SRC-LBB S.B. 463 78(R)BILL ANALYSIS


Senate Research CenterS.B. 463
By: Janek
State Affairs
7/8/2003
Enrolled


DIGEST AND PURPOSE 

Current law allows a property owner with a structure built before 1991 and
located inside a Federal Coastal Barrier Resource Zone to purchase wind
insurance through the Texas Windstorm Insurance Association.  S.B. 463
deletes statutory language which prohibits coastal structures, other than
a condominium, apartment, duplex, other multifamily residence, hotel or
resort facility, for which construction commenced after July 1, 1991, from
being considered insurable property. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 3(f), Article 21.49, Insurance Code, to
authorize repairs to be completed in a manner that returns the structure
to its condition immediately before the loss without affecting the
eligibility of the structure to qualify as insurable property, if repair
of damage to a structure is based on a direct loss and claim, the amount
of which is equal to less than five percent of the amount of total
property coverage on the structure.  Provides an exception. 

SECTION 2.  Amends Subsection (h)(9), Section 8, Article 2149, Insurance
Code, to remove the provision relating to the expiration of this
subdivision. 

SECTION 3.  Makes application of this Act prospective.

SECTION 4.  Effective date:  upon passage or September 1, 2003.