Amend CSSB 14 by inserting a new ARTICLE in the bill, 
appropriately numbered, to read as follows and renumbering the 
subsequent ARTICLES of the bill appropriately:
ARTICLE ____. WINDSTORM INSURANCE
SECTION __.01. Section 3(f), Article 21.49, Insurance Code, is amended to read as follows: (f) "Insurable Property" means immovable property at fixed locations in a catastrophe area or corporeal movable property located therein (as may be designated in the plan of operation) which property is determined by the Association, pursuant to the criteria specified in the plan of operation to be in an insurable condition against windstorm, hail and/or fire and explosion as appropriate, as determined by normal underwriting standards; provided, however, that insofar as windstorm and hail insurance is concerned, any structure located within a catastrophe area, commenced on or after the 30th day following the publication of the plan of operation, not built or continuing in compliance with any requirements [building specifications] set forth in the plan of operation shall not be an insurable risk under this Act except as otherwise provided under this Act. A structure, or an addition thereto, which is constructed in conformity with plans [and specifications] that comply with the requirements [specifications] set forth in the plan of operation at the time construction commences shall not be declared ineligible for windstorm and hail insurance as a result of subsequent changes [in the building specifications] set forth in the plan of operation. When repair of damage to a structure involves replacement of items covered in requirements [the building specifications as] set forth in the plan of operation, such repairs must be completed in a manner to comply with those requirements [such specifications] for the structure to continue within the definition of Insurable Property for windstorm and hail insurance. Nothing in this Act shall preclude special rating of individual risks as may be provided in the plan of operation. For purposes of this Act, all structures, other than a condominium, apartment, duplex, or other multifamily residence, or a hotel or resort facility, which are located within those areas designated as units under the federal Coastal Barrier Resources Act (Public Law 97-348) and for which a building permit or plat has been filed with the municipality, county, or the United States Army Corps of Engineers before the effective date of Senate Bill 14, Acts of the 78th Legislature, Regular Session, 2003, are [construction has commenced on or after July 1, 1991 shall not be considered] insurable property. SECTION __.02. Section 5, Article 21.49, Insurance Code, is amended by adding Subsection (l) to read as follows: (l) After January 1, 2004, for geographic areas specified by the commissioner, the commissioner by rule may supplement the building specifications in the plan of operation with the structural provisions of the International Residential Code for one- and two-family dwellings, as published by the International Code Council, or by an analogous entity recognized by the department. For those specified geographic areas, the commissioner by rule may adopt subsequent editions of that code and may adopt any supplements published by the International Code Council and amendments to that code. SECTION __.03. Section 6A, Article 21.49, Insurance Code, is amended by amending Subsections (a), (d), (h), (j), and (k) and adding Subsections (j-1) and (k-1) to read as follows: (a) Except as otherwise provided by this Subsection, all structures that are constructed or repaired or to which additions are made on or after January 1, 1988, to be considered insurable property for windstorm and hail insurance from the Association, must be inspected or approved by the Board for compliance with [the building specifications in] the plan of operation. After January 1, 2004 [2002], for [in] geographic areas specified by the commissioner, the commissioner by rule shall adopt [may supplement the building specifications in the plan of operation with the structural provisions of] the 2003 International Residential Code for one- and two-family dwellings published by the International Code Council. For those geographic areas, the commissioner by rule may adopt a subsequent edition of that code and may adopt any supplements published by the International Code Council and amendments to the code. [Roofing materials satisfy the building specifications in the plan of operation if those materials pass the UL Standard 997 or a comparable test certified by the Board and are installed as required by the Board to promote the wind resistance of the materials.] A structure constructed, repaired, or to which additions were made before January 1, 1988, that is located in an area covered at the time by a building code recognized by the Association shall be considered an insurable property for windstorm and hail insurance from the Association without compliance with the inspection or approval requirements of this Section or the plan of operation. A structure constructed, repaired, or to which additions were made before January 1, 1988, that is located in an area not covered by a building code recognized by the Association shall be considered an insurable property for windstorm and hail insurance from the Association without compliance with the inspection or approval requirements of this Section or the plan of operation if that structure has been previously insured by a licensed insurance company authorized to do business in this State and the risk is in essentially the same condition as when previously insured, except for normal wear and tear, and without any structural change other than a change made according to code. Evidence of previous insurance includes a copy of a previous policy, copies of canceled checks or agent's records that show payments for previous policies, and a copy of the title to the structure or mortgage company records that show previous policies. After January 1, 2004 [2002], a person must submit a notice of a [an application for] windstorm inspection to the unit responsible for certification of windstorm inspections [inspection] at the department before beginning to construct, alter, remodel, enlarge, or repair a structure. [Failure to submit a timely application may result in a certificate of compliance not being issued unless plans and calculations, testing information, manufacturer's installation instructions, or any other documentation required by the commissioner is submitted to the unit responsible for windstorm inspection at the department as may be requested in order to fulfill the requirements of this section. The Board may appoint or employ qualified inspectors as defined in this Section to perform any inspections required by this Section.] (d) A windstorm inspection may only be performed by a qualified inspector. For purposes of this article, a "qualified inspector" includes: (1) a person determined by the Board to be qualified to perform building inspections because of training or experience; (2) a licensed professional engineer meeting the requirements of the rules adopted by the commissioner for appointment to conduct windstorm inspections; and (3) an inspector who is certified by the International Code Council, the Building Officials and Code Administrators International, Inc., the International Conference of Building Officials, or the Southern Building Code Congress International, Inc., who has certifications as a buildings inspector and coastal construction inspector, and who also complies with other requirements specified by rule by the commissioner. A qualified inspector must be approved and appointed or employed by the department [Board] to perform building inspections. The department [Board] may charge a reasonable fee [not to exceed $200] for the filing of applications and determining the qualifications of persons for appointment as qualified inspectors. (h) The department [Board] may charge a reasonable fee to cover the cost of making building requirements [specifications] and inspection standards available to the public. (j) After notice and hearing, the department [Board] may cancel or revoke an appointment [or authorization] made[, issued, or existing] under this Section if the holder [or possessor] of the appointment [or authorization] is found to be in violation of, or to have failed to comply with, specific provisions of this Section or any rule or regulation of the commissioner [Board] made under this Section. In lieu of cancellation or revocation, the commissioner [Board] may order one or more of the following sanctions, if the commissioner [it] determines from the facts that it would be fair, reasonable, or equitable: (1) suspending the [authorization or] appointment for a specific period, not to exceed one year; (2) an order directing the holder [or possessor] of the [authorization or] appointment to cease and desist from the specified activity determined to be in violation of specific provisions of this Section or rules and regulations of the commissioner [Board] made pursuant to this Section or from failing to comply with those provisions of this Section or the rules and regulations promulgated under this Section; or (3) if the appointed person [authorized or appointed] is found by the commissioner [Board] to have knowingly, wilfully, fraudulently, or with gross negligence signed or caused to be prepared an inspection report that contains a false, fictitious, or fraudulent statement or entry, directing the appointed person [holder or possessor of the authorization or appointment] to remit within a specified time, not to exceed 60 days, a specified monetary forfeiture not to exceed $5,000 for the violation or failure to comply. (j-1) If an appointed person is an engineer licensed by the Texas Board of Professional Engineers who is found by the department to have knowingly, wilfully, fraudulently, or with gross negligence signed or caused to be prepared an inspection report that contains a false or fraudulent statement or entry, the commissioner may take action against the appointed person in the manner provided by Subsection (j) of this Section, but may not levy any monetary fine against an appointed person who is a licensed engineer. (k) A monetary forfeiture paid as a result of an order issued under Subsection (j)(3) of this Section shall be deposited to the credit of the general revenue fund. If it is found after hearing that any appointed person [holder or possessor] has failed to comply with an order issued under Subsection (j) of this Section, the department [Board] shall, unless the [its] order is lawfully stayed, cancel the [authorization or] appointment of the person [holder or possessor]. The department [Board] may informally dispose of any matter under Subsection (j) of this Section by consent order or default. (k-1) The commissioner shall notify the Texas Board of Professional Engineers of each order issued by the commissioner against an appointed person who is an engineer licensed by the Texas Board of Professional Engineers, including an order suspending, canceling, or revoking the appointment of that person. SECTION __.04. Sections 6C(b), (f), (g), (h), (k), (l), and (m), Article 21.49, Insurance Code, are amended to read as follows: (b) The Windstorm Building Code Advisory Committee on Specifications and Maintenance is established as an advisory committee to the commissioner to advise and make recommendations to the commissioner on building requirements [specifications] and maintenance in the plan of operation. (f) The advisory committee shall analyze and make recommendations for changes regarding procedures described under Section 5(d) of this article that are [building specifications] adopted by the commissioner in the plan of operation. In making recommendations, the advisory committee shall [consider technological developments in building products and windstorm research and shall] seek to balance the concerns of all affected parties, including consumers, builders, and the Association. (g) Each proposal for a change in an applicable procedure [building specification] must be submitted to the commissioner. Each proposal must be submitted separately in writing and must contain: (1) the name, mailing address, and telephone number of the proponent, or, if the proponent is a group or organization, the name of the group or organization and the mailing address and telephone number of the group or organization; (2) a citation of any applicable statute or rule [the building code section regarding that specification, as published in the latest edition of that code]; (3) the text of the proposed change, with deletions from current [code] language struck through with a single line and new language underlined; and (4) a statement of the purpose of the proposed change, with supporting written or printed information. (h) The commissioner by rule shall adopt a form to be used by a person in presenting a proposal for a change in an applicable procedure [building specification] to the commissioner. (k) At an advisory committee meeting, any interested person may present the person's views on a proposal for a change in an applicable procedure [building specification] that is included on the advisory committee's published agenda. The advisory committee shall consider each comment presented in its action on the disposition of each proposal. (l) After consideration of a proposal for a change in an applicable procedure [building specification], the advisory committee by vote shall: (1) recommend adoption of the proposal as initially submitted; (2) recommend adoption of the proposal with modifications; (3) recommend rejection of the proposal; or (4) suspend consideration of the proposal and request additional evaluation and study of the proposal. (m) The advisory committee shall submit its recommendation on each proposal to the commissioner. The commissioner shall notify the advisory committee of the acceptance or rejection of each recommendation not later than the 30th day after the date of receipt by the commissioner. Acceptance of a recommendation by the commissioner means that the commissioner will consider adoption of that recommendation at a rulemaking hearing. Before adopting a recommendation, the commissioner must determine that the proposal, if adopted, will not weaken the integrity or diminish the effectiveness of a procedure [building specification]. [The commissioner by rule may adopt a recommendation of the advisory committee by amending the plan of operation and, in amending the plan, may adopt a specification by reference.] SECTION __.05. Article 21.49, Insurance Code, is amended by adding Section 6D to read as follows: Sec. 6D. APPOINTMENT OF ENGINEERS; RULES. (a) The commissioner, on the request of an engineer licensed by the Texas Board of Professional Engineers, shall appoint the engineer under this article not later than the 10th day after the date of the engineer's delivery to the commissioner of information demonstrating that the engineer is qualified to perform windstorm inspections under this article. (b) The commissioner shall adopt rules to determine the information the commissioner will consider in appointing engineers under Subsection (a) of this section. SECTION __.06. Sections 6A(c) and (e), Article 21.49, Insurance Code, are repealed. SECTION __.076. Article 21.49, Insurance Code, as amended by this article, applies only to a policy of windstorm or hail insurance that is delivered, issued for delivery, or renewed after January 1, 2004. A policy that is delivered, issued for delivery, or renewed on or before January 1, 2004, is governed by the law as it existed immediately before the effective date of this article, and that law is continued in effect for that purpose. SECTION __.08. This article takes effect January 1, 2004.