adding Subsection (f) to read as follows: (b) The commissioner by rule shall establish criteria to ensure that a person seeking appointment as a qualified inspector under this subchapter[, including an engineer seeking appointment under Section 2210.255,] possesses the knowledge, understanding, and professional competence to perform windstorm inspections under this chapter and to comply with other requirements of this chapter. (f) The commissioner may not adopt or enforce a rule that requires an inspection to be performed by an engineer licensed by the Texas Board of Professional Engineers or requires an engineer to affix the engineer's seal to a document related to an inspection conducted under this subchapter. SECTION 3. Section 2210.256(a-1), Insurance Code, is amended to read as follows: (a-1) In addition to any other action authorized under this section, the commissioner ex parte may enter an emergency cease and desist order under Chapter 83 against a qualified inspector, or a person acting as a qualified inspector, if: (1) the commissioner believes that: (A) the qualified inspector has[: [(i) through submitting or failing to submit to the department sealed plans, designs, calculations, or other substantiating information, failed to demonstrate that a structure or a portion of a structure subject to inspection meets the requirements of this chapter and department rules; or [(ii)] refused to comply with requirements imposed under this chapter or department rules; or (B) the person acting as a qualified inspector is acting without appointment as a qualified inspector under Section 2210.254 [or 2210.255]; and (2) the commissioner determines that the conduct described by Subdivision (1) is fraudulent or hazardous or creates an immediate danger to the public. SECTION 4. Section 2210.258(a), Insurance Code, is amended to read as follows: (a) Except as provided by Subsection (c) and Section 2210.2581 and notwithstanding any other provision of this chapter, to be eligible for insurance through the association, all construction, alteration, remodeling, enlargement, and repair of, or addition to, any structure located in the catastrophe area that is begun on or after the effective date of Sections 5 through 49, H.B. No. 4409, Acts of the 81st Legislature, Regular Session, 2009, must be performed in compliance with the applicable building code standards, as set forth in the plan of operation, unless the construction, alteration, remodeling, enlargement, and repair of, or addition to, the structure is an enhancement to the current applicable building code standards and has been designed and sealed by a professional engineer licensed by the Texas Board of Professional Engineers. SECTION 5. Section 83.002(c), Insurance Code, is amended to read as follows: (c) This chapter also applies to: (1) a person appointed as a qualified inspector under Section 2210.254 [or 2210.255]; and (2) a person acting as a qualified inspector under Section 2210.254 [or 2210.255] without being appointed as a qualified inspector under either of those sections. SECTION 6. The following laws are repealed: (1) Section 2210.255, Insurance Code; (2) Sections 2210.2551(d) and (e), Insurance Code; (3) Section 2210.256(f), Insurance Code; and (4) Subchapter N, Chapter 1001, Occupations Code. SECTION 7. The commissioner of insurance shall adopt rules to implement this Act not later than December 31, 2015. SECTION 8. This Act takes effect September 1, 2015.