89R20627 SCL-D
By: Ashby H.B. No. 2563
Substitute the following for H.B. No. 2563:
By: Dean C.S.H.B. No. 2563
A BILL TO BE ENTITLED
AN ACT
relating to establishment of the temporary certified and insured
prescribed burn manager self-insurance pool; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle G, Title 10, Insurance Code, is amended
by adding Chapter 2155 to read as follows:
CHAPTER 2155. TEMPORARY CERTIFIED AND INSURED PRESCRIBED BURN
MANAGER SELF-INSURANCE POOL
Sec. 2155.001. DEFINITIONS. In this chapter:
(1) "CIPBM" means a person who is a certified and
insured prescribed burn manager under Section 153.048, Natural
Resources Code.
(2) "Fund" means the self-insurance fund established
under Section 2155.006.
(3) "Program" means the CIPBM self-insurance program
administered under this chapter.
(4) "Service" means the Texas A&M Forest Service.
Sec. 2155.002. CIPBM SELF-INSURANCE PROGRAM. (a) The
service shall administer a CIPBM self-insurance program that:
(1) identifies and evaluates risks arising from
prescribed burns conducted under Chapter 153, Natural Resources
Code;
(2) maintains a loss-prevention and loss-control
program to reduce risks arising from prescribed burns;
(3) consolidates and administers prescribed burn risk
management and self-insurance programs; and
(4) provides prescribed burn self-insurance coverage
in accordance with Section 2155.003.
(b) The service may employ staff to administer the program.
(c) The director of the service may adopt rules to implement
and administer the program.
Sec. 2155.003. SELF-INSURANCE POOL; COVERAGE. (a) The
program shall administer a self-insurance pool to provide general
liability coverage for CIPBMs who are residents of this state.
(b) The coverage must indemnify a participating CIPBM for
liability arising from a prescribed burn. The coverage limits
provided must be the minimum amounts required for purposes of
Section 153.082, Natural Resources Code.
(c) The self-insurance pool may not provide coverage for a
risk other than prescribed burning conducted by a participating
CIPBM. Prohibited coverage includes:
(1) workers' compensation;
(2) automobile liability; and
(3) errors and omissions or professional liability.
(d) Self-insurance coverage provided under this section may
be funded only from money available from the fund.
(e) The director of the service may recommend:
(1) requirements for participation in coverage under
this section; and
(2) equipment and safety standards for the prescribed
burns to be covered under this section.
Sec. 2155.004. PARTICIPATION IN SELF-INSURANCE POOL. (a)
To participate in coverage provided under Section 2155.003, a CIPBM
must submit a written request to the program in the form and manner
prescribed by the service.
(b) The director of the service shall approve the request
for participation if the CIPBM to be covered is certified under
Section 153.048, Natural Resources Code.
Sec. 2155.005. TRAINING REQUIREMENTS. (a) As a condition
for continuing participation in coverage provided under Section
2155.003, a participating CIPBM shall complete a wildfire
suppression course offered or sanctioned by the service that trains
the CIPBM on:
(1) proper coordination with this state or local fire
departments in the event that a prescribed burn escapes its
predetermined boundaries; and
(2) proper assistance in the suppression of a
naturally occurring wildfire.
(b) The service shall:
(1) develop the course described by Subsection (a) in
compliance with the minimum standards for prescribed burn manager
certification under Section 153.048, Natural Resources Code; and
(2) maintain records of a participating CIPBM's
completion of the course.
Sec. 2155.006. TEMPORARY CIPBM SELF-INSURANCE FUND. (a)
The fund is an account in a depository selected by the board of
regents of The Texas A&M University System in the manner provided by
Section 51.003, Education Code, for funds subject to the control of
institutions of higher education under Section 51.002, Education
Code.
(b) The fund is composed of:
(1) an amount not to exceed $25 million appropriated
by the legislature;
(2) money collected under Section 2155.008; and
(3) interest accruing on money in the fund.
(c) Money in the fund may be spent only for:
(1) funding self-insurance under the program; or
(2) administering this chapter, including paying the
salaries and expenses of staff for the program and the fund.
Sec. 2155.007. LIMITATION ON STATE'S LIABILITY. The
state's liability for all losses covered by self-insurance provided
under this chapter is limited to the assets of the fund, and the
state is not otherwise liable for those losses.
Sec. 2155.008. SELF-INSURANCE FEE; COST-SHARING
REQUIREMENTS. (a) The service may assess and collect a reasonable
fee from participating CIPBMs to provide self-insurance coverage
under this chapter. The service shall also establish reasonable
cost-sharing requirements, including appropriate deductibles.
(b) In establishing the amount of the fee and the
cost-sharing requirements, the service shall consider the amount
that could be charged to the CIPBM for similar insurance coverage
provided to that CIPBM in accordance with this code and ensure that
a deductible is sufficiently high to:
(1) deter the use of the self-insurance coverage for
minor losses; and
(2) ensure the self-insurance coverage is used only
for significant losses.
(c) The service shall adjust the amount of a premium for the
self-insurance coverage under this chapter by using the information
collected under Section 2155.009.
(d) Money collected under this section shall be deposited to
the credit of the fund.
Sec. 2155.009. PRESCRIBED BURN DATA COLLECTION. A
participating CIPBM shall report in the form and manner prescribed
by the service the following information for each prescribed burn
the CIPBM conducts:
(1) the amount of land burned in acres by county;
(2) the date of the burn; and
(3) whether the burn resulted in a financial loss or
wildfire response.
Sec. 2155.010. EXCESSIVE CLAIMS. If the service determines
that a participating CIPBM has made excessive claims under
self-insurance coverage under this chapter, the service may:
(1) terminate the CIPBM's participation in the
self-insurance pool under this chapter; or
(2) refer the CIPBM to the Prescribed Burning Board
for disciplinary action under Section 153.102, Natural Resources
Code, as if the CIPBM violated Chapter 153 of that code.
Sec. 2155.011. LEGAL REPRESENTATION. (a) The service may
employ an attorney to represent a CIPBM in a liability action for
which insurance coverage is provided under this chapter.
(b) The attorney general may not provide the services
described by Subsection (a).
Sec. 2155.012. EXPIRATION OF PROGRAM AND CHAPTER. The
program and this chapter expire September 1, 2040. On expiration of
the program, the remaining balance in the fund that is not needed to
pay claims is transferred to the statewide fire contingency account
established under Section 88.117, Education Code.
SECTION 2. This Act takes effect September 1, 2025.