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.