AN ACT
 1-1     relating to insurance credit for the use of compressed air foam
 1-2     technology in fire-fighting equipment.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Article 5.33, Insurance Code, is amended to read
 1-5     as follows:
 1-6           Art. 5.33.  CREDIT FOR REDUCING HAZARD.  (a)  The
 1-7     commissioner may [Board shall have full authority and power to]
 1-8     give each city, town, village, [or] locality, or other political
 1-9     subdivision credit for each and every hazard they may reduce or
1-10     entirely remove, and also for all added fire fighting equipment,
1-11     increased police protection, or any other equipment or improvement
1-12     that has a tendency to reduce the fire hazard of any such city,
1-13     town, village, [or] locality, or other political subdivision, and
1-14     also to give credit for a good fire record made by any city, town,
1-15     village, [or] locality, or other political subdivision.
1-16           (b)  The commissioner may [Said Board shall] also [have the
1-17     power and authority to] compel any company to give any or all
1-18     policy holders credit for any and all hazards said policy holder or
1-19     holders may reduce or remove.
1-20           (c)  For the purposes of this Article, the installation of a
1-21     new standard fire hydrant approved by the department [State Board
1-22     of Insurance] within the required distance of a risk, as prescribed
1-23     by the department, or the use of compressed air foam technology in
1-24     fire-fighting equipment [State Board of Insurance] shall constitute
 2-1     a reduction in hazard by the policy holder or holders.
 2-2           (d)  Said credit shall be in proportion to such reduction or
 2-3     removal of such hazard and said company or companies shall return
 2-4     to such policy holder or holders such proportional part of the
 2-5     unearned premium charged for such hazard that may be reduced or
 2-6     removed.
 2-7           SECTION 2.  Article 5.33, Insurance Code, as amended by this
 2-8     Act, applies only to an insurance policy delivered, issued for
 2-9     delivery, or renewed on or after January 1, 2000.  A policy
2-10     delivered, issued for delivery, or renewed before January 1, 2000,
2-11     is governed by the law as it existed immediately before the
2-12     effective date of this Act, and that law is continued in effect for
2-13     that purpose.
2-14           SECTION 3.  This Act takes effect September 1, 1999.
2-15           SECTION 4.  The importance of this legislation and the
2-16     crowded condition of the calendars in both houses create an
2-17     emergency and an imperative public necessity that the
2-18     constitutional rule requiring bills to be read on three several
2-19     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. 1610 passed the Senate on
         April 14, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1610 passed the House on
         May 25, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor