87R4486 SMT-D
 
  By: Lucio III H.B. No. 1864
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the Texas Department of Insurance and
  the Texas Windstorm Insurance Association to issue certificates of
  compliance for association coverage.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2210.251(g), Insurance Code, is amended
  to read as follows:
         (g)  A certificate of compliance issued by the department or
  association under Section 2210.2515 demonstrates compliance with
  the applicable building code under the plan of operation.  The
  certificate is evidence of insurability of the structure by the
  association.
         SECTION 2.  Section 2210.2515, Insurance Code, is amended by
  amending Subsections (c), (c-1), (i), and (k) and adding Subsection
  (f) to read as follows:
         (c)  A person may apply to the association [department] on a
  form prescribed by the department for a certificate of compliance
  for a completed improvement.  The association [department] shall
  issue a certificate of compliance for a completed improvement if a
  professional engineer licensed by the Texas Board of Professional
  Engineers and Land Surveyors:
               (1)  has designed the improvement, has affixed the
  engineer's seal on the design, and submits to the association
  [department] on a form prescribed by the department an affirmation
  that the design complies with the applicable building code under
  the plan of operation and that the improvement was constructed in
  accordance with the design; or
               (2)  completes and submits to the association
  [department] a sealed post-construction evaluation report that:
                     (A)  confirms the improvement's compliance with
  the applicable building code under the plan of operation; and
                     (B)  includes documentation supporting the
  engineer's post-construction evaluation report on a form
  prescribed by the department on which the engineer has affixed the
  engineer's seal.
         (c-1)  The association [department] may deny an application
  for a certificate of compliance under Subsection (c) if the
  evaluation report or the form prescribed by the department under
  Subsection (c)(1) is not fully documented as required under
  Subsection (c).
         (f)  If the department determines not to issue a certificate
  of compliance under Subsection (e), a person may apply for a
  certificate of compliance under Subsection (c).
         (i)  The association [department] is authorized to submit a
  formal complaint under Chapter 1001, Occupations Code, to the Texas
  Board of Professional Engineers and Land Surveyors related to the
  engineering work of a professional engineer as reflected in the
  sealed post-construction evaluation report or other materials
  submitted by an engineer under Subsection (c).
         (k)  The department or association may rescind a certificate
  of compliance issued under this section if the department finds
  that the improvement does not comply with the applicable building
  code under the plan of operation.  The commissioner may adopt rules
  as necessary to implement this subsection.
         SECTION 3.  The commissioner of insurance shall adopt rules
  to implement this Act not later than December 31, 2021.
         SECTION 4.  Section 2210.2515, Insurance Code, as amended by
  this Act, applies only to an application for a certificate of
  compliance made on or after January 1, 2022.  An application for a
  certificate of compliance made before January 1, 2022, is governed
  by the law as it existed immediately before the effective date of
  this Act, and that law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2021.