Texas 2019 - 86th Regular

Texas Senate Bill SB2305 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R30838 JES-F
2	1		By: Taylor S.B. No. 2305
3		-	(Bonnen of Galveston)
4		-	Substitute the following for S.B. No. 2305: No.
5	2
6	3
7	4		A BILL TO BE ENTITLED
8	5		AN ACT
9		-	relating to certain ~~functions of~~ the Texas ~~Windstorm Insurance~~
10		-	~~Association and a study regarding a merger~~ of the ~~Texas Windstorm~~
11		-	Insurance Association ~~and the Fair Access to Insurance Requirements~~
12		-	~~Plan;~~ authorizing a penalty.
	6	+	relating to the certification of certain improvements by the Texas
	7	+	Department of Insurance in connection with the issuance of
	8	+	insurance by the Texas Windstorm Insurance Association;
	9	+	authorizing a penalty.
13	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	11		SECTION 1. Section 2210.251(g), Insurance Code, is amended
15	12		to read as follows:
16	13		(g) A certificate of compliance issued by the department [or
17	14		association] under Section 2210.2515 demonstrates compliance with
18	15		the applicable building code under the plan of operation. The
19	16		certificate is evidence of insurability of the structure by the
20	17		association.
21	18		SECTION 2. Section 2210.2515, Insurance Code, is amended by
22	19		amending Subsections (c) and (e) and adding Subsections (i) and (j)
23	20		to read as follows:
24	21		(c) A person may apply to the department [association] on a
25	22		form prescribed by the department for a certificate of compliance
26	23		for a completed improvement. Except as provided by Subsection (e),
27		-	the department [~~The~~ association] shall issue a certificate of
	24	+	the [The] department [association] shall issue a certificate of
28	25		compliance for a completed improvement if a professional engineer
29	26		licensed by the Texas Board of Professional Engineers inspects the
30	27		completed improvement in accordance with commissioner rule and
31	28		affirms the improvement complies[:
32	29		[(1) has designed the improvement, has affixed the
33	30		engineer's seal on the design, and submits to the association on a
34	31		form prescribed by the department an affirmation of compliance]
35	32		with the applicable building code under the plan of operation and,
36	33		if a design of the completed improvement affixed with the seal of a
37	34		licensed professional engineer was submitted, that the improvement
38	35		conforms to the design[; or
39	36		[(2) completes a sealed post-construction evaluation
40	37		report that confirms compliance with the applicable building code
41	38		under the plan of operation].
42	39		(e) Except as otherwise provided by this subchapter, the
43	40		department may not issue a certificate of compliance under
44	41		Subsection (c) or (d) if within six months after the date of the
45	42		final inspection of the structure that is the subject of the
46	43		application, the department has not received:
47	44		(1) fully completed forms prescribed by the department
48	45		demonstrating that the improvement satisfies the requirements
49	46		under Subsection (c) or Subsection (d)(1) or (2), as applicable;
50	47		and
51	48		(2) payment in full of all inspection fees, including
52	49		fees for prior department inspections, owed to the department.
53	50		(i) The department may rescind a certificate of compliance
54	51		issued under this section if the department finds that the
55	52		certificate was improperly issued.
56	53		(j) If the department finds that a professional engineer has
57	54		failed to provide complete and accurate information in connection
58	55		with an application for a certificate of compliance under this
59		-	section, the department may submit a formal complaint to the Texas
60		-	Board of Professional Engineers recommending license revocation.
61		-	If the Texas Board of Professional Engineers finds that the
62		-	engineer provided complete and accurate information in connection
63		-	with the application for a certificate of compliance, the
64		-	department may not refuse to issue the certificate of compliance
65		-	solely on the basis of that engineer's conduct.
66		-	SECTION 3. Subchapter H, Chapter 2210, Insurance Code, is
67		-	amended by adding Section 2210.3511 to read as follows:
68		-	Sec. 2210.3511. PUBLIC ACCESS TO RATE ADEQUACY ANALYSIS.
69		-	(a) The association shall make the association's rate adequacy
70		-	analysis publicly available on its Internet website for at least 14
71		-	days before the date the board of directors votes on the submission
72		-	of a proposed rate filing based on the analysis to the department.
73		-	The rate adequacy analysis must include:
74		-	(1) all user selected hurricane model input
75		-	assumptions; and
76		-	(2) output data:
77		-	(A) with the same content and in the same format
78		-	that is customarily provided to:
79		-	(i) the association by hurricane modelers;
80		-	and
81		-	(ii) the department by the association; and
82		-	(B) in a searchable electronic format that allows
83		-	for efficient analysis and is sufficiently detailed to allow the
84		-	historical experience in this state to be compared to results
85		-	produced by the model.
86		-	(b) The association shall accept public comment with
87		-	respect to the association's rate adequacy analysis at a public
88		-	meeting of the board of directors before the board of directors
89		-	votes on the submission of a proposed rate filing to the department.
90		-	SECTION 4. (a) The windstorm insurance legislative
91		-	oversight board established under Subchapter N, Chapter 2210,
92		-	Insurance Code, shall conduct a study to evaluate a merger of the
93		-	Texas Windstorm Insurance Association established under Chapter
94		-	2210, Insurance Code, and the Fair Access to Insurance Requirements
95		-	Plan established under Chapter 2211, Insurance Code.
96		-	(b) The evaluation must consider:
97		-	(1) the affordability and availability of windstorm
98		-	and hail insurance throughout this state and, in particular, in the
99		-	seacoast territory as defined by Section 2210.003, Insurance Code;
100		-	(2) the affordability and availability of residential
101		-	property insurance throughout this state and, in particular, in
102		-	underserved areas as defined by Section 2211.001, Insurance Code;
103		-	(3) the advisability of merging the Texas Windstorm
104		-	Insurance Association and the Fair Access to Insurance Requirements
105		-	Plan to provide windstorm and hail and residential property
106		-	insurance in this state;
107		-	(4) any efficiencies or inefficiencies from a merger
108		-	of the Texas Windstorm Insurance Association and the Fair Access to
109		-	Insurance Requirements Plan;
110		-	(5) the funding necessary to ensure that windstorm and
111		-	hail and residential property insurance are available after the
112		-	merger of the Texas Windstorm Insurance Association and the Fair
113		-	Access to Insurance Requirements Plan; and
114		-	(6) any other items the windstorm insurance
115		-	legislative oversight board determines are relevant to a merger of
116		-	the Texas Windstorm Insurance Association and the Fair Access to
117		-	Insurance Requirements Plan.
118		-	(c) Not later than January 1, 2021, the windstorm insurance
119		-	legislative oversight board shall submit to the governor, the
120		-	lieutenant governor, the speaker of the house of representatives,
121		-	and the Texas Department of Insurance a written report of the study
122		-	conducted under this section. The report must include the findings
123		-	and legislative recommendations of the board.
124		-	(d) This section expires January 1, 2022.
125		-	SECTION 5. Section 2210.2515(f), Insurance Code, is
	56	+	section, the department may:
	57	+	(1) impose a reasonable penalty on the professional
	58	+	engineer, including prohibiting the engineer from applying for
	59	+	certificates of compliance under this section; or
	60	+	(2) submit a formal complaint to the Texas Board of
	61	+	Professional Engineers recommending license revocation.
	62	+	SECTION 3. Section 2210.2515(f), Insurance Code, is
126	63		repealed.
127		-	SECTION 6. (a) Section 2210.251(g), Insurance Code, as
	64	+	SECTION 4. (a) Section 2210.251(g), Insurance Code, as
128	65		amended by this Act, does not affect the status of a certificate of
129	66		compliance issued by the Texas Windstorm Insurance Association
130	67		before January 1, 2019, or after January 1, 2019, in response to an
131	68		application made before that date for purposes of establishing
132	69		evidence of insurability.
133	70		(b) Section 2210.2515, Insurance Code, as amended by this
134	71		Act, applies only to an application for a certificate of compliance
135	72		made on or after January 1, 2020. An application for a certificate
136	73		of compliance made before January 1, 2020, is governed by the law as
137	74		it existed immediately before the effective date of this Act, and
138	75		that law is continued in effect for that purpose.
139		-	(c) Section 2210.3511, Insurance Code, as added by this Act,
140		-	applies only to a rate adequacy analysis made in relation to a rate
141		-	filing made on or after the effective date of this Act.
142		-	SECTION 7. This Act takes effect September 1, 2019.
	76	+	SECTION 5. This Act takes effect September 1, 2019.