88R22956 KBB-F

By: Lozano H.B. No. 4354

Substitute the following for H.B. No. 4354:

By: Oliverson C.S.H.B. No. 4354

A BILL TO BE ENTITLED

AN ACT

relating to a mitigation and preparedness program administered by the Texas Windstorm Insurance Association.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 2210.454, Insurance Code, is amended to read as follows:

Sec. 2210.454. MITIGATION AND PREPAREDNESS PROGRAM [PLAN]. (a) Subject to a plan approved by the [The] commissioner, the association may administer [shall annually develop and implement] a mitigation and preparedness program [plan].

(b) Each [state fiscal] year, the association [department] may fund the mitigation and preparedness program [plan] using money from the catastrophe reserve trust fund not to exceed $500,000 annually [available funds].

(c) The association must design the mitigation and preparedness program [plan must 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 association [fund] or materially impair the ability of the association [fund] to serve the state purposes for which the association [fund] was established.

SECTION 2. This Act takes effect September 1, 2023.