The bill would require the Texas A&M Forest Service (TAMFS) to administer a certified and insured prescribed burn manager (CIPBM) self-insurance program that identifies and evaluates risks arising from prescribed burns, maintains a loss-prevention and loss-control program to reduce such risks, consolidates and administers prescribed burn risk management and self-insurance programs, and provides prescribed burn self-insurance coverage to
provide general liability coverage for prescribed burns conducted by a prescribed burn manager. The bill would set this program to expire September 1, 2040.
The bill would establish the Temporary CIPBM Self-Insurance Fund as an account in a depository selected by the board of regents of The Texas A&M University System. The fund would be composed of legislative appropriations not to exceed $25.0 million, fees collected by TAMFS from participating prescribed burn managers, and interest on money in the fund. The bill would authorize TAMFS to assess and collect a reasonable fee from participating prescribed burn managers to provide self-insurance coverage.
It is assumed that TAMFS would cover all annual operating costs with the premiums paid by the participating prescribed burn managers, however, TAMFS indicates that a minimum appropriation of $6.0 million would be needed as an initial reserve for claims to establish and operate the program. This amount is equivalent to three times the maximum loss amount defined in Natural Resources Code, Section 153.082.
No fiscal implication to units of local government is anticipated.