By: Lozano H.B. No. 4354
A BILL TO BE ENTITLED
AN ACT
relating to mitigation preparedness incentives for Texas Windstorm
Insurance Association policyholders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.454, Insurance Code, is amended to
read as follows:
MITIGATION AND PREPAREDNESS PLAN. (a) Subject to a plan
approved byTthe commissioner, shall annuallythe association may
develop and implementadminister a mitigation and preparedness
plan program.
(b) Each state fiscal year, the department association may
fund the mitigation and preparedness plan program using available
funds from the catastrophe reserve trust fund not to exceed
$500,000 annually.
(c) The mitigation and preparedness plan program must be
designed provide for actions to be taken in the seacoast territory
by the commissioner, or by a local government, state agency,
educational institution, or nonprofit organization designated by
the commissioner in the plan, to implement programs to:
(1) improve preparedness for windstorm and hail
catastrophes; and
(2) reduce potential losses in the event of such a
catastrophe.; and
(3) provide research into the means to:
(A) reduce those losses;
(B) educate or inform the public in determining
the appropriateness of particular upgrades to structures; or
(C) protect infrastructure from potential damage
from those catastrophes.
(d) Money in excess of $1 million may not be used under this
section if the commissioner determines that an expenditure of
investment income from the trust fund would jeopardize the
actuarial soundness of the fund association or materially impair
the ability of the fund association to serve the state purposes for
which the fund association was established.
SECTION 2. This Act takes effect September 1, 2023.