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By:  Janek, et al.                                                S.B. No. 463


A BILL TO BE ENTITLED

AN ACT

relating to structures that constitute insurable property under the 
Texas Windstorm Insurance Association.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (f), Section 3, Article 21.49, 
Insurance Code, is amended to read as follows:
	(f)  "Insurable Property" means immovable property at fixed 
locations in a catastrophe area or corporeal movable property 
located therein (as may be designated in the plan of operation) 
which property is determined by the Association, pursuant to the 
criteria specified in the plan of operation to be in an insurable 
condition against windstorm, hail and/or fire and explosion as 
appropriate, as determined by normal underwriting standards; 
provided, however, that insofar as windstorm and hail insurance is 
concerned, any structure located within a catastrophe area, 
commenced on or after the 30th day following the publication of the 
plan of operation, not built or continuing in compliance with 
building specifications set forth in the plan of operation shall 
not be an insurable risk under this Act except as otherwise provided 
under this Act.  A structure, or an addition thereto, which is 
constructed in conformity with plans and specifications that comply 
with the specifications set forth in the plan of operation at the 
time construction commences shall not be declared ineligible for 
windstorm and hail insurance as a result of subsequent changes in 
the building specifications set forth in the plan of operation.  
When repair of damage to a structure involves replacement of items 
covered in the building specifications as set forth in the plan of 
operation, such repairs must be completed in a manner to comply with 
such specifications for the structure to continue within the 
definition of Insurable Property for windstorm and hail insurance.  
Nothing in this Act shall preclude special rating of individual 
risks as may be provided in the plan of operation.  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 [construction has 
commenced on or after July 1, 1991 shall not be considered] 
insurable property.
	SECTION 2.  Article 21.49, Insurance Code, as amended by 
this Act, applies only to an insurance policy delivered or issued 
for delivery by the Texas Windstorm Insurance Association on or 
after the effective date of this Act.  A policy delivered or issued 
for delivery before the effective date of this Act is governed by 
the law as it existed immediately before the effective date of this 
Act, and that law is continued in effect for that purpose.
	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.