By:  Lucio                                             S.B. No. 602
       73R2834 DLF-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to inspection of certain buildings in certain coastal
    1-3  counties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter E, Chapter 21, Insurance Code, is
    1-6  amended by adding Article 21.49A to read as follows:
    1-7        Art. 21.49A.  WINDSTORM AND HAIL INSPECTION REQUIRED IN
    1-8  CERTAIN COASTAL COUNTIES
    1-9        Sec. 1.  DEFINITIONS.  In this article:
   1-10              (1)  "First tier coastal county" has the meaning
   1-11  assigned by Section 3, Article 21.49, of this code.
   1-12              (2)  "Texas windstorm and hail insurance" has the
   1-13  meaning assigned by Section 3, Article 21.49, of this code.
   1-14              (3)  "Windstorm and hail insurer" means any insurer
   1-15  writing Texas windstorm and hail insurance in this state, including
   1-16  an interinsurance exchange, county mutual, reciprocal, association,
   1-17  or Lloyd's plan insurer.  The term does not include a farm mutual
   1-18  insurance company.
   1-19        Sec. 2.  INSPECTION REQUIRED.    (a)   A windstorm and hail
   1-20  insurer may not issue a Texas windstorm and hail insurance policy
   1-21  that provides coverage to a structure located in a first tier
   1-22  coastal county that was constructed, repaired, or added to after
   1-23  December 31, 1993, unless the structure was inspected or approved
   1-24  by the State Board of Insurance and the board has issued a
    2-1  certificate of compliance indicating that the structure complies
    2-2  with the building specifications in the plan of operation of the
    2-3  Texas Catastrophe Property Insurance Association in accordance with
    2-4  Section 6A, Article 21.49, of this code.
    2-5        (b)  The board may charge a fee for an inspection conducted
    2-6  under this section in accordance with Section 6A(c), Article 21.49,
    2-7  of this code.
    2-8        Sec. 3.  ASSESSMENT.  (a)  The board shall assess each
    2-9  windstorm and hail insurer who provides Texas windstorm and hail
   2-10  insurance in a first tier coastal county in accordance with this
   2-11  section.
   2-12        (b)  The total assessment under this section must be in the
   2-13  amount the board estimates is necessary to cover the cost of
   2-14  administration of the windstorm inspection program in the first
   2-15  tier coastal counties under this article and under Section 6A,
   2-16  Article 21.49, of this code in the state fiscal year in which the
   2-17  assessment is made, reduced by the total amount of fees the board
   2-18  estimates will be collected for that year under Section 2(b) of
   2-19  this article and under Section 6A(c), Article 21.49, of this code.
   2-20        (c)  The assessment must be based on each windstorm and hail
   2-21  insurer's proportionate share of the total premium received by all
   2-22  windstorm and hail insurers for Texas windstorm and hail insurance
   2-23  in the first tier coastal counties in the calendar year preceding
   2-24  the year in which the assessment is made.
   2-25        Sec. 4.  UTILITY CONNECTION.   (a)  An entity described by
   2-26  Subsection (b) of this section may not serve or connect a structure
   2-27  located in a first tier coastal county that was constructed,
    3-1  repaired, or added to after December 31, 1993, with water, sewer,
    3-2  electricity, gas, or other utility service unless the board has
    3-3  issued a certificate of compliance in accordance with Section
    3-4  6A(b), Article 21.49, of this code.
    3-5        (b)  This section applies to any entity that provides water,
    3-6  sewer, electricity, gas, or other utility service, including:
    3-7              (1)  a municipality or county;
    3-8              (2)  a municipally owned or operated utility;
    3-9              (3)  a public utility;
   3-10              (4)  a water supply or sewer service corporation
   3-11  organized and operating under Chapter 76, Acts of the 43rd
   3-12  Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
   3-13  Texas Civil Statutes); or
   3-14              (5)  a special district or authority created under
   3-15  state law.
   3-16        Sec. 5.  STATUTORY REFERENCES.  A reference in this article
   3-17  to a statutory provision applies to all reenactments, revisions, or
   3-18  amendments of that statutory provision.
   3-19        SECTION 2.  Subchapter Z, Chapter 214, Local Government Code,
   3-20  is amended by adding Section 214.903 to read as follows:
   3-21        Sec. 214.903.  WINDSTORM AND HAIL INSPECTION.  (a)  A
   3-22  municipality may not issue a certificate of occupancy for a
   3-23  structure located in a first tier coastal county that was
   3-24  constructed, repaired, or added to after December 31, 1993, unless
   3-25  the State Board of Insurance has issued a certificate of compliance
   3-26  in accordance with Section 6A(b), Article 21.49, Insurance Code.
   3-27        (b)  In this section, "first tier coastal county" has the
    4-1  meaning assigned by Section 3, Article 21.49, Insurance Code.
    4-2        SECTION 3.  The State Board of Insurance may not make the
    4-3  first assessment under Section 3, Article 21.49A, Insurance Code,
    4-4  as added by this Act, for windstorm and hail inspections before
    4-5  January 1, 1994.  The first assessment must be in the amount the
    4-6  board estimates is necessary to cover the cost of administration of
    4-7  the windstorm inspection program in the first tier coastal counties
    4-8  under Article 21.49, Insurance Code, and under Article 21.49A,
    4-9  Insurance Code, as added by this Act, in the period beginning
   4-10  January 1, 1994, and ending August 31, 1994, reduced by the total
   4-11  amount of fees the board estimates will be collected for that
   4-12  period under Section 6A(c), Article 21.49, Insurance Code, and
   4-13  under Section 2(b), Article 21.49A, Insurance Code, as added by
   4-14  this Act.
   4-15        SECTION 4.  The importance of this legislation and the
   4-16  crowded condition of the calendars in both houses create an
   4-17  emergency and an imperative public necessity that the
   4-18  constitutional rule requiring bills to be read on three several
   4-19  days in each house be suspended, and this rule is hereby suspended,
   4-20  and that this Act take effect and be in force from and after its
   4-21  passage, and it is so enacted.