SRC-JBJ S.B. 139 76(R) BILL ANALYSIS Senate Research Center S.B. 139 By: Moncrief Economic Development 2/18/1999 As Filed 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 would require insurance providers to reduce the insurance premium of a homeowner who installs a stovetop fire suppression device and would require the commissioner of insurance to establish the amount of the reduction. PURPOSE As proposed, S.B. 139 requires insurance providers to reduce the insurance premium of a homeowner who installs a stovetop fire suppression device and would require 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 (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 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 certified and approved stovetop fire suppression device. Sec. 3. AMOUNT OF PREMIUM REDUCTION. Requires the commissioner of insurance to establish, by rule, the amount of premium reduction applicable under this article. SECTION 2. Effective date: September 1, 1999. Makes application of this Act prospective to January 1, 2000. SECTION 3. Emergency clause.