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.

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