SRC-PNG C.S.S.B. 1610 76(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1610
76R9454 PB-FBy: Lucio
Intergovernmental Relations
4/8/1999
Committee Report (Substituted)


DIGEST 

Currently, compressed air foam (CAF) technology is being used within Texas
for fire suppression activities.  This bill would require the use of CAF
technology in fire fighting equipment to constitute a reduction in hazard,
resulting in savings for insurance policy holders that reside in an area
where CAF technology is used. 

PURPOSE

As proposed, C.S.S.B. 1610 requires the use of compressed air foam (CAF)
technology in fire fighting equipment to constitute a reduction in hazard,
resulting in savings for insurance policy holders that reside in an area
where CAF technology is used. 

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 5.33, Insurance Code, as follows:

Art.  5.33.  New heading: CREDIT FOR REDUCING HAZARD.  Authorizes the
insurance commissioner (commissioner) to give each city, town, village,
locality, or political subdivision credit for each and every hazard they
may reduce or entirely remove, and also for all added fire fighting
equipment, increased police protection, and any other equipment or
improvement that has a tendency to reduce the fire hazard.  Authorizes the
commissioner to compel any company to give any or all policy holders credit
for any and all hazards said policy holder or holders may reduce or remove.
Provides that  the installation of a new standard fire hydrant approved by
the Department of Insurance (department) within the required distance of
the risk, as prescribed by the department, or the use of compressed air
foam technology in fire fighting equipment shall constitute a reduction in
hazard by the insurance policy holder or holders.  Makes conforming and
nonsubstantive changes. 

SECTION 2. Makes application of this Act prospective, to January 1, 2000.

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.
  
SUMMARY OF COMMITTEE CHANGES

SECTION 1.

Amends Article 5.33, Insurance Code, to provide a new heading, and
authorize the commissioner to give each city, town, village, locality, or
political subdivision credit for each and every hazard they may reduce or
entirely remove, and also for all added fire fighting equipment, increased
police protection, and any other equipment or improvement that has a
tendency to reduce the fire hazard.  Authorizes the commissioner to compel
any company to give any or all policy holders credit for any and all
hazards said policy holder or holders  may reduce or remove.  Provides that
the installation of a new standard fire hydrant approved by the department
within the required distance of the risk, as prescribed by the department,
or the use of compressed air foam technology in fire fighting equipment
shall constitute a reduction in hazard by the insurance policy holder or
holders.  Makes conforming and nonsubstantive changes. 

SECTION 2. 

Amends SECTION 2 to make application of this Act prospective, to January 1,
2000. 

SECTION 3. 

Effective date: September 1, 1999, rather than upon passage.  Redesignates
proposed SECTION 3 as SECTION 4.