C.S.H.B. 986 78(R)           BILL ANALYSIS


C.S.H.B. 986
By: Ritter
Insurance
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The 77th Legislature passed SB 365, which adopted the International
Residential Code (IRC) as the residential building code in all Texas
municipalities. Further, SB 365 called for the Commissioner of Insurance
(Commissioner) to supplement the building specifications in the plan of
operation for the Texas Windstorm Insurance Association (TWIA) with the
IRC.  During the interim of the 77th session, the Commissioner adopted the
IRC and three Texas revisions as the building specifications in the
defined coastal areas.  C.S.H.B. 986 codifies the adoption of the IRC and
sets forth procedures relating to the appointment of windstorm inspectors.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Commissioner of Insurance in SECTION 2 (Article 21.49,
Insurance Code) and SECTION 4 (Article 21.49, Insurance Code) of this
bill. 

ANALYSIS

C.S.H.B. 986 amends the Insurance Code to require the Commissioner of
Insurance to adopt the 2003 International Residential Code for one- and
two- family dwellings published by the International Code Council for
geographic areas specified by the Commissioner.  The Commissioner is
required to adopt the 2003 International Residential Code after January 1,
2004.  The bill authorizes the Commissioner to adopt a subsequent edition
of that code and any supplements and amendments, for those specified
geographic areas.   

The bill sets forth requirements relating to the appointment by the
Commissioner of engineers to perform windstorm inspections for the Texas
Windstorm Insurance Association and requires the Commissioner to adopt
rules relating to the appointment of engineers.   

The bill deletes the upper limit of $200 on fees for filing applications
and for determining qualifications of a person for appointment as a
qualified windstorm inspector.  The bill authorizes the performance of
windstorm inspections by qualified inspectors only.   

The bill authorizes the Commissioner take action against an appointed
person who is a licensed engineer for an inspection report with false or
fraudulent entries.  The bill requires the Commissioner to provide notice
to the Texas Board of Professional Engineers regarding each order issued
against an appointed engineer who is licensed.  The bill prohibits the
Commissioner from levying any monetary fine against an appointed windstorm
inspector who is a licensed engineer.  

The bill repeals Sections 6A(c) and (e), Article 21.49, Insurance.

EFFECTIVE DATE

September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 986 modifies the original by providing for the appointment by the
Commissioner of windstorm inspectors, rather than providing for the
registration of inspectors.  The substitute  authorizes the Commissioner
to take action against an appointed, licensed engineer for inspection
reports with false or fraudulent entries.  The substitute adds provisions
relating to notices regarding orders against appointed, licensed
engineers.  The substitute restores the ability of the Department of
Insurance to charge a fee for filing of applications and determining the
qualifications of persons for appointment as qualified windstorm
inspectors and removes the $200 upper limit on such a fee.