By Eiland H.B. No. 3383
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas Catastrophe Insurance Pool Act
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 3, Article 21.49, Insurance Code, is
1-5 amended to add (o) to read as follows:
1-6 (o) "Building code" means any building code, standard,
1-7 interpretation, or guideline issued by the Texas Department of
1-8 Insurance that must be met before any new residential construction
1-9 qualifies for a certificate of compliance that is evidence of
1-10 insurability of the structure by the Association.
1-11 SECTION 2. Section 8, Article 21.49, Insurance Code, is
1-12 amended to add Section 8E to read as follows:
1-13 Sec. 8E. Rate Rollback. (a) Findings. The legislature
1-14 finds that:
1-15 (1) the cost of housing will increase in the first
1-16 tier coastal counties with the implementation of any new building
1-17 code;
1-18 (2) increased costs will have a negative effect on
1-19 economic development for all coastal areas, driving growth further
1-20 inland where housing is more affordable;
1-21 (3) the increased building code standards will lower
1-22 the risk of insurers that write business in the first tier coastal
2-1 counties; and
2-2 (3) legislative action in the public interest and
2-3 within the police power of the state is required to eliminate these
2-4 negative impacts on consumers through insurance rate reductions.
2-5 (b) Scope.
2-6 (1) This article applies to any insurer that is
2-7 authorized to do business in this state and that is authorized to
2-8 write Texas Windstorm and Hail Insurance, as defined in Section
2-9 3(d) of this Article.
2-10 (2) This article applies only to policies or coverages
2-11 that are issued to cover new residential construction built to the
2-12 standards of any new building code.
2-13 (c) Rate Rollback.
2-14 (1) The commissioner shall hold a rulemaking hearing
2-15 under Chapter 2001, Government Code, to determine the percentage of
2-16 equitable across-the-board reductions in insurance rates required
2-17 of insurers writing Texas Windstorm and Hail Insurance coverage.
2-18 (2) Not later than 180 days after implementation of
2-19 any new building code or guideline, the commissioner shall issue
2-20 rules mandating the appropriate rate reductions.
2-21 (3) If, 180 days after implementation of any new
2-22 building code or guideline, the commissioner has not issued an
2-23 order establishing rate reductions for Texas Windstorm and Hail
2-24 Insurance, or the order has not become final because of judicial
2-25 intervention or any other reason, the commissioner shall require a
2-26 15% across-the-board reduction.
2-27 (4) A rate filed by an insurer writing Texas Windstorm
3-1 and Hail Insurance on or after the imposition of this rate
3-2 reduction shall reflect the rate reduction imposed by Section 8E of
3-3 this article. The commissioner shall disapprove a rate if the
3-4 commissioner finds that the filed rate does not reflect that
3-5 reduction.
3-6 (d) Hearings and Orders. Notwithstanding Article 1.33B of
3-7 this code, a hearing under this article shall be held before the
3-8 commissioner or the commissioner's designee. This section does not
3-9 apply to any other rate promulgation proceeding.
3-10 SECTION 3. The importance of this legislation and the
3-11 crowded condition of the calendars in both houses create an
3-12 emergency and an imperative public necessity that the
3-13 constitutional rule requiring bills to be read on three several
3-14 days in each house be suspended, and this rule is hereby suspended,
3-15 and that this Act take effect and be in force from and after its
3-16 passage, and it is so enacted.