By: Taylor S.B. No. 2305
(In the Senate - Filed March 8, 2019; March 21, 2019, read
first time and referred to Committee on Business & Commerce;
April 8, 2019, reported favorably by the following vote: Yeas 9,
Nays 0; April 8, 2019, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the certification of certain improvements by the Texas
Department of Insurance in connection with the issuance of
insurance by the Texas Windstorm Insurance Association;
authorizing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.251(g), Insurance Code, is amended
to read as follows:
(g) A certificate of compliance issued by the department [or
association] under Section 2210.2515 demonstrates compliance with
the applicable building code under the plan of operation. The
certificate is evidence of insurability of the structure by the
association.
SECTION 2. Section 2210.2515, Insurance Code, is amended by
amending Subsections (c) and (e) and adding Subsections (i) and (j)
to read as follows:
(c) A person may apply to the department [association] on a
form prescribed by the department for a certificate of compliance
for a completed improvement. Except as provided by Subsection (e),
the [The] department [association] shall issue a certificate of
compliance for a completed improvement if a professional engineer
licensed by the Texas Board of Professional Engineers inspects the
completed improvement in accordance with commissioner rule and
affirms the improvement complies[:
[(1) has designed the improvement, has affixed the
engineer's seal on the design, and submits to the association on a
form prescribed by the department an affirmation of compliance]
with the applicable building code under the plan of operation and,
if a design of the completed improvement affixed with the seal of a
licensed professional engineer was submitted, that the improvement
conforms to the design[; or
[(2) completes a sealed post-construction evaluation
report that confirms compliance with the applicable building code
under the plan of operation].
(e) Except as otherwise provided by this subchapter, the
department may not issue a certificate of compliance under
Subsection (c) or (d) if within six months after the date of the
final inspection of the structure that is the subject of the
application, the department has not received:
(1) fully completed forms prescribed by the department
demonstrating that the improvement satisfies the requirements
under Subsection (c) or Subsection (d)(1) or (2), as applicable;
and
(2) payment in full of all inspection fees, including
fees for prior department inspections, owed to the department.
(i) The department may rescind a certificate of compliance
issued under this section if the department finds that the
certificate was improperly issued.
(j) If the department finds that a professional engineer has
failed to provide complete and accurate information in connection
with an application for a certificate of compliance under this
section, the department may:
(1) impose a reasonable penalty on the professional
engineer, including prohibiting the engineer from applying for
certificates of compliance under this section; or
(2) submit a formal complaint to the Texas Board of
Professional Engineers recommending license revocation.
SECTION 3. Section 2210.2515(f), Insurance Code, is
repealed.
SECTION 4. (a) Section 2210.251(g), Insurance Code, as
amended by this Act, does not affect the status of a certificate of
compliance issued by the Texas Windstorm Insurance Association
before January 1, 2019, or after January 1, 2019, in response to an
application made before that date for purposes of establishing
evidence of insurability.
(b) Section 2210.2515, Insurance Code, as amended by this
Act, applies only to an application for a certificate of compliance
made on or after January 1, 2020. An application for a certificate
of compliance made before January 1, 2020, 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 5. This Act takes effect September 1, 2019.
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