1-1 By: Ellis, et al. S.B. No. 79 1-2 (In the Senate - Filed November 12, 1996; January 14, 1997, 1-3 read first time and referred to Committee on Economic Development; 1-4 March 11, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 10, Nays 0; March 11, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 79 By: Ellis 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to certain insurance covering church property; providing a 1-11 penalty. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter B, Chapter 21, Insurance Code, is 1-14 amended by adding Article 21.21-9 to read as follows: 1-15 Art. 21.21-9. CERTAIN COVERAGE FOR CHURCH PROPERTY 1-16 Sec. 1. DEFINITIONS. In this article: 1-17 (1) "Church" means a facility that is owned by a 1-18 religious organization and that is used primarily for religious 1-19 services. 1-20 (2) "Religious organization" means a church, 1-21 synagogue, or other organization or association that is organized 1-22 primarily for religious purposes. 1-23 Sec. 2. APPLICATION. This article applies to any insurer 1-24 admitted to do business and authorized to write an insurance policy 1-25 providing coverage for losses resulting from fire in this state, 1-26 including a county mutual insurance company, a Lloyd's plan 1-27 company, a reciprocal or interinsurance exchange, or a farm mutual 1-28 insurance company. 1-29 Sec. 3. PROHIBITION. An insurer writing insurance for a 1-30 church may not cancel or decline to renew an insurance policy 1-31 solely because of: 1-32 (1) a previous occurrence of arson against the church 1-33 in which the church has cooperated with police, fire, and other 1-34 authorities in the investigation of the arson and the prosecution 1-35 of those responsible; or 1-36 (2) a verbal or written statement directed to the 1-37 religious organization or an official of the religious organization 1-38 threatening an act of arson against the church when the 1-39 organization or official within a reasonable amount of time 1-40 reported the threat to the appropriate law enforcement agency. 1-41 Sec. 4. PENALTY. A violation of this article is an unfair 1-42 act or practice in the business of insurance for purposes of 1-43 Article 21.21 and an insurer that violates this article is subject 1-44 to the sanctions established by Article 21.21. 1-45 SECTION 2. This Act takes effect September 1, 1997, and 1-46 applies only to an insurance policy that is delivered, issued for 1-47 delivery, or renewed on or after January 1, 1998. A policy that is 1-48 delivered, issued for delivery, or renewed before January 1, 1998, 1-49 is governed by the law as it existed immediately before the 1-50 effective date of this Act, and that law is continued in effect for 1-51 that purpose. 1-52 SECTION 3. The importance of this legislation and the 1-53 crowded condition of the calendars in both houses create an 1-54 emergency and an imperative public necessity that the 1-55 constitutional rule requiring bills to be read on three several 1-56 days in each house be suspended, and this rule is hereby suspended. 1-57 * * * * *