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A BILL TO BE ENTITLED
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AN ACT
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relating to the appeal of decisions by the Texas Department of |
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Insurance regarding issuance of certain certificates of compliance |
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under the Texas Windstorm Insurance Association Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2210.003, Insurance Code, is amended by |
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amending Subdivision (1) and adding Subdivision (1-a) to read as |
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follows: |
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(1) "Appeals panel" means the appeals panel |
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established under Section 2210.262. |
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(1-a) "Association" means the Texas Windstorm |
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Insurance Association. |
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SECTION 2. Section 2210.251(g), Insurance Code, is amended |
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to read as follows: |
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(g) The department shall issue a certificate of compliance |
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for each structure that qualifies for coverage. The certificate is |
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evidence of insurability of the structure by the association. |
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Except as provided by Section 2210.264, the [The] decision whether |
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to issue a certificate of compliance for a structure is wholly |
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within the discretion of the department and is not dependent on the |
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actions of the Texas Board of Professional Engineers or any other |
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regulatory agency. |
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SECTION 3. Subchapter F, Chapter 2210, Insurance Code, is |
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amended by adding Sections 2210.261 through 2210.268 to read as |
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follows: |
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Sec. 2210.261. REQUEST FOR APPEAL; RESPONSE. (a) A person |
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whose request for a certificate of compliance is rejected may |
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appeal the decision rejecting the request by filing a written |
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request for appeal with the appeals panel established under Section |
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2210.262, and contemporaneously providing a copy of the request for |
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appeal to the department. The request for appeal must be made not |
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later than the 90th day after the date the department issued a |
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decision rejecting the request for certification. |
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(b) The department shall file a written response with the |
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appeals panel not later than the 15th day after the date on which |
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the request for appeal is filed and shall on the same date serve a |
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copy of the response on the appellant. |
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Sec. 2210.262. APPEALS PANEL: COMPOSITION. (a) The |
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appeals panel is composed of seven members appointed by the |
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governor. |
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(b) Three members must: |
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(1) be engineers licensed by, and in good standing |
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with, the Texas Board of Professional Engineers; and |
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(2) have knowledge of and professional expertise in |
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wind-related design and construction practices in coastal areas |
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subject to high winds and hurricanes. |
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(c) Two members must be public members who, at the time of |
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each appointment, reside in different first tier coastal counties. |
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(d) One member must be a licensed general property and |
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casualty agent who is not a captive agent. |
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(e) One member must represent the construction industry and |
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have knowledge of and professional expertise in wind-related design |
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and construction practices in coastal areas subject to high winds |
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and hurricanes. |
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(f) All members of the appeals panel must reside or have |
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employment in a first tier coastal county. |
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(g) Each appointment to the appeals panel must be made |
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without regard to the race, color, disability, sex, religion, age, |
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or national origin of the appointee. |
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Sec. 2210.263. APPEALS PANEL: TERMS; VACANCY. (a) Members |
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of the appeals panel serve two-year staggered terms, with terms of |
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either three or four members expiring on January 1 of each year. |
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(b) The governor shall fill a vacancy on the appeals panel |
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in accordance with Section 2210.262. |
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Sec. 2210.264. APPEALS PANEL: POWERS AND DUTIES. (a) |
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Within a reasonable time after receipt of a request for appeal, the |
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appeals panel shall conduct a hearing on the request and determine |
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whether the requested certificate of compliance should be issued. |
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(b) In making its determination, the appeals panel shall |
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consider the written request for appeal and the department's |
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response. |
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(c) The appeals panel may require the head engineer of the |
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unit responsible for certification of windstorm inspections at the |
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department to advise the appeals panel on issues relating to the |
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inspection process. |
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Sec. 2210.265. APPEALS PANEL: CONFLICT OF INTEREST. The |
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appeals panel shall determine if a member of the appeals panel has a |
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conflict of interest regarding a request for appeal. The member |
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with the conflict of interest shall recuse himself or herself from |
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all proceedings relating to that request. |
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Sec. 2210.266. APPEALS PANEL: HEARING PROCEDURES. (a) |
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Each party to a hearing conducted by the appeals panel may be |
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represented by an attorney licensed to practice law in this state. |
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(b) The standard of review for an appeal filed under Section |
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2210.261 is de novo. |
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(c) All appeals panel proceedings shall be conducted in |
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Travis County. |
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Sec. 2210.267. APPEALS PANEL: DECISION. (a) Within a |
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reasonable time after the conclusion of the hearing, the appeals |
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panel shall issue a written decision reflecting the appeals panel's |
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determination under Section 2210.264. |
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(b) If the appeals panel is unable to reach a decision, the |
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appeals panel shall affirm the decision of the department. |
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(c) The appeals panel shall mail a copy of the appeals |
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panel's decision to each party not later than the seventh day after |
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the date the appeals panel renders its decision. |
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(d) Subject to Subsection (e), if the appeals panel |
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determines that a certificate of compliance should be issued, the |
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department shall promptly issue the certificate. |
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(e) A decision made by the appeals panel under this |
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subchapter is subject to judicial review under Chapter 2001, |
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Government Code. |
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Sec. 2210.268. APPEALS PANEL: ADMINISTRATION. The appeals |
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panel is administratively attached to the department. The |
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department shall provide the staff, services, and facilities |
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necessary for the appeals panel to operate, including: |
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(1) administrative assistance and services, including |
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budget planning and purchasing; |
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(2) personnel services; |
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(3) office space; and |
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(4) computer equipment and support. |
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SECTION 4. The changes in law made by this Act apply only to |
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a decision by the Texas Department of Insurance to reject a request |
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for a certificate of compliance issued on or after the effective |
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date of this Act. A decision issued before the effective date of |
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this Act is governed by the law as it existed immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 5. This Act takes effect September 1, 2015. |