S.B. 463 78(R)    BILL ANALYSIS


S.B. 463
By: Janek
Insurance
Committee Report (Unamended)



BACKGROUND 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

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1. Amends Section 3(f), Article 21.49, Insurance Code, to provide
that 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 463, Acts of the 78th Legislature, Regular Session,
2003, are insurable property. 

SECTION 2. Makes application of this Act prospective. 

SECTION 3. Effective date: upon passage or September 1, 2003. 

EFFECTIVE DATE

On passage or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.