BILL ANALYSIS



C.S.S.B. 490
By: Bivins (Smithee)
04-12-95
Committee Report (Substituted)


BACKGROUND

     Article 5.33A of the Insurance Code, originally called the
"dead-bolt" law, now includes premium discounts for homeowner
policy holders who have security systems placed in their homes. To
receive the discount from insurers, an inspection from a certified
police officer is required. Inspectors are liable for providing
that service, and due to liability problems with inspectors,
consumers have had difficulties receiving the premium discount.

PURPOSE

     As substituted, Senate Bill 490 provides qualifications for
premium reduction for homeowners insurance coverage for persons
installing home security devices and allows a person to submit a
certificate of installation to receive a premium discount.

RULEMAKING AUTHORITY

     It is the committee's opinion that this bill does not
expressly grant any additional rulemaking authority to a state
officer, department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1. 

Amends Section 1, Article 5.33A, Insurance Code, by adding
Subdivisions (4) and (5), to define "U.L." and "siren."

SECTION 2. 

Amends Section 2, Article 5.33A, Insurance Code, to entitle a
person to premium reduction for homeowners insurance coverage if
that person's property, rather than that person, is found by an
inspector to be in compliance with specifications under Section 6
of this article; or if the person's property is in compliance with
Section 6(a)(2) of this article, the person possesses a certificate
of installation issued by the installer of the electronic burglar
alarm and the person furnishes the certificate to the insurer.

SECTION 3. 

Amends Section 3(a), Article 5.33A, Insurance Code, to make a
conforming change.

SECTION 4. 

Amends Section 4(a), Article 5.33A, Insurance Code, to make a
conforming change.

SECTION 5.

Amends Section 6(a), Article 5.33A, Insurance Code, to provide that
a person's property qualifies for a homeowners insurance premium
reduction if the property meets with certain minimum specifications
regarding doors and windows; or the property is equipped with an
electronic burglar alarm system in which the doors and windows meet
certain specifications with respect to protective and security
devices. 


SECTION 5. (continued)

Amends Section 6(a), Article 5.33A, Insurance Code, to provide if
the system includes a siren audible inside the house, and except
where prohibited by other law or ordinance, a siren audible outside
the house; all equipment, except for sirens, is U.L. or Factory
Mutual Research Corporation listed, the system is monitored by a
U.L. listed central station; a backup battery is included; and the
equipment sales and system installation and monitoring are in
compliance with the Private Investigators and Private Security
Agencies Act.

SECTION 6.

Amends Section 7, Article 5.33A, Insurance Code, to make a
conforming change.

SECTION 7. 

Amends Section 8(a), Article 5.33A, Insurance Code, to make a non-substantive change.

SECTION 8.

Effective date: September 1, 1995.  Makes application of this Act
prospective from January 1, 1996.

SECTION 9. Emergency Clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

     As substituted, S.B. 490 requires the insurer to determine
that a person's property is in compliance with Section 6(a)(2) of
this article and permits exterior windows to be protected by 
motion detectors in the immediate vicinity of each exterior window
in order for a policyholder to receive an insurance premium
discount.

SUMMARY OF COMMITTEE ACTION

     In accordance with House rules, S.B. 490 was heard in a public
hearing on April 12, 1995.
Since Representative Smithee was the House Sponsor of S.B. 490,
Representative Smithee turned the chair\gavel over to
Representative Duncan.  The Chair (Duncan) laid out S.B. 490 and
recognized Representative Smithee to explain the bill.  The Chair
recognized the following person to testify in support of S.B. 490: 
Bob Leonard, Jr.; Texas Burglar & Fire Alarm Association

     The Chair laid out Committee amendment #1 by Representative
Smithee and after further discussion by the Committee, Committee
amendment #1 was withdrawn from consideration by Representative
Smithee.

The Chair laid out Committee amendment #2 by Representative Smithee
to S.B. 490 and recognized Representative Smithee to explain
Committee amendment #2.  The Chair recognized Representative Dutton
who moved the Committee adopt Committee amendment #2.

     The Chair recognized Representative Counts who objected to the
adoption of Committee amendment #2.  The Chair instructed the Clerk
to call the roll for a record vote on the question of adoption of
Committee amendment #2.  Committee amendment #2 was adopted by the 
  following vote:  AYES (6); NAYES (3); ABSENT (0); PNV (0).

     The Chair laid out Committee amendment #3 by Representative
Smithee to S.B. 490 and recognized Representative Smithee to
explain the amendment.  The Chair recognized Representative Dutton
who moved the Committee adopt Committee amendment #3.  The Chair
heard no objection and Committee amendment #3 was adopted.


     The Chair recognized Rep. Counts who moved the Committee re-draft S.B. 490 as substituted incorporating all the adopted
amendments into a complete and new substitute of S.B. 490.  The
Chair heard no objections and the motion was adopted.

     The Chair recognized Representative Dutton who moved the
Committee report S.B. 490 as substituted to the full House with the
recommendation that it do pass and be printed.  Representative De
La Garza seconded the motion and the motion passed by the following
vote:
AYES (9); NAYES (0); ABSENT (0); PNV (0).