By: Naishtat, Madden, Seaman H.B. No. 1328
(Senate Sponsor - Fraser)
(In the Senate - Received from the House April 7, 2005;
April 11, 2005, read first time and referred to Committee on
Business and Commerce; May 2, 2005, reported favorably by the
following vote: Yeas 9, Nays 0; May 2, 2005, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to certificates of mold remediation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 3, Article 21.21-11, Insurance Code, is
amended to read as follows:
Sec. 3. PROHIBITION. An insurer may not make an
underwriting decision regarding a residential property insurance
policy based on previous mold damage or a claim for mold damage if:
(1) the applicant for insurance coverage has property
eligible for coverage under a residential property policy;
(2) the property has had mold damage;
(3) mold remediation has been performed on the
property; and
(4) the property was:
(A) remediated, as evidenced by a certificate of
mold remediation issued to the property owner under Section
1958.154, Occupations Code, that establishes with reasonable
certainty that the underlying cause of the mold at the property has
been remediated; or
(B) inspected by an independent assessor or
adjustor who determined, based on the inspection, that the property
does not contain evidence of mold damage.
SECTION 2. Section 1958.154(b), Occupations Code, is
amended to read as follows:
(b) If a property owner sells property, the property owner
shall provide to the buyer a copy of each certificate [that has
been] issued for the property under this section during the five
years preceding the date the property owner sells the property.
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, 2005.
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