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


Senate Research CenterC.S.S.B. 677
76R10239 PB-FBy: Jackson
Economic Development
3/24/1999
Committee Report (Substituted)


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.  C.S.S.B. 677 would
replace the current advisory committee with the Advisory Committee on
Building Code Specifications and Maintenance  

PURPOSE

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

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance in SECTION
1 Sections 6C(h), (m), and (n), Article 21.49, Insurance Code) of this
bill. 

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 specifications and maintenance in the plan of operation.  Sets
forth composition, terms of office, and meeting procedures.  Requires the
committee to make building code recommendations with consideration to
technological developments, research, and concern of the affected parties.
Requires each proposal to be submitted to the commissioner containing
certain information on the proponent, building code citations, proposed
changes, and statements. 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.  Requires the Texas
Department of Insurance to review and organize the proposals for the
committee; to allow interested parties to view the proposals; and to make
recommendations on a proposal if the committee requests a recommendation.
Authorizes a person to present views to the committee on a proposal.
Requires the committee to consider each comment presented.  Sets forth
required actions for the committee to take on each proposal.  Requires the
committee to submit its recommendation on each proposal to the
commissioner, and for the commissioner to notify the committee of the
commissioner's acceptance or rejection of the proposals.  Provides that
acceptance of a recommendation means the commissioner will consider
adoption.  Authorizes the commissioner to adopt, by rule, a recommendation
and to adopt a specification by reference. Authorizes the commissioner to
adopt rules as necessary to implement this section. 

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.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Section 6C, Article 21.49, Insurance Code, to include nonsubstantive
provisions regarding the purpose and structure of the committee.  Sets
forth provisions regarding meetings of the committee and committee
procedure.  Sets forth provisions regarding submission of proposals to the
commissioner.  Sets forth requirements regarding the department's review,
organization, and recommendations of proposals.  Adds provisions regarding
the authority of a person to present views on a proposal.  Changes the
required action to be taken by the committee on each proposal.  Specifies
what acceptance of a recommendation means.  Adds rulemaking authority for
the commissioner regarding adoption of a recommendation and implementation
of this section.