88R11081 SCL-D

By: Ashby H.B. No. 3105

A BILL TO BE ENTITLED

AN ACT

relating to establishment of the temporary 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 PRESCRIBED BURN MANAGER SELF-INSURANCE

POOL

Sec. 2155.001. DEFINITIONS. In this chapter:

(1) "Fund" means the prescribed burn manager self-insurance fund established under Section 2155.006.

(2) "Prescribed burn manager" means a person who is a certified and insured prescribed burn manager under Section 153.048, Natural Resources Code.

(3) "Program" means the prescribed burn manager self-insurance program administered under this chapter.

(4) "Service" means the Texas Forest Service of The Texas A&M University System.

Sec. 2155.002. PRESCRIBED BURN MANAGER SELF-INSURANCE PROGRAM. (a) The service shall administer a prescribed burn manager 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 prescribed burns a prescribed burn manager conducts.

(b) The coverage may indemnify a participating prescribed burn manager for liability arising from a prescribed burn conducted by the manager. The coverage limits provided must be the minimum amounts required for purposes of Section 153.082, Natural Resources Code, or a lesser amount determined necessary based on the liquidity of the fund after deducting the cost of administering this chapter.

(c) The self-insurance pool may not provide coverage for a risk other than a prescribed burn conducted by a participating prescribed burn manager. 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 establish:

(1) eligibility 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 prescribed burn manager 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 each proposed prescribed burn to be covered meets the eligibility requirements and equipment and safety standards established under Section 2155.003(e).

Sec. 2155.005. TRAINING REQUIREMENTS. (a) As a condition for continuing participation in coverage provided under Section 2155.003, a participating prescribed burn manager shall complete a wildfire suppression course administered by the service that trains the manager 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 National Wildfire Coordinating Group standards; and

(2) maintain records of a participating burn manager's completion of the course.

Sec. 2155.006. PRESCRIBED BURN MANAGER 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 a loss covered by self-insurance provided under this chapter is limited to the assets of the fund, and the state is not otherwise liable for that loss.

Sec. 2155.008. SELF-INSURANCE FEE; COST-SHARING REQUIREMENTS. (a) The service may assess and collect a reasonable fee from participating prescribed burn managers 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 prescribed burn manager for similar insurance coverage provided to that prescribed burn manager 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 prescribed burn manager shall report in the form and manner prescribed by the service the following information for each prescribed burn the manager conducts:

(1) the amount of land burned in acres;

(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 prescribed burn manager has made excessive claims under self-insurance coverage under this chapter, the service may:

(1) terminate the manager's participation in the self-insurance pool under this chapter; and

(2) refer the manager to the prescribed burn board for disciplinary action under Section 153.102, Natural Resources Code, as if the manager violated Chapter 153 of that code.

Sec. 2155.011. LEGAL REPRESENTATION. (a) The service may employ an attorney to represent a prescribed burn manager 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, 2038. 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, 2023.