78(R) HB 98 - Introduced version


                                                                                

78R470 MXM-D

By:  Seaman                                                       H.B. No. 98 



A BILL TO BE ENTITLED

AN ACT

relating to insurance issues regarding the use of mold, fire, and 
water resistant materials in residential building and repairs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1. The Insurance Code is amended by adding Chapter 5A 
to read as follows:

CHAPTER 5A.  BUILDING CODE SPECIFICATIONS AND MAINTENANCE

SUBCHAPTER A.  GENERAL PROVISIONS
	Art. 5A.01.  DEFINITION. In this chapter, "advisory 
committee" means the Building Code Advisory Committee on 
Specifications and Maintenance.
	Art. 5A.02.  RULES. In addition to any other rulemaking 
authority granted under this article, the commissioner may adopt 
rules as necessary to implement this chapter.

[Articles 5A.03-5A.50 reserved for expansion]

SUBCHAPTER B.  ADVISORY COMMITTEE
	Art. 5A.51.  ADVISORY COMMITTEE. The Building Code Advisory 
Committee on Specifications and Maintenance is established as an 
advisory committee to advise and make recommendations to the 
commissioner on building specifications and maintenance related to 
the use of mold, fire, and water resistant materials in residential 
building and repairs and related insurance issues.
	Art. 5A.52.  COMPOSITION. (a)  The advisory committee is 
composed of nine voting members appointed by the commissioner as 
follows:
		(1)  three members from the building industry, 
including:            
			(A)  two residential builders; and                                    
			(B)  one representative from the building supply 
industry;          
		(2)  three members from the insurance industry, 
including two full-time employees of an insurer authorized to 
engage in the business of property and casualty insurance in this 
state; and
		(3)  three public members, including one member who is 
a professional engineer licensed in this state.
	(b)  The commissioner or the commissioner's designated 
representative shall serve as an ex officio, nonvoting member of 
the advisory committee.
	Art. 5A.53.  TERMS. A voting member of the advisory 
committee serves a three-year term.
	Art. 5A.54.  MEETINGS. (a)  The advisory committee shall, at 
least two times each year, meet at the call of the presiding officer 
with the approval of the commissioner.
	(b)  The advisory committee shall publish the date and 
location of the meeting not later than the 45th day before the date 
on which the meeting is scheduled to occur.
	(c)  The commissioner or the commissioner's designee must be 
present at each meeting of the advisory committee.

[Articles 5A.55-5A.100 reserved for expansion]

SUBCHAPTER C.  PROPOSALS AND RECOMMENDATIONS REGARDING MOLD,
FIRE, AND WATER RESISTANT MATERIALS
	Art. 5A.101.  RECOMMENDATIONS. (a)  The advisory committee 
shall analyze and make recommendations for changes regarding 
building specifications adopted by the commissioner related to the 
use of mold, fire, and water resistant materials in residential 
building and repairs and related insurance issues.
	(b)  In making a recommendation, the advisory committee 
shall consider technological developments in building products and 
research and shall seek to balance the concerns of all affected 
parties, including consumers, builders, and the insurance 
industry.
	Art. 5A.102.  CONTENT OF PROPOSALS. (a)  The commissioner by 
rule shall adopt a form to be used by a person in presenting a 
proposal for a change in an applicable building specification to 
the commissioner.
	(b)  Each proposal for a change in an applicable building 
specification must be submitted to the commissioner on the form 
adopted under Subsection (a)  of this article and must contain:
		(1)  the name, mailing address, and telephone number of 
the proponent or, if the proponent is an entity, the name of the 
entity and the mailing address and telephone number of the entity;
		(2)  a citation of 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.
	Art. 5A.103.  TIMING ON PROPOSALS. (a)  Each proposal shall 
be submitted not later than the 30th day before the date of a 
scheduled advisory committee meeting.
	(b)  A proposal that does not comply with the requirements 
adopted under Article 5A.102 of this subchapter and is not 
submitted within the time specified in this article may not be 
considered at that scheduled meeting.
	Art. 5A.104.  DUTIES OF DEPARTMENT. (a)  The department 
shall review and organize each proposal submitted and shall allow 
the advisory committee and any interested party to view the 
proposal to be considered within a reasonable time before the 
advisory committee meeting.
	(b)  If requested by a majority of the advisory committee, 
the department shall make recommendations regarding each proposal 
submitted and provide to the advisory committee any necessary 
technical information.
	Art. 5A.105.  PUBLIC PARTICIPATION. (a)  At an advisory 
committee meeting, any interested person may present the person's 
views on a proposal for a change in an applicable building 
specification that is included on the advisory committee's 
published agenda.
	(b)  The advisory committee shall consider each comment 
presented in its action on the disposition of each proposal.
	Art. 5A.106.  ACTION ON PROPOSAL. (a)  After consideration 
of a proposal for a change in an applicable 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.
	(b)  The advisory committee shall submit its recommendation 
on each proposal to the commissioner.
	Art. 5A.107.  ACTION BY COMMISSIONER ON RECOMMENDATIONS. (a)  
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.
	(b)  Acceptance of a recommendation by the commissioner 
means that the commissioner will consider adoption of that 
recommendation at a rulemaking hearing.
	(c)  Before adopting a recommendation, the commissioner must 
determine that the proposal, if adopted, will not weaken the 
integrity or diminish the effectiveness of a building 
specification.
	(d)  The commissioner by rule may adopt a recommendation of 
the advisory committee.

[Articles 5A.108-5A.150 reserved for expansion]

SUBCHAPTER D.  PREMIUM DISCOUNTS FOR USE OF MOLD,
FIRE, AND WATER RESISTANT MATERIALS
	Art. 5A.151.  DEFINITION.  In this subchapter, "residential 
property insurance" means insurance coverage written by an insurer 
authorized to engage in the business of homeowners insurance, farm 
and ranch owners insurance, or fire and residential allied lines 
insurance in this state, including a fire and marine insurer, farm 
mutual insurer, county mutual insurer, Lloyd's plan, or reciprocal 
or interinsurance exchange.
	Art. 5A.152.  ESTABLISHMENT OF DISCOUNT. (a)  The 
commissioner by rule may require a premium discount for the use of a 
mold, fire, or water resistant material recommended to and adopted 
by the commissioner under Subchapter C of this chapter.
	(b)  The commissioner by rule shall establish the amount of 
the discount.
	Art. 5A.153.  PREMIUM DISCOUNT. If required under Article 
5A.152 of this subchapter, an insurer who delivers or issues for 
delivery a policy of residential property insurance in this state 
shall grant a premium discount to insure a dwelling that has a 
correctly installed mold, fire, or water resistant material 
approved by the commissioner under this chapter.
	SECTION 2.  Not later than September 1, 2003, the 
commissioner of insurance shall appoint the members of the Building 
Code Advisory Committee on Specifications and Maintenance created 
under Subchapter B, Chapter 5A, Insurance Code, as added by this 
Act.
	SECTION 3.   This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.