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AN ACT
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relating to inspections and other activities conducted by engineers |
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in connection with the issuance of certain windstorm and hail |
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insurance; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 2210.251, Insurance Code, |
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is amended to read as follows: |
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Sec. 2210.251. PLAN OF OPERATION COMPLIANCE [INSPECTION] |
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REQUIREMENTS. |
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SECTION 2. Sections 2210.251(a), (f), and (g), Insurance |
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Code, are amended to read as follows: |
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(a) Except as provided by this section, to be considered |
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insurable property eligible for windstorm and hail insurance |
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coverage from the association, a structure that is constructed, |
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altered, remodeled, enlarged, or repaired or to which additions are |
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made on or after January 1, 1988, must comply [be inspected or
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approved by the department for compliance] with the plan of |
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operation. |
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(f) Notwithstanding any other provision of this subchapter |
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[section], insurance coverage for a residential structure may be |
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issued or renewed through the association subject to the inspection |
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requirements imposed under Section 2210.258, if applicable. This |
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subsection expires December 31, 2015. |
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(g) A [The department shall issue a] certificate of |
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compliance issued by the department or association under Section |
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2210.2515 demonstrates compliance with the applicable building |
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code under the plan of operation [for each structure that qualifies
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for coverage]. The certificate is evidence of insurability of the |
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structure by the association. [The decision whether to issue a
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certificate of compliance for a structure is wholly within the
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discretion of the department and is not dependent on the actions of
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the Texas Board of Professional Engineers or any other regulatory
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agency.] |
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SECTION 3. Subchapter F, Chapter 2210, Insurance Code, is |
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amended by adding Section 2210.2515 to read as follows: |
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Sec. 2210.2515. ISSUANCE OF CERTIFICATES OF COMPLIANCE. |
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(a) In this section: |
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(1) "Completed improvement" means: |
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(A) an improvement in which the original transfer |
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of title from the builder to the initial owner of the improvement |
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has occurred; or |
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(B) if a transfer under Paragraph (A) is not |
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contemplated, an improvement that is substantially completed. |
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(2) "Improvement" means the construction of or repair, |
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alteration, remodeling, or enlargement of a structure to which the |
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plan of operation applies. |
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(3) "Ongoing improvement" means: |
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(A) an improvement in which the original transfer |
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of title from the builder to the initial owner of the improvement |
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has not occurred; or |
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(B) if a transfer under Paragraph (A) is not |
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contemplated, an improvement that is not substantially completed. |
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(b) A person shall provide written notice on a form |
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prescribed by and submitted to the department of the person's |
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intent to construct, repair, alter, remodel, or enlarge a structure |
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for which the person is seeking coverage under this chapter before |
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the person begins to construct, repair, alter, remodel, or enlarge |
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the structure. |
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(c) A person may apply to the association on a form |
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prescribed by the department for a certificate of compliance for a |
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completed improvement. The association shall issue a certificate |
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of compliance for a completed improvement if a professional |
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engineer licensed by the Texas Board of Professional Engineers: |
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(1) has designed the improvement, has affixed the |
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engineer's seal on the design, and submits to the association on a |
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form prescribed by the department an affirmation of compliance with |
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the applicable building code under the plan of operation; or |
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(2) completes a sealed post-construction evaluation |
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report that confirms compliance with the applicable building code |
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under the plan of operation. |
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(d) A person may apply to the department on a form |
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prescribed by the department for a certificate of compliance for an |
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ongoing improvement. Except as provided by Subsection (e), the |
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department shall issue a certificate of compliance for an ongoing |
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improvement if a qualified inspector under Section 2210.254 |
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inspects the ongoing improvement in accordance with commissioner |
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rule and affirms that the improvement: |
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(1) conforms to a design of the improvement that has a |
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seal affixed by a professional engineer licensed by the Texas Board |
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of Professional Engineers and complies with the applicable building |
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code under the plan of operation; or |
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(2) complies with the applicable building code under |
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the plan of operation. |
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(e) Except as otherwise provided by this subchapter, the |
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department may not issue a certificate of compliance under |
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Subsection (d) if within six months after the date of the final |
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inspection of the structure that is the subject of the application, |
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the department has not received: |
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(1) fully completed forms prescribed by the department |
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demonstrating that the improvement satisfies the requirements |
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under Subsection (d)(1) or (2); and |
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(2) payment in full of all inspection fees, including |
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fees for prior department inspections, owed to the department. |
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(f) If the department determines not to issue a certificate |
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of compliance under Subsection (e), a person may apply for a |
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certificate of compliance under Subsection (c). |
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(g) The department may enter into contracts as necessary to |
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implement this section. |
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(h) The department may charge a reasonable fee to cover the |
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cost of making building requirements and inspection standards |
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available to the public. The department shall charge a reasonable |
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fee for each inspection of each structure under this section in an |
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amount set by the commissioner. |
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SECTION 4. Section 2210.254(a), Insurance Code, is amended |
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to read as follows: |
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(a) For purposes of this chapter, a "qualified inspector" |
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includes: |
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(1) a person determined by the department to be |
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qualified because of training or experience to perform building |
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inspections; |
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(2) a licensed professional engineer [who is on the
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roster described by Section 1001.652, Occupations Code, and meets
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the requirements specified by commissioner rule for appointment to
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conduct windstorm inspections]; and |
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(3) an inspector who: |
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(A) is certified by the International Code |
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Council, the Building Officials and Code Administrators |
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International, Inc., the International Conference of Building |
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Officials, or the Southern Building Code Congress International, |
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Inc.; |
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(B) has certifications as a buildings inspector |
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and coastal construction inspector; and |
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(C) complies with other requirements specified |
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by commissioner rule. |
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SECTION 5. Section 2210.2551, Insurance Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (f) to read |
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as follows: |
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(a) The department has exclusive authority over all matters |
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relating to the appointment and oversight of qualified inspectors |
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for purposes of this chapter and to the physical inspection of |
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structures for the purposes of determining whether to issue a |
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certificate of compliance under Section 2210.2515(d) [this
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chapter], including the submission of documents to the department |
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or association regarding the physical inspection of structures. |
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(b) The commissioner by rule shall establish criteria to |
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ensure that a person seeking appointment as a qualified inspector |
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under this subchapter[, including an engineer seeking appointment
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under Section 2210.255,] possesses the knowledge, understanding, |
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and professional competence to perform windstorm inspections for |
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the issuance of a certificate of compliance under Section |
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2210.2515(d) [under this chapter] and to comply with other |
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requirements of this chapter. |
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(f) The commissioner may not adopt or enforce a rule that |
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requires an engineer to affix the engineer's seal to an inspection |
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form submitted under this subchapter. |
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SECTION 6. Section 2210.256(a-1), Insurance Code, is |
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amended to read as follows: |
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(a-1) In addition to any other action authorized under this |
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section, the commissioner ex parte may enter an emergency cease and |
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desist order under Chapter 83 against a qualified inspector, or a |
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person acting as a qualified inspector, if: |
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(1) the commissioner believes that: |
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(A) the qualified inspector has: |
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(i) through submitting or failing to submit |
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to the department [sealed plans, designs, calculations, or other] |
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substantiating information, failed to demonstrate that a structure |
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or a portion of a structure subject to inspection is built to a |
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design that conforms to the requirements described by Section |
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2210.2515(d) [meets the requirements of this chapter and department
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rules]; or |
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(ii) refused to comply with requirements |
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imposed under this chapter or department rules; or |
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(B) the person acting as a qualified inspector is |
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acting without appointment as a qualified inspector under Section |
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2210.254 [or 2210.255]; and |
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(2) the commissioner determines that the conduct |
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described by Subdivision (1) is fraudulent or hazardous or creates |
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an immediate danger to the public. |
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SECTION 7. Section 2210.258(b), Insurance Code, is amended |
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to read as follows: |
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(b) Except as provided by Subsection (c), the association |
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may not insure a structure described by Subsection (a) until[:
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[(1)
the structure has been inspected for compliance
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with the plan of operation in accordance with Section 2210.251(a);
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and
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[(2)] a certificate of compliance has been issued for |
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the structure in accordance with Section 2210.2515 [2210.251(g)]. |
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SECTION 8. Section 83.002(c), Insurance Code, is amended to |
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read as follows: |
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(c) This chapter also applies to: |
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(1) a person appointed as a qualified inspector under |
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Section 2210.254 [or 2210.255]; and |
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(2) a person acting as a qualified inspector under |
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Section 2210.254 [or 2210.255] without being appointed as a |
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qualified inspector under either of those sections. |
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SECTION 9. The following laws are repealed: |
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(1) Sections 2210.251(c), (h), (i), (j), (k), (l), and |
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(m), Insurance Code; |
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(2) Section 2210.255, Insurance Code; |
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(3) Sections 2210.2551(d) and (e), Insurance Code; |
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(4) Section 2210.256(f), Insurance Code; and |
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(5) Subchapter N, Chapter 1001, Occupations Code. |
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SECTION 10. The commissioner of insurance shall adopt rules |
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to implement this Act not later than December 31, 2016. |
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SECTION 11. The changes in law made by this Act apply only |
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to a Texas Windstorm Insurance Association policy delivered, issued |
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for delivery, or renewed on or after January 1, 2017. An association |
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policy delivered, issued for delivery, or renewed before January 1, |
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2017, is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 12. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2439 was passed by the House on April |
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16, 2015, by the following vote: Yeas 146, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 2439 on May 28, 2015, by the following vote: Yeas 146, Nays 1, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2439 was passed by the Senate, with |
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amendments, on May 26, 2015, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |