BILL ANALYSIS
Senate Research Center H.B. 1328
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
The section of the bill that amended the Insurance Code to prohibit an insurer from making an underwriting decision regarding a residential property insurance policy based on previous mold damage or a claim for mold damage provides that the assessor issuing the certificate of mold remediation to the property owner "must establish that the underlying cause of the mold at the property has been remediated."
H.B. 1328 corrects the contradiction by amending Article 21.21-11, Insurance Code, to make clear that an assessor must establish with reasonable certainty that the cause of mold has been remediated. H.B. 1328 also limits the number of years for which a property owner would be required to pass on the certificate of remediation to a future buyer to five years from the date the mold was remediated.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 3, Article 21.21-11, Insurance Code, to prohibit an insurer from making an underwriting decision regarding a residential property insurance policy based on previous mold damage or a claim for mold damage if the property was remediated, as evidenced by a certificate of mold remediation that establishes with reasonable certainty that the underlying cause of the mold at the property has been remediated.
SECTION 2. Amends Section 1958.154(b), Occupations Code, to require a property owner, if the property owner sells property, to provided to the buyer a copy of each certificate issued for the property under this section during the five years preceding the date the property owner sells the property.
SECTION 3. Effective date: upon passage or September 1, 2005.