87R4486 SMT-D
By: Lucio III H.B. No. 1864
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Texas Department of Insurance and
the Texas Windstorm Insurance Association to issue certificates of
compliance for association coverage.
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), (c-1), (i), and (k) and adding Subsection
(f) to read as follows:
(c) A person may apply to the association [department] on a
form prescribed by the department for a certificate of compliance
for a completed improvement. The association [department] shall
issue a certificate of compliance for a completed improvement if a
professional engineer licensed by the Texas Board of Professional
Engineers and Land Surveyors:
(1) has designed the improvement, has affixed the
engineer's seal on the design, and submits to the association
[department] on a form prescribed by the department an affirmation
that the design complies with the applicable building code under
the plan of operation and that the improvement was constructed in
accordance with the design; or
(2) completes and submits to the association
[department] a sealed post-construction evaluation report that:
(A) confirms the improvement's compliance with
the applicable building code under the plan of operation; and
(B) includes documentation supporting the
engineer's post-construction evaluation report on a form
prescribed by the department on which the engineer has affixed the
engineer's seal.
(c-1) The association [department] may deny an application
for a certificate of compliance under Subsection (c) if the
evaluation report or the form prescribed by the department under
Subsection (c)(1) is not fully documented as required under
Subsection (c).
(f) If the department determines not to issue a certificate
of compliance under Subsection (e), a person may apply for a
certificate of compliance under Subsection (c).
(i) The association [department] is authorized to submit a
formal complaint under Chapter 1001, Occupations Code, to the Texas
Board of Professional Engineers and Land Surveyors related to the
engineering work of a professional engineer as reflected in the
sealed post-construction evaluation report or other materials
submitted by an engineer under Subsection (c).
(k) The department or association may rescind a certificate
of compliance issued under this section if the department finds
that the improvement does not comply with the applicable building
code under the plan of operation. The commissioner may adopt rules
as necessary to implement this subsection.
SECTION 3. The commissioner of insurance shall adopt rules
to implement this Act not later than December 31, 2021.
SECTION 4. 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, 2022. An application for a
certificate of compliance made before January 1, 2022, 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, 2021.