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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.