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A BILL TO BE ENTITLED
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AN ACT
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relating to a mitigation and preparedness program and a fortified |
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homes program administered by the Texas Windstorm Insurance |
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Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.454, Insurance Code, is amended to |
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read as follows: |
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Sec. 2210.454. MITIGATION AND PREPAREDNESS PROGRAM |
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[PLAN]. (a) Subject to a plan approved by the [The] commissioner, |
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the association may administer [shall annually develop and |
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implement] a mitigation and preparedness program [plan]. |
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(b) Each [state fiscal] year, the association [department] |
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may fund the mitigation and preparedness program [plan] using money |
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from the catastrophe reserve trust fund not to exceed $500,000 |
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annually [available funds]. |
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(c) The association must design the mitigation and |
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preparedness program [plan must provide for actions to be taken in |
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the seacoast territory by the commissioner, or by a local |
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government, state agency, educational institution, or nonprofit |
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organization designated by the commissioner in the plan, to |
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implement programs] to: |
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(1) improve preparedness for windstorm and hail |
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catastrophes; and |
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(2) reduce potential losses in the event of such a |
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catastrophe[; and |
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[(3) provide research into the means to: |
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[(A) reduce those losses; |
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[(B) educate or inform the public in determining |
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the appropriateness of particular upgrades to structures; or |
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[(C) protect infrastructure from potential |
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damage from those catastrophes]. |
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(d) Money [in excess of $1 million] may not be used under |
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this section if the commissioner determines that an expenditure [of |
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investment income] from the trust fund would jeopardize the |
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actuarial soundness of the association [fund] or materially impair |
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the ability of the association [fund] to serve the state purposes |
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for which the association [fund] was established. |
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SECTION 2. Subchapter J, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.456 to read as follows: |
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Sec. 2210.456. FORTIFIED HOMES PROGRAM. (a) Subject to a |
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plan approved by the commissioner, the association may administer a |
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fortified homes program. |
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(b) Each year, the association may fund the fortified homes |
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program using money from the catastrophe reserve trust fund not to |
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exceed $500,000 annually. |
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(c) The fortified homes program must be designed to: |
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(1) improve preparedness for windstorm and hail |
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catastrophes; and |
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(2) reduce potential losses in the event of such a |
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catastrophe. |
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(d) Money may not be used under this section if the |
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commissioner determines that an expenditure from the trust fund |
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would: |
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(1) jeopardize the actuarial soundness of the |
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association; or |
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(2) materially impair the ability of the association |
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to serve the state purposes for which the association was |
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established. |
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SECTION 3. This Act takes effect September 1, 2023. |