81R1806 SJM-D

By: Gallegos S.B. No. 665

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a windstorm preparedness assistance program that provides financial assistance for certain homeowners in certain counties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 2, Insurance Code, is amended by adding Subtitle C to read as follows:

SUBTITLE C. DEPARTMENT PROGRAMS

CHAPTER 151. WINDSTORM PREPAREDNESS ASSISTANCE PROGRAM

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 151.001. DEFINITIONS. In this chapter:

(1) "Home" means:

(A) a site-built, single-family, owner-occupied dwelling; or

(B) a single-family, owner-occupied manufactured home that is real property under Section 2.001, Property Code.

(2) "Program" means the Windstorm Preparedness Assistance Program.

(3) "Retrofit" means to renovate, or the renovation of, an existing home by adding physical enhancements designed to make the home more resistant to damage from a windstorm. The term does not include the initial construction or manufacture of the home.

Sec. 151.002. NOT AN ENTITLEMENT; NO STATE OBLIGATION. This chapter does not:

(1) establish a homeowner's entitlement to financial assistance for windstorm damage mitigation; or

(2) obligate the state to fund the inspection or retrofitting of homes in this state.

[Sections 151.003-151.050 reserved for expansion]

SUBCHAPTER B. ADMINISTRATION OF PROGRAM

Sec. 151.051. ESTABLISHMENT OF PROGRAM. The department shall establish the Windstorm Preparedness Assistance Program to provide a comprehensive and coordinated approach for hurricane damage mitigation. The program, subject to available appropriations, must provide:

(1) a home inspection, at no cost for qualified homeowners, and an inspection report that summarizes the results of the inspection and identifies recommended improvements a homeowner may take to mitigate hurricane damage; and

(2) grant money or a low-interest loan to a qualified homeowner to implement a retrofit recommended by an inspector.

Sec. 151.052. DEPARTMENT DUTIES; RULES. (a) The department shall provide fiscal accountability, contract management, and strategic leadership for the program, consistent with this chapter.

(b) The commissioner shall adopt rules as necessary to implement this chapter.

Sec. 151.053. APPLICATION FOR PARTICIPATION IN PROGRAM. (a) To be considered for participation in the program a homeowner must submit an application to the department on the form prescribed by the department. The application must include a sworn statement that the applicant has submitted only one application for that home.

(b) The department by rule shall establish eligibility criteria for participation in the program that are consistent with the requirements of this chapter. Based on the criteria and the submitted application, the department shall determine whether a homeowner is qualified to participate in the program.

(c) The department shall establish objective, reasonable criteria for prioritizing applications that are consistent with the requirements of this chapter. Unless a homeowner states otherwise in an application, the department shall presume that a homeowner prefers a grant over a loan.

(d) A homeowner may apply for and receive a windstorm mitigation inspection without applying for a grant or loan under this chapter.

(e) The department shall develop a process that ensures the most efficient means to collect and verify applications and to determine the eligibility of the applicants. The department may use the Internet or other electronic means to collect and verify application information and determine eligibility.

Sec. 151.054. WINDSTORM MITIGATION INSPECTION. (a) A qualified inspector shall conduct a windstorm mitigation inspection in accordance with:

(1) the inspection requirements for insurability under Section 2210.251; or

(2) similar standards specified by commissioner rule.

(b) Not later than the 30th day after the date a windstorm mitigation inspection is conducted, an inspector shall submit to the department and to the homeowner a written inspection report. The inspection report must contain:

(1) the name of the inspector;

(2) the name of the homeowner;

(3) the date of inspection;

(4) a list of recommended retrofits and necessary mitigation measures to reduce the home's vulnerability to hurricane damage;

(5) a range of cost estimates regarding each recommended retrofit and mitigation measure;

(6) insurer-specific information regarding available insurance premium discounts correlated with:

(A) specific features of the home as inspected; and

(B) specific retrofits and mitigation measures recommended by the inspector; and

(7) an assessment of the home's windstorm resistance capabilities:

(A) as inspected; and

(B) if retrofitted and improved in accordance with the inspector's recommendations.

Sec. 151.055. QUALIFIED INSPECTORS; INSPECTOR LIST. (a) A windstorm mitigation inspection conducted under this chapter must be conducted by a person who:

(1) is a qualified inspector under Section 2210.254; or

(2) meets similar qualifications specified by commissioner rule.

(b) The department shall maintain and make available to the public a current list of inspectors in this state who are qualified to conduct windstorm mitigation inspections under this chapter.

Sec. 151.056. ELIGIBILITY FOR INSPECTION AT NO COST. To be eligible for a windstorm mitigation inspection at no cost under the program, a homeowner must demonstrate that:

(1) the property to be inspected is a home;

(2) the homeowner has been granted a residence homestead exemption under Section 11.13, Tax Code, for the property to be inspected;

(3) the property to be inspected has an insured value of $300,000 or less; and

(4) the property to be inspected is located in a seacoast territory as defined by Section 2210.003.

Sec. 151.057. LOAN FOR RETROFITTING. (a) The department shall implement a low-interest loan program to pay for recommended retrofits and necessary mitigation measures identified in a windstorm mitigation inspection report. The department must use not less than 30 percent of the money appropriated for the program to subsidize low-interest loans from a private financial institution chartered by this state or the federal government for retrofitting a qualified homeowner's home.

(b) A homeowner may use loan money awarded under this chapter only to implement on the homeowner's home a retrofit or necessary mitigation measure recommended by a qualified inspector in a windstorm mitigation inspection report provided to the homeowner under this chapter.

(c) To be eligible for a loan under this chapter, a homeowner must demonstrate that the home has undergone a windstorm mitigation inspection under this chapter.

Sec. 151.058. GRANT FOR RETROFITTING. (a) The department shall implement a grant program to pay for recommended retrofits and necessary mitigation measures identified in a windstorm mitigation inspection report. The department must use not less than 30 percent of the money appropriated for the program to award grants to qualified homeowners.

(b) A homeowner receiving a grant must contribute an amount equal to the amount of the grant money awarded by the department on a dollar-for-dollar basis. The total amount of the grant and homeowner contribution may not exceed $10,000, and the amount of the department's grant may not exceed $5,000.

(c) A homeowner may use grant money awarded under this chapter only to implement on the homeowner's home a retrofit or mitigation measure recommended by a qualified inspector in a windstorm mitigation inspection report provided to the homeowner under this chapter.

(d) To be eligible for a grant under this chapter, a homeowner must demonstrate that the home has undergone a windstorm mitigation inspection under this chapter.

(e) It is the intent of the legislature that grant money awarded under this chapter constitutes a disaster relief payment for purposes of Section 139, Internal Revenue Code of 1986.

Sec. 151.059. CONTRACTORS; CONTRACTOR LIST. (a) The department shall publicize the program to contractors and provide incentives for contractors to participate in the program.

(b) To participate in the program, a contractor:

(1) must secure all required local building permits;

(2) must not have been subject to disciplinary action by a state regulatory agency for the five years preceding the date on which the contractor enters the program as a participating contractor; and

(3) must meet any other qualifications required by commissioner rule.

(c) The department shall maintain and make available to the public a current list of participating contractors from which a homeowner who is awarded a grant or loan through the program may select a contractor for the purpose of retrofitting.

(d) To ensure the quality of participating contractors' work, the department shall conduct random inspections of the finished retrofit work of at least five percent of all retrofit projects completed under the program.

(e) A person may participate in the program as a qualified inspector and as a participating contractor if the person meets the qualifications for inspectors and contractors under this chapter.

Sec. 151.060. PUBLIC EDUCATION CAMPAIGN. The department may undertake a statewide multimedia public outreach and advertising campaign to inform consumers of:

(1) the availability of windstorm mitigation inspections and financial assistance to qualified homeowners; and

(2) the safety and financial benefits of retrofitting a home to mitigate windstorm damage.

Sec. 151.061. AUTHORITY TO CONTRACT. The department may contract with third parties for loan management and services, grant management, inspection services, contractor services, information technology, educational outreach, and auditing services as necessary to administer this chapter.

Sec. 151.062. GIFTS, GRANTS, AND DONATIONS. In addition to money appropriated to the department, the department may receive and accept a gift, grant, donation, or other thing of value from any source for the purposes of this chapter.

Sec. 151.063. REPORTING. The department annually shall submit to the legislature a written report regarding the program. The report must include:

(1) an account of the use of state money;

(2) the number of windstorm mitigation inspections requested;

(3) the number of windstorm mitigation inspections conducted;

(4) the number of applications received requesting a grant or a loan;

(5) the number and value of grants approved; and

(6) the number and value of loans approved.

SECTION 2. Not later than January 1, 2010, the commissioner of insurance shall adopt rules necessary to administer Chapter 151, Insurance Code, as added by this Act.

SECTION 3. Not later than September 1, 2010, the Texas Department of Insurance shall submit the initial report required under Section 151.063, Insurance Code, as added by this Act.

SECTION 4. 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, 2009.