85R6149 SCL-D
By: Lozano H.B. No. 1587
A BILL TO BE ENTITLED
AN ACT
relating to the appeal of decisions by the Texas Department of
Insurance regarding issuance of certain certificates of compliance
under the Texas Windstorm Insurance Association Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.003, Insurance Code, is amended by
amending Subdivision (1-a) and adding Subdivision (1-b) to read as
follows:
(1-a) "Appeals panel" means the appeals panel
established under Section 2210.262.
(1-b) "Association" means the Texas Windstorm
Insurance Association.
SECTION 2. Subchapter F, Chapter 2210, Insurance Code, is
amended by adding Sections 2210.261 through 2210.268 to read as
follows:
Sec. 2210.261. REQUEST FOR APPEAL; RESPONSE. (a) A person
whose request for a certificate of compliance is rejected may
appeal the decision rejecting the request by filing a written
request for appeal with the appeals panel established under Section
2210.262, and contemporaneously providing a copy of the request for
appeal to the department. The request for appeal must be made not
later than the 90th day after the date the department issued a
decision rejecting the request for certification.
(b) The department shall file a written response with the
appeals panel not later than the 15th day after the date on which
the request for appeal is filed and shall on the same date serve a
copy of the response on the appellant.
Sec. 2210.262. APPEALS PANEL: COMPOSITION. (a) The
appeals panel is composed of seven members appointed by the
governor.
(b) Three members must:
(1) be engineers licensed by, and in good standing
with, the Texas Board of Professional Engineers; and
(2) have knowledge of and professional expertise in
wind-related design and construction practices in coastal areas
subject to high winds and hurricanes.
(c) Two members must be public members who, at the time of
each appointment, reside in different first tier coastal counties.
(d) One member must be a licensed general property and
casualty agent who is not a captive agent.
(e) One member must represent the construction industry and
have knowledge of and professional expertise in wind-related design
and construction practices in coastal areas subject to high winds
and hurricanes.
(f) All members of the appeals panel must reside or have
employment in a first tier coastal county.
(g) Each appointment to the appeals panel must be made
without regard to the race, color, disability, sex, religion, age,
or national origin of the appointee.
Sec. 2210.263. APPEALS PANEL: TERMS; VACANCY. (a) Members
of the appeals panel serve two-year staggered terms, with terms of
either three or four members expiring on January 1 of each year.
(b) The governor shall fill a vacancy on the appeals panel
in accordance with Section 2210.262.
Sec. 2210.264. APPEALS PANEL: POWERS AND DUTIES. (a)
Within a reasonable time after receipt of a request for appeal, the
appeals panel shall conduct a hearing on the request and determine
whether the requested certificate of compliance should be issued.
(b) In making its determination, the appeals panel shall
consider the written request for appeal and the department's
response.
(c) The appeals panel may require the head engineer of the
unit responsible for certification of windstorm inspections at the
department to advise the appeals panel on issues relating to the
inspection process.
Sec. 2210.265. APPEALS PANEL: CONFLICT OF INTEREST. The
appeals panel shall determine if a member of the appeals panel has a
conflict of interest regarding a request for appeal. The member
with the conflict of interest shall recuse himself or herself from
all proceedings relating to that request.
Sec. 2210.266. APPEALS PANEL: HEARING PROCEDURES. (a)
Each party to a hearing conducted by the appeals panel may be
represented by an attorney licensed to practice law in this state.
(b) The standard of review for an appeal filed under Section
2210.261 is de novo.
(c) All appeals panel proceedings shall be conducted in
Travis County.
Sec. 2210.267. APPEALS PANEL: DECISION. (a) Within a
reasonable time after the conclusion of the hearing, the appeals
panel shall issue a written decision reflecting the appeals panel's
determination under Section 2210.264.
(b) If the appeals panel is unable to reach a decision, the
appeals panel shall affirm the decision of the department.
(c) The appeals panel shall mail a copy of the appeals
panel's decision to each party not later than the seventh day after
the date the appeals panel renders its decision.
(d) Subject to Subsection (e), if the appeals panel
determines that a certificate of compliance should be issued, the
department shall promptly issue the certificate.
(e) A decision made by the appeals panel under this
subchapter is subject to judicial review under Chapter 2001,
Government Code.
Sec. 2210.268. APPEALS PANEL: ADMINISTRATION. The appeals
panel is administratively attached to the department. The
department shall provide the staff, services, and facilities
necessary for the appeals panel to operate, including:
(1) administrative assistance and services, including
budget planning and purchasing;
(2) personnel services;
(3) office space; and
(4) computer equipment and support.
SECTION 3. The changes in law made by this Act apply only to
a decision by the Texas Department of Insurance to reject a request
for a certificate of compliance issued on or after the effective
date of this Act. A decision issued before the effective date of
this Act is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 4. This Act takes effect September 1, 2017.