SRC-SLL, JBJ S.B. 139 76(R)BILL ANALYSIS Senate Research CenterS.B. 139 By: Moncrief Economic Development 8/16/1999 Enrolled DIGEST Currently, state law provides an insurance premium discount to a homeowner who uses certain fire alarms or sprinkler systems. A less costly fire suppression system, known as a stovetop fire suppression device, is not eligible for existing premium discounts, although the device self-activates and produces a fire-retardant powder when temperatures exceed a certain level. S.B. 139 requires insurance providers to reduce the insurance premium of a homeowner who installs a stovetop fire suppression device and requires the commissioner of insurance to establish the amount of the reduction. PURPOSE As enrolled, S.B. 139 requires insurance providers to reduce the insurance premium of a homeowner who installs a stovetop fire suppression device and requires the commissioner of insurance to establish the amount of the reduction. RULEMAKING AUTHORITY Rulemaking authority is granted to the commissioner of insurance in SECTION 1 (Section 3(b), Article 5.33C, Chapter 5C, Insurance Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 5C, Insurance Code, by adding Article 5.33C, as follows: Art. 5.33C. REDUCTION IN HOMEOWNERS INSURANCE AND FIRE INSURANCE PREMIUMS FOR APPROVED FIRE SUPPRESSION DEVICES Sec. 1. DEFINITIONS. Defines "stovetop fire suppression device" and "homeowners insurance." Sec. 2. ELIGIBILITY FOR PREMIUM REDUCTION. Entitles a policyholder to a reduction in homeowners insurance premiums if the policyholder has installed on the premises a stovetop fire suppression device that has been approved by the State Fire Marshall through the commissioner. Sec. 3. PREMIUM DISCOUNT. Authorizes certain insurers to grant a discount in the premiums charged for a dwelling, apartment, or condominium that has a correctly installed and functioning stovetop fire suppressive device. Provides that the commissioner of insurance shall establish, by rule, the amount of discount applicable under this article, and may adopt other rules necessary to implement this article. SECTION 2.Effective date: September 1, 1999. Makes application of this Act prospective to January 1, 2000. SECTION 3. Emergency clause.