TO: | Honorable John Carona, Chair, Senate Committee on Business & Commerce |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | SB19 by Carona (Relating to certain residential and other structures and mitigation of loss to those structures resulting from natural catastrophes; providing a criminal penalty.), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | ($500,000) |
2015 | ($500,000) |
2016 | ($500,000) |
2017 | ($500,000) |
2018 | ($500,000) |
Fiscal Year | Probable Savings/(Cost) from General Revenue Fund 1 |
---|---|
2014 | ($500,000) |
2015 | ($500,000) |
2016 | ($500,000) |
2017 | ($500,000) |
2018 | ($500,000) |
The bill would amend the Insurance Code relating to certain residential and other structures and mitigation of loss to those structures resulting from natural catastrophes. The bill would require the Texas Department of Insurance (TDI) and the Office of Public Insurance Counsel (OPIC) to establish a statewide loss mitigation grant program. The bill would also authorize TDI and OPIC to collect information related to premium credits, surcharges, and credits, and require the agencies to establish a public education effort for the program.
The bill would require counties to verify compliance with building standards as a precondition to obtaining utility services and would authorize counties to charge a fee not to exceed $25 to issue a certificate of compliance; however, the bill would prohibit fees collected from exceeding the cost to issue the certificates.
The bill would take effect September 1, 2013.
The bill would require counties to verify compliance with building standards as a precondition to obtaining utility services. This may increase workload for some counties but it is assumed that these duties could be absorbed within existing resources.
The bill would create a Class C Misdemeanor. A Class C misdemeanor is punishable by a fine of not more than $500. Costs associated with enforcement and prosecution could likely be absorbed within existing resources. Increased revenue from new fines imposed and collected is not anticipated to have a significant fiscal impact.
Source Agencies: | 304 Comptroller of Public Accounts, 359 Office of Public Insurance Counsel, 405 Department of Public Safety, 452 Department of Licensing and Regulation, 454 Department of Insurance
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LBB Staff: | UP, KKR, RB, MW, ER, LXH
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