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A JOINT RESOLUTION
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proposing a constitutional amendment relating to the use of the |
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assets of certain associations established by the legislature of |
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this state for the purpose of providing certain insurance coverage. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article XVI, Texas Constitution, is amended by |
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adding Section 75 to read as follows: |
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Sec. 75. (a) In this section, "association" means an |
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association established by the legislature of this state for the |
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purpose of providing adequate windstorm, hail, and fire insurance |
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in designated portions of this state. The term includes the Texas |
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Windstorm Insurance Association established under Chapter 2210, |
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Insurance Code, or any successor association to that association. |
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(b) Except as provided by this section, the legislature may |
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not enact a law appropriating or diverting any part of the assets of |
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an association to any purpose other than to: |
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(1) satisfy, wholly or partly, the liability of the |
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association on claims made on policies written by the association; |
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(2) make investments authorized under applicable law; |
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(3) pay reasonable and necessary administrative |
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expenses incurred in connection with the operation of the |
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association and the processing of claims against the association; |
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or |
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(4) make remittance under the laws of this state to be |
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used by this state to: |
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(A) pay claims made on policies written by the |
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association; |
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(B) purchase reinsurance covering losses under |
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those policies; or |
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(C) prepare for or mitigate the effects of |
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catastrophic natural events. |
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(c) On dissolution of an association, all assets of the |
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association revert to this state. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 8, 2011. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment relating to the use of |
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the assets of certain associations established by the legislature |
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of this state for the purpose of providing certain insurance |
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coverage." |