By Lucio S.B. No. 457 74R3421 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, 1995, unless the structure was inspected or approved 1-24 by the commissioner and the commissioner has issued a certificate 2-1 of compliance indicating that the structure complies with the 2-2 building specifications in the plan of operation of the Texas 2-3 Catastrophe Property Insurance Association in accordance with 2-4 Section 6A, Article 21.49, of this code. 2-5 (b) The commissioner may charge a fee for an inspection 2-6 conducted under this section in accordance with Section 6A(c), 2-7 Article 21.49, of this code. 2-8 Sec. 3. ASSESSMENT. (a) The commissioner 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 commissioner 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 2-18 commissioner estimates will be collected for that year under 2-19 Section 2(b) of this article and under Section 6A(c), Article 2-20 21.49, of this code. 2-21 (c) The assessment must be based on each windstorm and hail 2-22 insurer's proportionate share of the total premium received by all 2-23 windstorm and hail insurers for Texas windstorm and hail insurance 2-24 in the first tier coastal counties in the calendar year preceding 2-25 the year in which the assessment is made. 2-26 Sec. 4. UTILITY CONNECTION. (a) An entity described by 2-27 Subsection (b) of this section may not serve or connect a structure 3-1 located in a first tier coastal county that was constructed, 3-2 repaired, or added to after December 31, 1995, with water, sewer, 3-3 electricity, gas, or other utility service unless the commissioner 3-4 has issued a certificate of compliance in accordance with Section 3-5 6A(b), Article 21.49, of this code. 3-6 (b) This section applies to any entity that provides water, 3-7 sewer, electricity, gas, or other utility service, including: 3-8 (1) a municipality or county; 3-9 (2) a municipally owned or operated utility; 3-10 (3) a public utility; 3-11 (4) a water supply or sewer service corporation 3-12 organized and operating under Chapter 76, Acts of the 43rd 3-13 Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's 3-14 Texas Civil Statutes); or 3-15 (5) a special district or authority created under 3-16 state law. 3-17 SECTION 2. Subchapter Z, Chapter 214, Local Government Code, 3-18 is amended by adding Section 214.903 to read as follows: 3-19 Sec. 214.903. WINDSTORM AND HAIL INSPECTION. (a) A 3-20 municipality may not issue a certificate of occupancy for a 3-21 structure located in a first tier coastal county that was 3-22 constructed, repaired, or added to after December 31, 1995, unless 3-23 the commissioner of insurance has issued a certificate of 3-24 compliance in accordance with Section 6A(b), Article 21.49, 3-25 Insurance Code. 3-26 (b) In this section, "first tier coastal county" has the 3-27 meaning assigned by Section 3, Article 21.49, Insurance Code. 4-1 SECTION 3. The commissioner of insurance may not make the 4-2 first assessment under Section 3, Article 21.49A, Insurance Code, 4-3 as added by this Act, for windstorm and hail inspections before 4-4 January 1, 1996. The first assessment must be in the amount the 4-5 commissioner estimates is necessary to cover the cost of 4-6 administration of the windstorm inspection program in the first 4-7 tier coastal counties under Article 21.49, Insurance Code, and 4-8 under Article 21.49A, Insurance Code, as added by this Act, in the 4-9 period beginning January 1, 1996, and ending August 31, 1996, 4-10 reduced by the total amount of fees the commissioner estimates will 4-11 be collected for that period under Section 6A(c), Article 21.49, 4-12 Insurance Code, and under Section 2(b), Article 21.49A, Insurance 4-13 Code, as added by this Act. 4-14 SECTION 4. The importance of this legislation and the 4-15 crowded condition of the calendars in both houses create an 4-16 emergency and an imperative public necessity that the 4-17 constitutional rule requiring bills to be read on three several 4-18 days in each house be suspended, and this rule is hereby suspended, 4-19 and that this Act take effect and be in force from and after its 4-20 passage, and it is so enacted.