BILL ANALYSIS
By: Smith, Wayne
BACKGROUND AND PURPOSE
In first tier coastal counties certain buildings have been found to be not in compliance with construction guidelines for those areas during evaluations of losses resulting from a windstorm. The faulty design or construction of these structures results in losses from a windstorm in those areas that is higher than expected creating an undue burden for Insurers, the Texas Windstorm Insurance Association and Texas' citizens living and working in those areas. H.B. 1372 will encourage a level of compliance and self regulation by establishing whether unacceptable loss was a direct result of faulty design or construction.
Currently, permits are required to be submitted to ensure each permit is based on an original design as required. H.B. 1372 requires calculations to be submitted with no requirement for review. In the case that a disaster should occur there will be records available for review.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Commissioner of Insurance and the Texas Board of Professional Engineers in SECTION 3 (Texas Insurance) of this bill.
ANALYSIS
H.B. 1372 in SECTION 1 seeks to amend Subchapter A, Chapter 2210 of the Texas Insurance Code by adding Section 2210.0041 which discusses engineering computations. This section states that professional engineers providing services in a first tier coastal county shall submit copies of all computations developed in conjunction with a project to the department. The department shall maintain the information submitted until the expiration of the limitations period under Section 16.008, Civil Practice and Remedies Code. The Texas Board of Professional Engineers shall cooperate with the implementation and enforcement of this section, adopt rules and post information on the board's Internet website to inform engineers of the requirements of this section. Failure by an engineer to comply with Subsection (b) constitutes grounds for disciplinary action under Subchapter J, Chapter 1001, Occupations Code.
Next, in SECTION 2, H.B. 1372 states that an engineer is not required to comply with Section 2210.0041 of the Texas Insurance Code, as added by this Act, until January 1, 2008.
Finally, SECTION 3 states that the Commissioner of Insurance and the Texas Board of Professional Engineers shall adopt rules and post information not later than December 1, 2007.
EFFECTIVE DATE
September 1, 2007.