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  S.B. No. 1448
 
 
 
 
AN ACT
  relating to the powers and duties of the Texas Windstorm Insurance
  Association and the windstorm insurance legislative oversight
  board and to certain studies by the board relating to the
  association and the Fair Access to Insurance Requirements Plan.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2210.351, Insurance Code, is amended by
  amending Subsection (d) and adding Subsection (f) to read as
  follows:
         (d)  The association may use a rate filed by the association
  without prior commissioner approval if:
               (1)  the filing is made not later than the 30th day
  before the date of any use or delivery for use of the rate;
               (2)  the filed rate does not exceed [105 percent of] the
  rate in effect on the date on which the filing is made; and
               (3)  [the filed rate does not reflect a rate change for
  an individual rating class that is 10 percent higher than the rate
  in effect for that rating class on the date on which the filing is
  made; and
               [(4)]  the commissioner has not disapproved the filing
  in writing, advising of the reasons for the disapproval and the
  criteria the association is required to meet to obtain approval.
         (f)  The association may not file a rate under this section
  that exceeds the rate in effect on the date on which the filing is
  made unless two-thirds of the board of directors votes to approve
  the rate.
         SECTION 2.  Section 2210.352, Insurance Code, is amended by
  amending Subsection (a-1) and adding Subsection (a-3) to read as
  follows:
         (a-1)  The association may use a rate filed by the
  association under this section without prior commissioner approval
  if:
               (1)  the filing is made not later than the 30th day
  before the date of any use or delivery for use of the rate; and
               (2)  the filed rate does not exceed [105 percent of] the
  rate used by the association in effect on the date on which the
  filing is made[; and
               [(3)  the filed rate does not reflect a rate change for
  an individual rating class that is 10 percent higher than the rate
  in effect for that rating class on the date on which the filing is
  made].
         (a-3)  The association may not file a rate under this section
  that exceeds the rate in effect on the date on which the filing is
  made unless two-thirds of the board of directors votes to approve
  the rate.
         SECTION 3.  Subchapter N, Chapter 2210, Insurance Code, is
  amended by adding Section 2210.655 to read as follows:
         Sec. 2210.655.  TEMPORARY POWERS AND DUTIES OF BOARD; STUDY
  OF FUNDING AND FUNDING STRUCTURE.  (a)  The board shall:
               (1)  gather information regarding:
                     (A)  how the association's current funding and
  funding structure operate;
                     (B)  how the catastrophic risk pools of other
  states operate; and
                     (C)  other information that the board considers
  necessary to prepare the information required by Subsection (c);
  and
               (2)  hold public meetings to hear testimony from
  experts, stakeholders, and other interested parties regarding
  recommendations and proposals for establishing and implementing
  sustainable funding and a sustainable funding structure for the
  association.
         (b)  The board may request reports and other information as
  necessary to implement this section from:
               (1)  the department;
               (2)  the association; and
               (3)  experts, stakeholders, and other interested
  parties described by Subsection (a)(2).
         (c)  The board shall include in the report described by
  Section 2210.654 the board's findings regarding the current funding
  and funding structure of the association, problems with the funding
  and funding structure, and recommendations for legislative action
  related to the funding, funding structure, and sustainability of
  the association. The report must include:
               (1)  an analysis of the current funding, funding
  structure, and sustainability of the association, including the
  association's reliance on debt and reinsurance; and
               (2)  recommendations for legislative action necessary
  to:
                     (A)  address problems with the current funding and
  funding structure of the association; and
                     (B)  foster the stability and sustainability of
  the association.
         (d)  This section expires September 1, 2023.
         SECTION 4.  Sections 14(c) and (d), Chapter 790 (H.B. 1900),
  Acts of the 86th Legislature, Regular Session, 2019, are amended to
  read as follows:
         (c)  Not later than January 1, 2023 [2021], the windstorm
  insurance legislative oversight board shall submit to the governor,
  the lieutenant governor, the speaker of the house of
  representatives, and the Texas Department of Insurance a written
  report of a [the] study conducted under this section. The report
  must include the findings and legislative recommendations of the
  board.
         (d)  This section expires January 1, 2024 [2022].
         SECTION 5.  Sections 2210.351 and 2210.352, Insurance Code,
  as amended by this Act, apply only to a rate filed by the Texas
  Windstorm Insurance Association with the Texas Department of
  Insurance on or after the effective date of this Act. A rate filed
  with the Texas Department of Insurance before the effective date of
  this Act is governed by the law as it existed immediately before
  that date, and that law is continued in effect for that purpose.
         SECTION 6.  This Act takes effect September 1, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1448 passed the Senate on
  April 14, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 13, 2021, by the
  following vote: Yeas 25, Nays 5.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1448 passed the House, with
  amendment, on April 30, 2021, by the following vote: Yeas 138,
  Nays 3, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor