1-1 By: Uher (Senate Sponsor - Armbrister) H.B. No. 2736 1-2 (In the Senate - Received from the House May 16, 1997; 1-3 May 16, 1997, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 18, 1997, reported favorably, as 1-5 amended, by the following vote: Yeas 9, Nays 0; May 18, 1997, sent 1-6 to printer.) 1-7 COMMITTEE AMENDMENT NO. 1 By: Galloway 1-8 Amend H.B. No. 2736 in Section 119.012(b)(2)(B), Local 1-9 Government Code, as added by SECTION 1 of the bill (page 1, lines 1-10 43-45, House Engrossment), by striking "not later than the 72nd 1-11 hour after the time the agreement is made, and prior to formal 1-12 action by the governing body," and substituting "not later than the 1-13 72nd hour before the governing body takes formal action with 1-14 respect to the agreement,". 1-15 A BILL TO BE ENTITLED 1-16 AN ACT 1-17 relating to risk pools established by political subdivisions to 1-18 provide liability coverage. 1-19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-20 SECTION 1. Chapter 119, Local Government Code, is amended by 1-21 adding Sections 119.012 and 119.013 to read as follows: 1-22 Sec. 119.012. NOTICE OF CANCELLATION OR CHANGE OF COVERAGE. 1-23 (a) Except as provided by Subsection (b), cancellation of coverage 1-24 for liability provided through the pool under this chapter other 1-25 than cancellation for nonpayment of contribution, or any change to 1-26 the terms or conditions of the coverage, may not take effect before 1-27 the 60th day after the earlier of the date that written notice of 1-28 the change is: 1-29 (1) delivered to the county judge or presiding officer 1-30 of the governing body of each affected county or other political 1-31 subdivision; or 1-32 (2) mailed, by certified mail, to the county judge or 1-33 presiding officer of the governing body of each affected county or 1-34 other political subdivision. 1-35 (b) Notice is not required for cancellation or a change to 1-36 the terms or conditions of the coverage made: 1-37 (1) at the request of the affected county or other 1-38 political subdivision; or 1-39 (2) by mutual agreement of the governing body of the 1-40 affected county or other political subdivision and the pool if: 1-41 (A) the mutual agreement is evidenced by a 1-42 writing; and 1-43 (B) not later than the 72nd hour after the time 1-44 the agreement is made, and prior to formal action by the governing 1-45 body, the writing described by Paragraph (A) is provided, 1-46 electronically or by certified mail, to the county judge or 1-47 presiding officer of the governing body of the political 1-48 subdivision. 1-49 (c) The notice must be printed in at least 12-point 1-50 bold-faced type and must specify the reasons for the cancellation 1-51 or change. 1-52 (d) In the case of cancellation of the coverage, the notice 1-53 must state that, on request of the affected county or other 1-54 political subdivision, the pool shall refund to the county or 1-55 political subdivision the pro rata unearned paid contribution of 1-56 the county or political subdivision. This subsection does not 1-57 apply if the refund is paid at the time the notice is made. 1-58 Sec. 119.013. QUALIFICATIONS OF ADMINISTRATOR. The 1-59 individual responsible for administration of the pool, whether 1-60 employed by the pool or any other entity: 1-61 (1) must hold at least a bachelor's degree in a field 1-62 relating to insurance, finance, business management, or law or hold 1-63 the professional designation of: 1-64 (A) Chartered Property Casualty Underwriter 2-1 granted by the American Institute for Property and Liability 2-2 Underwriters; 2-3 (B) Certified Insurance Counselor granted by the 2-4 Society of Certified Insurance Counselors; or 2-5 (C) Associate in Risk Management granted by the 2-6 Insurance Institute of America; 2-7 (2) must have at least five years experience in 2-8 administration of risk pools, commercial insurance production or 2-9 management, or risk management; and 2-10 (3) during each calendar year, shall participate in a 2-11 minimum of 20 hours of continuing education that: 2-12 (A) is acceptable to the board; and 2-13 (B) relates to the types of coverage provided by 2-14 the pool, risk management, or administration of risk pools. 2-15 SECTION 2. This Act applies only to coverage provided under 2-16 a contract that is entered into or renewed or a policy that is 2-17 delivered, issued for delivery, or renewed on or after January 1, 2-18 1998. A contract that is entered into or renewed or a policy that 2-19 is delivered, issued for delivery, or renewed before January 1, 2-20 1998, is governed by the law as it existed immediately before the 2-21 effective date of this Act, and that law is continued in effect for 2-22 this purpose. 2-23 SECTION 3. (a) An individual responsible for administration 2-24 of the County Government Risk Management Pool under Chapter 119, 2-25 Local Government Code, is not required to satisfy the requirements 2-26 of Sections 119.013(1) and (2), Local Government Code, as added by 2-27 this Act, before January 1, 1998, or the requirements of Section 2-28 119.013(3), Local Government Code, as added by this Act, before 2-29 December 31, 1998. 2-30 (b) The change in law made by Section 119.013, Local 2-31 Government Code, as added by this Act, applies only to the 2-32 qualifications of an individual who is responsible for 2-33 administration of the risk pool under a contract entered into or 2-34 renewed on or after the effective date of this Act. The 2-35 qualifications of an individual who is responsible for 2-36 administration of the risk pool under a contract entered into or 2-37 renewed before the effective date of this Act is governed by the 2-38 law as it existed immediately before the effective date of this 2-39 Act, and that law is continued in effect for this purpose. 2-40 SECTION 4. This Act takes effect September 1, 1997. 2-41 SECTION 5. The importance of this legislation and the 2-42 crowded condition of the calendars in both houses create an 2-43 emergency and an imperative public necessity that the 2-44 constitutional rule requiring bills to be read on three several 2-45 days in each house be suspended, and this rule is hereby suspended. 2-46 * * * * *