By:  Patterson                                         S.B. No. 865

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to coverage under the Texas Catastrophe Property Insurance

 1-2     Association for certain demolition and debris removal expenses.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Article 21.49, Insurance Code, is amended by

 1-5     adding Section 8C to read as follows:

 1-6           Sec. 8C.  COVERAGE FOR DEMOLITION AND DEBRIS REMOVAL.

 1-7     (a)  The Association may include an endorsement on a policy of

 1-8     windstorm and hail insurance issued by the Association to provide

 1-9     coverage for the cost of demolition of undamaged portions of real

1-10     property insured under a windstorm and hail policy and the removal

1-11     of associated debris if at least 50 percent of the insured real

1-12     property is destroyed at the time of loss through wind damage, hail

1-13     damage, or wind-driven rain damage.

1-14           (b)  Liability limits for demolition and debris removal

1-15     authorized by this section may not exceed $1,000 and may not

1-16     increase the Association's liability under a windstorm and hail

1-17     policy issued under this article beyond limits established under

1-18     Section 8D of this article.  The commissioner, after notice and

1-19     hearing, shall provide by rule:

1-20                 (1)  how, and to whom, the loss payment for coverage

1-21     authorized in this section is to be paid;

1-22                 (2)  the form and content of the endorsement;

1-23                 (3)  the rate the Association may charge for coverage

 2-1     under the endorsement;

 2-2                 (4)  the geographic location in each designated

 2-3     catastrophe area in which real properties are eligible for coverage

 2-4     under the endorsement; and

 2-5                 (5)  any other item determined by the commissioner to

 2-6     be necessary to implement this section.

 2-7           (c)  Notwithstanding Article 1.33B of this code, a hearing

 2-8     under this section shall be held before the commissioner or the

 2-9     commissioner's designee.

2-10           SECTION 2.  Section 8C, Article 21.49, Insurance Code, as

2-11     added by this Act, applies only to an insurance policy that is

2-12     delivered, issued for delivery, or renewed on or after January 1,

2-13     1998.  A policy that is delivered, issued for delivery, or renewed

2-14     before January 1, 1998, is governed by the law as it existed

2-15     immediately before the effective date of this Act, and that law is

2-16     continued in effect for that purpose.

2-17           SECTION 3.  The importance of this legislation and the

2-18     crowded condition of the calendars in both houses create an

2-19     emergency and an imperative public necessity that the

2-20     constitutional rule requiring bills to be read on three several

2-21     days in each house be suspended, and this rule is hereby suspended,

2-22     and that this Act take effect and be in force from and after its

2-23     passage, and it is so enacted.