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SENATE CONCURRENT RESOLUTION
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WHEREAS, Aransas County alleges that: |
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(1) Regional Pool Alliance is a distinct governmental |
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unit organized under the Interlocal Cooperation Act (Chapter 791, |
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Government Code), is engaged in the business of insurance by |
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providing risk pool insurance coverage to governmental entities, |
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and offered that coverage to Aransas County; |
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(2) Regional Pool Alliance promised its members |
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complete disaster recovery services, which included: |
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(A) filing insurance claims on behalf of its |
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members after a disaster; |
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(B) pursuing full payment of those claims; |
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(C) contracting directly with construction |
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contractors for the remediation, repair, and, if necessary, |
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reconstruction of damaged facilities; and |
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(D) ensuring satisfactory completion of |
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construction projects; |
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(3) Aransas County paid annual premiums, assessments, |
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fees, and surcharges to Regional Pool Alliance from 2012 through |
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2022 in exchange for comprehensive insurance coverage for its |
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property and, through Regional Pool Alliance, was named as an |
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insured in various contracts with insurers or insurance carriers |
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for property and casualty insurance to cover losses, including |
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losses due to storm damage caused by natural disasters, such as |
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hurricanes; |
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(4) after Regional Pool Alliance collected premiums |
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from Aransas County, it issued an insurance contract that contained |
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coverages, property values, and terms of insurance; |
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(5) in 2017, Aransas County owned property consisting |
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of approximately 43 buildings, mobile equipment, and other personal |
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property located in Aransas County, Texas; |
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(6) the insured actual value of Aransas County's |
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buildings and contents was $37,742,009.00 in the policy that |
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covered losses beyond actual value to the cost of replacement; |
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(7) at 10:00 p.m. on August 25, 2017, Hurricane Harvey |
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made landfall as a Category 4 hurricane about five miles east of the |
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city of Rockport in Aransas County with wind gusts measured at 152 |
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miles per hour and made a second landfall in Aransas County three |
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hours later near the Copano Bay community of Holiday Beach; |
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(8) Aransas County experienced the highest storm surge |
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from Hurricane Harvey at 12.5 feet, and more than 15 inches of rain |
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fell in Aransas County in a single day; |
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(9) Hurricane Harvey is estimated to have caused $125 |
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billion in damage to the Texas coast as one of the costliest |
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tropical cyclones in United States history with extreme wind damage |
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in Aransas County, Nueces County, Refugio County, and the eastern |
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part of San Patricio County, as it destroyed approximately 15,000 |
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homes and damaged another 25,000 homes, with the most severe damage |
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in Aransas County; |
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(10) properties owned by Aransas County experienced |
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significant damage including: |
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(A) the complete destruction of the Aransas |
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County Courthouse and Aransas County Aquarium; |
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(B) devastating damage to Aransas County's |
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airport, which suffered the loss of almost all of its hangars; and |
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(C) severe damage to many other county buildings |
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and facilities; |
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(11) after Hurricane Harvey, Aransas County promptly |
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submitted its claim for damaged property to the insurers through |
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Regional Pool Alliance, which also submitted claims on behalf of |
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other entities that suffered damage and losses due to Hurricane |
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Harvey; |
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(12) Aransas County officials received information |
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from Regional Pool Alliance periodically, which led the officials |
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to believe Regional Pool Alliance was receiving the county's |
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proceeds from the insurance carriers and using the proceeds to |
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contract with construction contractors to rebuild Aransas County's |
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facilities damaged by Hurricane Harvey; |
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(13) in late 2021, contractors began complaining to |
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Aransas County that Regional Pool Alliance was not responsive and |
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was not paying bills for work performed on Aransas County's |
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property; |
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(14) Aransas County immediately reached out to |
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Regional Pool Alliance regarding these complaints, but Aransas |
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County's questions, including questions concerning when repairs |
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would be completed, how repairs would be paid for, and what |
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arrangements were being made with contractors, were not answered; |
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(15) by October 2022, a claims adjuster informed |
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Aransas County that Regional Pool Alliance had instructed the |
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claims adjuster not to provide any information or otherwise |
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communicate with Aransas County; |
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(16) in January 2023, in response to a direct question |
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from the county attorney's office of Aransas County, Regional Pool |
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Alliance informed Aransas County that there was no more money to |
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fund the repairs to Aransas County's facilities; |
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(17) Aransas County later learned that Regional Pool |
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Alliance submitted claims on all of the properties owned by various |
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governmental entities and damaged by Hurricane Harvey together and |
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received payments from the insurance carriers in large lump sums; |
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(18) Regional Pool Alliance made no effort to |
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segregate the funds received by project or even by governmental |
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entity, and funds paid by the insurance carriers for damages to the |
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Aransas County facilities were commingled with funds paid to |
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Regional Pool Alliance for damages to other governmental entities' |
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facilities along the Texas coast; |
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(19) now Regional Pool Alliance has run out of money to |
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reconstruct Aransas County's facilities and refuses to pay the full |
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value of Aransas County's claims; |
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(20) critical facilities in Aransas County remain |
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unfinished, and Aransas County faces a significant fiscal challenge |
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due to nonpayment of millions of dollars of insurance proceeds as a |
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result of Regional Pool Alliance's failure to provide the claims |
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services and disaster-recovery services it promised; |
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(21) additional Aransas County facilities, including |
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the courthouse annex, the county tax assessor-collector's office, |
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and the transfer station, were damaged by Hurricane Harvey but have |
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not been fully repaired, remediated, or replaced; |
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(22) the lack of fully operational county facilities |
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has hindered Aransas County's ability to provide governmental |
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services and facilities to people living in and visiting the |
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county; |
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(23) Regional Pool Alliance has been named as a |
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defendant in at least two lawsuits related to Hurricane Harvey and |
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has asserted that it is immune from suit as a distinct governmental |
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unit; and |
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(24) Aransas County seeks to adjudicate its claims |
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against Regional Pool Alliance arising from Regional Pool |
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Alliance's failures to carry out the services it promised to |
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Aransas County and to obtain recovery from Regional Pool Alliance |
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on behalf of Aransas County and its residents; now, therefore, be it |
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RESOLVED by the Legislature of the State of Texas, That |
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Aransas County is granted permission to sue Regional Pool Alliance, |
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and Regional Pool Alliance's governmental immunity to suit and from |
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liability is waived, with respect to any cause of action arising |
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from Regional Pool Alliance's conduct in connection with Aransas |
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County's losses from Hurricane Harvey, including a claim for: |
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(1) recovery under Chapter 134, Civil Practice and |
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Remedies Code; |
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(2) a violation of Chapter 541, Insurance Code; |
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(3) a violation of Chapter 542, Insurance Code; |
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(4) negligent undertaking; |
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(5) negligent misrepresentation; |
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(6) fraud; |
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(7) quantum meruit; |
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(8) unjust enrichment; or |
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(9) money had and received; and, be it further |
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RESOLVED, That the suit authorized by this resolution shall |
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be brought in Aransas County; and, be it further |
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RESOLVED, That Kathleen Hicks, Director of Administration |
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for Regional Pool Alliance, be served process. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.C.R. No. 44 was adopted by the Senate |
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on April 27, 2023, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.C.R. No. 44 was adopted by the House |
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on May 6, 2023, by the following vote: Yeas 134, Nays 0, |
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one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |