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.