By:  Lucio                                            S.B. No. 1610
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to insurance credit for 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.  Art. 5.33, Insurance Code, is amended by amending
 1-5     the Art. to read as follows:
 1-6     Art. 5.33. Reducing Hazard
 1-7           The Board shall have full authority and power to give each
 1-8     city, town, village, political subdivision or locality credit for
 1-9     each and every hazard they may reduce or entirely remove, and also
1-10     for all added fire fighting equipment, increased police protection,
1-11     or any other equipment or improvement that has a tendency to reduce
1-12     the fire hazard of any such city, town, village or locality, and
1-13     also to give credit for a good fire record made by any city, town,
1-14     village or locality.  Said Board shall also have the power and
1-15     authority to compel any company to give any or all policy holders
1-16     credit for any and all hazards said policy holder or holders may
1-17     reduce or remove.  For the purposes of this Article, the
1-18     installation of a new standard fire hydrant approved by the State
1-19     Board of Insurance within the required distance of a risk as
1-20     prescribed by the State Board of Insurance or the use of compressed
1-21     air foam technology in fire fighting equipment shall constitute a
1-22     reduction in hazard by the policy holder or holders.  Said credit
 2-1     shall be in proportion to such reduction or removal of such hazard
 2-2     and said company or companies shall return to such policy holder or
 2-3     holders such proportional part of the unearned premium charged for
 2-4     such hazard that may be reduced or removed.
 2-5           SECTION 2.  TRANSITION PROVISION.  The changes in law made by
 2-6     Section 1 of this Act in the qualifications of, and the
 2-7     prohibitions applying to, members of the State Board of Insurance
 2-8     do not affect the entitlement of a member serving on the board
 2-9     immediately before the effective date of this Act to continue to
2-10     carry out the board's functions for the remainder of the member's
2-11     term.  The changes in law apply only to a member appointed on or
2-12     after the effective date of this Act.  This Act does not prohibit a
2-13     person who is a member of the board on the effective date of this
2-14     Act from being reappointed to the board if the person has the
2-15     qualifications required for a member under Art. 5.33, Insurance
2-16     Code, as amended by this Act.
2-17           SECTION 3.  EMERGENCY.  The importance of this legislation
2-18     and the crowded condition of the calendars in both houses create an
2-19     emergency and an imperative public necessity that the
2-20     constitutional rule requiring bills to be read on three several
2-21     days in each house be suspended, and this rule is hereby suspended,
2-22     and that this Act take effect and be in force from and after its
2-23     passage, and it is so enacted.