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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation and funding of the Texas Windstorm |
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Insurance Association; transfer of state revenue to the Catastrophe |
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Reserve Trust Fund for excess losses caused by natural disasters. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. APPROPRIATIONS FOR EXCESS LOSSES CAUSED BY |
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NATURAL DISASTERS TO BE TRANSFERRED TO THE CATASTROPHE RESERVE |
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TRUST FUND. Pursuant to Section 2210.058, Insurance Code, in the |
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event of an occurrence or series of occurrences of natural |
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disasters in a catastrophe area that occur after the effective date |
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of this Act during the state fiscal biennium that began September 1, |
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2007 and the state fiscal biennium that ends August 31, 2011 that |
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results in insured losses and operating expenses of the Texas |
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Windstorm Insurance Association in excess of premium and other |
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revenue of the association, the excess losses shall be paid from |
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amounts appropriated out of the economic stabilization fund. |
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SECTION 2. AMOUNTS TO BE PAID INTO THE CATASTROPHE RESERVE |
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TRUST FUND; ADDITIONAL LEGISLATIVE BUDGET BOARD APPROVAL. In the |
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event that the conditions of Section 1 of this Act are established, |
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there shall be an additional approval by the Legislative Budget |
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Board, to transfer some or all of the appropriated funds from the |
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economic stabilization fund into the Catastrophe Reserve Trust |
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Fund, created in Subchapter J, Chapter 2210, Insurance Code. |
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SECTION 3. REQUIRED VOTE FOR ECONOMIC STABILIZATION FUND |
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APPROPRIATIONS. This Act takes effect only if this Act receives a |
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two-thirds vote of the members present in each house as required by |
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Section 49-g, Article III, Texas Constitution. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect on the 91st day after the last day of the |
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legislative session. |