AN ACT
 1-1     relating to residential fire suppression devices and to an
 1-2     insurance premium discount for the installation of such a device.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter C, Chapter 5, Insurance Code, is
 1-5     amended by adding Article 5.33C to read as follows:
 1-6           Art. 5.33C.  REDUCTION IN HOMEOWNERS INSURANCE AND FIRE
 1-7     INSURANCE PREMIUMS FOR APPROVED FIRE SUPPRESSION DEVICES
 1-8           Sec. 1.  DEFINITIONS.  In this article:
 1-9                 (1)  "Stovetop fire suppression device" means a device
1-10     or assembly of devices that is mounted to the vent hood over a
1-11     residential stovetop cooking surface and that protects against one
1-12     or more hazards through suppressing or extinguishing fires.
1-13                 (2)  "Homeowners insurance" has the meaning assigned by
1-14     Section 1, Article 5.33B of this code, as added by Chapter 337,
1-15     Acts of the 74th Legislature, Regular Session, 1995.
1-16           Sec. 2.  ELIGIBILITY FOR PREMIUM REDUCTION.  A policyholder
1-17     of a single-family or multifamily dwelling, apartment owner, or
1-18     condominium owner is eligible for a premium reduction for
1-19     homeowners insurance coverage or fire or commercial fire insurance
1-20     coverage if the policyholder has correctly installed on the covered
1-21     property a stovetop fire suppression device that has been approved
1-22     by the State Fire Marshal through the commissioner.
1-23           Sec. 3.  PREMIUM DISCOUNT.  (a)  An insurer who delivers or
1-24     issues for delivery a homeowners, fire, or commercial fire
 2-1     insurance policy may grant a discount in the premiums charged for a
 2-2     dwelling, apartment, or condominium that has a correctly installed
 2-3     and functioning stovetop fire suppressive device in each dwelling,
 2-4     apartment, or condominium.
 2-5           (b)  The commissioner shall establish by rule the amount of
 2-6     discount applicable under this article.  The commissioner may adopt
 2-7     rules necessary for the implementation of this article.
 2-8           SECTION 2.  (a)  This Act takes effect September 1, 1999.
 2-9           (b)  Article 5.33C, Insurance Code, as added by this Act,
2-10     applies only to an insurance policy that is delivered, issued for
2-11     delivery, or renewed on or after January 1, 2000.  A policy that is
2-12     delivered, issued for delivery, or renewed before January 1, 2000,
2-13     is governed by the law as it existed immediately before the
2-14     effective date of this Act, and that law is continued in effect for
2-15     that purpose.
2-16           SECTION 3.  The importance of this legislation and the
2-17     crowded condition of the calendars in both houses create an
2-18     emergency and an imperative public necessity that the
2-19     constitutional rule requiring bills to be read on three several
2-20     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 139 passed the Senate on
         April 9, 1999, by a viva-voce vote; and that the Senate concurred
         in House amendment on May 25, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 139 passed the House, with
         amendment, on May 22, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor