By: Kubiak H.B. No. 287
73R1999 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a risk management and insurance program for fire
1-3 departments.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 419, Government Code, is amended by
1-6 adding Subchapter F to read as follows:
1-7 SUBCHAPTER F. RISK MANAGEMENT AND INSURANCE PROGRAM
1-8 Sec. 419.101. DEFINITIONS. In this subchapter:
1-9 (1) "Administrator" means the risk management
1-10 administrator employed under Section 419.104.
1-11 (2) "Fire department" means:
1-12 (A) a department of a municipality, county, or
1-13 special district or authority organized to prevent or suppress
1-14 fires; or
1-15 (B) a volunteer fire department organized to
1-16 prevent or suppress fires without compensation.
1-17 (3) "Fund" means the fire department risk management
1-18 fund established under Section 419.110.
1-19 (4) "Program" means the fire department risk
1-20 management and insurance program established under Section 419.103.
1-21 Sec. 419.102. SCOPE OF INSURANCE COVERAGE PROVIDED UNDER
1-22 SUBCHAPTER. This subchapter applies to property and casualty
1-23 insurance for fire departments. This subchapter does not apply to
1-24 the provision of:
2-1 (1) insurance that provides health benefits to fire
2-2 department employees;
2-3 (2) life insurance for fire department employees; or
2-4 (3) workers' compensation insurance for fire
2-5 departments.
2-6 Sec. 419.103. FIRE DEPARTMENT RISK MANAGEMENT AND INSURANCE
2-7 PROGRAM. (a) The Commissioner of Insurance shall establish a fire
2-8 department risk management and insurance program to:
2-9 (1) identify and evaluate risks for fire departments;
2-10 (2) maintain a loss-prevention and loss-control
2-11 program to eliminate or reduce risks for fire departments;
2-12 (3) assist fire departments to transfer risk through
2-13 insurance and contractual assignment of liability, or by other
2-14 means, in cases in which it is economical to do so;
2-15 (4) consolidate and administer fire department risk
2-16 management and self-insurance programs;
2-17 (5) supervise the purchase of property and casualty
2-18 insurance by fire departments; and
2-19 (6) provide insurance coverage in accordance with
2-20 Sections 419.107 and 419.108.
2-21 (b) The State Board of Insurance may adopt rules to
2-22 implement and administer the program.
2-23 Sec. 419.104. RISK MANAGEMENT ADMINISTRATOR. The
2-24 Commissioner of Insurance shall employ a risk management
2-25 administrator who shall implement and administer the risk
2-26 management and insurance program required by this subchapter.
2-27 Sec. 419.105. CONTINUING EVALUATION OF INSURANCE. The
3-1 administrator shall continually evaluate the insurance coverage
3-2 needed by fire departments. A fire department shall submit any
3-3 information requested by the administrator that the administrator
3-4 considers necessary to perform this duty.
3-5 Sec. 419.106. APPROVAL OF PROPERTY AND CASUALTY INSURANCE.
3-6 Before a fire department purchases property and casualty insurance,
3-7 the fire department must submit the terms of the policy and other
3-8 relevant information requested by the administrator to the
3-9 administrator for approval.
3-10 Sec. 419.107. INSURANCE FOR FIRE DEPARTMENT EQUIPMENT. (a)
3-11 The administrator may provide insurance coverage for a vehicle,
3-12 vessel, aircraft, or building used for fire fighting by a fire
3-13 department.
3-14 (b) The administrator may establish:
3-15 (1) eligibility requirements for participation in
3-16 insurance coverage under this section; and
3-17 (2) equipment and safety standards for the vehicles,
3-18 vessels, aircraft, or buildings to be covered by insurance under
3-19 this section.
3-20 (c) To participate in insurance provided under this section,
3-21 a fire department must submit a written request to the
3-22 administrator. The administrator shall approve the request if the
3-23 vehicles, vessels, aircraft, or buildings to be covered meet the
3-24 eligibility requirements and equipment and safety standards
3-25 established under Subsection (b).
3-26 Sec. 419.108. INSURANCE FOR CERTAIN FIRE DEPARTMENT
3-27 PERSONNEL. (a) The administrator may provide insurance coverage
4-1 to indemnify a member of the governing body, official, employee, or
4-2 volunteer of a fire department for liability for an error or
4-3 omission arising from the performance of the duties of the member
4-4 of the governing body, official, employee, or volunteer.
4-5 (b) The administrator may establish eligibility requirements
4-6 for participation in insurance coverage under this section.
4-7 (c) To participate in insurance coverage provided under this
4-8 section, a fire department must submit a written request to the
4-9 administrator. The administrator shall approve the request if the
4-10 members of the governing body, officers, employees, and volunteers
4-11 to be covered meet the eligibility requirements established under
4-12 Subsection (b).
4-13 (d) Insurance provided under this section may provide
4-14 indemnity only for an error or omission that occurs on or after
4-15 January 1, 1994.
4-16 Sec. 419.109. INSURANCE OR SELF-INSURANCE. The
4-17 administrator may provide insurance coverage under Sections 419.107
4-18 and 419.108 through the purchase of insurance, self-insurance, or a
4-19 combination of purchased insurance and self-insurance.
4-20 Sec. 419.110. RISK MANAGEMENT FUND. (a) The fire
4-21 department risk management fund is a fund in the state treasury.
4-22 (b) The fund is composed of:
4-23 (1) money appropriated to the fund;
4-24 (2) money collected under Section 419.112; and
4-25 (3) interest accruing on money in the fund.
4-26 (c) Money in the fund may be expended in accordance with
4-27 legislative appropriation only for:
5-1 (1) administration of this subchapter, including the
5-2 salaries and administrative expenses of staff administering the
5-3 program and the fund; or
5-4 (2) funding self-insurance or the purchase of
5-5 insurance under the program.
5-6 (d) Interest on money in the fund shall be credited to the
5-7 fund.
5-8 (e) An appropriation to the fund becomes part of the fund.
5-9 Sec. 419.111. PAYMENT FROM FUND. (a) Insurance coverage
5-10 provided under Sections 419.107 and 419.108 may be funded only from
5-11 money available from the fund.
5-12 (b) Coverage limits of self-insurance provided under
5-13 Sections 419.107 and 419.108 must be based on the liquidity of the
5-14 fund after deduction of the cost of purchased insurance, if any,
5-15 and the cost of administration of this subchapter.
5-16 (c) The state's liability for a loss covered by
5-17 self-insurance provided under this subchapter is limited to the
5-18 assets of the fund and the state is not otherwise liable for that
5-19 loss.
5-20 Sec. 419.112. INSURANCE FEE. (a) The Commissioner of
5-21 Insurance may levy and collect a reasonable fee from participating
5-22 fire departments to provide insurance coverage under this
5-23 subchapter.
5-24 (b) Fees collected under this section shall be deposited to
5-25 the credit of the fund.
5-26 SECTION 2. (a) This Act takes effect September 1, 1993.
5-27 (b) The risk management administrator employed under Section
6-1 419.104, Government Code, as added by this Act, may not provide
6-2 insurance coverage under Sections 419.107 and 419.108, Government
6-3 Code, as added by this Act, before January 1, 1994.
6-4 SECTION 3. The importance of this legislation and the
6-5 crowded condition of the calendars in both houses create an
6-6 emergency and an imperative public necessity that the
6-7 constitutional rule requiring bills to be read on three several
6-8 days in each house be suspended, and this rule is hereby suspended.