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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of assets of the Texas Windstorm Insurance |
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Association. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 2210.452. ESTABLISHMENT AND USE OF TRUST |
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FUND. (a) The commissioner shall adopt rules under which the |
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association makes payments to the catastrophe reserve trust fund. |
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The trust fund may be used only to fund the obligations of the |
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trust fund under Subchapter B-1. |
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(b) All money, including investment income, deposited in |
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the trust fund constitutes state funds until disbursed as provided |
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by this chapter and commissioner rules. The comptroller shall hold |
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the money outside the state treasury on behalf of, and with legal |
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title in, the department. The department shall keep and maintain |
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the trust fund in accordance with this chapter and commissioner |
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rules. The comptroller, as custodian of the trust fund, shall |
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administer the trust fund strictly and solely as provided by this |
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chapter and commissioner rules. |
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(c) At the end of each calendar year or policy year, the |
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association shall use the calendar year net gain from operations of |
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the association, including all premium and other revenue of the |
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association in excess of incurred losses, including loss adjustment |
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expenses, operating expenses, public security obligations, and |
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public security administrative expenses incurred in that calendar |
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year, to make payments to the trust fund, to procure reinsurance, or |
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to make payments to the trust fund and to procure reinsurance. |
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(d) The commissioner by rule shall establish the procedure |
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relating to the disbursement of money from the trust fund to |
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policyholders in the event of an occurrence or series of |
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occurrences within a catastrophe area that results in a |
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disbursement under Subchapter B-1. |
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(e) The trust fund may be terminated only by law. On |
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termination of the trust fund, all assets of the trust fund revert |
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to the state to provide funding for the mitigation and preparedness |
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plan established under Section 2210.454. |
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SECTION 2. 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 September 1, 2013. |