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89(R) HB 1576 - Engrossed version - Bill Text
By: Oliverson, et al.
H.B. No. 1576
A BILL TO BE ENTITLED
AN ACT
relating to a grant program for hurricane and windstorm loss
mitigation for single-family residential property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 10, Insurance Code, is amended
by adding Chapter 1813 to read as follows:
CHAPTER 1813.
GRANT PROGRAM FOR HURRICANE AND WINDSTORM LOSS
MITIGATION FOR SINGLE-FAMILY RESIDENTIAL PROPERTY
Sec.
1813.001.
DEFINITION. In this chapter, "program"
means the hurricane and windstorm loss prevention grant program
established under this chapter.
Sec.
1813.002.
CONSTRUCTION OF CHAPTER. This chapter does
not create an entitlement for property owners or obligate the state
to fund the inspection or retrofitting of residential property in
this state.
Sec.
1813.003.
RULEMAKING. The commissioner may adopt
rules necessary to implement this chapter.
Sec.
1813.004.
ESTABLISHMENT OF PROGRAM. The commissioner
shall establish the hurricane and windstorm loss prevention grant
program to provide grants to retrofit eligible residential property
to resist hurricane and windstorm losses.
Sec.
1813.005.
ELIGIBILITY. An owner of residential
property may apply for a grant under the program if:
(1) the property to be retrofitted is:
(A)
a single-family home or HUD-code
manufactured home, as defined by Section 1201.003, Occupations
Code; and
(B)
the owner's residence homestead, as defined
by Section 11.13, Tax Code; and
(2)
the owner and the property meet other eligibility
requirements for the program prescribed by commissioner rule.
Sec.
1813.006.
AWARD OF GRANTS. The commissioner may award
grants under the program to eligible applicants to ensure the state
purpose of protecting public safety during a hurricane or windstorm
is achieved.
The commissioner may only award a grant under a
contract between the department and a grant recipient that includes
provisions under which the department is given sufficient control
to ensure the state purpose is accomplished and the state receives
the return benefit.
Sec.
1813.007.
USE OF GRANT. (a) A grant under the program
must be used to retrofit the property that is the subject of the
grant to one of the following:
(1)
the fortified home hurricane standard or fortified
home high wind and hail standard adopted by the Institute for
Business and Home Safety; or
(2)
another mitigation program, construction
technique, or standardized code that is:
(A)
submitted by an insurer or other entity and
approved by the commissioner; or
(B)
adopted by the commissioner on the
commissioner's own initiative.
(b)
A property that is a HUD-code manufactured home, as
defined by Section 1201.003, Occupations Code, in wind zone II as
designated by the United States Department of Housing and Urban
Development must be retrofitted to the fortified home hurricane
manufactured/modular home guidelines adopted by the Institute for
Business and Home Safety.
Sec.
1813.008.
PERMITTING AND INSPECTIONS. (a)
The
recipient of a grant under this chapter shall secure all required
local permits and inspections for a retrofitting project to be
performed using the grant and ensure that the project is performed
in accordance with local building codes.
(b)
The department or a political subdivision in which
property for which a grant is awarded is located may inspect the
property at any time during the progress of or following completion
of the retrofitting project for compliance with laws applicable to
the project.
Sec.
1813.009.
HURRICANE AND WINDSTORM MITIGATION ACCOUNT.
(a)
The hurricane and windstorm mitigation account is a dedicated
account in the general revenue fund.
Money in the account may be
appropriated only to the department and only for the purpose of
implementing the program.
(b) The account is composed of:
(1)
gifts, grants, donations, and legislative
appropriations; and
(2)
interest earned on the investment of money in the
account.
(c)
Section 403.0956, Government Code, does not apply to the
account.
(d)
The department administers the account. The department
may solicit and receive gifts, grants, and donations from any
source for the benefit of the account.
Sec.
1813.010.
NONPROFIT ADMINISTRATION. (a)
The
commissioner may make grants or funding available through the
program to a nonprofit organization for use by the organization to
retrofit eligible property in the manner required by this chapter.
(b)
A nonprofit organization that received a grant or
funding under this section must administer the grant or funding in
the same manner as the program is required to administer grants or
funding.
The organization shall provide any documentation
requested by the department in a timely manner.
Sec.
1813.011.
MANDATORY DISCOUNT OR RATE REDUCTION. (a)
This section applies to each insurer authorized to engage in the
business of residential property insurance or residential fire and
allied lines insurance in this state, including a capital stock
insurance company, mutual insurance company, county mutual
insurance company, Lloyd's plan, and reciprocal or interinsurance
exchange.
(b) This section does not apply to:
(1) the Texas Windstorm Insurance Association; or
(2) a commercial insurance policy.
(c)
An insurer offering a policy of insurance described by
Subsection (a) shall provide an actuarially justified premium
discount or rate reduction for property that has been certified as
complying with the eligibility standards for the grant program
established under Section 1813.004 and any related inspection or
certification requirements. An insurer may require reasonable
evidence of eligibility, inspection, and certification.
(d)
The commissioner may adopt rules necessary to implement
this section. A standard discount amount, target, or benchmark
established under such rules shall be optional and primarily for
the benefit of insurers that are unable to obtain actuarially valid
data to provide a premium discount or rate reduction under
Subsection (c) due to inadequate resources or experience.
SECTION 2. (a) The Texas Department of Insurance shall
implement Chapter 1813, Insurance Code, as added by this Act, and an
insurer is required to comply with Section 1813.011, Insurance
Code, as added by this Act, only if the legislature appropriates
money specifically for issuing grants under that chapter.
(b) Section 1813.011, Insurance Code, as added by this Act,
applies only to an insurance policy delivered, issued for delivery,
or renewed on or after September 1, 2026.
(c) An insurer that, immediately before September 1, 2026,
offers an actuarially justified premium discount or rate reduction
as described by Section 1813.011(c), Insurance Code, as added by
this Act, and continues to offer the discount or rate reduction on
and after September 1, 2026, is not required to offer an additional
discount under Section 1813.011, Insurance Code, as added by this
Act.
SECTION 3. This Act takes effect September 1, 2025.