By: Taylor, et al. S.B. No. 1702
 
  (Bonnen of Brazoria)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to residential property insured by the Texas Windstorm
  Insurance Association.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (f), Section 2210.251, Insurance
  Code, is amended to read as follows:
         (f)  Notwithstanding any other provision of this section,
  insurance coverage for a residential structure [insured by the
  association as of September 1, 2009,] may be obtained or continued 
  [continue coverage] through the association subject to the
  inspection requirements imposed under Section 2210.258, if
  applicable.
         SECTION 2.  Section 2210.258, Insurance Code, is amended to
  read as follows:
         Sec. 2210.258.  [MANDATORY] COMPLIANCE WITH BUILDING CODES;
  ELIGIBILITY. (a)  Except as provided by Subsection (c) and
  notwithstanding [Notwithstanding] any other provision of this
  chapter, to be eligible for insurance through the association, all
  construction, alteration, remodeling, enlargement, and repair of,
  or addition to, any structure located in the catastrophe area that
  is begun on or after the effective date of Sections 5 through 49,
  H.B. No. 4409, Acts of the 81st Legislature, Regular Session, 2009,
  must be performed in compliance with the applicable building code
  standards, as set forth in the plan of operation.
         (b)  Except as provided by Subsection (c), the [The]
  association may not insure a structure described by Subsection (a)
  until:
               (1)  the structure has been inspected for compliance
  with the plan of operation in accordance with Section 2210.251(a);
  and
               (2)  a certificate of compliance has been issued for
  the structure in accordance with Section 2210.251(g).
         (c)  The association may insure a residential structure
  constructed, altered, remodeled, enlarged, repaired, or added to on
  or after June 19, 2009, that is not in compliance with the
  applicable building code standards, as set forth in the plan of
  operation, provided that the structure had been insured on or after
  that date by an insurer in the private market who canceled or
  nonrenewed the insurance coverage of the structure before September
  1, 2013, and no construction, alteration, remodeling, enlargement,
  or repair of or addition to the structure occurs after cancellation
  or nonrenewal of the coverage and before submission of an
  application for coverage through the association.
         SECTION 3.  Subsection (a), Section 2210.259, Insurance
  Code, is amended to read as follows:
         (a)  A new or renewal insurance policy insuring a 
  noncompliant residential structure under Section 2210.251(f)
  [insured by the association as of September 1, 2009, under Section
  2210.251(f) that had been approved for insurability under the
  approval process regulations in effect on September 1, 2009,] is
  subject to an annual premium surcharge in an amount equal to 15
  percent of the premium for insurance coverage obtained through the
  association.  The surcharge under this subsection applies to each
  policy issued or renewed by the association on or after the
  effective date of Sections 5 through 49, H.B. No. 4409, Acts of the
  81st Legislature, Regular Session, 2009, and is due on the issuance
  or renewal of the policy.
         SECTION 4.  Section 2210.260, Insurance Code, is repealed.
         SECTION 5.  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, 2013.