The bill would amend the Insurance Code and Government Code to authorize the use of up to $1.0 billion from the Economic Stabilization Fund to be used for the payment of excess losses of the Texas Windstorm Insurance Association (TWIA) and that would be repaid through the order of catastrophe surcharge on all policy holders of property insurance policies. As the use of such funds would be dependent on the severity and timing of coastal area catastrophes and cannot be estimated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Note: This legislation would create or recreate a dedicated account in the General Revenue Fund, create or recreate a fund either in, with, or outside of the Treasury, or dedicate or rededicate a revenue source. The Legislature consolidated funds into the General Revenue Fund as of August 31, 1993 and eliminated all applicable statutory revenue dedications as of August 31, 1995. Each subsequent Legislature has enacted a funds consolidation bill. The dedication included in this bill, unless created by a constitutional amendment, would be subject to funds consolidation review by the current Legislature.
No fiscal implication to units of local government is anticipated.