HBA-ATS H.B. 3264 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3264
By: Uher
Insurance
3/25/1999
Introduced



BACKGROUND AND PURPOSE 

Under current law, all structures that are constructed or repaired or to
which additions are made on or after January 1, 1988, must be inspected or
approved by the State Board of Insurance (board) (succeeded by the
commissioner of insurance) to determine whether these structures comply
with the building specifications in the plan for providing windstorm and
hail insurance in a catastrophe area, and fire and explosion insurance in
an inadequate fire insurance area.  Without inspection or approval, these
structures are not considered insurable property for windstorm and hail
insurance from the Texas Windstorm Insurance Association.  The inspection
of these buildings is carried out by a qualified inspector, who must be
approved and appointed or employed by the board. 

H.B. 3264 deletes the requirement that qualified building inspectors must
be appointed or employed by the board to perform building inspections.  As
amended, the law provides only for the approval of a qualified inspector.
In addition, this bill requires the board to approve qualified inspectors
employed by municipalities that use the Texas Department of Insurance's
standard windload threshold, as adopted by the Association of Civil Service
Engineers' rule 7-93, to determine eligibility for the Texas Windstorm
Insurance Association's windpool.  These inspectors employed by
municipalities are required to meet all inspection and certification
requirements used by the Texas Department of Insurance, as defined by the
Southern Building Code Congress International coastal construction
certification, before approval is granted by the board. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subsection (d), Section 6A, Article 21.49, Insurance
Code, to add a provision requiring the State Board of Insurance (board)
(succeeded by the commissioner of insurance) to approve qualified
inspectors employed by municipalities that use the Texas Department of
Insurance's standard windload threshold, as adopted by the Association of
Civil Service Engineers' rule 7-93, to determine eligibility for the Texas
Windstorm Insurance Association's windpool. Requires qualified inspectors
employed by municipalities to meet all inspection and certification
requirements used by the Texas Department of Insurance, as defined by the
Southern Building Code Congress International coastal construction
certification, before approval is granted by the board. Deletes the
requirement that qualified building inspectors must be appointed or
employed by the board to perform building inspections.  Makes a conforming
change. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.