SRC-JBJ S.B. 677 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 677
76R6441 PB-FBy: Jackson
Economic Development
3/22/1999
As Filed


DIGEST 

Currently, an advisory committee established under the Insurance Code makes
recommendations to the commissioner of insurance on changes to the coastal
building code.  On September 1, 1998, a new coastal building code, approved
by the Texas Department of Insurance, went into effect.  Some builders have
encountered difficulty with the requirements and technical challenges of
the new code. The current advisory committee, consisting of sixteen
members, sets no time line or procedure for establishing and recommending
changes to the building code.  Although proposed changes to the building
code would still have to be approved through the existing rule-making
process, a replacement committee--consisting of builders, insurers, and
public members--would address procedures for possible changes to the code
and would make recommendations to the commissioner. S.B. 677 would replace
the current advisory committee with the Advisory Committee on Building Code
Specifications and Maintenance  

PURPOSE

As proposed, S.B. 677 establishes for the commissioner of insurance the
Advisory Committee on Building Code Specifications and Maintenance. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 21.49, Insurance Code, by adding Section 6C, as
follows: 

Sec. 6C.  ADVISORY COMMITTEE ON BUILDING CODE SPECIFICATIONS AND
MAINTENANCE.  Defines "advisory committee."  Establishes the Windstorm
Building Code Advisory Committee on Specifications and Maintenance
(committee) as an advisory committee to the commissioner of insurance
(commissioner) to advise and make recommendations to the commissioner on
building code specifications and maintenance regarding the plan of
operation.  The committee is composed of nine members appointed by the
commissioner without certain discriminations, and the commissioner or a
representative as an ex-officio, nonvoting member.  Sets forth composition
of the committee.  Sets forth guidelines for terms of office for the
members and meeting procedures for the committee. Establishes duties of the
committee regarding building code changes adopted by the commissioner in
the plan of operation, with a consideration of technological developments
in building products and research, and requires the committee to balance
the concerns of affected parties.  Authorizes a person to submit to the
committee and commissioner a proposal for changing building code
specifications.  Requires each proposal to be submitted separately and sets
forth criteria for the proposal.  Requires the commissioner to adopt, by
rule, a form to be used for presenting the proposal.  Establishes
guidelines for the submission and consideration of the proposal.
Authorizes any interested person to present the person's views, at certain
committee meetings, on a proposal for a change in a building code
specification, and submit modifications to the proposal from the floor.
Sets forth guidelines for the committee to approve, disapprove, or suspend
the proposal.  Requires the committee to submit each approved by the
committee proposals to the commissioner.  Authorizes the commissioner to
adopt, by rule, a proposal by amending the plan of operation and, in
amending the plan, adoption on a specification by reference.  Requires the
commissioner to notify, within a certain amount of time the committee of
the acceptance or rejection of an approved proposal. 
 
SECTION 2. Repealer:  Section 6A(f), Article 21.49, Insurance Code,
Valuation of investment in a subsidiary or affiliate. 

SECTION 3.  (a)  Effective date:  Upon passage, except for SECTION 2 which
takes effect September 1, 1999. 

(b)  Abolishes the committee established under Section 6a(f), Article
21.49, Insurance Code, effective August 31, 1999. 

(c)  Requires the members of the committee created under Section 6C,
Article 21.49, Insurance Code, to be appointed by September 1, 1999. 

SECTION 4.Emergency clause.