1-1     By:  Lucio                                            S.B. No. 1610
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 9, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 5, Nays 0;
 1-6     April 9, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1610                   By:  Nixon
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to insurance credit for the use of compressed air foam
1-11     technology in fire-fighting equipment.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Article 5.33, Insurance Code, is amended to read
1-14     as follows:
1-15           Art. 5.33.  CREDIT FOR REDUCING HAZARD.  (a)  The
1-16     commissioner may [Board shall have full authority and power to]
1-17     give each city, town, village, [or] locality, or other political
1-18     subdivision credit for each and every hazard they may reduce or
1-19     entirely remove, and also for all added fire fighting equipment,
1-20     increased police protection, or any other equipment or improvement
1-21     that has a tendency to reduce the fire hazard of any such city,
1-22     town, village, [or] locality, or other political subdivision, and
1-23     also to give credit for a good fire record made by any city, town,
1-24     village, [or] locality, or other political subdivision.
1-25           (b)  The commissioner may [Said Board shall] also [have the
1-26     power and authority to] compel any company to give any or all
1-27     policy holders credit for any and all hazards said policy holder or
1-28     holders may reduce or remove.
1-29           (c)  For the purposes of this Article, the installation of a
1-30     new standard fire hydrant approved by the department [State Board
1-31     of Insurance] within the required distance of a risk, as prescribed
1-32     by the department, or the use of compressed air foam technology in
1-33     fire-fighting equipment [State Board of Insurance] shall constitute
1-34     a reduction in hazard by the policy holder or holders.
1-35           (d)  Said credit shall be in proportion to such reduction or
1-36     removal of such hazard and said company or companies shall return
1-37     to such policy holder or holders such proportional part of the
1-38     unearned premium charged for such hazard that may be reduced or
1-39     removed.
1-40           SECTION 2.  Article 5.33, Insurance Code, as amended by this
1-41     Act, applies only to an insurance policy delivered, issued for
1-42     delivery, or renewed on or after January 1, 2000.  A policy
1-43     delivered, issued for delivery, or renewed before January 1, 2000,
1-44     is governed by the law as it existed immediately before the
1-45     effective date of this Act, and that law is continued in effect for
1-46     that purpose.
1-47           SECTION 3.  This Act takes effect September 1, 1999.
1-48           SECTION 4.  The importance of this legislation and the
1-49     crowded condition of the calendars in both houses create an
1-50     emergency and an imperative public necessity that the
1-51     constitutional rule requiring bills to be read on three several
1-52     days in each house be suspended, and this rule is hereby suspended.
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