Bill Text: TX HB4354 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to a mitigation and preparedness program and a fortified homes program administered by the Texas Windstorm Insurance Association.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2023-05-10 - Referred to Business & Commerce [HB4354 Detail]

Download: Texas-2023-HB4354-Engrossed.html

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By: Lozano H.B. No. 4354

A BILL TO BE ENTITLED
AN ACT
relating to a mitigation and preparedness program and a fortified
homes program administered by the Texas Windstorm Insurance
Association.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2210.454, Insurance Code, is amended to
read as follows:
Sec. 2210.454. MITIGATION AND PREPAREDNESS PROGRAM
[PLAN]. (a) Subject to a plan approved by the [The] commissioner,
the association may administer [shall annually develop and
implement] a mitigation and preparedness program [plan].
(b) Each [state fiscal] year, the association [department]
may fund the mitigation and preparedness program [plan] using money
from the catastrophe reserve trust fund not to exceed $500,000
annually [available funds].
(c) The association must design the mitigation and
preparedness program [plan must provide for actions to be taken in
the seacoast territory by the commissioner, or by a local
government, state agency, educational institution, or nonprofit
organization designated by the commissioner in the plan, to
implement programs] to:
(1) improve preparedness for windstorm and hail
catastrophes; and
(2) reduce potential losses in the event of such a
catastrophe[; and
[(3) provide research into the means to:
[(A) reduce those losses;
[(B) educate or inform the public in determining
the appropriateness of particular upgrades to structures; or
[(C) protect infrastructure from potential
damage from those catastrophes].
(d) Money [in excess of $1 million] may not be used under
this section if the commissioner determines that an expenditure [of
investment income] from the trust fund would jeopardize the
actuarial soundness of the association [fund] or materially impair
the ability of the association [fund] to serve the state purposes
for which the association [fund] was established.
SECTION 2. Subchapter J, Chapter 2210, Insurance Code, is
amended by adding Section 2210.456 to read as follows:
Sec. 2210.456. FORTIFIED HOMES PROGRAM. (a) Subject to a
plan approved by the commissioner, the association may administer a
fortified homes program.
(b) Each year, the association may fund the fortified homes
program using money from the catastrophe reserve trust fund not to
exceed $500,000 annually.
(c) The fortified homes program must be designed to:
(1) improve preparedness for windstorm and hail
catastrophes; and
(2) reduce potential losses in the event of such a
catastrophe.
(d) Money may not be used under this section if the
commissioner determines that an expenditure from the trust fund
would:
(1) jeopardize the actuarial soundness of the
association; or
(2) materially impair the ability of the association
to serve the state purposes for which the association was
established.
SECTION 3. This Act takes effect September 1, 2023.