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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Texas Department of Insurance and |
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the Texas Windstorm Insurance Association to issue certificates of |
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compliance for association coverage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.251(g), Insurance Code, is amended |
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to read as follows: |
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(g) A certificate of compliance issued by the department or |
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association under Section 2210.2515 demonstrates compliance with |
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the applicable building code under the plan of operation. The |
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certificate is evidence of insurability of the structure by the |
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association. |
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SECTION 2. Section 2210.2515, Insurance Code, is amended by |
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amending Subsections (c), (c-1), (i), and (k) and adding Subsection |
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(f) to read as follows: |
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(c) A person may apply to the association [department] on a |
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form prescribed by the department for a certificate of compliance |
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for a completed improvement. The association [department] shall |
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issue a certificate of compliance for a completed improvement if a |
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professional engineer licensed by the Texas Board of Professional |
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Engineers and Land Surveyors: |
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(1) has designed the improvement, has affixed the |
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engineer's seal on the design, and submits to the association |
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[department] on a form prescribed by the department an affirmation |
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that the design complies with the applicable building code under |
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the plan of operation and that the improvement was constructed in |
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accordance with the design; or |
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(2) completes and submits to the association |
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[department] a sealed post-construction evaluation report that: |
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(A) confirms the improvement's compliance with |
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the applicable building code under the plan of operation; and |
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(B) includes documentation supporting the |
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engineer's post-construction evaluation report on a form |
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prescribed by the department on which the engineer has affixed the |
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engineer's seal. |
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(c-1) The association [department] may deny an application |
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for a certificate of compliance under Subsection (c) if the |
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evaluation report or the form prescribed by the department under |
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Subsection (c)(1) is not fully documented as required under |
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Subsection (c). |
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(f) If the department determines not to issue a certificate |
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of compliance under Subsection (e), a person may apply for a |
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certificate of compliance under Subsection (c). |
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(i) The association [department] is authorized to submit a |
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formal complaint under Chapter 1001, Occupations Code, to the Texas |
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Board of Professional Engineers and Land Surveyors related to the |
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engineering work of a professional engineer as reflected in the |
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sealed post-construction evaluation report or other materials |
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submitted by an engineer under Subsection (c). |
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(k) The department or association may rescind a certificate |
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of compliance issued under this section if the department finds |
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that the improvement does not comply with the applicable building |
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code under the plan of operation. The commissioner may adopt rules |
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as necessary to implement this subsection. |
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SECTION 3. The commissioner of insurance shall adopt rules |
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to implement this Act not later than December 31, 2021. |
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SECTION 4. Section 2210.2515, Insurance Code, as amended by |
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this Act, applies only to an application for a certificate of |
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compliance made on or after January 1, 2022. An application for a |
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certificate of compliance made before January 1, 2022, is governed |
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by the law as it existed immediately before the effective date of |
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this Act, and that law is continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2021. |