| 1 | 1 | | 86R14229 PMO-D |
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| 2 | 2 | | By: King of Hemphill H.B. No. 3073 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a joint interim study regarding the spreading of risk |
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| 8 | 8 | | and costs related to certain natural disasters across the state by |
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| 9 | 9 | | property and casualty insurance companies. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. JOINT INTERIM COMMITTEE. (a) A joint interim |
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| 12 | 12 | | committee is created to study the spreading of risk and costs |
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| 13 | 13 | | related to certain natural disasters across the state by property |
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| 14 | 14 | | and casualty insurance companies. |
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| 15 | 15 | | (b) The committee shall be composed of: |
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| 16 | 16 | | (1) two senators appointed by the lieutenant governor; |
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| 17 | 17 | | (2) two representatives appointed by the speaker of |
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| 18 | 18 | | the house of representatives; and |
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| 19 | 19 | | (3) one member appointed by the governor who shall |
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| 20 | 20 | | serve as the committee's presiding officer. |
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| 21 | 21 | | (c) The committee shall convene at the call of the presiding |
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| 22 | 22 | | officer. |
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| 23 | 23 | | (d) The committee has all other powers and duties provided |
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| 24 | 24 | | to a special or select committee by the rules of the senate and |
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| 25 | 25 | | house of representatives, by Subchapter B, Chapter 301, Government |
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| 26 | 26 | | Code, and by policies of the senate and house committees on |
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| 27 | 27 | | administration. |
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| 28 | 28 | | (e) The members of the committee are entitled to |
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| 29 | 29 | | reimbursement from the contingent expense fund of the senate and |
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| 30 | 30 | | the contingent expense fund of the house of representatives equally |
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| 31 | 31 | | for expenses incurred in carrying out the provisions of this |
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| 32 | 32 | | section in accordance with the rules of the senate and house of |
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| 33 | 33 | | representatives and the policies of the senate and house committees |
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| 34 | 34 | | on administration. |
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| 35 | 35 | | (f) Not later than the 60th day after the effective date of |
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| 36 | 36 | | this Act, the lieutenant governor, the speaker of the house of |
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| 37 | 37 | | representatives, and the governor shall appoint the members of the |
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| 38 | 38 | | interim committee created under this section. |
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| 39 | 39 | | SECTION 2. STUDY. The committee created under Section 1 of |
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| 40 | 40 | | this Act shall, with respect to property and casualty insurance |
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| 41 | 41 | | companies engaged in the business of insurance in this state, |
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| 42 | 42 | | study: |
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| 43 | 43 | | (1) the amount of insured risk across this state; |
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| 44 | 44 | | (2) the losses incurred as a result of localized |
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| 45 | 45 | | natural disasters in this state; and |
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| 46 | 46 | | (3) the impact the losses described by Subdivision (2) |
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| 47 | 47 | | have on the availability and cost of property and casualty |
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| 48 | 48 | | insurance in areas of this state not directly affected by natural |
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| 49 | 49 | | disasters. |
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| 50 | 50 | | SECTION 3. FINDINGS AND RECOMMENDATIONS. Not later than |
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| 51 | 51 | | January 15, 2021, the committee created under Section 1 of this Act |
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| 52 | 52 | | shall report the committee's findings and recommendations to the |
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| 53 | 53 | | lieutenant governor, the speaker of the house of representatives, |
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| 54 | 54 | | and the governor. The committee shall include in its |
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| 55 | 55 | | recommendations specific statutory changes, including changes to |
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| 56 | 56 | | Chapter 2251, Insurance Code, that may appear necessary or |
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| 57 | 57 | | advisable from the committee's study under Section 2 of this Act. |
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| 58 | 58 | | SECTION 4. EXPIRATION. This Act expires September 1, 2021. |
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| 59 | 59 | | SECTION 5. EFFECTIVE DATE. This Act takes effect September |
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| 60 | 60 | | 1, 2019. |
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